2004-05 Budget Paper 4: Portfolio Statements · Portfolio statements typically reflect a consolidation of controlled items within each portfolio. Where a portfolio contains a single

PORTFOLIO STATEMENT

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

on the Occasion of the Budget for 2007–08

2007 08

BUDGET PAPER 4 Volume 2B

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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 – Justice ...................................................................................................................................4

Accounting Standards

VOLUME TWO

Introduction

Portfolio – Primary Industries and Resources ....................................................................................5

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

Portfolio – Health ...................................................................................................................................7

Portfolio – Administrative and Information Services .........................................................................8

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


VOLUME THREE

Introduction

Portfolio – Tourism ..............................................................................................................................10

Portfolio – Families and Communities ...............................................................................................11

Portfolio – Environment and Conservation and the River Murray ................................................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 included in the 2007-08 Portfolio Statements are special purpose financial reports.

Estimates in the Portfolio Statements have been prepared:

• on a basis that is consistent with Australian equivalents to International Financial Reporting Standards (AIFRS). 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 portfolio 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 2007-08. 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.

CHANGES TO AGENCY WORKFORCE SUMMARY TABLES

The Full Time Equivalent (FTE) workforce data detailed in agency Workforce Summary tables use the former Office for Public Employment’s (OPE’s) 2005-06 actual figures as published in The South Australian Public Sector Workforce Information at June 2006: Summary Report.

The 2006-07 Estimated result and 2007-08 Budget estimate reflect the newly established FTE cap figures. The FTE caps are consistent with agency salaries and wages budgets. There are minor differences in the scope of the OPE actuals and the FTE cap figures.

Portfolio: Primary Industries and Resources

Minister for Mineral Resources Development Minister for Urban Development and Planning Minister for the Southern Suburbs Minister for Agriculture, Food and Fisheries Minister for Forests Minister for State/Local Government Relations

PORTFOLIO SUMMARY

Ministerial Responsibilities...................................................................................................5.1

Workforce Summary .............................................................................................................5.4

Ministerial Office Resources ................................................................................................5.4

Agency Summary

Department of Primary Industries and Resources .................................................................5.6

PORTFOLIO: PRIMARY INDUSTRIES AND RESOURCES

MINISTERIAL RESPONSIBILITIES

Minister Agency Programs Sub-Programs 1. Mineral Resources

Development 1.1 Minerals 1.2 Petroleum

The Hon. Paul Holloway Minister for Mineral Resources Development Minister for Urban Development and Planning

Department of Primary Industries and Resources

2. Urban Development and Planning

2.1 Planning SA 2.2 Office of the North 2.3 Office of The North

West 2.4 Regional Ministerial

Offices

The Hon. John Hill Minister for the Southern Suburbs


3. Office for the Southern Suburbs

Nil

4. Agriculture, Food and Fisheries

4.1 Agriculture and Wine 4.2 Aquaculture 4.3 Fisheries 4.4 South Australian

Research and Development Institute (SARDI)

4.5 State Food Plan 4.6 Rural Services

The Hon. Rory McEwen Minister for Agriculture, Food and Fisheries Minister for Forests


5. Forestry Policy Nil

The Hon. Jennifer Rankine Minister for State/Local Government Relations


6. State/Local Government Relations

Nil

Statutory Authorities

The Hon. Paul Holloway, Minister for Urban Development and Planning, is responsible for the following Statutory Authorities.

• Adelaide Cemeteries Authority

• West Beach Trust (trading as Adelaide Shores)

5.1

Administered items

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

• Adelaide Hills Wine Industry Fund

• Apiary Industry Fund

• Aquaculture Lease Rehabilitation Fund

• Aquaculture Resource Management Fund

• Cattle Industry Fund

• Citrus Growers Fund

• Deer Industry Fund

• Development Application Fees

• Egg Industry Deregulation Fund

• Eyre Peninsula Grain Grower’s Rail Fund

• Fisheries Research and Development Fund

• ForestrySA — Community Service Obligation

• Grains Industry Levy

• Gulf St Vincent Prawn Fishery Levy

• Langhorne Creek Wine Industry Fund

• Local Government Taxation Equivalent Fund

• Marine Scalefish Industry Fund

• McLaren Vale Wine Industry Fund

• Natural Disaster Relief Fund

• Outback Areas Community Development Trust

• Pig Industry Fund

• Planning and Development Fund

• Riverland Wine Industry Fund

• Royalties

• Samcor Funds Administration

5.2

• Seed Levies Fund

• Sheep Industry Fund

• South Australian Local Government Grants Commission

• West Beach Trust (trading as Adelaide Shores) — Taxation Equivalent Regime (TER)

Statutes

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

5.3

WORKFORCE SUMMARY

FTEs as at 30 June

Agency 2007-08

Budget estimate 2006-07

Estimated result 2005-06 Actual

Department of Primary Industries and Resources 1 691.9 1 688.4 1 580.2

Total 1 691.9 1 688.4 1 580.2

MINISTERIAL OFFICE RESOURCES

2007-08 Budget

Cost of provision Minister $000 FTEs The Hon. Paul Holloway 1 731 14.0 The Hon. Rory McEwen 1 226 10.5 The Hon. Jennifer Rankine 1 260 10.0

5.4

5.5

TABLE OF CONTENTS

AGENCY: DEPARTMENT OF PRIMARY INDUSTRIES AND RESOURCES

Objective .........................................................................................................................................5.7

Targets / Highlights .........................................................................................................................5.8

Program Net Cost of Services Summary.........................................................................................5.10

Investing Payments Summary .........................................................................................................5.11

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

1. Mineral Resources Development ...................................................................................5.12

2. Urban Development and Planning .................................................................................5.15

3. Office for the Southern Suburbs ....................................................................................5.18

4. Agriculture, Food and Fisheries.....................................................................................5.20

5. Forestry Policy...............................................................................................................5.25

6. State/Local Government Relations ................................................................................5.27

Financial Statements

Income statement ..................................................................................................................5.29

Balance sheet.........................................................................................................................5.30

Statement of changes in equity .............................................................................................5.31

Cash flow statement ..............................................................................................................5.32

Income statement — Administered Items.............................................................................5.34

Balance sheet — Administered Items ...................................................................................5.35

Statement of changes in equity — Administered Items........................................................5.36

Cash flow statement — Administered Items ........................................................................5.37

Financial Commentary ....................................................................................................................5.39

5.6

PORTFOLIO: PRIMARY INDUSTRIES AND RESOURCES


Objective

The Department of Primary Industries and Resources’ (PIRSA) aim of fostering environmentally sustainable and internationally competitive industries is set in targets in South Australia’s Strategic Plan. These targets include increasing exports to $25 billion by 2014, maintaining mining exploration investment in excess of $100 million a year until 2010, boosting annual mineral production and processing to $4 billion by 2014, and increasing voter participation in Local Government elections in South Australia to 50 per cent by 2014.

In addition, to assist in achieving South Australia’s Strategic Plan targets PIRSA also has the additional objectives of:

• facilitating development and policy for the forestry and food industries;

• delivering fisheries and aquaculture management and industry development;

• identifying opportunities for mineral and petroleum exploration and development;

• promoting sustainable resource management, including soil, landcare and productive use of water;

• streamlining development planning;

• delivering rural and remote community support services;

• improving State/Local Government relations;

• facilitating priorities for the use of land and planning optimal community development;

• facilitating the application of innovative new technologies, services, products and knowledge through its strong partnerships with industry sectors, market intelligence and regional communities; and

• providing research and development capability delivering innovation to enhance the food, fibre and bioscience industries and ecosystem sector.

5.7

2007-08 Targets / 2006-07 Highlights

Targets 2007-08 Highlights 2006-07

Mineral Resources Development

• Implement work programs associated with year four of the Plan for Accelerating Exploration

• Maintain South Australia’s share of the national exploration expenditure including geothermal

• Move at least two new mining developments into construction • Maintain leadership in nationally significant native title

agreements in the minerals and petroleum sectors • Complete Planning Amendment Report and concept plan for

Port Bonython Minerals Precinct

Urban Development and Planning

• Undertake analysis for where Adelaide and regional areas should grow in future to meet South Australia’s Strategic Plan population target of two million by 2050

• Implement the program to improve the State’s planning and development system associated with the Development Act 2007

Office for the Southern Suburbs

• Facilitate the implementation of The Southern Wave investment attraction strategy

• Develop and assist in the implementation of regional strategies to address economic, social and environmental priorities for the Cities of Marion and Onkaparinga

Agriculture, Food and Fisheries

• Complete a review of the Genetically Modified Crops Management Act 2004, the Fruit and Plant Protection Act 1992 and the Impounding Act 1920

• Complete horticulture industry strategic plans for greenhouse vegetable and regional development strategies for the Adelaide Plains and Riverland

• Develop a supportive grower and industry information program, in support of the legislative changes to the Barley Export Marketing arrangements.

• Establish and support the Barley Industry Advisory Committee • Deliver the government’s drought response program, and

implement the Planning for Recovery program • Complete the FarmBis 3 program and participate in the

development of future national capacity development programs • Develop new technologies and systems to improve the

management of cropping land and incorporate these into relevant industry development plans

• Development of, and consultation for, an amendment Bill proposing enhancements to the Aquaculture Act

• Complete Aquaculture Zones for Coffin Bay, Port Neil, Rivoli Bay

• Complete scientific investigation and research into the development of new Aquaculture Zones

• Develop a program to address aquaculture-associated biosecurity risks

• Design a licensing framework and implementation strategy for Ornamental fish breeders and wholesalers

• Proclaim the Fisheries Management Act 2007 • Proclamation of the Coobowie Bay Aquatic Reserve • Attain Quality Certification to AS/NZS 9001:2000 Quality

Management Systems requirements for the PIRSA Fisheries business unit

• Design and implement seasonal forecasting and risk management tools to inform regional communities of their adaptive capacity to climate variability

Mineral Resources Development

• Implemented work programs associated with year three of the Plan for Accelerating Exploration

• Increased South Australia’s share of the national exploration expenditure

• Conjunctive Indigenous Land Use Agreement reached for petroleum exploration and development in the Cooper Basin is a nationally significant agreement

• South Australia leads the nation in geothermal exploration investment with 90 per cent of national geothermal exploration investment

Urban Development and Planning

• Passed the Development (Development Plans) Amendment Act 2006 and introduced and passed further legislative changes through the Building Safety Amendment Act 2006 and the Development (Assessment Procedures) Amendment Act 2007

• Released the Planning Strategy for the Metropolitan Adelaide Region and the Planning Strategy for the Outer Metropolitan Adelaide Region

• Introduced new requirements for energy efficient water heating and for additional non-mains water supply in new homes

Office for the Southern Suburbs

• Completed an investment attraction strategy for the southern region

• Provided advice to the Cities of Marion and Onkaparinga in relation to the finalisation and release of Southern Adelaide – A New Economic Future

Agriculture, Food and Fisheries

• Implemented the State’s Biosecurity Strategy including maintaining strategies that are effective in restricting fruit fly outbreaks, and developing plant and livestock health surveillance programs to meet interstate market access requirements

• Developed industry strategic plans for citrus, olives and apples/pears to address major structural issues

• Completed Economic Impact Assessment of South Australia’s ‘Cool Climate’ Wine Regions and the socio-economic study for the Riverland

• Finalised the collaborative arrangements for the Wine Innovation Cluster

• Hosted Australasian Aquaculture 2006 Conference and trade exposition in Adelaide, attracting 1400 delegates

• Introduced Fisheries Management Act 2007 into Parliament • Substantiated to US food regulators that South Australian

skipjack tuna canned at Port Lincoln met food safety labelling standards, leading to export orders worth US$30 million per annum

• Secured (for South Australia) the headquarters for the Australian Seafood Cooperative Research Centre (CRC) and major node status for the Sheep and Future Farm Industries CRC’s

• Gained endorsement for a food safety risk profiling framework to guide the classification of all food business sectors based on their likelihood of contributing to food borne disease

• Demonstrated the commercial viability of recycling nutrient-laden waste water at a regional abattoir into a resource for rearing ornamental fish, returning clean waters to the environment

• Gained consumer acceptance of the first batch of mulloway reared at the newly launched Waikerie Inland Saline Aquaculture Centre

5.8


• Commence Marine Innovation South Australia’s programs on seafood quality and value-adding and biosecurity to deal with invasive species and fish diseases

• Develop a system to monitor environmental changes on the seabed using DNA technology to manage aquaculture species

• Conduct an evaluation of an inland saline aquaculture industry in the Riverland

• Identify treatments acceptable to export markets to stop decay in navel oranges

• Implement year one work programs of the new State Food Plan 2007-2010

• Supporting the securing of temporary alternative slaughtering capacity and meat value-adding post Primo Abattoir fire

• Facilitating the commencement of upgrade works of Eyre Peninsula Grain Export Rail Infrastructure

• Assisting the completion of Edinburgh Park's poultry processing facility and hatchery and commence new feed mill construction

Forestry Policy

• Implement a state forest industry strategy • Increase the level of investment in forestry from

implementation of the Forestry Property Act Amendments

State/Local Government Relations

• Complete the wide-ranging independent review of Local Government elections and act on recommendations to increase voter turnout to 50 per cent or more by 2014, improve Local Government representation and improve the election process

• Develop measures that strengthen the framework for independent external audit of the financial management and governance of Local Government

• Review of the role and governance arrangements of the Outback Areas Community Development Trust

• Licensed a new cost-effective monitoring tool designed to lessen the risk of root zone salinity that is emerging under highly efficient irrigation regimes

• Provided scientific expertise and analysis to identify suitable zones for the future expansion of South Australia’s aquaculture industry

• Reviewed and updated State Food Plan • Provided technical expertise to the Department of Water, Land

and Biodiversity Conservation and Natural Resource Management projects targeting land degradation and management problems

• Provided business planning and environmental management services to assist pastoralists to achieve improved sustainability

Forestry Policy

• Developed six priority biodiversity corridors to link remnant native forests in the Lower Limestone Coast

• Amended the Forest Property Act in order to facilitate the growth of a value added and sustainable forest industry

State/Local Government Relations

• Introduced legislative amendments aimed at improving the accountability of councils

• Established wide-ranging independent review of Local Government Elections

• With the Local Government Association, resourced cooperative work on the Financial Sustainability Program working to improve Local Government financial governance structures and tools

5.9

Program net cost of services summary

Net Cost of Services

2007-08Budget

2006-07Estimated result

2006-07 Budget

2005-06 Actual

Program $000 $000 $000 $000 1. Mineral Resources Development................ 16 090 18 984 18 441 21 990 2. Urban Development and Planning ............. 13 640 14 133 13 969 18 001 3. Office for the Southern Suburbs. ............... 380 670 693 655 4. Agriculture, Food and Fisheries................. 126 698 101 731 87 572 93 639 5. Forestry Policy........................................... 2 304 2 220 2 178 2 096 6. State/Local Government Relations ............ 3 947 3 823 3 786 3 446

Total 163 059 141 561 126 639 139 827

Reconciliation to agency net cost of providing services (as per agency Summary income statement)

Add: Net cost of programs/functions transferred out

Office for Volunteers to Attorney-General’s Department ................. n.a. 1 472 1 444 1 077

Subtotal 163 059 1 472 1 444 1 077 Less: Net cost of programs/functions transferred in

Minister Holloway’s Office from Department of Trade and Economic Development ..............................................

n.a.

n.a.

n.a. 1 079

Office for Volunteers from the Department of Premier and Cabinet ...........

n.a.

n.a.

n.a.

995

Forestry Policy from ForestrySA ............... n.a. n.a. n.a. 2 096

Equals: Net cost of providing services (as per agency Summary income statement)

163 059 143 033 128 083 136 734

Notes: Responsibility for the Office for Volunteers transferred to the Attorney-General’s Department on 1 April 2007. The 2006-07 Budget and 2006-07 Estimated Results reflected in the above table represent the proportion of the budget held by the Department of Primary Industries and Resources (PIRSA) for the period under its control during 2006-07. For comparability across years, the 2005-06 Financial Statements and Program summary actuals for PIRSA include: – Minister Holloway’s Office costs incurred by the Department of Trade and Economic Development to 31 March 2006, at

which time the function was transferred to the control of PIRSA; – Forestry Policy costs incurred by ForestrySA to 30 June 2006, after which time the Forestry Policy function was transferred to

the control of PIRSA; and – Office for Volunteers costs incurred by the Department of the Premier and Cabinet to 31 March 2006, at which time the

function was transferred to the control of PIRSA.

