2004-05 Budget Paper 4: Portfolio Statements · Portfolio — Health ... host the 8th Asia Pacific...

PORTFOLIO STATEMENT

Presented by the Honourable Kevin Foley MPDeputy Premier and Treasurer of South Australia

on the Occasion of the Budget for 2009–10

2009 10

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Table of Contents

VOLUME ONE

Introduction

Portfolio — Premier and Cabinet ............................................................................................... 1

Portfolio — Trade and Economic Development ........................................................................ 2

Portfolio — Treasury and Finance .............................................................................................. 3

Portfolio — Planning and Local Government ............................................................................ 4

Portfolio — Primary Industries and Resources ......................................................................... 5

Portfolio — Transport, Energy and Infrastructure ................................................................... 6

Accounting Standards

VOLUME TWO

Introduction

Portfolio — Justice ........................................................................................................................ 7

Portfolio — Health ........................................................................................................................ 8

Portfolio — Education and Children’s Services......................................................................... 9


VOLUME THREE

Introduction

Portfolio — Tourism ..................................................................................................................... 10

Portfolio — Environment and Conservation and the River Murray ....................................... 11

Portfolio — Families and Communities ...................................................................................... 12

Portfolio — Further Education, Employment, Science and Technology ................................. 13

Auditor-General ............................................................................................................................ 14


INTRODUCTION

The Portfolio Statements outline financial and non-financial information about the services provided to, and on behalf of, the community by each portfolio. The following discussion outlines key aspects of the Statements.

Financial statements

The financial statements for each portfolio include an Income Statement, Balance Sheet and a Cash Flow Statement. The financial statements contained in the 2009-10 Portfolio Statements are special purpose financial reports.

Estimates in the financial statements have been prepared:

• on a basis that is consistent with Australian Accounting Standards. Australian Accounting Standards and/or interpretations that have been issued or amended but are not yet effective have not been early adopted;

• on an accrual basis except for the Cash Flow Statement which has been derived from the Income Statement and Balance Sheet to reflect cash payments and receipts; and

• using the historical cost convention, except for certain assets and liabilities that are valued in accordance with the valuation policy applicable.

In the process of reporting on portfolios, agencies or other entities as single economic entities, transactions and balances between units within the economic entity are eliminated. The commentary at the commencement of the financial statement for each portfolio identifies which entities have been included in the consolidated reports for that portfolio.

The financial statements for each portfolio include separate presentation or classification of controlled activities and (where applicable) administered activities.

Portfolio statements typically reflect a consolidation of controlled items within each portfolio. Where a portfolio contains a single agency, only the agency statements are provided.

Definitions

Portfolio

A portfolio is an entity that provides management coordination and administrative support for a defined group of agencies. A portfolio may comprise a single agency.

Agency

An agency is an administrative unit created under the Public Sector Management Act 1995 (PSM) or a statutory authority that is accountable for the delivery of programs on behalf of the Government.

Programs and sub-programs

A program is a grouping of related sub-programs or activities that contributes to the achievement of a particular agency’s and, in turn, the government’s objectives. A sub-program is a grouping of activities that contribute to a more specific objective.

Portfolio Statement overview

The Portfolio Statements outline details of projected portfolio activity and performance for 2009-10. Each Portfolio Statement conforms to the following standard presentation structure:

Portfolio Summary

• Ministerial Responsibilities

– details Minister, Agency, Program, Sub-Program and Administered items relationships and responsibilities

• Portfolio cost of service summary (where the portfolio comprises more than one agency)

– a summary of total agency cost of services

• Investing payments summary (where the portfolio comprises more than one agency)

– total agency investing payments

• Portfolio financial statements (where the portfolio comprises more than one agency)

– budgeted financial statements for controlled items

• Workforce summary

– total workforce details

• Ministerial Office(s) resources

– details of resources provided to Ministerial office(s)

Agency Summary

• Objective

– details of agency objectives

• Targets / Highlights

– targets for the budget year and highlights for the prior year

• Program cost of services summary

– summary of the net cost of agency programs

• Investing payments summary

– the investing payments for the agency

• Program information

– a description / objective and summary income statement

– commentary and performance measures for individual agency sub-programs

• Agency financial statements

– budgeted financial statements for controlled and administered items

• Agency financial commentary

– commentary on variances, trends, etc in the financial statements

Presentation of changes in program structures

Where an agency is transferred between portfolios, program information for previous years is reflected in the current program structure of the receiving portfolio. Similarly, where programs or sub-programs are transferred between agencies information is reflected in the receiving agency’s program structure.

In contrast, the agency financial statements line net cost of providing services (in the income statement) is based on the actual program structure for the agency as it operated or is expected to operate in each year. This distinction in treatment is drawn so that financial statements accurately reflect events while, at the same time, program information is comparable and not duplicated.

Reconciliation of the financial statements to the current program structure is contained in the program net cost of services summary located at the beginning of each relevant agency section.

Portfolio: Tourism

Minister for Tourism

TABLE OF CONTENTS

PORTFOLIO SUMMARY

Ministerial responsibilities ................................................................................................. 10.1

Workforce summary........................................................................................................... 10.2

Agency summaries

South Australian Tourism Commission ............................................................................. 10.4

PORTFOLIO: TOURISM

MINISTERIAL RESPONSIBILITIES

Minister Agency Programs Sub-Programs 1. Destination

Development 1.1 Policy and Planning 1.2 Research 1.3 Tourism Access and

Business Development 1.4 Tourism Infrastructure

Development

2. Tourism Events Nil

The Hon. Jane Lomax-Smith Minister for Tourism

South Australian Tourism Commission

3. Tourism Marketing 3.1 Domestic Marketing 3.2 International Marketing

Statutes

The Department of the Premier and Cabinet maintains a list of statutes applicable to Ministers.

10.1

WORKFORCE SUMMARY

Agency FTEs as at 30 June

2009-10

Budget(a) 2008-09

Estimated result(a) 2007-08

Actual(b)

South Australian Tourism Commission 177.2 185.2 175.3

Total 177.2 185.2 175.3

(a) The 2009-10 Budget and 2008-09 Estimated Result reflect the established FTE caps. (b) The 2007-08 Actual FTEs are based on preliminary data collected by the Office for Ethical Standards and Professional Integrity

(Department of the Premier and Cabinet).

10.2

TABLE OF CONTENTS

AGENCY: SOUTH AUSTRALIAN TOURISM COMMISSION

Objective ......................................................................................................................................... 10.5

2009-10 Targets / 2008-09 Highlights ............................................................................................ 10.6

Program net cost of services summary............................................................................................ 10.7

Investing payments summary.......................................................................................................... 10.7

Program information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Destination Development............................................................................................... 10.8

2. Tourism Events .............................................................................................................. 10.13

3. Tourism Marketing ........................................................................................................ 10.15


Income statement .................................................................................................................. 10.18

Balance sheet......................................................................................................................... 10.19

Cash flow statement .............................................................................................................. 10.20

Financial commentary ..................................................................................................................... 10.22

10.4

PORTFOLIO: TOURISM


Objective

The South Australian Tourism Commission’s (the Commission) objectives are to:

• increase visitor numbers to and within the state by creating awareness of South Australia and its tourism assets in key target markets;

• facilitate the development of a competitive, profitable and sustainable tourism industry;

• develop a competitive market position;

• develop special interest (niche) markets that focus on South Australia’s competitive strengths;

• build strong networks and partnerships with relevant stakeholders for mutual benefit;

• achieve sustainability of environmental and economic benefits; and

• bid for, and stage, major events.

10.5

2009-10 Targets / 2008-09 Highlights

Targets 2009-10 Highlights 2008-09

• Continue and expand the Isn’t It About Time marketing campaign promoting South Australia’s tourism experiences and product to the target tourism audience nationally, with a particular focus on Sydney and Melbourne

• Continue the successful South Australian Shorts campaign in the intrastate market, with a focus on increasing retail marketing to encourage South Australians to holiday in South Australia

• Continue cooperative consumer and trade marketing campaigns with Singapore Airlines and wholesale trade partners to increase demand for South Australia from key international tourism markets

• Host the 2010 Australian Tourism Exchange, the largest international tourism trade show in the Southern Hemisphere. The world’s travel trade will converge on Adelaide to meet with tourism suppliers from around Australia. This will provide a significant opportunity to showcase South Australia’s tourism experiences through an extensive familiarisation program

• Manage, support and attract major events to drive additional visitation to the state, including a focus on the development of new events in conjunction with state or national bodies or commercial partners

• Continue to improve access to and within South Australia, particularly aviation. In partnership with the Adelaide Airport and the Department of Trade and Economic Development, increase domestic and international air access capacity into Adelaide

• Attract new cruise lines to Adelaide with a focus on Southern Ocean Cruising

• Showcase South Australian tourism investment opportunities to potential investors and existing tourism operators to facilitate investment in tourism infrastructure projects

• Enhance visitor experiences through the improvement of tourism facilities and establishment of new tourism product for target markets via the Tourism Development Fund

• Work with industry partners to ensure effective implementation and monitoring of KPIs established under the South Australian Tourism Plan 2009-2014

• Developed the domestic marketing campaign Isn’t It About Time. The campaign incorporates brand and retail advertising and promotes the state’s tourism experiences that most appeal to the target tourism audience in Sydney, Melbourne and nationally. Campaign elements include television, magazine, press, online and direct mail

• In the intrastate market, a series of advocacy based television commercials are appearing on Channels 7 and 9, featuring local and national personalities endorsing South Australia regions and encouraging South Australians to explore their state. The commercials are being supported by a series of features, comprising editorial and retail advertising, in The Adelaide Magazine and the travel sections of The Advertiser and Sunday Mail. The South Australian Shorts campaign continued, with the release of the 2009-2010 book and the Shorts Winter Sale campaign

• Worked with a variety of tourism partners to undertake marketing activities in South Australia’s key international markets to attract more international visitors to the state. This included cooperative consumer and trade marketing campaigns with Singapore Airlines and wholesale trade partners to support the Airline’s daily flights into Adelaide. In New Zealand, the South Australian brand campaign recommenced, incorporating television, press and online marketing

• Developed and launched new international market specific websites under www.southaustralia.com for the Singapore, Chinese (in both traditional and simplified Chinese), New Zealand, North American, and Japanese market

• The 2009 Tour Down Under was the biggest event ever staged in South Australia. 36 200 people from interstate and overseas travelled to the state specifically to watch the event, injecting $39 million into the South Australian economy. Lance Armstrong’s decision to make his cycling comeback at the Tour Down Under was a huge boost for the event and provided the opportunity to showcase South Australia to a global audience

• The state won the right to host a number of major events, including the Australian Mountain and Biking Championships and the FINA Water Polo World League Leg

• Worked to improve access to and within South Australia. A major focus has been aviation, including a successful bid to host the 8th Asia Pacific Route Development Forum in Adelaide in 2010, and the decision by Tiger Airways to establish its second base in Adelaide and increase capacity to 44 flights a week. Also, welcomed and serviced the largest cruise ship arrival season to date and hosted South Australia’s first home-port cruise, the Athena, as part of the Southern Ocean Cruising strategy

• Successfully staged the inaugural 2008 National Conference on Green Travel, Climate Change and Ecotourism and co-funded and participated in a pilot program for the development of Ecotourism Australia’s new Climate Action Certification

• Invested in the development of well-designed and sustainable tourism infrastructure projects through the Tourism Development Fund

• Completed and launched the joint Industry and Government South Australian Tourism Plan 2009-2014. The Plan identifies the tourism industry’s key objectives for the next six years

• Facilitated the creation of the South Australian Tourism Industry Council to deliver important tourism industry programs

10.6

Program net cost of services summary

Program Net Cost of Services

2009-10Budget

2008-09Estimated result

2008-09 Budget

2007-08 Actual

$000 $000 $000 $000 1. Destination Development.......................... 8 995 5 407 6 632 6 293 2. Tourism Events......................................... 15 055 15 303 14 916 14 307 3. Tourism Marketing ................................... 35 127 30 483 30 351 29 815

Total 59 177 51 193 51 899 50 415

Investing payments summary

2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

New Works

Fit-out of New Office Accommodation...... — 2 506 2 506 —

Total New Works — 2 506 2 506 —

Annual Programs

Purchase of Information Technology equipment................................................... 127 123 123 573

Total Annual Programs 127 123 123 573

Total Investing Payments 127 2 629 2 629 573

10.7


Program information

Program 1: Destination Development

Description/Objective: To assist the tourism industry by providing statistical research advice and evaluation, and industry policy and planning services as well as facilitating and encouraging investment in tourism development and improving access to and within the state.

Summary income statement

Program 1: Destination Development 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 2 603 2 464 2 305 2 147 Supplies and services........................................ 1 994 1 625 1 550 1 490 Grants and subsidies ......................................... 4 343 3 111 2 763 2 675 Depreciation and amortisation .......................... 57 49 49 79 Other................................................................. 57 17 11 15

Total expenses 9 054 7 266 6 678 6 406

Income Sale of goods and services................................ 59 1 859 46 113

Total income 59 1 859 46 113

Net cost of providing services 8 995 5 407 6 632 6 293

10.8

Sub-program information

Sub-program: 1.1 Policy and Planning

Provides clear vision and direction for the tourism industry and encourages a ‘tourism friendly’ policy and regulatory environment.

2009-10 Budget

2008-09 Estimated result

2008-09 Budget

2007-08 Actual

Net cost of sub-program $1 416 000 $1 085 000 $1 007 000 $1 081 000

Performance Commentary In 2008-09, the Strategy and Policy Group continued to focus on integrating the tourism vision into the broader government policy framework and contributed to achieving South Australia’s Strategic Plan tourism target (T1.15), through the implementation of a range of programs.

The Group reports on the Key Performance Indicators (KPIs) for the South Australian Strategic Plan Tourism Implementation Plan, which seeks to identify strategies that will accelerate progress towards achieving the T1.15 tourism target.

The joint Industry and Government South Australian Tourism Plan 2009-2014 was completed and launched. The plan identifies the tourism industry’s key objectives for the next six years, which are to: communicate with impact; develop new signature experiences; improve distribution channels; improve air access; ensure a positive policy environment; and build industry capability. A number of KPIs for each goal will be monitored to assess progress.

The Commission facilitated the formation of the South Australian Tourism Industry Council (SATIC) — the new peak industry body for tourism in South Australia — formed by an amalgamation of the South Australian Tourism Accreditation Board and the South Australian Tourism Alliance. SATIC will reflect the views of the South Australian tourism industry, ensuring that its members have a strong, representative voice as well as deliver programs relating to professional industry standards, workforce planning, sustainability and several strategies in the South Australian Tourism Plan.

Three Minister’s Tourism Round Tables were held during the year. Topics discussed included: Creating a 2020 Vision for Tourism; Media and Tourism; World Food Exchange Feedback; SA Food & Wine Strategy — Working Group Recommendations; Climate Action Certification Program; Kangaroo Island TOMM; and South Australian Tourism Industry — Current Overview and Maximising Opportunities in the Global Economic Crisis.

Since 2003, the Commission has made available matching grants of up to $50 000 to help tourism regions prepare five year integrated strategic tourism plans. Strategic tourism plans set an agreed vision, target, and direction for future tourism investment and collaboration in the region. These strategic imperatives are captured through an integrated process of sound analysis in the areas of economics, tourism marketing and resources, social, planning, and environmental management. The Murraylands and Flinders Ranges/Outback Regional Strategic Tourism Plans were completed this year and have now moved into the implementation phase. Formulation of the Adelaide Hills Regional Strategic Tourism Plan has commenced and the City of Adelaide Tourism Plan will be completed this financial year.

The Commission made submissions to a wide range of government policy initiatives, including negotiating the tourism position and policy changes for Version 4 of the state government’s Better Development Plan (BDP) project; the River Murray Marina and Houseboat Strategy; Marine Parks boundaries; Development Plan Amendments (DPAs), eg Caravan Parks Ministerial DPA; Council Strategic Plans; and Section 30 Reviews.

The Group also provided input to the Department of Planning and Local Government’s Regional Land Use Frameworks and the Planning Strategy for Greater Adelaide, both of which will become part of the State’s Planning Strategy.

The South Australian Food and Wine Tourism Strategy 2009-2014 was completed. Key performance measures are to: increase South Australia’s association with distinctive dining and fresh regional produce; increase the state’s share of visitors to Australian wineries; and increase domestic visitor preference for the Barossa region.

The Group has provided input to the proposed Department for Environment and Heritage (DEH) Visitor Strategy — a significant opportunity for tourism to leverage greater potential for sensitively designed and sited tourism development within South Australia's national parks, reserves and trails. The Group also provides a Commission representative for the DEH Coast Protection Board.

Work has commenced on the Commission’s Indigenous Tourism Strategy (2009-12) and a draft is expected to be completed this financial year.

The Commission continues to be represented on the National Tourism and Climate Change Taskforce, established by the Tourism Ministers’ Council, and provided input into the National Tourism Action Plan on Climate Change, completed in July 2008. As well as regular monitoring of implementation, the Commission has supported the development of Ecotourism Australia’s Climate Action Certification — this program will allow the travelling public to identify South Australian operators who are committed to reducing their carbon emissions. The Commission is also participating in the Sustainable Tourism Cooperative Research Centre Climate Change Adaptation Project, being undertaken for five tourism regions throughout Australia, including the Barossa.

The Group is now playing a greater role in providing planning advice to assist specific tourism developments throughout the state.

In 2009-10, the Group will focus on supporting SATIC in its first year of operation, monitoring implementation of the South Australian Tourism Plan 2009-2014; commencement of Regional Strategic Tourism Plans for other tourism regions; case management of priority development projects identified by the Commission’s Destination Development Group; and negotiating with various government agencies to ensure a positive policy environment for sustainable tourism development exists in South Australia.

10.9

Sub-program: 1.2 Research

The Commission’s Research Unit collates and distributes statistical information about tourism and travel in South Australia and coordinates market research on behalf of the Commission.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program $1 147 000 $1 123 000 $1 144 000 $912 000

Performance Commentary The Commission’s Research Unit provides data to assist informed strategic decision making. It also provides regular updates on a range of issues, including tourism demand, visitor profiles, the economic value of tourism and the performance of the state’s tourism industry. Information is sourced from: the National Visitor Survey and International Visitor Survey conducted by Tourism Research Australia; the Survey of Tourist Accommodation conducted by the Australian Bureau of Statistics; and the Holiday Tracking Survey conducted by Roy Morgan Research, as well as specific research commissioned by the agency.

Survey data was interpreted and used to support Commission strategy and decision making, including the South Australian Tourism Plan 2009-2014, South Australia’s Strategic Plan Tourism Implementation Plan and SATC Corporate Plan. Market analysis of survey data was provided as input into the Adelaide Tourism Strategy, Food and Wine Strategy 2009-2014, Murraylands Regional Tourism Plan and Flinders Ranges; and Outback SA Regional Tourism Plan. Survey data was interpreted and used to inform other government agencies, industry, stakeholders, consultants, students and the general public about tourism demand, the characteristics of visitors and related issues at national, state and regional levels. The Research Unit publishes a range of fact sheets and reports on the Commission’s corporate website www.tourism.sa.gov.au. It also conducted a review of these research products in 2008-09 to ensure they are targeted to industry needs and create resource efficiencies.

The Unit continues to work with the Sustainable Tourism Cooperative Research Centre (STCRC), a joint venture between the education, government and industry sectors, to provide research and development advice for the tourism industry. In 2008-09, the STCRC produced the second South Australian Tourism Satellite Account with respect to 2006-07 and also conducted research on climate change.

In 2008-09, market research was commissioned on a range of campaigns and programs run by the Commission. These included conversion research for the Winter Holiday Affairs tactical marketing campaign and evaluation of the Isn’t It About Time tactical marketing campaign; a survey of South Australian Shorts operators to understand the impact of the program and operator perceptions and opinions of the program; River Murray Visitor Guide research; and tracking the image of South Australia held by consumers on the eastern seaboard to measure brand health.

Through Tourism Research Australia’s destination based survey program a strategic regional research project was undertaken exploring reactions to the Nullarbor as a tourism destination, measure awareness and test the appeal of current and potential attractions. A strategic regional research project was also initiated to measure the current and future economic impact of the drought on Murray River tourism and what role community perceptions of the drought has played in that impact. This is a tri-state initiative between Tourism New South Wales, Tourism Victoria and the Commission in conjunction with Tourism Research Australia.

In 2009-10, a major focus will be the provision of analysis to support the agency’s marketing and destination development strategies, particularly with respect to targeted market segments and product gap identification and the monitoring of key performance indicators established under the South Australian Tourism Plan 2009-2014.

10.10

Sub-program: 1.3 Tourism Access and Business Development

To assist South Australia Tourism industry in raising standards, efficiencies and marketability of products and services, and develops and promotes tourism products that build on the state’s competitive strengths.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program $4 166 000 $807 000 $2 315 000 $2 140 000

Performance Commentary The Commission continued to maintain close links with the tourism industry. Consultation was undertaken with stakeholders on a range of issues, including accessible tourism, visitor safety, tourism accreditation and industry complaints.

In 2008-09, the Commission worked to improve access to and within South Australia through the development of an Access Development Plan 2009-2014, which sets out the targets and strategies to improve access, particularly in the air, cruise and rail sectors.

A major focus for the Access team in 2008-09 has been aviation. The Commission, in partnership with the Department of Trade and Economic Development (DTED) and the Adelaide Airport Ltd, are working together to attract new airlines to South Australia and increase the services of existing airlines. As part of this work, the Commission and DTED have developed an Air Service Development Strategy. The Strategy prioritises airline route opportunities for the state over the next five years.

The Group successfully bid to host the 8th Asia Pacific Route Development Forum in Adelaide in 2010. This is the first time the Forum will be held in Adelaide, and it is expected it will attract more than 400 delegates, including representatives from 120 airlines. The Commission has also led or been part of several airline pitches designed to bring new carriers to South Australia.

Increasing domestic and regional air services is also an important component of the aviation strategy. Tiger Airways opened its second Australian base at the Adelaide Airport in March 2009 and has increased its flights to Adelaide to 44, up from 14 in January 2008. Air Services to Port Lincoln have been analysed to determine the Airport’s ability to attract direct jet services.

The Commission coordinated the arrival and welcome of 16 cruise ships to Outer Harbour and four regional ports, bringing over 20 000 visitors to South Australia, the largest cruise ship season to date. It is estimated that the 2008-09 cruise ship season generated $5.6 million in direct and indirect expenditure for the state. A new strategic focus in 2008-09 has been the development of Southern Ocean Cruising, which encourages smaller cruise ships to travel throughout South Australia stopping at our regional ports, resulting in significant injection into their local economies. The 600 passenger Athena was the first cruise ship to undertake this type of cruise and the Commission in 2009-10 will continue to attract more cruise ships to offer this type of holiday product.

In 2009-10, the Commission will continue to work with the taxi, coach and rail sectors to ensure that opportunities are maximised and to raise standards generally across all forms of transport.

The Wine and Food Tourism Working Group, formed under the Minister’s Tourism Round Table, developed a new Wine and Food Tourism Strategy 2009-2014. To help ensure South Australia continues to grow as a premier wine and food destination, $500 000 over two years has been set aside under the existing Tourism Development Fund budget to facilitate the development and upgrade of culinary tourism attractions.

In November, the Commission hosted the inaugural 2008 National Conference on Green Travel, Climate Change and Ecotourism, the first of its kind in Australia. The conference attracted over 250 specialists in the field and showcased South Australian initiatives in this regard. In partnership with Ecotourism Australia and the Great Barrier Reef Marine Park Authority, the Commission co-funded a pilot program for the development of Ecotourism Australia’s new Climate Action Certification. South Australia currently has seven of the sixteen operators nationally that have achieved Climate Action Certification. These operators have demonstrated best practise in climate change initiatives and this work is helping to cement South Australia’s reputation as a leader in ecologically sustainable development.

Following assistance provided by the Commission, the Flinders Ranges was included in the first round of National Landscapes announcements made by Tourism Australia. National Landscapes is an initiative that identifies areas with exceptional natural and cultural experiences, distinctive to Australia and sought after by a global audience known as Experience Seekers. This will mean that the Flinders Ranges brand will figure prominently in Tourism Australia’s international marketing and a greater priority will be given for development funding at a Federal level in the future. The Commission is now working with Kangaroo Island and the Eyre Peninsula to assist these regions through the National Landscapes process.

A number of cycle tourism projects which received support from the Commission were finalised in 2008-09, including the Southern Flinders Ranges Cycle Tourism Master Plan; the Coast to Vines Rail Trail infrastructure upgrade in the Southern Vales; the development of the Flinders Ranges by Bike experience between Rawnsley Park and Blinman; and the northern extension of the Riesling Trail in the Clare Valley. Discussions are continuing with key stakeholders to bring these experiences into the market place through effective marketing and packaging options.

A key initiative of the Commission’s Business Development team is to proactively work with investors to bring new and refreshed tourism product and infrastructure to market. A number of investor famils are taking place to showcase South Australian tourism investment opportunities to potential investors and existing tourism operators with the objective of facilitating investment. The investor famils will continue in 2009-10.

The Business Development team has also embarked on a print marketing campaign to ensure potential investors are aware of tourism opportunities that exist in South Australia. A part of this includes the new Brilliant Opportunities investor bulletin which is sent quarterly to over 600 investors and tourism operators nationally. Each bulletin showcases development opportunities in and around South Australia and highlights the assistance available from the Commission.

10.11

Sub-program: 1.4 Tourism Infrastructure Development

Identifies, evaluates, assists and funds tourism infrastructure projects throughout the state.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The SATC’s 2008-09 Tourism Development Fund (TDF) provided funding grants to facilitate the development of well designed and sustainable tourism infrastructure projects. The majority of the TDF grants were matched dollar for dollar by local councils or part-funded by community groups.

During 2008-09, the minor TDF supported 24 projects, with $700 000 leveraging more than $7 million of additional funding from tourism partners, including local government and private investors. Projects for the application based TDF included an extension of the Adelaide Parklands Trail to create links between the CBD and the visitor precinct of the Adelaide Botanic Gardens; the new Adelaide Zoo entrance and River Torrens Linear Park; installation of an underwater viewing tunnel at the Swim with the Tuna facility in Boston Bay at Port Lincoln; redevelopment of the foreshore strip at Coffin Bay on Eyre Peninsula and development of a microbrewery and woolshed function facility in the Riverland.

Major/strategic projects in 2008-09 included solar power facilities at the four additional luxury eco-lodges at Rawnsley Park Station in the Flinders Ranges; a visitor/interpretation facility at Baird Bay ‘Swim with the Sea Lions’; and infrastructure associated with a new terminal at the Coober Pedy Airport as well as contributions towards the Coast to Vines Rail Trail on the Fleurieu Peninsula and cycling trails in the Southern Flinders Ranges.

As part of its commitment to reinforce South Australia’s position as the Wine Capital of Australia, the Commission allocated separate TDF funding towards the upgrade of food and wine facilities throughout the state, and this will continue in the 2009-10 financial year.

The 2009-10 infrastructure funding will see an emphasis placed on attracting investors to undertake significant projects throughout the state which have been identified as important product gaps in the marketplace. The focus will be on supporting tourism infrastructure projects that create new and refreshed tourism developments and encourage investment in South Australia’s tourism assets. TDF grants for private sector developments involve a significant amount of investment from the proponent and illustrate the tremendous potential of partnerships in developing and maintaining tourism infrastructure — achieving mutual benefits for the state, the individual businesses and the local regional economies.

10.12


Program information

Program 2: Tourism Events

Description/Objective: To develop the state’s event calendar by bidding for and staging major events in South Australia.


Program 2: Tourism Events 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000


Total expenses 19 611 20 151 19 346 18 308

Income Sale of goods and services................................ 4 556 4 848 4 430 4 001

Total income 4 556 4 848 4 430 4 001


10.13

Program performance

Program: 2 Tourism Events

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of program $15 055 000 $15 303 000 $14 916 000 $14 307 000

Performance Commentary In 2008-09, the events division of the South Australian Tourism Commission, Events South Australia, successfully managed the World Food Exchange, Credit Union Christmas Pageant and the Tour Down Under. It is estimated that these three events generated more than $220 million in editorial media coverage.

The Events team also organised a Great Australian Outback Cattle Drive media famil to allow domestic and international media to experience the event. Approximately 20 domestic and international media attended the event including the Channel 7’s Sunrise team led by Ernie Dingo. This famil provided an invaluable opportunity to increase media coverage of the event, boost sales for the 2010 Great Australian Outback Cattle Drive and promote South Australia as the gateway to outback tourism experiences.

A major highlight for the year was securing cycling legend Lance Armstrong, who made his comeback at the 2009 Tour Down Under. Armstrong’s attendance, together with the second year of UCI Pro Tour Status, saw the event grow by massive proportions. Economic impact and research figures show that the 2009 Tour Down Under was the biggest event ever staged in South Australia. The event injected approximately $40 million (up from $17.3 million in 2008) into the state’s economy through the direct expenditure from the 36 000 event-specific visitors who travelled from interstate and overseas. The event drew 760 000 spectators (up from 548 000 from 2008). Audited editorial media coverage has been valued at more than $226 million (up from $43 million for the 2008 event). The event also secured 200 hours of broadcast television programming, up from 84.5 hours for the 2008 event, beaming images of South Australia into homes around the world. This coverage ensured that in addition to the race, South Australia’s extensive range of tourism experiences were promoted on the international stage in a way that money can’t buy. In addition, a record number of people, nearly 7500, participated in the Škoda Breakaway Series. In doing so the Tour promotes the adoption of a healthy lifestyle, by encouraging thousands of people of all ages to get on a bike and participate in the event.

Events South Australia also provided sponsorship, PR/media and/or marketing support to an additional 10 major events. These events were the Australian In-Line Hockey Championships, World Amateur Team Championships (for Golf), Classic Adelaide Rally, World Tennis Challenge, WOMADelaide, International Rugby Sevens Adelaide, World Schools Golf Challenge, FINA Men’s and Women’s Water Polo World League, UCI BMX World Championships and the Adelaide Festival of Ideas. The World Amateur Team Golf Championships, the pinnacle event for amateur golfers, saw a record number of 126 teams competing. The event attracted some 1000 international visitors, injecting $2 million into the state’s economy.

The 2008-09 Regional Events and Festivals Program provided sponsorship support to over 40 events, including Music on the Murray, Barossa Vintage Festival, Kernewek Lowender (Copper Coast Cornish Festival), Barossa Under the Stars, Bay to Birdwood, Bundaleer Forest Weekend, Penola Coonawarra Arts Festival, Feast Festival, Tunarama, Riverland Renaissance, the SA Wooden Boat and Music Festival, SALA Festival and the Bay Sheffield.

In March 2009, Events South Australia attended SportAccord, held in Denver, Colarado, United States of America, to promote South Australia’s event credentials to international sports federations and management companies. SportAccord provided an opportunity to identify new international event bidding opportunities for the state as well as form relationships critical to being successful in securing such opportunities.

Bidding and securing new events for the state continues to be a major focus for Events South Australia. Major bids successfully awarded to the state over the last 12 months, including the Australian Mountain Biking Championships (January 2010, 2011 and 2012), the FINA Water Polo World League Leg (May 2009) and the World Tang Soo Do Championships (November 2009). A number of other event opportunities are currently being investigated. The Australian Mountain Biking Championships are a UCI listed event and confirm South Australia as Australia’s epicentre of cycling. The first event in January 2010 is expected to attract up to 900 riders and as many as 10 000 spectators viewing over the five days of competition.

In addition to bidding for events, Events South Australia, in acknowledging that many of the state’s most successful events are home grown, is focussing on the development of new events in conjunction with state or national bodies or commercial partners.

Events South Australia will continue to play a major role in managing major events in 2009-10, namely the Credit Union Christmas Pageant, the Tour Down Under, Tasting Australia and the World Food Summit.

In 2009-10, Events South Australia will also provide sponsorship PR/media and/or marketing support to at least seven other major events, the World Hockey Festival (Golden Oldies), Classic Adelaide Rally, World Tennis Challenge, the MTBA Australian Mountain Bike Championships, WOMADelaide, 2010 Special Olympics National Games and the International Rugby Sevens Adelaide. The Special Olympics, being staged in April 2010, will see over 1000 athletes with an intellectual disability participate in a range of sports. It is expected that more than 3000 family, friends and supporters, event volunteers and sporting officials will join the competitors.

10.14


Program information

Program 3: Tourism Marketing

Description/Objective: To provide high quality marketing services and develop marketing strategies and campaigns to increase the number of visitors to and within South Australia.


Program 3: Tourism Marketing 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000


Total expenses 38 772 33 937 32 767 32 997

Income Sale of goods and services................................ 3 645 3 454 2 416 3 182

Total income 3 645 3 454 2 416 3 182


10.15


Sub-program: 3.1 Domestic Marketing

Develops and implements national marketing campaigns and programs to maintain awareness of the state’s tourism assets and increase visitation to and within South Australia.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary Target market research conducted in 2007-08 provided the foundation for the development of a major marketing campaign in the domestic market. Underpinned by detailed knowledge of the tourism target consumers’ media habits and holiday research behaviour, the Isn’t It About Time marketing campaign was developed to promote the state’s tourism experiences that appeal to the target consumer in key domestic tourism markets. The campaign represents an aggressive push into the eastern state markets, specifically targeting high-spending visitors, and is running at a time when evidence shows that consumers are looking to holiday closer to home.

The new $4.5 million campaign, combining retail and brand marketing activity, was launched in February and is running through to the end of June 2009. A key driver of the Isn’t It About Time campaign is the incorporation of partnerships with media and the tourism industry. Industry partnerships with Qantas Holidays, Blue Holidays and Australian Holiday Centres are facilitating the retail packaging and fulfilment for the campaign. These retail partners also invested marketing funds to support the advertising activity of Isn’t It About Time, taking the campaign total value to more than $7.5 million.

Campaign elements include television, magazine, newspaper, online and direct mail. Two new television commercials were produced featuring swimming with sea lions on the Eyre Peninsula and relaxing island escapes on Kangaroo Island. A series of custom published magazine inserts and South Australian editorial features are appearing in the Sydney Morning Herald, The Age and Good Weekend.

South Australia’s event calendar was promoted in the intrastate and interstate markets, utilising media partnerships with Fairfax (interstate) and News Limited (intrastate). In the interstate market, events were a featured editorial highlight of the custom published magazine inserts that appeared in the Sydney Morning Herald, The Age and Good Weekend. In conjunction with this, a series of individual events advertisements were placed in the Sydney Morning Herald and The Age. In the intrastate market, a four page foldout appeared in The Adelaide Annual Magazine in December 2008. The fold out featured an events calendar promoting city and regionally based events taking place throughout South Australia through to July 2009.

In the intrastate market, television partnerships were developed with Channel 7 and Channel 9. A series of advocacy style television commercials are appearing on the networks, with national and local celebrities sharing their favourite holiday experiences in South Australia. A partnership with News Limited also delivered a series of features, comprising editorial and retail advertising, in The Adelaide Magazine and the travel sections of The Advertiser and Sunday Mail.

The 2009-2010 South Australian Shorts Brilliant breaks and longer stays book was launched in February 2009, with 18 000 copies distributed to date in response to requests by consumers following the launch, which incorporated television, newspaper and direct mail activity. The Shorts Winter Sale commenced in May, offering a free night’s accommodation and other bonuses. The key promotional piece is a 32 page lift out in the Sunday Mail on 3 May, with support advertising on television, newspaper, online and direct mail and e-direct mail to the Commission’s database.

The Commission also continued its long standing sponsorship of Channel 7’s Discover and Channel 9’s Postcards.

In 2008-09, the government provided more than $2.2 million to the state’s eleven regional marketing bodies. Funding is provided on a cooperative basis, with contributions from local government and the tourism industry, generating more than $5 million worth of funding. In all 11 tourism regions, the Commission has entered into multi-year funding agreements with local government and the industry. Additional funding was also provided towards a range of other marketing initiatives, including the Recharge On The Murray Campaign, Yorke Peninsula Boat Load of Fun campaign and the Adelaide to Melbourne Touring Route. The government also continues to contribute to the servicing of visitors to the state through funding of the state’s accredited visitor information centres. In 2008-09, the commission provided $6000 to 45 accredited visitor information centres, totalling $270 000.

In 2009-10, additional ongoing funding will be used to build on the momentum of the Isn’t It About Time domestic marketing campaign. Marketing activity, with sufficient weight and frequency, will be undertaken in the key tourism markets of Sydney, Melbourne and nationally to ensure we reach our target tourism audience. Again media partnerships, both print and television will play an important role in combining editorial and advertising content as well as providing significant value for money. Extensive use of the Commission’s post and email databases will strengthen its relationship with its tourism target consumers with key retail offers and event information.

The additional funding will also be used to build on our intrastate marketing strategy to encourage more South Australians to take a holiday in their own state. The South Australian Shorts campaign will continue to be heavily promoted and provide easy to purchase retail packages.

10.16

Sub-program: 3.2 International Marketing

Positions South Australia as a compelling part of an Australian journey for overseas visitors by working cooperatively with trade partners and implementing marketing campaigns to ensure the consumer is aware of South Australia as a holiday destination and that every opportunity is taken to convert this awareness into travel.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary

In 2008-09, the Commission maintained representation in the United Kingdom (UK), North America, New Zealand, Europe (Germany, France and Italy), South East Asia (Singapore) and North Asia (Hong Kong). South Australia also has a Tourism Ambassador in India, and promotes South Australian tourism to Japan, with the assistance of a marketing and public relations company based in Tokyo.

To leverage the significant promotion undertaken by Twentieth Century Fox and Tourism Australia for Australia The Movie, the Commission implemented a range of marketing activities in key tourism international markets. As a result of a partnership with Stella Travel, a global travel company, South Australian holiday experiences were featured in a 32 page brochure dedicated to Australia The Movie and on Stella Travel’s websites. South Australia was also featured in Stella Travel marketing campaigns in the United Kingdom, United States of America and New Zealand. In addition, other editorial and trade marketing activities were undertaken in Germany, France and Italy.

The Commission has a Memorandum of Understanding (MOU) with Singapore Airlines, which commits both parties to cooperative marketing activities to promote the Airline’s direct flights into Adelaide. The MOU has resulted in cooperative marketing activities in the United Kingdom, Germany, France, Holland, Scandinavia, Hong Kong and Singapore. A major campaign in Singapore was Adelaide Brilliant Deals, which involved an interactive website featuring destination information, competitions and packages to Adelaide. Supporting activity included radio promotions, email marketing and a consumer promotion.

In the UK, the Commission partnered with STA Travel in an online campaign targeting the youth market. The campaign, which ran from November 2008 to January 2009, encouraged consumers to submit a video of why they should be chosen to travel to South Australia. The competition was promoted on online social media sites, by podcast and search engine activities, as well as advertising in UK universities and in selected retail outlets. The winners visited Adelaide, the Barossa, Kangaroo Island and the Eyre Peninsula and shared their travel experiences on a dedicated website, which received over 27 000 page views. The Commission and Tourism Australia organised a familiarisation visit for the UK publication Lonely Planet Magazine. As a result of the famil, South Australia was promoted in the magazine’s April 2009 ‘journey’ themed edition. South Australia appeared on the front cover and was promoted in a dedicated 14 page article, showcasing the Eyre Peninsula and Outback regions. The magazine has a print run of 70 000 copies and targets ‘affluent, highly educated, engaged consumers with a sense of adventure’.

In Germany, the Flinders Ranges and the Outback featured in an article in the December edition of DB Mobil, the national railway passenger magazine. Over 500 000 copies of the magazine are distributed on all major trains throughout Germany and Switzerland to a readership of over 1 million people.

In New Zealand, South Australia’s brand campaign recommenced in February 2009, with television and press advertising. In addition, this year there is an increased focus on online marketing. The campaign highlights the experiences identified as prime motivators for New Zealand travellers, including the accessibility of Adelaide, wine and food, the River, self drive and the Outback.

In the United States, the Commission partnered with two travel organisations that specialise in up market travel, Stella Travel and Virtuoso. Activity included press advertising in Virtuoso’s dedicated magazine, email campaigns, dedicated training sessions for Virtuoso and Stella staff and agents, website presence. The Commission participated in the G’Day USA promotions and was the naming rights sponsor of the Adelaide Symphony Orchestra’s performance at UCLA’s Royce Hall. Following the performance, the Commission hosted a cocktail reception for targeted consumers, travel agents and media, promoting South Australian tourism experiences.

SATC Hong Kong coordinated a marketing campaign in China with GZL Guangzhou, one of southern China’s key travel agents, during December 2008 and January 2009, highlighting South Australia’s nature and wildlife, and food and wine experiences. Campaign elements included print advertising, editorial coverage, a radio interview and a dedicated presence at GZL’s VIP consumer show. A one minute DVD featuring South Australia was played on taxi screens, in shopping arcades, office buildings and pedestrian streets during the campaign period.

The Commission successfully bid to host two major industry events to be held in Adelaide in 2009. The Cruise Down Under Conference is expected to attract 100 delegates from the Australian cruise industry and up to five international cruise VIPs. Corroboree the Americas will see ‘Aussie Specialist’ travel agents meeting with tourism suppliers from around Australia. This will be a fantastic opportunity to showcase our state to these major sellers of Australian travel in North America.

In 2009-10, the Commission will continue to undertake marketing in its targeted international markets, with an emphasis on public relations and consumer promotions to drive demand for South Australian holidays. It will work closely with key trade partners to package and promote South Australia, and with airline partners to promote Adelaide as a gateway for a holiday to Australia. Adelaide will also host the Australian Tourism Exchange (ATE) for the second time in May/June 2010. ATE is the largest tourism trade show in the Southern Hemisphere and hosting the event again will help to push South Australian holiday experiences and attractions into the international spotlight.

