Perth International Centre for Application of Solar Energy ...

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2002/2003 CASE Annual Report

Perth International Centre for Application ofSolar Energy (CASE)

Annual Report

2002/03

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STATEMENT OF COMPLIANCE

HON ERIC RIPPER MLAMINISTER FOR ENERGY

In accordance with Section 66 of the Financial Administration and Audit Act 1985, wehereby submit for your information and presentation to Parliament, the Annual Reportfor the Perth International Centre for Application of Solar Energy for the financial yearended 30 June 2003.

The Annual Report has been prepared in accordance with the provisions of theFinancial Administration and Audit Act 1985.

PETER BOOTH GEOFF GILBERTCHAIRPERSON A/MANAGING DIRECTOR

31 July 2003 31 July 2003

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Introduction

The International Centre for Application of Solar Energy (CASE) based in Perth,Western Australia was established in 1994 by the United Nations IndustrialDevelopment Organisation (UNIDO) and the Western Australian Government, withsupport from the Australian Commonwealth Government. The principal role of CASEwas to promote the application of sustainable energy technology, with a particularemphasis on developing countries, and to support the growth of the sustainableenergy industry.

The WA Government as part of its restructure of departments and authorities hasdecided not to continue with CASE as an independent Statutory Authority.

The Board of CASE invited industry to express interest in taking over the commercialactivities of CASE activities. This was consistent with the State Government intentionto only absorb non-commercial activities into the Western Australian Government.

This Annual Report highlights the activities of CASE over the past financial year.CASE project activities and consultancies were scaled down during the year, andstrategies were put into place to complete existing activities. Despite entering a winddown phase on CASE operations and not undertaking new business, developmentincome for the financial year exceeded $568,000.

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2002/2003 Annual Report Contents

Statement of Compliance 2

Introduction 3

Key Achievements 5

CASE Projects 6

CASE Professional Services 9

Industry Support 10

Expression of Interest Process 11

Governance and Compliance Information 12

CASE Board 16

Audit General’s Opinion on Financial Statements 19

Certification of Financial Statements 20

Statement of Financial Performance 21

Statement of Financial Position 22

Statement of Cash Flows 23

Notes to the Financial Statements 24

Key Performance Indicators information 34

Contact Details 34

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Key Achievements for The Year

Highlights for the 2002/2003 financial year included the following.

• The supply and installation of a solar hybrid power system for Mulu National Park,Sarawak, Malaysia was completed during the year. This project had sufferedsignificant delays because of problems with the civil works program, however thesystem is now operational and a contract has been let to provide systemmaintenance during the warranty period.

• Installation of a second stand-alone solar PV system to power a National Parksand Wildlife ranger building on Lakei Island, Malaysia was completed.

• Completed the installation and commissioning of a showcase of anAustralian/Western Australian renewable energy technology in Danang Province,Central Vietnam.

• Completed activities under a Memorandum of Understanding (MOU) betweenCASE and the Municipality of Bekasi, West Java, including the installation of apilot screening operation on the Bantargebang landfill facility in Bekasi,Indonesia.

• Provided professional services as a sub consultant to the SMEC ConsultingGroup for an Asian Development Bank (ADB) Technical Assistance programdealing with Rural Electrification and Rural Strengthening in the Philippines.

• Completed the final draft of a feasibility study examining the use of renewableenergy based electric power systems for remote government buildings inSarawak, Malaysia.

• In addition to Board and Panel Membership CASE continued to provide generaland project specific support, and information to industry.

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Case Projects

Over the last two years the projects detailed below have involved a significant exportof Western Australian and Australian equipment, goods and services.

INDONESIA

Landfill Resource Recovery Project – Bekasi (West Java)

Following on from the pre-feasibility study undertaken by CASE in cooperation withthe Municipality of Bekasi a Memorandum of Understanding was signed with theMunicipality of Bekasi for the Development of Bantangebang Landfill. This landfill islocated on the outskirts of Jakarta and is the main Landfill serving Jakarta. The basisof the MOU was to develop commercialisation options for Solid Waste Managementin the municipality under a joint venture between the Municipality and CASE. TheMOU involved the recovery of resources from the landfill on a commercial basis,namely organic material, gas capture and utilisation, and plastic recycling.

Financial modelling was undertaken to ascertain the appropriate management andoperating structure. One zone on the landfill was selected for the first stage ofcommercialisation, and was assigned to CASE. A pilot screening operation wasinstalled under the terms of the MOU, and CASE attempted to attract a suitableinvestor for the commercialisation of this significant opportunity. A number ofpotential investors were contacted and unfortunately a letter of intent from atechnology investment company did not materialise into a commercial investment.

CASE did not proceed with the next phase of development. However, this is still anopportunity industry may develop.

The World Bank continues to display interest in the Landfill Resource Recovery(LRR) concept demonstrated at Bantargebang, and there is an opportunity to benefitfrom the Prototype Carbon Fund for organic fertiliser produced from organicsrecovered from the landfill.

MALAYSIA

Mulu World Heritage Park

In 2001, CASE was appointed to supply a new solar energy diesel power system forthe remote World Heritage listed Mulu National Park in Sarawak by the NationalParks and Wildlife Branch of the Forestry Department. The system provides thePark’s Ranger and tourist facilities with a 24 hour day 240 volt 3 phase power supply.

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The project involved the design, supply and installation of a hybrid diesel- solarenergy system consisting of a 14kW solar PV array, a 240kW deep cycle cell solarbattery bank and a 100kVA inverter charger with automatic dual diesel controllersand ac power distribution system, was commissioned in October.