5.10

Investing payments summary

2007-08Budget


2006-07 Budget

2005-06 Actual

Investments $000 $000 $000 $000

Works in Progress

Brukunga Mine Rehabilitation ................... 4 024 606 3 440 4 Offshore Fisheries Patrol Vessel ................ — — — 569 Electronic Plan Amendment Report ........... 286 222 484 76 Marine Innovation SA ................................ 1 000 200 800 — West Beach SA Aquatic Sciences Centre Seawater Intake Pipe Rectification............. — — — 1 144

Total Works in Progress 5 310 1 028 4 724 1 793

Minor Works 5 472 5 554 5 554 6 903

Total Minor Works 5 472 5 554 5 554 6 903 Other Investing Payments

Rural Finance – Loans to Cooperatives...... 1 000 1 000 1 000 — Rural Finance – Other Loans...................... 218 218 218 214 Other........................................................... — — — 610

Total Other Investing Payments 1 218 1 218 1 218 824

Total Investing Payments 12 000 7 800 11 496 9 520

5.11


Program Information

Program 1: Mineral Resources Development

Description/Objective: The vision of the Mineral Resources Development program is to make South Australia a favoured mineral investment destination for private investment with mineral exploration expenditure to be maintained in excess of $100 million per annum until 2010 and mineral production and processing to reach $4 billion by 2020. The Mineral Resources Development program will also lead the nation in attracting geothermal resource investment with a target of $800 million of investment to establish geothermal energy resources in the 10 year term 2007-17.

Summary income statement

Program 1: Mineral Resources Development

2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 15 815 15 487 13 997 13 443 Supplies and services........................................ 6 859 6 431 9 339 7 244 Grants and subsidies ......................................... 1 580 4 087 1 559 7 432 Depreciation and amortisation .......................... 248 247 234 233 Other................................................................. 99 21 79 2

Total expenses 24 601 26 273 25 208 28 354

Income Sale of goods and services................................ 163 165 165 133 Fees, fines and penalties ................................... 7 630 6 272 6 011 5 623 Commonwealth revenue ................................... 5 155 115 141 Other................................................................. 713 697 476 467

Total income 8 511 7 289 6 767 6 364

Net cost of providing services 16 090 18 984 18 441 21 990

5.12

Sub-program information

Sub-program: 1.1 Minerals

Manage the state’s mineral resources by regulating mining operations; implementing significant exploration initiatives; providing comprehensive, high quality geoscientific data and advice; developing sustainable practices for exploration and mining; facilitating mineral resource projects through approval processes; developing an effective and efficient policy and legislative framework; and collecting mineral royalties and fees.

2007-08 Budget

2006-07 Estimated result

2006-07 Budget

2005-06 Actual

Net cost of sub-program $15 074 000 $17 793 000 $17 254 000 $21 092 000

Performance Commentary For the calendar year 2006 exploration expenditure reached $191.4 million, up from $99.4 million in calendar 2005, representing an increase of 92.6 per cent.

Minerals and Energy Resources Division has assisted in increasing South Australia’s share of the national exploration expenditure from 8.8 per cent in 2005 to 13 per cent in 2006. Only the large mining states, Western Australia and Queensland, hold larger shares.

The Plan for Accelerating Exploration (PACE) initiative, in particular the collaborative drilling project, has been a major driver in achieving this result. There have been 15 technical drilling successes attributed to the PACE collaborative drilling project, including the Carrapateena copper-gold, Gulliver mineral sands and Beverley 4 mile uranium prospects.

The PACE funded Centre for Mineral Exploration Under Cover at the University of Adelaide is now operational with a Chair and three staff appointed in 2006. Funding from the Australian Research Council has been secured ($600 000) and collaborations with 12 companies. PACE has also co-funded the establishment of the Chair for Mining Geology and has worked closely with the University and industry sponsors to establish the new School of Mining Engineering with 60 first year students.

The Fraser Institute of Canada 2006-07 Survey of mining companies shows South Australia has continued to perform very well in the Mineral Potential Index rising from 6th to 4th. In 2004-05, South Australia was positioned 18th out of 64 global jurisdictions. South Australia has performed exceptionally well across the whole survey, achieving four equal first places and top Australian State in another five categories.

Five significant mining projects have received final approvals and entered the construction phase, including Prominent Hill, Mindarie and Angus and a further five projects moved into the full feasibility phase. Exploration continues to focus on the following commodities: Uranium, Iron Ore, Copper–Gold, Gold, Heavy Mineral Sands, and Zinc.

5.13

Sub-program: 1.2 Petroleum

To maximise the community’s net benefits from the state’s ownership of the rights to petroleum and geothermal resources. Manage the state’s petroleum, gas and geothermal resources by regulating operations; providing comprehensive, high quality geoscientific data and advice; developing sustainable practices for exploration and development, facilitating projects through approval processes; developing an effective and efficient policy and legislative framework; and collecting royalties and fees.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Net cost of sub-program $1 016 000 $1 191 000 $1 187 000 $898 000

Performance Commentary A conjunctive (full-cycle) Indigenous Land Use Agreement (ILUA) for the Cooper Basin was endorsed by the Aboriginal Legal Rights Movement (on behalf of Native Title Claimants), South Australian Chamber of Mines and Energy (on behalf of the upstream petroleum sector) and the South Australian Government. One of the three relevant Native Title Claim groups has agreed to the terms of the ILUA. Negotiations with the two remaining claim groups are in progress.

An effective legislative framework in geothermal resources has attracted an estimated $522 million in exploration and proof-of-concept (work program) investment in the term 2002–11.

295 petroleum exploration, retention and production licences and applications represent a historical high with more than 85 per cent of petroleum prospective acreage covered.

The efficiency and effectiveness of co-regulation has been formalised with improved administrative arrangements between PIRSA Petroleum and Geothermal Group, Planning SA, the Department for Environment and Heritage and the Environment Protection Authority. Similar arrangements are being drafted with the Department of Water, Land and Biodiversity Conservation (DWLBC).

Contributed to effective consultative processes with stakeholders in regard to land access for mining, petroleum and geothermal projects.

The Native Vegetation Act requires significant environmental offsets for development opportunities that impact on native vegetation. Guidelines have been agreed between the Native Vegetation Council, DWLBC and PIRSA.

A Green Paper is currently out for public consultation, closing June 2007, on amendments to the Petroleum Act 2000, with most changes proposed to enhance the administration of the Act and Regulations.

South Australia leads the nation in geothermal exploration investment with 90 per cent of national geothermal exploration investment.

5.14


Program Information

Program 2: Urban Development and Planning

Description/Objective: Guiding and administering the South Australian Planning and Development system. Co-ordinating a whole of government approach to the government’s policy commitments and contributing to the state’s sustainable economic development by developing strategic spatial policies to accommodate population growth and demographic change, facilitate industrial and commercial expansion and meet demand for housing growth and diversity.


Program 2: Urban Development and Planning

2007-08Budget


2006-07 Budget (a)

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 13 600 13 235 12 602 12 349 Supplies and services........................................ 4 497 4 927 4 261 4 665 Grants and subsidies ......................................... 247 778 10 479 3 335 Depreciation and amortisation .......................... 343 530 530 508 Other................................................................. 1 1 221 36

Total expenses 18 688 19 471 28 093 20 893

Income Sale of goods and services................................ 84 225 — 129 Fees, fines and penalties ................................... 3 872 3 714 13 414 1 852 Commonwealth revenue ................................... 187 179 — 16 Other................................................................. 905 1 220 710 895

Total income 5 048 5 338 14 124 2 892


(a) The original 2006-07 Budget included $9.599 million for both revenue and expenditure associated with the Planning and Development Fund. This function is now reflected as part of the Administered Items of PIRSA for the 2006-07 Estimated Result and 2007-08 Budget in line with the presentation in the department’s 2005-06 audited financial statements.

5.15

Sub-program: 2.1 Planning SA

Guiding and administering the South Australian Planning and Development system. As the State Government’s principal adviser on land use planning, building, urban design, and development strategies and policies, its main objective is to provide direction, advice, assistance and information on a range of development proposals, opportunities and issues.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary Amendments to the Development Act through the Development (Development Plans) Amendment Act 2006, the Building Safety Amendment Bill Act and the Development (Assessment Procedures) Amendment Act 2007 were passed by Parliament as part of the program to improve the state’s planning and development system.

The Development (Panels) Amendment Act 2006 was completed in January 2007 when all Council Development Panels were established and the Code of Conduct gazetted.

15 Statement of Intents authorised for Development Plans to be converted to the simpler, clearer Better Development Plans format. One conversion finalised and a further 19 councils preparing statements of intent. Version 1 of the Better Development Plans policy library was released in July 2006 and the updated Version 2 released in February 2007.

Two updated volumes of the Planning Strategy were released in August 2006 – the Planning Strategy for Metropolitan Adelaide and the Planning Strategy for the Outer Metropolitan Adelaide Region. The Metropolitan Adelaide volume incorporates the Residential Metropolitan Development Program for sequencing land release for development.

A new draft volume of the Planning Strategy for the Yorke Peninsula Region (Yorke Peninsula Regional Land Use Framework) released for public consultation.

Commenced the preparation of draft volumes of the Planning Strategy for further regional areas (Lower North, Northern Region) and the master planning project for the Greater Mount Gambier region.

Long-term project commenced to derive spatial frameworks for where South Australia should grow in response to South Australia’s Strategic Plan population target of two million by 2050 established by the Major Proposals Review Committee of Cabinet.

A number of proposed developments at various stages of assessment under the Major Development provisions of the Development Act.

New requirements introduced for energy efficient water heating and additional non-mains water supply in new homes and some additions/alterations, and new energy efficiency requirements introduced for commercial and public buildings.

Sub-program: 2.2 Office of the North

To assist in the realisation of the government’s policy commitments to improve economic development, social and environmental outcomes for the communities identified as being of high need in the North.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Net cost of sub-program — $227 000 $227 000 $388 000

Performance Commentary Operations of the office ceased during 2006-07.

5.16

Sub-program: 2.3 Office of the North West

To assist in the realisation of the government’s policy commitments to improve economic development, social and environmental outcomes for the communities identified as being of high need in the North West.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary Operations of the office ceased during 2006-07.

Sub-program: 2.4 Regional Ministerial Offices

To assist in the realisation of the government’s policy commitments to improve economic development, social and environmental outcomes for the communities identified as being of high need in the following regions:

• the Upper Spencer Gulf, Flinders Ranges and Outback; and • the River Murray communities.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary Operations of the offices ceased during 2006-07.

5.17


Program Information

Program 3: Office for the Southern Suburbs

Description/Objective: To assist in the realisation of the government’s policy commitments to improve economic development, social and environmental outcomes for the communities identified as being of high need in the Southern Suburbs.


Program 3: Office for the Southern Suburbs

2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 248 217 251 310 Supplies and services........................................ 112 183 216 72 Grants and subsidies ......................................... 20 270 224 295 Other................................................................. — — 2 —

Total expenses 380 670 693 677

Income Other................................................................. — — — 22

Total income — — — 22

Net cost of providing services 380 670 693 655

5.18

Program: 3 Office for the Southern Suburbs

To assist in the realisation of the government’s policy commitments to improve economic development, social and environmental outcomes for the communities identified as being of high need in the Southern Suburbs.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Net cost of program $380 000 $670 000 $693 000 $655 000

Performance Commentary Provided advice to the Cities of Marion and Onkaparinga in relation to the finalisation and release of Southern Adelaide — A New Economic Future.

Project managed the consultancy for The Southern Wave — an investment attraction strategy for the Southern Suburbs.

Facilitated opportunities for master planning in the Southern Suburbs.

Facilitated opportunities to progress the consultation process between the government and the City of Onkaparinga regarding growth management.

Facilitated discussions between the Department of Trade and Economic Development and the City of Onkaparinga regarding the future funding of the Youth Employment Alliance.

Provided advice to business seeking funding through the Innovation and Investment Fund for South Australia.

Provided advice through membership of a range of reference groups focusing on workforce development, export opportunities, social impacts and education of young people at risk.

Continued to work with the Cities of Marion and Onkaparinga supporting initiatives for young graffiti artists including career pathways, and reduced graffiti in the Southern Suburbs.

Initiated stronger working links with the Centre for Innovation — Southern node — including sponsorship of an Innovation Forum.

5.19


Program Information

Program 4: Agriculture, Food and Fisheries

Description/Objective: To deliver specialist services and advice across South Australia, fostering growth and development, prosperity, quality of life, while supporting environmentally sustainable development of the state’s resources.


Program 4: Agriculture, Food and Fisheries

2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 95 205 91 287 89 046 87 221 Supplies and services........................................ 65 189 60 950 61 632 50 058 Grants and subsidies ......................................... 162 337 57 671 16 435 28 364 Depreciation and amortisation .......................... 7 779 7 501 7 514 7 524 Other................................................................. 909 1 014 467 3 692

Total expenses 331 419 218 423 175 094 176 859

Income Sale of goods and services................................ 31 556 29 813 32 670 38 547 Fees, fines and penalties ................................... 778 786 465 421 Commonwealth revenue ................................... 120 714 35 796 5 211 4 404 Other................................................................. 51 673 50 297 49 176 39 848

Total income 204 721 116 692 87 522 83 220


5.20


Sub-program: 4.1 Agriculture and Wine

Develop and implement policies, legislation, regulatory frameworks and programs to promote an optimal business, natural and social environment within which primary industries can grow.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary

Drought Response

As a result of the unique circumstances involved with drought response, the Government of South Australia has been implementing a measured escalation of support measures over time to avoid creating a feeling of panic and/or hopelessness in the community. The government has implemented six phases of drought response since drought impacts began to emerge across the state and will continue to keep the situation under review. The six phases implemented include:

• Phase 1 - Initial information provision and realignment of existing resources; • Phase 2 - Assistance to individuals and communities to cope with the impact of drought; • Phase 3 - Support for Exceptional Circumstances applications; • Phase 4 - Focus on recovery and support for families in receipt of Exceptional Circumstances assistance; • Phase 5 - Support for additional Exceptional Circumstances applications; and • Phase 6 - Additional assistance to individuals and communities to cope with the impact of drought.

Drought response leadership, coordination and support have been provided to Riverland horticulture industries.

Exceptional Circumstances (EC) The Exceptional Circumstances Program is the Australian Government's major drought response program for affected primary producers and dependant small businesses. The program consists of two components; a relief payment that is administered by Centrelink and essentially provides the equivalent of Newstart; and an interest rate subsidy that is administered by PIRSA on behalf of the Australian Government. The Government of South Australia funds 10 per cent of the interest rate subsidy.

There are many regions in South Australia that are currently fully EC declared and a further seven regions in various stages of progress towards obtaining full EC status. If all remaining regions are deemed to be eligible it will result in the majority of regional South Australia being able to apply for EC assistance.

The Genetically Modified Crops Management Act 2004 was amended to extend the prohibition on the commercial cultivation of genetically modified food crops in South Australia (to 29 April 2008), to allow issues around the co-existence arrangements for genetically modified and non-genetically modified food crops to be resolved.

The Barley Exporting Act 2007, which resulted from a review of bulk barley marketing arrangements by an industry working group, was passed by the South Australian Parliament. The Act confers on the Essential Services Commission of South Australia (ESCOSA) the power to license entities that export barley from South Australia for the period 1 July 2007 to 30 June 2010. The Act also repeals the Barley Marketing Act 1993 on 30 June 2007, thereby allowing South Australian barley growers to deliver bulk barley to any exporter licensed by ESCOSA from 1 July 2007.

Formally launched strategic plans for the citrus and olive industries.

Strategic plans for the apple/pear/cherry and potato industries have been prepared and are being ratified with industry. Initial work has commenced on the vegetable and greenhouse vegetable strategic plans.