10.17

SOUTH AUSTRALIAN TOURISM COMMISSION

Income statement__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 11 289 11 064 10 968 10 727 Long service leave .................................................................... 332 326 496 439 Payroll tax ................................................................................ 623 611 637 685 Superannuation ......................................................................... 1 078 1 065 1 104 1 042 Other ......................................................................................... 209 198 204 148Supplies and services — General supplies and services .................................................. 39 567 36 055 33 527 31 821 Consultancy expenses .............................................................. 59 24 24 16Depreciation and amortisation expenses ...................................... 469 452 455 682Borrowing costs ............................................................................ 12 24 24 35Grants and subsidies ..................................................................... 13 415 11 407 11 269 11 881Intra government transfers ........................................................... — 50 — — Other expenses ............................................................................. 384 78 83 235

Total expenses 67 437 61 354 58 791 57 711

Income

Intra government transfers ........................................................... — 1 100 — — Sales of goods and services .......................................................... 8 260 9 061 6 892 7 300Net gain or loss from disposal of assets ....................................... — — — -8Other income ................................................................................ — — — 4

Total income 8 260 10 161 6 892 7 296


Income from / Expenses to SA Government

Income — Appropriation ........................................................................... 57 800 52 927 51 899 48 698 Other income ............................................................................ — 16 — 1 608

Net income from / expenses to SA Government 57 800 52 943 51 899 50 306

Net result -1 377 1 750 — -109

10.18


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 2 606 4 165 3 052 3 537Receivables ................................................................................... 1 816 1 927 807 2 038Other current assets ...................................................................... 85 84 593 83

Total current assets 4 507 6 176 4 452 5 658

Non current assetsFinancial assets ............................................................................. 400 400 400 400Plant and equipment ..................................................................... 3 306 3 648 3 546 1 471Intangible assets ........................................................................... — — 48 —

Total non-current assets 3 706 4 048 3 994 1 871

Total assets 8 213 10 224 8 446 7 529

Liabilities

Current liabilitiesPayables ........................................................................................ 3 289 3 719 1 545 2 762Short-term borrowings ................................................................. 50 193 193 180Employee benefits — Salaries and wages ................................................................... 233 233 286 234 Annual leave ............................................................................. 701 712 747 731 Long service leave .................................................................... 197 197 285 202Other current liabilities ................................................................. 316 316 1 222 162

Total current liabilities 4 786 5 370 4 278 4 271

Non current liabilitiesLong-term borrowings .................................................................. — 50 50 243Long-term employee benefits — Long service leave .................................................................... 1 197 1 197 874 1 222Other non-current liabilities ......................................................... — — 1 234 —

Total non-current liabilities 1 197 1 247 2 158 1 465

Total liabilities 5 983 6 617 6 436 5 736

Net assets 2 230 3 607 2 010 1 793

Equity

Contributed capital ....................................................................... 64 64 64 — Retained earnings ......................................................................... 2 166 3 543 1 946 1 793

Total equity 2 230 3 607 2 010 1 793

Balances as at 30 June end of period.

10.19


Cash flow statement__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000

OPERATING ACTIVITIES:

Cash outflowsEmployee benefit payments ......................................................... 13 542 13 275 13 420 12 756Payments for supplies and services .............................................. 39 780 34 845 33 551 31 436Interest paid .................................................................................. 12 24 24 35Grants and subsidies ..................................................................... 13 415 11 407 11 269 11 881GST paid ...................................................................................... — — — 435Intra government transfers ........................................................... — 50 — — Other payments ............................................................................ 661 201 -1 028 —

Cash used in operations 67 410 59 802 57 236 56 543

Cash inflowsIntra government transfers ........................................................... — 1 100 — — Sales of goods and services .......................................................... 8 371 9 172 7 003 6 331

Cash generated from operations 8 371 10 272 7 003 6 331

SA GOVERNMENT:

Appropriation ............................................................................... 57 800 52 927 51 899 48 698Other receipts ............................................................................... — 16 — 1 608

Net cash provided by SA Government 57 800 52 943 51 899 50 306

Net cash provided by (+) / used (-) in operating activities -1 239 3 413 1 666 94

INVESTING ACTIVITIES:

Cash outflowsPurchase of property, plant and equipment .................................. 127 2 629 2 629 573

Cash used in investing activities 127 2 629 2 629 573

Cash inflowsProceeds from sale of property, plant and equipment .................. — — — 4

Cash generated from investing activities — — — 4

Net cash provided by (+) / used in (-) investing activities -127 -2 629 -2 629 -569

10.20



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000

FINANCING ACTIVITIES:

Cash outflowsRepayment of borrowings ............................................................ 193 180 180 169

Cash used in financing activities 193 180 180 169

Cash inflowsCapital contributions from SA Government ................................ — 64 64 — Proceeds from restructuring activities .......................................... — -40 — —

Cash generated from financing activities — 24 64 —

Net cash provided by (+) / used in (-) financing activities -193 -156 -116 -169

Net increase (+) / decrease (-) in cash equivalents -1 559 628 -1 079 -644

Cash and cash equivalents at the start of the financial year 4 165 3 537 4 131 4 181

Cash and cash equivalents at the end of the financial year 2 606 4 165 3 052 3 537

10.21


Financial commentary — major variations

The following commentary relates to the agency financial statements presented in the previous section. The discussion relates to variations between the 2008-09 Estimated Result and the 2009-10 Budget.

Income statement — controlled

Income

The decrease in total income of $1.9 million between the 2008-09 Estimated Result of ($10.2 million) and the 2009-10 Budget ($8.3 million) is primarily due to revenue received in 2008-09 from partners to attract additional air services to the State. The majority of this money has been budgeted to be spent in 2009-10 impacting the Commission’s net result. This is also reflected in the net cost of services of sub-program 1.3.

Expenses

The $6 million increase in total expenses between the 2008-09 Estimated Result ($61.4 million) and the 2009-10 Budget ($67.4 million) is primarily due to an increase in expenditure for the staging of the Australian Tourism Exchange in June 2010; additional budgeted expenditure for increasing direct flights to the State; and for an ongoing increase in domestic marketing campaign initiatives.

Balance sheet — controlled

There are no major variances in the Balance Sheet.

Cash flow statement — controlled

The variances in the Cash flow statement are caused by the changes detailed in the Income statement commentary above.

10.22

Portfolio: Environment and Conservation and the River Murray

Minister for Environment and Conservation Minister for the River Murray Minister for Water Security

TABLE OF CONTENTS

PORTFOLIO SUMMARY


Portfolio net cost of services summary .............................................................................. 11.3

Investing payments summary............................................................................................. 11.3


Ministerial Office resources .............................................................................................. 11.4

Agency summaries

Department for Environment and Heritage ........................................................................ 11.6

Department of Water, Land and Biodiversity Conservation .............................................. 11.44

Environment Protection Authority ..................................................................................... 11.70

Zero Waste SA ................................................................................................................... 11.86

PORTFOLIO: ENVIRONMENT AND CONSERVATION AND THE RIVER MURRAY


Minister Agency Programs Sub-Programs 1. Nature Conservation Nil

2. Public Land — Visitor Management

Nil

3. Public Land — Fire Management

Nil

4. Public Land — Stewardship

Nil

5. Coast and Marine Conservation

Nil

6. Botanic Gardens Management

Nil

7. Heritage Conservation Nil

8. Animal Welfare Nil

9. Agency Support Services

Nil

10. Adaptive Management of the Lower Lakes and Coorong

Nil

Department for Environment and Heritage

11. Knowledge and Information

Nil

Department of Water, Land and Biodiversity Conservation

1. Natural Resources Management

1.1 Natural Resources Management Services

1.2 Policy, Science and Information

1.3 Infrastructure Services

Environment Protection Authority

1. Environment and Radiation Protection

1.1 Environment Protection 1.2 Radiation Protection

The Hon. Jay Weatherill Minister for Environment and Conservation

Zero Waste SA 1. Waste Reduction and Resource Recovery

Nil

2. Natural Resources Management (River Murray)

2.1 Natural Resources Management Services (River Murray)

2.2 Policy, Science and Information (River Murray)

2.3 Infrastructure Services (River Murray)

The Hon. Karlene Maywald Minister for the River Murray Minister for Water Security

Department of Water, Land and Biodiversity Conservation

3. Water Security Nil

11.1

Administered items

In addition to the above responsibilities the Portfolio administers the following items on behalf of Minister(s).

• Board of Botanic Gardens and State Herbarium

• Caring for our Country

• Coast Protection Fund

• Dog and Cat Management Board

• Excess Water (Fines and Penalties)

• Ministerial Other Items allocations

• National Action Plan for Salinity and Water Quality

• Native Vegetation Fund

• Natural Heritage Trust

• Natural Resource Management Research Alliance (formerly Centre for Natural Resource Management)

• Pastoral Board

• Qualco Sunlands Ground Water Control Trust

• South Eastern Water Conservation and Drainage Board

• Surplus Land and Property Sales Account

Statutes


11.2

PORTFOLIO NET COST OF SERVICES SUMMARY

2009-10 Budget


2008-09 Budget

2007-08 Actual

Agency $000 $000 $000 $000 Department for Environment and Heritage ................................................... 128 885 134 840 135 959 147 165 Department of Water, Land and Biodiversity Conservation ....................... 85 158 167 817 121 388 68 032 Environment Protection Authority........... 2 124 3 972 3 873 4 959 Zero Waste SA ........................................ -3 662 -2 961 -2 914 -5 116

Total 212 505 303 668 258 306 215 040

INVESTING PAYMENTS SUMMARY

2009-10 Budget


2008-09 Budget

2007-08 Actual

Agency $000 $000 $000 $000 Department for Environment and Heritage ................................................... 24 950 19 268 15 664 12 265 Department of Water, Land and Biodiversity Conservation ....................... 21 863 5 321 1 047 2 003 Environment Protection Authority........... 528 5 968 5 768 644 Zero Waste SA ........................................ 60 — — —

Total 47 401 30 557 22 479 14 912

11.3

WORKFORCE SUMMARY

FTEs as at 30 June

Agency 2009-10

Budget(a) 2008-09

Estimated result(a) 2007-08

Actual(b) Department for Environment and Heritage........... 993.2 1 156.7 1 055.9 Department of Water, Land and Biodiversity Conservation ...................................................... 592.7 654.9 570.3 Environment Protection Authority........................ 212.5 235.6 231.7 Zero Waste SA ..................................................... 19.0 20.0 19.5

Total 1 817.4 2 067.2 1 877.4



MINISTERIAL OFFICE RESOURCES

2009-10 Budget

Cost of provision Minister $000 FTEs The Hon. Jay Weatherill 1 707 12.7 The Hon. Karlene Maywald 1 622 13.0

11.4

TABLE OF CONTENTS

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Objective ......................................................................................................................................... 11.7





1. Nature Conservation ...................................................................................................... 11.10

2. Public Land — Visitor Management ............................................................................. 11.12

3. Public Land — Fire Management.................................................................................. 11.14

4. Public Land — Stewardship .......................................................................................... 11.16

5. Coast and Marine Conservation..................................................................................... 11.18

6. Botanic Gardens Management. ...................................................................................... 11.20

7. Heritage Conservation ................................................................................................... 11.22

8. Animal Welfare.............................................................................................................. 11.24

9. Agency Support Services ............................................................................................... 11.26

10. Adaptive Management of the Lower Lakes and Coorong ............................................. 11.28

11. Knowledge and Information .......................................................................................... 11.30



Balance sheet......................................................................................................................... 11.32


Income statement — administered items .............................................................................. 11.35

Balance sheet — administered items .................................................................................... 11.36

Cash flow statement — administered items.......................................................................... 11.37


Additional information for administered items ............................................................................... 11.40

11.6



Objective

The Department for Environment and Heritage (DEH) aims for a prosperous and sustainable society that values, conserves and invests in its rich heritage and diverse natural environments.

11.7



• Release Adelaide Mount Lofty Ranges Biodiversity Strategy • Release NatureLinks Corridor Plans for Flinders-Olary, Cape

Borda to Barossa and River Murray Coorong • Construct the next stage of new visitor facilities at Belair and

Innes national parks • Increase fuel reduction burning on DEH managed lands and

work on bushfire mitigation and suppression • Finalise the Protected Areas Strategy for South Australia • Introduce into Parliament an Amendment Bill to update the

reserve classification system • Finalise co-management arrangements over Flinders Ranges

National Park, Breakaways Conservation Park, and Lake Gairdner and Gawler Ranges national parks

• Prepare marine park management plans • Finalise regulations under the Marine Parks Act 2007 to

provide for any displaced commercial fishing effort relating to marine parks and to establish ways in which marine park zones may support their management

• Pursue the updating of state planning policies to incorporate revised sea level rise allowances

• Let a tender for construction of sand-transfer infrastructure as part of Adelaide’s Living Beaches Strategy for 2005-2025

• Publish a Botanic Gardens of Adelaide Catalogue of Plants • Compile the first volume of the Flora of South Australia • Begin implementing the Coorong, Lower Lakes and Murray

Mouth long-term plan, which includes ecological investigations, adaptive management arrangements and bioremediation and revegetation elements

• Develop the Enterprise Business Information Strategy to improve the maintenance and accessibility of data and information resources

• Released and began implementing the East meets West NatureLinks Corridor Plan

• Planted 1000 hectares under the River Murray Forest project • Released the SA Arid Lands Biodiversity Strategy • Published Linking with Nature, a Trails Strategy for South

Australia’s Parks and Reserves • Completed visitor facility upgrades at Innamincka, Mount

Remarkable and Innes national parks • Completed the Fire Behaviour and Prescribed Burning Guide

for Mallee Shrublands (Project Fuse) research experiments • Completed the Ecological Fire Management guidelines • Employed 64 seasonal firefighters to improve DEH and

SA Water firefighting capacity • Completed the DEH annual fuel reduction prescribed burning

program • Formally wound up the Perpetual Lease Accelerated

Freeholding Project • Enacted the Crown Lands Management Act 2008 • Tabled 10 year reviews of Innamincka and Simpson Desert

Regional Reserves in Parliament • Proclaimed the Billiatt and Danggali Wilderness Protection

Areas • Finalised Yandruwandha Yawarrawarrka people’s indigenous

land-use agreement and co-management agreement over the Coongie Lakes National Park

• Gazetted outer boundaries for 19 marine parks and conducted an eight week public consultation process

• Called nominations for marine park local advisory groups • Established pilot working groups for marine parks 1, 2, 6, 18

and 19 to advise the Minister on outer boundaries • Reviewed scientific evidence and advised government on

sea level rise policies • Began construction on Semaphore South Breakwater for sand

management • Completed the major refurbishment of the Museum of

Economic Botany • Allocated $970 000 in grants to identify and support the

protection and conservation of heritage in South Australia. • Completed a survey of 20th century heritage for 1928–45 • Implemented the amended Animal Welfare Act 1985 and dog

and cat education and awareness activities • The Botanic Gardens Seed Conservation program became the

first international partner of the Millennium Seed Bank project to achieve its collection targets, almost 12 months ahead of schedule

11.8


Net Cost of Services

2009-10Budget


2008-09 Budget

2007-08 Actual

Program $000 $000 $000 $000 1. Nature Conservation................................... 30 310 32 011 33 894 28 699 2. Public Land — Visitor Management .......... 20 984 22 223 23 949 20 621 3. Public Land — Fire Management............... 7 348 7 497 6 211 6 594 4. Public Land — Stewardship ....................... 8 935 9 400 9 012 8 722 5. Coast and Marine Conservation ................. 9 756 11 887 17 169 9 957 6. Botanic Gardens Management.................... 5 183 4 118 3 785 4 860 7. Heritage Conservation................................ 2 960 3 227 3 161 3 022 8. Animal Welfare .......................................... 892 899 1 001 753 9. Agency Support Services ........................... 26 805 27 706 37 777 63 937 10. Adaptive Management of the Lower

Lakes and Coorong.....................................— — — —

11. Knowledge and Information....................... 15 712 15 872 — —

Total 128 885 134 840 135 959 147 165


2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

New works

Adelaide Zoo — Botanic Park Entrance..... 400 400 — —

Total new works 400 400 — —

Works in progress

Adelaide Living Beaches............................ 11 000 2726 628 — Belair National Park Visitor Facilities........ 2 600 2 527 2 300 1 494 Innes National Park Infrastructure and Facilities Upgrade.......................................

400 1 883 1 800 765

Museum of Economic Botany .................... — 1 443 945 132 Upgrade Roads in National Parks across the state.......................................................

— — — 1 116

Amazon Waterlily ...................................... — — — 282

Total works in progress 14 000 8 579 5 673 3 789

Annual programs 10 550 10 289 9 991 8 476

Total investing payments 24 950 19 268 15 664 12 265

11.9


Program information

Program 1: Nature Conservation

Description/Objective: Protecting, maintaining, improving and restoring ecosystems, habitats, species and populations by developing nature conservation policies and programs with industries, government and communities, and by undertaking and supporting research, surveys and monitoring of South Australia’s biodiversity.


Program 1: Nature Conservation 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 15 796 18 531 16 266 16 053 Supplies and services........................................ 12 477 14 876 11 871 10 629 Grants and subsidies ......................................... 221 972 2 984 936 Depreciation and amortisation .......................... 10 414 9 939 11 768 10 431 Other................................................................. 219 403 204 143

Total expenses 39 127 44 721 43 093 38 192

Income Sale of goods and services................................ 3 081 3 678 208 589 Fees, fines and penalties ................................... 426 430 241 446 Commonwealth revenue ................................... 3 195 5 811 8 454 981 Other................................................................. 2 115 2 791 296 7 477

Total income 8 817 12 710 9 199 9 493


11.10

Program performance information

Program: 1 Nature Conservation

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary No Species Loss: a Nature Conservation Strategy for South Australia 2007-2017 is the basis of the Nature Conservation Program, delivering the targets for which DEH has lead responsibility. The program activities contributed to statewide implementation of the nature conservation strategy, wildlife management on and off reserve, and the development of conservation planning tools. DEH led species recovery and conservation programs for native fish and tortoises in response to drought conditions, undertook successful trials of decision making tools for conservation projects within the Adelaide Mount Lofty Ranges region, and completed the Regional Species Assessment for the Northern and Yorke region.

Although the drought continued to delay on ground biodiversity conservation work, including the rollout of the River Murray Forest, 1000 hectares was planted.

Following the release in late 2007-08 of the East meets West Biodiversity Corridor Plan, work continued on three other NatureLinks Corridor draft plans: Flinders-Olary, River Murray Coorong and Cape Borda to Barossa.

Scoping will proceed on the Arid Lands Corridor, with emphasis on engaging stakeholders, following the release in 2008-09 of the SA Arid Lands Biodiversity Strategy.

In 2009-10, the program will focus on prioritising No Species Loss activities and in engaging partners and stakeholders to work toward the strategy’s goals. Development of landscape scale conservation strategies, input to the Murray Futures program and emergency response actions for threatened species will continue.

A new conservation planning framework will support decision making across landscape, ecosystems and species, and help prioritise No Species Loss landscape conservation targets. Ongoing activity will support this work and NatureLinks corridor plans and onground conservation. Knowledge gained will also be used to determine those biodiversity assets that require protection or ecologically sensitive development.

Advances in biodiversity knowledge and the information tools that support the conservation planning framework are critical. The Adelaide Mount Lofty Ranges Biodiversity Strategy and regional species assessments for Eyre Peninsula and SA Murray–Darling Basin Natural Resource Management (NRM) regions will be finalised in 2009-10. NatureLinks corridor plans will be completed for Flinders-Olary, Cape Borda to Barossa and River Murray Coorong corridors. Implementation of the East meets West NatureLinks will continue in 2009-10.

In 2008-09, DEH completed initial investigations of the acid sulfate soil characteristics for River Murray Wetlands below Lock 1 and in the Lower Lakes. The ongoing drought conditions continue to affect the Nature Conservation Program, and the predicted climate change impact ensures this will remain a focus for DEH in 2009-10. The Murray Futures, Water Security and Drought Response, and Coorong, Lower Lakes and Murray Mouth programs will examine immediate concerns and enforcing the biodiversity component of the DEH Climate Change Strategy will help address the longer-term predictions.

Performance Indicators 2009-10 Target


2008-09 Target

2007-08 Actual

No. of new research partnerships established No target set for 2009-10(a)

7 6 4

No. and $ value of grants provided for nature conservation research programs

No target set for 2009-10(a)

19

($240 000)

16

($250 000)

18

($280 000)

Number of Interim Biogeographic Regionalisation for Australia (IBRA) sub regions with more than one flora/fauna survey quadrant per 800 km2

No target set for 2009-10(a)

57 regions

(84%)

57 regions

(84%)

56 regions

(82%)

No. and % of listed threatened species for which recovery plans or related action plans have been developed

215 of 487

(44%)

213 of 487

(43%)

205 of 487

(42%)

202 of 487

(41%)

Number of large scale biodiversity corridors established with management plans

4 1 3 1

No. and % of Natural Resource Management (NRM) regions covered by biodiversity plans that have been completed or updated within five years

6 of 8

(75%)

5 of 8

(63%)

6 of 8

(75%)

5 of 8

(63%)

Footnotes (a) The monitoring of this performance indicator will discontinue from 2009-10. All Performance Indicators for this program are

currently being reviewed, and it is expected that new indicators will be developed for 2010-11.

11.11


Program information

Program 2: Public Land — Visitor Management

Description/Objective: Promoting public enjoyment and the conservation of the state’s natural and cultural heritage through the provision of sustainable opportunities for environmentally sensitive, economically viable and socially responsible visitor experiences.


Program 2: Public Land — Visitor Management

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 11 886 12 727 12 581 11 829 Supplies and services........................................ 7 288 7 268 7 036 9 631 Grants and subsidies ......................................... 23 62 71 5 Depreciation and amortisation .......................... 10 413 9 940 11 768 10 431 Other................................................................. 113 209 136 1 363

Total expenses 29 723 30 206 31 592 33 259

Income Sale of goods and services................................ 8 646 7 687 6 163 8 420 Fees, fines and penalties ................................... 67 68 7 15 Commonwealth revenue ................................... — — 128 100 Other................................................................. 26 228 1 345 4 103

Total income 8 739 7 983 7 643 12 638


11.12


Program: 2 Public Land — Visitor Management

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary New visitor facilities were built at Coongie Lakes in the Innamincka Regional Reserve, Mount Remarkable and Belair national parks, and at West Cape and Pondalowie Campground in the Innes National Park.

Master planning for visitor facility improvements was completed for regional reserves and national parks at Innamincka, Coongie Lakes, Port Lincoln, Coffin Bay, Mount Remarkable, Wabma Kadarbu Mound Springs, Antechamber Bay in the Lashmar Conservation Park and 42 Mile Crossing in the Coorong National Park. Strategic planning was completed for visitor facility improvements at Cleland Wildlife Park and Seal Bay Conservation Park.

Linking with Nature, a Trails Strategy for South Australia’s Parks and Reserves was published and trails planning completed in the Flinders Ranges, Belair, Mount Remarkable and Innes national parks, Cleland and Hallett Cove conservation parks and the Heysen Trail.

A statewide visitor strategy was completed. Policies were developed for vehicle access to parks and camping.

In 2009-10 planning for visitor facility improvements will proceed at the Wilpena Homestead Precinct in Flinders Ranges National Park and the Wonambi Fossil Centre in Naracoorte Caves National Park. Planning for improvements will also continue for Cleland Wildlife Park and Seal Bay Conservation Park visitor facilities, and the Heysen Trail through the Flinders Ranges National Park and on the Fleurieu Peninsula. Feasibility planning for a proposed ‘cape-to-cape’ walk on Kangaroo Island will be completed, as will interpretation plans for Lincoln, Coffin Bay and Coongie Lakes national parks and Innamincka Regional Reserve.

Visitor facilities will be constructed at the entry to Belair National Park. New facilities will add to visitor enjoyment at Surfers Beach in Innes National Park, Mount Remarkable National Park, Innamincka Regional Reserve and Coongie Lakes National Park. Waterfall Gully to Mount Lofty trail upgrades will be completed and interpretation signs installed in the Vulkathunha-Gammon Ranges, Flinders Ranges and Mount Remarkable national parks, Cleland Wildlife Park and Burke and Wills heritage sites in the Innamincka Regional Reserve.

The statewide visitor strategy will be introduced. Policies will be developed for visitor access, facility development, information and interpretation, safety, sustainable recreation, commercial filming and white shark cage diving.

The department will consider the feasibility for online systems to help the public arrange accommodation, book tours and access park entry and fee information.



2008-09 Target

2007-08 Actual

No. of visits to all parks(a) 4 300 000 4 280 000 6 520 000 4 220 000

Satisfaction rate with facilities 90% 90% 80% 92%

Park revenue 9 318 000 8 820 000 8 500 000 8 487 000

Footnotes (a) Methodology for estimating park visits was changed in 2007-08 to rely on an omnibus style survey of South Australian residents and

data from Tourism Australia domestic and international visitor surveys.

11.13


Program information

Program 3: Public Land — Fire Management

Description/Objective: Managing fire to reduce the risk to life and property, and conserve our natural and cultural heritage on lands managed by the Department for Environment and Heritage.


Program 3: Public Land — Fire Management

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 5 566 6 885 5 748 6 372 Supplies and services........................................ 2 040 2 128 1 949 2 251 Grants and subsidies ......................................... 15 25 88 30 Depreciation and amortisation .......................... 130 115 54 120 Other................................................................. 32 58 43 14

Total expenses 7 783 9 211 7 882 8 787

Income Sale of goods and services................................ — — — 1 176 Commonwealth revenue ................................... 128 614 150 — Other................................................................. 307 1 100 1 521 1 017

Total income 435 1 714 1 671 2 193


11.14


Program: 3 Public Land — Fire Management

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary Following the Kangaroo Island bushfires in December 2007, DEH reviewed its fire management program. Recommendations arising from the review included increasing the number and area of prescribed burns, identifying fire management as a DEH priority and boosting the department’s capacity to manage fire on the public estate.

Two fire management plans were adopted and a further eight developed to a draft stage awaiting adoption. The 10 plans will cover more than one-third of the protected areas managed by DEH in the highest risk areas of the state.

Fire management arrangements with other South Australian agencies now include DEH staff joining the Level 3 Inter-agency Incident Management Teams established by the South Australian Country Fire Service (CFS).

DEH undertook to increase its prescribed burning program. In Autumn 2009 planning was completed to undertake 66 burns to reduce the bushfire hazard in high-risk areas and enhance ecological biodiversity.

An extra $851 000 was allocated to DEH to employ 26 seasonal firefighters, taking the total number available for statewide operations and response to 64. DEH sent 160 staff members to help fight the Victorian bushfires in February 2009 and one DEH staff member joined an Australian and New Zealand crew to assist with fire suppression in the United States.

DEH assisted with the development of a Code of Practice for the Management of Native Vegetation to Reduce the Impact of Bushfire, which was a recommendation of the Wangary Coronial inquest. DEH led two reviews prompted by the Victorian bushfires that examined the interaction between native vegetation and bushfire and fire management on South Australian public lands. The review findings will be forwarded to the Bushfire Taskforce commissioned by the Minister for Emergency Services as a response to the Victorian fires. Endorsed recommendations will be implemented in 2009-10.

Findings from the Victorian Royal Commission and other inquiries will be examined for their applicability to bushfire management in South Australia.

Under the government’s 20 New Rangers initiative, five graduate rangers were appointed. These rangers have undertaken fire training, participated in DEH’s fire management program, supported DEH’s volunteers, and contributed to nature conservation and visitor management projects.

In 2009-10, efforts will focus on increasing DEH’s fire management capabilities. Links will be strengthened with the CFS and other national and state groups including the State Bushfire Prevention Committee, Australasian Fire Authorities Council, Bushfire Cooperative Research Centre and Forest Fire Management Group. The prescribed burning program will be expanded to further reduce the bushfire risk to life and property and to protect natural assets.



2008-09 Target

2007-08 Actual

No. and % regional conservation staff with current fire management qualifications (CFS Level 1 or above)

383

85%

326

71%

383

85%

290

71%

% of annual works programs implemented to achieve fire management targets

100% 100% 100% 100%

% of approved prescribed burns implemented 100% 85%(a) 100% 61%

Appoint additional staff under 20 New Rangers initiative

Recruit and appoint five park rangers

Recruit and appoint five park rangers

Recruit and appoint three park rangers

Recruited and appointed seven park rangers

Footnotes (a) At the time of writing, the prescribed burns implemented in Autumn 2009 is unknown. The burns will occur between April and

June, subject to suitable weather conditions.

11.15


Program information

Program 4: Public Land — Stewardship

Description/Objective: Ensuring public lands and protected areas are managed effectively.


Program 4: Public Land — Stewardship 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000


Total expenses 12 569 13 050 12 001 12 588

Income Sale of goods and services................................ 2 981 2 907 1 706 2 868 Fees, fines and penalties ................................... 145 146 214 277 Commonwealth revenue ................................... 223 409 849 178 Other................................................................. 285 188 220 543

Total income 3 634 3 650 2 989 3 866


11.16


Program: 4 Public Land — Stewardship

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary A review developed more efficient and responsive models for reserve management planning. The results were presented to a national seminar organised by DEH and will be implemented in 2009-10. Management plans were adopted for Althorpe Islands, Goose Island, Troubridge Island, Ngaut Ngaut and Tantanoola Caves conservation parks, Witjira National Park, Sturt Gorge Recreation Park and the Mainland Conservation Parks of Yorke Peninsula (covering nine conservation parks).

The Billiatt and Danggali Wilderness Protection Areas were proclaimed and the Wilderness Advisory Committee began assessing the wilderness values of the Mawson Plateau. Additional land was proclaimed as part of Lashmar Conservation Park.

Management of exploration and mining activities in reserves included improved policy frameworks and assessing the proposed Jacinth-Ambrosia mineral sands mine by Iluka Resources in Yellabinna and Nullarbor Regional Reserves.

The freeholding of perpetual leases under the Perpetual Leases Freeholding Project was completed by 30 June 2009. Approximately 12 700 leases will be freehold representing 95 per cent of the total leases for which applications were received.

Efforts continued on implementing the DEH Volunteer Strategy, Success through Partnership: A Strategy for Volunteer Engagement 2005-2010.

The Crown Land Management Act 2008 passed through Parliament, updating the Crown Lands Act 1929. DEH led South Australia’s input into national inquiries and reviews relating to the Environment Protection and Biodiversity Conservation Act 1999 (Commonwealth). The department also led efforts to incorporate coastal, biodiversity and heritage interests into the government’s 30 Year Plan for Greater Adelaide and Regional Land Use projects.

In 2009-10, an Amendment Bill will be prepared for the National Parks and Wildlife Act 1972 and a Protected Areas Strategy for South Australia developed. The proposed legal and policy framework for protected areas on private land will include discussions with landholders and non-government organisations.

The reserve classification system and management planning reviews will be introduced, and management plans adopted for Bimbowrie Conservation Park, Ediacara Conservation Park, Hallett Cove and Marino Conservation Parks, Lake St Clair Conservation Park, Island Parks of Eastern Eyre Peninsula, and Mamungari Conservation Park.

DEH’s cultural awareness program is ongoing and includes liaising with Aboriginal communities about management and fire planning, wildlife plans and publications and signs. The department will work with the Yandruwandha Yawarrawarrka people to establish a co-management board and undertake the joint management functions over the Coongie Lakes National Park.

The department aims to improve environmental policies relevant to the Environment Protection and Biodiversity Conservation Act 1999 (Commonwealth). This is part of the Council of Australian Government’s ongoing regulatory reform program, outlined in the National Partnership Agreement to Deliver a Seamless National Economy.



2008-09 Target

2007-08 Actual

Environmental associations represented in the protected area system of South Australia (National Parks and Wildlife Act 1972, Wilderness Act 1992, Crown Lands Act 1929)

59% 57% 59% 57%

Parks/reserves covered by management plans 208(a) 200 216 189

Volunteer days spent on land management projects in parks each year

21 000(b)

20 000 20 000 16 465

Footnotes (a) This will be met by additional plans for those reserves currently without plans: Bimbowrie Conservation Park, Ediacara

Conservation Park, Lake St Clair Conservation Park and Island Parks of Eastern Eyre Peninsula (including five conservation parks).

(b) Volunteer days are calculated based on a 7.5 hr day to bring in line with Volunteering Australia standards.

11.17


Program information

Program 5: Coast and Marine Conservation

Description/Objective: Ensuring the conservation, protection and ongoing sustainable productivity of South Australia’s coastal, estuarine and marine environments.


Program 5: Coast and Marine Conservation

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 5 511 5 814 5 054 5 192 Supplies and services........................................ 3 626 6 862 11 592 5 084 Grants and subsidies ......................................... 522 402 436 375 Depreciation and amortisation .......................... 253 242 244 253 Other................................................................. 104 193 101 —

Total expenses 10 016 13 513 17 427 10 904

Income Sale of goods and services................................ — — — 12 Commonwealth revenue ................................... 71 1 109 138 145 Other................................................................. 189 517 120 790

Total income 260 1 626 258 947


11.18


Program: 5 Coast and Marine Conservation

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary In 2008-09, 19 marine parks were proclaimed and a consultation process, including information sessions and displays, attracted more than 4800 people. A call for nominations for marine parks local advisory groups was advertised and extended until July 2009. Pilot Working Groups were established for Marine Parks 1, 2, 6, 18 and 19 to advise the Minister on outer boundaries.

Environmental capability guidelines for the state’s eight marine bioregions were prepared and in-shore marine habitats mapped in waters around Adelaide and the Mount Lofty Ranges, Yorke Peninsula, Eyre Peninsula and in the South East.

Construction began on the Semaphore South Breakwater for sand management. It is due for completion mid-2009. Tender documents were prepared for sand-transfer infrastructure for the Adelaide Living Beaches project and a Public Works Committee report submitted. Work continued with the Department of Planning and Local Government and local councils on coastal development policy. The Coast Protection Board, supported by DEH, advised government on new sea level rise policies and began consulting with interested groups. Advice was given about the potential for wave power as a viable energy resource in South Australia, mining infrastructure proposals on Eyre Peninsula, and the effects of sea level rise on the Coorong and Lower Lakes.

During 2009-10, communities and local advisory groups will be engaged to advise on the use of coastal waters to inform the development of draft management plans, with zoning, for marine parks. Draft regulations for the marine parks to address displaced commercial fishing effort, uses and activities, will be finalised.

Policy development for the implementation of the Living Coast Strategy for South Australia will continue. The Coast Protection Board and DEH will pursue updating the state’s planning policies to incorporate revised sea level rise allowances.

DEH will evaluate coast protection district monitoring surveys and coastal management strategies.



2008-09 Target

2007-08 Actual

No. of marine parks 20 20 20 1(a)

State’s waters covered by Environmental Capability Guidelines

100% 100% 100% —

Vulnerable areas along the metropolitan coast that meet the dune buffer standard (ie twice that required to withstand a 1-in-100 year storm)

100% 100% 100% 100%

Coast Protection Board advice on development applications accepted by planning authorities

100% 85%(b) 100% 92%(b)

Footnotes (a) The Great Australian Bight Marine Park was established in the 1990s by the South Australian and Commonwealth Governments.

The South Australian waters component is managed under the Fisheries Management Act 2007 and the National Parks and Wildlife Act 1972. The Commonwealth waters component is managed under the Environment Protection and Biodiversity Conservation Act 1999.

(b) In some cases, the planning authorities disregarded board advice.

11.19


Program information

Program 6: Botanic Gardens Management

Description/Objective: Managing the natural and cultural resources of the Botanic Gardens and State Herbarium to advance plant appreciation, knowledge and conservation through our natural and cultural collections and programs.


Program 6: Botanic Gardens Management

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000


Total expenses 5 833 6 301 5 762 7 042

Income Sale of goods and services................................ — — — 1 Commonwealth revenue ................................... 51 93 — — Other................................................................. 599 2 090 1 977 2 181

Total income 650 2 183 1 977 2 182


11.20


Program: 6 Botanic Gardens Management

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The refurbishment of the Museum of Economic Botany and a redevelopment of Botanic Park staged with the Royal Adelaide Zoo were highlights of the Botanic Gardens and State Herbarium’s (BG&SH) strategic work in 2008-09. A ‘Harvest’ exhibition celebrated the Museum’s reopening after renovations made possible through Commonwealth funding.

In collaboration with the United Kingdom’s Millennium Seed Bank (MSB), the Botanic Gardens Seed Conservation program continued to focus on the collection, long-term storage and seed biology research of South Australian plant species. In December 2008, the Seed Conservation program became the first international MSB partner to achieve its collection targets — almost 12 months ahead of schedule.

Progress towards water sustainability and demonstrations of efficient and appropriate water use continues through upgrading the Adelaide Botanic Garden water application infrastructure, 75 per cent of which has been completed.

The Sustainable Landscapes project worked with government and industry partners to demonstrate suitable landscaping practices for the South Australian environment. Support from the Local Government Association enabled development of the online Landscapes Alive Plant Selector tool, which helps select water efficient plants for parks and gardens.

Significant progress has been made to data capture nearly 700 000 herbarium specimens in the national web accessible database, Australia’s Virtual Herbarium.

In 2009-10, the BG&SH will continue to investigate alternative water sources for the Botanic Gardens, including the Glenelg Adelaide Pipeline.

A tree planting and replacement program will preserve the mature tree canopy of the gardens, and the use of suitable native plant species in urban gardens and landscapes will be highlighted through a native garden demonstration in Adelaide Botanic Garden. A Catalogue of Plants will be published, listing all living plants in Botanic Gardens collections.

Development of the new western entrance to the Adelaide Botanic Garden is to continue with Adelaide City Council’s redeveloped Frome Road Parklands. Work will also continue on the Garden of Health, near the western entrance. Seven major cultural events will be staged in the gardens.

In collaboration with a range of partners, a new kitchen garden and interpretive program to support community health and education programs will be developed.

The BG&SH’s efforts in managing biodiversity and increasing public understanding of the impacts of climate change will proceed, largely through seed research of threatened and priority native plants species, and documentation of flowering time change from herbarium specimens.

Through collaboration with the University of Adelaide and national and international partners, the State Herbarium will contribute to the international DNA Barcode of Life program.

Ex situ conservation and collection of priority South Australian plant species will continue. Work will also proceed on a new publication of the Flora of South Australia, which lists and describes native and introduced plant species in South Australia.



2008-09 Target

2007-08 Actual

No. of visits to the Botanic Gardens 1 805 000 1 800 000 1 890 000 1 802 000

No. of major cultural events 7(a) 9(b) 7 10

Satisfaction with facilities 97% 97%(c) 97% 95%

Footnotes (a) WOMAdelaide, Moonlight Cinema, Park Life, Fringe Festival, SALA Festival, Tasting Australia, Three Red Letters

(b) WOMAdelaide, Moonlight Cinema, Park Life, Fringe Festival, SALA Festival, Botanic Gardens of Adelaide Garden Party, Blackwood Lions Jazz Festival, ASO Alfresco — Adelaide, National Rose Trail Public Judging.

(c) Botanic Gardens 2008-09 Visitor Perception Survey results expected in June 2009.

11.21


Program information

Program 7: Heritage Conservation

Description/Objective: Ensuring the state’s built and maritime heritage and heritage objects are identified, protected, conserved, maintained and celebrated.


Program 7: Heritage Conservation 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 1 827 1 853 1 682 1 736 Supplies and services........................................ 856 1 213 865 1 240 Grants and subsidies ......................................... 516 397 1 110 593 Depreciation and amortisation .......................... 166 159 219 167 Other................................................................. 13 25 19 184

Total expenses 3 378 3 647 3 895 3 920

Income Sale of goods and services................................ 404 405 726 806 Fees, fines and penalties ................................... 13 14 8 6 Commonwealth revenue ................................... — — — 63 Other................................................................. 1 1 — 23

Total income 418 420 734 898


11.22


Program: 7 Heritage Conservation

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary Public access to mapping and new data for State Heritage Places was provided through the South Australian Heritage Places database, released on the Planning in SA website. A Stage 1 Scoping Study was completed for initiatives that will lead to reduced ‘red tape’ in development applications relating to State Heritage Places.

Major activity during 2008-09 included expansion of the Heritage Advisory Service network to include:

• the City of Holdfast Bay; • investment of $200 000 for maintenance and conservation of heritage sites in parks and gardens; • $250 000 from the SA Heritage Fund allocated to more than 40 heritage related conservation projects across the state; and • $120 000 provided to identify and support the conservation of local heritage places.

The 2008-09 Interpreting Heritage Places schools’ heritage competition attracted 53 entries from students who highlighted historical and heritage aspects of their local communities. More than 330 events during SA History Week connected communities and celebrated cultural heritage, while $10 000 in annual funding for the DEH SA Built Heritage Research Fellowship at UniSA was committed to academic research into the state’s built heritage.

A Heritage Directions commitment was honoured with the survey of 20th century heritage in the period 1928–45. Updated Maintenance and Repair of Older Buildings in SA and Rising Damp and Salt Attack technical guides were published.

Throughout 2009-10 the Heritage Conservation Program will support the SA Heritage Council as it advises the government on mid-term refinement of Heritage Directions.

A Heritage Heroes initiative will recognise volunteers in the state’s heritage related organisations.



2008-09 Target

2007-08 Actual

% of development application comments accepted by Council (ie not referred to Development Assessment Commission)

98% 100% 98% 99.8%

11.23


Program information

Program 8: Animal Welfare

Description/Objective: Ensuring animals are treated humanely and companion animals are managed appropriately.


Program 8: Animal Welfare 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 162 170 263 188 Supplies and services........................................ 31 31 32 26 Grants and subsidies ......................................... 660 660 660 503 Depreciation and amortisation .......................... 39 37 46 39 Other................................................................. — 1 — —

Total expenses 892 899 1 001 756

Income Fees, fines and penalties ................................... — — — 3

Total income — — — 3

Net cost of providing services 892 899 1 001 753

11.24


Program: 8 Animal Welfare

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of program $892 000 $899 000 $1 001 000 $753 000

Performance Commentary The Animal Welfare Act 1985 came into effect on 4 October 2008, following the passage of the Prevention of Cruelty to Animals (Animal Welfare) Amendment Bill through Parliament. DEH has supported implementation of the amended Act, through authorisation and training of inspectors, the establishment of an expiation system for some breaches of the Act and regulations and administrative arrangements. This process will be completed by October 2009. Funding to the RSPCA increased to $660 000 a year, enabling the society to enforce the revised legislation.

A higher than expected number of dog attacks in 2006-07 led to intensive analysis of attack data, revealing that those most at risk are the very young. As a result, the Dog and Cat Management Board in 2008-09 launched “We are Family”, a program aimed at preparing homes and family pets for the arrival of new babies.

Impact assessments on cat management and mandatory permanent identification of companion animals were released for public comment and the board will undertake more research in 2009-10 to identify issues of concern.

The board entered into a memorandum of understanding with the Local Government Association to ensure better communication and coordination between the two agencies, and developed a strategic plan to guide its work for the next three to five years.

National initiatives will be the primary focus of the Animal Welfare Program in 2009-10. Pig regulations will come into effect, meeting South Australia’s obligation to regulate the pig industry in a nationally approved manner. The national Livestock Transport Standards will be finalised and should be regulated by all jurisdictions by the end of 2009-10.

DEH will contribute to the review of the 7th edition of the Australian Code of Practice for the Use of Animals for Scientific Purposes. National standards for keeping animals in zoos and wildlife parks, feral animal control techniques and horse management are also being developed. A review of the Sheep and Cattle Codes aims to develop national standards to be applied consistently in legislation across Australia.

The external reviews of Animal Ethics Committees will continue in 2009-10, aiming for improvements in the treatment of animals in research and teaching.

Council officer training will be a Dog and Cat Management Board focus. A basic training program will be developed and introduced for all animal management officers across the state. The ‘We are Family’ program will be made available to all South Australian baby hospitals, neonatal program providers and immunisation clinics. The dog safety program, which is provided to 20 000 junior primary students each year, will be reviewed to ensure it is cost effective and aligned with ‘We are Family’. Working with the RSPCA and Animal Welfare League, the board will attempt to discern the reasons dogs and cats are surrendered to animal shelters and then determine how to reduce the number of unwanted companion animals.