The customer is expected to supply a second smaller diesel genset in 2003, and thiswill significantly improve the operational performance, and allow substantialadditional fuel savings to be achieved.

To achieve ongoing performance monitoring and system maintenance requirementsin 2003, CASE awarded a contract to the supplier of the Inverter system to undertakethis maintenance, and related functions.

Lakei Island - Pv Power System

A new VIP building was erected alongside existing structures at Lakei Island by theNational Parks and Wildlife Branch, of the Forestry Department of the Government ofSarawak. This building required an un-interruptible power supply. CASE wasappointed to supply and install a 2.4 kW solar PV power system for this new building.

Final commissioning of the Western Australian supplied equipment was completed inJuly 2002.

VIETNAM

Showcase Project – Danang, Central Vietnam

CASE was successful in securing $369,000 funding collectively from the AustralianGovernment’s overseas aid agency (AusAID) under the Asia Pacific EconomicCooperation (APEC) Support Program and the Technology Diffusion Program ofAusIndustry, to develop a project to Showcase Australia’s Renewable EnergyTechnologies in a remote rural community setting in Central Vietnam. This projectreceived considerable support from the Australian Ambassador.

The project undertaken in conjunction from the Australian and Western Australianrenewable energy industry, involved the installation of a solar and wind based hybridpower system supplementing an existing overloaded electricity grid to provide areliable 24 hour/day high quality power supply to approximately 50 dwellings in theCay Da Hamlet in Danang Province, 50 km from Danang city. The existing gridsuffered regular brownouts and blackouts, with the voltage dropping to approximately110 volts. The Danang authorities requested CASE supply a 220 Volt/380 Volt three-phase power to the hamlet. The Danang Government also provided considerableinput into the project, including logistic support, civil infrastructure and labour, andupgrading the existing electricity supply cabling to accommodate the new powersystem.

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The installation and commissioning of the system was completed in October 2002.

Equipment supplied for the project included a 3kw wind turbine, an 8.4kw PV solararray incorporating state of the art module interconnection capability, 168kW deepcycle cell battery bank, and a 30kVA three phase grid connect electronic inverter.The system will provide a 220 volt single phase ac power to the 50 dwellings in thevillage and allow the inhabitants to enjoy a reliable 24 hour day power supply for thefirst time.

The official hand over ceremony from CASE and the Australian Government fundingagencies of the project to the Danang Industry Department occurred in February2003 and was attended by representatives of Chairman of the Peoples Committee ofDanang and the Australian Ambassador, other dignitaries from the Australian andVietnamese Government, and most importantly the residents of Ca Day. Theresidents were extremely appreciative of the efforts of CASE and the AustralianGovernment in improving the quality of their life by providing a reliable power system.

CASE entered into a contract with the supplier of the Inverter/control system toprovide maintenance support and system performance monitoring and data analysisthroughout 2003. The information obtained will be used to help showcase thisAustralian renewable energy technology and hopefully permit all the industryparticipants to increase their market exposure and product sales in Vietnam, andelsewhere in the region.

Vietnam Biogas Project

The installation of 90 Biogas digesters in Phu Dong village 30km from Hanoi wassuccessfully completed in 2002. Monitoring of the installations verified that gasproduction quality and quantity met the design targets, and feedback receivedconfirmed strong support from the recipients in this initial program.

CASE assisted its Vietnamese counterpart agency for this project RESCARD toprepare a draft funding application for future biogas digester installations for theGlobal Environment Facility (GEF) program to replicate the project and its benefits forinhabitants of rural Vietnam on a much larger scale.

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CASE Professional Services

MALAYSIA

Rural Buildings Survey for the State Planning Unit (SPU) – Government ofSarawak

During 2002 CASE, in conjunction with Malaysian engineering consultantsRanhill Bersekutu Sdn Bhd, developed a proposal for a feasibility study forelectrification of remote rural Government buildings in Sarawak.

Funding for stage one of the project of approximately $150,000 Aus was approved byGovernment of Sarawak (GOS). The second stage is dependent on the stage oneoutcomes.

The study initially involved surveying a number of remote sites to collect data, toassist in the preparation of electrical load forecasts and electricity generationdevelopment plans for each site. The load profiles generated were used to model therenewable power systems and determine the most appropriate system for theparticular site. Financial, economic and socio-economic analysis was based on thecollected data, the load forecast and the generation development plan for each site.Many sites are economically viable for a 24hour/day electricity supply.

A comprehensive report was submitted to the client in February 2003, and commentsfrom the stakeholders are being addressed and further work is being done by thelocal socio-economic consultant. The revised project completion date is August 2003.

CHINA

China Renewable Energy Scale-Up Program

CASE was short listed by the State Development Planning Commission of China toprepare a proposal to provide consulting services to examine the Mandated MarketShare (MMS) Policy Component for the China Renewable Energy Scale-Up Program(CRESP). The Government of China received funding from the World Bank/GlobalEnvironment Fund for this activity, and the project is managed by a ProjectManagement Office established by the Chinese Government.

The CASE bid was ultimately successful, when the preferred tenderer wasdisqualified.

Given CASE’s impending wind up in 2003, CASE negotiated an agreement withMurdoch University whereby the University would become the principal and sign thecontract. In this arrangement CASE was initially a subcontractor, and completed taskone of the contract in February.

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Industry Support

Midland TAFE

CASE assisted Midland TAFE to prepare a funding proposal under an educationalgrant program to acquire a solar/wind/diesel hybrid power system to be used fortraining purposes at the Midland campus. This system will be used to provide handson experience in hybrid energy and grid connect systems for students from Midlandand Central TAFE. The system will be incorporated in new courses developed inrenewable energy technologies. This should result in better trained students enteringthe workforce, and should benefit the industry.