A blueprint for long-term horticulture development of the Adelaide Plains has been prepared and collaborative arrangements for the Wine Innovation Cluster have been finalised.

5.21

Sub-program: 4.2 Aquaculture

Ensuring the sustainable development of South Australia’s aquaculture industry, with a statutory and regulatory responsibility for the planning and management of aquaculture in South Australia. These responsibilities are met through the zoning and granting and renewal of licences and leases under the Aquaculture Act 2001.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary Developed and maintained necessary policy and procedural framework to facilitate aquaculture development in South Australia through the development of policies pursuant to the Aquaculture Act 2001.

Completed Aquaculture Zone policies (Smoky Bay, Lower Eyre, Anxious Bay), providing the necessary policy framework to facilitate and consolidate aquaculture development, assisting economic and regional development in South Australia.

Commenced development of new aquaculture zones for Port Neill and Rivoli Bay, aimed at identifying additional areas for the growing finfish and abalone sectors, and a policy for Coffin Bay to consolidate oyster farming activities.

Sub-program: 4.3 Fisheries

The management and administration of the living marine and freshwater resources of South Australia, as required under the Fisheries Act 1982. This includes the development and implementation of appropriate management plans for commercial fishing, recreational fishing, and charter fishing, development of government policy for sustainable resource access and allocation and the administration of licensing and compliance services.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary Management plans for the Northern and Southern Zone rock lobster fisheries and Spencer Gulf prawn fishery were completed.

Performance of the Gulf St Vincent Prawn fishery and Northern Zone rock lobster fishery improved with the stock rebuilding strategy in place.

A total of 25 successful court prosecutions for illegal fishing activity, in addition to 280 expiation notices issued.

Ecological assessments of the Giant Crab fishery were completed, under the Australian Government Environment Protection Conservation and Biodiversity Act 1999 leading to export accreditation for these fisheries.

The successful Volunteer Program contributed 8458 voluntary hours and contacted 30 806 recreational fishers across South Australia, broadening compliance capacity in the regional areas. This represents an increase of 18 per cent in volunteer hours and a 51 per cent increase in recreational fisher contacts based on 2005-06 figures.

The Fishcare Volunteer Program was the recipient of the inaugural South Australian Recreational Fishing Advisory Council, Award of Excellence in Education.

Further development of partnership arrangements with Ocean View College and the Marine Discovery Centre to incorporate the responsible fishing message into educational programs, for next generation recreational fishers.

PIRSA Fisheries Services achieved quality certification under AS/NZS 9001:2000 Quality Management Systems for the areas of Community Awareness, Compliance, Licensing, Legal, Information and Business Services.

Control of the invasive weed Caulerpa taxifolia continued including quarantine, survey, patch control and research.

5.22

Sub-program: 4.4 South Australian Research and Development Institute (SARDI)

South Australia’s principal research and development capability and organisation in the primary industries and environmental related biosciences, working in collaboration with state, national and international collaborators and investors.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary Substantiated that South Australian skipjack tuna, canned at Port Lincoln, fulfils food safety labelling standards leading to export orders of US$30 million per annum.

Gained approval for three new cooperative research centres to support the seafood, sheep and future farm industries, aimed at creating competitive market advantage through addressing consumer needs.

Developed and gained endorsement for a food safety risk profiling framework to guide the classification of all food business sectors based on their likelihood of contributing to food borne disease.

Identified fungicide treatments effective in preventing decay in export lemons, while continuing to identify options for other citrus fruits following the removal of previously available treatments.

Gained Food Standards Australia/New Zealand endorsement for food safety risk profiles for eggs aimed at reducing the risk of food borne poisoning.

Developed cost effective disease management strategies both to aid re-establishment of a thriving chickpea industry following destructive disease outbreaks that halted production for five years, and to protect the state’s faba bean industry from a similar setback.

Secured ‘preferred milling variety’ status with a major cereal processor for Mika, a SARDI-bred oat variety developed for the human health market.

Launched Rasina Vetch, giving South Australian growers in low rainfall zones a competitive, viable and versatile grain legume option. Rasina has many features and multi-purpose uses (grain or grazing) with export potential.

Led state-wide educational programs to help agricultural businesses adapt to climate variability and more broadly climate change.

Continued exports of the SARDI fan to global horticulture markets by renewing a contract with an international machinery company with orders of 4600 units by 2009.

Released a high-quality guide on producing quality oaten hay, earning recognition as the definitive resource to support expansion of the South Australian and national export hay industry.

Sub-program: 4.5 State Food Plan

PIRSA has principal responsibility for implementing the South Australian Food Centre as a key service delivery strategy of the State Food Plan 2004-2007. The South Australian Food Centre is a three way partnership between the State Government, industry food groups and Regional Development Boards to achieve the objectives of the State Food Plan through: Market Development, Capability Development and Regional Networks, Sector Development, Innovation and Communications Hub and Premier’s Food Council Secretariat.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary The 2004-2007 phase of the State Food Plan will be completed at the end of June 2007.

A review of the Plan’s Capability Development and Statewide Networks Program found that the State Food Plan had been effective in delivering its objectives and target outcomes, and had resulted in very effective networking and peer supported industry development.

Additional surveys of Food Industry Development Officers and industry participants in the program indicated that there had been significant economic growth as a result of the program (approximately 30 per cent growth in employment and turnover over the period of the Program).

A new Industry and Capability Development Program, which will focus on businesses with high growth opportunities to deliver on the State Food Plan’s headline target of eight per cent growth, has been developed for 2007-10.

5.23

Sub-program: 4.6 Rural Services

Provide a key service delivery role, integrating economic, environmental and social dimensions into an integrated ecologically sustainable development based service package. A diverse range of services are provided for government agencies, natural resource management bodies, agricultural industry development organisations, food, wine, forestry and resources companies, regional bodies, primary producers and community groups.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary Delivered a wide range of environmental management services including revegetation, animal and plant control, land and water management, and pastoral rangeland assessment.

Delivered programs to increase the level of community and other stakeholder involvement in regional natural resource management programs (on behalf of DWLBC).

Delivered a wide range of services to the field crop, livestock, horticulture, fisheries and aquaculture industries aimed at improving the competitiveness of industry value chains.

Provided both technical and program support services to Natural Resource Management (NRM) Boards.

Development of a resource manual for all NRM practitioners to use when engaging and working with Aboriginal communities.

Providing national environmental auditing services to Australian Pork Limited.

Project partnership with SA Arid Lands NRM Board focusing on feral camel control in arid areas.

Negotiation of a collaborative project for the Katarapko Demonstration Research utilising capability and collaborative relations with Banrock Station, Department for Environment and Heritage, SARDI, Community Groups and the Murray-Darling Basin Committee.

Key projects delivered include: working with Australian Zircon monitoring mineral sands mining site; a range of workshops aimed at building the capacity of farm businesses; and blue gum plantation development for Adelaide Blue Gum Ltd.

5.24


Program Information

Program 5: Forestry Policy

Description/Objective: Support the sustainable development of an internationally competitive forest industry, regional development and the provision of services from State Government forest reserves.


Program 5: Forestry Policy 2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 1 574 1 466 1 310 1 248 Supplies and services........................................ 699 730 551 819 Grants and subsidies ......................................... 144 223 29 29 Other................................................................. — — 288 —

Total expenses 2 417 2 419 2 178 2 096

Income Sale of goods and services................................ — 6 — — Commonwealth revenue ................................... 113 193 — —

Total income 113 199 — —


5.25

Program information

Program: 5 Forestry Policy

Support the sustainable development of an internationally competitive forest industry, regional development and the provision of services from State Government forest reserves.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Net cost of program $2 304 000 $2 220 000 $2 178 000 $2 096 000

Performance Commentary Provided service and advice to support forest industry development in South Australia for public and private enterprises including farm based production for commercial diversification and environmental benefits.

Provided policy and legislation advice for forestry and natural resource management.

Managed Community Service Obligation programs, including the management of native vegetation and visitors to State Government forest reserves.

Management plans prepared for six native forest reserves in the Lower South East.

More than 25 000 hours contributed by volunteers and community program participants to improve the biodiversity and heritage values of native forests.

5.26


Program Information

Program 6: State/Local Government Relations

Description/Objective: Provide policy and other advice to the government on the constructive relationship between the State Government and councils and other associated Local Government representative groups; whole of government policy and legislative frameworks as they affect Local Government; and the constitution and operations of the Local Government system, including the statutory authorities for which the Minister for State/Local Government Relations is responsible.


Program 6: State/Local Government Relations

2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 2 837 2 752 2 597 1 954 Supplies and services........................................ 1 035 1 000 1 126 909 Grants and subsidies ......................................... 70 270 69 688 Other................................................................. 5 16 4 —

Total expenses 3 947 4 038 3 796 3 551

Income Other................................................................. — 215 10 105

Total income — 215 10 105


5.27

Program information

Program: 6 State/Local Government Relations

Provide policy and other advice to the government on the constructive relationship between the State Government and councils and other associated Local Government representative groups; whole of government policy and legislative frameworks as they affect Local Government; and the constitution and operations of the Local Government system, including the statutory authorities for which the Minister for State/Local Government Relations is responsible.

2007-08 Budget


2006-07 Budget

2005-06 Actual


Performance Commentary Revised the State-Local Government Relations Agreement to reflect the national Inter-Governmental Agreement Establishing Principles Guiding Inter-Governmental Relations on Local Government Matters, and the annual Schedule of Priorities for 2006-07, signed by the Premier and the President of the Local Government Association in November 2006.

Supported the establishment of the South Australian Branch of the Australian Local Government Women’s Association, and the production of the Women in Local Government Works resource kit released in February 2007.

Through the South Australian Local Government Grants Commission, administered the distribution of an additional $3.75 million in Commonwealth funding for the Special Local Roads program for roads of regional significance.

Continued support to the Minister’s State/Local Government Forum that deals with strategic issues of importance to State and Local Government and reinforces the relationship between the Local Government Association (LGA) and the State Government.

Progressed major infrastructure issues considered by the Minister’s Local Government Forum. The Government of South Australia and the LGA entered into a 30-year funding and governance agreement for stormwater management and flood mitigation.

Continued the alignment of the State and Local Government strategic plans by providing support to the LGA project, Making the Connections, and promoting full participation by the Local Government sector.

Developed, in collaboration with the local government sector, a set of Model Financial Statements for Local Government. The Model Financial Statements and notes are consistent with Australian Accounting Standards and incorporate the best practice of other Local Government jurisdictions in Australia.

Regulations supporting the Local Government (Financial Management and Rating) Amendment Act 2005 came into operation in January this year and are designed to improve accountability, financial management, flexibility and rating decisions by councils.

5.28

PRIMARY INDUSTRIES AND RESOURCES

Income statement__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 107 022 103 958 101 316 90 781 Long service leave .................................................................... 3 389 3 042 3 073 3 396 Payroll tax ................................................................................ 6 622 6 344 5 555 5 940 Superannuation ......................................................................... 11 883 11 455 10 109 10 905 Other ......................................................................................... 362 275 362 3 641Supplies and services — General supplies and services .................................................. 77 524 73 488 76 667 61 896 Consultancy expenses .............................................................. 866 873 842 900Depreciation and amortisation ..................................................... 8 370 8 278 8 278 8 265Borrowing costs ............................................................................ 212 311 311 381Grants and subsidies ..................................................................... 154 451 59 429 28 463 35 534Intra government transfers ........................................................... 9 947 4 091 780 4 709Other expenses ............................................................................. 803 741 750 3 350

Total expenses .............................................................................. 381 451 272 285 236 506 229 698

Income

Commonwealth revenues ............................................................. 121 019 36 323 5 326 4 561Intra government transfers ........................................................... 16 241 17 197 16 623 4 773Other grants .................................................................................. 31 544 29 080 27 689 24 370Fees, fines and penalties ............................................................... 12 279 10 772 19 890 7 896Sales of goods and services .......................................................... 31 802 30 282 32 835 38 831Interest revenues ........................................................................... 2 091 2 130 2 450 4 631Net gain or loss from disposal of assets ....................................... — 40 40 — Other income ................................................................................ 3 416 3 428 3 570 7 902

Total income ................................................................................. 218 392 129 252 108 423 92 964

Net cost of providing services ...................................................... 163 059 143 033 128 083 136 734

Income from / Expenses to SA Government

Income — Appropriation ........................................................................... 163 061 138 829 130 773 137 069 Other income ............................................................................ — 2 417 — 2 042

Net income from / expenses to SA Government .......................... 163 061 141 246 130 773 139 111

Net result before restructure(s) ..................................................... 2 -1 787 2 690 2 377

Net income from / expenses from administrative restructure(s) .. — -13 402 — -2 048

Net result after restructure(s) ........................................................ 2 -15 189 2 690 329

5.29


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 67 761 67 559 78 526 75 070Receivables ................................................................................... 18 870 19 724 17 529 22 942Inventories .................................................................................... 1 499 1 499 825 3 153Other current assets ...................................................................... 149 149 443 —

Total current assets ....................................................................... 88 279 88 931 97 323 101 165

Non current assets

Financial assets ............................................................................. 4 306 4 155 3 299 4 004Land and improvements ............................................................... 94 008 98 671 76 098 103 114Plant and equipment ..................................................................... 39 620 32 114 34 434 29 367Intangible assets ........................................................................... 605 1 039 6 726 4 237Other non-current assets ............................................................... 2 973 2 973 1 901 376

Total non-current assets ............................................................... 141 512 138 952 122 458 141 098

Total assets ................................................................................... 229 791 227 883 219 781 242 263

Liabilities

Current liabilities

Payables ........................................................................................ 19 853 20 136 10 901 21 734Short-term borrowings ................................................................. 2 070 2 437 454 3 689Employee benefits — Salaries and wages ................................................................... 2 072 1 841 1 869 1 605 Annual leave ............................................................................. 8 679 8 526 6 640 7 040 Long service leave .................................................................... 1 213 1 152 676 1 028Short-term provisions ................................................................... 522 508 330 434Other current liabilities ................................................................. 5 391 5 391 3 931 5 789

Total current liabilities ................................................................. 39 800 39 991 24 801 41 319

Non current liabilities

Long-term borrowings .................................................................. 951 1 341 3 003 2 000Long-term employee benefits — Long service leave .................................................................... 27 386 24 903 25 784 22 493Long-term provisions ................................................................... 1 154 1 143 862 1 156Other non-current liabilities ......................................................... 824 831 1 225 435

Total non-current liabilities .......................................................... 30 315 28 218 30 874 26 084

Total liabilities .............................................................................. 70 115 68 209 55 675 67 403

Net assets ...................................................................................... 159 676 159 674 164 106 174 860

Equity

Contributed capital ....................................................................... 1 176 1 176 4 116 1 173Retained earnings ......................................................................... 113 618 113 616 137 447 128 236Asset revaluation reserve ............................................................. 41 448 41 448 20 855 42 017Other reserves ............................................................................... 3 434 3 434 1 688 3 434

Total equity .................................................................................. 159 676 159 674 164 106 174 860

Balances as at 30 June end of period.