2008-09 Target

2007-08 Actual

No. of complaints about ill treatment, which require action by RSPCA

3 000 2 875 3 300 3 289

11.25


Program information

Program 9: Agency Support Services

Description/Objective: The provision of business support services to the various operational units within the Department for Environment and Heritage, the Environment Protection Authority, Zero Waste SA and other related boards and committees. These services include the provision and management of information to support the state’s environmental needs, human resource management, payroll, financial management, IT infrastructure, IT Helpdesk support, facilities management, project management, asset management, administrative support, business planning, governance, government business, executive support, public affairs, procurement and environmental policy advice.


Program 9: Agency Support Services 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 15 080 16 152 26 284 25 300 Supplies and services........................................ 12 962 11 973 13 389 18 725 Grants and subsidies ......................................... 311 572 498 196 Depreciation and amortisation .......................... 281 268 1 140 979 Other................................................................. 917 1 498 301 24 168

Total expenses 29 551 30 463 41 612 69 368

Income Sale of goods and services................................ 97 96 839 2 411 Fees, fines and penalties ................................... 25 8 — — Commonwealth revenue ................................... — — — 150 Other................................................................. 2 624 2 653 2 996 2 870

Total income 2 746 2 757 3 835 5 431


11.26


Program: 9 Agency Support Services

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of program $26 805 000 $27 706 000(a) $37 777 000 $63 937 000(b)

Performance Commentary The Agency Support Services program supports the effective and efficient delivery of DEH’s 10 programs.

Footnotes (a) The variation between the 2008-09 Budget and the 2008-09 Estimated Result is primarily due to the Agency Support Services

program being split into two programs post the 2008-09 Budget. The other program is Knowledge and Information (Program 11).

(b) The variation between the 2007-08 Actual result and the 2008-09 Budget is primarily due to a once off payment to the Consolidated Account from the Accrual Appropriation Excess Funds Account in 2007-08, relating to an adjustment for amended depreciation expense being applied against the asset base ($18.8 million).

11.27


Program information

Program 10: Adaptive Management of the Lower Lakes and Coorong

Description/Objective: Securing the long-term future of the Coorong, Lower Lakes and Murray Mouth as a healthy, productive and resilient wetland system that maintains its international importance.


Program 10: Adaptive Management of the Lower Lakes and Coorong

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 1 175 1 297 — — Supplies and services........................................ 5 825 2 703 — —

Total expenses 7 000 4 000 — —

Income Other................................................................. 7 000 4 000 — —

Total income 7 000 4 000 — —

Net cost of providing services — — — —

11.28


Program: 10 Adaptive Management of the Lower Lakes and Coorong

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of program $— $— $— $—

Performance Commentary The Commonwealth Government has allocated significant funds through the Murray Futures program for projects to secure the future of the River Murray. DEH is coordinating the Coorong, Lower Lakes and Murray Mouth (CLLMM) project cluster, covering a geographical area stretching between Lock 1 and the Murray Mouth.

In 2008-09, work on the project focused on the development of Directions for a Healthy Future, assessment of options to assist in managing the area in the future, and scientific research and community consultation to identify preferred options. Directions for a Healthy Future outlines possible action to sustain the Coorong, Lower Lakes and Murray Mouth. The final plan, including community input, will be complete by the end of 2009. A business case explaining necessary action to secure the region’s future is being developed with the final plan.

A funding deed through which the Commonwealth Government will provide $10 million and the state government will provide $1 million for DEH to project manage community based bioremediation and revegetation of the Lower Lakes has been developed.

Work will begin in 2009-10 on implementing an adaptive management regime to secure the region’s ecological character and build resilience within the system over the next six years. This aims to enable the area to adapt to greater climatic variability.

Communication and community engagement are significant focus areas and will continue in 2009-10.

Performance indicators will be developed with the Commonwealth and key partners.

11.29


Program information

Program 11: Knowledge and Information

Description/Objective: Building an innovative and sustainable knowledge and information capacity through research, analysis, monitoring and coordination of information, science and technological business activities in collaboration with the Department for Environment and Heritage programs, partner organisations and the community.


Program 10: Knowledge and Information 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 9 391 9 709 — — Supplies and services........................................ 6 949 6 873 — — Grants and subsidies ......................................... — — — — Depreciation and amortisation .......................... 693 662 — — Other................................................................. 107 200 — —

Total expenses 17 140 17 444 — —

Income Sale of goods and services................................ 1 157 1 135 — — Fees, fines and penalties ................................... — — — — Commonwealth revenue ................................... 229 421 — — Other................................................................. 42 16 — —

Total income 1 428 1 572 — —

Net cost of providing services 15 712 15 872 — —

11.30


Program: 11 Knowledge and Information

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of program $15 712 000 $15 872 000(a) $— $—

Performance Commentary Knowledge and Information is a new program setting a strategic direction for the department’s effective use of information, science and technology. It builds DEH business knowledge with the support of appropriate and cost effective technology.

Key strategic objectives for 2009-10 will include the implementation of the Vision 2012 report to achieve major reforms in the delivery of science and information services. The first stage of the Enterprise Business Information Strategy will be developed to improve the maintenance and accessibility of data and information resources across DEH business areas.

This is a new program as identified in the department’s changes to the program structure. Performance indicators will be developed.

Footnotes (a) The new Knowledge and Information program was separated from the Agency Support Services program post the 2008-09 Budget.

11.31

DEPARTMENT FOR ENVIRONMENT AND HERITAGE


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 63 404 69 638 64 768 62 961 Long service leave .................................................................... 2 590 2 589 2 384 2 040 Payroll tax ................................................................................ 3 711 4 072 3 796 3 764 Superannuation ......................................................................... 6 884 7 588 7 038 7 117 Other ......................................................................................... 2 066 2 355 2 128 3 151Supplies and services — General supplies and services .................................................. 57 453 59 294 51 070 52 452 Consultancy expenses .............................................................. 212 207 207 195Depreciation and amortisation expenses ...................................... 22 815 21 769 25 723 22 848Borrowing costs ............................................................................ — — — 22Grants and subsidies ..................................................................... 2 287 3 199 6 262 3 691Intra government transfers ........................................................... 517 755 2 567Other expenses ............................................................................. 1 073 1 989 887 26 008

Total expenses 163 012 173 455 164 265 184 816

Income

Commonwealth revenues ............................................................. 3 897 8 457 9 719 1 617Intra government transfers ........................................................... 11 064 11 010 5 473 13 215Other grants .................................................................................. 1 416 1 635 1 407 518Fees, fines and penalties ............................................................... 676 666 470 747Sales of goods and services .......................................................... 16 366 15 908 9 642 16 283Interest revenues ........................................................................... 122 153 55 188Net gain or loss from disposal of assets ....................................... — — — -651Resources received free of charge ................................................ — — — 32Other income ................................................................................ 586 786 1 540 5 702

Total income 34 127 38 615 28 306 37 651



Income — Appropriation ........................................................................... 128 885 131 967 134 416 129 445 Other income ............................................................................ — 250 — 60Expenses — Cash alignment ......................................................................... — 6 350 — 6 100


Net result — -8 973 -1 543 -23 760

11.32


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 96 088 96 436 101 891 100 565Receivables ................................................................................... 6 359 6 359 6 850 6 359Inventories .................................................................................... 1 394 1 394 1 392 1 394Other current assets ...................................................................... 421 421 629 421


Non current assetsFinancial assets ............................................................................. 8 8 8 8Land and improvements ............................................................... 258 593 259 558 252 575 255 246Plant and equipment ..................................................................... 39 770 36 425 36 051 42 993Heritage assets .............................................................................. 1 586 1 586 1 339 1 586Intangible assets ........................................................................... 1 275 1 520 1 504 1 765Other non-current assets ............................................................... 13 13 951 950


Total assets 405 507 403 720 403 190 411 287

Liabilities

Current liabilitiesPayables ........................................................................................ 16 414 16 414 16 893 16 429Short-term borrowings ................................................................. 41 41 — 41Employee benefits — Salaries and wages ................................................................... 1 510 1 510 1 193 1 514 Annual leave ............................................................................. 5 054 5 000 4 979 4 981 Long service leave .................................................................... 1 192 1 103 935 1 106Short-term provisions ................................................................... 436 430 369 421Other current liabilities ................................................................. 538 538 608 538


Non current liabilitiesLong-term employee benefits — Long service leave .................................................................... 17 351 15 770 16 359 14 421Long-term provisions ................................................................... 1 196 1 139 971 1 088Other non-current liabilities ......................................................... 1 989 1 989 2 303 1 989



Net assets 359 786 359 786 358 580 368 759

Equity

Retained earnings ......................................................................... 189 304 189 304 192 919 198 277Asset revaluation reserve ............................................................. 170 482 170 482 165 661 170 482

Total equity 359 786 359 786 358 580 368 759


11.33



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... 76 931 84 735 78 562 77 638Payments for supplies and services .............................................. 57 665 59 501 51 277 54 049Interest paid .................................................................................. — — — 246Grants and subsidies ..................................................................... 2 287 3 199 6 262 3 691GST paid ...................................................................................... — — — 8 849Intra government transfers ........................................................... 517 755 2 567Other payments ............................................................................ 1 010 992 847 19 887


Cash inflowsIntra government transfers ........................................................... 11 064 11 010 5 473 13 215Commonwealth receipts ............................................................... 3 897 8 457 9 719 1 617Other grants .................................................................................. 1 416 1 635 1 407 518Fees, fines and penalties ............................................................... 676 666 470 747Sales of goods and services .......................................................... 16 366 15 908 9 642 16 465Interest received ........................................................................... 122 153 55 187GST received ................................................................................ — — — 8 460Other receipts ............................................................................... 586 786 1 540 5 702


SA GOVERNMENT:

Appropriation ............................................................................... 128 885 131 967 134 416 129 445Other receipts ............................................................................... — 250 — 60Payments — Cash alignment ......................................................................... — 6 350 — 6 100


Net cash provided by (+) / used (-) in operating activities 24 602 15 300 25 772 5 389


Cash outflowsPurchase of property, plant and equipment .................................. 24 950 19 268 15 664 12 265

Cash used in investing activities 24 950 19 268 15 664 12 265



Net cash provided by (+) / used in (-) investing activities -24 950 -19 268 -15 664 -12 113

11.34



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsRepayment of borrowings ............................................................ — — — 38 054

Cash used in financing activities — — — 38 054

Cash inflowsProceeds from restructuring activities .......................................... — -161 — —

Cash generated from financing activities — -161 — —

Net cash provided by (+) / used in (-) financing activities — -161 — -38 054

Net increase (+) / decrease (-) in cash equivalents -348 -4 129 10 108 -44 778



11.35

ADMINISTERED ITEMS FOR THE DEPARTMENT FOR ENVIRONMENT AND HERITAGE


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Income from SA Government

Income — Appropriation ........................................................................... 5 275 5 144 5 144 23 993


Income from other sources

Intra government transfers ........................................................... — — — 95Other grants .................................................................................. 89 89 1 462 10Fees, fines and penalties ............................................................... 1 122 1 127 1 108 1 146Sales of goods and services .......................................................... 558 543 548 878Interest revenues ........................................................................... 71 71 71 218Net gain or loss from disposal of assets ....................................... — — — 9 726Resources received free of charge ................................................ — 937 — 4 279Other income ................................................................................ 209 1 582 209 1 422

Total income from other sources 2 049 4 349 3 398 17 774

Total income 7 324 9 493 8 542 41 767

Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 291 285 285 234 Long service leave .................................................................... — — — 1 Payroll tax ................................................................................ 1 1 1 4 Superannuation ......................................................................... 1 1 1 6 Other ......................................................................................... — — — 102Supplies and services — General supplies and services .................................................. 1 231 2 677 1 233 2 457Depreciation and amortisation expenses ...................................... 2 163 2 129 2 524 2 782Grants and subsidies ..................................................................... 5 209 4 917 5 071 26 168Intra government transfers ........................................................... 580 1 953 1 953 — Other expenses ............................................................................. 96 10 468 5 398 13 008

Total expenses 9 572 22 431 16 466 44 762

Net result -2 248 -12 938 -7 924 -2 995

11.36


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 10 535 10 524 13 250 8 704Receivables ................................................................................... 487 487 756 487Inventories .................................................................................... 149 149 159 149Other current assets ...................................................................... 50 50 — 50


Non current assetsLand and improvements ............................................................... 71 855 73 861 59 880 75 942Plant and equipment ..................................................................... 878 1 131 1 584 1 384Heritage assets .............................................................................. 5 226 5 226 5 249 5 226


Total assets 89 180 91 428 80 878 91 942

Liabilities

Current liabilitiesPayables ........................................................................................ 791 791 1 175 791Short-term borrowings ................................................................. 1 309 1 309 1 822 1 309Employee benefits — Salaries and wages ................................................................... — — 7 — Other current liabilities ................................................................. 76 76 329 76



Net assets 87 004 89 252 77 545 89 766

Equity


Total equity 87 004 89 252 77 545 89 766


11.37



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash inflowsIntra government transfers ........................................................... — — — 95Other grants .................................................................................. 89 89 1 462 10Fees, fines and penalties ............................................................... 1 122 1 127 1 108 1 073Sales of goods and services .......................................................... 558 543 548 457Interest received ........................................................................... 71 71 71 210Other receipts ............................................................................... 209 1 582 209 1 422


Cash outflowsEmployee benefit payments ......................................................... 293 287 287 362Payments for supplies and services .............................................. 1 231 2 677 1 233 2 949Grants and subsidies ..................................................................... 5 209 4 917 5 071 26 080Intra government transfers ........................................................... 580 1 953 1 953 — Other payments ............................................................................ 96 10 468 5 398 13 002


SA GOVERNMENT:

Appropriation ............................................................................... 5 275 5 144 5 144 23 993


Net cash provided by (+) / used in (-) operating activities -85 -11 746 -5 400 -15 133


Cash inflowsProceeds from sale of property, plant and equipment .................. 96 13 566 5 398 10 880

Cash generated from investing activities 96 13 566 5 398 10 880

Cash outflowsPurchase of property, plant and equipment .................................. — — — 23

Cash used in investing activities — — — 23

Net cash provided by (+) / used in (-) investing activities 96 13 566 5 398 10 857

Net increase (+) / decrease (-) in cash equivalents 11 1 820 -2 -4 276



11.38



Basis of accounting

The department has undertaken a review of its program structure and have identified two new programs effective 1 July 2008, namely, Adaptive Management of the Lower Lakes and Coorong and Knowledge and Information, the latter was formerly incorporated within the Agency Support Program.



Expenditure

The $10.4 million decrease in expenditure between 2008-09 Estimated Result and 2009-10 Budget is primarily as a result of the following:

• once-off expenditure in 2008-09 as a result of carryovers from 2007-08 ($5.4 million);

• once-off expenditure in 2008-09, primarily funded by revenues from Commonwealth and other government bodies ($4.6 million);

• a decrease in expenditure due to FTE savings implemented by the department from 2009-10 as announced in the 2008-09 Mid-Year Budget Review ($2.1 million); and

• an increase in expenditure in 2008-09 relating to water security and drought activities in the River Murray ($1.5 million).

Offset by:

• an increase in expenditure in 2009-10 related to Lower Lakes and Coorong feasibility study ($3.0 million).

Revenue

The decrease in revenue of $4.4 million between 2008-09 Estimated Result and 2009-10 Budget is primarily a result of once-off revenue recognised in 2008-09 from the Commonwealth and other government bodies for various projects.


No major variations.

11.39


The commentary regarding the income statement above provides information regarding the major variations for the cash movement from operating activities. The increase in investing payments in 2009-10 is due primarily to the construction of the sand transfer infrastructure for the Adelaide Living Beaches Strategy.

Income statement — administered items

Expenditure

The $12.9 million decrease in expenditure between the 2008-09 Estimated Result and the 2009-10 Budget is primarily a result of the following:

• payments to Consolidated Account in 2008-09 relating to the sale of surplus Crown lands ($10.2 million) and the proceeds of freeholding through the Perpetual Lease Accelerated Freeholding (PLAF) Project ($398 000); and

• once-off expenditure in 2008-09 for a grant contribution for specific developmental works at the Botanic Gardens; namely the Museum of Economic Botany ($945 000) and Western Entrance ($428 000) projects.

Revenue

The $2.3 million decrease in revenue between the 2008-09 Estimated Result and the 2009-10 Budget is primarily a result of the following:

• once-off revenue received in 2008-09 from Gardens 150 Foundation into the Board of the Botanic Gardens and State Herbarium for specific developmental works at the Botanic Gardens ($1.4 million); and

• transfer of Land Held for Resale from DEH Controlled to Crown lands ($937 000).

Balance sheet — administered items

The net decline in non-current assets between the 2008-09 Estimated Result and the 2009-10 Budget is primarily a result of the annual depreciation of assets ($2.1 million).

Other current assets and current and non-current liabilities are expected to remain broadly consistent.

Cash flow statement — administered items

The major variations described in the income statement also influence the cash flow statement.

The $13.5 million decrease in investing receipts between the 2008-09 Estimated Result and the 2009-10 Budget is primarily due to the sale of Crown lands in 2008-09.

Additional information for administered items

Detailed information on administered items is included in the following table.

11.40

Additional Information for Administered Items Department of Environment and Heritage

Cash flow statement

2009-10Budget

2008-09Estimated

result

2008-09 Budget

2007-08Actual

$000 $000 $000 $000

CASH FLOWS FROM: Operating activities Cash inflows Intra-government transfers —

Botanic Gardens and State Herbarium Board ............................ — — — 95Grants —

Dog and Cat Management Board............................................... — — — 5Coast Protection Fund................................................................ — — — 3Botanic Gardens and State Herbarium Board ............................ 89 89 1 462 2

Sales of goods and services — Botanic Gardens and State Herbarium Board ............................ 531 508 508 742Coast Protection Fund................................................................ 27 25 40 —Surplus Land and Property Sales Account ................................. — 10 — -285

Fees, Fines and Penalties — Botanic Gardens and State Herbarium Board ............................ 47 44 34 20Dog and Cat Management Board............................................... 1 075 1 083 1 074 1 053

Interest — Botanic Gardens and State Herbarium Board ............................ 50 50 50 171Dog and Cat Management Board............................................... 21 21 21 39

State Government — Appropriation — Coast Protection Fund................................................................ 565 479 479 476Royal Zoological Society of SA Inc .......................................... 3 126 3 126 3 126 22 026War Concessions........................................................................ 8 8 8 4Intra-sector Grants Received...................................................... 261 255 255 251Adelaide City Council Parklands ............................................... 1 315 1 276 1 276 1 236

Other — Botanic Gardens and State Herbarium Board ............................ 209 1 582 209 1 422


Cash outflows Employee payments —

Botanic Gardens and State Herbarium Board ............................ 32 32 32 82Parliamentary Salaries and Electorate and Expense Allowance. 261 255 255 250Dog and Cat Management Board............................................... — — — 19Coast Protection Fund................................................................ — — — 11

11.41

Additional Information for Administered Items Department of Environment and Heritage

Cash flow statement

2009-10Budget

2008-09Estimated

result

2008-09 Budget

2007-08Actual

$000 $000 $000 $000

Supplies and services — Botanic Gardens and State Herbarium Board ............................ 288 418 280 230Coast Protection Fund................................................................ 65 97 79 86Dog and Cat Management Board............................................... 870 1 152 870 799Surplus Land and Property Sales Account ................................. — 1 002 — 1 830War Concessions........................................................................ 8 8 4 4

Grants and subsidies —

Botanic Gardens and State Herbarium Board ............................ 595 1 953 1 953 2 226Coast Protection Fund................................................................ 527 407 440 285Dog and Cat Management Board............................................... 226 108 225 175Royal Zoological Society of SA Inc .......................................... 3 126 3 126 3 126 22 026War Concessions........................................................................ — — 4 —Adelaide City Council Parklands ............................................... 1 315 1 276 1 276 1 236

Other — Surplus Land and Property Sales Account ................................. 96 10 468 5 398 13 002


Net cash provided by (+) / used in (-) operating activities -85 -11 746 -5 400 -15 133 Investing activities Cash inflows

Surplus Land and Property Sales Account ................................. 96 13 566 5 398 10 880


Cash outflows

Botanic Gardens and State Herbarium Board ............................ — — — 23

Cash investing used in activities — 23

Net cash provided by (+) / used in (-) investing activities 96 13 566 5 398 10 857

Net increase (+) / decrease (-) in cash equivalents 11 1 820 -2 -4 276

Opening cash balance as at 1 July 10 524 8 704 13 252 12 980

Closing cash balance as at 30 June 10 535 10 524 13 250 8 704

11.42

TABLE OF CONTENTS

AGENCY: DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Objective ......................................................................................................................................... 11.45





1. Natural Resources Management .................................................................................... 11.48

2. Natural Resources Management (River Murray)........................................................... 11.52

3. Water Security ............................................................................................................... 11.54



Balance sheet......................................................................................................................... 11.59







11.44



Objective

Natural resources used sustainably to enhance quality of life.



Program 1 — Natural Resources Management

• Continue to implement plans for achieving South Australia’s Strategic Plan targets: − T3.3 ‘Soil protection’ − T3.9 ‘Sustainable water supply’

• Further develop the monitoring and reporting of the state’s groundwater resources

• Implement the Code of Practice for the management of native vegetation to reduce the impact of bushfire

• Adopt various water allocation plans and complete amendments to relevant existing plans

• Complete the statutory review of the State Natural Resources Management Plan 2006 and draft the State NRM Plan 2011

• Secure and manage national and state NRM investment • Improve cooperative arrangements between NRM bodies and

Aboriginal communities • Leverage the NRM Research Alliance to improve the quantity

and quality of research proposals and capability in South Australia

Program 2 — Natural Resources Management (River Murray)

• Continue to implement plans for achieving South Australia’s Strategic Plan targets: − T3.10 ‘River Murray — flows’ − T3.11 ‘River Murray —salinity’

• Implement the River Murray water allocation decision framework under continuing drought conditions

• Provide technical and operational policy input for whole of government water security measures and drought response activities for government and affected communities

• Model and monitor flows, levels and salinity on the River Murray and Lower Lakes

• Complete an Adaptive Management System Plan to protect the health of wetlands and floodplains under Murray Futures’ Riverine Recovery Project

• Progress development of a National Water Market System • Develop business plans for investment in environmental

infrastructure, such as flow regulating structures at priority sites, including Pike and Katarapko

Program 1 — Natural Resources Management

• Progressed implementation of plans for achieving South Australia’s Strategic Plan targets: − T3.3 ‘Soil protection’ − T3.9 ‘Sustainable water supply’

• Finalised erosion protection targets and strategies in collaboration with various NRM regions

• Published a Code of Practice to improve the management of native vegetation to reduce the impact of bushfire

• Supported the development of Water Allocation Plans and Regional Natural Resource Management Plans

• Implemented the Arid Lands Information and the Natural Resources Information Management systems

• Completed the stage one tender process for the River Murray Forest and commenced tree planting on private land

• Launched the NRM Research Alliance

Program 2 — Natural Resources Management (River Murray)

• Progressed implementation of plans for achieving South Australia’s Strategic Plan targets:

− T3.10 ‘River Murray —flows’ − T3.11 ‘River Murray — salinity’

• Acquired 35GL of water as its contribution to the Living Murray First Step water recovery target

• Continued to implement The Living Murray Environmental Management Plans for icon sites in South Australia

• Provided significant input and leadership through South Australia’s River Murray Environmental Manager in securing additional environmental flows from the River Murray

• Directed 2.5GL of environmental water to 14 sites through The Living Murray and 995 megalitres to eight sites through the Commonwealth Environmental Water Holder

• Achieved referral of constitutional powers from the state to the Commonwealth and associated legislative change to enable the establishment of the Murray–Darling Basin Authority (MDBA)

• Implemented the government’s water allocation framework under drought conditions, and led the government’s community drought response

11.45


• Provide input into development of the Basin Plan and improved water sharing arrangements under the Murray–Darling Basin Agreement

• Implement the separation of water rights for the River Murray prescribed watercourse

• Maintain the Lower Murray embankments to preserve the river channel and prevent flooding of adjacent farming

• Adopt the Eastern Mount Lofty Ranges Water Allocation Plan • Undertake a comprehensive review of the environmental flows

strategy and recommend future strategies and policies

Program 3 — Water Security

• Implement the State Water Security Plan • Coordinate and implement the Murray Futures Projects • Progress reform and project milestones for National Water

Initiative and COAG • Monitor and evaluate ongoing water security issues • Complete all NWI related projects funded under the

Commonwealth Government Water Fund by June 2010 • Secure 201GL of water for critical human needs for 2010-11 • Develop new stormwater harvesting and reuse projects in

conjunction with local government and other partners

• Provided critical water allocations to River Murray licensed irrigators for permanent plantings

• Commenced construction of the Murtho Salt Interception Scheme

• Finalised the detailed survey to establish Noora as a sustainable salt interception management basin

• Commenced separation of water rights for the River Murray Prescribed Watercourse

• Completed triennial review of the River Murray Act 2003 • Expanded the network of water monitoring stations • Completed rehabilitation works for the Lower Murray

Reclaimed Irrigation Area • Continued to refine administrative arrangements to facilitate

interstate water trade in South Australia • Sustained the water level in Lake Albert to avoid acidification

through pumping from Lake Alexandrina • Acquired 50GL of water for the Lower Lakes

Program 3 — Water Security

• Established the Water Security Council and appointed the Water Security Commissioner

• Developed the State Water Security Plan • Secured commitment from the Commonwealth Government

for $530 million over 10 years for SA’s Murray Futures program

• Completed the potable pipeline for Lower Lakes communities as part of Murray Futures program

• Acquired 201GL of water for critical human needs for 2009-10

• Transferred the Stormwater Management Authority to the water security portfolio

• Supported Waterproofing Northern Adelaide, Metropolitan Adelaide Stormwater Reuse Project, Cheltenham Park Development and the Urban Stormwater Harvesting Options Study

11.46



2009-10Budget


2008-09 Budget

2007-08 Actual

Program $000 $000 $000 $000 1. Natural Resources Management ................. 46 598 49 398 45 730 36 205 2. Natural Resources Management

(River Murray) ...........................................42 248 116 023 73 581 30 930

3. Water Security............................................ -3 688 2 396 2 077 897

Total 85 158 167 817 121 388 68 032


2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

New works

Replacement and Refurbishment of Water Monitoring Equipment.....................

4 322 — — —

Total new works 4 322 — — —

Works in progress

Goolwa Channel Water level Management Project...................................

16 775 4 225 — —

Budget Management Information System........................................................

— 300 300 —

Murray Bridge Flora Research Site ............ — 49 — 113

Total works in progress 16 775 4 574 300 113

Annual programs

Annual Programs........................................ 766 747 747 785

Total annual programs 766 747 747 785

Other investing payments

Intangibles .................................................. — — — 574 Infrastructure .............................................. 531

Total other investing programs — — — 1 105


11.47


Program information

Program 1: Natural Resources Management

Description/Objective: Managing natural resources in South Australia, including the provision of advice and regulatory support for the government and community; and facilitating the allocation and sustainable use of natural resources.


Program 1: Natural Resources Management

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 34 909 38 646 34 978 33 855 Supplies and services........................................ 27 637 37 096 32 751 29 007 Grants and subsidies ......................................... 10 341 10 135 8 433 6 345 Depreciation and amortisation .......................... 2 356 2 356 2 356 2 384 Other................................................................. 114 111 505 55

Total expenses 75 357 88 344 79 023 71 646

Income Sale of goods and services................................ 4 949 4 801 4 112 7 151 Fees, fines and penalties ................................... 1 075 1 024 1 465 1 284 Commonwealth revenue ................................... 10 069 14 055 16 678 9 167 Other................................................................. 12 666 19 066 11 038 17 839

Total income 28 759 38 946 33 293 35 441


11.48


Sub-program: 1.1 Natural Resources Management Services

Natural Resources Management (NRM) services including: resource planning; the administration of natural resources legislation; restoration and maintenance of ecosystems; community capacity building; resource management operations, licensing and compliance; and Commonwealth-state joint programs.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The Commonwealth Government approved $19 million of Caring for our Country base regional funding and transitional funding to regional NRM boards in 2008-09.

In 2008-09, South Australia secured an additional $4.0 million from the Commonwealth Government up to June 2010 under the Landcare component of Caring for our Country. A total of 26 regional projects are to be funded over the next three years. This project funding will enable Landcare and other community and industry groups to undertake on ground actions that will improve the condition and management of natural resources.

The state government committed more than $14.3 million to the management of South Australia’s natural resources through the state Natural Resources Management (NRM) Program. Funding was allocated to 96 projects to manage watercourses and stormwater, improve farming systems, pest control and other environmental work, as well as invest in tackling the challenges posed by climate change.

Competitive proposals for the 2009-10 Caring for our Country program that best deliver the results to achieve the program’s outcomes closed on 3 April 2009. The Commonwealth Government also informed the regional NRM boards of their regional base-level funding allocation for the next four years, 2009-10 to 2012-13, totalling $17.3 million per annum in South Australia.

NRM Council formed a partnership with the Premier’s Climate Change Council and agreed to progress six areas of mutual interest including: sector agreements, adaptation, education, research and development, offsets, and new business opportunities.

The Aboriginal Statewide Advisory Committee (ASAC) facilitated a statewide forum to recognise and explore the importance of engaging Aboriginal people in managing our state’s precious natural resources.

The Water Allocation Plan for the Far North Prescribed Wells Area was adopted on 16 February 2009. Water Allocation Plans continued to be developed for the Western Mount Lofty Ranges, Eastern Mount Lofty Ranges, Central Adelaide, Peak, Roby and Sherlock, and Marne Saunders prescribed areas.

Amendments to the following Water Allocation Plans were nearing completion: Clare Valley Prescribed Water Resources Area, the Padthaway Prescribed Wells Area, and the Barossa Prescribed Water Resources Area.

The following water allocation plans were under amendment by the relevant NRM boards over 2008-09 and this will continue in 2009-10: Northern Adelaide Plains, Mallee, Tatiara, Tintinara Coonalpyn, Comaum-Caroline, Lacepede Kongorong and Naracoorte Ranges plans (note the last three are being amalgamated and are now known as the Lower Limestone Coast).

Phase one of the River Murray Forest project has been completed including pilot tendering and commissioning approximately 1000ha on private land and commencing plantings. Phase two of the project will occur over the next three years. Full project implementation is subject to seasonal conditions and drought impacts, and will be reviewed on an ongoing basis.

South Australia is progressing reforms to its water resources management arrangements under which water access entitlements and water allocations will be managed separate from land ownership and site approvals for taking and using that water. A key aspect of this reform is to unbundle rights and responsibilities currently included on a single licence to separate water management authorisations.



2008-09 Target

2007-08 Actual

Quantity

Number processed:

• water licences 5 000 5 000 6 000 5 648

• water permits 4 000 4 000 5 000 5 254

• water authorisations 250 250 250 461

• Development Act — Application referrals(a)

− mandatory 40 38 120 53

− non-mandatory 120 120 125 134

continued

11.49

Sub-program: 1.1 Natural Resources Management Services continued

Performance Indicators continued 2009-10 Target


2008-09 Target

2007-08 Actual

• Development Act — Policy referrals(a)(b) 115 104 80 80

• native vegetation clearance applications 200 242 150 181

Significant Environment Benefit Payment $1 848 955 $2 465 273(c) $200 000 $3 084 809

Quality

% of development applications processed within statutory timeframes

98% 94%(d) 98% 95%

% of native vegetation clearance applications processed within agreed timeframes(e)

95% 85% 85% 85%

Ratio of area protected from native vegetation clearance or planted against area approved for clearance(e)(f)(g)

6:1

6:1 4:1 4:1

Ratio of area to be revegetated against area of trees approved for clearance(h)(i)

10:1 11:1 10:1 10:1

Footnotes (a) The 2008-09 Estimated Result based upon YTD figure at end of March 09 quarter, divided by three and multiplied by four.

(b) Reforms to the planning system will result in reduced development applications but an increase in policy referrals.

(c) The large increase in the Significant Environmental Benefit Payment was partly in response to several large-scale mining operations that were approved.

(d) This 2008-09 Estimated Result figure of 94 per cent is as at 15 April 2009.

(e) These figures are based on an agreed timeframe of eight weeks. The eight weeks begin at the time the Native Vegetation and Biodiversity Management Unit are supplied with or obtain all of the information required for the Native Vegetation Council to make a decision and ceases at the time the applicant receives notification of decision advice.

(f) Brush cutting applications have been excluded from the statistics, as no offset is required for these applications due to the natural regeneration of brush.

(g) Figures include native vegetation clearance approved under both the Native Vegetation Act 1991 and the Native Vegetation Regulations 2003.

(h) Applies only to native vegetation clearance applications under the Native Vegetation Act 1991.

(i) Ratio represents the area of planted or managed vegetation in relation to the area of scattered trees cleared. This figure assumes that a scattered tree has an area of 0.05ha.

11.50

Sub-program: 1.2 Policy, Science and Information

Policy advice and policy development for and on behalf of the Minister for Environment and Conservation on the management of natural resources; representation of the government on state and national groups; development, monitoring and review of legislation, and legal advice; natural resource science and information services including: monitoring and assessing the condition of natural resources; resource management technology and innovation; and the provision of technical advice and information.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary In 2008-09, the trial of a voluntary process for better integrating native vegetation into the development planning system has been completed and implemented. An information sheet for developers has been published and circulated to local councils.

The Code of Practice for the management of native vegetation as it affects bushfire prevention was developed in 2008-09 by the Native Vegetation Council, Department of Water Land and Biodiversity Conservation (DWLBC), Department for Environment and Heritage and South Australian Country Fire Service, and has been published.

DWLBC has contributed through funding and ‘in kind’ support to various Cooperative Research Centres.

The Commonwealth is currently implementing recommendations from a national review of biosecurity arrangements. Implementation arrangements and plan for the biosecurity strategy will be developed in 2009-10.

DWLBC played a significant role in the preparation of the successful bid for Flinders University to host the $30 million National Centre for Groundwater Research and Training. The Centre will focus on increasing the quality and integration of research programs, enhancing the scale and focus of research to promote ecological sustainability; build capacity within the groundwater profession and encourage interaction between governments, industry and the education sector.

DWLBC secured $1.2 million from the Bureau of Meteorology’s Modernisation and Extension of Hydrologic Monitoring Systems Fund to support the acquisition of groundwater and surface water monitoring equipment and the deepening of key groundwater wells. This funding will help improve the assessment of the state’s water resources.

GIS technical support was provided to the Victorian Bushfire Recovery effort.

The Arid Lands Information System (ALIS), which supports the administration of the Pastoral Land Management and Conservation Act 1989, assist in the sustainable management of natural resources by the SA Arid Lands NRM Board and provide a public information portal for the Far North of South Australia, was completed and implemented.

The NRM Research Alliance has formed the Habitat Restoration & Sustainable Production Research Alliance cluster and is forming a Human Dimensions of NRM research cluster.

Sub-program: 1.3 Infrastructure Services

Development and delivery of infrastructure and remediation programs and commercial businesses; and management of natural resources management infrastructure assets.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program $2 446 000 $3 743 000 $1 017 000 -$2 047 000

Performance Commentary Under the Upper South East Dryland Salinity and Flood Management (USE) Program, two independent reviews were undertaken of the proposed Bald Hills drain and REFLOWS project: one assessed the risks and benefits to the environmental values of the West Avenue Watercourse posed by the changes to groundwater and surface water flows, and the other assessed community perceptions and level of understanding and support for this.

The USE Program undertook improvements to weir and flow management structures, drain regulators and ecological monitoring stations.

11.51


Program information

Program 2: Natural Resources Management (River Murray)

Description/Objective: Managing natural resources in the Murray–Darling Basin in South Australia, including the provision of advice and regulatory support for the government and community; and facilitating the allocation and sustainable use of water resources.


Program 2: Natural Resources Management (River Murray)

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 10 450 10 892 13 576 11 716 Supplies and services........................................ 9 906 14 990 15 592 15 365 Grants and subsidies ......................................... 25 199 52 862 30 078 30 997 Other................................................................. 4 597 74 001 27 267 13 643

Total expenses 50 152 152 745 86 513 71 721

Income Sale of goods and services................................ 6 318 6 111 6 688 11 826 Commonwealth revenue ................................... — — 2 117 2 194 Other................................................................. 1 586 30 611 4 127 26 771

Total income 7 904 36 722 12 932 40 791


11.52

Program 2: Performance Criteria:

Sub-program: 2.1 Natural Resources Management Services (River Murray)

Natural resources management support including: resource planning; the administration of natural resources legislation; restoration and maintenance of ecosystems; community capacity building; resource management operations, licensing and compliance; and Commonwealth-state joint programs.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program $37 131 000(a) $113 890 000 $67 395 000 $33 924 000

Performance Commentary During 2008-09, the River Murray and southern part of the Murray–Darling Basin continued to experience the worst drought in recorded history. River Murray system inflows and opening storage levels in 2008-09 were lower than 2007-08 and as a result, the total water resource position has continued to deteriorate. In addition, under the agreed water sharing arrangements for 2008-09 South Australia was required to payback, from water resource improvements, water advanced by the eastern states early in the year to ensure the delivery of water to South Australia, as well as accumulating a 201 gigalitres(GL) reserve for 2009-10 critical human needs. Accordingly, the South Australian government has continued to implement, and expand as necessary, its Drought and Adaptation Management Strategy.

To minimise the impact of the drought, the government implemented a number of drought related actions through 2008-09 that included:

• completing technical and other investigations on options to protect freshwater wetlands in and around the Goolwa Channel, Finniss River and Currency Creek;

• contributing to the development of a freshwater solution for the Lower Lakes; • providing policy and technical input to the Murray Futures feasibility studies on options for the management of Lake Albert and the

longer-term plan for management of the Lower Lakes and Coorong; • providing technical support and advice to the Community Liaison Manager who continued to work for the government as an

important conduit between communities and government agencies; • continuing to provide technical advice and support to South Australian representatives on the Senior Officials Group, Murray–Darling

Basin Officials Group, the Water Security Council, High Level Drought Task Force and key community forums (Lower Murray Drought Reference Group, River Murray Advisory Committee, Riverland futures taskforce and Riverland Horticulture Reference Forum);

• implementing streamlined emergency dredging procedures in partnership with local councils, Aboriginal communities and other government agencies;

• developing and implementing a water allocation decision framework under drought conditions; • distributing regularly updated information to affected communities and individuals on the current status of the River Murray and on

salinity and water level projections; • organising public meetings on the drought and drought recovery in partnership with the South Australian Murray Darling Basin

Natural Resources Management Board; • providing ex-gratia relief to water licence holders in the South Australian Murray Darling Basin Natural Resources Management

region equivalent to 82 per cent of the water levy payable by each licence holder (except for industrial licensees who paid 100 per cent of the levy);

• waiving of fees normally attached to the transfer of water, purchased by licensed water users to ‘top up’ restricted use to 100 per cent of their usual entitlement;

• enabling licensed River Murray water users to carry over into 2009-10 up to 100 per cent of their unused restricted volume for 2008-09, including any unused 2008-09 carryover;

• the provision of critical water allocations through the purchase of water to ensure the survival of permanent plantings; • providing additional compliance and enforcement effort along the River Murray; • revising water level and salinity models for the River Murray and Lower Lakes, and regularly updating water and salinity level

projections in partnership with the Murray–Darling Basin Commission/Authority; • developing internal modelling capacity for the government’s drought response to forecast potential changes in water and salinity

levels along the length of the River Murray in South Australia under current and predicted low flows; and • overseeing the project to pump water from Lake Alexandrina to Lake Albert, to avoid the onset of acidification due to the exposure of

acid sulfate sediments to the air.

South Australia is upgrading the WILMA System to deal with separation of entitlement and allocation on the River Murray by the commencement of the 2009-10 water trading period and then be fully NWI compliant by May 2010. This is an essential interim step towards South Australia participating in a National Water Market System. South Australia will continue to influence the development of the National Water Market System to ensure it meets desired outcomes.

Under the 2003 Living Murray Initiative First Step Decision, Murray–Darling Basin jurisdictions are to recover collectively 500GL of environmental water for the River Murray by 30 June 2009.

continued

11.53

Sub-program: 2.1 Natural Resources Management Services (River Murray) continued

Performance Commentary continued South Australia will fully meet its first step water recovery target of 35GL by June 2009, the first state to do so. South Australia will have invested approximately $28 million in recovering the 35GL, with supporting investment of $43.5 million from the other Murray–Darling Basin jurisdictions. All the water recovered was required to be sourced from within South Australia. Water savings of 17.2GL achieved following rehabilitation of water supply systems in the large community irrigation districts in the Riverland and Lower Murray, were transferred to the government and subsequently made available to The Living Murray First Step. The remaining 17.8GL were purchased from irrigators on the open water market.

South Australia has also committed to invest approximately $37.2 million in six water recovery projects in New South Wales and Victoria as its contribution towards achieving the 500GL Basin water recovery target.

The South Australian River Murray Environmental Manager (RMEM) has a key policy role of developing robust scientifically defensible watering frameworks and priorities, and contributing to strategic regional, state and national plans. In relation to environmental water, the RMEM has a significant ongoing role in implementing adaptive management in priority wetlands and floodplains to maximise ecological outcomes at local and landscape scales. It is also closely involved with monitoring at icon sites and community wetlands, in response to drought and to environmental watering.

As part of the Murray Futures Program, a Riverine Recovery Project to better manage health of wetlands and floodplains was established. This project will create an adaptive management system to protect the critical elements of the Riverine environment during wet years as well as dry years, and reduce water losses from the river.

Due to low water levels in the river, there were a number of riverbank slumping incidents. Responses have focussed on minimising risks to public safety, including navigational hazards.



2008-09 Target

2007-08 Actual

Quantity

Number processed:

• mandatory River Murray Act 2003 development application referrals

500 (b) 585(c) 580 680

Quality

% of Development Applications processed within statutory timeframes

98% 94% 98% 95%

Footnotes (a) The decrease in the net cost is primarily due to expenditure of $40.3 million net of revenue received from interstate jurisdictions

under The Living Murray initiative in 2008-09. There was also expenditure in 2008-09 on the purchase of critical water for the survival of permanent plantings and other River Murray water initiatives including the River Murray environmental flows and Lower Murray Rehabilitation Irrigation Area works.

(b) Reforms to the planning system will result in reduced development applications but an increase in policy referrals to bring effect to the reforms.

(c) The 2008-09 Estimated Result is based upon YTD figure at end of March 09 quarter, divided by three and multiplied by four.

11.54

Sub-program: 2.2 Policy, Science and Information (River Murray)

Policy advice and policy development for and on behalf of the Minister for the River Murray on the management of natural resources; representation of the government on state and national groups; development, monitoring and review of legislation, and legal advice; natural resource science and information services including: monitoring and assessing the condition of natural resources; resource management technology and innovation; and the provision of technical advice and information.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program $4 774 000 $1 639 000 $4 261 000 -$3 217 000

Performance Commentary Considerable effort was expended in providing science and monitoring support to River Murray related policy development and project implementation, including:

• modelling of River Murray and Lower Lakes flow and salinity for drought water allocations and environmental management responses;

• expanding the network of water monitoring stations to include pH, turbidity and wind data in response to predicted low water levels and exposure of acid sulfate soils in the Lower Murray and Lower Lakes. This involved the installation of 11 additional monitoring stations;

• modelling for the Goolwa Channel, Finniss River and Currency Creek emergency response strategy; • improving the regional groundwater models for the River Murray in South Australia; • modelling salt loads for the proposed Chowilla regulator; • investigating the Salt Interception Scheme at Loxton; • ecological investigations to determine the ability of weir pools and floodplain bore manipulation to enhance floodplain health; and • monitoring of River Murray salinity levels and flow rates.