Curtin University

CASE was the industry partner for a Curtin University sponsored project funded byan Australian Research Council (ARC) grant. This market research study examinedthe opportunities for renewable energy systems in the hospitality industry in India.

General Industry Support

In addition to providing information and collaborating on specific activities CASEassisted industry through representation on Boards and Panels, and contributing toindustry networks including:

- Renewable Energy Export Network- The Australian Indonesian Business Council (WA Branch)- The Sustainable Energy Industry Association (SEIA Australia)- An advisory committee for the Household Greenhouse Action Consortium of

the Australian Greenhouse Office (AGO)- Australian Representative on the International Agency (IEA), Photovoltaic

Power Systems Task IX, “PV Deployment in Developing Countries”.

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Expression Of Interest (EOI) Process

Expressions of interest were called from Industry in June 2002 for an investmentopportunity relating to the divestment of CASE’s commercial activities.

Out of the expressions of interest received, six organisations were selected to submitdetailed proposals. In November 2002, Ministerial approval was given to proceed,and six short-listed organisations were invited to submit their proposals, by the 10th

January 2003.

Two detailed submissions were received and evaluated but the Minister requestedthe Board not to proceed with the expression of interest. Information held by CASE isavailable to any interested party.

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Governance and Compliance Information

Legislation

The International Centre for Application of Solar Energy was established on 22 July1994 under section 4(1) of the Perth International Centre for Application of SolarEnergy Act 1994.

Responsible Minister

The Hon Eric Ripper MLA, Minister for Energy.

Code of Conduct

A Code of Conduct was in operation for members of the CASE Board and for CASEstaff, consultants and contractors. Each was required to sign an agreement tocomply with the provision of the Code.

Declaration of Interests

All CASE Board members, employees and consultants/contractors working in thecentre were required to sign a Declaration of Interests form.

Records Management

A records management policy, practice and procedures manual was developed toassist operations of the Centre. Business decisions and transactions weredocumented and recorded in an efficient and effective manner and adhere tooperational, information and legislative requirements. Procedures were implementedthat manage both electronic and paper records.

As the organisation was in a wind down phase a retention and disposal schedule wasprepared and approved subject to minor amendment by the State Records AdvisoryCommittee of the Government of Western Australia.

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Workers Compensation

No workers compensation claims were lodged and no lost time injuries were reportedfor the period 1 July 2002 to 30 June 2003.

Promotions, Publications and Research

CASE meets its legal deposit requirements for its Annual Report through the Stateand National Libraries.

CASE is not a research organisation. From time to time studies and professionalservices were undertaken on a commercial basis. Selected papers, annual reports,project summaries various conference proceedings and presentations were madeavailable.

Advertising and Sponsorship

CASE spent $2,489.55 on advertising during the 2002/2003 financial year. Thisexpenditure related to advertising directly commissioned by CASE and associatedwith the Centre operations and was not related to activities undertaken by advertisingagencies, market research organisations, polling organisations, direct mailorganisations and media advertising organisations.

Disability Services Plan

Wherever possible the Centre ensured that people with disabilities could obtainaccess to CASE information and services.

Information Statement

The Centre is an exempt agency within the meaning of the Freedom of InformationAct 1992.No requests under the Freedom of Information Act were received during the reportingperiod.

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Customer Focus Outcomes

CASE did not develop a formal customer service charter due to the transitionalnature of the Centre’s operation.

Equal Employment Opportunity

The Centre since its inception has followed the principles of equal opportunity in theworkplace. In line with this an Equal Employment Opportunity Diversity ManagementPlan for the period 1999-2004 was adopted. This plan identified key strategies to beadopted.

Plan for Women

On average over half of the full time equivalent staff that worked at CASE werefemale and held a variety of positions ranging from administration to ProjectManagement. The transitional nature of CASE activities meant there was no benefitin developing long-term strategies for female staff.

Language and Cultural Diversity

With our focus on developing countries, CASE relied on the multi-lingual abilities ofits staff. Whilst there has been dependence upon ongoing verbal translations in thefield with our clients, the need for written translation services has been confined tointernal reports, correspondence and presentations and is normally satisfiedinternally, or by our in-country representatives.

Waste Paper Recycling

The Centre has a policy of recycling waste paper. All suitable paper is collected byan outside organisation and used to produce recycled paper products.

I.T. Security

The security of the CASE computer network and Internet connection was maintainedduring the year. Purchase of new computing hardware, software and related systemswas minimised due to the transitional nature of operations.

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Public Sector Standards

There were no breaches of the Public Sector Standards in Human ResourceManagement during the reporting period. As there were no CASE staff at 30 June2003, no detailed Public Sector Standards compliance report is included in thisannual report.

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Case Board

BOARD MEETING ATTENDANCE 2001/2002

DIRECTOR’S NAME ATTENDANCEDr. Peter Hopwood (Chair)1,2

0/5

Mr. Peter Booth (A/ Chair) 1 5/5Mr. Gordon Thompson 5/5Mr. Les Poole 4/5Mr John Loney 3 0/5Dr. Les Farrant 3 1/1Ms Anne Nolan 3 3/3Dr Ken Michael 2 3/5Professor Valerie Alder 4 1/5Dr Paul D’sylva 4 4/5

Notes:

1. Dr Peter Hopwood requested to temporarily stand down from Board duties due to a potentialconflict of interest. Mr. Peter Booth was appointed as acting chair at the August Board Meeting.