5.30


Statement of changes in equity__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... 1 173 42 017 131 670 174 860Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... 1 173 42 017 131 670 174 860

Net gain/loss on revaluation of property, plant and equipment during 2006-07 ............................................................................ — -569 — -569Net changes in reserves ................................................................ — — 569 569

Net income/expense recognised directly in equity for 2006-07 ... — -569 569 — Net result after restructure for 2006-07 ........................................ — — -15 189 -15 189

Total recognised income and expense for 2006-07 — -569 -14 620 -15 189

Equity contributions from SA Government ................................. 3 — — 3Repayment of equity contributions from SA Government .......... — — — —

Estimated balance at 30 June 2007 1 176 41 448 117 050 159 674

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ............................................................................ — — — — Net changes in reserves ................................................................ — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ........................................ — — 2 2

Total recognised income and expense for 2007-08 — — 2 2

Equity contributions from SA Government ................................. — — — — Repayment of equity contributions from SA Government .......... — — — —

Estimated balance at 30 June 2008 1 176 41 448 117 052 159 676

5.31


Cash flow statement__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000

OPERATING ACTIVITIES:

Cash outflows

Employee payments ..................................................................... 126 385 120 817 117 355 111 100Supplies and services ................................................................... 78 670 74 562 77 710 62 431Borrowing costs ............................................................................ 212 311 311 412Grants and subsidies ..................................................................... 154 451 59 429 28 463 30 743Net GST paid ................................................................................ — — — 40Intra government transfers ........................................................... 9 947 4 091 780 — Other payments ............................................................................ 753 685 753 698

Cash used in operations ................................................................ 370 418 259 895 225 372 205 424

Cash inflows

Intra government transfers ........................................................... 16 241 17 197 16 623 4 773Commonwealth receipts ............................................................... 121 019 36 323 5 326 4 561Other grants .................................................................................. 31 544 29 080 27 689 23 817Fees, fines and penalties ............................................................... 12 279 10 772 19 890 7 714Sales of goods and services .......................................................... 31 166 29 664 32 217 38 831Interest received ........................................................................... 2 367 2 565 2 885 4 739Other receipts ............................................................................... 3 113 3 051 3 193 4 345

Cash generated from operations ................................................... 217 729 128 652 107 823 88 780

SA GOVERNMENT:

Appropriation ............................................................................... 163 061 138 829 130 773 137 069Other receipts ............................................................................... — 2 417 — 2 042

Net cash provided by SA Government ......................................... 163 061 141 246 130 773 139 111

Net cash provided by (+) / used (-) in operating activities ........... 10 372 10 003 13 224 22 467

INVESTING ACTIVITIES:

Cash outflows

Purchase of property, plant and equipment .................................. 10 782 6 582 10 278 8 696Advances paid .............................................................................. 1 218 1 218 1 218 214Other payments ............................................................................ — — — 610

Cash used in investing activities .................................................. 12 000 7 800 11 496 9 520

Cash inflows

Proceeds from sale of property, plant and equipment .................. — 100 100 144Repayment of advances ................................................................ 2 587 3 660 3 660 2 432

Cash generated from investing activities ..................................... 2 587 3 760 3 760 2 576

Net cash provided by (+) / used in (-) investing activities ........... -9 413 -4 040 -7 736 -6 944

5.32



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000

FINANCING ACTIVITIES:

Cash outflows

Repayment of borrowings ............................................................ 1 757 3 015 3 015 1 398Finance lease payments ................................................................ — — — 397

Cash used in financing activities .................................................. 1 757 3 015 3 015 1 795

Cash inflows

Capital contributions from SA Government ................................ — 3 313 — Proceeds from borrowings ........................................................... 1 000 1 000 1 000 — Proceeds from restructuring activities .......................................... — -11 462 — 550

Cash generated from financing activities ..................................... 1 000 -10 459 1 313 550

Net cash provided by (+) / used in (-) financing activities ........... -757 -13 474 -1 702 -1 245

Net increase (+) / decrease (-) in cash equivalents ....................... 202 -7 511 3 786 14 278

Cash and cash equivalents at the beginning of the financial year 67 559 75 070 74 740 60 792

Cash and cash equivalents at the end of the financial year .......... 67 761 67 559 78 526 75 070

5.33

ADMINISTERED ITEMS FOR THE DEPARTMENT OF PRIMARY INDUSTRIESAND RESOURCES


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Income from / Expenses to SA Government

Income — Appropriation ........................................................................... 5 609 5 805 145 352 215 870Expenses — Cash alignment ......................................................................... — — — 926


Income from other sources

Commonwealth revenues ............................................................. 132 302 133 941 133 731 128 475Intra government transfers ........................................................... 1 15 1 607 538Other grants .................................................................................. 1 015 1 053 700 1 988Fees, fines and penalties ............................................................... 22 975 23 204 14 934 29 815Sales of goods and services .......................................................... 603 588 283 243Interest revenues ........................................................................... 859 994 276 1 174Net gain or loss from disposal of assets ....................................... — — — -432Other income ................................................................................ 134 259 145 959 127 671 124 617

Total income from other sources .................................................. 292 014 305 754 279 202 286 418

Total income ................................................................................. 297 623 311 559 424 554 501 362

Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 1 456 1 442 1 209 1 228 Long service leave .................................................................... 10 10 10 19 Payroll tax ................................................................................ 25 25 25 76 Superannuation ......................................................................... 46 45 40 108 Other ......................................................................................... 56 127 11 209Supplies and services — General supplies and services .................................................. 3 236 3 535 4 050 5 457 Consultancy expenses .............................................................. 16 15 20 192Depreciation and amortisation ..................................................... 140 130 70 129Grants and subsidies ..................................................................... 148 329 152 106 276 921 345 781Intra government transfers ........................................................... 16 698 17 016 20 788 16 534Other expenses ............................................................................. 127 756 141 581 121 882 124 832

Total expenses .............................................................................. 297 768 316 032 425 026 494 565

Net result before restructure(s) ..................................................... -145 -4 473 -472 6 797

Net income from / expenses from administrative restructure(s) .. — 13 691 — 6 858

Net result after restructure(s) ........................................................ -145 9 218 -472 13 655

5.34


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 53 563 53 685 24 138 48 035Receivables ................................................................................... 359 359 986 361


Non current assets

Land and improvements ............................................................... 4 447 4 517 -58 2 231Plant and equipment ..................................................................... 2 609 2 554 1 720 1 827


Total assets ................................................................................... 60 978 61 115 26 786 52 454

Liabilities

Current liabilities

Payables ........................................................................................ 19 190 19 177 12 165 19 339Short-term borrowings ................................................................. — 37 37 650Employee benefits — Salaries and wages ................................................................... 11 11 7 17 Annual leave ............................................................................. 55 53 41 52 Long service leave .................................................................... 3 3 — 3Short-term provisions ................................................................... 1 1 — — Other current liabilities ................................................................. 229 229 102 —



Long-term employee benefits — Long service leave .................................................................... 129 99 124 69Long-term provisions ................................................................... — — — 37

Total non-current liabilities .......................................................... 129 99 124 106


Net assets ...................................................................................... 41 360 41 505 14 310 32 287

Equity

Retained earnings ......................................................................... 40 375 40 520 13 357 31 302Asset revaluation reserve ............................................................. 985 985 953 985

Total equity .................................................................................. 41 360 41 505 14 310 32 287


5.35



Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... — 985 31 302 32 287Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... — 985 31 302 32 287


Net income/expense recognised directly in equity for 2006-07 ... — — — — Net result after restructure for 2006-07 ........................................ — — 9 218 9 218

Total recognised income and expense for 2006-07 — — 9 218 9 218


Estimated balance at 30 June 2007 — 985 40 520 41 505


Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ........................................ — — -145 -145

Total recognised income and expense for 2007-08 — — -145 -145


Estimated balance at 30 June 2008 — 985 40 375 41 360

5.36



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash inflows

Intra government transfers ........................................................... 1 15 1 607 290Commonwealth receipts ............................................................... 132 302 133 941 133 731 128 475Other grants .................................................................................. 1 015 1 053 700 1 966Fees, fines and penalties ............................................................... 22 975 23 204 14 934 28 915Sales of goods and services .......................................................... 603 588 283 243Interest received ........................................................................... 859 996 278 1 158Other receipts ............................................................................... 134 259 145 959 127 671 125 040


Cash outflows

Employee payments ..................................................................... 1 561 1 617 1 263 1 602Supplies and services ................................................................... 3 239 3 537 4 057 4 284Grants and subsidies ..................................................................... 148 329 152 106 276 921 347 600Intra government transfers ........................................................... 16 698 17 016 20 788 16 146Other payments ............................................................................ 127 756 141 006 121 882 116 614


SA GOVERNMENT:

Appropriation ............................................................................... 5 609 5 805 145 352 215 870Payments — Cash alignment ......................................................................... — — — 926


Net cash provided by (+) / used in (-) operating activities ........... 40 -3 721 -355 14 785


Cash inflows

Proceeds from sale of property, plant and equipment .................. — — — 200

Cash generated from investing activities ..................................... — — — 200

Cash outflows

Purchase of property, plant and equipment .................................. 125 1 491 — 685

Cash used in investing activities .................................................. 125 1 491 — 685

Net cash provided by (+) / used in (-) investing activities ........... -125 -1 491 — -485

5.37



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash inflows

Proceeds from restructuring activities .......................................... — 11 462 — 5 602

Cash generated from financing activities ..................................... — 11 462 — 5 602

Cash outflows

Repayment of borrowings ............................................................ 37 600 600 600

Cash used in financing activities .................................................. 37 600 600 600

Net cash provided by (+) / used in (-) financing activities ........... -37 10 862 -600 5 002

Net increase (+) / decrease (-) in cash equivalents ....................... -122 5 650 -955 19 302



5.38


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 2006-07 Estimated Result and the 2007-08 Budget.

From 1 April 2007, the Office for Volunteers transferred from the Department of Primary Industries and Resources to the Attorney-General’s Department. Variations between the years are in part due to the effects of this transfer.

During 2006-07, the Planning and Development Fund was transferred from the Controlled to Administered financial statements to reflect the same presentation as the Department’s audited financial statements.

Income statement — Controlled

Operating expenditure is budgeted to significantly increase by $109.2 million, from $272.3 million in 2006-07 to $381.5 million in 2007-08. The movement is primarily due to:

• increased expenditure of $107.6 million on drought response measures. The increase is mainly reflected in movements in grants and subsidies and Intra-government transfers; offset by

• a decrease in expenditure from the functional transfer of the Office for Volunteers ($1.1 million)

Operating revenue is budgeted to increase by $89.1 million, from $129.3 million in 2006-07 to $218.4 million in 2007-08. The increase is primarily due to:

• increase in Commonwealth revenues of $84.7 million, primarily associated with the Exceptional Circumstances drought relief funding provided to the state; and

• increased revenue measures of $1.1 million associated with regulatory fees and charges.

Balance sheet — Controlled

Total Assets are budgeted to increase by $1.9 million primarily due to new capital investment and minor works during 2007-08 partially offset by higher depreciation and amortisation charges on recently acquired assets.

Total liabilities are budgeted to increase by $1.9 million. The increase is primarily due to increases in the provisions for employee benefits of $2.9 million offset by a reduction in total borrowings of $0.8 million.

Statement of changes in equity — Controlled

No major variations.

5.39

Cash flow statement — Controlled

Most of the major variations described in the Income statement also influence the Cash flow statement.

Significantly greater gross operating cash inflows and outflows are expected due to the budgeted increase of Commonwealth revenues for Exceptional Circumstances drought relief funding and its subsequent release as grant payments. Net cash provided by/used in operating activities is expected to increase by $0.4 million.

Net investing is budgeted to increase by $5.4 million in 2007-08, mainly due to variations in expenditure on the Brukunga Mine rehabilitation and Marine Innovation SA projects.

Net financing activities will decrease by $12.7 million in 2007-08, mainly due to recognising a once-off restructuring cash outflow in the 2006-07 Estimated Result of $11.5 million from the transfer of the Planning and Development Fund from the Controlled to Administered Financial statements.

Administered

Income statement — Administered Items

Total operating income and operating expenditure are budgeted to decrease by $13.9 million and $18.3 million respectively.

The major variations comprise:

• reduced Local Government Grants Commission grants expenditure ($5.2 million) with offsetting reduction in revenue of $1.5 million; and

• a reduction in revenue with offsetting returns to the Consolidated Account for changes in royalties from Minerals and Petroleum production ($13.1 million), reflecting a downward forecast in world copper prices and gas production volumes.

Balance sheet — Administered Items

Net Assets and Total Equity are budgeted to decrease by $0.1 million. There are no significant movements in any Balance sheet categories.

Statement of changes in equity — Administered Items

No major variations.

Cash flow statement – Administered

Most of the major variations described in the Income statement also influence the Cash flow statement.

The other major variation is associated with the once-off restructuring from the transfer of the Planning and Development Fund ($11.5 million) from the Controlled to Administered financial statements.

Detailed information on Administered Items is included in the following table.

5.40

Additional Information for Administered Items Department of Primary Industries and Resources

Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

CASH FLOWS FROM:

Operating Activities

Receipts

Intra-government transfers —

Outback Areas Community Development Trust ....................... 1 15 1 175 290

SA Local Government Grants Commission.............................. — — 432 —

Commonwealth receipts —

Petroleum products subsidy ...................................................... 212 208 208 249

SA Local Government Grants Commission.............................. 132 090 133 523 133 523 128 226

Outback Areas Community Development Trust ....................... — 210 — —

Other Grants —

Local Government - Taxation Equivalent Fund........................ 1 015 1 015 700 1 034

Outback Areas Community Development Trust ....................... — 38 — 932

Fees, fines and penalties —

Fisheries Licence Fees. ............................................................. 11 814 12 180 12 290 12 160

Aquaculture Licence Fees......................................................... 1 281 574 1 860 1 523

Planning Fees received on behalf of Local Government........... 580 750 550 897

Planning and Development Fund.............................................. 9 300 9 700 — 9 960

Various Industry Funds............................................................. — — 234 4 375

Sales of goods and services —

SA Local Government Grants Commission.............................. 25 25 25 26

Various Industry Funds............................................................. 578 563 258 217

Interest received—

Various Industry Funds............................................................. 182 206 206 468

Local Government - Taxation Equivalent Fund........................ 35 35 10 34


Outback Areas Community Development Trust ....................... 9 15 30 42

Planning and Development Fund.............................................. 600 600 — 570

Other receipts —

Mining Royalties....................................................................... 125 800 138 900 119 750 121 908

Native Title Agreement – Royalty ............................................ 1 376 1 342 1 342 1 442

EP Grain Rail Infrastructure Fund ............................................ 1 000 1 000 1 000 —

Various Industry Funds............................................................. 5 977 4 455 5 576 1 501


Planning and Development Fund.............................................. — 35 — 17

Total operating receipts 292 014 305 756 279 204 286 087

5.41


Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Payments

Employee payments —

Parliamentary Salaries and Electorate Expense Allowances..... 723 709 709 351



Planning and Development Fund.............................................. — — — 471

Other ......................................................................................... 18 99 8 132

Supplies and services —


Planning and Development Fund.............................................. 322 312 — 922



Grants and subsidies —

SA Water Corporation – Community Service Obligation......... — — 139 533 214 117

Regulatory Fees Paid from Fisheries Research and Development Fund.................................................................... 590 1075 713 832

Regulatory Fees Paid from Aquaculture Resource Management Fund .................................................................... 305 110 300 —

Forestry Community Service Obligation payment.................... 2 731 2 664 — —


Petroleum Products Subsidy ..................................................... 212 208 208 249

Local Government - Taxation Equivalent Fund........................ 1 015 1 015 700 1 500

SA Local Government Grants Commission.............................. 131 075 136 289 132 595 123 519


Planning and Development Fund.............................................. 8 131 7 126 — 4 241

Intra-Government Transfers —

Regulatory Fees Transferred from Fisheries Research and Development Fund.................................................................... 11 224 11 264 11 577 10 194

Regulatory Fees Transferred from Aquaculture Resource Management Fund .................................................................... 1 317 991 1 663 2 121

Eyre Peninsula Rail Infrastructure. ........................................... 900 900 900 —

Forestry Community Service Obligation Payment.................... 350 700 3 268 —

Planning and Development Fund.............................................. 1 447 1 431 — 710

West Beach Trust...................................................................... 801 779 898 915

Various Industry Funds............................................................. 617 900 876 1 151

Outback Areas Community Development Trust ....................... 42 51 — 101

Office for State/Local Government Relations........................... — — 678 —

SA Local Government Grants Commission.............................. — — 928 954

5.42


Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Other payment—

Receipts Paid to Consolidated Account .................................... 125 800 138 900 119 750 114 257

Native Title Agreement – Royalty ............................................ 1 376 1 342 1 342 1 450

Planning Fees received on behalf of Local Government........... 580 750 550 897

Outback Areas Community Development Trust ....................... — 14 240 5

Planning and Development Fund.............................................. — — — 5

Total operating payments 297 583 315 282 424 911 486 246

SA Government Appropriation —

SA Water Corporation .............................................................. — — 139 533 214 117