A high-resolution digital elevation model of the River Murray was developed as part of the Imagery Baseline Data Program.

Sub-program: 2.3 Infrastructure Services (River Murray)

Development and delivery of infrastructure and remediation programs and commercial businesses; and management of natural resources management infrastructure assets.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program $343 000 $494 000 $1 925 000 $223 000

Performance Commentary Due to the ongoing drought and subsequent low river levels, significant remediation work to repair soil cracking was undertaken on the government-owned Lower Murray Embankments, and dredging and infrastructure modifications were undertaken to maintain access to the Mannum and Murray Bridge River Vessel Waste Disposal Stations (RVWDS).

A new RVWDS was constructed at Walker Flat and deteriorated in-river structures at the Swan Reach RVWDS were replaced.

Rehabilitation works are close to completion under the $22 million Lower Murray Reclaimed Irrigation Areas Program aimed at improving water use efficiency, water quality, improvements in drainage and ensuring sustainable primary production into the future.

The Murray–Darling Basin Ministerial Council (MDBMC) approved the construction of Murtho Salt Interception Scheme (SIS) at an estimated capital cost of $30.2 million and the Waikerie Lock 2 Salt Interception Scheme at a cost of $4.6 million.

11.55


Program information

Program 3: Water Security

Description/Objective: Coordinating and leading the development of water security policy across government.


Program 3: Water Security 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................ 5 083 3 120 1 905 481 Supplies and services ....................................... 10 698 2 428 897 386 Grants and subsidies......................................... 48 100 83 640 — — Depreciation and amortisation.......................... 1 575 — — — Other ................................................................ — 15 — 30

Total expenses 65 456 89 203 2 802 897

Income Sale of goods and services................................ 169 42 — — Commonwealth revenue................................... 47 100 55 900 725 — Other ................................................................ 21 875 30 865 — —

Total income 69 144 86 807 725 —

Net cost of providing services -3 688 2 396 2 077 897

11.56


Program: 3 Water Security

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program -$3 688 000 $2 396 000 $2 077 000 $897 000

Performance Commentary The Office for Water Security, headed by the independent Commissioner for Water Security, has been established to provide a strategic focus on water security issues, including:

• developing South Australia’s Water Security Plan to ensure water supplies for future population and economic growth; • leading the development of policy on water security matters for the government’s consideration; • ensuring the National Water Initiative is implemented; • assisting with the government’s emergency response to dry inflows in the Murray–Darling Basin; • coordinating the implementation of the Murray Futures projects; • supporting the Water Security Council; and • supporting the Stormwater Management Authority.

The Office for Water Security is also involved in progressing the national water reform projects developed by the COAG Climate Change and Water Group.

The commitment from the Commonwealth Government for $530 million over 10 years for Murray Futures is intended to fund five projects:

• $120 million Lower Lakes Pipelines to secure a quality water supply to the townships, communities and irrigators who draw water from the Lower Lakes;

• $200 million Lower Lakes and Coorong Recovery to undertake a series of medium to long-term projects around the Lower Lakes and Coorong to help protect this valuable Ramsar site and to sustain the communities reliant on it;

• $110 million River Industry Renewal to reinvigorate irrigation communities including the uptake of newer and smarter irrigation technology; and

• $100 million Riverine Recovery to improve how river wetlands and floodplains are managed from the South Australian border to Wellington.

The potable pipeline to Lower Lakes communities has been completed and the other projects are in various stages of development.

11.57

DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 41 425 43 804 42 393 36 702 Long service leave .................................................................... 1 935 1 823 1 339 2 120 Payroll tax ................................................................................ 2 296 2 286 2 188 2 258 Superannuation ......................................................................... 4 529 4 504 4 324 4 604 Other ......................................................................................... 257 242 215 371Supplies and services — General supplies and services .................................................. 47 926 54 205 48 932 44 319 Consultancy expenses .............................................................. 315 308 308 438Depreciation and amortisation expenses ...................................... 3 931 2 356 2 356 2 384Grants and subsidies ..................................................................... 67 309 83 248 29 518 27 928Intra government transfers ........................................................... 16 331 63 389 8 993 9 414Other expenses ............................................................................. 4 711 74 127 27 772 13 727

Total expenses 190 965 330 292 168 338 144 265

Income

Taxation ........................................................................................ 943 943 943 855Commonwealth revenues ............................................................. 57 169 69 955 19 520 11 361Intra government transfers ........................................................... 3 408 37 233 6 929 23 393Other grants .................................................................................. 29 358 11 523 5 593 1 264Fees, fines and penalties ............................................................... 1 075 1 024 1 465 1 285Sales of goods and services .......................................................... 11 436 10 954 10 800 18 976Interest revenues ........................................................................... — — — 431Net gain or loss from disposal of assets ....................................... — — — -15Other income ................................................................................ 2 418 30 843 1 700 18 683

Total income 105 807 162 475 46 950 76 233



Income — Appropriation ........................................................................... 85 271 106 353 94 888 96 812 Other income ............................................................................ — 25 404 — 43


Net result 113 -36 060 -26 500 28 823

11.58


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 3 548 18 751 19 481 57 925Receivables ................................................................................... 9 547 9 197 5 717 8 847Inventories .................................................................................... 1 349 1 349 1 216 1 349Other current assets ...................................................................... 11 11 — 11


Non current assetsLand and improvements ............................................................... 2 147 2 193 4 162 4 483Plant and equipment ..................................................................... 90 117 71 790 60 939 61 938Intangible assets ........................................................................... 5 247 5 596 4 801 5 745


Total assets 111 966 108 887 96 316 140 298

Liabilities

Current liabilitiesPayables ........................................................................................ 8 366 8 401 5 360 8 436Employee benefits — Salaries and wages ................................................................... 1 043 1 016 702 989 Annual leave ............................................................................. 2 880 2 852 2 588 2 825 Long service leave .................................................................... 599 536 529 481Short-term provisions ................................................................... 173 169 148 162


Non current liabilitiesLong-term employee benefits — Long service leave .................................................................... 9 370 9 240 8 254 9 137Long-term provisions ................................................................... 463 443 385 426



Net assets 89 072 86 230 78 350 117 842

Equity

Contributed capital ....................................................................... 10 893 8 164 8 164 8 164Retained earnings ......................................................................... 49 451 49 338 45 906 85 398Asset revaluation reserve ............................................................. 28 728 28 728 24 280 24 280

Total equity 89 072 86 230 78 350 117 842


11.59



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... 50 194 52 447 50 155 44 098Payments for supplies and services .............................................. 48 276 54 548 49 275 41 923Grants and subsidies ..................................................................... 67 309 83 248 29 518 27 928GST paid ...................................................................................... — — — 627Intra government transfers ........................................................... 16 331 63 389 8 993 9 414Other payments ............................................................................ 4 687 74 103 27 741 13 638


Cash inflowsTaxation ........................................................................................ 943 943 943 780Intra government transfers ........................................................... 3 408 37 233 6 929 23 393Commonwealth receipts ............................................................... 57 169 69 955 19 520 11 361Other grants .................................................................................. 29 358 11 523 5 593 1 264Fees, fines and penalties ............................................................... 1 075 1 024 1 465 1 285Sales of goods and services .......................................................... 11 436 10 954 10 800 15 293Interest received ........................................................................... — — — 381GST received ................................................................................ — — — 683Other receipts ............................................................................... 2 068 30 493 1 350 18 683


SA GOVERNMENT:

Appropriation ............................................................................... 85 271 106 353 94 888 96 812Other receipts ............................................................................... — 25 404 — 43


Net cash provided by (+) / used (-) in operating activities 3 931 -33 853 -24 194 32 350


Cash outflowsPurchase of property, plant and equipment .................................. 21 863 5 121 847 1 429Purchase of intangibles ................................................................. — 200 200 574




Cash inflowsCapital contributions from SA Government ................................ 2 729 — — —

Cash generated from financing activities 2 729 — — —

Net cash provided by (+) / used in (-) financing activities 2 729 — — —

Net increase (+) / decrease (-) in cash equivalents -15 203 -39 174 -25 241 30 347



11.60

ADMINISTERED ITEMS FOR THE DEPARTMENT OF WATER, LANDAND BIODIVERSITY CONSERVATION


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual


Income — Appropriation ........................................................................... 11 140 10 804 6 601 15 905 Other income ............................................................................ — 16 000 — —



Taxation ........................................................................................ 5 401 5 174 5 270 5 053Commonwealth revenues ............................................................. — 18 980 15 200 30 923Intra government transfers ........................................................... 7 006 6 780 2 948 11 616Other grants .................................................................................. 120 — — 145Fees, fines and penalties ............................................................... 2 232 4 685 1 134 5 089Sales of goods and services .......................................................... 127 226 191 186Interest revenues ........................................................................... 284 284 — 2 495Other income ................................................................................ 250 250 250 9 128


Total income 26 560 63 183 31 594 80 540

Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 398 389 1 154 406 Long service leave .................................................................... — — 13 3 Payroll tax ................................................................................ 6 6 47 8 Superannuation ......................................................................... 14 14 134 11 Other ......................................................................................... 25 27 3 53Supplies and services — General supplies and services .................................................. 1 971 1 913 2 229 1 842 Consultancy expenses .............................................................. — — — 18Depreciation and amortisation expenses ...................................... 1 360 1 360 1 360 1 696Grants and subsidies ..................................................................... 11 289 20 638 16 980 3 243Intra government transfers ........................................................... 16 161 54 901 27 996 73 995Other expenses ............................................................................. 1 413 1 698 1 354 235

Total expenses 32 637 80 946 51 270 81 510

Net result -6 077 -17 763 -19 676 -970

11.61


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 14 113 19 296 12 539 36 155Receivables ................................................................................... 4 119 4 075 5 128 4 031Inventories .................................................................................... 186 186 274 186


Non current assetsInterests in joint ventures ............................................................. 647 046 647 046 — 647 046Land and improvements ............................................................... 33 427 33 427 33 386 33 427Plant and equipment ..................................................................... 27 924 28 862 29 232 29 810


Total assets 726 815 732 892 80 559 750 655

Liabilities

Current liabilitiesPayables ........................................................................................ 4 911 4 911 2 388 4 911Employee benefits — Salaries and wages ................................................................... 3 3 3 3 Annual leave ............................................................................. 93 93 74 93 Long service leave .................................................................... 38 38 57 38 Other ......................................................................................... 6 6 5 6


Non current liabilitiesLong-term employee benefits — Long service leave .................................................................... 30 30 — 30

Total non-current liabilities 30 30 — 30


Net assets 721 734 727 811 78 032 745 574

Equity


Total equity 721 734 727 811 78 032 745 574


11.62



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash inflowsTaxation ........................................................................................ 5 330 5 103 5 199 5 160Intra government transfers ........................................................... 7 006 6 780 2 948 11 616Commonwealth receipts ............................................................... — 18 980 15 200 30 923Other grants .................................................................................. 120 — — 145Fees, fines and penalties ............................................................... 2 259 4 712 1 161 4 299Sales of goods and services .......................................................... 127 226 191 1 183Interest received ........................................................................... 284 284 — 2 541GST received ................................................................................ — — — 84Other receipts ............................................................................... 250 250 250 11


Cash outflowsEmployee benefit payments ......................................................... 443 436 1 351 464Payments for supplies and services .............................................. 1 971 1 913 2 229 1 813Grants and subsidies ..................................................................... 11 289 20 638 16 980 868Intra government transfers ........................................................... 16 161 54 901 27 996 73 995Other payments ............................................................................ 1 413 1 698 1 354 708


SA GOVERNMENT:

Appropriation ............................................................................... 11 140 10 804 6 601 15 905Other receipts ............................................................................... — 16 000 — —


Net cash provided by (+) / used in (-) operating activities -4 761 -16 447 -18 360 -5 981


Cash outflowsPurchase of property, plant and equipment .................................. 422 412 412 —

Cash used in investing activities 422 412 412 —

Net cash provided by (+) / used in (-) investing activities -422 -412 -412 —

Net increase (+) / decrease (-) in cash equivalents -5 183 -16 859 -18 772 -5 981



11.63



The following commentary relates to agency financial statements presented in the previous section. The discussion relates to variations between the 2008-09 Estimated Result and the 2009-10 Budget.

The Administered items include the income, expenses, assets, liabilities and cash flows pertaining to the South Eastern Water Conservation and Drainage Board, the Dog Fence Board and the Native Vegetation Fund. This differs from the Department of Water, Land and Biodiversity Conservation general purpose financial reports, which do not recognise these reporting entities as administered.

On 1 January 2009, the Intergovernmental Agreement on Federal Financial Relations came into operation. Under the new arrangements, the Department of Treasury and Finance (DTF), rather than the Department of Water, Land and Biodiversity Conservation will be the recipient of Commonwealth funding for National Partnership payments and national specific purpose payments. The financial statements recognise that funding from 1 January 2009 is provided to Department of Water, Land and Biodiversity Conservation in the form of appropriation and other transfers from DTF, rather than revenue directly from the Commonwealth.

More information on the revised federal financial arrangements can be found in Budget Paper 3, Chapter 4, Intergovernmental Finances.


Expenditure

The decrease in operating expenses of $139.3 million between the 2008-09 Estimated Result and the 2009-10 Budget is primarily attributed to:

• reduced payments in 2009-10 relating to water acquisition through the Save The River Murray program and The Living Murray initiative ($61.3 million);

• once-off expenditure in 2008-09 for the Lower Lakes integrated pipeline to secure potable water ($25.7 million);

• once-off expenditure in 2008-09 to secure water allocations for the survival of permanent plantings on the River Murray ($24.4 million);

• reduced expenditure in 2009-10 relating to the establishment of the integrated pipeline between Jervois and Langhorne Creek/Currency Creek ($12.8 million); and

• reduced expenditure in 2009-10 for National Action Plan funded programs, including the Upper South East Dryland Salinity and Flood Management project and Salt Interception Scheme ($10 million).

Revenue

The decrease in income of $103.2 million between the 2008-09 Estimated Result and the 2009-10 Budget is primarily attributed to:

11.64

• reduced revenue from interstate jurisdictions investing in the state’s The Living Murray water recovery programs ($29.1 million);

• once-off funding in 2008-09 for the Lower Lakes integrated pipeline to secure potable water ($25.7 million);

• once-off funding in 2008-09 from the South Australian government for securing water allocations for the survival of permanent plantings on the River Murray ($24.4 million);

• reduced Commonwealth funding in 2009-10 for the integrated pipeline between Jervois and Langhorne Creek/Currency Creek ($12.8 million);

Offset by:

• an increase in funding for the Goolwa Channel Water Level Management Project ($17.6 million).


The Balance sheet shows an increase in the net assets position from the 2008-09 Estimated Result to the 2009-10 Budget of $2.8 million. The increase is attributable to net changes in non-current assets, primarily associated with the establishment of the Goolwa Channel Water Level Management Project and the delivery of the State Water Security Plan ($16.9 million) which is offset by a reduction in cash holdings ($15.2 million), most of which is associated with a run down in cash in The Living Murray fund.


The major variations described in the cash flow statement are reflective of the variations in the income statement and balance sheet.


Expenditure

The decrease in operating expenses of $48.3 million between the 2008-09 Estimated Result and the 2009-10 Budget is primarily attributed to once-off funding in 2008-09 for Caring for our Country ($19.0 million) and the Complementary State NRM Program ($16.0 million). The wind down in the existing National Action Plan for Salinity and Water Quality and National Heritage Trust programs is also contributing to the variance ($15.9 million).

This is partially offset by additional expenditure related to the Native Vegetation Fund’s Significant Environmental Benefit grants ($2.3 million).

Revenue

The decrease in income of $36.6 million between the 2008-09 Estimated Result and the 2009-10 Budget is primarily attributed to once-off funding in 2008-09 for Caring for our Country ($19.0 million) and the Complementary State NRM Program ($16.0 million).

11.65


The balance sheet shows a decrease in the net assets position of $6.0 million, primarily reflected by a decrease in cash holdings.

This is represented in the National Action Plan for Salinity and Water Quality and National Heritage Trust single holding account cash balances, consistent with the wind down in these Commonwealth programs through to 31 December 2009.


The major variations described in the cash flow statement are reflective of the variations in the income statement.



11.66

Additional Information for Administered Items Department of Water, Land and Biodiversity Conservation

Cash flow statement

2009-10Budget

2008-09Estimated

result

2008-09 Budget

2007-08Actual

$000 $000 $000 $000

CASH FLOWS FROM:

Operating activities

Receipts

Taxation —

NRM Levy 5 330 5 103 5 199 5 160

Fines and Penalties —

NRM Levy 1 159 1 131 1 131 677

Native Vegetation Fund 110 110 — —

Grants and Subsidies —

NRM Fund 3 426 3 342 2 948 5 705

NAP for Salinity & Water Quality — — — 10 978

Natural Heritage Trust — — — 19 977

Mount Lofty Ranges INRM — — — 100

Centre for Natural Resource Management — — — 3 319

Caring for Our Country — 18 980 15 200 —

NRM Alliance Fund 356 182 — 234

Dog Fence Board 459 441 — 441

Native Vegetation Fund 916 894 — 8

South Eastern Water Conservation and Drainage Board 1 969 1921 — 1 922

Sale of Goods and Services —


Dog Fence Board 10 10 — —


South Eastern Water Conservation and Drainage Board 107 206 191 200

Regulatory Fees —


Native Vegetation Fund 531 3 030 30 3 185

Interest —

Commonwealth Programs — — — 2 186

NRM Fund — — — 163



State Government —

NRM Fund 2 676 2 620 2 618 400

Qualco Sunlands 250 250 250 250

Minister’s salary 275 269 269 258

NAP for Salinity & Water Quality — — — 11 243

Complementary State NRM Program — 16 000 — —

Stormwater Management Authority Grant 4 308 4 203 — —

11.67


Cash flow statement

2009-10Budget

2008-09Estimated

result

2008-09 Budget

2007-08Actual

$000 $000 $000 $000

Payroll Tax Subsidy paid to NRM Boards 1 002 978 978 993

Pastoral Board 13 13 3 9

Native Vegetation Fund 647 550 562 830

South Eastern Water Conservation and Drainage Board 1 969 1 921 1 921 1 922

Net GST Received — — — 84

Other Receipts 250 250 250 11

Total operating receipts 26 516 63 139 31 550 71 867

Payments

Employee Entitlements —

Minister’s salary 275 269 269 260

Dog Fence Board 148 145 150 136

South Eastern Water Conservation and Drainage Board 20 22 — 68

Supplies and Services —

NRM Fund — — — 13

Qualco Sunlands — — 250 —

NAP for Salinity & Water Quality — — — 45

Pastoral Board 10 10 — —

Native Vegetation Fund 167 141 102 56




Centre for Natural Resource Management — — — 2 894

Natural Heritage Trust 2 517 4 878 6 600 20 464

NAP for Salinity & Water Quality — 13 577 12 000 37 814


NRM Fund 11 503 11 136 8 274 9 349

Qualco Sunlands 250 250 — —

Caring for Our Country — 18 980 15 200 —

Complementary State NRM Program — 16 000 — —

Stormwater Management Authority Grant 4 308 4 203 — —

Payroll Tax Subsidy paid to NRM Boards 1 002 978 978 955

NRM Alliance Fund 356 356 — —

Pastoral Board — — 3 —

Native Vegetation Fund 4 936 2 667 900 739

Dog Fence Board 609 593 397 556


Other Payments —

Dog Fence Board 12 12 — —

11.68


Cash flow statement

2009-10Budget

2008-09Estimated

result

2008-09 Budget

2007-08Actual

$000 $000 $000 $000

South Eastern Water Conservation and Drainage Board 19 19 — 535

Qualco Sunlands — payments to consolidated account 250 563 250 —

NRM Penalties 1 132 1 104 1 104 173

Total operating payments 31 277 79 586 49 910 77 848

Net cash provided by operating activities -4 761 -16 447 -18 360 -5 981

Investing activities

Payments

Purchase of Property, Plant and Equipment —

Pastoral Board 3 3 3 —

South Eastern Water Conservation and Drainage Board 419 409 409 —

Cash used in investing activities 422 412 412 —

Net cash provided by (+)/ used in (-) investing activities -422 -412 -412 —

Net increase (+)/ decrease (-) in cash held -5 183 -16 859 -18 772 -5 981


Closing cash calance as at 30 June 14 113 19 296 12 539 36 155

11.69

TABLE OF CONTENTS

AGENCY: ENVIRONMENT PROTECTION AUTHORITY

Objective ......................................................................................................................................... 11.71





1. Environment and Radiation Protection .......................................................................... 11.73



Balance sheet......................................................................................................................... 11.78







11.70



Objective

To achieve a clean, healthy and valued environment that supports social and economic prosperity for all South Australians.



• Fully implement site contamination provisions of the Environment Protection Act 1993

• Implement revised State Ambient Water Quality Monitoring Program and Water Quality Report Cards

• Complete identification of agreed Environmental Values for water quality in the Adelaide and Mount Lofty Ranges and SA Murray Darling Basin Natural Resources Management regions

• Implement the adoption of Adelaide Coastal Water Quality Improvement Plan

• Gazettal of Managed Aquifer Recharge Code of Practice • Develop and implement a plan to act on recommendations from

EPA’s review on licensing systems and processes • Complete Waste to Resources Environment Protection Policy • Remake General and Fees and Levy Regulations • Update Schedule 1 of the Environment Protection Act 1993 for

activities of Environmental Significance • Implement a policy for complaints management and internal

review of decisions

• Introduced a new licensing fee system on 1 July 2008 and implemented changes over the financial fee year

• Conducted a stakeholder survey, as a precursor to the development of a customer service strategy and subsequent staff training

• Implemented regulations to increase the deposit refund amount on drink containers from 5 cents to 10 cents

• Released the draft Environment Protection (Waste to Resources) Policy for consultation

• Conducted consultation on a revised Environment Protection (Water Quality) Policy 2003

• Commenced the Environment Protection (Air Quality) Policy review

• Defined scope for the review of the Environment Protection Act 1993

• Finalised review activities of environmental significance for regulation, including desalination plants

• Delivered the State of the Environment Report 2008-2013 • Implemented Environment Protection (Board of Authority)

Amendment Bill 2008 • Implemented the Radiation Protection Control (Non-Ionising

Radiations) Regulations 2008 and the licensing of solaria operators

• Finalised the Waste to Resources Reform project to deliver essential protocols for the waste derived recovered products

• Completed drafting of the Adelaide Coastal Water Quality Improvement Plan

• Reviewed and responded to the Adelaide Desalination Plant Environment Impact Statement (EIS)

• Developed measures to address greywater discharge from houseboats into River Murray, including draft National Standard and support for industry development of greywater treatment technology

11.71



2009-10Budget


2008-09 Budget

2007-08 Actual

Program $000 $000 $000 $000 1. Environment and Radiation Protection 2 124 3 972 3 873 4 959

Total 2 124 3 972 3 873 4 959


2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

New works

Accommodation Fit-out — 5 456 5 256 —

Total new works 5 456 5 526

Annual programs 528 512 512 644

Total investing payments 528 5 968 5 768 644

11.72


Program information

Program 1: Environment and Radiation Protection

Description/Objective: To achieve a clean, healthy and valued environment that supports social and economic prosperity for all South Australians.


Program 1: Environment and Radiation Protection

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 19 060 19 243 19 582 18 997 Supplies and services........................................ 7 070 8 722 6 871 7 272 Grants and subsidies ......................................... 150 592 180 369 Depreciation and amortisation .......................... 1 361 805 1 499 816 Other................................................................. 11 773 11 859 11 807 11 640

Total expenses 39 414 41 221 39 939 39 094

Income Sale of goods and services................................ 402 401 351 425 Fees, fines and penalties ................................... 36 357 35 153 34 984 32 274 Commonwealth revenue ................................... — 327 113 263 Other................................................................. 531 1 368 618 1 173

Total income 37 290 37 249 36 066 34 135


11.73


Sub-program: 1.1 Environment Protection

The Environment Protection Authority (EPA) exercises the powers, functions and duties of the Environment Protection Act 1993 to minimise, monitor and evaluate human impacts on the environment by:

• administering and enforcing the Act; • licensing, inspecting and auditing activities that have an impact on the environment; • undertaking environmental assessment of new developments; • delivering avoidance and reduction programs for water, catchments, air, noise and waste; • promoting industry eco-efficiency training programs; • providing support to local government; • monitoring and reporting on air and water quality; • assessing and reporting on industry monitoring programs; • delivery of a program of works to improve water quality in the Mount Lofty Ranges watershed and Murraylands; • development of statutory and non-statutory environmental policies; and • undertaking State of the Environment reporting.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary Following legislative change separating the EPA Presiding Board Member and the Chief Executive roles, an independent Presiding Member was appointed to oversee the EPA Board and a new Chief Executive Officer was appointed to head the administrative agency.

The change in leadership of the organisation has meant a renewed focus on the key strategic directions and priorities for the organisation. A revision of the EPA Strategic Plan is being undertaken to deliver a new strategic plan for the authority for the beginning of the next financial year. In line with this, the 2009 EPA Board Round Table addressed the evolving directions of the EPA, how it could add value to its services and sought feedback from stakeholders regarding the services they need.



2008-09 Target

2007-08 Actual

Improve air quality as indicated by the number of days per calendar year where the air quality NEPM PM10 particle standard of 50 micrograms of particles per cubic meter air, at sites throughout Adelaide is exceeded

No more than 5 Maximum of 10 minimum of 3

Reduce number of exceedences

Maximum of 8 minimum of 4

Improved air quality in Port Pirie as measured by the annual average concentration for airborne lead(a)

• Frank Green Park Not to exceed 0.5 ug/m3

0.14 ug/m3 progressive reduction

0.12 ug/m3

• Port Pirie Ellen Street(b) Not to exceed 2.2 ug/m3

• Port Pirie Oliver Street Not to exceed 0.5 ug/m3


0.42 ug/m3

• Pirie West Primary School Not to exceed 0.5 ug/m3


0.45 ug/m3

Improve air quality in Whyalla as indicated by a decrease in the number of exceedences of the air quality NEPM PM10 particle standard (50 micrograms of particles per cubic meter air), measured at Schulz Reserve

No more than 5 exceedences

7 exceedence days No more than 10 exceedences

6 exceedence days

Percentage of priority water bodies where community agreed environmental values and water quality objectives have been developed(c)

25% of NRM regions(d) completed

Process commenced for 2 out of 8 NRM regions

Agreed environmental values developed for 20% of priority water bodies

Agreed environmental values developed for Port Waterways and Adelaide Coastal Waters

continued

11.74

Sub-program: 1.1 Environment Protection continued



2008-09 Target

2007-08 Actual

Percentage of water bodies meeting water quality objectives(e)

40% of water bodies meet water quality objectives

25%(f) 40% of water bodies meet water quality objectives

33%

Minimise industrial emission loads to air and water across South Australia as indicated by:

• Percentage change per financial year reported for calculated key pollutant loads of air and water emissions from major point sources and licensees reporting to the National Pollutant Inventory in both years over the five year timeframe

No increase Increase in Zinc for water discharges(g) and increases in CO, Pb, PM10 and SO2

Comparing 2007-08 to 2002-03

No increase No increases excepting Particulate Matter 10.0 μm (PM10) increased by 43%

Comparing 2006-07 to 2001-02

Ensuring activities of licensees comply with the Act, through the number of inspections of licensed premises, audits and other environmental measures(h)

1050 inspections 1214 inspections 1050 inspections 1231 inspections

Percentage of Development Plan amendment responses made within statutory timeframes

100% 89% 100% 88%

Percentage of development application responses and approvals made within statutory timeframe

100% 97% 100% 96%

Support to local government to deliver local environment protection services

50 councils supported by EPA




Footnotes (a) The target is a progressive reduction of airborne lead based on the actual figures. That National Environment Protection Measure

(NEPM) Standard is 0.5 micrograms per metre cubed (µg/m3).

(b) Indicator commences in 2009-10.

(c) Priority water bodies include the major inland surface and groundwater resources in each NRM region and marine waters.

(d) NRM regions are the Natural Resources Management regions as defined in the Natural Resources Management Act 2004.

(e) Based on National Water Quality Management Strategy.

(f) Estimated resulted is lower than target due to affect of the drought on priority water bodies.

(g) Decrease in levels of water for Cu (51%), Pb (32%), TN (30%), TP (5%) and an increase of Zn (24%) for NPi report comparing 2003 and 2008 financial years. Decrease in levels for air: Nox (11%), TVOC’s (27%) and increase for levels in air: CO (21%), Pb (11%), PM10 (11%), SO2 (6%) for NPi report comparing 2003 to 2008 financial years. In previous portfolio statement comparing 2002-07; no increase in levels of air (Cu, Pb, Zn, TN, TP) or water (CO, Pb, Nox, SO2, TVOs) for NPi report 2002-07. During the same period Particulate Matter 10.0 μm (PM10) increased by 43%.

(h) The figures listed include all inspections, including higher risk sites.

11.75

Sub-program: 1.2 Radiation Protection

The EPA exercises the powers, functions and duties of the Radiation Protection and Control Act 1982 to minimise adverse impacts of radiation on human health and the environment by:

• administration and enforcement of the Act; • assessment of applications for new radiation sources, premises and users; • monitoring and surveillance of radiation management at operating uranium mines and former mining and milling sites; • monitoring and surveillance of radiation use by industry, science, medicine, the public and in the environment; • development of options and assessment of proposals for radioactive waste management; • assessment of proposals for new projects involving radiation or radioactive materials; • development and review of statutory and non-statutory radiation protection policies; and • provision of advice on ionising and non-ionising radiation protection to government departments, workers, industry and the public.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program $60 000(a) $119 000 $133 000 $79 000

Performance Commentary In 2008-09 the EPA in its Radiation Protection Program:

• implemented the Radiation Protection Control (Non-Ionising Radiations) Regulations 2008 and licensed solaria operators; • developed a program for accredited third party compliance testing of radiation apparatus; • assessed licences and approvals for uranium mines; • provided presentations, education and training to the public, the International Atomic Energy Authority, professional bodies,

emergency services and school children; and • contributed to national codes and guidelines.



2008-09 Target

2007-08 Actual

Ensure radioactive sources, premises and users of radiation comply with the Radiation Protection and Control Act 1982 through assessments, inspections and audits

100% of new sources and user applications assessed




Ensure licensed uranium mines and proposals for new projects comply with the Radiation Protection and Control Act 1982

100% of radiation reports from uranium mines and all new projects are assessed




Ensure x-ray machines comply with regulations

80% new low risk machines and 100% high risk machines registered in timely fashion(b)

66% new machines registered



Footnotes (a) The net cost of the sub-program has reduced significantly in 2009-10 in comparison to the 2008-09 Estimated Result due to the

anticipated increase in revenue from annual fees and charges in 2009-10.

(b) Within two months of application (metro apparatus) or four months of application (rural and remote apparatus).

11.76

ENVIRONMENT PROTECTION AUTHORITY


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 18 029 18 287 18 539 15 030 Long service leave .................................................................... 577 513 526 617 Payroll tax ................................................................................ 54 52 72 912 Superannuation ......................................................................... 179 175 224 1 791 Other ......................................................................................... 221 216 221 647Supplies and services — General supplies and services .................................................. 7 070 8 722 6 871 7 253 Consultancy expenses .............................................................. — — — 19Depreciation and amortisation expenses ...................................... 1 361 805 1 499 816Grants and subsidies ..................................................................... 150 592 180 369Intra government transfers ........................................................... 11 623 11 707 11 655 11 541Other expenses ............................................................................. 150 152 152 99

Total expenses 39 414 41 221 39 939 39 094

Income

Commonwealth revenues ............................................................. — 327 113 263Intra government transfers ........................................................... 432 1 274 476 974Other grants .................................................................................. — — — 9Fees, fines and penalties ............................................................... 36 357 35 153 34 984 32 274Sales of goods and services .......................................................... 402 401 351 425Interest revenues ........................................................................... 99 94 94 155Net gain or loss from disposal of assets ....................................... — — — -17Other income ................................................................................ — — 48 52

Total income 37 290 37 249 36 066 34 135



Income — Appropriation ........................................................................... 2 957 3 846 3 873 5 288 Other income ............................................................................ — 15 — 12


Net result 833 -111 — 341

11.77


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 8 519 6 682 6 381 7 597Receivables ................................................................................... 2 375 2 375 1 377 2 385Other current assets ...................................................................... 80 80 139 80


Non current assetsFinancial assets ............................................................................. 5 5 5 5Land and improvements ............................................................... 5 228 5 754 5 367 435Plant and equipment ..................................................................... 2 077 2 253 1 087 2 268Heritage assets .............................................................................. 2 2 4 2Intangible assets ........................................................................... 363 494 721 625


Total assets 18 649 17 645 15 081 13 397

Liabilities

Current liabilitiesPayables ........................................................................................ 2 378 2 378 1 471 2 317Employee benefits — Salaries and wages ................................................................... 368 368 292 367 Annual leave ............................................................................. 1 175 1 161 1 137 1 150 Long service leave .................................................................... 288 263 135 249Short-term provisions ................................................................... 35 35 30 34Other current liabilities ................................................................. 52 52 366 1


Non current liabilitiesLong-term employee benefits — Long service leave .................................................................... 3 785 3 588 3 826 3 428Long-term provisions ................................................................... 92 90 80 88Other non-current liabilities ......................................................... 799 866 866 —



Net assets 9 677 8 844 6 878 5 763

Equity

Contributed capital ....................................................................... 3 087 3 087 3 087 — Retained earnings ......................................................................... 5 368 4 535 2 570 4 541Asset revaluation reserve ............................................................. 1 222 1 222 1 221 1 222

Total equity 9 677 8 844 6 878 5 763


11.78



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... 18 827 19 059 19 398 18 813Payments for supplies and services .............................................. 7 137 7 789 5 938 6 452Grants and subsidies ..................................................................... 150 592 180 369Intra government transfers ........................................................... 11 623 11 707 11 655 11 541Other payments ............................................................................ 145 147 147 169


Cash inflowsIntra government transfers ........................................................... 432 1 274 476 974Commonwealth receipts ............................................................... — 327 113 263Other grants .................................................................................. — — — 9Fees, fines and penalties ............................................................... 36 357 35 153 34 984 31 053Sales of goods and services .......................................................... 402 401 351 365Interest received ........................................................................... 99 94 94 140Other receipts ............................................................................... — — 48 52


SA GOVERNMENT:

Appropriation ............................................................................... 2 957 3 846 3 873 5 288Other receipts ............................................................................... — 15 — 12


Net cash provided by (+) / used (-) in operating activities 2 365 1 816 2 621 812


Cash outflowsPurchase of property, plant and equipment .................................. 528 5 968 5 768 619Purchase of intangibles ................................................................. — — — 25

Cash used in investing activities 528 5 968 5 768 644

Net cash provided by (+) / used in (-) investing activities -528 -5 968 -5 768 -644


Cash inflowsCapital contributions from SA Government ................................ — 3 087 3 087 —

Cash generated from financing activities — 3 087 3 087 —

Net cash provided by (+) / used in (-) financing activities — 3 087 3 087 —

Net increase (+) / decrease (-) in cash equivalents 1 837 -1 065 -60 168



11.79

ADMINISTERED ITEMS FOR THE ENVIRONMENT PROTECTION AUTHORITY


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000

Expenses

Supplies and services — Consultancy expenses .............................................................. — — — 65

Total expenses — — — 65

Net result — — — -65

11.80


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ — — — 150

Total current assets — — — 150

Total assets — — — 150

Liabilities

Current liabilitiesPayables ........................................................................................ — — — 45

Total current liabilities — — — 45

Total liabilities — — — 45

Net assets — — — 105

Equity

Retained earnings ......................................................................... — — — 105

Total equity — — — 105


11.81



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsPayments for supplies and services .............................................. — — — 20

Cash used in operations — — — 20

Net cash provided by (+) / used in (-) operating activities — — — -20

Net increase (+) / decrease (-) in cash equivalents — — — -20

Cash and cash equivalents at the start of the financial year — — — 170

Cash and cash equivalents at the end of the financial year — — — 150

11.82





Expenditure

The 2009-10 Budget has decreased from the 2008-09 Estimated Result. This has occurred predominantly as a result of:

• once-off expenditure in 2008-09 as a result of a number of carryovers from 2007-08 ($987 000);

• once-off expenditure in 2008-09 for the Complementary State Natural Resource Management Program ($516 000); and

• once-off expenditure in 2008-09 as a result of several externally funded projects ($250 000).

Revenue

Fees, fines and penalties revenue has increased by $1.2 million as a result of the move to full cost recovery. This is offset by a decrease in once-off intra-government transfer revenue ($842 000) and Commonwealth revenue ($327 000) for a range of projects including the Complementary State Natural Resource Management Program ($516 000).


The balance sheet reflects an increase in net assets for 2009-10 compared to the 2008-09 Estimated Result. This is predominantly a result of:

• an increase in cash balance as a result of additional accrual appropriation funding ($728 000); and

• an increase in the Environment Protection Fund cash balance ($488 000).


The commentary regarding the income statement above provides information regarding the major variations for the cash movement from operating activities. The decrease in investing payments between 2008-09 Estimated Result and 2009-10 Budget is due to the cost of fitout and move to a new building in 2008-09. The remaining cash balance from the Adelaide Coastal Water Study ($150 000) has been transferred to EPA controlled.


The revenue and expenditure budgets for both the 2008-09 Estimated Result and the 2009-10 Budget are nil as the Adelaide Coastal Waters Study was completed in 2007-08.

11.83


Net assets for both the 2008-09 Estimated Result and the 2009-10 Budget are nil as the Adelaide Coastal Waters Study was completed in 2007-08.


No major variations. The Adelaide Coastal Waters Study was completed in 2007-08.

Additional information — administered items

No major variations. The Adelaide Coastal Waters Study was completed in 2007-08.

11.84

Additional Information for Administered Items Environment Protection Authority

Cash flow statement

2009-10Budget

2008-09Estimated

result

2008-09 Budget

2007-08Actual

$000 $000 $000 $000

CASH FLOWS FROM:


Receipts

Other —

Adelaide Coastal Waters Study................................................. — — — —

Interest received —

Adelaide Coastal Waters Study................................................. — — — —

Total operating receipts — — —

Payments

Supplies and services —

Adelaide Coastal Waters Study................................................. — — — 20

Total operating payments — — —

Net cash provided by operating activities — — -20

Net increase (+) / decrease (-) in cash held — — — -20

Opening cash balance as at 1 July — — — 170

Closing cash balance as at 30 June — — — 150

11.85

TABLE OF CONTENTS

AGENCY: ZERO WASTE SA

Objective ......................................................................................................................................... 11.87





1. Waste Reduction and Resource Recovery ..................................................................... 11.89



Balance sheet......................................................................................................................... 11.92



11.86



Objective

To eliminate waste or its consignment to landfill and advance the development of resource recovery and recycling based on an integrated strategy for the state.


Targets 2009-10 Highlights 2008-09 • Complete the new South Australia’s Waste Strategy 2010-2015

in May 2010 • Review the regional implementation program to identify

potential gaps in resource recovery of materials from country South Australia

• Provide funding assistance for the continued implementation of domestic food waste collections incorporated with the kerbside green organics bin collections across metro and non-metro councils

• Provide continued assistance to businesses, institutions, local and state government through the Business Sustainability Alliance (memorandum of understanding between Department of Trade and Economic Development, Environment Protection Authority, SA Water and Zero Waste SA)

• Encourage effective collection systems to increase recycling from the commercial and industrial sector through continued incentive funding to existing major waste collectors

• Continue to provide funding for the household and farm chemicals collection services across South Australia, and undertake a registration of interest for the establishment and operation of facilities to accept household hazardous waste and electronic waste in metropolitan Adelaide

• Continue with the Wipe Out Waste program for regional and metropolitan schools spanning kindergarten through to primary and secondary schools

• Provide funding for the continued implementation of waste management, resource recovery and recycling in key Anangu Pitjantjatjara Yankunytjatjara (APY) Lands communities and homelands with financial contribution from the Australian Government Department for Families, Housing, Community Services and Indigenous Affairs (FaHCSIA)

• Continue funding support to UniSA in partnering the Zero Waste Centre of Excellence to be a focal point for waste related research and build long-term capacity to undertake activities at the higher end of the waste hierarchy

• Completed the mid-term review of South Australia’s Waste Strategy 2005-2010 and commenced planning for the development of the new South Australia’s Waste Strategy beyond 2010

• Commenced a review of the reuse and recycling infrastructure needs for metropolitan Adelaide beyond 2009

• Provided financial assistance to encourage the enhanced recovery of materials from country South Australia as part of Zero Waste SA regional implementation program

• Provided funding support to enable 10 metro and non-metro councils to pilot the incorporation of domestic food waste with the kerbside green organics bin collections

• Provided assistance to over 100 businesses and institutions under the resource efficiency and assistance program to encourage adoption of waste avoidance and resource efficiency sustainability practices

• Developed and implemented an incentive program with 11 of the major waste collectors in South Australia to encourage effective collection systems to increase recycling from the commercial and industrial sector

• Enacted the Plastic Shopping Bags (Waste Avoidance) Act 2008

• Assisted in preparing the community and retailers in the lead up to a ban of single use lightweight plastic shopping bags commencing 4 May 2009

• Provided funding for the household and farm chemicals collection service across South Australia and examined future options

• Implemented phases one and two of Zero Waste SA data management and reporting system for the collection, analysis and reporting of waste and recycling data for South Australia

• Provided funding assistance through grants to councils that are faced with illegal dumping issues

• Continued with the Wipe Out Waste program focusing on regional and metropolitan schools spanning kindergarten through to primary and secondary schools

11.87



2009-10Budget


2008-09 Budget

2007-08 Actual

Program $000 $000 $000 $000 1. Waste Reduction and Resource

Recovery -3 662 -2 961 -2 914 -5 116

Total -3 662 -2 961 -2 914 -5 116


2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

New works

Waste Management Trial – Anangu Pitjantjatjara Yankunytjatjara Lands

60 — — —

Total investing payments 60 — — —

11.88


Program information

Program 1: Waste Reduction and Resource Recovery

Description/Objective: To eliminate waste or its consignment to landfill and advance the development of resource recovery and recycling based on an integrated strategy for the state.