2. Dr. Ken Michael was an alternate Director for Dr. Peter Hopwood.3. Dr Les Farrant was an alternate Director for John Loney until the August 2002 Board Meeting.

Anne Nolan was appointed as an alternate Director for John Loney on 5 November 2002.4. Dr. Paul D’Sylva was an alternate Director for Professor Valerie Alder.

BOARD BIOGRAPHIES

Dr. Peter Hopwood (Chair)Dr. Peter Hopwood is a consulting engineer with a commercial background in theenergy and resources sectors, with knowledge of the operations of internationaldevelopment organisations and multilateral development agencies. He is a principalof HBH Consultants, a Fellow of the Institution of Engineers Australia, and a Fellowof the Australian Institute of Company Directors. Dr Hopwood is also a member of theBoard of the Water Corporation of Western Australia.

Gordon Thompson (Managing Director until 30 May, 2003)Mr Gordon Thompson was the founding Managing Director of CASE. Mr Thompsonheld a number of senior management roles with Melbourne Water Corporationincluding managing the International Business arm, which developed businessopportunities in Asia Pacific. He is a Fellow of the Institution of Engineers, Australiaand was a member of the Western Australian Government Alternative EnergyDevelopment Board (AEDB). He was the immediate past President of theSustainable Energy Industry Association - SEIA (Australia) and the former Chairmanof the Australian Indonesian Business Council (WA Branch). He is also theAustralian representative on the International Energy Agency in Photovoltaic PowerSystems (PVPS) Task IX which considers the deployment of PV systems indeveloping countries.

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Mr. Peter BoothMr. Peter Booth is an International Marketing Consultant and former ExecutiveDirector of the Western Australia Overseas Projects Authority. He has also hadseveral years experience with the United Nations Food and Agriculture Organisationwhere he was involved in identification, aid funding and implementation of projects indeveloping countries.

Mr. Les PooleMr. Les Poole is the Commercial Director - Components of the BP Solar Group,responsible for the Asia, Australia and the Pacific Islands region. Prior to the creationof the new BP Solar entity, he was the Regional Sales and Marketing Director forSolarex Pty Ltd.

Prior to joining Solarex, Mr Poole had more than twenty years experience in theelectrical industry primarily involved in power generation, mining operations, heavyindustry & major commercial ventures involving project management, design, supplyand installation.

Mr. John LoneyMr. John Loney is a Project Director for CALM. Prior to this he was the ExecutiveDirector, Industry Development Division of the Western Australian GovernmentDepartment of Commerce and Trade where he was responsible for investmentattraction, trade promotion and enterprise development assistance. Mr Loney hasworked in a number of government departments, both State and Federal includingthe Australian Trade Commission where he had postings in London, Cairo and Milanfollowing a training period in Canberra. He has also been the Western AustralianGovernment trade representative in Sydney and Canberra.

Mr Loney has degrees in science and economics and a postgraduate administrationqualification.

Dr. Les FarrantDr Les Farrant was a senior public servant with the Government of WesternAustralia. He is the former Chief Executive Officer of the Office of Energy and in thatrole held the statutory position of Coordinator of Energy. His responsibilities in thatposition include providing policy advice directly to the Minister for Energy on energymatters generally. Dr Farrant oversaw the creation of the Sustainable Energy Development Office withinthe Office of Energy.

Professor Valerie AlderProfessor Valerie Alder holds the position of Executive Research Strategist atMurdoch University. Previous to this she was the Pro Vice Chancellor Research atMurdoch University, and was a member of the Boards of Technology and InnovationManagement (TIM), the AJ Parker Centre, the Asia Research Centre, the Centre forRhizobium, the Planning and Transport Research Centre, the Housing and UrbanResearch Institute WA and ACRE. She chaired Murdoch University's R&D Board andwas a member of Murdoch University Academic Council.

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Dr. Paul D’Sylva (alternate to Professor Valerie Alder)Dr. Paul D'Sylva is the Director of the Division of Research and Development atMurdoch University, Western Australia. In this capacity, he is responsible for thecontinuing development of the University's world-class research and researchtraining and its application for economic and social benefit. He represents theUniversity on the Boards of a number of collaborative research centres and spin-outcompanies including the Centre for High Throughput Agricultural Genetic Analysis;the Environmental Biotechnology CRC (Alternate) and Paragen Pty. Ltd.Independently of Murdoch, he sits on the Scientific Advisory Board of a publicly listedAustralian Biotechnology Company, EQiTX Ltd.

Dr. Ken Michael AM CitWADr Ken Michael is currently the Western Australian Independent Gas PipelinesAccess Regulator and Chief Executive Officer of OffGAR.

Dr Michael has a Bachelor of Engineering degree with first class honours from theUniversity of Western Australia and has a Doctor of Philosophy from the University ofLondon. Dr Michael is Chancellor of the University of Western Australia, Chairman ofthe Board of Trustees of the Western Australian Museum and Chairman of the EastPerth Redevelopment Authority. He is a former CEO of Main Roads WesternAustralia and concurrently served as Public Service Commissioner in 1993/94. He isalso a former Chairman of Commissioners of the City of Albany. Dr Michael wasappointed to the position of Regulator for a period of 3 years on 1 June 1999 afterhaving acted in the position since February 1999. He was reappointed on 15 April2003 for a further 5 years.