Parliamentary Salaries and Electorate Expense Allowances..... 723 709 709 283

Forestry CSO Payment ............................................................. 3 098 3 373 3 268 —

Office for State/Local Government Relations........................... 715 678 678 —

West Beach Trust...................................................................... 801 779 898 634


SA Local Government Grants Commission.............................. — — — 377

Payments —

Cash alignment ......................................................................... — — — 926

Net cash provided by SA Government 5 609 5 805 145 352 214 944

Net cash provided by (+)/used in (-) operating activities 40 -3 721 -355 14 785

Investing activities

Receipts

Proceeds from sale of property, plant & equipment.................. — — — 200

Total investing receipts — — — 200

Payments

Purchase of property, plant and equipment —

Planning and Development Fund.............................................. — 1 431 — 590

Outback Areas Community Development Trust ....................... 125 60 — 95

Total investing payments 125 1 491 — 685

Net cash provided by investing activities -125 -1 491 — -485

Financing activities

Receipts

Net cash from restructure —

Transferred to DTEI.................................................................. — — — -4 439

Transferred from DTEI. ............................................................ — 11 462 — 10 041

Total financing receipts — 11 462 — 5 062

5.43


Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Payments

Repayment of Borrowings ........................................................ 37 600 600 600

Total financing payments 37 600 600 600

Net cash provided by financing activities -37 10 862 -600 5 002

Net Increase (+) / decrease (-) in cash held -122 5 650 -955 19 302

Opening cash balance at beginning of the financial year 53 685 48 035 25 093 28 733

Closing cash balance at the end of financial year 53 563 53 685 24 138 48 035

5.44

5.45

Portfolio: Transport, Energy and Infrastructure

Minister for Transport Minister for Infrastructure Minister for Energy Minister for Finance Minister for Road Safety

TABLE OF CONTENTS

PORTFOLIO SUMMARY


Portfolio Net Cost of Services Summary ..............................................................................6.3

Investing Payments Summary ...............................................................................................6.3

Portfolio Financial Statements

Income statement......................................................................................................6.4

Balance sheet............................................................................................................6.5

Statement of changes in equity.................................................................................6.7

Cash flow statement .................................................................................................6.8



South Australia’s Strategic Plan contribution.......................................................................6.11

Agency Summaries

Department for Transport, Energy and Infrastructure...........................................................6.14

TransAdelaide .......................................................................................................................6.76

PORTFOLIO: TRANSPORT, ENERGY AND INFRASTRUCTURE


Minister Agency Programs Sub-Programs 1. Policy and Planning Nil

2. Transport Infrastructure Services

2.1 Operating and Maintaining Roads

2.2 Operating and Maintaining the Marine System

2.3 Managing Rail and Public Transport Infrastructure Assets

3. Transport Safety and Regulation Services

3.1 Driver and Vehicle Regulation

3.2 Transport Safety Regulation

4. Public Transport Services

4.1 Asset Management 4.2 Passenger Services

5. Energy Policy and Regulation

5.1 Energy Policy and Programs

5.2 Technical and Safety Regulation

6. State Infrastructure Facilitation

Nil

7. Information and Communication Technology Services

7.1 Information and Communication Technology Coordination

7.2 Delivery of Information and Communication Technology Services

7.3 Parliamentary Network Support Services

8. Building Management 8.1 Facilities Services 8.2 Project Services 8.3 Strategic Services 8.4 Commercial Property

Management 8.5 Government Employee

Residential Property Management

Department for Transport, Energy and Infrastructure

9. Land Services Nil

The Hon. Patrick Conlon Minister for Transport Minister for Infrastructure Minister for Energy

TransAdelaide 1. Operate and Maintain Metropolitan Rail Passenger Transport Services

Nil

The Hon. Michael Wright Minister for Finance


10. Service SA Nil

The Hon. Carmel Zollo Minister for Road Safety


11. Road Safety Policy, Planning and Services

11.1 Safer Roads 11.2 Safety and Community

6.1

Statutory Authorities

The Hon. Patrick Conlon, Minister for Transport, is responsible for the following Statutory Authority:

• TransAdelaide

Administered items

In addition to the above responsibilities, the Portfolio will administer the following items on behalf of Minister(s) for 2007-08:

• Emergency Services Levy Receipts

• Expiation Receipts including the Victims of Crime Levy

• Firearm Receipts

• Flood Mitigation

• Hospital Fund — Contribution

• Land Services Group Trust Funds

• Lincoln Cove Marina

• Major Administered Projects

• Metropolitan (Woodville, Henley and Grange) Drainage Scheme

• Minister’s Salary

• Motor Accident Commission Receipts

• Passenger Transport Research and Development Fund

• Photovoltaic Rebate Program

• Registration and Licensing Collections and Disbursements

• Registrar-General and Surveyor-General Statutory Act Revenues

• Renewable Remote Power Generation Program

• Service SA Disbursements

• South Western Suburbs Drainage Scheme

• Special Act Salaries for Valuer-General

• Stamp Duties Receipts

6.2

Statutes

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

PORTFOLIO NET COST OF SERVICES SUMMARY

2007-08Budget


2006-07 Budget

2005-06 Actual

Agency $000 $000 $000 $000 Department for Transport, Energy and Infrastructure(a) ........................................... 148 523(b) 226 909 213 290 298 306

TransAdelaide ............................................ -78 905(c) 407 140 -23 030

Total(d) 69 618 227 316 213 430 275 276

(a) Net cost of services reported here is based on the current program structure for the agency. Reconciliation of these amounts to the net cost of providing services (as contained in the financial statements) is contained in the program net cost of services summary located at the beginning of the Department for Transport, Energy and Infrastructure (DTEI) chapter.

(b) The reduction in the department’s net cost of services between 2006-07 and 2007-08 is primarily due to an increase in Commonwealth revenue for investing projects, including the Northern Expressway and the upgrade of the Sturt Highway.

(c) The reduction in TransAdelaide’s net cost of services between 2006-07 and 2007-08 is primarily due to a once-off revenue in 2007-08 resulting from the budgeted write-off of TransAdelaide’s debt.

(d) The net cost of services includes transactions between DTEI and TransAdelaide. These transactions are eliminated within the portfolio’s financial statements.

INVESTING PAYMENTS SUMMARY

2007-08Budget


2006-07 Budget

2005-06 Actual

Agency $000 $000 $000 $000 Department for Transport, Energy and Infrastructure(a) ........................................... 472 221 409 438 385 517 293 955

TransAdelaide(a) ......................................... — 5 680 3 240 26 674

Total 472 221 415 118 388 757 320 629 (a) Investing payments is based on the agency structure from 1 January 2008 and includes costs for previous years associated with projects

and programs transferred from DAIS and TransAdelaide. Reconciliation of these amounts to the Investing Activities included in the Cash flow statement is contained in the detailed Investing Payments Summary located in the agency sections for the Department for Transport, Energy and Infrastructure (DTEI) and TransAdelaide.

6.3

TRANSPORT, ENERGY AND INFRASTRUCTURE


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 198 419 169 124 122 895 129 268 Long service leave .................................................................... 6 086 4 727 4 007 5 055 Payroll tax ................................................................................ 11 252 9 447 4 930 8 170 Superannuation ......................................................................... 21 620 18 244 12 406 13 460 Other ......................................................................................... 962 713 39 4 620Supplies and services — General supplies and services .................................................. 570 468 475 021 350 897 375 502 Consultancy expenses .............................................................. 883 865 308 140Depreciation and amortisation ..................................................... 210 687 187 411 165 207 159 650Borrowing costs ............................................................................ 8 567 9 888 15 102 9 948Grants and subsidies ..................................................................... 46 975 36 824 42 558 31 349Intra government transfers ........................................................... 51 426 48 597 45 850 34 854Other expenses ............................................................................. 13 381 13 537 10 934 9 147

Total expenses .............................................................................. 1 140 726 974 398 775 133 781 163

Income

Commonwealth revenues ............................................................. 171 380 115 447 113 758 91 602Intra government transfers ........................................................... 18 127 12 540 4 967 3 056Other grants .................................................................................. 43 745 40 752 41 252 38 213Fees, fines and penalties ............................................................... 317 135 290 378 284 987 271 352Sales of goods and services .......................................................... 408 908 276 092 91 575 102 956Interest revenues ........................................................................... 10 124 10 366 7 264 5 644Net gain or loss from disposal of assets ....................................... 275 233 — 93Resources received free of charge ................................................ — 250 250 — Other income ................................................................................ 89 713 22 930 20 197 18 617

Total income ................................................................................. 1 059 407 768 988 564 250 531 533



Income — Appropriation ........................................................................... 392 893 367 907 347 907 376 357 Other income ............................................................................ — 15 326 — 4 395Expenses — Tax equivalent .......................................................................... 4 884 3 449 768 10 531 Cash alignment ......................................................................... — — 56 440 — Other ......................................................................................... 22 929 27 550 5 401 34 757


Net result before restructure(s) ..................................................... 283 761 146 824 74 415 85 834

Net income from / expenses from administrative restructure(s) .. — 138 884 — 6 260

Net result after restructure(s) ........................................................ 283 761 285 708 74 415 92 094

6.4


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 239 651 335 305 274 605 355 706Receivables ................................................................................... 161 871 155 685 35 177 36 559Inventories .................................................................................... 21 539 21 539 11 642 21 366Other current assets ...................................................................... 29 157 29 157 12 034 11 130


Non current assets

Financial assets ............................................................................. 10 778 10 778 200 10 778Land and improvements ............................................................... 1 232 961 1 196 137 591 591 653 346Plant and equipment ..................................................................... 5 915 846 5 663 825 5 406 103 5 388 777Heritage assets .............................................................................. 12 224 12 224 — — Intangible assets ........................................................................... 14 853 14 867 — 9 267Other non-current assets ............................................................... 974 974 19 628 —

Total non-current assets ............................................................... 7 187 636 6 898 805 6 017 522 6 062 168

Total assets ................................................................................... 7 639 854 7 440 491 6 350 980 6 486 929

Liabilities

Current liabilities

Payables ........................................................................................ 131 559 131 464 88 698 74 886Short-term borrowings ................................................................. 3 723 3 722 5 629 — Employee benefits — Salaries and wages ................................................................... 4 202 4 237 1 986 3 347 Annual leave ............................................................................. 11 976 11 773 11 312 12 733 Long service leave .................................................................... 4 854 4 480 2 872 2 866 Other ......................................................................................... 926 926 1 425 926Short-term provisions ................................................................... 11 398 11 324 5 008 12 742Other current liabilities ................................................................. 20 866 34 290 16 974 14 549



Long-term borrowings .................................................................. 101 354 172 106 111 955 127 198Long-term employee benefits — Annual leave ............................................................................. 1 519 1 519 1 476 1 519 Long service leave .................................................................... 71 657 65 648 38 535 42 387 Other ......................................................................................... — — 72 — Long-term provisions ................................................................... 18 997 18 939 11 698 18 191Other non-current liabilities ......................................................... 66 242 91 400 114 877 102 700



Net assets ...................................................................................... 7 190 581 6 888 663 5 938 463 6 072 885

6.5


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000

Equity

Contributed capital ....................................................................... 359 544 382 148 232 941 213 257Retained earnings ......................................................................... 4 854 941 4 096 671 3 920 463 3 810 963Asset revaluation reserve ............................................................. 1 961 863 2 395 611 1 785 059 2 048 665Other reserves ............................................................................... 14 233 14 233 — —

Total equity .................................................................................. 7 190 581 6 888 663 5 938 463 6 072 885


6.6



Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... 213 257 2 048 665 3 810 963 6 072 885Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... 213 257 2 048 665 3 810 963 6 072 885

Net gain/loss on revaluation of property, plant and equipment during 2006-07 ............................................................................ — 38 561 — 38 561Net changes in reserves ................................................................ 178 832 308 385 14 233 501 450

Net income/expense recognised directly in equity for 2006-07 ... 178 832 346 946 14 233 540 011Net result after restructure for 2006-07 ........................................ — — 285 708 285 708

Total recognised income and expense for 2006-07 178 832 346 946 299 941 825 719

Equity contributions from SA Government ................................. 16 746 — — 16 746Repayment of equity contributions from SA Government .......... -26 687 — — -26 687

Estimated balance at 30 June 2007 382 148 2 395 611 4 110 904 6 888 663

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ............................................................................ — -433 748 — -433 748Net changes in reserves ................................................................ — — 474 509 474 509

Net income/expense recognised directly in equity for 2007-08 ... — -433 748 474 509 40 761Net result after restructure for 2007-08 ........................................ — — 283 761 283 761

Total recognised income and expense for 2007-08 — -433 748 758 270 324 522



6.7



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Employee payments ..................................................................... 231 805 198 684 144 094 156 996Supplies and services ................................................................... 577 434 451 844 355 830 380 372Borrowing costs ............................................................................ 8 567 9 929 15 102 9 984Grants and subsidies ..................................................................... 40 800 31 022 37 957 31 747Net GST paid ................................................................................ — — — 12 039Intra government transfers ........................................................... 51 426 48 597 45 850 34 854Other payments ............................................................................ 13 133 11 160 9 705 16 944


Cash inflows

Intra government transfers ........................................................... 18 127 12 540 4 967 3 056Commonwealth receipts ............................................................... 171 380 115 447 113 758 91 602Other grants .................................................................................. 18 587 29 452 36 952 128 258Fees, fines and penalties ............................................................... 317 135 290 378 284 987 271 352Sales of goods and services .......................................................... 395 926 285 583 91 620 107 092Interest received ........................................................................... 10 124 10 366 7 264 5 630Dividends received ....................................................................... — — — 971Net GST received ......................................................................... — — — 16 898Other receipts ............................................................................... 22 480 22 387 20 150 19 554


SA GOVERNMENT:

Appropriation ............................................................................... 392 893 367 907 347 907 376 357Other receipts ............................................................................... — 15 326 — 4 395Payments — Tax equivalents ........................................................................ 4 884 3 825 768 988 Cash alignment ......................................................................... — — 56 440 — Other ......................................................................................... 22 929 27 550 5 401 34 757




Cash outflows

Purchase of property, plant and equipment .................................. 472 221 407 429 365 741 234 248Advances paid .............................................................................. 6 519 5 955 — —


Cash inflows

Proceeds from sale of property, plant and equipment .................. 13 740 24 588 21 186 19 284Repayment of advances ................................................................ 18 — — —



6.8



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Repayment of borrowings ............................................................ 2 690 5 381 5 381 7 015Repayment of SA Government contributed capital ..................... 35 604 26 687 — — Finance lease payments ................................................................ 1 052 836 — 300


Cash inflows

Capital contributions from SA Government ................................ 13 000 16 746 16 746 20 000Proceeds from restructuring activities .......................................... — 17 778 — 165

Cash generated from financing activities ..................................... 13 000 34 524 16 746 20 165

Net cash provided by (+) / used in (-) financing activities ........... -26 346 1 620 11 365 12 850

Net increase (+) / decrease (-) in cash equivalents ....................... -95 654 -20 401 -96 732 144 370



6.9

WORKFORCE SUMMARY

FTEs as at 30 June

Agency 2007-08


Estimated result 2005-06Actual

Department for Transport, Energy and Infrastructure(a) ........................................... 2 989.3 2 955.5 2 001.6

TransAdelaide ............................................ 548.0 548.0 523.4

Total 3 537.3 3 503.5 2 525.0 (a) The 2006-07 Estimated Result and the 2007-08 Budget Estimate include employees associated with the functional responsibilities

transferred from the Department for Administrative and Information Services to the Department for Transport, Energy and Infrastructure.