Program 1: Waste Reduction and Resource Recovery

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 1 863 1 831 1 829 1 756 Supplies and services........................................ 4 986 5 338 4 476 3 050 Grants and subsidies ......................................... 1 863 3 329 3 308 1 987 Depreciation and amortisation .......................... — — — 56

Total expenses 8 712 10 498 9 613 6 849

Income Other................................................................. 12 374 13 459 12 527 11 965

Total income 12 374 13 459 12 527 11 965

Net cost of providing services -3 662 -2 961 -2 914 -5 116

11.89


Program: 1 Waste Reduction and Resource Recovery

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of program -$3 662 000 -$2 961 000 -$2 914 000 -$5 116 000

Performance Commentary The household hazardous waste and farm chemicals collections program continued in 2008-09. A total of 138.9 tonnes of household hazardous waste and farm chemicals was collected for safe disposal from 3184 members of the public in 12 council areas (four metropolitan and eight rural/regional).

Continued with grant agreements totalling $211 350 in 2008-09 directed to local government councils across South Australia that have achieved high performance in household kerbside recycling collections. Further grant agreements will be made in 2009-10 under a revised household kerbside recycling program incorporating food waste collections with councils kerbside green organics bin collections.

Provided incentive payments totalling $1.1 million to 11 major waste collectors in South Australia to encourage effective collection systems to increase recycling from the commercial and industrial sector.

The waste resource recovery and recycling industry received grants totalling $714 697 in 2008-09 to further develop the necessary infrastructure capacity within the Adelaide metropolitan area to divert waste from landfill into recycling and resource recovery. A review of this program will be finalised in 2009.

The regional implementation program provided grant agreements totalling $1 059 397 in 2008-09 to local government councils, the waste recovery and recycling industry, and community groups to further develop infrastructure capacity throughout rural/regional South Australia to divert waste from landfill into recycling and resource recovery. Further grant agreements totalling $1 405 397 has been allocated for distribution in 2009-10 and 2010-11. A review of this program will be finalised in 2009.

Continued funding of $200 000 in 2008-09 to UniSA in partnering the Zero Waste Centre of Excellence to be a focal point for waste related research and build long-term capacity to undertake activities at the higher end of the waste hierarchy.

Provided funding of $278 000 in 2008-09 with a major contribution of $200 000 from the Australian Government Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) for the implementation of waste management, resource recovery and recycling in key Anangu Pitjantjatjara Yankunytjatjara (APY) Lands communities and homelands. A further $300 000 has been provided by FaHCSIA to continue with this program in 2009-10.

The schools and communities program provided grant agreements totalling $305 000 in 2008-09 to charities, service clubs and other not for profit organisations involved with the recycling and recovery of reusable resources. A further $120 000 will be provided for this program in 2009-10.

Implemented legislation to ban lightweight single use shopping bags across South Australia effective from 4 May 2009. Undertook a comprehensive media campaign during 2008-09 to inform retailers and the general community of the impending ban of lightweight single use shopping bags.



2008-09 Target

2007-08 Actual

Reduction of waste to landfill 35 000 tonnes reduction

35 000 tonnes reduction



11.90

ZERO WASTE SA


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 1 557 1 525 1 523 1 291 Long service leave .................................................................... 45 45 45 74 Payroll tax ................................................................................ 85 84 84 82 Superannuation ......................................................................... 163 162 162 192 Other ......................................................................................... 13 15 15 117Supplies and services — General supplies and services .................................................. 4 852 5 126 4 476 2 462 Consultancy expenses .............................................................. 123 120 — 204Depreciation and amortisation expenses ...................................... — — — 56Grants and subsidies ..................................................................... 1 863 3 329 3 308 1 987Intra government transfers ........................................................... — 81 — 265Other expenses ............................................................................. 11 11 — 119

Total expenses 8 712 10 498 9 613 6 849

Income

Intra government transfers ........................................................... 11 623 12 219 11 655 11 490Other grants .................................................................................. 201 690 792 — Interest revenues ........................................................................... 550 550 80 470Other income ................................................................................ — — — 5

Total income 12 374 13 459 12 527 11 965

Net cost of providing services -3 662 -2 961 -2 914 -5 116

Net result 3 662 2 961 2 914 5 116

11.91

ZERO WASTE SA

Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 16 755 13 153 11 327 10 192Receivables ................................................................................... 55 55 26 55Other current assets ...................................................................... — — 12 —


Non current assetsPlant and equipment ..................................................................... 415 355 519 355

Total non-current assets 415 355 519 355

Total assets 17 225 13 563 11 884 10 602

Liabilities

Current liabilitiesPayables ........................................................................................ 929 929 327 929Employee benefits — Salaries and wages ................................................................... 39 39 23 39 Annual leave ............................................................................. 99 99 74 99 Long service leave .................................................................... 20 20 10 20Other current liabilities ................................................................. 18 18 21 18

Total current liabilities 1 105 1 105 455 1 105

Non current liabilitiesLong-term employee benefits — Long service leave .................................................................... 413 413 369 413Other non-current liabilities ......................................................... 14 14 29 14

Total non-current liabilities 427 427 398 427

Total liabilities 1 532 1 532 853 1 532

Net assets 15 693 12 031 11 031 9 070

Equity

Retained earnings ......................................................................... 15 693 12 031 11 031 9 070

Total equity 15 693 12 031 11 031 9 070


11.92

ZERO WASTE SA


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... 1 863 1 831 1 829 1 638Payments for supplies and services .............................................. 4 975 5 246 4 476 2 104Grants and subsidies ..................................................................... 1 863 3 329 3 308 1 987Intra government transfers ........................................................... — 81 — 265Other payments ............................................................................ 11 11 — —


Cash inflowsIntra government transfers ........................................................... 11 623 12 219 11 655 11 490Other grants .................................................................................. 201 690 792 — Interest received ........................................................................... 550 550 80 441Other receipts ............................................................................... — — — 5




Cash outflowsPurchase of property, plant and equipment .................................. 60 — — —

Cash used in investing activities 60 — — —

Net cash provided by (+) / used in (-) investing activities -60 — — —

Net increase (+) / decrease (-) in cash equivalents 3 602 2 961 2 914 5 942



11.93





Expenditure

The decrease in expenditure between 2008-09 Estimated Result and 2009-10 Budget is primarily as a result of:

• once-off expenditure in 2008-09 relating to carryovers ($855 000);

• once-off expenditure in 2008-09 for the media campaign to change community behaviour and attitudes to single use plastic shopping bags ($500 000); and

• once-off expenditure in 2008-09 funded from external revenues.

Revenue

The 2009-10 Budget for revenue is less than the 2008-09 Estimated Result primarily as a result of:

• once-off revenue received from the Commonwealth in 2008-09 ($500 000) for implementation of waste management practices in key APY Lands communities and homelands; and

• a decrease in funding from external sources supplementing Zero Waste SA programs.


The changes in net assets from 2008-09 to 2009-10 is attributed to the increase in deposits of cash and cash equivalents in the Waste to Resources Fund.

Other current assets and current and non-current liabilities are expected to remain broadly consistent.


The commentary regarding the income statement above provides information regarding the variations evident for the cash outflows and inflows from operating activities.

11.94

Portfolio: Families and Communities

Minister for Families and Communities Minister for Housing Minister for Ageing Minister for Disability

TABLE OF CONTENTS

PORTFOLIO SUMMARY


Portfolio net cost of services summary .............................................................................. 12.3

Investing payments summary............................................................................................. 12.3

Portfolio financial statements

Income statement................................................................................................... 12.4

Balance sheet......................................................................................................... 12.5

Cash flow statement .............................................................................................. 12.6

Financial commentary ........................................................................................................ 12.8


Ministerial Office resources ............................................................................................... 12.9

Agency summaries

Department for Families and Communities ....................................................................... 12.10

South Australian Housing Trust ......................................................................................... 12.48

PORTFOLIO: FAMILIES AND COMMUNITIES


Minister Agency Programs Sub-Programs 1. Housing 1.1 Public and Affordable

Housing Services and Supply

1.2 Housing Strategy and Policy

2. Families 2.1 Family Support and Child Safety

2.2 Guardianship and Alternative Care

2.3 Youth Justice

3. Disability 3.1 Office for Disability and Client Services

3.2 Disability Services

4. Ageing 4.1 Office for the Ageing 4.2 Domiciliary Care SA

5. Communities and Partners

5.1 Community Connect 5.2 Community Support

Services

Department for Families and Communities

6. Organisational Capability

6.1 People and Development 6.2 Business Services and

Improvement 6.3 Resources Management

The Hon. Jennifer Rankine Minister for Families and Communities Minister for Housing Minister for Ageing Minister for Disability

South Australian Housing Trust

1. Public and Affordable Housing Services and Supply

Nil

12.1

Administered items

In addition to the above responsibilities, the Portfolio administers the following items on behalf of the Minister:

• Charitable and Social Welfare Fund

• Client Trust Account

• Community Service Obligations

• Concessions

• Gamblers Rehabilitation Fund

• Home for Incurables Trust

• Minister’s Salary

• Supported Residential Facilities Fund

• State Emergency Relief Fund

Statutes

The Department of the Premier and Cabinet maintains a list of statutes applicable to the Ministers.

12.2

PORTFOLIO NET COST OF SERVICES SUMMARY

2009-10 Budget


2008-09 Budget

2007-08 Actual

Agency $000 $000 $000 $000 Department for Families and Communities............................................ 1 006 736 809 886 779 430 755 010

South Australian Housing Trust .............. 328 339 351 072 291 207 230 262

Total 1 335 075 1 160 958 1 070 637 985 272 Intra-agency receipts................................ -649 301 -388 858 -257 621 -254 083

Portfolio total 685 774 772 100 813 016 731 189

Note: The sum of the net expenditure amounts for the Department for Families and Communities and the South Australian Housing Trust exceeds the values of net expenditure amounts consolidated for the Families and Communities Portfolio Statements. The variance results from intra-agency transactions. All state government receipts are received by the Department for Families and Communities agency and then transferred to the South Australian Housing Trust. To reflect the true net cost to the Government of South Australia for the services provided by the portfolio, the component of intra-agency receipts reflecting state government appropriation has been excluded as reflected in the Portfolio total stated above.

INVESTING PAYMENTS SUMMARY

2009-10 Budget


2008-09 Budget

2007-08 Actual

Agency $000 $000 $000 $000 Department for Families and Communities............................................ 7 957 11 885 17 475 5 129 South Australian Housing Trust .............. 372 246 210 993 213 404 120 011

Total 380 203 222 878 230 879 125 140

12.3

FAMILIES AND COMMUNITIES


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 338 211 333 099 318 420 312 238 Long service leave .................................................................... 8 650 8 131 9 904 9 210 Payroll tax ................................................................................ 18 321 17 952 17 678 19 457 Superannuation ......................................................................... 34 967 34 523 32 126 31 971 Other ......................................................................................... 3 683 3 612 5 004 5 650Supplies and services — General supplies and services .................................................. 377 082 372 886 323 391 342 776 Consultancy expenses .............................................................. 1 495 1 488 2 178 995Depreciation and amortisation expenses ...................................... 90 823 85 768 79 744 75 835Borrowing costs ............................................................................ 38 754 39 121 44 382 44 645Grants and subsidies ..................................................................... 393 502 397 991 398 118 345 741Intra government transfers ........................................................... 26 154 30 121 25 733 30 788Other expenses ............................................................................. 181 046 177 361 176 765 167 635

Total expenses 1 512 688 1 502 053 1 433 443 1 386 941

Income

Commonwealth revenues ............................................................. 6 082 150 748 285 023 287 625Intra government transfers ........................................................... 496 494 246 845 13 266 16 670Other grants .................................................................................. — — — 61Fees, fines and penalties ............................................................... 232 225 749 835Sales of goods and services .......................................................... 274 326 270 216 268 332 281 593Interest revenues ........................................................................... 5 617 10 454 3 675 13 315Net gain or loss from disposal of assets ....................................... 34 836 42 434 42 434 38 535Other income ................................................................................ 9 327 9 031 6 948 17 118

Total income 826 914 729 953 620 427 655 752



Income — Appropriation ........................................................................... 1 006 484 789 314 779 430 743 343 Other income ............................................................................ — 6 668 — 692Expenses — Tax equivalent .......................................................................... — — — 5 496 Cash alignment ......................................................................... — 18 031 — —

Net income from / expenses to SA Government 1 006 484 777 951 779 430 738 539

Net result before restructure(s) 320 710 5 851 -33 586 7 350

Net income from / expenses from administrative restructure(s) .. — — — 3 017

Net result after restructure(s) 320 710 5 851 -33 586 10 367

12.4


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 362 208 261 174 155 182 166 544Receivables ................................................................................... 38 585 39 672 34 585 40 759Inventories .................................................................................... 100 131 100 131 61 669 100 131Financial assets ............................................................................. — — 1 531 — Other current assets ...................................................................... 616 618 342 618Non-current assets class held for sale .......................................... 14 203 14 203 24 123 14 203


Non current assetsInvestment properties ................................................................... — — 1 139 — Land and improvements ............................................................... 9 115 749 8 779 177 7 849 711 7 676 155Plant and equipment ..................................................................... 21 425 20 520 24 595 13 616Intangible assets ........................................................................... 4 576 4 576 8 759 4 576Other non-current assets ............................................................... 3 192 3 192 846 3 192

Total non-current assets 9 144 942 8 807 465 7 885 050 7 697 539

Total assets 9 660 685 9 223 263 8 162 482 8 019 794

Liabilities

Current liabilitiesPayables ........................................................................................ 56 672 55 861 45 829 54 729Short-term borrowings ................................................................. 193 270 106 669 91 359 24 399Employee benefits — Salaries and wages ................................................................... 8 248 8 248 6 796 8 248 Annual leave ............................................................................. 28 191 27 933 25 614 27 931 Long service leave .................................................................... 11 510 10 080 13 502 9 046 Other ......................................................................................... 882 882 1 038 882Short-term provisions ................................................................... 10 939 10 254 10 854 9 569Other current liabilities ................................................................. 19 778 19 778 10 276 19 785


Non current liabilitiesLong-term borrowings .................................................................. 430 225 623 495 641 393 730 167Long-term employee benefits — Long service leave .................................................................... 51 417 48 361 46 087 46 954Long-term provisions ................................................................... 21 009 20 633 18 757 20 297Other non-current liabilities ......................................................... 4 845 5 276 5 239 5 707



Net assets 8 823 699 8 285 793 7 245 738 7 062 080

Equity

Contributed capital ....................................................................... 43 799 41 888 41 888 26 991Retained earnings ......................................................................... 2 638 188 2 279 478 1 609 549 2 238 689Asset revaluation reserve ............................................................. 6 141 712 5 964 427 5 594 301 4 796 400

Total equity 8 823 699 8 285 793 7 245 738 7 062 080

Balances as at 30 June end of period.12.5



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... 399 088 393 623 379 437 383 934Payments for supplies and services .............................................. 376 191 372 028 323 223 336 482Interest paid .................................................................................. 39 241 39 121 44 760 44 151Grants and subsidies ..................................................................... 393 502 397 991 398 118 345 741GST paid ...................................................................................... — — — 58 501Intra government transfers ........................................................... 26 154 30 121 25 733 30 788Other payments ............................................................................ 164 709 161 168 158 866 146 734

Cash used in operations 1 398 885 1 394 052 1 330 137 1 346 331

Cash inflowsIntra government transfers ........................................................... 496 494 246 845 13 266 16 670Commonwealth receipts ............................................................... 6 082 150 748 285 023 287 625Other grants .................................................................................. — — — 7 321Fees, fines and penalties ............................................................... 232 225 749 835Sales of goods and services .......................................................... 269 372 265 359 261 811 269 839Interest received ........................................................................... 5 617 10 454 3 675 12 580GST received ................................................................................ — — — 57 319Other receipts ............................................................................... 9 328 9 030 8 034 18 844


SA GOVERNMENT:

Appropriation ............................................................................... 1 006 484 789 314 779 430 743 343Other receipts ............................................................................... — 6 668 — 692Payments — Cash alignment ......................................................................... — 18 031 — —

Net cash provided by SA Government 1 006 484 777 951 779 430 744 035



Cash outflowsPurchase of property, plant and equipment .................................. 380 203 222 878 230 879 120 278Purchase of intangibles ................................................................. — — — 4 858Advances paid .............................................................................. — — — 4


Cash inflowsProceeds from sale of property, plant and equipment .................. 191 271 261 830 261 830 159 347Repayment of advances ................................................................ — — — 182

Cash generated from investing activities 191 271 261 830 261 830 159 529

Net cash provided by (+) / used in (-) investing activities -188 932 38 952 30 951 34 389

12.6



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsRepayment of borrowings ............................................................ 106 669 24 402 88 802 104 028

Cash used in financing activities 106 669 24 402 88 802 104 028

Cash inflowsCapital contributions from SA Government ................................ 1 911 14 897 14 897 7 517Proceeds from borrowings ........................................................... — — — 19 043Proceeds from restructuring activities .......................................... — -1 377 — —

Cash generated from financing activities 1 911 13 520 14 897 26 560

Net cash provided by (+) / used in (-) financing activities -104 758 -10 882 -73 905 -77 468

Net increase (+) / decrease (-) in cash equivalents 101 034 94 630 -21 103 25 658



12.7

FINANCIAL COMMENTARY

On 1 January 2009, the Intergovernmental Agreement on Federal Financial Relations came into operation. Under the new arrangements the Department of Treasury and Finance (DTF), rather than DFC will be the recipient of Commonwealth funding for National Partnership payments and National Specific Purpose payments. The financial statements recognise that funding from 1 January 2009 is provided to DFC in the form of appropriation and other transfers from DTF, rather than revenue directly from the Commonwealth.



The Families and Communities Portfolio is comprised of two separate entities, as listed below with transactions occurring between each of the entities:

• Department for Families and Communities (DFC); and

• South Australian Housing Trust (SAHT).

The total expenses of the portfolio are forecast to increase by $11.0 million to $1.513 billion compared with the 2008-09 Estimated Result of $1.502 billion. This is mainly due to additional expenditure associated with the National Partnership Agreements on Homelessness and Remote Indigenous Housing, as well as additional spending in programs to support disabled and elderly South Australians. These increases are partially offset by once off funding received in 2008-09 for several programs and the impact of savings measures announced as part of the 2009-10 Budget.

The total income from government to be received by the portfolio for 2009-10 is forecast to increase by $228.5 million when compared to the 2008-09 Estimated Result. This in large part reflects the above change in Commonwealth funding arrangements.

There is a large improvement in the net result of the 2009-10 Budget compared to the 2008-09 Estimated Result ($314.9 million), mainly due to the additional revenue received for social housing investment under the Nation Building — Economic Stimulus Plan ($304.2 million in 2009-10 compared with $19.5 million in 2008-09).

12.8

WORKFORCE SUMMARY

FTEs as at 30 June

Agency 2009-10

Budget(a) 2008-09

Estimated result 2007-08

Actual(b)

Department for Families and Communities 4 836.2 4 886.7 4 678.0 South Australian Housing Trust 927.6 927.6 823.4

Total 5 763.8 5 814.3 5 501.4 (a) The 2009-10 Budget and 2008-09 Estimated Result reflect the established FTE caps. (b) The 2007-08 Actual FTEs are based on preliminary data collected by the Office for Ethical Standards and Professional Integrity

(Department of the Premier and Cabinet). 2007-08 Actual FTEs include casual employees.


2009-10 Budget

Cost of provision Minister $000 FTEs The Hon. Jennifer Rankine 1 451 10.0

12.9

TABLE OF CONTENTS

AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Objective ......................................................................................................................................... 12.11





1. Housing.......................................................................................................................... 12.15

2. Families.......................................................................................................................... 12.17

3. Disability........................................................................................................................ 12.21

4. Ageing............................................................................................................................ 12.25

5. Communities and Partners ............................................................................................. 12.28

6. Organisational Capability .............................................................................................. 12.31



Balance sheet......................................................................................................................... 12.36







12.10



Objective

The Department for Families and Communities (DFC) is responsible for setting strategic priorities, policy development and administration of the public and community housing, child protection, ageing and community care services and disability services.



Objective 1: Housing

• Work with the Commonwealth to support institutional investment in affordable rental housing through initiatives such as the National Rental Affordability Scheme

• Negotiate and implement housing reforms as identified in the National Affordable Housing Agreement

• Support national reform to homelessness programs • Increase the supply and quality of housing on the

Anangu Pitjantjatjara Yankunytjatjara (APY) Lands and in key regional centres

• Expansion of a new public housing like service model throughout discrete Aboriginal communities in South Australia in line with the agreed implementation plan

• Commence first year implementation of the National Partnership Agreement for Remote Indigenous Housing

• Commence implementation of the Nation Building-Economic Stimulus Plan by completing upgrades to existing public housing and commencing the construction of new social housing dwellings

• Implement a preferred provider program to support the growth of the not-for-profit social housing sector

Objective 2: Families

• Strengthen the collaboration between Children’s Centres, Family Service Coordinators and Families SA District Centres

• Work intensively with families to prevent child placements into alternative care

• Increase the diversity and range of child placement options across family based and non-family based care

• Improve safety, health and education outcomes for children under Guardianship of the Minister

• Implement a strategy to reduce the frequency and seriousness of offending by young people supervised by Families SA

• Implement a model of Aboriginal community engagement and consultation during services planning and decision making

• Progress the replacement of the secure youth training centres • Construct and commission two new 12 bed Community

Residential Care facilities Objective 3: Disability • Develop sustainable policy options to improve service choices

for people with disabilities • Implement service improvements arising out of the National

Disability Agreement and other national initiatives

Objective 1: Housing

• Increased the supply of affordable housing through partnerships and new housing developments

• Negotiated and commenced implementation of: − the Commonwealth and state funded National Rental

Affordability Scheme and secured 422 new rental outcomes for South Australia in the first round

− a new National Affordable Housing Agreement − a new National Partnership Agreement on Social Housing

providing $30 million in capital investment − a new National Partnership Agreement on Homelessness

with the Commonwealth Government and finalised the future directions for homelessness services

• Negotiated a new Remote Indigenous Housing National Partnership Agreement with the Commonwealth Government

• Commenced development of a Ladder youth housing project linking accommodation to education, training and employment

• Commenced implementation of a new housing service model on the APY Lands

• Obtained Commonwealth approval for Element 1, Stage 1 of the Nation Building-Economic Stimulus Plan for construction of new social housing dwellings and undertook a Request for Proposals process from developers and builders to contribute to the Stage 2 new construction submission

• Obtained Commonwealth approval for Element 2 of the Nation Building-Economic Stimulus Plan that will result in upgrades to existing public housing dwellings

• Negotiated agreements securing over 400 new affordable homes as part of the implementation of the government’s policy for 15 per cent of new developments to include affordable housing

Objective 2: Families

• Increased the number of social workers on the APY Lands in response to the Mullighan Report

• Strengthened the whole of government response to children’s safety and wellbeing

• Increased the capacity of non-government community services sector to work with families to keep children safe, prevent children’s entry to alternative care and to return children safely home

• Increased support to foster carers and relative and kinship carers

12.11


• Expand the suite of accommodation options for people with disabilities

• Develop plans for service improvement in the disability sector in partnership with non-government disability service providers

• Finalise the long term reform plan for the Supported Residential Facility Sector and implement strategies to improve outcomes for residents

• Continue implementation of strategies aimed at achieving the following South Australia’s Strategic Plan targets by 2014: − double the number of people with disabilities

appropriately housed and supported in community based accommodation

− increase by 400 the number of people with disability involved in day options programs

− double the number of people with disabilities employed in the public sector

Objective 4: Ageing

• Continue to expand basic Home and Community Care maintenance and support for frail older people and their carers

• Continue to implement initiatives and projects from Improving with Age — Our Ageing Plan for South Australia, further develop and implement across government reporting systems and develop research initiatives

• Consolidate the Access2Home Care demonstration project to further streamline entry to the community care service system

Objective 5: Communities and Partners

• Continue to build on the positive partnerships with the non-government community services sector through the Human Services Peak Forum

• Strategically address training needs of the non-government community services sector

• Implement the Stronger Families, Safer Children Program, non-government organisations Practice Guidelines and Partnership Forums

• Finalise concessions administration reform to streamline client application processes

• Develop the Strategic Plan for South Australian Carers 2009-2012

• Implement service standards and increase the number of clients engaging with gambling help services

• Support the government’s target of maintaining the level of volunteering at 50 per cent participation rate or higher, by improving the contribution of volunteers in DFC

Objective 6: Organisational Capability • Continue to increase the number of people with a disability

employed by the department through the promotion of the Disability Employment register

• Continue to promote executive opportunities to women and maintain 50 per cent representation

• Improve retention of Aboriginal and Torres Strait Islander employees through continuing programs that provide culturally relevant support

• Furthered the implementation of Keeping them Safe — In Our Care strategy

• Improved the management and supervision of Youth Justice clients, including those involved in chronic offending and Aboriginal specific interventions

• Progressed the replacement of the secure youth training centres Objective 3: Disability • Moved approximately 80 people to supported community

accommodation or more appropriate accommodation • 85 new school leavers entered day options programs • Developed and adopted a Disability Register to support

recruitment of skilled personnel with a disability • Implemented the Person Centred Active Support program in a

further 15 disability accommodation services • Developed Service Standard 13, A Cultural and Competency

and Inclusion Standard to improve access to disability services for Aboriginal and Torres Strait Islander people

• Implemented a new DFC equipment program that manages the purchase, recycling, replacement and repair of equipment to both Domiciliary Care SA and Disability SA clients

• Increased client subsidies for residents of supported residential facilities

Objective 4: Ageing

• Continued to implement the second round of kick-start projects from Improving with Age — Our Ageing Plan for South Australia and continued to build on across government reporting systems and develop research initiatives

• Continued expansion of basic Home and Community Care maintenance and support for frail older people and their carers

• Commenced the Access2HomeCare demonstration project to simplify entry to the community care service system and streamline assessment and referral processes for older people

Objective 5: Communities and Partners

• Enhanced community services to Aboriginal families with children and Aboriginal youth

• Commenced implementation of the Community Engagement Charter and Directions Statement

• Implemented a performance management framework for community grants

• Provided one-off grants for projects supporting the most disadvantaged in the community through Community Benefit SA

• Increased the number of DFC funded organisations engaging in a quality improvement program

• Promulgated the Carers Recognition Act 2005 • Implemented the new structure of the Gambling Help Services

across South Australia • Activated the Volunteers Emergency Recovery Information

System to respond to volunteers in the heat-wave Objective 6: Organisational Capability • Continued to improve service access to customers by

implementing Connected Service Centres • Further reduced energy usage across the portfolio • Continued to increase the number of people with a disability

employed by the department through the promotion of the Disability Employment register

• Continued to promote executive opportunities to women and maintain 50 per cent representation

12.12



2009-10Budget


2008-09 Budget

2007-08 Actual

Program $000 $000 $000 $000 1. Housing ...................................................... 298 220 199 337 193 261 182 224 2. Families ...................................................... 227 083 225 643 219 135 208 665 3. Disability .................................................... 322 910 223 638 214 170 216 781 4. Ageing........................................................ 71 521 69 220 67 901 63 546 5. Communities and Partners.......................... 25 026 24 754 19 855 19 923 6. Organisational Capability........................... 61 976 67 294 65 108 63 871

Total 1 006 736 809 886 779 430 755 010 Note: The 2009-10 Budget reflects a change in management of funding received from the Commonwealth Government. A significant proportion of this funding is now received by the Department of Treasury and Finance and provided to DFC as appropriation. This change results in an increase in the net cost of services for certain programs in the 2009-10 Budget.

12.13


2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

New works Domiciliary Care SA — Northern Office... 2 100 250 — — Office Accommodation .............................. 600 540 — —

Total new works 2 700 790 — —

Works in progress

Fitout of Riverside Building....................... — 450 450 — New Prisons and Secure Facilities-Project Implementation............... — — 253 — Community Residential Care Facilities ..................................................... 3 233 4 193 5 693 115 Connected Service Centre — Mount Gambier...................................................... 425 700 1 040 281 Reorganisation of services relating to Independence and Community Connection ................................................. — — 2 000 — Client and Case Management System ........ 1 164 3 528 3 000 1 249 Metropolitan Domiciliary Care .................. — — 3 962 — Strathmont Centre....................................... — 980 796 8 Child Protection Review — Staff Accommodation ......................................... — 48 — 178 Families SA — Accommodation and Security ...................................................... — 111 — 30 Youth Training Centres — Sustainment..... — 575 — 1 Barkuma — Essential Capital Works ......... — 110 — — Magill Secure Care Sustainment ................ — 200 — — Client Management Engine ........................ 260 — — — Desktop Replacement................................. 175 200 — — Other DFC Capital Works .......................... — — — 2751


Minor works

Domiciliary Care SA.................................. — — 55 321 Planning & Feasibility................................ — — 226 195

Total minor works — — 281 516


12.14


Program information

Program 1: Housing

Description/Objective: Develop and implement better high need housing and service responses for people at risk or in high need, and to work with others to expand and improve affordable housing choices across the state.

This program encompasses the management of grants for housing services to low income households, people in high need and supported accommodation assistance for people in crisis. This includes grants for the provision of private rental services, public, Aboriginal and community managed housing, and regulation of community housing.


Program 1: Housing 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 68 795 67 395 66 048 62 919 Supplies and services........................................ — — — 23 Grants and subsidies ......................................... 678 217 385 988 284 416 271 938 Other................................................................. — 212 210 1 100

Total expenses 747 012 453 595 350 674 335 980

Income Sale of goods and services................................ 68 795 67 607 61 582 59 549 Commonwealth revenue ................................... — 48 242 92 545 91 002 Other................................................................. 379 997 138 409 3 286 3 205

Total income 448 792 254 258 157 413 153 756

Net cost of providing services 298 220 199 337 193 261 182 224 Note: The 2009-10 Budget reflects a change in management of funding received from the Commonwealth Government. A significant proportion of this funding is now received by the Department of Treasury and Finance and provided to DFC as appropriation. This change results in an increase in the net cost of services for this program in the 2009-10 Budget.

12.15


Sub-program: 1.1 Public and Affordable Housing Services and Supply(a)(b)

Grants paid for the provision and management of public and Aboriginal housing; private rental assistance to high need and low income households; funding and regulation of community housing and the provision and management of transitional accommodation to assist Aboriginal people and families who are homeless.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary Performance information for Public and Affordable Housing Services and Supply are included under program 1 for the South Australian Housing Trust.

Footnotes (a) Previously named Public and Affordable Housing Service.

(b) Combines previously reported sub-programs 2.1, Supported Accommodation Assistance Program and 2.2, High Need Public and Affordable Housing Services.

Sub-program: 1.2 Housing Strategy and Policy(a)

Provide housing strategy, policy development and advice (including financial advice) to the South Australian Housing Trust.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary Performance information for Housing Strategy and Policy are included under program 1 for the South Australian Housing Trust.

Footnotes (a) Includes previously reported Sub-program 2.3, High Need Housing Strategy and Policy.

12.16


Program information

Program 2: Families

Description/Objective: Provision of services to strengthen and support families to keep children and young people safe, nurtured and able to realise their potential. Provision of services to Aboriginal children, young people, families and communities to strengthen capacity and reduce over representation of Aboriginal children and young people in care and protection and youth justice activities. Working in partnership with Aboriginal communities to address family violence.


Program 2: Families 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 115 522 115 944 113 329 110 396 Supplies and services........................................ 29 818 29 025 30 063 28 038 Grants and subsidies ......................................... 80 072 81 021 76 367 70 462 Depreciation and amortisation .......................... 1 241 1 252 1 244 1 044 Other................................................................. 3 100 3 010 3 009 3 961

Total expenses 229 753 230 252 224 012 213 901

Income Sale of goods and services................................ 517 198 90 1 910 Fees, fines and penalties ................................... 380 266 363 323 Commonwealth revenue ................................... 1 418 853 853 1 098 Other................................................................. 355 3 292 3 571 1 905

Total income 2 670 4 609 4 877 5 236


12.17


Sub-program: 2.1 Family Support and Child Safety(a)

Provision of services to strengthen and support families to keep children and young people safe, nurtured and able to realise their potential. Assess family circumstances and risk to child’s safety. Provision of services to assist families to improve their capacity to manage their finances. Provision of emergency financial assistance, financial counselling, domestic violence assistance and poverty prevention programs. Connecting families to services across government and within non-government agencies to address family need. Working intensively with families to prevent child placements into alternative care. Seeking court orders for the care and protection of children who are unable to be safely cared for by their families.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary There was a nine per cent increase in screened notifications over 2007-08. Contributing factors include the increased complexity of family situations where such issues as drug and alcohol misuse, domestic violence, financial difficulties, mental illness and homelessness impact on a family’s ability to safely care for children. While notifications continue to increase, the number of confirmed cases of child abuse and neglect has remained relatively constant. The percentage of confirmed child protection notifications involving Aboriginal children and families has also remained constant.

The number of emergency financial assistance payments provided has fallen below target during the 2008-09 financial year. However, given the potential impact on families of the economic downturn, the target for the 2009-10 financial year has been maintained close to previous targets.



2008-09 Target

2007-08 Actual

No. of child protection notifications screened 24 750 22 723 22 540 20 847

No. of child protection notifications confirmed

2 300 2 300 2 300 2 331

% of confirmed child protection notifications involving Aboriginal children and families(b)

30% 32% 21% 32%

% of children who were the subject of a confirmation of abuse during the previous year who were the subject of a subsequent confirmation within 12 months

21% 22% 21% 22%

No. of financial support services provided 21 000 20 483 22 000 20 439

No. of financial counselling consultations provided to Aboriginal and/or Torrens Strait Islander clients

4 250 4 100 4 400 4 033

No. of Emergency Financial Assistance payments provided

26 500 24 200 27 000 27 027

No. of Emergency Financial Assistance payments provided to Aboriginal and/or Torrens Strait Islander clients

6 000 5 750 6 500 6 317

No. of Domestic Violence Assistance payments provided

2 200 2 173 2 300 2 279

No. of Domestic Violence Assistance payments provided to Aboriginal and/or Torrens Strait Islander clients

600 550 520 496

Footnotes (a) Previously reported Sub-program 4.4, Anti Poverty Services merged into this sub-program.

(b) Anticipated impacts of increased capacity in family support services in halting the increasing involvement of Aboriginal children and families has not yet been realised.

12.18

Sub-program: 2.2 Guardianship and Alternative Care

Provision of case management and support services to children and young people under the Guardianship of the Minister. Provision of alternative care settings, which promote safety, stability and ‘real family’ environments. Contracting with non-government service providers for home based care providers, stabilisation and treatment centres and small congregate care settings. Recruiting, training and supporting relative and kinship carers. Managing adoption processes to encourage success in family placements.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The increase in the number of children placed under Guardianship of the Minister orders is reflective of the increased complexity of child and family situations and the cumulative effect of children being placed on long-term orders at an earlier age and staying in care for longer periods of time. Slightly fewer children have been placed on short-term custody or guardianship orders, and a more significant increase has occurred in the number of children being placed under the Guardianship of the Minister to 18 years.

There has been a corresponding increase in the number of children in alternative care placements, although the rate of increase this financial year is less than in previous financial years (8.0 per cent increase in 2008-09 compared to 9.7 per cent in 2007-08). Families SA strategy of placing children as a first preference with their relatives and kin has resulted in an increased number of children in relative and kinship placements.

Keeping them Safe — In Our Care reforms are being implemented.



2008-09 Target

2007-08 Actual

No. of children under the Guardianship of the Minister until 18 years of age, as at 30 June

2 085 1 800 1 556 1 551

No. of children under the Guardianship of the Minister for up to 12 months as at the 30 June

420 395 480 397

% of children under Guardianship of the Minister who are Aboriginal

25% 25% 22% 24%

No. of placements made for alternative care (excluding respite placements)

2 400 2 388 2 500 2 452

No. of children in alternative care as at 30 June:

• placed with relatives or kin(a) 860 755 674 663

• placed with foster carers(a) 1 000 970 1 053 915

• non-home based placements 240 263 203 263

• all placements 2 100 1 988 1 930 1 841

% of children in alternative care placed with relatives or kin

43% 38% 35% 36%

% of children exiting alternative care after less than 12 months who had three placements or less

90% 88% 80% 80%

% of children exiting alternative care after more than 12 months who had three placements or less

62% 61% 60% 57%

% of aboriginal children placed in accordance with the Aboriginal Child Placement Principle

80% 76% 80% 78%

No. of adoption orders granted 38 38 34 41

No. of active foster carers at 30 June 1 090 1 020 900 941

Footnotes (a) Only includes children for whom a client payment was made.

12.19

Sub-program: 2.3 Youth Justice

Provision of services to assist children and young people who have offended to positively re-engage with their community. Facilitating restitution to victims and communities as appropriate. Reducing the risk of offending and re-offending. Provision of secure youth training facilities for young people who are detained.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The number of young people placed on community based orders has increased slightly this financial year, while the number of young people who have had one or more admissions to the secure youth training centres has remained relatively constant.

Families SA is participating in the across-government strategy led by the Attorney-General’s Department involving Aboriginal elders and key service groups in developing solutions to support Aboriginal youth.

Services across government agencies are joining together in their efforts to reduce chronic offending.



2008-09 Target

2007-08 Actual

No. of youth justice clients who had one or more community based orders issued

720 730 720 714

No. of youth justice clients who had one or more secure youth training centre admissions

520 530 540 525

No. of 10–12 year olds admitted to a secure youth training centre

10 11 20 14

No. of Aboriginal young people who had one or more admissions to a secure youth training centre

175 180 155 197

% of sentences that are the second or subsequent sentences in the young person’s youth justice contact with Families SA

55% 60% 35%(a) 57%

% of sentences involving Aboriginal young people that are the second or subsequent sentence in the young person’s youth justice contact with Families SA

60% 65% 32%(a) 64%

Footnotes (a) 2008-09 Target was based on an error in 2007-08 data extraction.

12.20


Program information

Program 3: Disability

Description/Objective: To promote and develop opportunities for people with a disability to actively engage in the community. To ensure delivery, both directly and through partnership with non-government organisations, of services to support people with a disability and to enhance their options and choices.


Program 3: Disability 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 119 956 120 112 113 442 112 842 Supplies and services........................................ 83 396 80 351 80 806 71 779 Grants and subsidies ......................................... 134 312 129 454 120 338 136 095 Depreciation and amortisation .......................... 411 411 1 579 958 Other................................................................. 3 091 3 849 3 193 4 312

Total expenses 341 166 334 177 319 358 325 986

Income Sale of goods and services................................ 12 037 12 020 13 466 14 177 Commonwealth revenue ................................... 3 447 49 146 87 271 90 127 Other................................................................. 2 772 49 373 4 451 4 901

Total income 18 256 110 539 105 188 109 205

Net cost of providing services 322 910 223 638 214 170 216 781 Note: The 2009-10 Budget reflects a change in management of funding received from the Commonwealth Government. A significant proportion of this funding is now received by the Department of Treasury and Finance and provided to DFC as appropriation. This change results in an increase in the net cost of services for this program in the 2009-10 Budget.

12.21


Sub-program: 3.1 Office for Disability and Client Services

Works in partnership with Disability Services, the non-government sector and other parts of government in relation to services for people with disabilities in South Australia.

Leads inter-governmental relations for the disability sector, contributing to the national reform agenda and South Australia’s participation in inter-governmental agreements and negotiations. Leads strategic policy and planning, resource allocation and program development across the disability sector. Manages the relationship with the non-government disability services sector, including grant funding and performance monitoring. Leads the Promoting Independence strategy, which promotes access and inclusion for all people with disabilities across government and the community.

Coordination of programs that sustain the Supported Residential Facilities (SRF) pension only sector including assessing the needs of new entrants and reviewing the needs of existing residents to facilitate their access to mainstream services. Oversees payment and accountability for the board and care subsidy provided to proprietors of SRF and the coordination of responses to support residents.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The third Commonwealth States and Territories Disability Agreement was extended to 31 December 2008 while negotiations for the next National Disability Agreement between the Commonwealth and states and territories were finalised. The new National Disability Agreement commenced 1 January 2009, in line with the Council of Australian Governments specific purpose payment reforms.

The National Disability Agreement includes an expansive reform agenda for disability services nationally and these reform priorities will be a key focus for 2009-10.

The new National Disability Agreement now also incorporates the Disability Assistance Package bilateral, which was finalised in October 2008. The bilateral involved the transfer of the Commonwealth Government’s Older Carers initiative to the South Australian Disability System. Service agreements with non-government agencies aimed at increasing their capacity to deliver respite have been transferred to Disability SA, a system has been put in place to provide continuity to carers who had been receiving support under the Commonwealth initiative and we continue to aim to deliver the additional new services included in the bilateral agreement.

Since April 2008, the Companion Card Program has issued cards to 2056 people with disabilities in South Australia. There are now over 100 businesses in South Australia that accept the Companion Card.

Progress was made towards meeting the South Australia’s Strategic Plan targets as follows:

• 85 new school leavers entered day options programs in 2008-09, contributing toward the overall target of 400 extra day options placements by 2014;

• the Promoting Independence strategy facilitated 50 people with disabilities gaining employment in the public sector, with an additional 100 people being recruited onto the Disability Register; and

• an extra 27 group home places were created across both the government and non-government sectors in the first six months of 2008-09, contributing to the target to increase community based accommodation and support for people with disabilities.

Sustaining the SRF sector has been a key strategy in the reform agenda for the sector. In recognition of viability issues, the government provided a supplementary payment of $6.24 per resident per day for 27 privately operated SRFs. This effectively doubled the board and care subsidy available to private operators.

In addition to the priorities discussed above, the following initiatives are planned for 2009-10:

• continue work on improving choices and control for people with disabilities which includes furthering individualised, self management options for people with disabilities;

• implementation of a single SRF referral point, improved support and allied health services and individualised service planning for SRF residents. A strategic implementation plan for the SRF sector will also be developed to move forward with medium and longer term reform goals which address viability, quality and service standards; and

• implementation of new key performance indicators (KPIs) and performance management processes for non-government organisations receiving funding from the Office for Disability and Client Services. The KPIs focus on service quality improvements and increasing client participation in service planning.



2008-09 Target

2007-08 Actual

No. of non-government accommodation support services:

• institutional/ large residential facilities 310 340 320 350

• community accommodation and care 670 590 560 585

• in home support and alternative care 3 812 3 750 3 820 3 610

continued

12.22

Sub-program: 3.1 Office for Disability and Client Services continued



2008-09 Target

2007-08 Actual

No. of non-government community support services

6 700 6 680 6 000 6 187

No. of non-government community access services

7 600 7 540 7 560 7 491

No. of non-government respite services 2 230 2 180 2 050 2 060

% of service providers with national service standards included in funding and service agreements

100% 100% 100% 100%

No. of people with exceptional needs successfully transitioning to the community

265 260 250 235

No. of SRF residents assisted to achieve improved quality of life through the provision of Sustainment Subsidy (Board and Care)

868 881 882 922

No. of SRF residents with high and complex needs(a)

340 357 365 388

Implementation of Supported Accommodation Demonstration Projects (SADP)

9 10 11 10

Recurrent expenditure for SADP support services

$595 000 $583 092 $590 634 $568 316

No. of participants with complex needs and psychiatric disability to whom supported housing services are provided

165 165 130 165

Footnotes (a) In October 2008, responsibility for case management and services for residents over 65 years of age with high and complex needs

was transferred to Sub-program 4.1, Office for the Ageing as part of the Home and Community Care program.