Ms. Anne Nolan

After thirteen years with the Department of Treasury and Finance, in September2002, Anne Nolan became Acting Coordinator of Energy and CEO of the Office ofEnergy. Prior to this Anne was Executive Director (Economic) of the WesternAustralian Department of Treasury and Finance for seven years. Anne's workincluded responsibility for providing advice to government and managing Treasuryand Finance's role in economic policy, intergovernmental relations, governmententerprises, structural and competition policy, and revenue policy.

Anne has a Masters degree in Economics from the University of Western Australia.

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Auditor General’s Opinion – Annual Financial Statements

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PERTH INTERNATIONAL CENTRE FOR APPLICATION OF SOLAR ENERGY

CERTIFICATION OF FINANCIAL STATEMENTS FOR THE YEAR ENDED30 JUNE 2003

The accompanying financial statements of the Perth International Centre for Application ofSolar Energy have been prepared in compliance with the provisions of the FinancialAdministration and Audit Act 1985 from proper accounts and records to fairly present thefinancial transactions for the financial year ending 30 June 2003 and the financial position asat 30 June 2003.

At the date of signing we are not aware of any circumstances which would render anyparticulars included in the financial statements misleading or inaccurate.

PETER BOOTH GEOFF GILBERTCHAIRPERSON PRINCIPAL ACCOUNTING

OFFICER

31 July 2003 31 July 2003

GEOFF GILBERTA/MANAGING DIRECTOR

31 July 2003

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PERTH INTERNATIONAL CENTRE FORAPPLICATION OF SOLAR ENERGY

STATEMENT OF FINANCIAL PERFORMANCEFor the Year Ended 30 June 2003

Note 2003 2002$ $

COST OF SERVICESExpenses from Ordinary ActivitiesEmployee expense 2 771,143 703,904Supplies & services 3 385,612 427,457Depreciation expense 4 18,880 55,000Administration expense 5 324,814 215,854Accommodation expense 6 62,670 67,874Grants & subsidies expense 7 10,000 -Capital User Charges 8 18,000 40,000Other expenses from ordinary activities 9 65,215 42,092Total Cost of Services 1,656,334 1,552,181

Revenues From Ordinary ActivitiesRevenues From Operating ActivitiesUser Fees & Charges 10 445,467 463,051Commonwealth Grants & Other Contributions 11 37,981 43,840Revenue from Non Operating ActivitiesInterest Revenue 12,158 25,890Other revenue from ordinary activities 12 85,796 56,422Total Revenues from Ordinary Activities 581,402 589,203

NET COST OF SERVICES (1,074,932) (962,978)

REVENUES FROM STATE GOVERNMENT 13Output Appropriation 1,292,000 840,000Resources received free of charge - 737Total Revenues from State Government 1,292,000 840,737

CHANGE IN NET ASSETS 217,068 (122,241)

Total changes in equity other thanthose resulting from transactionswith WA State Government asowners 217,068 (122,241)

The Statement of Financial Performance should be read in conjunction with the accompanying notes.

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STATEMENT OF FINANCIAL POSITIONAs at 30 June 2003

Note 2003 2002$ $

Current AssetsCash assets 14 120,412 322,824Receivables 15 140,600 90,366Other Assets 16 1,500 3,675Total Current Assets 262,512 416,865

Non Current AssetsAmounts Receivable for Outputs 17 94,000 99,000Plant & Equipment 18 7,570 34,862Total Non Current Assets 101,570 133,862

Total Assets 364,082 550,727

Current LiabilitiesPayables 19 73,403 201,308Other Liabilities 20 30,100 232,092Provisions 21 - 97,816Total Current Liabilities 103,503 531,216

Total Liabilities 103,503 531,216

NET ASSETS 260,579 19,511

Equity 22Contributed Equity 48,000 24,000Accumulated surplus/(deficiency) 212,579 (4,489)

TOTAL EQUITY 260,579 19,511

The Statement of Financial Position should be read in conjunction with the accompanying notes.

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STATEMENT OF CASH FLOWSFor the Year Ended 30 June 2003

Note 2003 2002$ $

CASHFLOWS FROM STATE GOVERNMENTOutput appropriations 1,297,000 741,000Capital contributions 24,000 24,000Net cash provided by State Government 1,321,000 765,000

Utilised as follows:

CASHFLOWS FROM OPERATING ACTIVITIESPaymentsEmployee costs (903,468) (495,567)Supplies and services (827,414) (856,384)Grants and subsidies expense (10,000) -Capital user charge - (40,000)GST payments on purchases (29,711) (21,325)GST payments to taxation authority - (47,070)ReceiptsUser charges and fees 121,197 614,318Commonwealth grants and contributions 37,981 76,349Interest received 12,158 25,947GST receipts on sales 2,351 16,632GST receipts from taxation authority 17,379 -Other receipts 47,931 1,159Net Cash provided by / (used in) operating activities 23b (1,531,596) (725,941)

CASHFLOWS FROM INVESTING ACTIVITIESProceeds from sale of non-current physical assets 12,653 -Purchase of non-current physical assets - (25,419)Net Cash provided by / (used in) investing activities 12,653 (25,419)

Net increase/(decrease) in cash held (197,943) 13,640Cash assets at the beginning of the financial year 322,824 315,968Effects of exchange rate changes on the balance of cash held in foreigncurrency. (4,469) (6,784)

CASH ASSET AT THE END OF THE FINANCIAL YEAR 23 120,412 322,824

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

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NOTES TO THE FINANCIAL STATEMENTSFor the Year Ended 30 June 2003

1. Significant Accounting Policies

The following accounting policies have been adopted in the preparation of the financial statements. Unless otherwisestated these policies are consistent with those adopted in the previous year.