2007-08 Budget

Cost of provision Minister $000 FTE The Hon. Patrick Conlon 1 526 10.0

6.10

South Australia’s Strategic Plan contribution

South Australia’s Strategic Plan Sub-Programs (Programs 1–6)

Objectives Targets

1.0

Polic

y an

d Pl

anni

ng

2.1

Ope

ratin

g an

d M

aint

aini

ng R

oads

2.2

Ope

ratin

g an

d M

aint

aini

ng th

e M

arin

e Sy

stem

2.3

Man

agin

g R

ail a

nd P

ublic

Tra

nspo

rt In

fras

truct

ure

Ass

ets

3.1

Driv

er a

nd V

ehic

le R

egul

atio

n

3.2

Tran

spor

t Saf

ety

Reg

ulat

ion

4.1

Ass

et M

anag

emen

t

4.2

Pass

enge

r Ser

vice

s

5.1

Ener

gy P

olic

y an

d Pr

ogra

ms

5.2

Tech

nica

l and

Saf

ety

Reg

ulat

ion

6.0

Stat

e In

fras

truct

ure

Faci

litat

ion

1.2 Competitive Business Climate

1.7 Performance in the Public Sector — customer and client satisfaction with government services

1.8 Performance in the Public Sector — government decision making

1.9 Performance in the Public Sector — administrative efficiency

1.14 Total Exports

1.15 Tourism Industry

Growing Prosperity

1.21 Strategic Infrastructure

2.2 Healthy Weight

2.3 Sport and Recreation

2.4 Healthy South Australians

2.8 Statewide Crime Rates

2.9 Road Safety — Fatalities

Improving Wellbeing

2.10 Road Safety — Serious Injuries

3.4 Marine Biodiversity

3.5 Greenhouse Gas Emissions Reduction

3.6 Use of Public Transport

3.7 Ecological Footprint

3.12 Renewable Energy

3.13 Energy Efficiency — Government Buildings

Attaining Sustainability

3.14 Energy Efficiency — Dwellings

Fostering Creativity & Innovation

4.8 Broadband Usage

6.11

South Australia’s Strategic Plan Sub-Programs (Programs 7–11)

Objectives Targets

7.1

Info

rmat

ion

and

Com

mun

icat

ion

Tech

nolo

gy C

oord

inat

ion

7.2

Del

iver

y of

Info

rmat

ion

and

Com

mun

icat

ion

Tech

nolo

gy S

ervi

ces

7.3

Parli

amen

tary

Net

wor

k Su

ppor

t Ser

vice

s

8.1

Faci

litie

s Ser

vice

s

8.2

Proj

ect S

ervi

ces

8.3

Stra

tegi

c Se

rvic

es

8.4

Com

mer

cial

Pro

perty

Man

agem

ent

8.5

Gov

ernm

ent E

mpl

oyee

Res

iden

tial P

rope

rty M

anag

emen

t

9.0

Land

Ser

vice

s

10.0

Ser

vice

SA

11.1

Saf

er R

oads

11.2

Saf

ety

and

Com

mun

ity

1.2 Competitive Business Climate

1.6 Labour Productivity

1.7 Performance in the Public Sector — customer and client satisfaction with government services

1.8 Performance in the Public Sector — government decision making

1.9 Performance in the Public Sector — administrative efficiency

1.14 Total Exports

1.15 Tourism Industry

Growing Prosperity

1.21 Strategic Infrastructure

2.2 Healthy Weight

2.3 Sport and Recreation

2.4 Healthy South Australians

2.8 Statewide Crime Rates

2.9 Road Safety — Fatalities

Improving Wellbeing

2.10 Road Safety — Serious Injuries

3.4 Marine Biodiversity

3.5 Greenhouse Gas Emissions Reduction

3.6 Use of Public Transport

3.7 Ecological Footprint

3.12 Renewable Energy

3.13 Energy Efficiency — Government Buildings

Attaining Sustainability

3.14 Energy Efficiency — Dwellings

Fostering Creativity & Innovation

4.8 Broadband Usage

6.12

6.13

TABLE OF CONTENTS

AGENCY: DEPARTMENT FOR TRANSPORT, ENERGY AND INFRASTRUCTURE

Objectives........................................................................................................................................6.15





1. Policy and Planning .......................................................................................................6.24

2. Transport Infrastructure Services...................................................................................6.26

3. Transport Safety and Regulation Services .....................................................................6.30

4. Public Transport Services ..............................................................................................6.33

5. Energy Policy and Regulation .......................................................................................6.36

6. State Infrastructure Facilitation......................................................................................6.39

7. Information and Communication Technology Services ................................................6.41

8. Building Management....................................................................................................6.44

9. Land Services.................................................................................................................6.50

10. Service SA .....................................................................................................................6.52

11. Road Safety Policy, Planning and Services ...................................................................6.54



Balance sheet.........................................................................................................................6.57








6.14


Objectives

The Department for Transport, Energy and Infrastructure (DTEI) has diverse responsibilities in relation to transport systems and services, energy policy and regulation, and infrastructure planning for South Australia.

The goal of the department is to ensure that South Australia’s future needs and demands for the safe and efficient movement of people and freight, and safe and efficient energy, transport and other infrastructure, are met in an ecologically sustainable and cost effective way.

The department’s goal is achieved by the following objectives:

• identifying strategic infrastructure priorities for the state;

• coordinating infrastructure and land use planning and development across government;

• facilitating timely delivery of key projects that support the economic and social development of the state, including the development of South Australia’s regions;

• providing advice on major energy market reforms and strategic issues relating to infrastructure requirements;

• delivering the government’s policy on sustainable energy;

• managing and controlling state-owned transport, property, building, and information and communication technology (ICT) assets;

• providing leadership in the development of transport options;

• investing in the integrated transport solutions that increase the safety, effectiveness and efficiency of the state’s transport infrastructure and services for all users;

• developing and implementing road safety policy and measures aimed at improving road user safety, roadside environment and vehicle safety;

• managing traffic on the arterial road network;

• regulating the access, behaviour and security of transport system users;

• providing improved public transport services;

• conducting an annual review, audit and approval of energy industry safety and technical management plans and promotion of safety;

• increasing the overall efficiency and effectiveness of the government’s current and future ICT investments;

• providing statutory services and information to the community in relation to land titling, survey, valuation and advice on land administration issues;

6.15

• providing government services and information to the community through a choice of integrated online, phone and face-to-face delivery channels; and

• ensuring that we have the right people with the right skills in the right jobs to deliver projects and programs that fulfil the department’s contribution to the targets of South Australia’s Strategic Plan.

6.16


Targets 2007-08 Highlights 2006-07 Transport and Infrastructure

• Play a lead role in progressing national policy reforms under the Council of Australian Governments (COAG) to promote the efficient provision and use of infrastructure

• Implement national transport reforms for B-triples and performance based standards networks

• Monitor the implementation of the Strategic Infrastructure Plan for South Australia

• Effective management of major transport projects including: − South Road Upgrade − Bakewell Underpass − Port River Expressway Bridges − Northern Expressway − Connect Light Rail to City West Campus − Marion Interchange − Upgrade of Marine Infrastructure − Glenelg Tram – South Road Overpass − Eyre Peninsula Grain Logistics Transport Plan

• Effective management of non transport major infrastructure projects and initiatives including: − Adelaide Airport developments − Operation of the Stormwater Management Authority − Port Adelaide and Outer Harbor developments − Rapid Bay Jetty replacement − State Aquatic Centre and GP Plus Health Care Centre

• Complete two overtaking lanes on the Riddoch Highway (Nangwarry) and one on the Noarlunga – Victor Harbor Road (Mt Compass)

• Complete construction of the second replacement ferry for River Murray crossings

• Complete Elder Smith Road, Mawson Lakes Development (Main Street to Main North Road)

• Complete, as part of the Rural Roads Improvement Program, the upgrade works on the Marree – Lyndhurst Road and pre-construction activities on the Oodnadatta – Hamilton and Blinman – Wilpena Roads

• Commence construction on the duplication of the Daveyston–Greenock and Gawler–Scott road sections of the Sturt Highway upgrade

• Commence procurement of the Road Condition Sign Automation project which will allow for remote opening and closing of roads

• Continue submissions for Commonwealth funding under AusLink 2

• Further detailed planning for the upgrading of North-South Metropolitan Road Corridor

• Further implementation of the Heavy Vehicle Access Framework, including gazettal of commodity freight routes

• Continue increase of public transport patronage by targeted service changes

• Provide the foundation for an integrated public transport network to meet South Australia’s Strategic Plan targets by commencing a significant rail track upgrade on the Adelaide Metropolitan Passenger Rail Network

• Acquire 43 new air conditioned accessible buses • Identify best opportunities for transit oriented development • Draft new transport security legislation

Transport and Infrastructure

• Developed proposals for policy and regulatory reform in transport, energy and infrastructure in collaboration with other jurisdictions which were agreed by COAG in April 2007

• Prepared the South Australian Government five-yearly infrastructure report to COAG

• Completed South Australia’s component of AusLink national corridor studies

• Commenced development of regional freight strategies focusing on higher growth regional areas

• Significantly contributed to the Commonwealth review on urban congestion

• Effectively managed major transport projects including: − South Road/ Anzac Highway Underpass − Bakewell Underpass − Northern Expressway − Port River Expressway Bridges − LeFevre Peninsula Transport Corridor Upgrade − Connect Light Rail to City West Campus − South Road Upgrade (Grange to Torrens Road)

• Upgrade works advanced on the Eyre Peninsula Grain Logistics Transport Plan

• Completed works on a number of roads in the state’s outback rural area under the Outback Roads Minor Works Program, including: − 31 km section of the Tea Tree—Yunta Road − 33 km section of the Oodnadatta Track—Coward Springs

to Marree − 16 km section of the Birdsville Track—Clayton Station to

Lake Harry • Constructed new Beachport Jetty sea wall • Undertook, as part of the state and AusLink Black Spot

programs, infrastructure safety improvements at 26 rural and 11 urban locations on the state network

• Completed as part of the Roads to Recovery program: − construction of town streets in Yunta, Copley, Marree and

Parachilna − upgrade of streets in Mannahill − rehabilitation of 48 kms on Strzelecki Track

• Completed construction of a roundabout at Waterloo Corner Road – Heaslip Road and the upgrade of the Mill Corner, Loxton

• Undertook 18 kms of widening and pavement strengthening of the Penola to Clay Wells Road

• Undertook work on service design and infrastructure planning for future public transport needs

• Achieved public transport patronage growth of 2.6 per cent • Increased the number of vouchers and levels of subsidies under

the South Australian Transport Subsidy Scheme • Conducted the public transport customer satisfaction survey • Invested in CCTV on public transport infrastructure achieving

improvements in customer safety and security • Completed the ‘Plan for Freight Transport for the

SouthEast /Limestone Coast Region of South Australia’

Energy

• As lead legislator, achieved considerable progress with advancing agreed changes to energy legislation arising from the Ministerial Council on Energy’s reform program

6.17

Targets 2007-08 Highlights 2006-07 Energy

• Progress as lead legislator agreed changes to energy legislation and further improvements to energy efficiency, arising from the Ministerial Council on Energy’s reform program

• Progress the National Emissions Trading Scheme, in conjunction with the other States and Territories, for commencement in 2010 in line with the February 2007 commitment of the Council of the Australian Federation

• Deliver safe, reliable, affordable and sustainable electricity to 2600 customers in 13 remote townships

• Deliver 2500 solar hot water rebates • Process and approve at least 375 applications under the

Photovoltaic Rebate program Strategic and Operational Information Communications Technology (ICT)

• Progress implementation of the ICT Strategic Plan • Develop a business case for the use of handheld wireless

mobile devices across government • Support of the Reduction in Red Tape initiatives to increase the

efficiency of government • Expand the Regional Broadband Infrastructure program to

Mt Gambier and other regional centers, including Port Pirie and Berri

• Enable service continuity for government agencies, by managing the transition of the government’s ICT arrangements through the effective disengagement of current contracts and implementation of future ICT procurements

Lands and Service SA

• Implement electronic plan lodgement in South Australia • Implement the second phase of an electronic document

lodgement and registration process that will see automatic propagation of title data into on-line document forms

• Transfer management of the state’s Digital Cadastral Data Base and determine a new operating environment

Safety and Regulation

• Implement new road safety initiatives relating to infrastructure, vehicle safety, speed and road user behaviour

• Extend shoulder sealing and develop a new rural road safety program

• Continue to develop Adelaide and regional bicycle networks in conjunction with local councils

• Implement legislation aimed at reducing the number of unregistered/uninsured vehicles being used on the road network

• Implement proof of licence disqualification service legislation reducing the incidence of persons avoiding licence disqualifications

• Implement the new vehicle registration data base and new e-initiatives relating to licence renewals

Building Management

• Lead the development of a comprehensive SA Office Accommodation Strategic Plan for the Adelaide CBD and develop related agency specific office accommodation plans

• Establish a framework consistent with South Australia’s Strategic Plan and the SA Greenhouse Strategy for energy savings and Ecologically Sustainable Development in government office accommodation and housing

• Develop a model for monitoring building construction industry capacity and lead a task force addressing the need to quickly escalate industry capacity to address state infrastructure development programs, particularly the BHP Billiton Olympic Dam expansion

• Provided safe, reliable and affordable electricity supplies to 2600 customers in 13 communities in rural and remote South Australia through the Remote Areas Energy Supplies scheme

• Provided an estimated 2200 solar hot water rebates that will result in approximately 6000 tonnes of greenhouse emissions being saved

• Approved approximately 420 rebates under the Photovoltaic Rebate program valued at $1.7m. This will deliver a total installed capacity of 675 kW that will reduce CO2 emissions by over 1000 tonnes per annum

Strategic and Operational Information Communication Technology (ICT)

• Published the South Australian Government ICT Strategic Plan • Implemented the eProjects Panel procurement mechanism for

ICT projects under $700 000 • Conducted a government-wide baseline study of business

critical applications • Completed the Government Radio Network (GRN) upgrade • Completed, through the Broadband Project, upgrades in

Port Augusta, Port Lincoln and Whyalla Lands and Service SA

• Upgraded the Service SA website www.service.sa.gov.au • Rolled out the Office of Business and Consumer Affairs

services at Kadina and Gawler Service SA Customer Service Centres

• Provided the remote community of Watarru in the APY Lands with a range of services through Service SA

• Implemented the first phase of an electronic document lodgement and registration system with the Lands Titles Office

• Implemented a web based property location browser to significantly improve customer ability to perform online property searches

Safety and Regulation

• Achieved record low annual road fatality toll of 117 • Implemented, in consultation with South Australia Police and

the Heavy Vehicle Industry, compliance training for the Road Traffic Act 1961

• Developed State Oil Spill Investigation plan between Environment Protection Authority and DTEI

• Introduced the regression component of the Graduated Licensing Scheme for novice drivers

• Continued to develop two cycle paths – from Willunga to Marino and along the Glenelg Tram Line

• Undertook, in conjunction with local councils, 33 cycling safety projects resulting in an additional 8 km of shared use path and 25 km of bicycle lanes

Building Management

• Managed 350 commercial leases covering a total area of almost 300 000m² and 62 commercial properties with a combined total area of over 180 000m² and prepared an across-government strategy to achieve savings in office accommodation

• Completed the review of consolidated reporting on across government asbestos management activities

• Managed over 350 major building projects with a combined value of $1 200 million with highlights being the Torrens Valley Institute of TAFE Gilles Plains Campus Veterinary and Applied Science, Flinders Medical Centre, Margaret Tobin Mental Health Centre, Repatriation General Hospital Acute Mental Health Unit, Port Augusta Courts Complex and the SA Museum North Wing Pacific Cultures Gallery

6.18



2007-08Budget


2006-07 Budget

2005-06Actual

Program $000 $000 $000 $000 1. Policy and Planning.......................................... 17 068 15 560 14 927 18 718 2. Transport Infrastructure Services ..................... 117 432 149 813 145 054 237 094 3. Transport Safety and Regulation Services........ 20 297 -230 298 -224 624 -213 313 4. Public Transport Services................................ 171 949 189 473 190 544 189 136 5. Energy Policy and Regulation .......................... 14 541 15 204 14 198 18 694 6. State Infrastructure Facilitation ........................ 8 065 16 024 22 239 18 046 7. Information and Communication

Technology Services ......................................... 3 137 12 810 9 276 18 242 8. Building Management...................................... -5 196 -7 258 -15 579 -8 225 9. Land Services................................................... 11 063 11 443 4 881 14 416 10. Service SA ....................................................... -259 029 2 819 1 598 5 498 11. Road Safety Policy, Planning and Services...... 49 196 51 319 50 776 —