12.23

Sub-program: 3.2 Disability Services

Disability Services is the Government of South Australia service provider for people with disabilities. Responsible for providing services across the state, which include supported accommodation, service coordination for adults and children, families and carers and specialist services including allied health, therapy and community nursing.

Supported accommodation services cover lifestyle and community support, centre based accommodation, in-home support, developmental activities and supporting people with disabilities currently living in institutional or congregate settings to return to the community.

Service coordination provides services for people with disability and their families through regional offices. Services are aimed at enhancing the development of people with a disability and to support their participation in family and community life.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary There was further consolidation of the Disability Services service delivery model (referred to as Disability SA) in 2008-09. New programs and service models were implemented for children with disabilities under the Guardianship of the Minister, families of children with Autism Spectrum Disorder, and intensive case management and respite for children with significant and complex health needs. Disability Services, together with Housing SA and Families SA, established a DFC Connected Service Centre in Mount Barker.

Approximately 80 people with a disability moved from institutions to supported community accommodation or more appropriate accommodation during this period. This includes people moving from Strathmont Centre and younger people moving from residential aged care. As part of Disability Services’ commitment to providing quality services that are responsive to the needs of individuals, the Person Centred Active Support model was implemented in 15 accommodation services.

Approximately 72 people with critical needs were assisted by the Accommodation Placement Panel into appropriate supported accommodation options in the community, including being supported at home.

From July 2008, a new DFC Equipment Program was established through the consolidation of the former Disability SA and Domiciliary Care SA equipment programs. This has delivered a more efficient and effective service for people with disabilities who require equipment or home modifications. This service is now part of Sub-program 4.2, Domiciliary Care SA.

Major initiatives for Disability Services for 2009-10 will include:

• further implementation of the Person Centred Active Support model in 20 accommodation services; • continuing to assist people with disabilities in institutional care to return to the community; • development of a suite of accommodation models that respond to individual need; • streamline intake and service coordination services to ensure timely and appropriate responses to people with a disability requiring

assistance; • improve access to, and delivery of, respite services; and • implement the recommendations of the Management Assessment Panel/ Exceptional Needs Unit review to improve the quality of

services to people with high and complex needs.



2008-09 Target

2007-08 Actual

No. of accommodation support services:

• institutional/ large residential facilities 223 266 329 408

• community accommodation and care 645(a) 615 580 473

No. of community support services:(b) 18 000 17 000 11 000 16 037

• case management services(c) 11 000 10 500 n.a. 9 841

No. of respite services 100 87 85 64

No. of clients receiving information services 21 000 19 000 17 000 16 788

No. of new pieces of equipment/ home modifications supplied(d)

1 400 1 391 940 1 078

No. of repair and maintenance requests 5 000 5 250 5 200 3 218

Footnotes (a) Now includes Younger People In Residential Aged Care program clients.

(b) Totals include case management services.

(c) New indicator.

(d) From 2009-10, the equipment provision model will change from providing new equipment most of the time, to one of reusing suitable equipment already owned by the department.

12.24


Program information

Program 4: Ageing

Description/Objective: To work with partners and directly in the community, to ensure opportunities, services and support are available for older South Australians and to recognise and promote the important contribution older South Australians make in the community.


Program 4: Ageing 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 43 067 42 628 41 158 44 030 Supplies and services........................................ 24 291 24 798 15 469 25 311 Grants and subsidies ......................................... 120 972 111 698 117 457 100 911 Depreciation and amortisation .......................... 1 088 1 088 351 519 Other................................................................. 661 726 724 —

Total expenses 190 079 180 938 175 159 170 771

Income Sale of goods and services................................ 8 088 8 276 4 365 2 840 Fees, fines and penalties ................................... — — — 300 Commonwealth revenue ................................... 1 444 51 661 99 896 97 883 Other................................................................. 109 026 51 781 2 997 6 202

Total income 118 558 111 718 107 258 107 225


12.25


Sub-program: 4.1 Office for the Ageing

Support and promote the development of policies and strategies that create improved opportunities for individual activity and community participation of older people in South Australia through our ageing plan for South Australia, Improving with Age. The office administers a number of programs including the Home and Community Care (HACC) program, the Aged Care Assessment Program (ACAP), the South Australian Seniors Card Program, the Retirement Villages Act 1987, Positive Ageing Development Grants, Grants for Seniors, Ethnic Aged Care Grants and Peak Bodies Grants. The office also manages funding and initiatives associated with Improving with Age — Our Ageing Plan for South Australia and community care innovation.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The HACC program is a joint Commonwealth–state initiative which funds the provision of basic maintenance and support services for frail older people, younger people with disabilities and their carers. The Government of South Australia provides a matching contribution of 38 per cent of HACC Program funding, with the Commonwealth providing the remaining 62 per cent contribution. HACC services are provided by approximately 150 agencies in South Australia(a).

In 2008-09, total funding for the HACC Program grew to $149.7 million recurrent, an increase of 8.0 per cent from 2007-08. Whilst national HACC Minimum Data Set data is not yet available for 2008-09, it is estimated that a total of 95 600 South Australians have received support, an increase of 3600 people from 2007-08.

There has been a significant decrease from 2006-07 to 2007-08 in the reported total hours of HACC services provided by HACC funded agencies and number of people receiving HACC services. This is particularly associated with improvements in data reporting by HACC funded organisations which has corrected over reporting in previous years. It is for this reason that the 2008-09 HACC targets (derived from 2006-07 data) are not expected to be achieved. The number of people receiving HACC services is, however, expected to increase and is targeted to increase to nearly 100 000 people by 2009-10.

All agencies who deliver HACC services to clients are appraised within a triennium. The table below indicates a 2008-09 target of 51, however, an estimated result of 32 is shown. This is due to a number of appraisals scheduled for 2008-09 being conducted in 2007-08 due to an early completion of the Round 2 of the appraisal cycle.

The ACAP program is funded by the Commonwealth, but day-to-day operation and administration of the program rests with the state government. The program’s objective is to comprehensively assess the needs of frail older people and facilitate access to available care services appropriate to their care needs. In 2008-09, the total funding for the ACAP program was $5.9 million recurrent, an increase of 4.3 per cent from 2007-08.

The Seniors Card Program recognises and values the contribution seniors have made and continue to make to the community of South Australia. There are more than 282 000 cardholders on the South Australian Seniors Card database. This is projected to increase to approximately 310 000 by 2009-10.



2008-09 Target

2007-08 Actual

Total hours of HACC service(b) 3 858 300 3 597 300 4 682 700 3 339 600

No. of people receiving HACC services(b) 99 400 95 600 104 200 92 000

No. of people receiving ACAT assessments 19 400 18 900 18 600 18 500

No. of agencies who have had National Service Standards appraisal externally reviewed

55 32 51 35

No. of card holders (includes non-current address)

310 000 282 800 290 000 270 433

Footnotes (a) From 1 July 2008, Country Health SA Hospital Incorporated became the legal entity for all Country Health services. As a result the

number of HACC funded organisations is now approximately 150.

(b) The total hours of HACC service and number of people receiving HACC services is inclusive of HACC services provided by the Department of Health, Domiciliary Care SA and Disability SA.

12.26

Sub-program: 4.2 Domiciliary Care SA

Provision of community care services to frail older people with reduced ability to care for themselves, assisting them to stay living in their homes. The service includes physical assistance, rehabilitation and social support for those in need as well as respite and support for their caregivers. The services provided include personal care, domestic assistance, provision of equipment, home modifications, respite care, falls intervention, case management/ service coordination, specialist dementia support services, rehabilitation, palliative care, allied health assessment and therapy and specialist medical services from geriatricians. Domiciliary Care SA (DCSA) operates the Domiciliary Equipment Service which provides equipment for clients of Disability SA and DCSA. The Adelaide Aged Care Assessment Team (ACAT) also operates from DCSA.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary In 2008-09, DCSA improved service hours outputs and substantially reduced waiting times for Priority 2 and 3 clients(a). This is reflected in the 2008-09 Estimated result, which projects an improved effort over all the key indicators.

DCSA reallocated resources and streamlined a number of administrative processes, to further reduce waiting times and improve service provision.

Aboriginal and Torres Strait Islander (ATSI) client numbers increased by nine per cent during the year.

Aged Care Assessment Team performance outputs were consistent with previous year’s results.

From July 2008, a new DFC Equipment Program was established through the consolidation of the former Disability SA and Domiciliary Care SA equipment programs. This has delivered a more efficient and effective service for people with disabilities who require equipment or home modifications. This service is now part of this sub-program.

Performance Indicators(b) 2009-10 Target


2008-09 Target

2007-08 Actual

Total service hours 410 000 400 789 n.a. 382 219

No. of active clients 8 000 7 764 n.a. 7 698

Avg. hours of service per client 7.00 6.85 n.a. 6.25

No. of ATSI clients 150 143 n.a. 132

No of culturally and linguistically diverse clients

1 300 1 283 n.a. 1 269

No. of ACAT assessments completed 12 300 12 284 n.a. 12 382

Footnotes (a) Clients are categorised from Priority 1–3, where Priority 1 represents most at risk.

(b) Performance Indicators were reviewed during 2008-09, with all those previously published being replaced with six new indicators.

12.27


Program information

Program 5: Communities and Partners

Description/Objective: To build and maintain solid relationships with the non-government community services sector and other key partners of the portfolio to help develop and support strong South Australian families and communities.


Program 5: Communities and Partners 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000


Total expenses 28 044 28 873 23 695 25 221

Income Sale of goods and services................................ — 703 703 1 445 Fees, fines and penalties ................................... — — — 6 Commonwealth revenue ................................... — — — 48 Other................................................................. 3 018 3 416 3 137 3 799

Total income 3 018 4 119 3 840 5 298


12.28


Sub-program: 5.1 Community Connect(a)

Coordinates and promotes initiatives that improve service delivery of non-government community service agencies that are funded by the department. Planning and management of grant programs to community organisations that provide services to help families and improve the quality of life of the community. Programs include the Community Benefit SA (CBSA) Fund, Family and Community Development Program (F&CD), Stronger Families Safer Children Program, Dame Roma Mitchell Trust Fund, Aboriginal Youth Development Program and community specific programs. Information systems are maintained to support monitoring and reporting on funding provided to community organisations. Quality and continuous improvement guidance and training are provided to organisations through the Service Excellence Program.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary In 2008-09, Community Connect, in keeping with its commitment to support the community services sector to deliver high quality services, commenced the implementation of the Stronger Families, Safer Children Program and the DFC Community Engagement Strategy. An Action Plan for Sector Development in the non-government sector was developed, building on current activity and new areas highlighted from the annual partner satisfaction survey.

Numbers of organisations engaging in the Service Excellence quality improvement program continued to grow steadily with the program once again achieving accreditation to international standards.

Positive outcomes for vulnerable individuals, young people and disadvantaged community groups were achieved through the CBSA, Dame Roma Mitchell Trust Fund, Aboriginal Youth Program and the F&CD.



2008-09 Target

2007-08 Actual

Agencies funded through F&CD achieve agreed outcomes within Service Agreements

95.0% 90.0% 90.0% 90.0%

Agencies funded by Community Benefit SA achieve agreed outcomes as defined in Service Agreements

90.0% 85.0% 90% 86.5%

No. of funded agencies engaging in the Service Excellence Program

220 212 216 195

% of Aboriginal specific services achieving agreed outcomes in Service Agreements(b)

n.a. 70.0% 70.0% —

Footnotes (a) Various activities including concessions administration, the Funeral Assistance Program, Office for Problem Gambling and

Aboriginal and Torres Strait Islander Services previously reported under this sub-program are now included in Sub-program 5.2, Community Support Services.

(b) To be deleted in 2009-10. Aboriginal outcomes are reported in other community programs and will therefore be captured in the other performance indicators.

12.29

Sub-program: 5.2 Community Support Services(a)

Provision of various services that directly or indirectly support South Australians and their communities.

Delivery of support for South Australians on low incomes by administering a range of state concessions, the Funeral Assistance Program, Community Benefit SA and the Gamblers Rehabilitation Fund. Coordinating state disaster recovery and relief, including registering and mobilising volunteers for emergency recovery. Coordinating a consistent approach to the management of volunteers engaged directly by the department and volunteers engaged by organisations receiving departmental grants and working to increase the number of volunteers. Includes the Office for Carers which administers the Carers Recognition Act 2005 and works to raise the profile of carers to ensure that they are recognised and valued.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary In February 2008, Volunteers Emergency Recovery Information System (VERIS) was activated to register Government of South Australia volunteers as part of DFC’s response to the heat-wave. During 2008-09, further work has been done to enhance the annual DFC awards event, last held in December 2008 at Government House. Additional work on improving the efficiency of volunteer management is commencing and will be progressed during 2009-10.

In 2008-09, Aboriginal and Torres Strait Islander Services (ATSIS) on behalf of Disability SA were responsible for the provision of disability support programs in the APY Lands. Services included day activities, support for people with a disability and their families, behaviour management services for people with complex needs and a carer service for those that have high needs. During the period, disability clients have had an increased opportunity to attend local sports league fixtures, increased participation in community activities including art and craft and gain access to community support programs. On 1 July 2008, virtually all responsibility for Home and Community Care services in all communities on the APY Lands was transferred to ATSIS. A range of services provided include meals, clothes and blanket washing.

The new water remission with expanded eligibility was implemented during 2008-09. An integrated concessions form was also implemented, allowing customers to apply for water, sewerage, council and energy concessions on a single form. This form is also available as an online form so that applications can be made over the internet. The number of concessions provided for seniors travel is anticipated to increase in 2009-10 due to the introduction of a free travel option from 1 July 2009.



2008-09 Target

2007-08 Actual

% of DFC staff volunteering(b) 65% n.a.(c) 65% n.a.(c)

No. of volunteers engaged directly by DFC divisions and units(b)

1 550 1 550 1 300 1 267

% of DFC funded NGOs engaging volunteers(b)

77% 77%(d) 85% 62%(e)

No. of Funeral Assistance payments provided 330 330 320 328

No. of concessions 1 401 189 1 271 967 1 261 000 1 228 124

Footnotes (a) Previously reported Sub-program 3.6, Volunteers merged into this sub-program. Also, various activities reported previously under

Sub-program 5.1, Community Connect have now been included in this sub-program.

(b) Definition of ‘volunteers’ is being defined, but may still vary across DFC divisions.

(c) No similar survey was conducted in these years.

(d) A more extensive and therefore reliable survey was used to derive this figure.

(e) Estimated figure only available.

12.30


Program information

Program 6: Organisational Capability

Description/Objective: To establish and maintain business practices that support delivery of South Australia’s Strategic Plan as it affects the portfolio, including ensuring timely decision making, improving administrative efficiency, increasing customer satisfaction and promoting sustainability.

To continue to build a capable, creative workforce that engages with our customers and partners to ensure effective service provision. Social innovation and continuous improvement will be fostered and our infrastructure will support connected services.


Program 6: Organisational Capability 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 45 018 43 234 47 938 40 637 Supplies and services........................................ 44 384 40 777 43 575 39 782 Grants and subsidies ......................................... 2 341 5 217 5 237 7 866 Depreciation and amortisation .......................... 1 032 978 836 850 Other................................................................. 379 3 720 2 435 8 187

Total expenses 93 154 93 926 100 021 97 322

Income Sale of goods and services................................ 25 870 26 059 30 829 28 462 Other................................................................. 5 308 573 4 084 4 989

Total income 31 178 26 632 34 913 33 451


12.31


Sub-program: 6.1 People and Development

Workforce planning and workforce management to attract, retain and develop a workforce that sustains the right mix of skills, experience, abilities and backgrounds to effectively serve our customers. Address the learning and development needs of employees. Undertake national criminal history checks and background screening assessment during recruitment processes.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The Screening and Licensing Branch conducts comprehensive and confidential national criminal history checks and background screening of all employees, contractors and volunteers prior to engagement by the department and on an ongoing basis. This initiative assists in ensuring the ongoing fitness and probity of people to work with children and vulnerable adults. This service is provided to other government agencies and non-government organisations.

During 2008-09, a consolidated education and training program has been offered to supervisors, managers and staff, commencing with Families SA. Programs have been offered both centrally and on-site in metropolitan and regional locations allowing supervisors and managers from across the department to attend.

The increase in Aboriginal and Torres Strait Islander (ATSI) staff has been a priority for the department.

The College for Learning and Development issued 1186 national qualifications ranging from Certificate III to diploma level. Engagement in learning by managers has again exceeded targets, demonstrating that managers are seeking to improve their leadership capability and skills.



2008-09 Target

2007-08 Actual

% of new ongoing employees who attended corporate induction

65.0% 60.0% 65.0% 55.0%

No. of Managers that have participated in Learning Programs

350 333 210 350

No. of national qualifications completed by staff through the College for Learning and Development

610 1 186 610 653

% of Performance Development Agreements completed (PSM Act only)(a)

85.0% 17.4% 85.0% 10.0%

% of Aboriginal and Torres Strait Islander people employed in the department, spread across all classifications

5.5% 5.0% 4.5% 3.9%

% of women in executive level positions 57.0% 57.0% 51.0% 74.3%

% of people with disabilities employed in the department’s workforce

6.0% 5.7% 6.0% 4.5%

Footnotes (a) Current statistics do not capture instances where performance plans have been developed but not entered onto the department’s

human resource information system.

12.32

Sub-program: 6.2 Business Services and Improvement

Delivery of corporate services and advice to support organisational operations, including financial, legal, procurement, project management, strategic and policy advice, strategic and business planning, internal and external reporting, risk management, records management, geographic information services, library services and information management.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary In 2008-09, implementation of the DFC e-Reference tool has continued. It provides a single authoritative source of online reference information containing procedures associated with service delivery allowing staff to quickly and easily find information to help customers.

A mobile device allowing rapid collection of geo-spatial and other data about housing assets in remote Aboriginal communities was developed in 2008-09. This innovative business solution greatly improves the speed and accuracy with which data can be collected from remote locations and updated into the assets database. The solution was recognised at the South Australian Spatial Excellence Awards.

An external evaluation of the department against the Business Excellence Framework was conducted between January and March. The report, due in July, will provide independent advice on the department’s continuous improvement progress as well as identifying opportunities for further improvement.

A Five Year Strategic Plan, 2009-2013 for DFC was launched in March. The plan’s vision is for “a better life for South Australians”. The plan incorporates measurable outcomes that will identify progress and the strategies being used to deliver these outcomes. The department’s business planning processes have been realigned to the new strategic plan.

The focus for the Project Management Office in 2008-09 has been to promote and embed the DFC Project Management Framework creating greater consistency in project management approach and methodology across the department. New tools and resources have been developed that support the existing accredited training options and create more opportunities for staff to enhance their project management skills.

Business continuity testing was conducted in accordance with the 2008-09 testing program.

Procurement has implemented a number of innovative strategies to grow partnership arrangements with other government departments and non-government organisations. Procurement planning has been improved, ensuring that a large percentage of goods and services are contracted faster than the established across government benchmarks.

12.33

Sub-program: 6.3 Resources Management

Provide infrastructure to the portfolio including coordination of public building and technology capital programs. Effective management and utilisation of agency infrastructure and resources and the services to support and maintain them including facility and accommodation services, information communication and technology services, greening of government, transport and fleet management. Includes financial and insurance services.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The Riverside Centre upgrade and other office relocations within the CBD have commenced in accordance with the department’s Strategic Accommodation Plan.

Other office accommodation projects include a five star green building at Mount Gambier for a DFC Connected Service Centre (which will accommodate Families SA, Housing SA and Disability SA at the one site) and the recently completed Mount Barker Connected Service Centre. The relocation of residents from Strathmont Centre to the community under the Strathmont Centre Redevelopment and Community Living Project has continued.

Green pilot programs are being set up in regional offices throughout the department to provide practical examples for staff to follow to improve efficiencies in energy usage, water consumption, waste management, travel, fleet management and green procurement. Specific work will also be undertaken with facility managers and DFC building management to reduce energy consumption in departmental sites that have been identified as consuming more than 160 MW of energy per annum.



2008-09 Target

2007-08 Actual

Energy reduction 21% 20% 25%(a) 19%

Footnotes (a) The 2008-09 figure of 25 per cent was previously published in error and should have been shown as 20 per cent.

12.34

DEPARTMENT FOR FAMILIES AND COMMUNITIES


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 338 211 333 099 318 420 312 238 Long service leave .................................................................... 8 650 8 131 9 904 9 210 Payroll tax ................................................................................ 18 321 17 952 17 678 19 457 Superannuation ......................................................................... 34 967 34 523 32 126 31 971 Other ......................................................................................... 3 683 3 612 5 004 5 650Supplies and services — General supplies and services .................................................. 200 283 200 647 156 880 167 955 Consultancy expenses .............................................................. 880 898 1 588 650Depreciation and amortisation expenses ...................................... 4 018 3 786 4 042 3 403Grants and subsidies ..................................................................... 334 281 293 974 356 002 324 374Intra government transfers ........................................................... 674 710 414 757 283 308 277 151Other expenses ............................................................................. 10 206 10 381 8 494 17 210

Total expenses 1 628 210 1 321 760 1 193 446 1 169 269

Income

Commonwealth revenues ............................................................. 6 082 147 927 281 015 280 158Intra government transfers ........................................................... 495 749 246 323 13 220 16 078Other grants .................................................................................. — — — 61Fees, fines and penalties ............................................................... 232 225 322 322Sales of goods and services .......................................................... 113 126 111 264 117 670 110 008Interest revenues ........................................................................... — — 527 442Net gain or loss from disposal of assets ....................................... — — — -748Other income ................................................................................ 6 285 6 135 1 262 7 938

Total income 621 474 511 874 414 016 414 259

Net cost of providing services 1 006 736 809 886 779 430 755 010


Income — Appropriation ........................................................................... 1 006 484 789 314 779 430 743 343 Other income ............................................................................ — 6 668 — 692Expenses — Cash alignment ......................................................................... — 18 031 — —

Net income from / expenses to SA Government 1 006 484 777 951 779 430 744 035

Net result before restructure(s) -252 -31 935 — -10 975

Net income from / expenses from administrative restructure(s) .. — — — 2 841

Net result after restructure(s) -252 -31 935 — -8 134

12.35


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 30 226 25 151 38 209 44 927Receivables ................................................................................... 35 802 35 802 33 013 35 802Inventories .................................................................................... 347 347 916 347Financial assets ............................................................................. — — 1 531 — Other current assets ...................................................................... 160 160 243 160Non-current assets class held for sale .......................................... — — 3 900 —


Non current assetsInvestment properties ................................................................... — — 1 139 — Land and improvements ............................................................... 210 601 205 618 206 130 206 716Plant and equipment ..................................................................... 14 560 16 454 17 554 12 349Intangible assets ........................................................................... 167 167 — 167


Total assets 291 863 283 699 302 635 300 468

Liabilities

Current liabilitiesPayables ........................................................................................ 30 913 30 913 20 032 31 039Employee benefits — Salaries and wages ................................................................... 8 248 8 248 6 796 8 248 Annual leave ............................................................................. 28 191 27 933 25 614 27 931 Long service leave .................................................................... 11 510 10 080 13 502 9 046 Other ......................................................................................... 882 882 1 038 882Short-term provisions ................................................................... 8 821 8 136 7 980 7 451Other current liabilities ................................................................. 4 888 4 888 1 990 4 895


Non current liabilitiesLong-term borrowings .................................................................. 285 285 285 285Long-term employee benefits — Long service leave .................................................................... 51 417 48 361 46 087 46 954Long-term provisions ................................................................... 19 735 19 359 18 641 19 023



Net assets 126 973 124 614 160 670 144 714

Equity

Contributed capital ....................................................................... 43 799 41 888 41 888 26 991Retained earnings ......................................................................... 33 022 33 274 51 267 68 271Asset revaluation reserve ............................................................. 50 152 49 452 67 515 49 452

Total equity 126 973 124 614 160 670 144 714


12.36



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... 399 088 393 623 379 437 382 502Payments for supplies and services .............................................. 201 163 201 545 158 468 160 916Grants and subsidies ..................................................................... 334 281 293 974 356 002 324 374GST paid ...................................................................................... — — — 42 845Intra government transfers ........................................................... 674 710 414 757 283 308 277 151Other payments ............................................................................ 9 145 9 367 7 065 —

Cash used in operations 1 618 387 1 313 266 1 184 280 1 187 788

Cash inflowsIntra government transfers ........................................................... 495 749 246 323 13 220 16 078Commonwealth receipts ............................................................... 6 082 147 927 281 015 280 158Other grants .................................................................................. — — — 7 321Fees, fines and penalties ............................................................... 232 225 322 322Sales of goods and services .......................................................... 113 126 111 264 117 670 102 201Interest received ........................................................................... — — 527 442GST received ................................................................................ — — — 42 360Other receipts ............................................................................... 6 285 6 135 1 262 18 844


SA GOVERNMENT:

Appropriation ............................................................................... 1 006 484 789 314 779 430 743 343Other receipts ............................................................................... — 6 668 — 692Payments — Cash alignment ......................................................................... — 18 031 — —

Net cash provided by SA Government 1 006 484 777 951 779 430 744 035

Net cash provided by (+) / used (-) in operating activities 9 571 -23 441 9 166 23 973


Cash outflowsPurchase of property, plant and equipment .................................. 7 957 11 885 17 475 4 961Purchase of intangibles ................................................................. — — — 168


Cash inflowsProceeds from sale of property, plant and equipment .................. 1 550 2 030 2 030 72



12.37



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash inflowsCapital contributions from SA Government ................................ 1 911 14 897 14 897 7 517Proceeds from restructuring activities .......................................... — -1 377 — —

Cash generated from financing activities 1 911 13 520 14 897 7 517

Net cash provided by (+) / used in (-) financing activities 1 911 13 520 14 897 7 517

Net increase (+) / decrease (-) in cash equivalents 5 075 -19 776 8 618 26 433



12.38

ADMINISTERED ITEMS FOR THE DEPARTMENT FOR FAMILIES AND COMMUNITIES


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual


Income — Appropriation ........................................................................... 143 862 137 131 139 801 125 787



Intra government transfers ........................................................... 9 345 9 345 9 406 9 381Other grants .................................................................................. 110 110 110 110Sales of goods and services .......................................................... — — — 117Interest revenues ........................................................................... 424 400 28 546Other income ................................................................................ 394 382 4 12 707


Total income 154 135 147 368 149 349 148 648

Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 256 250 250 244 Payroll tax ................................................................................ — — — 1 Superannuation ......................................................................... — — — 1 Other ......................................................................................... — — — 20Supplies and services — General supplies and services .................................................. 873 873 934 1 218 Consultancy expenses .............................................................. — — — 18Depreciation and amortisation expenses ...................................... 645 645 — 645Grants and subsidies ..................................................................... 146 502 139 893 142 508 133 877Intra government transfers ........................................................... 7 096 6 838 6 460 1 004Other expenses ............................................................................. — — — 10 889

Total expenses 155 372 148 499 150 152 147 917

Net result -1 237 -1 131 -803 731

12.39


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 22 315 22 907 2 852 23 393Receivables ................................................................................... 1 920 1 920 19 1 920Other current assets ...................................................................... — — 2 264 —


Non current assetsInvestment properties ................................................................... 1 139 1 139 — 1 139Land and improvements ............................................................... 25 777 26 422 — 27 067

Total non-current assets 26 916 27 561 — 28 206

Total assets 51 151 52 388 5 135 53 519

Liabilities

Current liabilitiesPayables ........................................................................................ 2 424 2 424 2 863 2 424Short-term borrowings ................................................................. 20 20 19 20Employee benefits — Salaries and wages ................................................................... 12 12 9 12Other current liabilities ................................................................. 2 2 2 2



Net assets 48 693 49 930 2 242 51 061

Equity

Retained earnings ......................................................................... 48 693 49 930 2 242 51 061

Total equity 48 693 49 930 2 242 51 061


12.40



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash inflowsIntra government transfers ........................................................... 9 345 9 345 9 406 9 381Other grants .................................................................................. 110 110 110 110Sales of goods and services .......................................................... — — — 117Interest received ........................................................................... 424 400 28 546Other receipts ............................................................................... 394 382 4 12 706


Cash outflowsEmployee benefit payments ......................................................... 256 250 250 263Payments for supplies and services .............................................. 27 219 24 629 24 690 24 717Grants and subsidies ..................................................................... 120 156 116 137 118 752 111 247Intra government transfers ........................................................... 7 096 6 838 6 460 1 004Other payments ............................................................................ — — — 10 113


SA GOVERNMENT:

Appropriation ............................................................................... 143 862 137 131 139 801 125 787


Net cash provided by (+) / used in (-) operating activities -592 -486 -803 1 303


Cash inflowsProceeds from sale of property, plant and equipment .................. — — — 3 900

Cash generated from investing activities — — — 3 900

Net cash provided by (+) / used in (-) investing activities — — — 3 900


Cash inflowsProceeds from restructuring activities .......................................... — — — 2 474

Cash generated from financing activities — — — 2 474

Net cash provided by (+) / used in (-) financing activities — — — 2 474

Net increase (+) / decrease (-) in cash equivalents -592 -486 -803 7 677



12.41


Financial commentary — major resource variations


Factors contributing to the variance in total expenses between the 2008-09 Estimated Result and 2009-10 Budget include:

• $284.7 million in additional expenditure for social housing as part of the Commonwealth Nation Building — Economic Stimulus Plan;

• $12.0 million in additional expenditure relating to the National Partnership Agreement on Homelessness;

• $8.0 million in additional expenditure relating to the Home and Community Care Program;

• $6.3 million additional expenditure under the National Disability Agreement;

• $3.7 million additional reimbursement of land taxes, income taxes and stamp duties paid by the South Australian Housing Trust under the Tax Equivalent Regime;

• $2.4 million additional expenditure relating to initiatives as part of the reforms proposed in the Keeping them Safe — In Our Care;

• $2.1 million additional expenditure for the Integrated Economic Disadvantage and Disability Program for Port Augusta and the northern suburbs; and

• the impact of inflation adjustments, provision adjustments, one-off program funding in 2008-09, deferred expenditure and prior year budget decisions.

This is partially offset by:

• $5.7 million in savings initiatives announced during 2008-09, including savings resulting from implementing initiatives to build capacity in the Alterative Care system; and

• $1.0 million reduction in expenditure relating to indigenous community housing and affordable housing.

The variance in total income between the 2008-09 Estimated Result and the 2009-10 Budget includes:

• $295.6 million additional revenue for Affordable Housing, Homelessness, Remote Indigenous Housing and Social Housing as part of the Council of Australian Governments housing reforms and the Commonwealth’s Nation Building — Economic Stimulus Plan;

• $9.8 million additional revenue for Home and Community Care programs;

• $6.3 million additional revenue for Disability Services under the National Disability Agreement; and

• $2.1 million new funding to implement an Integrated Economic Disadvantage and Disability Program for Port Augusta and the northern suburbs.

12.42

In addition, funding for expenditure parameter adjustments, deferred expenditure, indexation on budgeted receipts and the impact of prior years decisions will also contribute to the increase in 2009-10 Budget.

However, these increases in the 2009-10 Budget have been partially offset by the impact of a change in management of revenue received from the Commonwealth government, which is now provided to DFC as appropriation, once-off funding received during 2008-09 for clients with exceptional needs, the Supported Accommodation Demonstration project, and indigenous housing programs.


The variance in assets and liabilities primarily relate to projected movements in fixed assets due to the capital program and movements in employee benefit liabilities.


The major variations in the cash flow statement are generally caused by the same factors that give rise to variations in the income statement but are also affected by movements in the balance sheet. Other variations are attributable to the investing program and timing differences between the recognition of revenue and expenditure under accrual accounting conventions.


Factors contributing to the variance in total expenses between the 2008-09 Estimated Result and 2009-10 Budget include:

• $6.2 million additional concession payments to fund anticipated increases in volume and price for the various concessions. Introduction of quarterly billing for water and the extension of eligibility for concessions to households in residential parks will also increase demand; and

• $0.3 million carryovers in program funding relating to the Gamblers Rehabilitation Fund and Charitable Social Welfare Fund.

The variance in total income between the 2008-09 Estimated Result and the 2009-10 Budget includes:

• $3.9 million additional funding resulting from rising water prices; introduction of quarterly billing for water and anticipated increase in recipients claiming concessions;

• $1.7 million additional funding for anticipated increases in transport concessions;

• $0.6 million additional funding to extend the concession scheme to households in residential parks; and

• $0.5 million increase in community service obligation payments.


Major resource variations in the cash flow statement are generally caused by the same factors that give rise to variations in the income statement. Other variations are attributed to timing differences between the recognition of income and expenditure under accrual accounting convention shown in the income statement and the physical timing of the transactions.

12.43



12.44

Additional information for administered items Department for Families and Communities

Cash flow statement

2009-10Budget

2008-09Estimated

result

2008-09 Budget

2007-08Actual

$000 $000 $000 $000

CASH FLOWS FROM:


Receipts

Intra-Government Transfers —

Gamblers Rehabilitation Fund .................................................. 5 345 5 345 5 406 5 345

Charitable and Social Welfare Fund ......................................... 4 000 4 000 4 000 4 000

Concessions .............................................................................. — — — 36

Grants — Other —

Gamblers Rehabilitation Fund .................................................. 110 110 110 110

Sales of Goods and Services —

Gamblers Rehabilitation Fund .................................................. — — — 33

Charitable and Social Welfare Fund ......................................... — — — 63

Concessions .............................................................................. — — — —

Interest Received —

Supported Residential Facilities Fund....................................... 5 5 5 2

Gamblers Rehabilitation Fund .................................................. — — — 126

State Emergency Relief Fund ................................................... 24 23 23 25

Home for the Incurables Trust .................................................. 395 372 — 414

Other Receipts —

Supported Residential Facilities Fund....................................... 4 4 4 2

State Emergency Relief Fund ................................................... — — — —

Home for the Incurables Trust .................................................. 390 378 — 411

Client Trust Fund ...................................................................... — — — 12 293

State Government Appropriation .................................................... 143 862 137 131 139 801 125 787

Total operating receipts 154 135 147 368 149 349 148 647

Payments

Employee Payments —

Minister’s Salary....................................................................... 256 250 250 241

Charitable and Social Welfare Fund ......................................... — — — 22

Supplies and Services —

Concessions............................................................................... 26 346 23 756 23 756 23 484

Gamblers Rehabilitation Fund .................................................. 691 691 752 968

Charitable and Social Welfare Fund ......................................... 182 182 182 176

Home for the Incurables Trust .................................................. — — — 89

12.45

Additional information for administered items Department for Families and Communities

Cash flow statement

2009-10Budget

2008-09Estimated

result

2008-09 Budget

2007-08Actual

$000 $000 $000 $000


Community Service Obligations ............................................... 12 025 11 722 11 722 14 171

Gamblers Rehabilitation Fund .................................................. 5 540 5 491 5 453 4 315

Charitable and Social Welfare Fund ......................................... 3 916 3 778 3 818 3 847

State Emergency Relief Fund ................................................... — 57 — 34

Concessions .............................................................................. 98 675 95 089 97 759 88 060

Intra-Government Transfers —

Concessions .............................................................................. 2 369 2 311 2 311 —

Gamblers Rehabilitation Fund .................................................. 146 146 146 1 004

Home for the Incurables Trust .................................................. 390 378 — —

Community Service Obligations ............................................... 4 191 4 003 4 003 —

Other Payments —

Concessions............................................................................... — — — —

Gamblers Rehabilitation Fund................................................... — — — 44

Client Trust Fund ...................................................................... — — — 10 889

Total operating payments 154 727 147 854 150 152 147 344

Net cash provided by operating activities -592 -486 -803 1 303

Net cash provided by (+) / used in (-) investing activities — — — 3 900

Net cash provided by (+) / used in (-) financing activities — — — 2 474

Net increase (+) / decrease (-) in cash held -592 -486 -803 7 677


Closing cash balance as at 30 June 22 295 22 887 2 833 23 373

12.46

TABLE OF CONTENTS

AGENCY: SOUTH AUSTRALIAN HOUSING TRUST

Objective ......................................................................................................................................... 12.49





1. Public and Affordable Housing Services and Supply .................................................... 12.51



Balance sheet......................................................................................................................... 12.54



12.48



Objective

The South Australian Housing Trust (SAHT) provides services to assist South Australians to secure and maintain affordable and appropriate housing.



• Commence first year implementation of the National Partnership Agreement for Remote Indigenous Housing

• Implement the National Partnership Agreement on Social Housing by commencing the construction of new social housing dwellings

• Implement the Nation Building — Economic Stimulus Plan by completing upgrades to existing public housing and commencing the construction of new social housing dwellings

• Support the growth of the not-for-profit social housing sector through the implementation of a preferred provider program

• Establish new innovative housing models for supported accommodation such as Common Ground and Ladder

• Continue to pursue the development and implementation of the Safe Tracks Strategy (integrated service response for Aboriginal people who are mobile)

• Expansion of a public housing like service model on the Anangu Pitjantjatjara Yankunytjatjara (APY) Lands

• Reduction of overcrowding in Aboriginal housing in South Australia

• Develop and Implement a Cultural Inclusive Strategic Policy across the SAHT in the delivery of housing outcomes for Indigenous South Australians

• Continued the Affordable Homes Program by targeting sales to low and moderate income earners, public housing tenants and affordable housing providers

• Increased the supply of affordable housing through partnerships and new housing developments

• Commenced implementation of new national partnership agreements under revised state federal relationship

• Approved 422 new affordable rental dwellings in South Australia through the National Rental Affordability Scheme

• Commenced a review of the Housing Improvement Act 1940 including consultation with key stakeholders on roles, responsibilities and powers under the Act

• Contributed to the Playford North Urban Renewal Project to deliver whole of government outcomes for Adelaide’s outer northern suburbs

• Continued to target housing to those in greatest need by: − increasing options for homeless people − provided additional properties for the Disability Housing

Program − allocating additional properties to both government and

non-government organisations that service the highest needs groups in the community

• Completed refurbishment of The Terrace (formerly known as Afton House)

12.49



2009-10Budget


2008-09 Budget

2007-08 Actual

Program $000 $000 $000 $000 1. Public and Affordable Housing Services

and Supply.................................................. 328 339 351 072 291 207 230 262

Total 328 339 351 072 291 207 230 262


2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

Major projects Nation Building — Economic Stimulus Plan — Social Housing Stage 1.................. 47 369 4 497 — — Nation Building — Economic Stimulus Plan — Social Housing Stage 2.................. 118 082 — — — Nation Building — Economic Stimulus Plan — Social Housing Upgrades .............. 29 980 — — — Remote Indigenous Housing ...................... 44 971 — — — Social Housing ........................................... 11 160 — — —

Total major projects 251 562 4 497 — —

Annual programs Public Housing Capital Maintenance ......... 25 440 24 840 22 100 17 779 Public Housing Construction and Redevelopment........................................... 81 765 158 671 168 977 94 341 SAHT Management Assets ........................ 5 913 6 610 6 610 3 738 Crisis Accommodation Program ................ 3 214 10 701 10 043 2 138 Aboriginal Housing Capital Program ......... 4 352 5 674 5 674 2 015

Total annual programs 120 684 206 496 213 404 120 011

Total investing payments 372 246 210 993 213 404 120 011 Note: 2009-10 will see significant new expenditure arising from both the Commonwealth Government’s Nation Building — Economic Stimulus Plan, and new National Partnership Agreements for Social Housing and Remote Indigenous Housing.

12.50


Program information

Program 1: Public and Affordable Housing Services and Supply

Description/Objective: Provision of housing and housing services to people in South Australia.


Program 1: Public and Affordable Housing Services and Supply

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Supplies and services........................................ 266 541 260 444 259 278 247 343 Grants and subsidies ......................................... 59 221 107 717 42 116 28 495 Depreciation and amortisation .......................... 86 805 81 982 75 702 72 432 Other................................................................. 209 594 206 101 212 653 195 070

Total expenses 622 161 656 244 589 749 543 340

Income Sale of goods and services................................ 250 327 246 567 242 839 243 762 Fees, fines and penalties ................................... — — 427 513 Commonwealth revenue ................................... — 2 821 4 008 7 467 Other................................................................. 43 495 55 784 51 268 61 336

Total income 293 822 305 172 298 542 313 078


12.51


Program: 1 Public and Affordable Housing Services and Supply(a)

Provision of services to assist low income and high need people to secure and maintain affordable and appropriate housing, including management of public, Aboriginal and community housing tenancies, management of public and community housing assets, provision of private rental assistance and funding and regulation of community housing.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of program 328 339 000 351 072 000 291 207 000 230 262 000

Performance Commentary The net cost of this program is determined by allocating SAHT’s revenues and expenses across its programs. Variations in these items therefore affect the net cost calculations. Major variations are discussed in the Financial commentary section.

Performance Indicators(b) 2009-10 Target


2008-09 Target

2007-08 Actual

Increase the number of tenantable affordable home purchase and rental opportunities provided by SAHT

45 984 45 927 45 960 46 288

South Australians experiencing housing stress assisted by SAHT 20 302 20 620 20 810 20 242

Increase the number of high needs clients placed in housing by SAHT 3 580 3 780 3 985 3 871

Increase the number of ‘rough sleepers’ in South Australia assisted by SAHT 75 72 70 68

Number of houses dedicated to the Supported Tenancy Scheme (STS)(c) 1 175 1 175 1 175 1 123

Increase the number of houses dedicated to the Disability Housing Program (DHP)(d) 325 285 346 267

Footnotes (a) Combines previously reported program 1, Affordable Housing Choices and Communities that Prosper and Program 2, High Need

Housing.

(b) Performance indicators have been revised to measure the SAHT’s progress in achieving the South Australia’s Strategic Plan Targets.

(c) The STS will be maintained, however supported tenancies will grow as a result of targeted allocations through the housing component of the Nation Building — Economic Stimulus Plan.

(d) The target set for 2008-09 was not achieved because of reduced vacancy rates. However the number of houses dedicated to the DHP is anticipated to grow as a result of additional allocations from the housing component of the Nation Building — Economic Stimulus Plan.