General Statement

The financial statements constitute a general purpose financial report which has been prepared in accordance withAustralian Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of theAustralian Accounting Standards Board, and Urgent Issues Group (UIG) Consensus Views as applied by theTreasurer's Instructions. Several of these are modified by the Treasurer's Instructions to vary application, disclosure,format and wording. The Financial Administration and Audit Act and the Treasurer's Instructions are legislativeprovisions governing the preparation of financial statements and take precedence over Australian AccountingStandards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian AccountingStandards Board, and UIG Consensus Views. The modifications are intended to fulfil the requirements of generalapplication to the public sector, together with the need for greater disclosure and also to satisfy accountabilityrequirements.

If any such modification has a material or significant financial effect upon the reported results, details of thatmodification and where practicable, the resulting financial effect, are disclosed in individual notes to these financialstatements.

Basis of Accounting

The financial statements have been prepared on the accrual basis of accounting using the historical cost convention,except for certain assets and liabilities which, as noted, are measured at fair value.

(a) Output Appropriations

Output Appropriations are recognised as revenue in the period which the Centre gains control of the appropriatedfunds. The Centre gains control of appropriated funds at the time those funds are deposited into the Centre's bankaccount or credited to the holding account held by the Department of Treasury and Finance.

(b) Contributed Equity

Under UIG 39 "Contributions by Owners Made to Wholly-Owned Public Sector Entities" transfers in the nature of equitycontributions must be designated by the Government (owners) as contributions by owners (at the time of, or prior to thetransfer) before such transfers can be recognised as equity contributions in the financial statements. Capitalcontributions (appropriations) have been designated as contributions by owners and have been credited directly toContributed Equity in the Statement of Financial Position.

(c) Grants and Other Contributions Revenue

Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Centre obtainscontrol over the assets comprising the contributions. Control is normally obtained upon their receipt.

Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can bereliably determined and the services would be purchased if not donated.

(d) Revenue Recognition

Revenue from the sale of goods and disposal of other assets and the rendering of services, is recognised when theCentre has passed control of the goods or other assets or delivery of the service to the customer.

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(e) Acquisitions of assetsThe cost method of accounting is used for all acquisitions of assets. Cost is measured at the fair value of the assetsgiven up or liabilities undertaken at the date of acquisition plus incidental costs directly attributable to the acquisition.

Assets acquired at no cost or for nominal consideration, are initially recognised by their fair value at the date ofacquisition.

(f) Depreciation of non-current assets

All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in amanner which reflects the consumption of their future economic benefits.

Depreciation is calculated on a straight line basis, using rates which are reviewed annually. Useful lives for each classof depreciable asset are:

Computer systems 3 yearsFurniture and fittings 3 yearsOffice equipment 2 yearsProject equipment - operations 5 yearsProject equipment - pilot / test 2 years

(g) Revaluation of Project Equipment

The Centre has a policy of valuing assets such as project equipment at a market value. The revaluation of the Centre'sproject equipment was undertaken by the Board.

(h) Leases

The Centre has entered into a number of operating lease arrangements for the rent of the office building where thelessor effectively retains all of the risks and benefits incident to ownership of the items held under the operating leases.Equal instalments of the lease payments are charged to the Statement of Financial Performance over the lease termas this is representative of the pattern of benefits to be derived from the leased property.

(i) Receivables

Receivables are recognised at the amounts receivable as they are due for settlement no more than 30 days from thedate of recognition or as specified by individual contracts entered into.

Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are writtenoff. A provision for doubtful debts is raised where some doubts as to collection exists.

(j) Payables

Payables, including accruals not yet billed, are recognised when the Centre becomes obliged to make future paymentsas a result of a purchase of assets of services. Payables are generally settled within 30 days.

(k) Employee benefits

Annual Leave

This benefit is recognised at nominal remuneration rates and is measured at the amount unpaid at the reporting date inrespect to employees' service up to that date.

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Long Service Leave

These benefits are calculated at nominal remuneration rates. A liability for long service leave is recognised after anemployee has completed four years of service.

This method of measurement of the liability is consistent with the requirements of Australian Accounting StandardAASB 1028 “Employee Benefits”.

SuperannuationStaff may contribute to the Gold State Superannuation Scheme, a defined benefit lump sum scheme now closed tonew members. All staff who do not contribute to The scheme become non-contributing members of the West StateSuperannuation Scheme, an accumulation fund complying with the Commonwealth Government's SuperannuationGuarantee (Administration) Act 1992.

The liabilities for superannuation charges under the Gold State Superannuation Scheme and West StateSuperannuation Scheme are extinguished by fortnightly payment of employer contributions to the GovernmentEmployees Superannuation Board.

The note disclosure required by paragraph 6.10 of AASB 1028 (being the employer's share of the difference betweenemployees' accrued superannuation benefits and the attributable net market value of plan assets) has not beenprovided. State scheme deficiencies are recognised by the State in its whole of government reporting. TheGovernment Employees Superannuation Board's records are not structured to provide the information for the Centre.Accordingly, deriving the information for the Centre is impractical under current arrangements, and thus any benefitsthereof would be exceeded by the cost of obtaining the information.

(l) Accrued Salaries

Accrued salaries represent the amount due to staff but unpaid at the end of the financial year, as the end of the lastpay period for that financial year does not coincide with the end of the financial year. The Centre considers the carryingamount approximates net fair value.

(m) Resource Received Free of Charge or For Nominal Value

Resources received free of charge or for nominal value which can be reliably measured are recognised as revenuesand as assets or expenses as appropriate at fair value.