Total 148 523 226 909 213 290 298 306


Less: Net cost of programs/functions transferred in:

Information and Communication Technology Services............................................................ — -6 440 7 561 17 184

Building Management...................................... — 5 147 -15 579 -8 225

Land Services................................................... — 15 126 4 881 14 416

Service SA ....................................................... — 3 028 1 598 5 498


148 523 210 048 214 829 269 433

6.19


2007-08Budget


2006-07 Budget

2005-06Actual

Investments $000 $000 $000 $000

New Works ATTAINING SUSTAINABILITY

Rail Revitalisation......................................... 23 566 — — — Relocation of Rail Yards............................... 2 100 — — — State and Public Safety Communications Infrastructure................................................. 1 638 — — — Replacement Fare Collection System (Public Transport) ........................................ 400 — — —

BUILDING COMMUNITIES Replacement and Upgrade of Government ... 8 000 — — — Rural Road Safety Program .......................... 4 368 — — —

GROWING PROSPERITY Glenelg Tram Crossing Project ..................... 7 000 — — — Green Triangle Railway ................................ 10 000 — — — Broadband Strategy....................................... 2 596 — — — Rural Freight Improvements ......................... 5 000 — — — Land Services Business Reform.................... 1 738 — — — Torrens Building - Stage 2 ............................ 1 728 — — — Marine Infrastructure - A Safe Marine Transport System .......................................... 1 000 — — — e-business Enhancements.............................. 2 150 — — — AusLink 2 investment projects...................... 900 — — —

IMPROVING WELLBEING Increased detection of unregistered / uninsured vehicles......................................... 600 — — —

Total New Works 72 784 — — —

Works in Progress ATTAINING SUSTAINABILITY

Bus Fleet Replacement Program................... 17 357 20 229 21 160 21 107 Connect Light Rail to City West Campus ..... 5 000 24 200 24 200 — Disability Discrimination Act Compliance ... 5 843 600 2 700 — Marion Interchange ....................................... 2 790 3 543 5 500 412 Public Transport Infrastructure Upgrade....... 862 525 525 — Adelaide Light Rail....................................... — 14 281 6 500 37 421 Tram Related Infrastructure Assets Transfer......................................................... — 1 414 1 414 9 183 Safe Railway Pedestrian Crossings ............... 1 463 2 602 2 700 331 Upgrade/replacement of bridges on the TransAdelaide rail network........................... 794 1 420 2 221 1 462 Replacement of rail track points and crossings ....................................................... 486 3 241 3 465 1 374 Connect Light Rail to Adelaide Railway Station ........................................................... — — — 1 159 Public Transport Infrastructure Upgrade....... — — — 855 Light Rail Extension to Brougham Place ...... — — — 251

6.20

2007-08Budget


2006-07 Budget

2005-06Actual

Investments $000 $000 $000 $000 BUILDING COMMUNITIES

Flood damage to roads .................................. 23 500 6 000 — — Overtaking Lanes Program ........................... 7 400 3 698 3 825 3 202 Rapid Bay Jetty ............................................. 3 400 500 — — Rural Road Improvements ............................ 2 000 600 600 — Shoulder Sealing Program............................. 7 208 6 545 7 600 761 Port Bonython ............................................... — 625 — —

GROWING PROSPERITY Northern Expressway.................................... 75 400 16 500 14 200 6 085 AusLink Programs (excluding Port River & Northern Expressways) ............................ 23 240 18 220 15 220 10 787

Upgrading the Sturt Highway ....................... 30 000 6 000 10 000 — South Road Underpass of Anzac Highway ... 42 855 49 000 40 000 6 058 Port River Expressway (Road and Rail Bridge) ......................................................... 30 453 87 003 85 500 49 555 South Road Upgrade, Grange Road to Torrens Road................................................. 28 482 9 000 19 400 8 057 Bakewell Underpass (includes AusLink funded rail realignment)(a) ............................ 9 253 29 000 27 600 4 887 Long Life Roads ........................................... 13 000 7 232 7 000 4 768 Mawson Lakes Development(b) .................... 2 464 8 178 8 178 18 820 Automated Torrens Lands Title Administration System (ATLAS) - Stage 3 .. 2 000 1 500 1 500 — Education Centre - Base Building Works ..... 200 700 — 1 733 Old Stock Exchange Building....................... — 5 000 — — Carnegie Mellon University - Torrens Building ........................................................ — 355 355 3 139 Facilities Management Information System.. — 177 177 — Parliamentary Network Support Group......... — — — 16 Government Radio Network ......................... — 3 558 2 840 4 815 Purchase of Wakefield House from South Australian Asset Management Corporation (SAAMC) ................................ — — — 13 543

Automated Torrens Lands Title Administration System (ATLAS) - Stage 2 .. — 495 — 74 Transport Regulation and User Management Processing System................... — 3 401 3 401 4 782 Waterloo Corner Road, Heaslip Road Junction......................................................... — 2 950 3 100 — Unkerbed Urban Arterial Roads.................... — 1 100 1 100 782 City Central................................................... — 1 057 — — Eyre Peninsula Grain Logistics Transport Plan ............................................................... — 700 755 3 123

Port River Expressway - Stage 1 .................. — 72 — 36 Commercial Road, Port Noarlunga ............... — 60 60 1 561 City West Connector..................................... — 150 — 2 645 Mount Gambier Duplication ......................... — — — 1 978 Walkerville Building Upgrade ...................... — — — 588 Deflectograph Pavement Evaluation Vehicle.......................................................... — — — 533

6.21

2007-08Budget


2006-07 Budget

2005-06Actual

Investments $000 $000 $000 $000 Southern Expressway.................................... — — — 210 Brittania Roundabout .................................... — — — 100

IMPROVING WELLBEING Level Crossing Safety Upgrade..................... 3 000 2 530 3 010 3 145 Upgrade Vehicle Inspection Facilities and Checking Stations ......................................... 2 200 2 000 2 000 143 Road Safety - Reaching the Target ............... 1 904 4 000 3 850 2 023 Mass Action .................................................. 1 165 — — 901 Transport Security......................................... — 2 368 800 2 153 Green Cycle Paths - Safe Crossing of Arterials ........................................................ — 500 500 — National Environment Protection Measure ... — 409 — 2 032 Marine Safety - Provision of a HF Marine Radio Service for South Australia................. — 135 135 — Wallaroo to Port Wakefield—Kulpara to Port Wakefield .............................................. — 550 — 2 328

DV Fleming Bridges ..................................... — — — 553 Mill Corner Loxton ....................................... — — — 272


Minor Works

ATTAINING SUSTAINABILITY Public Transport - Minor Works ................... 533 520 520 532 Annual Program - TransAdelaide ................. 6 106 5 957 6 000 6 641 Railcar Upgrading......................................... 5 850 5 700 5 700 —

BUILDING COMMUNITIES Rural and Remote - Minor Works................. 10 051 11 811 9 496 9 769

GROWING PROSPERITY Transport System Responsiveness - Minor Works............................................................ 3 645 3 475 1 149 3 866 AusLink Minor Works .................................. 1 280 785 1 920 307 Fishing Industries Facilities Upgrade - Minor Works................................................. 410 400 400 397 Annual Program - Energy ............................. 308 515 515 564 Annual Program – transferred from DAIS .... 1 788 1 960 1 852 5 480 Annual Program - Commercial Properties .... 5 253 4 948 4 949 2 992 Ayers House.................................................. 96 92 92 79 Netley Commercial Park Works & Refurbishment............................................... 2 500 2 710 2 710 2 296 PABX Upgrades............................................ 695 1 122 1 122 2 098 Purchase of Handsets .................................... 513 500 — — Residential Properties (SAGERP) ................ 4 955 5 300 5 300 9 436

IMPROVING WELLBEING State Black Spot Program ............................. 4 619 4 491 5 118 4 673 National Black Spot Program........................ 2 540 2 462 1 690 1 993

6.22

2007-08Budget


2006-07 Budget

2005-06Actual

Investments $000 $000 $000 $000 Responsive Road Safety Program................. 1 509 1 830 2 956 2 318 Roadside Rest Area Strategy for SA ............. 2 500 — — — ICT - Information and Communication......... 567 937 937 771

Total Minor Works 55 718 55 515 52 426 54 212


Reconciliation to investing payments (as per agency Cash flow statement)

Less : Cost of projects transferred in TransAdelaide(c )

Marion Interchange ....................................... 1 395 3 543 5 500 412 Safe Railway Pedestrian Crossings ............... 731 2 602 2 700 331 Upgrade/replacement of bridges on the TransAdelaide rail network........................... 397 1 420 2 221 1 462 Replacement of rail track points and crossings ....................................................... 243 3 241 3 465 1 374

Annual Program – TransAdelaide................. 3 053 5 957 6 000 6 641 Railcar Upgrading......................................... 2 925 5 700 5 700 —

Department for Administrative and Information Services(d)

Automated Torrens Lands Title Administration System (ATLAS) - Stage 2 — — — 74 Automated Torrens Lands Title Administration System (ATLAS) - Stage 3 — 695 1 500 —

Education Centre - Base Building Works .. — — — 1 733 Facilities Management Information System (FAMIS) ...................................................... — — 177 —

Parliamentary Network Support Group......... — — — 16 Government Radio Network (GRN) ............ — 2 329 2 840 4 815 Purchase of Wakefield House from South Australian Asset Management Corporation (SAAMC) ................................ — — — 13 543

Carnegie Mellon University – Torrens Building ........................................................ — 20 355 3 139

Annual Program – transferred from DAIS .... — 319 1 852 5 480 Annual Program - Commercial Properties .... — 578 4 949 2 992 Ayers House.................................................. — — 92 79 Netley Commercial Park Works & Refurbishment............................................... — 861 2 710 2 296

PABX Upgrades............................................ — 317 1 122 2 098 Purchase of Handsets .................................... — — — — Residential Properties (SAGERP) ................ — 1 865 5 300 9 436

Equals: Total Investing Payments (as per agency Cash flow statement)

463 477 379 991 339 034 238 034

(a) This includes $2.5 million from the Australian Government under the AusLink Investment Program for the realignment of railway lines associated with the Bakewell Underpass.

(b) 2006-07 Budget includes the completion of Salisbury Highway to Main Street section and Public Transport Interchange. (c) Reflects the transfer of TransAdelaide’s rail assets to the department on 1 January 2008. (d) Transfers for the 2006-07 Estimated Result represent the payments for the period 1 July 2006 to 31 December 2006 reflected in the

Cash flow statement for the Department for Administrative and Information Services.

6.23


Program Information

Program 1: Policy and Planning

Description/Objective: Development and provision of an effective policy framework, planning and investment advice and strategic planning services surrounding legislation committed to the Minister.


Program 1: Policy and Planning 2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 10 690 9 598 8 262 11 536 Supplies and services .......................................... 4 649 4 440 5 215 6 252 Grants and subsidies............................................ 669 672 600 617 Depreciation and amortisation............................. — — — 27 Other ................................................................... 1 133 1 055 1 055 379

Total expenses 17 141 15 765 15 132 18 811

Income Sale of goods and services................................... 21 205 205 93 Other ................................................................... 52 — — —

Total income 73 205 205 93


6.24

Program performance

Program: 1 Policy and Planning 2007-08

Budget 2006-07

Estimated result 2006-07 Budget

2005-06Actual

Expenditure $17 141 000 $15 765 000 $15 132 000 $18 811 000

Revenue $73 000 $205 000 $205 000 $93 000


Reason for variance Expenditure The 2006-07 Budget reflects the transfer of safety related functions and activities to Program 11 Road Safety Policy, Planning and Services, which is under the responsibility of the Minister for Road Safety.

The 2007-08 Budget includes the transfer of functions and activities from Sub-program 2.1 Operating and Maintaining Roads and Sub-program 3.1 Driver and Vehicle Regulation.


In 2007-08 the department will continue to develop strategies for the road network, public transport patronage and mitigating transport impacts on the environment and transport security.

6.25


Program Information

Program 2: Transport Infrastructure Services

Description/Objective: The efficient and effective maintenance and operation of marine, rail, road and bridge infrastructure and facilities.


Program 2: Transport Infrastructure Services

2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 62 626 61 114 51 433 63 375 Supplies and services .......................................... 87 785 93 979 98 738 132 882 Grants and subsidies............................................ 6 678 3 582 7 454 40 524 Depreciation and amortisation............................. 144 904 129 042 123 595 119 188 Other ................................................................... 18 2 288 2 799 3 811

Total expenses 302 011 290 005 284 019 359 780

Income Sale of goods and services................................... 1 756 1 520 3 233 13 019 Fees, fines and penalties...................................... 8 013 7 639 7 867 7 162 Commonwealth revenue...................................... 154 247 107 721 110 049 90 152 Other ................................................................... 20 563 23 312 17 816 12 353

Total income 184 579 140 192 138 965 122 686


6.26


Sub-program: 2.1 Operating and Maintaining Roads Provision of services to efficiently and effectively maintain and operate the department’s controlled road and bridge infrastructure, including road lighting, traffic signals, management systems and River Murray ferries.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $271 194 000 $269 662 000 $264 630 000 $326 091 000

Revenue $169 909 000 $113 368 000 $114 958 000 $99 526 000


Reason for variance

Expenditure

The 2006-07 Budget reflects the transfer of safety related functions and activities to Program 11 Road Safety Policy, Planning and Services, which is under the responsibility of the Minister for Road Safety. This reduction is offset by an increase in network depreciation and cost escalation associated with road maintenance contracts.

The 2006-07 Estimated Result increase is primarily due to wages supplementation for Enterprise Bargaining and higher depreciation costs resulting from an increased capital program.

The 2007-08 Budget reflects an increase in costs associated with depreciation and the transfer of functions and activities from Sub-program 11.1 Safer Roads. This is offset by a reduction related to the LeFevre Peninsula Transport Corridor Upgrade project and the transfer of functions and activities to Program 1 Policy and Planning. Revenue The 2006-07 Budget and the 2007-08 Budget include additional revenue from the Commonwealth for major projects, including an increase in Commonwealth grants for projects such as the Northern Expressway and the Sturt Highway Upgrade package.

Performance Commentary The department is continuing to refine its Pavement Management System to optimise the distribution of resurfacing and rehabilitation funds across the urban and rural networks.

Performance Indicators 2007-08Target


2006-07 Target

2005-06Actual

% length of rural sealed network rehabilitated 0.1% 0.1% 0.4% 0.1%

% length of rural sealed network resealed 3% 2.6% 3.0% 3.8%

% length of urban sealed network resealed 1.1% 1.1% 1.5% 1.7%

% length of urban sealed network rehabilitated 2.3% 2.3% 2.2% 2.5%

Actual travel speed (average speed to travel on arterial roads in Adelaide)

40 kph 40 kph 41 kph 41 kph

Variability of travel speed (% variability caused by traffic controls and conditions)

11.7% 11.7% 11.5% 11.1%

6.27

Sub-program: 2.2 Operating and Maintaining the Marine System Provision of services to efficiently and effectively maintain and operate the department’s controlled marine infrastructure.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $15 258 000 $13 964 000 $14 223 000 $13 495 000

Revenue $9 124 000 $8 385 000 $9 006 000 $7 062 000


Reason for variance

The 2007-08 Budget for expenditure includes additional expenditure for the maintenance of marine facilities including commercial ports, recreational jetties and commercial fishing facilities.



2006-07 Target

2005-06Actual

Number of recreational jetties managed comprising of:

• non divested recreational jetties managed 22(a) 24(b) 15 17

• divested recreational jetties managed 36(a) 35 36 35

Number of fishing industry facilities managed 51(c) 52(d) 31 33

Footnotes

(a) Proposed changes in 2007-08 are due to the demolition of one jetty and the transfer (divestment) of another jetty to council.

(b) Increase is due to redefinition of jetties to include wharves and similar type structures.

(c) Reduction in 2007-08 is due to the proposed transfer of Kingston Boat Yard to council.

(d) Increase from 2006-07 Target is due to recognising 18 waste-oil stations and additional boat launching facilities.