12.52

SOUTH AUSTRALIAN HOUSING TRUST


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Supplies and services — General supplies and services .................................................. 265 926 259 854 258 688 246 998 Consultancy expenses .............................................................. 615 590 590 345Depreciation and amortisation expenses ...................................... 86 805 81 982 75 702 72 432Borrowing costs ............................................................................ 38 754 39 121 44 382 44 645Grants and subsidies ..................................................................... 59 221 104 017 42 116 22 650Intra government transfers ........................................................... — 3 700 — 5 845Other expenses ............................................................................. 170 840 166 980 168 271 150 425

Total expenses 622 161 656 244 589 749 543 340

Income

Commonwealth revenues ............................................................. — 2 821 4 008 7 467Intra government transfers ........................................................... 649 301 388 858 257 621 254 083Fees, fines and penalties ............................................................... — — 427 513Sales of goods and services .......................................................... 250 327 246 567 242 839 243 762Interest revenues ........................................................................... 5 617 10 454 3 148 12 873Net gain or loss from disposal of assets ....................................... 34 836 42 434 42 434 39 283Other income ................................................................................ 3 042 2 896 5 686 9 180

Total income 943 123 694 030 556 163 567 161

Net cost of providing services -320 962 -37 786 33 586 -23 821


Expenses — Tax equivalent .......................................................................... — — — 5 496

Net income from / expenses to SA Government — — — -5 496

Net result before restructure(s) 320 962 37 786 -33 586 18 325

Net income from / expenses from administrative restructure(s) .. — — — 176

Net result after restructure(s) 320 962 37 786 -33 586 18 501

12.53


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 331 982 236 023 116 973 121 617Receivables ................................................................................... 28 059 28 059 15 478 28 059Inventories .................................................................................... 99 784 99 784 60 753 99 784Other current assets ...................................................................... 456 458 99 458Non-current assets class held for sale .......................................... 14 203 14 203 20 223 14 203


Non current assetsLand and improvements ............................................................... 8 905 148 8 573 559 7 643 581 7 469 439Plant and equipment ..................................................................... 6 865 4 066 7 041 1 267Intangible assets ........................................................................... 4 409 4 409 8 759 4 409Other non-current assets ............................................................... 3 192 3 192 846 3 192

Total non-current assets 8 919 614 8 585 226 7 660 227 7 478 307

Total assets 9 394 098 8 963 753 7 873 753 7 742 428

Liabilities

Current liabilitiesPayables ........................................................................................ 51 035 49 137 39 703 46 792Short-term borrowings ................................................................. 193 270 106 669 91 359 24 399Short-term provisions ................................................................... 2 118 2 118 2 874 2 118Other current liabilities ................................................................. 14 890 14 890 8 286 14 890


Non current liabilitiesLong-term borrowings .................................................................. 429 940 623 210 641 108 729 882Long-term provisions ................................................................... 1 274 1 274 116 1 274Other non-current liabilities ......................................................... 4 845 5 276 5 239 5 707



Net assets 8 696 726 8 161 179 7 085 068 6 917 366

Equity

Retained earnings ......................................................................... 2 605 166 2 246 204 1 558 282 2 170 418Asset revaluation reserve ............................................................. 6 091 560 5 914 975 5 526 786 4 746 948

Total equity 8 696 726 8 161 179 7 085 068 6 917 366


12.54



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... — — — 1 432Payments for supplies and services .............................................. 264 155 258 098 256 932 235 324Interest paid .................................................................................. 39 241 39 121 44 760 44 151Grants and subsidies ..................................................................... 59 221 104 017 42 116 22 650GST paid ...................................................................................... — — — 15 656Intra government transfers ........................................................... — 3 700 — 5 845Other payments ............................................................................ 154 477 150 714 150 714 147 783


Cash inflowsIntra government transfers ........................................................... 649 301 388 858 257 621 254 083Commonwealth receipts ............................................................... — 2 821 4 008 7 467Fees, fines and penalties ............................................................... — — 427 513Sales of goods and services .......................................................... 244 286 240 623 236 318 228 445Interest received ........................................................................... 5 617 10 454 3 148 12 138GST received ................................................................................ — — — 14 959Other receipts ............................................................................... 3 043 2 895 5 685 —




Cash outflowsPurchase of property, plant and equipment .................................. 372 246 210 993 213 404 115 317Purchase of intangibles ................................................................. — — — 4 690Advances paid .............................................................................. — — — 4


Cash inflowsProceeds from sale of property, plant and equipment .................. 189 721 259 800 259 800 159 275Repayment of advances ................................................................ — — — 182

Cash generated from investing activities 189 721 259 800 259 800 159 457

Net cash provided by (+) / used in (-) investing activities -182 525 48 807 46 396 39 446

12.55



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsRepayment of borrowings ............................................................ 106 669 24 402 88 802 104 028

Cash used in financing activities 106 669 24 402 88 802 104 028

Cash inflowsProceeds from borrowings ........................................................... — — — 19 043

Cash generated from financing activities — — — 19 043

Net cash provided by (+) / used in (-) financing activities -106 669 -24 402 -88 802 -84 985

Net increase (+) / decrease (-) in cash equivalents 95 959 114 406 -29 721 -775



12.56



The following commentary relates to variations between the 2008-09 Estimated Result and 2009-10 Budget.


The reduction in total expenses of $34.1 million between the 2008-09 Estimated Result and 2009-10 Budget is mainly due to:

• a reduction in grants and subsidies resulting from carryovers approved from 2007-08 into 2008-09 and once-off program funding for 2008-09; and

• a reduction in the EquityStart subsidy payable to HomeStart Finance.

This reduction is partially offset by:

• additional expenditure relating to the new National Partnership Agreements for Homelessness and Social Housing expected to occur in 2009-10;

• additional expenditure relating to the National Partnership Agreement for Remote Indigenous Housing; and

• an increase in land tax and depreciation expenses.

The significant increase in total income of $249.1 million between the 2008-09 Estimated Result and 2009-10 Budget is mainly due to:

• $295.4 million additional revenue for Affordable Housing, Homelessness, Remote Indigenous Housing and Social Housing as part of the Council of Australian Governments housing reforms and the Commonwealth’s Nation Building — Economic Stimulus Plan; and

• the indexation of rents and other revenues.

This increase is partially offset by:

• a reduction in net gain or loss from disposal of assets, due to an expected reduction in the sales program in 2009-10; and

• a reduction in interest revenues due to lower interest rates.

12.57


The significant increase in total assets for 2009-10 primarily relates to $372.2 million in acquisitions via the capital investment program and $214.6 million net revaluation increments, partially offset by $154.9 million in disposals by sale or demolition and $86.8 million depreciation and amortisation.

Cash reserves are also expected to increase by $96 million as a result of business operations, particularly the receipt of new revenue as a result of the new national partnership agreements, a significant portion of which will be spent in future budget periods.

The reduction in total liabilities for 2009-10 mainly results from debt repayments.


The net increase in investing payments for 2009-10 is attributable to the following:

• $247 million increase in expenditure arising from the Nation Building — Economic Stimulus Plan, as well as new National Partnership Agreements for Social Housing and Remote Indigenous Housing; offset by

• $65 million redirection of annual programs to the repayment of debt; and

• $21 million reduction resulting from a combination of carryovers into 2008-09 that do not re-occur in 2009-10, and reclassifications to other expenditure lines.

The reduction in investing receipts for 2009-10 is the result of a smaller asset sales program than in 2008-09.

The increase in financing payments for 2009-10 is due to the repayment of debt, in accordance with SAHT’s financial viability strategy.

Other major resource variations in the cash flow statement arise principally from the same factors giving rise to variations in the income statement, as well as differences between the recognition of income and expenditure in the income statement under accrual accounting conventions, and the timing of cash based transactions.

12.58

Portfolio: Further Education, Employment, Science and Technology

Minister for Youth Minister for Employment, Training and Further Education Minister for Science and Information Economy

TABLE OF CONTENTS

PORTFOLIO SUMMARY



Ministerial Office resources .............................................................................................. 13.2

Agency Summaries

Department of Further Education, Employment, Science and Technology ....................... 13.4

PORTFOLIO: FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY


Minister Agency Programs Sub-Programs The Hon. Tom Koutsantonis Minister for Youth

Department of Further Education, Employment, Science and Technology

1. Office for Youth Nil

2. Employment and Skills Formation

2.1 Vocational Education and Training

2.2 Learning, Workforce Development and Employment

2.3 Regulatory Services 2.4 International and

Higher Education

The Hon. Michael O’Brien Minister for Employment, Training and Further Education Minister for Science and Information Economy

Department of Further Education, Employment, Science and Technology

3. Science, Technology and Innovation

3.1 Science and Innovation 3.2 Information Economy 3.3 Bioscience Industry

Development 3.4 Innovation Investment

Administered items

In addition to the above responsibilities the Portfolio administers the following items on behalf of the Minister.

• Minister’s salary and allowances pursuant to Parliamentary Remuneration Act 1990.

• Commonwealth funding of the National Centre for Vocational Education Research Ltd.

Statutes


13.1

WORKFORCE SUMMARY

FTEs as at 30 June

Agency 2009-10

Budget(a) 2008-09

Estimated Result(a) 2007-08

Actual(b) Department of Further Education, Employment, Science and Technology 3 381.5 3 525.3 3 598.5

Total 3 381.5 3 525.3 3 598.5 (a) The 2009-10 Budget and 2008-09 Estimated Result reflect the established FTE caps. (b) The 2007-08 Actual FTEs are based on preliminary data provided by DFEEST.


2009-10 Budget

Cost of provision Minister $000 FTEs The Hon. Michael O’Brien 987 7

13.2

TABLE OF CONTENTS

AGENCY: DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Objective ......................................................................................................................................... 13.5





1. Office for Youth............................................................................................................. 13.10

2. Employment and Skills Formation ................................................................................ 13.13

3. Science, Technology and Innovation ............................................................................. 13.22



Balance sheet......................................................................................................................... 13.28



Balance sheet – administered items ...................................................................................... 13.32



13.4

PORTFOLIO: FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY


Objective

To develop the skills and capability of the state’s workforce and to maximise the opportunities for all South Australians to engage in work.

The portfolio plays a central role in achieving 14 South Australia’s Strategic Plan targets in the areas of employment, education and training, and science, technology and innovation.

The department undertakes a range of functions in order to meet its objective and contribute to the achievement of South Australia’s Strategic Plan objectives and targets. This includes:

• in conjunction with the Training and Skills Commission, the provision of strategic policy advice for developing the state’s workforce;

• ensuring high quality vocational education and training (VET) delivered by TAFE institutes, private registered training organisations and adult community education providers;

• regulation of VET organisations, non-university higher education providers, and providers of English language intensive courses for overseas students;

• regulation, administration and funding of apprenticeships and traineeships;

• managing state funded employment and community development programs;

• supporting the government’s strategic direction in the higher education sector;

• raising the profile of South Australia in the international education market place;

• developing policies and strategies, and delivery of programs, that create opportunities for Aboriginal people, young people, people with a disability and older workers;

• provision of strategic advice and delivery of programs in the areas of science, technology, information economy and innovation policy; and

• coordinating a whole of government and community response in supporting young people, aged 12–25, and addressing issues affecting them.

13.5



Office for Youth • Develop and implement YouthCONNECT, a strategic youth

policy framework for South Australia • Contribute to the development and implementation of a

national Youth Development Framework • Develop and deliver an integrated Youth Participation Strategy Employment, Training and Further Education • Increase participation in vocational education and training

(VET) to 12.4 per cent of the working age population • Increase the number of qualification completions at

Certificate III and above to a yearly average of 20 500 • Exceed 21.2 million student hours in VET and reduce the cost

per student hour to $16.73 • Equal or better the national average for the proportion of VET

graduates employed or in further study after their training • Increase the proportion of apprentices and trainees completing

their training contracts before the nominal completion date of the contract term, from 49 per cent in 2008 to 53 per cent

• Continue to support individuals, especially young people, the marginalised and disengaged, to realise their capabilities and increase their participation in learning and work

• Through South Australia Works provide over 32 900 learning, skill development, training and work opportunities to South Australians, with over 8000 to gain employment

• Complete a review of the South Australia Works’ initiative to ensure its programs are responsive to current labour force trends and contribute more effectively to achieving the state’s social inclusion and economic development objectives

• Through the Productivity Places Program provide job seekers the opportunity to acquire skills through 3662 training places in 2009, and 4807 in 2010; and provide 6853 existing worker training places in 2009 and 10 882 in 2010

• Implement a range of policy and program responses to support people in employment and training given the impact of the global financial crisis

• Increase South Australia’s share of overseas students through: − increasing overseas student enrolments to above 30 100; − increasing the recognition of the state as Australia’s

premier study destination for overseas students and ensuring these students feel welcomed, valued and return home as ambassadors for South Australia; and

− implementing an international marketing strategy to increase the TAFE SA share of overseas students accessing education and training programs.

• Continue refinements in the workforce planning system including: − greater involvement by industry and economic

development agencies in planning and skills development; − improvements to labour market forecasting methods; and − providing high quality, coordinated and accessible career

development and workforce information services to assist individuals and industry in planning and decision-making.

• Develop a detailed purchasing plan in response to the five year Skills and Workforce Development Plan prepared by the Training and Skills Commission

• Continue to implement A Skills Strategy for South Australia’s Future through: − increasing the level of state government funding available

on a contestable basis; − increasing the uptake and embedding recognition of prior

learning as a pathway to a qualification; − increasing to 25 per cent the proportion of student hours

delivered by TAFE SA in work-based training by 2012;

Office for Youth • Established the Intra-Government Youth Action Committee to

develop an across government and community response to issues affecting young people

• Entered into a memorandum of understanding with the Local Government Association to guide and shape state and local government’s response to young people in South Australia

• Developed and delivered two Targeting Skills Needs in the Regions projects, in partnership with Industry Skills Boards and Commonwealth agencies, to assist young people to transition into further education, training and employment

Employment, Training and Further Education • Proclamation of the Training and Skills Development Act 2008

and establishment of a new Training and Skills Commission • Concluded agreements with the Commonwealth for Skills and

Workforce Development and Productivity Places Program • Increased the number of VET student hours to an estimated

20.1 million hours with the expenditure per student hour dropping to $17.06 per hour

• 90 per cent of VET graduates were employed or in further study after their training; and 90 per cent of VET graduates were satisfied with the quality of their training

• 88 per cent of employers engaged with the VET system were satisfied with nationally recognised training

• Through the Aboriginal Access Centre increased the proportion of Aboriginal students participating in training at Certificate III and above across TAFE SA programs by 9.4 percentage points

• Provided additional training opportunities through the Productivity Places Pilot Program to assist 2800 existing workers to upgrade their skills

• Through South Australia Works: − provided over 32 000 learning, skill development, training

and work opportunities to South Australians, with over 8400 people gaining employment;

− provided over 2000 clients with referral and brokerage services through the Skills Recognition Services; and

− received a Premier’s Award for Excellence for the South Australia Works for Aboriginal People program.

• Continued implementation of A Skills Strategy for South Australia’s Future to strengthen the VET system, including: − establishing a TAFE SA network of three devolved yet

connected institutes to respond with dexterity to client needs while harnessing the benefits of a wide network;

− increasing the total number of hours delivered through recognition of prior learning by 23 per cent since 2007;

− increasing the uptake of e-learning across TAFE SA program areas by 20 per cent; and

− developing an outline business case for a more integrated approach to managing and using TAFE SA infrastructure and information and communication technology systems to meet contemporary teaching and learning needs.

• South Australia’s international education industry continued to grow with: − overseas student enrolments increasing by 20 per cent to

27 900 in 2008; − South Australia’s share of overseas students in the

vocational education and training sector increasing from 2.5 to 3.0 per cent;

− overseas student enrolments for the higher education sector continued its fast growth, increasing by 7.4 percent compared to the national average of 4.7 per cent;

− South Australia’s share of overseas students in the English Language Intensive Courses for Overseas Students sector increasing from 4.1 to 4.4 per cent; and

13.6


− reducing the cost per hour of publicly funded training in South Australia for both TAFE SA and private providers;

− increasing the use of flexible e-learning by all VET providers;

− embedding case management to increase TAFE SA responsiveness in supporting disadvantaged learners; and

− developing a detailed full business case to examine each TAFE campus and identify appropriate infrastructure requirements and management strategies to meet the training and workforce development needs of employers and individuals.

• Commence construction of a new Victor Harbor TAFE Campus for completion in 2010

• Develop and implement a plan to ensure the state’s higher education institutions address national higher education targets

• Ensure optimal benefits for South Australia’s students and institutions from the national higher education reforms

• Contribute to the retention of overseas students to address skill needs in South Australia by boosting their job-hunting skills through joint Education Adelaide, Department of Trade and Economic Development, Business SA and DFEEST activity

• Play a lead role in coordinating government workforce development activities related to the implementation of the Government of South Australia’s Climate Change Action Plan

• Establish a TAFE SA Lead Centre for the development of skills in sustainability and a Lead Centre for hospitality

Science and Information Economy • Leverage funding from Commonwealth funding for digital

economy and broadband projects • Secure Australian Government research and development

resources to 10 per cent above the state’s per capita share • Exceed the national average investment of public expenditure

on research and development as a proportion of Gross State Product

• Finalise the state’s investment in research infrastructure through Round 1 of the National Collaborative Research Infrastructure Strategy

• Lead development of a whole of government South Australian Science and Mathematics Skills Strategy

• Work with industry to identify priority research and development needs and in building a strong and responsive renewable energy science base

• Lead a review of state government expenditure on research and development, and innovation to ensure alignment with the state’s economic development imperatives and improve coordination across government agencies

• Raise industry’s engagement in the Science Excellence Awards • Lead the Government of South Australia’s response to the

Commonwealth Government’s proposed National Broadband Network

• Secure broadband usage as a percentage of household internet connections to within five per cent of the national average

• Further develop and implement the priority actions identified by the Information Economy Advisory Board as part of its work on ICT skills

• Develop and publish a Digital Bridge Strategy • Implement the Information Economy Agenda 2009-2014 • Bio Innovation SA will continue to provide life science

companies with access to sophisticated laboratory and office space, land ready for commercial biotech development in Thebarton as well as business development support and access to venture capital in South Australia

• Playford Capital will actively manage a portfolio of six South Australian companies commercialising innovative products and services

− the launch of the South Australian International Education Industry Plan 2008–2014.

• World class universities, Cranfield University and University College London, established branches in Adelaide

• Secured $7.3 million through the National Training Infrastructure Program for the purchase, construction, fit out or refurbishment of facilities for the delivery of accredited VET

• In conjunction with the Economic Development Board (EDB) and the Department of Trade and Economic Development: − developed labour supply and demand scenarios published

in the Economic Statement and the EDB Review of Skills and Workforce Development in South Australia; and

− prepared detailed industry, regional and occupational analysis to support the Training and Skills Commission.

• Implemented refinements to the workforce planning system as recommended in the EDB Review of Skills and Workforce Development in South Australia including: − greater involvement by industry in identifying skills

priorities and strategies through new arrangements with the nine industry skills boards and the development of industry workforce action plans; and

− facilitating the take-up of workforce development strategies by employers through expanding the resources and tools available in the Workforce Information Service, and the launch of the Workforce Development Showcase.

Science and Information Economy • South Australia’s public expenditure on research and

development in the most recent Australian Bureau of Statistics (ABS) data (2006-07) is 1.2 per cent of Gross State Product compared with an average investment for other Australian states of 0.8 per cent

• Secured Australian Government research and development resources of an estimated 15 per cent above our per capita share which exceeds South Australia’s Strategic Plan target of 10 per cent above per capita share by 2010

• Committed a further $1 million to the Constellation SA initiative including the mapping of the state’s research and development capabilities in advanced manufacturing, social sciences, water management and renewable energies

• Invested $4.22 million in the Premier’s Science and Research Fund projects that include five new research and development projects focussing on water management and climate change

• Supported establishment of the Trans Tasman Commercialisation Fund providing early stage funding for commercialisation of research in South Australia’s three local universities with investment of $1.25 million over five years

• The Premier’s Science and Research Council completed a Report on Engaging Students in Science and Mathematics Education in Our Schools – A Five Year Strategy

• Provided a further $1.2 million for 12 Cooperative Research Centres including three headquarters for seafood, pork and environmental remediation research

• Implemented broadband solutions in regional and metropolitan Adelaide in the context of national broadband programs

• Supported the Information Economy Advisory Board to develop an ICT Skills Strategy for the state

• Bio Innovation SA opened the business incubator building in July 2008 at Thebarton which is now fully occupied by early stage biotech companies

• Bio Innovation SA fostered bioscience industry development by providing business incubator space, land, infrastructure, grants, business development and capital raising assistance and bioscience industry networking opportunities

• Playford Capital invested $1.4 million of Commonwealth Information and Communications Technology Incubators Program funds into four South Australian innovative technology companies

13.7


• Playford Capital will target $1.5 million investment and $5 million co-investment from private investors and government grants into innovative companies commercialising research and development

• Playford Capital exceeded the co-investment target of $2.3 million agreed with the Commonwealth, having assisted its investee companies to secure over $9 million in private sector and government funding

13.8



2009-10Budget


2008-09 Budget

2007-08 Actual

Program $000 $000 $000 $000 1. Office for Youth ......................................... 4 739 4 636 4 613 4 151

2. Employment and Skills Formation ............. 351 689 261 489 258 645 261 739

3. Science, Technology and Innovation.......... 25 871 31 300 27 290 33 998

Total 382 299 297 425 290 548 299 888

Note: The 2009-10 Budget reflects the change in management of funding received from the Commonwealth Government. A significant proportion of this funding is now received by the Department of Treasury and Finance and provided to the Department of Further Education, Employment, Science and Technology as appropriation. This change results in an increase in the net cost of services for program 2 in the 2009-10 Budget.


2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

New works

Better TAFE Facilities................................ 10 976 — — —

Total new works 10 976 — — —

Works in progress

Adelaide Campus Atrium........................... 50 1 355 1 405 949 Gilles Plains TAFE Campus — Veterinary and Applied Science ................. — — — 29 Dental Upgrade — Gilles Plains ................ — — — 3 494 Marleston TAFE Campus — Stage 1 ......... — — 500 87 Narungga Redevelopment .......................... 20 630 500 48 Mt Gambier TAFE Campus — Modifications ............................................. — — — 140 Mimili......................................................... — — — 8 Student Information System ....................... 5 529 3 723 5 523 — Victor Harbor — New TAFE Campus ....... 6 332 1 686 4 100 114


Minor works

Clever Networks......................................... — — — 309 IT Systems and Infrastructure..................... — 1 000 1 000 1 699 Minor Works .............................................. 3 074 2 429 1 962 815

Total minor works 3 074 3 429 2 962 2 823

Annual programs

Purchase of Plant and Equipment ............... 1 931 2 958 2 000 1 956

Total annual programs 1 931 2 958 2 000 1 956


13.9


Program information

Program 1: Office for Youth

Description/Objective: The Office for Youth has a significant leadership role in coordinating a whole of government and community response in supporting young people, aged 12 to 25, and addressing issues affecting them. It achieves this through:

• developing strong partnerships across government, the youth sector, business and the community;

• creating and supporting opportunities for young people to have a voice and make an informed contribution to public debate; and

• providing young people with positive experiences and opportunities which enhance their strengths and capacity, and which affirm their contributions to their communities and their ability to shape their own future.


Program 1: Office for Youth 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 2 152 2 116 2 078 2 137 Supplies and services........................................ 1 299 1 236 1 256 908 Grants and subsidies ......................................... 1 328 1 344 1 363 1 336 Other................................................................. 23 22 27 4

Total expenses 4 802 4 718 4 724 4 385

Income Sale of goods and services................................ 3 22 — — Commonwealth revenue ................................... 19 19 — — Other grants revenue......................................... — — — 47 Other................................................................. 41 41 111 187

Total income 63 82 111 234


13.10


Program: 1 Office for Youth

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The Office for Youth provides programs, policy initiatives and grants to facilitate the active participation of young people in all aspects of their community, and to support their personal and skill development. Highlights for 2008-09 include: • Establishing the Intra-Government Youth Action Committee (I-YAC) to develop across government and community responses to

issues affecting young people. The I-YAC has senior representatives from state government agencies, local government, the Minister’s Youth Council and key youth sector stakeholders.

• Strengthening relationships with local government through: - entering into a memorandum of understanding with the Local Government Association to guide and shape state and local

government responses to young people in South Australia; and - funding 58 Youth Advisory committees who were responsible for delivering 125 National Youth Week events across

South Australia, with over 1000 young people involved in running these events, and approximately 17 000 young people in attendance.

• Strengthening relationships with the youth sector through the provision of funding to the Youth Affairs Council of South Australia under a triennial funding agreement, which included delivery of: - bi-monthly meetings with youth sector networks; - development of a youth participation training manual and delivery of youth participation training to young people; and - consultations with the sector regarding the development of a voluntary Code of Ethics.

• Developing and delivering two Targeting Skills Needs in Regions programs which attracted approximately $400 000 in Commonwealth funding. - Ignite is a $556 000 project that is being delivered in partnership with Primary Industries and Resources, Conservation

Volunteers Australia and the SA Primary Industries Skills Council. Ignite is a youth entrepreneur project that offers 40 young people the opportunity to develop skills, networks and support required to establish and expand commercially and environmentally sustainable agri-enterprises.

- Southern Edge is a $237 300 project that is being delivered in partnership with Southern Futures, the Manufacturing Industry Skills Advisory Council and the SA Health and Community Services Skills Board. Southern Edge will provide 50 local young people with relevant industry training, access to youth development activities and exposure to employment within the southern suburbs. In addition participating employers will be supported to better understand the needs of young people and develop appropriate youth recruitment and retention strategies.

• Delivery of three youth policy A-Teams which produced a series of recommendations addressing: - the sustainability of food value chains in the Barossa Light region — a partnership with Thinker in Residence Dr Andrew

Fearne; - how the future of the Riverland could be sustained by the use of information and communication technology — a partnership

with Thinker in Residence Dr Genevieve Bell; and - how disadvantaged young people from new and emerging communities might be better supported in learning and earning.

• More than 1200 young people completing the active8 Premier’s Youth Challenge during 2008. Over 1000 young people are being provided with the opportunity to complete this program during 2009.



2008-09 Target

2007-08 Actual

No. of young people involved in government and community decision making processes

2 000 2 000 2 000 3 020(a)

Percentage and amount of Office for Youth grant funding provided to initiatives which engage disadvantaged young people

35% 47%(b) 30% 33%

No. of young people who participate in youth development programs

2 600 2 500 2 500 2 770(d)

No. of new participants in Duke of Edinburgh’s program

1 500 1 500 1 500 1 530

% and no. of young people who complete the Duke of Edinburgh program as part of a course leading to a qualification

45% (675)

43%(c)

(650) 52%(c) (780)

41% (640)

No. of young people volunteering in their local communities through youth programs

4 400 4 380 4 200 4 650(d)

continued

13.11

Program: 1 Office for Youth continued

Footnotes (a) During 2007-08 approximately 1000 young people participated in the YouthCONNECT consultation forums, resulting in increased

participation that will not be repeated in ongoing years. (b) The results for 2008-09 are higher than anticipated due to additional funding provided to the Duke of Edinburgh’s Awards for the

Reach Your Dreams initiative of which 100 per cent went towards supporting only participants from disadvantaged groups. (c) Completion figures are based on an estimation of the number of young people due to complete their award within the financial year;

however, the actual time taken is driven by the individual. (d) Most youth development programs contain an element of volunteering. This higher than anticipated figure for volunteering

correlates to the higher than anticipated number of young people participating in youth development programs.

13.12


Program information

Program 2: Employment and Skills Formation

Description/Objective: To strengthen the economic prosperity and social wellbeing of South Australians through strategic employment, skills formation and further education activities.


Program 2: Employment and Skills Formation

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 255 159 258 994 259 929 258 972 Supplies and services........................................ 173 993 142 595 134 817 131 985 Grants and subsidies ......................................... 48 905 53 113 44 635 50 556 Depreciation and amortisation .......................... 20 399 19 817 18 074 20 020 Other................................................................. 3 544 3 430 4 349 4 005

Total expenses 502 000 477 949 461 804 465 538

Income Sale of goods and services................................ 92 355 88 649 88 678 85 764 Commonwealth revenue ................................... 3 917 61 241 106 380 106 190 Other grants revenue......................................... 51 693 64 216 5 817 8 502 Interest income ................................................. — — — 28 Gain/loss on disposal of assets.......................... — — — -673 Other................................................................. 2 346 2 354 2 284 3 988

Total income 150 311 216 460 203 159 203 799


13.13


Sub-program: 2.1 Vocational Education and Training

Provision of post secondary vocational education and training (VET) by TAFE SA and other registered training organisations including: • resource allocation of contestable and non-contestable funds; • funding of apprenticeships and traineeships; • support for post secondary training and education; and • providing state and national policy advice.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The proportion of South Australians aged 15 to 64 participating in VET has increased from 11.1 per cent in 2007 to an estimated 12.2 per cent of the population in 2008. The increase in VET participation is partly due to the Productivity Places Program. The number of student hours for 2008 is estimated at 20.1 million hours which is 1.6 million hours above the 2008-09 target. The proportion of qualification completions at Certificate III and above has exceeded the targets for each of the priority groups — female students, indigenous students, students from a non-English speaking background, and students with a disability. Since 2006 the expenditure per nominal hour of training activity has decreased from $18.56 (expressed in 2008 dollars) to an estimated $17.06 in 2008. There are a number of key policy processes and reform packages underway including A Skills Strategy for South Australia’s Future and the Commonwealth’s Productivity Places Program that will implement further initiatives to strengthen the VET system and increase the VET participation and completion rates to meet the skill needs of the state’s economy and community. The department administers the Productivity Places Program to assist job seekers to acquire skills and gain lasting employment and for existing workers to update or upgrade their skills: • $117 million will be provided by Commonwealth (50 per cent), state government (40 per cent) and industry contributions

(10 per cent) to achieve up to 38 753 training places for existing workers in skills demand areas over the period 2008–12; and • the Productivity Places for Job Seekers Program was allocated $8.06 million in 2009 for a minimum of 3662 training places for job

seekers to commence training towards qualifications at Certificate II, III, IV and Diploma levels. A further $31.61 million has been allocated to 2012 to fund up to an additional 13 563 training places.

In 2008–09 South Australia secured capital funding of $5.2 million for 14 new projects and a further $2.1 million for nine existing projects through the National Training Infrastructure Program for the purchase, construction, and fit out or refurbishment of facilities intended for the delivery of accredited vocational education and training. TAFE SA is the public provider of VET in South Australia. It plays a critical role in delivering the government’s objectives to improve economic and social development, the skill base and employment opportunities for all South Australians. TAFE SA highlights for 2008-09 include: • delivery of an estimated 14.5 million publicly funded student hours; • delivery of an estimated 19.3 million student hours from all funding sources, an increase of 2.3 per cent on the previous year; • 92 per cent of TAFE SA graduates were employed or in further study after training, which is 2.0 percentage points above the national

average; • TAFE SA’s degree programs experienced a 20.2 per cent increase in student numbers primarily due to international marketing efforts,

and negotiated articulation arrangements with a number of overseas schools and colleges; • through the Aboriginal Access Centre increased the participation rates of Aboriginal students in Certificate III and above across all

TAFE SA programs by 9.4 percentage points; • establishing a single point of entry for industry to access TAFE SA with the introduction of Industry Account Managers for each

program area and a 1300 number for industry; • opening of the redeveloped Centre for Dental Studies at TAFE SA Gilles Plains Campus; • establishing Enterprise Advisory Groups to provide a coordinated opportunity for Industry to play a key role in advising and

improving effectiveness within program areas to directly meet industry needs; • establishing a TAFE SA network of three devolved yet connected institutes to respond with dexterity to client needs while harnessing

the benefits of a wide network; • increasing the proportion of the total number of student hours delivered through recognition of prior learning to 8.3 per cent, which is

on track to achieve the target of 20 per cent by 2012; • partnerships with industry to deliver training programs to meet the needs of people with a disability, with client focused further

education and employment opportunities; and • expanding opportunities for young people and adult learners by negotiating and developing study pathways through credit transfer and

articulation arrangements between TAFE SA, SACE Board of South Australia and the three South Australian universities. continued

13.14

Sub-program: 2.1 Vocational Education and Training continued


2008-09 Estimated result(a)

2008-09 Target

2007-08 Actual

Proportion of South Australians aged 15 to 64 participating in VET(b)

12.4% 12.2% 11.4% 11.1%

Student groups as a proportion of all VET students

• female students 50.0% 50.0% 50.0% 50.5%

• indigenous students 5.0% 4.5% 5.0% 4.4%

• students from a non-English speaking background

13.0% 12.0% 12.0% 12.8%

• students with a disability 10.0% 9.0% 8.0% 10.0%

No. of student hours (annual hours of curriculum adjusted)(c)

21 200 000(c) 20 100 000(d) 18 500 000(e) 20 370 000(f)

Load pass rates(g) 80.0% (g) 78.8% 78.5% 87.7%

Proportion of qualification completions at Certificate III and above

75.0% 73.0% 70.0% 71.7%

Proportion of qualification completions at Certificate III and above categorised by student groups:

• female students 75.0% 75.0% 71.0% 74.0%

• indigenous students 61.0% 60.0% 46.0% 59.6%

• students from a non-English speaking background

75.0% 75.0% 70.0% 75.1%

• students with a disability 66.0% 65.0% 58.0% 62.0%

Proportion of apprentices and trainees completing their training contract

58% 57% 57% 58%

VET students rating their satisfaction with quality of training at four or more on a scale of 1 (strongly disagree) to 5 (strongly agree)

• module completers 86.0% 86.0% 86.0% 88.3%

• graduates 90.0% 90.0% 90.0% 91.9%

% of graduates unemployed before TAFE course who found work after training

55.0% 50.0%(h) 55.0% 58.3%(h)

% of VET graduates employed or in further study after the training

90.0% 90.0% 90.0% 91.9%

% of international students in VET 2.0% 1.7% 1.7% 1.5%

Expenditure per nominal hour of training activity

$16.73(i)(j) $17.06(i)(j) $17.59(i)(j) $17.12(i)(j)

Footnotes (a) All 2008-09 estimates are based on preliminary 2008 calendar year data except for qualification completions which are based on

2007; and apprentices and trainees completing their training contract which is based on the July–December 2008 results. (b) The performance indicators on student participation in the VET system refer to activity based on Commonwealth and state recurrent

and specific funding for VET, fee-for-service and overseas full fee paying students. (c) The performance indicator on student hours refers to activity based on Commonwealth and state recurrent funding for VET; and

from 2009-10 includes the student hours from the Productivity Places Program. It does not include Commonwealth and state specific funding for VET, fee-for-service and overseas full fee paying students. The number of student hours is not comparable to the proportion of South Australians participating in VET — refer to footnote (b).

(d) The 2008-09 Estimated Results are the nominal (unadjusted) student hours. The result for the conversion from nominal hours to adjusted hours is scheduled to be completed in July 2009. The 2008-09 Estimated Result is not comparable with 2007-08 Actual until the adjustments have been made.

(e) The target for 2008-09 was part of the 2005-08 Commonwealth-state bilateral funding agreement for Skilling Australia’s Workforce.

continued

13.15

Sub-program: 2.1 Vocational Education and Training continued

Footnotes (f) The 2007-08 Actual result is the number of adjusted student hours. The comparatively high number of hours is a result of anomalies

in the conversion of some program nominal hours to adjusted hours. The process has been corrected for reporting the 2008-09 result. (g) In 2009 the Load Pass Rate will be calculated differently. The 2009-10 Target is above the most recent Australian national average

of 78.8 per cent in 2007. National Centre for Vocational Education Research (NCVER) has changed the method of calculating the published cost of VET. For the Portfolio Statement and other local reporting DFEEST has retained the older methodology for consistency with prior years.

(h) The 2007-08 Actual result is historically high, with results in previous years varying between 50 per cent and 55 per cent. (i) NCVER has changed the method of calculating the published cost of VET. For the Portfolio Statement and other local reporting

DFEEST has retained the older methodology for consistency with prior years. (j) The expenditure per nominal hour of training activity is calculated on a calendar year basis and is expressed in 2008 dollars for the

2009-10 Portfolio Statements. Since 2006-07 the expenditure per nominal hour, when expressed in 2008 dollars, has decreased by $1.50 from $18.56 to $17.06 in 2008-09. The 2008-09 target when expressed in 2007 dollars was $16.85.

Sub-program: 2.2 Learning, Workforce Development and Employment

Addressing the state’s economic development and social inclusion objectives by: • providing opportunities for people to participate in employment, training, skills development, and adult community education; • meeting the current and future labour and skill needs of industry; and • providing state and national policy advice.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The department, through the South Australia Works initiative, provided learning, skills development, training and work opportunities for people who have difficulty entering or staying in the workforce, particularly young people, Aboriginal people and the mature aged unemployed. The initiative has also improved South Australia’s workforce capability by assisting industry to address current and future labour and skill demands. Highlights for 2008-09 include: • 32 000 people across metropolitan and regional areas participated in learning, skill development, training and work programs with

over 8400 people gaining a job; • 8300 young people participated in work programs, with 4175 (50 per cent) gaining a job; • 1580 Aboriginal people participated in work programs, with 795 (50 per cent) gaining a job; • 3620 mature aged people participated in work programs, with 1620 (45 per cent) gaining a job; • 3500 apprentices and trainees in Group Training Organisations; • 615 retrenched workers were assisted through the Labour Market Adjustment Program, with 452 (73 per cent) gaining a job; and • commenced implementation of Careers SA (Career Development Framework), including the establishment of a further two Career

Development Services in Eastern Adelaide and Murraylands. The department leads South Australia’s workforce development objectives. Highlights for 2008-09 include: • promotion of key principles to improve the effectiveness of labour market programs based on research contained within What Works

Well in South Australia Works in the Regions and its application to leverage the state’s effort with the Commonwealth’s new policies and programs;

• in conjunction with the Economic Development Board (EDB) and the Department of Trade and Economic Development: − developed labour supply and demand scenarios published in the EDB Economic Statement and the EDB Review of Skills and

Workforce Development in South Australia; and − prepared detailed industry, regional and occupational analysis to support the Training and Skills Commission.

• implemented refinements to the workforce planning system as recommended in the EDB Review of Skills and Workforce Development in South Australia including: − greater involvement by industry in identifying skills priorities and strategies through new arrangements with the nine industry

skills boards and through the development of industry workforce action plans; and − facilitating the take-up of workforce development strategies by employers by expanding the range of workforce planning

resources and tools available through the Workforce Information Service, and the launch of the Workforce Development Showcase.

continued

13.16

Sub-program: 2.2 Learning, Workforce Development and Employment continued



2008-09 Target

2007-08 Actual

Total no. of participants in South Australia Works learning, skills development, training and work programs

32 945 32 135(a) 29 264 36 572(a)

Total no. of participants in South Australia Works programs(b) for:

15 400(c) 16 745(a) 15 623 19 003(a)

• Public sector(d) 1 255 1 226 1 183 1 151

• Industry(e) 4 325 4 820(a) 4 040 5 236(a)

• Regions(f) 6 800 6 434 6 400 8 152

• Communities(g) 3 020(h) 4 265 4 000 4 464

Proportion and no. of participants gaining a job through work programs

53% (8 205)

50% (8 430)

51% (7 910)

44% (8 430)

• Public sector 68% (850)(d)

67% (820)(d)

74% (874)

61% (704)

• Industry 54% (2 315)

53% (2 575)(a)

50% (2 014)

46% (2 399)

• Regions 53% (3 605)

53% (3 405)

53% (3 400)

45% (3 646)

• Communities 48% (1 435)(g)

38% (1 630)

41% (1 622)

38% (1 681)

Total no. of participants in work programs by priority target group:

• young people aged 15-24 8 300 8 300 8 265 9 008

• mature aged people aged 40+ 3 315 3 620 3 050 4 910

• Aboriginal people 1 735 1 580 1 500 1 866

Proportion and no. of participants gaining a job through work programs by priority target group:

• young people 53% (4 415)

50% (4 175)

50% (4 120)

47% (4 201)

• mature aged people 50% (1 670)

45% (1 620)

44% (1 330)

35% (1 699)

• Aboriginal people 52% (895)

50% (795)

50% (745)

46% (860)

Total no. of participants in South Australia Works learning, skills development, and training programs:

17 545 15 390 13 641 17 569

• Adult Community Education 11 000 11 000 11 000 12 702

• Tauondi Aboriginal College 690 650 641 517

• Skills Recognition Services 2 200 2 000 2 000 2 591

• Learning Programs for Young People(i) 2 500 675 — (i) 722

• Other(j) 1 155 1 065 — (i) 1 037

No. of training hours delivered through South Australia Works learning, skills development, training and work programs:

• accredited 885 000 895 231(k) 720 804 1 051 933(k)

• non-accredited 467 000 504 150(k) 364 000 612 470(k)

continued

13.17

Sub-program: 2.2 Learning, Workforce Development and Employment continued

Footnotes

(a) The 2008-09 Estimated Result and 2007-08 Actual result exceed the 2008-09 Target as they include demand driven programs such as the Labour Market Adjustment Program. In 2007-08 and 2008-09 there was additional funding through Skills for South Australia — building on strong foundations and the Commonwealth Government which resulted in a higher number of participants.

(b) The indicator and performance data include participants in the priority target groups of young people, mature aged people, and Aboriginal people, as well as other groups including people with a disability, migrants and unemployed or under-employed participants between 25 and 39 years of age.

(c) The 2009-10 Target does not include work programs that concluded in 2008-09. (d) Public sector work programs include public sector traineeships, apprenticeships and cadetships along with other programs that build

diversity in the public sector. (e) Industry work programs include apprentices and trainees in Group Training Organisations, participants in the demand driven Labour

Market Adjustment Program and other programs which assist industry to address current and future labour and skill demands. Targets are not set for demand driven programs.

(f) Regions work programs address specific training and employment needs of non-metropolitan and metropolitan regions. (g) Communities work programs address specific training and employment needs within communities. In 2007-08 and 2008-09 there

was additional funding through Skills for South Australia — building on strong foundations and the Commonwealth Government which resulted in a higher number of participants.

(h) The 2009-10 Target is lower as community based programs for young people which focus on school retention are now reflected in learning, skill development and training programs.

(i) New indicator: Learning Programs for Young People focuses on the retention of young people in learning. No target was set for 2008-09.

(j) New indicator. Other includes programs which focus on: existing workers updating or upgrading their skills; the retention of young people in learning; and job seekers acquiring foundation skills to gain lasting employment. No target was set for 2008-09.

(k) In 2007-08 and 2008-09 there was additional funding through Skills for South Australia — building on strong foundations and the Commonwealth Government which resulted in a higher delivery of accredited and non-accredited training hours.

13.18

Sub-program: 2.3 Regulatory Services

Administering the state’s further education and training system through: • provision of registration, accreditation and approval services for registered training organisations; • quality oversight of the state vocational education system, through the Training and Skills Commission; • administration of the apprenticeship and traineeship system; and • providing state and national policy advice.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The delivery of vocational education and training (VET) and higher education services (other than that provided by South Australian universities), including those to overseas students, is regulated under the Training and Skills Development Act 2008. The Act provides the basis for ensuring the education and training providers in the VET and higher education sectors and the courses they deliver are quality assured under nationally agreed education and training standards. The department regulates these sectors under delegation from the Training and Skills Commission. During 2008-09 an external review of the department’s regulation services resulted in a range of changes being made to improve the efficiency and effectiveness of these services. Currently there are 315 registered providers approved to deliver training under the Act. The department administers the traineeship and apprenticeship system, in accordance with the Act under delegation from the Training and Skills Commission. As at 30 September 2008, there were approximately 33 500 trainees and apprentices in South Australia. Highlights include: • the number of apprentices and trainees undertaking training in South Australia remains high. In the 12 months to 30 September 2008,

there were approximately 21 800 apprenticeship and traineeship commencements, a 2.8 per cent increase on the 21 200 commencements in the previous 12 months;

• the department administers travel and accommodation subsidies for eligible apprentices and trainees who need to travel significant distances to attend their off-the-job training. Since July 2008, some 750 apprentices and trainees have been assisted to meet the cost of travel and accommodation; − from 1 July 2008, intrastate accommodation subsidies increased by 100 per cent, to $24 for each day of training. This was the

final phase of amendments to the travel and accommodation policy, following a review in 2007. The 2008-09 budget for travel and accommodation rose from $875 000 to $1 775 000 in support of these measures; and

• the provision of $1 500 000 in subsidies to some 600 employers in drought affected areas in South Australia to assist them to retain approximately 1000 apprentices in employment and training.