(n) Foreign Currency Translation and Hedges

Transactions denominated in a foreign currency are translated at the rates in existence at the dates of the transactions.Foreign currency receivables and payables at reporting date are translated at exchange rates current at reporting date.Exchange gains and losses are brought to account in determining the result for the year.

(o) Comparative Figures

Comparative figures are, where appropriate, reclassified so as to be comparable with the figures presented in thecurrent financial year.

(p) Rounding of amounts

Amounts in the financial statements have been rounded to the nearest dollar.

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2003 2002$ $

2.Employee ExpensesWages and salaries 331,850 606,021Superannuation 195,121 52,967Redundancy payments 218,868 -Other employee expenses 25,304 44,916

771,143 703,9043.Supplies and Services

Project equipment 166,494 217,406Consultants and contractors 129,176 79,872Project related travel costs 68,250 115,202Other costs 21,692 14,977

385,612 427,4574.Depreciation Expense

Computer systems 12,380 12,969Furniture & fittings - 7,250Office equipment 2,815 466Project equipment 3,685 34,315

18,880 55,0005.Administration Expenses

Communications 22,784 35,792Insurance 22,380 16,358Business development 65,215 17,838Promotional expenses 2,577 773Memberships 6,933 9,600Office expenses 34,380 24,202Resources received free of charge - 737Governance 71,690 83,664Consultancies 32,250 -Human Resources expenditure 29,335 2,550Airfares and accommodation 28,382 11,173Taxis and surface travel 3,162 3,728Other administration expenses 5,726 9,439

324,814 215,8546.Accommodation Expenses

Lease rentals 62,670 67,874

7.Grants and SubsidiesProject grants 10,000 -

8.Capital User Charge 18,000 40,000

A capital user charge of 8 % has been set by the Government for 2002/03 and represents the opportunity of capitalinvested in the net assets of the Centre used in the provision of outputs. The charge is calculated on the net assetsadjusted to take account of exempt assets. Payments are made to the Department of Treasury and Finance on aquarterly basis.

9.Other Expenses from OrdinaryActivitiesDoubtful debts expense 49,601 -Write back of revenue - 35,308

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Carrying amount of non-current assetsdisposed of 8,033 -Write off of assets 2,450Realised foreign exchange loss 780 -Unrealised foreign exchange loss 4,351 6,784

65,215 42,09210.User Fees & Charges

Commercial project and consultingincome 445,467 695,143Less: Project and consulting income inadvance - (232,092)

445,467 463,051

11.Commonwealth Grants andContributionsGrant project and consulting income 37,981 43,840

12.Other Revenues from OrdinaryActivitiesRealised foreign exchange gain - 450Centrelink training subsidy - 1,375Australian Indonesian BusinessCouncil reimbursements - 256Proceeds from sale of assets 12,653 -Other reimbursements 51,907 49,967FBT reimbursements 21,236 4,374

85,796 56,422

13.Revenues from State Government

Appropriation revenue received duringthe year:Output appropriations 1,292,000 840,000Resources received free of charge - 737

1,292,000 840,737

Output appropriations are accrual amounts reflecting the full cost of outputs delivered.

14.Cash assetsCASE - Cheque Account 83,640 257,495CASE - US$ Account 39 64,103CASE - HSBC Malaysia MYR Account 36,406 -Petty cash 1 23Petty cash - foreign currency 326 1,203

120,412 322,82415.Receivables

Trade debtors 196,061 103,883Less: Provision for doubtful debts (64,730) (15,129)GST Receivable 8,243 -Work related advances to employees 1,026 1,612

140,600 90,366

16.Other AssetsPrepaid computer support - 3,675Other 1,500 -

1,500 3,67517.Amounts Receivable for Outputs

Non-current 94,000 99,000

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This asset represents the non-cash component of output appropriations. It is restricted in that it can only be used forasset replacement or payment of leave liability.

18.Property, plant and equipmentComputer systemsAt cost 13,833 115,526Accumulated depreciation (6,263) (89,614)

7,570 25,912Furniture & fittingsAt cost - 19,696Accumulated depreciation - (19,696)

- -Office equipmentAt cost - 15,092Accumulated depreciation - (9,827)

- 5,265Project EquipmentAt cost - -At valuation June 2001 - 38,000Accumulated depreciation - (34,315)

- 3,685

7,570 34,862

Reconciliations of the carrying amount of property, plant and equipment at the beginning and end of the current financialyear are set out below.

ComputerSystems

Furniture &Fittings Office Equip

ProjectEquipment Total

Carrying amount at start of year 25,912 - 5,265 3,685 34,862

Additions - - - - -

Disposals 5,962 - - - 5,962

Write off of assets - - 2,450 - 2,450

Depreciation 12,380 - 2,815 3,685 18,880

Carrying amount at end of year 7,570 - - - 7,570

19.PayablesTrade payables 65,198 155,396Accrued salaries 7,403 41,912GST & FBT payable 802 4,000

73,403 201,30820.Other Liabilities

(Income received in advance)Current for overseas projects:Mulu Nation Parks Project - 40,060Vietnam Showcase & Biogas Project - 192,032Accrued expenses 12,100Accrued Capital User Charge 18,000

30,100 232,09221.Provisions

CurrentAnnual leave - 21,142

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Long service leave - 76,674 - 97,816

22.EquityContributed EquityOpening Balance 24,000 -Capital Contribution (1) 24,000 24,000Closing balance 48,000 24,000

(1) Capital contributions have been designated as contributions by owners and are credited directly to equity in theStatement of Financial Position.

Accumulated surplus/(deficiency)Opening balance (4,489) 117,752Change in net assets 217,068 (122,241)Closing balance 212,579 (4,489)

23.Notes to the Statement of CashFlows

(a)Reconciliation of cashCash assets 120,412 322,824

(b)Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities

Net cost of services (1,074,932) (962,978)

Non-cash items:Depreciation expense 18,880 55,000Doubtful debt expense 49,601 -Foreign exchange (gain)/loss 4,351 6,335Resources received free of charge - 737Carrying amount of non-current assetsdisposed of 8,033 -Write off of assets 2,450

(Increase)/decrease in assets:CurrentReceivables (91,592) 270,223Other Assets 2,175 6,632

Increase/(decrease) in liabilities:CurrentPayables (91,490) 32,140Employee benefits (132,325) 43,693Other liabilities (201,992) (177,723)

Net GST receipts/(payments) (13,314)Change in GST inreceivables/payables (11,441)

Net cash provided by/(used in)operating activities (1,531,396) (725,941)

24.Commitments for ExpenditureProject commitments include amounts for overseas projects

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Within 1 year - 232,092

25.Explanatory Statement

(i) Significant variations between estimates and actual results for the financial year

Details and reasons for significant variations between estimates and actual results are detailed below. Significantvariations are considered those greater than 10% or $50,000.

2003 2002Actual Estimates Variance

$ $ $

Total Cost of Services 1,656,334 1,217,000 439,334

Cost of ServicesThis variance is due to the redundancy payouts being higher than expected.

(ii) Significant variations between actual revenues and expenditures for the financial year and revenue andexpenditures for the immediately preceding financial year

Details and reasons for significant variations between actual results with the corresponding item of the preceding yearare detailed below. Significant variations are considered those greater than 10% or $50,000.

2003 2002 Variance$ $ $

Employee expense 771,143 703,904 67,239Supplies & services 385,612 427,457 (41,845)Administration expense 324,814 215,854 108,960Capital User Charges 18,000 40,000 (22,000)Other expenses from ordinary activities 65,215 42,092 23,123Interest Revenue 12,158 25,890 (13,732)Other revenue from ordinary activities 85,796 56,422 29,374

Employee ExpenseVariance due to payment of redundancies.

Supplies & servicesVariance due to wind down of activities, resulting in projects ceasing during the financial year.

Administration expenseVariance due to business development costs that could not be capitalised due to wind down of the Centre, and humanresources consultancy payments due to redundancies.

Capital User ChargesThe variance is due to wind down of Centre activities, therefore reduction in net assets.

Other expenses from ordinary activitiesThe variance is due to increase in bad debt expense.

Interest RevenueThe variance is due to a lower bank balance due to wind down of activities.

Other revenue from ordinary activitiesThe variance is due to sale of assets as part of the Centre's wind down activities.

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26.Financial Instruments(a)Interest Rate Risk Exposure

The following table details the Authority's exposure to interest rate risk as at the reporting date:

WeightedAverage Variable Non -Effective Interest Interest

Interest Rate Rate Bearing Total2003 % $ $ $

Financial AssetsCash assets 4.25% 83,679 36,733 120,412Receivables - 234,600 234,600

83,679 271,333 355,012Financial LiabilitiesPayables - 66,000 66,000Accrued salaries - 7,403 7,403

- 73,403 73,403

2002 Financial Assets 3.99% 321,597 105,593 427,190Financial Liabilities - 531,216 531,216

(b)Credit Risk Exposure

All financial assets are unsecured.

The carrying amounts represent the Centre's maximum exposure to credit risk in relation to those assets.

(c)Net Fair Values

The carrying amount of financial assets and financial liabilities recorded in the financial statements are not materiallydifferent from their net fair values, determined in accordance with the accounting policies disclosed in Note 1 to thefinancial statements.

27.Remuneration and Retirement Benefits of Members of the Accountable Authority and Senior Officers

Remuneration of Members of the Accountable AuthorityThe number of members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefitsreceived, or due and receivable, for the financial year, fall within the following bands are:

$ 0 - 10,000 1 210,001 - 20,000 1 1

The total remuneration of the members of the Accountable Authorityis: 28,281 30,700

No member of the Accountable Authority is a member of the Superannuation and Family Benefits Act Scheme.

Remuneration of Senior Officers

The number of Senior Officers other than the members of the Accountable Authority, whose total of fees, salaries,

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superannuation and other benefits received, or due and receivable, for the financial year fall within the following bandsare:

$160,001 - 170,000 1320,001 - 330,000 1

The total remuneration of senior officers is: 323,803 167,092

No Senior Officers are members of the Superannuation and Family Benefits Act Scheme.

28.Remuneration of Auditor

The total fees paid or due to the auditors of the Centre for the financial year are as follows:

Office of the Auditor General - external auditors 12,100 9,000

29.Supplementary financial information

Theft of a laptop computer occurred during the year. The purchase cost of this asset was recovered through the Centre's insurance policy.

30.Events occurring after reportingdate

The Government has introduced legislation into the Western Australian Parliament to repeal the Perth International Centre for Application of Solar Energy Act 1994. This legislation had not been enacted at 30 June 2003. CASE is not currently actively seeking new opportunities.

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Key Performance Indicators

As CASE was being wound down during the year it was not considered appropriateto report key performance indicators for the reporting period.

Contact Details

Level 9 Governor Stirling Tower197 St Georges TcePERTH WA 6000

Telephone: +61 8 9420 5600

Facsimile: +61 8 9420 5700

e-mail: [email protected]

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