2008-09 Target

2007-08 Actual

No. of applications from training providers assessed against registration requirements(a)

270 258(a) 210 240

% and no. of registered training providers demonstrating compliance at time of audit(b)

72% (90)(b)

78% (202)

75% (158)

73% (176)

% and no. of registered training provider applications assessed within client service standards

80% (212)

60%(c) (159)

85% (178)

78% (185)

No. of national training package qualifications made available for delivery during the year

300 354(d) 250 265

No. of South Australian qualifications accredited

70 62(d) 70 66

No. of qualifications made available as a traineeship/apprenticeship

250 306(e) 150 190

% of clients satisfied with the quality of recognition services provided

95% 85%(c) 95% 95%

No. of new training contract commencements

demand driven 18 000(f) demand driven 21 662

No. of Registered Training Organisations with User Choice funding agreements(g)

__(h) 255 234 237

% of User Choice funds expended on Certificate III qualifications and above

90%(i) 92% 90% 88%

continued

13.19

Sub-program: 2.3 Regulatory Services continued



2008-09 Target

2007-08 Actual

% of training contracts approved within 10 days from time of receipt

80% 75% 80% 72%

% of satisfied clients as measured through annual sample surveys:

• trainees/apprentices 95% —(j) 95% 89%

• employers 95% —(j) 95% 88%

Footnotes (a) An estimated total of 258 applications were received from registered and non-registered training providers and assessed against

registration requirements in 2008-09 compared to 240 in 2007-08. (b) In 2009-10 the proportion of registered training providers demonstrating compliance at time of audit will be calculated differently.

The 2009-10 Target is not comparable to the 2008-09 Estimated Result or the 2007-08 Actual result. In previous years the calculation was based on the proportion of applications received from registered and non-registered providers which met the national standards. From 2009 the emphasis is on the proportion of registered training providers who were compliant with the national standards at the time of registration renewal or a monitoring audit.

(c) The 2008-09 Estimated Result is below target and has been addressed by organisational changes in the department. (d) The number of qualifications accredited and training package qualifications made available for delivery will be influenced by the

cycle of development and review. (e) The number of qualifications made available as a traineeship/apprenticeship has exceeded the target due to the endorsement of

training packages containing large numbers of qualifications. (f) A decline in commencements in the December quarter, possibly as a consequence of the economic downturn has been factored into

the estimated result. (g) Performance reported on a calendar year basis. (h) This indicator is redundant. The number of Registered Training Organisations with a User Choice funding agreement does not

indicate performance. All Registered Training Organisations that are registered to deliver qualifications that appear on the User Choice price list are eligible to apply for a User Choice funding agreement.

(i) The percentage of User Choice funds expended on Certificate III qualifications and above has risen 15 percentage points to 92 per cent since 2005. The target acknowledges that a small proportion of the funding continues to support entry level training.

(j) At the time of publication the annual client satisfaction survey had not been completed.

13.20

Sub-program: 2.4 International and Higher Education

Supporting the development of Adelaide as a centre for education, international education and South Australian education exports including the provision of marketing services, analysis and student and community support. Provision of high-level strategic policy advice to the Minister on higher education policy and planning.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary South Australia continued its overseas student growth, with 27 900 international students studying in South Australia in 2008, representing 5.1 per cent of the total number of international students studying in Australia. International education highlights include: • Adelaide’s international student numbers increased by 20 per cent; • strong growth was recorded for every South Australian education sector, in particular, international student enrolments for the

Vocational Education and Training sector grew 76.5 per cent in 2008 compared to a national increase of 46.4 per cent, thereby pushing the state’s share from 2.5 to 3 per cent of the national total;

• English Language Intensive Course for Overseas Students (ELICOS) sector enrolments rose by 32.8 per cent for South Australia compared to a national rise of 23.4 per cent, pushing the state’s market share from 4.1 to 4.4 per cent;

• South Australia’s share of the total number of overseas students in Australia remains at 5.1 per cent, however actual enrolment numbers exceeded the planned target by more than 2500; and

• the targeted share for South Australia’s international education industry for 2009 is 6.7 per cent and 9 per cent by 2014. While the industry has aspirations to grow above the forecast growth rate for Australia, they place an equal value on developing a sustainable international education industry offering a quality education experience with good graduate outcomes for our international students.

The department continued to provide high-level strategic policy advice to the Minister on higher education policy and planning. Higher education highlights for the year include: • supported the Higher Education Council to facilitate university collaboration and respond to national and state higher education

initiatives; • negotiated a whole of government submission to the Review of Australian Higher Education; • contributed to the Premier’s Science and Research Council review of science and maths education and continued to assist

South Australian universities with improvements to the teaching of maths and science in schools; • led a cross-government review of the national protocols to streamline the application process for quality foreign universities; • completed an audit of South Australian government expenditure on universities to better align funding with South Australia's

Strategic Plan targets; • provided scholarships worth $50 000 to support students into the resources industry; • developed initiatives to improve university participation especially by people of low socio-economic status and Aboriginal people; • contributed to a number of South Australian university reviews; • amended the University of South Australia Act to implement new governance arrangements; and • supported South Australia’s bids for Commonwealth infrastructure funding. In 2009-10 the department will: • respond to the Review of Australian Higher Education; • develop and implement a plan to ensure South Australian higher education institutions address new national higher education targets; • engage in the national higher education reform agenda to ensure optimal outcomes for South Australian students and institutions; • assist the Higher Education Council and the Training and Skills Commission to develop strategies for meeting the high-end skills

needs of industry; and • further enhance the study experience for international students in South Australia.



2008-09 Target

2007-08 Actual

South Australia’s share of overseas students(a)

6.7% 5.1% 6.2% 5.1%

Growth in South Australia’s international student commencements(a)(b)

18 700 16 300 13 600 12 500

Growth in South Australia’s international student enrolments(a)(b)

30 100 27 900 25 300 23 300

Footnotes (a) The Commonwealth Department of Education, Employment and Workplace Relations (DEEWR) categorises International Education

into Higher Education, Vocational and Technical Education (VTE), English Language Intensive Courses for Overseas Students, Schools, and Other sectors — Other includes Foundation, Bridging and Enabling Courses plus other courses that do not lead to a qualification under the Australian Qualifications Framework.

(b) The target is to grow the number of international student commencements and enrolments. These targets and results are shown as student totals with growth being the difference between the years.

13.21


Program information

Program 3: Science, Technology and Innovation

Description/Objective: Provides the government’s principal strategic focus for science, technology, information economy and innovation policy development and program delivery that links government, business, industry and education sectors.


Program 3: Science, Technology and Innovation

2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 3 164 3 239 3 247 3 316 Supplies and services........................................ 538 637 568 1 325 Grants and subsidies ......................................... 22 404 27 897 23 514 29 804 Other................................................................. 35 33 41 6

Total expenses 26 141 31 806 27 370 34 451

Income Sale of goods and services................................ — 55 — — Commonwealth revenue ................................... 220 242 80 133 Other grants revenue......................................... 50 209 — 66 Other................................................................. — — — 254



13.22


Sub-program: 3.1 Science and Innovation

Provision of high level strategic advice to the Minister on maximising economic, environmental and social benefits from the state’s scientific research and innovation by: • identifying strategic priorities for state government investment; • raising awareness and understanding of the benefits of science and innovation amongst government, business and the community; • facilitating coordinated and strategic bids for Commonwealth grants; and • facilitating coordination of education and research activity with end-user (industry) requirements to maximise the benefits for

South Australia.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary In 2008-09 the department continued the implementation of the Science, Technology and Innovation (STI10) policy vision. Highlights include: • South Australia’s public expenditure on research and development in the most recent Australian Bureau of Statistics data (2006-07) is

1.2 per cent of Gross State Product compared with an average investment for other Australian states of 0.8 per cent; • secured Commonwealth research and development resources of an estimated 15 per cent above per capita share which exceeds

South Australia’s Strategic Plan target of 10 per cent above per capita share by 2010; • investment of $4.22 million in the Premier’s Science and Research Fund (PSRF) projects that include five new research and

development projects focussing on water management and climate change. The investment from the PSRF of $3.75 million in these new projects over three years (2008-09 to 2010-11) will be matched by industry/institutional funding of over $7 million;

• supported the establishment of the Trans Tasman Commercialisation Fund providing early stage funding for commercialisation of research in South Australia’s three local universities with investment of $1.25 million over five years;

• further investment of $7.56 million in research infrastructure under the Commonwealth’s National Collaborative Research Infrastructure Strategy highlighted by opening of a large animal imaging facility at Gilles Plains, launch of a $30 million plant accelerator glasshouse at Waite Campus and new scientific equipment at the Ian Wark Research Institute and Australian Wine Research Institute;

• successfully promoted science and research to the community through the fourth South Australian Science Excellence Awards, a conference focussed on research and innovation and investment in Tall Poppy Campaign, National Science Week, and CSIRO Science Education Centre;

• the Premier’s Science and Research Council completed a report on Engaging Students in Science and Mathematics Education in Our Schools — A Five Year Strategy. The report is being considered by the Department of Education and Children’s Services;

• provided a further $1.2 million for 12 Cooperative Research Centres with a presence in South Australia. This included funding for three headquarters for seafood, pork and environmental remediation research;

• provided support to win two new Australian Research Council's Federation Fellowships for South Australia; and • invested a further $1 million on a suite of projects to support research under the Constellation SA framework with a particular

emphasis on resources and energy, water and the social sciences and produced a comprehensive mapping of research capabilities and needs in the advanced manufacturing, water research, renewable energy and social science sectors.

In 2009-10 the department will: • finalise the state’s investment in research infrastructure through Round 1 of National Collaborative Research Infrastructure Strategy; • lead the development of a whole of government South Australian Science and Mathematics Skills Strategy; • work with industry to identify priority research and development needs and in building a strong and responsive renewable energy

science base; • lead a review of state government expenditure on research and development and innovation to ensure alignment with the state’s

economic development imperatives and improve coordination across government agencies; and • increase industry engagement in the 2009 Science Excellence Awards.



2008-09 Target

2007-08 Actual

Public expenditure on research and development as a per cent of Gross State Product

0.8%(a) 1.2%(a) 0.8% 1.1%

South Australia’s per capita share of Australian Government research and development resources

10.0%(b) 15.0%(b) 9.5% 17.9%

continued

13.23

Sub-program: 3.1 Science and Innovation continued

Footnotes (a) The target is to match or exceed average investment as a proportion of Gross State Product compared to other Australian states.

Most recent ABS data 2006-07 shows the average investment for other Australian states is 0.8 per cent of Gross State Product (GSP) with South Australia’s public expenditure at 1.2 per cent of GSP.

(b) South Australia’s Strategic Plan target is to secure Australian Government research and development resources to 10 per cent above South Australia’s per capita share by 2010 and increase this share to 25 per cent by 2014, for both public and private spheres. The estimated 2008-09 result shows the state is 15 per cent above our per capita share which exceeds the 2010 target by 5 percentage points.

Sub-program: 3.2 Information Economy

Provision of high level strategic policy advice to the Minister and government on the information economy and the ICT sector that: • raises awareness and understanding of the information economy among government, business, industry and education providers; • develops strategy and facilitates programs and projects relevant to promoting the information economy; and • facilitates bids for significant Commonwealth grants.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program(a) $6 398 000 $2 732 000 $5 901 000 $3 454 000

Performance Commentary In 2008-09 the department supported the continuing implementation of the Information Economy Agenda for South Australia. Highlights for the year include: • supported the Thinker in Residence Dr Genevieve Bell during her residency in 2009; • arranged for $3 million of the Broadband Development Fund to be spent on addressing Adelaide Metropolitan Broadband Blackspots; • supported the continuation of the Outback Connect program in regional and remote South Australia; • implemented the ICT Innovation Partnership program, a recommendation arising from the ICT Blueprint; • implemented broadband solutions in regional and metropolitan Adelaide in the context of national broadband programs; and • supported the Information Economy Advisory Board to develop an ICT Skills Strategy for the state. In 2009-10 the department will: • action recommendations arising from Dr Genevieve Bell’s residency as Thinker in Residence; • further develop and implement the priority actions identified by the Information Economy Advisory Board as part of its work on ICT

skills; • lead the South Australian Government’s response to the Commonwealth Government’s proposed National Broadband Network; • develop and publish a Digital Bridge Strategy; • support the submission of regional project applications to the Digital Regions initiative of the Commonwealth Government; • implement the Information Economy Agenda 2009–2014; • continue to implement the Outback Connect program; and • leverage funding from Commonwealth funding for digital economy and broadband projects.



2008-09 Target

2007-08 Actual

Broadband as a per cent of internet connections to:(b)

• households Within 5% of national average

—(b) Within 5% of national average

within 10% of the national

average

• business(c) —(c) —(c) Within 5% of national average


average

continued

13.24

Sub-program: 3.2 Information Economy continued



2008-09 Target

2007-08 Actual

Broadband as a per cent of internet connections to:(b)

• farms(c) —(c) —(c) Within 5% of national average


average

Broadband Development Funds (BDF) for the ongoing implementation of South Australia’s Broadband Strategy

$3.8m(d) $0(e) $3.5m $161 000(e)

Footnotes (a) The net cost of this sub program can vary significantly across years due to the effect of carryovers. (b) The South Australia’s Strategic Plan target for broadband usage to 2010 is to exceed the Australian national average and maintain

thereafter. The most recent statistics published by the Australian Bureau of Statistics (ABS) in February 2009 is for the period 2007-08. The estimated result for 2008-09 will be published during 2009-10. The 2007-08 Actual result represents progress towards the 2010 Target.

(c) Data on the per cent of internet connections to business and farms will no longer be collected by the Australian Bureau of Statistics. (d) $3.8 million is the balance remaining in the Broadband Development Fund. (e) Consideration of several applications for Broadband Development Fund projects were suspended in 2006-07, 2007-08 and 2008-09,

pending the outcome of revised federal government funding programs on which the applications were dependent. The 2009-10 Target is to expend the remaining Broadband Development Fund funds.

Sub-program: 3.3 Bioscience Industry Development

Development of the bioscience industry through providing assistance in business development, finance, infrastructure and marketing.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary Construction of the Bio Innovation SA Incubator building was completed mid-2008 and biotech companies moved into the building from July 2008 onwards. However the available space in the building was fully committed approximately three months prior to completion of construction and no additional rental space is available for three years. Remediation of the remainder of the land at Thebarton is progressing with the majority of the work due to be completed mid-2009. Bio Innovation SA (BioSA) continues to provide assistance to companies with business planning, corporate development and small grant funding. In close collaboration with Terra Rossa Capital, BioSA provides local companies with avenues into raising venture capital across Australia.



2008-09 Target

2007-08 Actual

New biotechnology companies created 3(a) 5 5 6

Total no. of bioscience projects assisted (b) 30 41 40 40

Bioscience grants funded $3.2m $3.4m $3.3m $2.6m

Bioscience marketing activities — no. of networking functions held

6 6 6 5

Footnotes (a) BioSA’s target is to enable the creation of 50 new bioscience companies by 2010. Over the eight year period until June 2009, BioSA

has facilitated the doubling in number of bioscience companies in South Australia to more than 90 companies. BioSA is currently ahead of its target to create five new companies per year, and in 2007-08 reached a milestone having provided assistance to form more than 50 companies since incorporation in 2001.

(b) The indicator represents bioscience projects undertaken by research organisations and companies. The focus on larger projects in 2008-09 and for 2009-10 will result in a lower number of overall projects assisted.

13.25

Sub-program: 3.4 Innovation Investment

Provision of seed capital and business guidance to innovative companies commercialising research and development.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary Playford Capital operates a recirculating seed fund where the proceeds of investment exits available for further investment in South Australian innovative companies commercialising research and development. Playford invested $1.4 million of Commonwealth ICT Incubator Program (ICTIP) funds into four South Australian companies in 2008-09. This level of investment was lower than anticipated, but was more than offset by exceeding the 2008-09 Target for co-investments from private investors and Commonwealth grants aimed at building the state’s research and development capability. In total, Playford and its co-investors invested over $10 million into innovative companies during the year.



2008-09 Target

2007-08 Actual

Investment in South Australian innovative companies commercialising research and development(a)

$1.5m $1.4m $1.8m

$1.3m

Co-investment — leveraging funds from private investors and government grants

$5.0m $9.0m(b) $2.3m(b) $9.5m

Footnotes (a) The performance indicator has been renamed from ‘Commonwealth Information and Communications Technology Incubators

Program (formerly Building IT Strengths) funds invested in South Australia’, as that program ceases on 30 June 2009. Playford Capital invested $1.4 million of Commonwealth Information and Communication Technology Incubators Program funds into four South Australian innovative technology companies in 2008-09. Also refer to performance commentary.

(b) Playford Capital exceeded the co-investment target of $2.3 million agreed with the Commonwealth in 2008-09, having assisted its investee companies to secure over $9 million in private sector and government funding.

13.26

DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 212 488 215 877 215 711 215 137 Long service leave .................................................................... 8 094 7 678 8 619 11 046 Payroll tax ................................................................................ 12 281 12 645 12 695 12 887 Superannuation ......................................................................... 25 974 26 575 26 652 23 728 Other ......................................................................................... 1 638 1 574 1 577 1 627Supplies and services — General supplies and services .................................................. 175 728 144 368 136 541 133 872 Consultancy expenses .............................................................. 102 100 100 346Depreciation and amortisation expenses ...................................... 20 399 19 817 18 074 20 020Grants and subsidies ..................................................................... 59 635 66 528 56 294 59 913Intra government transfers ........................................................... 13 002 15 826 13 218 21 783Other expenses ............................................................................. 3 602 3 485 4 417 4 015

Total expenses 532 943 514 473 493 898 504 374

Income

Commonwealth revenues ............................................................. 4 156 61 502 106 460 106 323Intra government transfers ........................................................... 46 405 58 273 1 905 4 627Other grants .................................................................................. 5 338 6 152 3 912 3 988Sales of goods and services .......................................................... 92 358 88 726 88 678 85 764Interest revenues ........................................................................... — — — 28Net gain or loss from disposal of assets ....................................... — — — -673Other income ................................................................................ 2 387 2 395 2 395 4 429

Total income 150 644 217 048 203 350 204 486



Income — Appropriation ........................................................................... 394 683 282 413 291 559 276 636 Other income ............................................................................ — 7 833 — 10 128Expenses — Cash alignment ......................................................................... — 13 250 — 5 370


Net result 12 384 -20 429 1 011 -18 494

13.27


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 71 330 58 248 56 082 73 602Receivables ................................................................................... 22 976 23 049 24 785 16 122Inventories .................................................................................... 1 711 1 711 928 1 711Other current assets ...................................................................... 1 408 1 408 2 057 1 408


Non current assetsFinancial assets ............................................................................. 2 574 2 574 1 852 2 574Land and improvements ............................................................... 443 468 436 794 445 326 448 453Plant and equipment ..................................................................... 35 771 34 932 60 305 29 314


Total assets 579 238 558 716 591 335 573 184

Liabilities

Current liabilitiesPayables ........................................................................................ 39 727 38 746 31 421 37 807Employee benefits — Salaries and wages ................................................................... 3 382 2 876 2 445 2 369 Annual leave ............................................................................. 9 358 9 153 8 814 9 219 Long service leave .................................................................... 7 812 7 144 4 235 6 570 Other ......................................................................................... 4 802 4 726 4 661 4 650Short-term provisions ................................................................... 2 736 2 682 2 546 2 568Other current liabilities ................................................................. 13 219 13 219 11 505 14 371


Non current liabilitiesLong-term borrowings .................................................................. 499 499 499 499Long-term employee benefits — Long service leave .................................................................... 55 587 50 271 54 623 45 558Long-term provisions ................................................................... 7 279 6 947 6 570 6 691



Net assets 434 837 422 453 464 016 442 882

Equity


Total equity 434 837 422 453 464 016 442 882


13.28



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... 252 722 257 234 257 815 258 785Payments for supplies and services .............................................. 186 717 154 011 146 184 150 593Grants and subsidies ..................................................................... 48 748 56 985 46 751 50 738GST paid ...................................................................................... — — — 3 998Intra government transfers ........................................................... 13 002 15 826 13 218 21 783Other payments ............................................................................ 3 106 3 005 3 837 274


Cash inflowsIntra government transfers ........................................................... 46 405 58 273 1 905 4 627Commonwealth receipts ............................................................... 4 156 61 502 106 460 106 323Other grants .................................................................................. 5 338 6 152 3 912 3 988Sales of goods and services .......................................................... 92 422 87 638 88 742 91 457Interest received ........................................................................... — — — 28GST received ................................................................................ — — — 17 440Other receipts ............................................................................... 2 285 2 294 2 294 5 096


SA GOVERNMENT:

Appropriation ............................................................................... 394 683 282 413 291 559 276 636Other receipts ............................................................................... — 7 833 — 10 128Payments — Cash alignment ......................................................................... — 13 250 — 5 370




Cash outflowsPurchase of property, plant and equipment .................................. 27 912 13 781 16 990 9 648Advances paid .............................................................................. — 7 000 — —





13.29



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000




Net cash provided by (+) / used in (-) financing activities — -368 — —

Net increase (+) / decrease (-) in cash equivalents 13 082 -15 355 10 077 14 642



13.30

ADMINISTERED ITEMS FOR THE DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT,SCIENCE AND TECHNOLOGY


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual


Income — Appropriation ........................................................................... 260 254 254 240

Net income from / expenses to SA Government 260 254 254 240


Commonwealth revenues ............................................................. 7 644 7 487 7 487 9 271Other grants .................................................................................. — — — 36


Total income 7 904 7 741 7 741 9 547

Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 256 250 250 268 Superannuation ......................................................................... 4 4 4 — Other ......................................................................................... — — — 7Supplies and services — General supplies and services .................................................. — — — 1Grants and subsidies ..................................................................... 7 644 7 487 7 487 9 271

Total expenses 7 904 7 741 7 741 9 547

Net result — — — —

13.31


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsReceivables ................................................................................... 32 32 — 32

Total current assets 32 32 — 32

Total assets 32 32 — 32

Liabilities

Current liabilitiesOther current liabilities ................................................................. 32 32 — 32

Total current liabilities 32 32 — 32

Total liabilities 32 32 — 32

Net assets — — — —


13.32



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash inflowsCommonwealth receipts ............................................................... 7 644 7 487 7 487 9 271Other grants .................................................................................. — — — 36


Cash outflowsEmployee benefit payments ......................................................... 260 254 254 275Payments for supplies and services .............................................. — — — 1Grants and subsidies ..................................................................... 7 644 7 487 7 487 9 271


SA GOVERNMENT:

Appropriation ............................................................................... 260 254 254 240

Net cash provided by SA Government 260 254 254 240

Net cash provided by (+) / used in (-) operating activities — — — —

Net increase (+) / decrease (-) in cash equivalents — — — —

Cash and cash equivalents at the start of the financial year — — — —

Cash and cash equivalents at the end of the financial year — — — —

13.33


On 1 January 2009 the Intergovernmental Agreement on Federal Financial Relations came into operation. Under the new arrangements the Department of Treasury and Finance (DTF), rather than the Department of Further Education, Employment, Science and Technology (DFEEST) will be the recipient of Commonwealth funding for National Partnership payments and national specific purpose payments. The financial statements recognise that funding from 1 January 2009 is provided to DFEEST in the form of appropriation and other transfers from DTF, rather than revenue directly from the Commonwealth.


The following commentary relates to the agency financial statements presented in the previous section. The discussion relates to the major variations between 2008-09 Estimated Result and the 2009-10 Budget.


Expenditure

The increase in expenditure of $18.5 million in 2009-10 is primarily due to:

• provision of $9 million for indexation on existing salary and non-salary costs in 2009-10;

• supplementation for a provisional enterprise bargaining increase ($3.0 million);

• increased general supplies and services expenditure in 2009-10 associated with the Productivity Places Program ($29.1 million), the Better TAFE Facilities program ($3.7 million); and

• provision of $2.2 million for the Integrated Economic Disadvantage & Disability Program and additional support to universities for research facilities ($2.0 million).

The increased expenditure is partially offset by:

• savings initiatives in 2009-10 ($9.2 million);

• cessation of transitional budget supplementation provided in 2008-09 ($4.0 million); and

• once-off payments in 2008-09 for the National Collaborative Research Infrastructure Strategy ($7.6 million), Commonwealth Skills Centres ($4.8 million) and various other projects ($5.4 million).

Revenue

The $66.4 million decrease in total income in 2009-10 is primarily due to:

• the effect of the new Commonwealth funding arrangements ($101 million);

• one-off funding in 2008-09 from the Commonwealth for Skills Centres ($4.8 million); and

• various other time-limited or one-off projects in 2008-09 ($4.9 million).

13.34

This is partially offset by an increase in funding in 2009-10 for the Productivity Places Program ($25.1 million) and the Better TAFE Facilities program ($14.6 million).


The increase in net assets of $12.4 million relates to an increase in cash and non current assets offset partially by an increase in employee related liability provision.


The changes in cash flows from operating activities are primarily due to the variations that are described under the income statement.

The increase in investing payments of $7.1 million in 2009-10 is due mainly to increased payments associated with the Student Information System ($1.8 million), the Victor Harbor TAFE relocation project ($4.6 million) and the Better TAFE Facilities program ($11.0 million).

These increases are offset in part by once off payments in 2008-09 relating to:

• Le Cordon Bleu ($7.0 million) for redevelopment of existing premises (subject to specific criteria being met);

• Flinders Trade Training Centre ($0.4 million); and

• the capitalisation of library assets ($0.5 million), which will not occur in 2009-10.

Income statement — administered

The increase in total expenses and revenue is due to indexation on existing salary and non-salary costs in 2009-10.

Cash flow statement — administered

The changes in the cash flow statement relate to indexation on existing salary and non-salary costs in 2009-10.

13.35

Auditor-General’s Department

TABLE OF CONTENTS

AGENCY: AUDITOR-GENERAL’S DEPARTMENT

Objective ......................................................................................................................................... 14.1




Workforce summary........................................................................................................................ 14.3


1. Auditing Services........................................................................................................... 14.4



Balance sheet......................................................................................................................... 14.7







Objective

To contribute as an important body to the accountability of the Executive Government and public sector agencies to Parliament by the provision of independent reports on matters concerning public sector finance, use of public resources and the probity and lawfulness of matters associated with public administration.



• Present the Auditor-General’s Annual Report to Parliament as prescribed by the Public Finance and Audit Act 1987

• Identify and undertake certain reviews of specific issues of importance and interest in the public sector, aimed at improving processes and/or maintaining accountability in public sector agencies

• Undertake 16 independent quality assurance reviews of public sector agency audits undertaken by field audit teams

• Continue to implement and support high quality and focused training and development for our people

• Presented the Auditor-General’s Annual Report to Parliament as prescribed by the Public Finance and Audit Act 1987

• Undertook 15 independent quality assurance reviews of public sector agency audits undertaken by field audit teams

• Developing a new corporate plan for the period 2009-10 to 2011-12

• Evaluated the audit methodology and associated software tools developed and in use by the Victorian and Queensland Audit Offices

• Continued to implement and support high quality and focused training and development for our people

14.1



2009-10Budget


2008-09 Budget

2007-08 Actual

Program $000 $000 $000 $000 1. Auditing Services ....................................... 13 531 11 612 11 573 10 847

Total 13 531 11 612 11 573 10 847


2009-10Budget


2008-09 Budget

2007-08 Actual

Investments $000 $000 $000 $000

New works carried forward Replacement of Audit Methodology and Software .....................................................

50 — 180 —

Total new works carried forward 50 — 180 —

Works in progress Annual program.......................................... 332 323 323 554

Total works in progress 332 323 323 554

Total investing payments 382 323 503 554

14.2

Workforce summary

FTEs as at 30 June

Agency 2009-10Budget(a)

2008-09 Estimated result(a)

2007-08 Actual(b)

Auditor-General’s Department 113.0 110.0 106.5

Total 113.0 110.0 106.5



14.3


Program information

Program 1: Auditing Services

Description/Objective: The program relates to the provision of auditing services covering all audit responsibilities prescribed under the Public Finance and Audit Act 1987.


Program 1: Auditing Services 2009-10Budget


2008-09 Budget

2007-08 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 9 261 8 787 8 808 8 482 Supplies and services........................................ 3 881 2 447 2 387 2 351 Other................................................................. 390 379 379 261

Total expenses 13 532 11 613 11 574 11 094

Income Other................................................................. 1 1 1 247



14.4


Sub-program: 1.1 Prescribed Audits

All audit work to be undertaken for agencies where the Auditor-General is the prescribed auditor. The department must annually conduct the audits as prescribed by the Public Finance and Audit Act 1987.

2009-10 Budget


2008-09 Budget

2007-08 Actual


Performance Commentary The role of the Auditor-General is an important one, providing independent assurance to the Parliament that government activities are conducted and accounted for properly and in accordance with the law. Continual changes within the state public sector demand a critical role for this department to review, evaluate and report on changes and developments as they occur. It has been a busy and challenging year where our achievements are represented ultimately by the quality and timeliness of our reports to Parliament.

It has been a year of building by continuing to pursue the highest standards of audit service and reporting. In addition, we have continued to focus our attention on attracting, developing and keeping our highly skilled and committed professional people.

We have moved ahead responding to changes and developments in the public sector such as the government’s shared services arrangements. Internally, we have actively explored options for a possible replacement of the department’s audit methodology and associated software tools, and refined our governance and quality control standards to ensure that the highest standards are maintained.

2008-09 brought to an end our three-year corporate plan, and we have achieved most of what we set out to do. Further, we are in the process of finalising the development of a new three-year corporate plan that positions us to meet the challenges ahead.

Sub-program: 1.2 Special Investigations

All work defined within the Public Finance and Audit Act 1987 that is specifically requested by the Parliament, Treasurer or Minister to be undertaken and reported to the Parliament by the Auditor-General.

2009-10 Budget


2008-09 Budget

2007-08 Actual

Net cost of sub-program — — — —

Performance Commentary There is no funding budgeted for this sub-program for 2009-10 or expenditure incurred in previous years as the Auditor-General has not been requested to undertake investigations pursuant to section 32 of the Public Finance and Audit Act 1987.

14.5

AUDITOR-GENERAL'S DEPARTMENT


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 7 662 7 262 7 280 6 918 Long service leave .................................................................... 175 164 165 285 Payroll tax ................................................................................ 463 446 447 442 Superannuation ......................................................................... 958 912 913 837 Other ......................................................................................... 3 3 3 — Supplies and services — General supplies and services .................................................. 3 669 2 240 2 180 2 318 Consultancy expenses .............................................................. 212 207 207 33Depreciation and amortisation expenses ...................................... 380 370 370 252Other expenses ............................................................................. 10 9 9 9

Total expenses 13 532 11 613 11 574 11 094

Income

Net gain or loss from disposal of assets ....................................... -4 -4 -4 — Other income ................................................................................ 5 5 5 247




Income — Appropriation ........................................................................... 13 445 11 371 11 569 11 338 Other income ............................................................................ — 15 — 20Expenses — Cash alignment ......................................................................... — — — 925


Net result -86 -226 -4 -414

14.6


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 2 628 2 553 2 163 2 590Receivables ................................................................................... 94 94 92 93


Non current assetsLand and improvements ............................................................... 32 145 169 258Plant and equipment ..................................................................... 351 261 199 268Intangible assets ........................................................................... 19 50 204 32

Total non-current assets 402 456 572 558

Total assets 3 124 3 103 2 827 3 241

Liabilities

Current liabilitiesPayables ........................................................................................ 751 718 392 725Short-term borrowings ................................................................. 3 3 3 3Employee benefits — Salaries and wages ................................................................... 215 184 187 155 Annual leave ............................................................................. 527 520 536 515 Long service leave .................................................................... 158 210 238 171Short-term provisions ................................................................... 5 5 22 5


Non current liabilitiesLong-term employee benefits — Long service leave .................................................................... 2 070 1 982 1 882 1 960Long-term provisions ................................................................... 13 13 28 13



Net assets -618 -532 -461 -306

Equity

Retained earnings ......................................................................... -618 -532 -461 -306

Total equity -618 -532 -461 -306


14.7



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash outflowsEmployee benefit payments ......................................................... 9 169 8 696 8 717 8 315Payments for supplies and services .............................................. 3 866 2 447 2 387 2 071GST paid ...................................................................................... — 1 1 281Other payments ............................................................................ 10 9 9 15


Cash inflowsGST received ................................................................................ — — — 278Other receipts ............................................................................... 5 5 5 2

Cash generated from operations 5 5 5 280

SA GOVERNMENT:

Appropriation ............................................................................... 13 445 11 371 11 569 11 338Other receipts ............................................................................... — 15 — 20Payments — Cash alignment ......................................................................... — — — 925


Net cash provided by (+) / used (-) in operating activities 405 238 460 31


Cash outflowsPurchase of property, plant and equipment .................................. 270 263 263 542Purchase of intangibles ................................................................. 112 60 240 12

Cash used in investing activities 382 323 503 554

Cash inflowsProceeds from sale of property, plant and equipment .................. 52 51 51 —

Cash generated from investing activities 52 51 51 —

Net cash provided by (+) / used in (-) investing activities -330 -272 -452 -554




Net cash provided by (+) / used in (-) financing activities — -3 — —

Net increase (+) / decrease (-) in cash equivalents 75 -37 8 -523



14.8

ADMINISTERED ITEMS FOR THE AUDITOR-GENERAL'S DEPARTMENT


2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual


Income — Appropriation ........................................................................... 269 263 257 233

Net income from / expenses to SA Government 269 263 257 233


Other income ................................................................................ 12 341 10 322 9 423 10 277


Total income 12 610 10 585 9 680 10 510

Expenses

Employee benefit expenses — Salaries, wages, annual and sick leave ..................................... 270 264 258 297 Long service leave .................................................................... 11 10 10 123Other expenses ............................................................................. 12 341 10 322 9 423 10 522

Total expenses 12 622 10 596 9 691 10 942

Net result -12 -11 -11 -432

14.9


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000Assets

Current assetsCash and cash equivalents ............................................................ 1 756 1 752 932 1 748Receivables ................................................................................... 352 352 425 352


Total assets 2 108 2 104 1 357 2 100

Liabilities

Current liabilitiesPayables ........................................................................................ 1 927 1 923 1 157 1 919Employee benefits — Salaries and wages ................................................................... 8 7 7 6 Annual leave ............................................................................. 116 116 117 116


Non current liabilitiesLong-term employee benefits — Long service leave .................................................................... 317 306 295 296

Total non-current liabilities 317 306 295 296


Net assets -260 -248 -219 -237

Equity

Retained earnings ......................................................................... -260 -248 -219 -237

Total equity -260 -248 -219 -237


14.10



2009-10Budget

$000

2008-09Estimated

result

$000

2008-09Budget

$000

2007-08Actual

$000


Cash inflowsGST received ................................................................................ 4 4 4 1 027Other receipts ............................................................................... 12 341 10 322 9 423 10 352


Cash outflowsEmployee benefit payments ......................................................... 269 263 257 253GST paid ...................................................................................... — — — 1 053Other payments ............................................................................ 12 341 10 322 9 423 9 482


SA GOVERNMENT:

Appropriation ............................................................................... 269 263 257 233

Net cash provided by SA Government 269 263 257 233

Net cash provided by (+) / used in (-) operating activities 4 4 4 824

Net increase (+) / decrease (-) in cash equivalents 4 4 4 824

Cash and cash equivalents at the start of the financial year 1 752 1 748 928 924

Cash and cash equivalents at the end of the financial year 1 756 1 752 932 1 748

14.11



2008-09 Estimated Result and the 2009-10 Budget


The variation between the 2008-09 Estimated Result and the 2009-10 Budget for net cost of services arises principally from:

• general cost increases for 2009-10 for employee entitlements and supplies and services associated with indexation increases; and

• additional funding of $1.7 million to fund the cost of increased statutory audit activity for new auditee agencies and changed agency administrative arrangements including the WorkCover Corporation of South Australia, the Department of Planning and Local Government, Country Health SA Hospital Incorporated and Shared Services SA.

The increase in expenditure associated with this program will be fully recovered through audit fee charges to auditee agencies.

Income statement — administered

The variation between the 2008-09 Estimated Result and the 2009-10 Budget for other income arises from additional audit fee revenue of $1.7 million principally related to new and/or additional mandated audit activity for the WorkCover Corporation of South Australia, the Department of Planning and Local Government, Country Health SA Hospital Incorporated and Shared Services SA.

14.12

ACCOUNTING STANDARDS

ACCOUNTING STANDARDS

The financial statements included in the 2009-10 Portfolio Statements are special purpose financial statements.

Estimates in these portfolio statements have been prepared on a basis consistent with Australian Accounting Standards, except where these notes indicate otherwise.

Reporting entities

The financial reports include all assets, liabilities, incomes and expenses of individual entities and portfolio agencies (administrative groupings of entities).

In the process of reporting on portfolios, agencies or other entities as single economic entities, transactions and balances between controlled entities are eliminated.

The commentary at the commencement of the financial statements for each portfolio identifies which entities have been included in the consolidated financial statements for that portfolio.

Separation of disclosure

The statements provide disclosure through the separation of activities defined as controlled and administered.

Activities that are ‘controlled’ are those where the agency delivers services and governs the financial and operating policies so as to obtain benefits from these activities and assets in the pursuit of its objectives.

Generally, activities that are ‘administered’ on behalf of the government exist where an agency has no discretion to alter the resources provided or determine how they are spent.

Format

The financial statements include an income statement, balance sheet and a cash flow statement.

Basis of measurement

Most government assets are valued at their written down current cost. Otherwise agencies adopt one of the following measurement bases:

• Market / fair value is the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm’s length transaction (in many cases agencies use written down current cost as a proxy for fair value).

• Net market value in relation to an asset means the market value after deducting costs expected to be incurred were the asset to be exchanged.

• Current cost of an asset means the lowest cost at which the gross service potential of that asset could currently be obtained in the normal course of operations.

All non-current tangible assets, with a cost of acquisition greater than $1 million and a useful life of more than three years, are required to be valued at fair value unless excluded from the scope of

Australian Accounting Standard AASB 116 Property, Plant and Equipment or an alternative valuation is specified by another accounting standard.

Depreciation and amortisation of non-current assets

All non-current assets having limited useful lives are systematically depreciated/amortised over their useful lives in a manner that reflects the consumption of their service potential. The most common method used for calculating depreciation expense is the straight line method.

Certain heritage assets have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. As such, no amount for depreciation has been recognised in respect of those assets.

Assets acquired under finance leases are amortised over the period during which the government is expected to benefit from use of the leased asset.

Employee benefits

Employee benefits (including salaries and wages, annual leave, long-service leave, sick leave and superannuation benefits) reflect those benefits accrued as a result of services provided by employees up to the reporting date.

Short-term employee benefits (due to be settled within twelve months after the end of the reporting period in which the employee rendered the services) are measured at a nominal amount based on the remuneration rates an agency expects to pay. Examples of short-term employee benefits include salaries and wages and annual leave.

Long-term employee benefits (not due to be settled within twelve months after the end of the period in which the employee rendered the service) are measured as the present value of estimated future cash flows. An example of a long-term employee benefit is long service leave.

Sick leave

For the majority of agencies, no liability will be recognised for sick leave.

There is no liability for non-vesting sick leave (a non-vesting entitlement is that which does not constitute a legal obligation of the employing agency until a valid claim is made by an employee or an event has occurred) if, on average, sick leave taken is less than total entitlements accruing.

Vesting sick leave entitlements are rare for Government of South Australia employees.

Superannuation

For most Government of South Australia controlled agencies, the Treasurer assumes the accrued superannuation liability in return for periodic payments from agencies. Therefore, unless there are contributions due but not yet paid at the reporting date, there is no superannuation liability recorded for the agency.

Two types of superannuation plans are in operation currently in the public sector: defined benefit plans and defined contribution plans. In a defined benefit plan, a member’s entitlement is determined by reference to a formula based on years of membership and/or salary levels. In a defined contribution plan, a member’s entitlement is determined by reference to accumulated contributions made to the plan together with investment earnings thereon.

Under existing arrangements, the Treasurer is liable for any net deficiency in assets for the defined benefits plans. Deficits in defined benefit superannuation plans are recognised as liabilities in the

balance sheet for the Treasurer. The deficits are measured as the excess of employees’ accrued benefits resulting from services up to the reporting date over the net market value of the plan’s assets as at the reporting date.

Income recognition

Wherever possible, income is recognised when the transaction or event giving rise to the income occurs. As a result, all items of income are normally reported in the income statement when an agency obtains control over the respective amounts. In circumstances where it is not possible to determine objectively when control over the asset passes to the agency, the amounts are recognised upon receipt.

Appropriation

The investment program requirements for agencies included in the portfolio statements may be funded through operating appropriation, operating receipts, the proceeds of asset sales, grants and through Commonwealth payments. Where the investment requirements of an agency are not funded from these sources, the State Government funding of an agency’s investment program will generally be treated as an equity contribution from the government, as representative owner. These contributions are treated as contributions to equity rather than income in an agency.

Funds appropriated, but not required to meet current year cash outflows will be deposited with the Treasurer and will show as an asset in the agency’s balance sheet.

Cash Alignment Policy

Where agencies have returned excess cash held to the Treasurer in accordance with the Cash Alignment Policy, the payment is generally recorded as a ‘payment to government’ in the income statement. Some agencies have elected to repay debt or return contributed capital with excess cash balances. These transactions will be reflected in the balance sheet.

Rounding

All amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise indicated.

Due to rounding, there may be instances where financial statements and tables do not add correctly.

Presentation

The format of the income statement, balance sheet and cash flow statement used in these portfolio statements is consistent with the requirements of: AASB 101 Presentation of Financial Statements and AASB 107 Cash Flow Statements.

CAPITAL INVESTMENT STATEMENT

Presented by the Honourable Kevin Foley MPDeputy Premier and Treasurer of South Australia

on the Occasion of the Budget for 2009–10

2009 10

BUDGET PAPER 5

2004-05 Budget Paper 4: Portfolio Statements · Portfolio — Health ... host the 8th Asia Pacific...

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Transcript of 2004-05 Budget Paper 4: Portfolio Statements · Portfolio — Health ... host the 8th Asia Pacific...