6.28

Sub-program: 2.3 Managing Rail and Public Transport Infrastructure Assets Provision of services to efficiently and effectively manage rail and public transport infrastructure assets, including disposal of rail property.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $15 559 000 $6 379 000 $5 166 000 $20 194 000

Revenue $5 546 000 $18 439 000 $15 001 000 $16 098 000

Net cost of sub-program $10 013 000 -$12 060 000 -$9 835 000 $4 096 000

Reason for variance

Expenditure

• The 2005-06 Actual includes grant expenses related to the construction of tram related infrastructure assets by TransAdelaide. • The 2007-08 Budget reflects an increase in depreciation associated with the transfer of TransAdelaide’s rail assets to the department on

1 January 2008.

Revenue

• The 2007-08 Budget decrease is primarily due to the completion in 2007-08 of the partially Commonwealth funded Port River Expressway (Stage 3) project.



2006-07 Target

2005-06Actual

Hectares of railway land managed(a) 42 000 42 000 42 000 42 000

Cost per hectare to manage railway land (b) $104 $104 $104(c) $110

$/km to maintain busway $35 800 $35 100(d) $45 000(d) $54 100

No. of parcels disposed 75(e) 90 90 72

Footnotes (a) Australian Rail Track Corporation and Genesee & Wyoming Aust Pty Ltd (formerly Australian Railroad Group) continue to return

surplus land to the department for disposal (in accordance with their agreement). Accordingly, disposal is off-set by newly identified surplus land.

(b) Cost includes remediation costs but excludes income from sales and lease fees.

(c) Continuing improvement in the management of the rail program will see further reductions in cost per hectare in the outer years. Significant remediation of ground water at Islington workshops is expected to be undertaken in 2007-08.

(d) Decrease in cost due to reduced horticulture expenditure undertaken.

(e) The number of parcels will vary from year to year depending on availability and suitability of land for disposal.

6.29


Program Information

Program 3: Transport Safety and Regulation Services

Description/Objective: Provision of services that regulate access to the transport system under legislation committed to the Minister and to provide advice on transport safety matters.


Program 3: Transport Safety and Regulation Services

2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 23 842 28 075 21 887 26 989 Supplies and services .......................................... 8 890 27 140 30 638 43 307 Grants and subsidies............................................ 15 915 15 646 14 892 —

Depreciation and amortisation............................. 1 467 955 — 458

Other ................................................................... 399 — — 64

Total expenses 50 513 71 816 67 417 70 818

Income Sale of goods and services................................... 11 853 19 464 15 411 16 800 Fees, fines and penalties...................................... 17 401 281 580 275 961 264 100 Commonwealth revenue...................................... 92 90 — 1 210 Other ................................................................... 870 980 669 2 021

Total income 30 216 302 114 292 041 284 131

Net cost of providing services 20 297 -230 298 -224 624 -213 313

6.30


Sub-program: 3.1 Driver and Vehicle Regulation Contribute to the regulation of driver and vehicle access to the transport network.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $20 815 000 $48 911 000 $45 456 000 $49 378 000 Revenue $17 981 000 $291 860 000 $282 032 000 $274 665 000

Net cost of sub-program $2 834 000 -$242 949 000 -$236 576 000 -$225 287 000

Reason for variance

Expenditure

The 2006-07 Budget reflects the transfer of safety related functions and activities to Program 11 Road Safety Policy, Planning and Services, which is under the responsibility of the Minister for Road Safety.

The 2006-07 Estimated Result includes additional costs associated with the implementation of the new vehicle registration database.

The 2007-08 Budget decrease reflects the transfer of functions and activities to Program 10 Service SA and Program 1 Policy and Planning.

Revenue

The 2006-07 Budget includes revenue from an increase in Motor Registration and Drivers Licence fee revenue.

The 2006-07 Estimated Result reflects a change in Driver Licence and Motor Registration renewal patterns and increased commission revenue from the Motor Accident Commission.

The 2007-08 Budget reflects the transfer of functions and activities to Program 10 Service SA.


Driver and Vehicle Regulation continues to monitor the capability, fitness and behaviour of drivers and takes action against those who do not comply with required standards and/or legislation.

6.31

Sub-program: 3.2 Transport Safety Regulation Provision of efficient and effective regulatory services for the safety, behaviour and security of transport system users, rail safety and rail access regulation services.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $29 698 000 $22 905 000 $21 961 000 $21 440 000

Revenue $12 235 000 $10 254 000 $10 009 000 $9 466 000


Reason for variance

The 2007-08 Budget for expenditure includes costs associated with improving road safety in the heavy vehicle industry by amending current national driving hours legislation to improve the focus on managing driver fatigue, provision of vehicles emissions testing services and increasing detection of unregistered and uninsured vehicle offences via road traffic cameras.

The 2007-08 Budget for revenue includes increased vehicle emissions testing receipts and other regulatory fees resulting from fee increases.



2006-07 Target

2005-06Actual

No. of recreational vessels checked per annum for compliance with safety requirements

2 500 2 204 3 500 4 168

No. of driver accreditations processed 5 300 5 868 4 600 4 799

No. of expiations issued for fare evasion 3 000 2 965 7 000(a) 2 046

No. of passenger complaints investigated 1 600 1 521 1 300 1 191

No. of vehicle inspections 16 000 17 100 17 000 16 072

No. of vehicle ID inspections 31 200 34 500 34 500 35 877

No. of prosecutions for breaches under the Road Traffic Act, Motor Vehicles Act and the Passenger Transport Act.

900 825 900 866

No. of expiations for breaches under the Road Traffic Act, Motor Vehicles Act and the Passenger Transport Act

2 000 1 979 1 800 1 669

No. of permits for over dimensional loads issues

13 000 14 000(b) 18 800 19 078

Footnotes (a) The 2006-07 Target includes all expiations (not just ‘fare evasions’).

(b) The number of estimated permits for 2006-07 has been impacted by the further gazettal of routes (thereby eliminating the need for some permits) and changes introduced on 1 July 2006 eliminating the need for many of the contingency (or ‘just in case’) permits. This is in line with the commitment to the freight industry to reduce 3000 permits in 2006-07 as a result of the Heavy Vehicle Access Framework. Additionally, a significant decrease in the demand for permits has resulted from the drought conditions.

6.32


Program Information

Program 4: Public Transport Services

Description/Objective: Provision of efficient, equitable and accessible public transport services in metropolitan Adelaide and assisting regional councils and communities to deliver diverse passenger transport services to meet local needs.


Program 4: Public Transport Services 2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 12 560 12 576 10 393 9 589 Supplies and services .......................................... 236 243 248 482 241 627 241 411 Grants and subsidies............................................ 17 470 17 719 17 973 16 652

Depreciation and amortisation............................. 20 601 19 773 19 773 18 576 Other ................................................................... 7 267 7 132 12 458 9 376

Total expenses 294 141 305 682 302 224 295 604

Income Sale of goods and services................................... 78 338 75 481 70 639 66 988 Commonwealth revenue...................................... — — — 102

Other ................................................................... 43 854 40 728 41 041 39 378

Total income 122 192 116 209 111 680 106 468


6.33


Sub-program: 4.1 Asset Management Provision of services for effective and efficient management of public transport infrastructure, including vehicles.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $36 177 000 $35 138 000 $35 206 000 $33 784 000

Revenue $483 000 $690 000 — $1 146 000


Reason for variance

Expenditure

The 2006-07 Budget includes higher bus and depot depreciation costs resulting from an increased capital program.

Revenue

The 2005-06 Actual includes depot lease income and sundry revenue. These items were included against Sub-program 4.2 Passenger Services in the 2006-07 Budget.



2006-07 Target

2005-06Actual

No. of buses used for metroticket services 808 808 809 808

No. of new buses introduced 43 rigid diesel 1 artic diesel

44 rigid diesel

45 rigid diesel 5 artic diesel

39 rigid diesel

No. of buses refurbished 65 floors 66 floors 45 floors 28 floors

14 full

% of buses air-conditioned 81% 76% 76% 70%

% of low floor/wheelchair accessible buses 66% 60% 60% 55%

Average age of buses 10.7 11.1 11.1 12.0

% of diesel or biodiesel powered buses 75% 74% 74% 74%

% of Compressed Natural Gas fuelled buses 25% 26% 26% 26%

Cost to run ticketing system per 10 000 ticket validations

$1 000 $1 000 $1 000 $970

6.34

Sub-program: 4.2 Passenger Services The development and management of contracted passenger transport services within the metropolitan area and regional South Australia. The regulation of public transport services, transport initiatives, concessions and subsidy schemes.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $257 964 000 $270 544 000 $267 018 000 $261 820 000

Revenue $121 709 000 $115 519 000 $111 680 000 $105 322 000


Reason for variance

Expenditure

The 2006-07 Budget includes a grant payment to TransAdelaide for the Marion Interchange, carried forward from 2005-06.

The 2006-07 Estimated Result includes additional patronage incentive payments to metropolitan service contractors and payments to TransAdelaide to fund Disability Discrimination Act 1992 compliance requirements.

The 2007-08 Budget reflects a reduction to rail contract payments to TransAdelaide resulting from the transfer of TransAdelaide’s rail assets to the department on 1 January 2008.

Revenue

The 2006-07 Budget and the 2007-08 Budget include an increase in Metroticket and Concession reimbursement revenue resulting from fare increases. In addition, the 2006-07 Budget includes depot lease income and sundry revenue (included against Sub-program 4.1 Asset Management from 2006-07 Estimated Result).



2006-07 Target

2005-06Actual

Metropolitan Public Passenger Services:

• Total service kilometres (million) 45.1 45.1 43.5 43.6

• Total boardings (million) 67.5 65.5 66.8 63.9

• Average contract cost per service kilometre

$4.84 $4.90 $4.82 $4.96

• % growth in weekday boardings 2.5% 2.3% 4.0% 4.5%

Passenger journeys in regional areas: 1 620 000 1 590 000 1 510 000 1 559 821

% of fully accessible vehicles in metro fleet by:

• Bus 66% 60% 60% 55%

• Train 100% 100% 100% 100%

• Taxi 8% 7% 8% 7%

• Tram(a) 100% 100% 98.5% 24%

% of taxi bookings responded to within 30 minutes:

• Access Cabs 97% 97% 97% 97%

• Regular Cabs 97% 97% 97% 97%

No. of stops provided with information 4 700 4 528 4 000 3 500

Passenger Transport InfoLine response times 40 seconds 40 seconds 20 seconds 30 seconds

Footnotes

(a) Excludes H-class trams retained only for heritage weekend services and back up.

6.35


Program Information

Program 5: Energy Policy and Regulation

Description/Objective: Provision of policy advice on energy issues, energy program delivery and regulatory services for the competitive, sustainable, safe and reliable supply and use of energy, for the benefit of the South Australian community.


Program 5: Energy Policy and Regulation 2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 7 925 7 567 6 639 7 269 Supplies and services .......................................... 2 999 6 035 6 498 7 310 Grants and subsidies............................................ 8 173 6 206 5 600 8 410 Depreciation and amortisation............................. 350 240 329 277 Other ................................................................... 131 66 66 48

Total expenses 19 578 20 114 19 132 23 314

Income Sale of goods and services................................... 1 215 1 218 1 192 1 152 Fees, fines and penalties...................................... — — — 90 Commonwealth revenue...................................... 225 267 219 138 Other ................................................................... 3 597 3 425 3 523 3 240

Total income 5 037 4 910 4 934 4 620


6.36


Sub-program: 5.1 Energy Policy and Programs Provision of policy advice and coordination of energy market reforms, including national reforms, sustainability and energy efficiency. Management of energy programs for the delivery of services to remote areas and in support of renewable energy.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $16 141 000 $16 814 000 $15 816 000 $20 546 000

Revenue $1 473 000 $1 497 000 $1 504 000 $1 413 000


Reason for variance

Expenditure

The 2006-07 Budget reduction reflects the diesel fuel excise, as levied by the Australian Taxation Office, no longer being applicable to diesel fuel used for the purposes of generating electricity in the Remote Areas Energy Supplies scheme.

The 2006-07 Estimated Result includes a grant payment to the Australian Energy Market Commission and increased leasing costs for office accommodation.

Performance Commentary The Energy Division will continue to provide economic, strategic and regulatory policy advice to the Minister for Energy on matters related to greenhouse gas abatement and renewable generation technologies, market reform and the operation of the energy markets. The Energy Division will continue to manage programs subsidising the supply of electricity to remote areas, supporting the uptake of renewable energy and providing energy efficiency advice.



2006-07 Target

2005-06Actual

Number of applications under the Photovoltaic Rebate Program

375 420 350 393

Number of solar hot water rebates approved 2 500 2 200(a) 2 500 2 600

Footnotes (a) Falling renewable energy certificate prices has impacted by reducing the demand for solar hot water rebates.

6.37

Sub-program: 5.2 Technical and Safety Regulation Enforcement, compliance and promotion of technical and safety regulation, and the monitoring and management of emergency events.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $3 437 000 $3 300 000 $3 316 000 $2 768 000

Revenue $3 564 000 $3 413 000 $3 430 000 $3 207 000

Net cost of sub-program -$127 000 -$113 000 -$114 000 -$439 000

Performance Commentary The Office of the Technical Regulator will continue to meet its regulatory responsibilities under the Electricity Act 1996, the Gas Act 1997 and the Electrical Products Act 2000.

The Office has assigned significant resources to conducting industry based safety presentations. Many presentations have been offered as a result of industry requests. It has been shown that there is an ongoing need to reinforce the safety message. The safety performance of the industry has again shown improvement from previous years. Whilst safety issues are still uncovered through audit, the number of serious compliance breaches has reduced.

Performance Indicators 2007-08 Target


2006-07 Target

2005-06 Actual

Number of safety presentations to key stakeholders

240 230 198 195

Number of proactive technical and safety audits

2 300 2 050 2 310 2 062

6.38


Program Information

Program 6: State Infrastructure Facilitation

Description/Objective: Development and provision of processes to improve analysis, prioritisation and across government reporting on progress of state infrastructure projects and facilitation of infrastructure investment.


Program 6: State Infrastructure Facilitation

2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 2 186 2 324 2 490 2 272 Supplies and services .......................................... 7 777 8 632 8 728 17 267 Grants and subsidies............................................ 10 068 5 911 10 269 — Depreciation and amortisation............................. 32 — 32 1 Other ................................................................... 1 465 1 450 1 450 45

Total expenses 21 528 18 317 22 969 19 585

Income Sale of goods and services................................... 163 159 730 1 517 Commonwealth revenue...................................... 13 300 2 134 — — Other ................................................................... — — — 22

Total income 13 463 2 293 730 1 539


6.39

Program performance

Program: 6 State Infrastructure Facilitation 2007-08

Budget 2006-07


2005-06Actual

Expenditure $21 528 000 $18 317 000 $22 969 000 $19 585 000

Revenue $13 463 000 $2 293 000 $730 000 $1 539 000


Reason for variance

Expenditure

The 2006-07 Budget includes costs associated with the Eyre Peninsula Grain Logistic Transport Plan, Gawler River Flood Mitigation Scheme and the Catchment Management Subsidy Scheme. This increase is offset by completion of the Outer Harbor Channel Deepening (completed in 2005-06).

The 2006-07 Estimated Result reflects that some expenditure for the Eyre Peninsula Grain Logistic Transport Plan has been carried over to 2007-08.

Revenue

The 2005-06 Actual includes GST reimbursement for the Outer Harbor Channel Deepening project. The 2006-07 Estimated Result and the 2007-08 Budget include additional revenue from the Commonwealth for the Eyre Peninsula Grain Logistics Transport Plan.

Performance Commentary Through the Office of Major Projects and Infrastructure (OMPI), the department will continue to identify the state’s infrastructure priorities, coordinate activities across government agencies and facilitate infrastructure investment. The Office facilitates delivery of a number of key major infrastructure projects, including major transport projects.



2006-07 Target

2005-06Actual

No. of projects managed 20 22 20 5

% of projects delivered within cost and quality parameters

100% 100% 100% 100%

% of projects delivered within agreed time schedules

100% 100% 100% 100%

Annual value of projects managed(a) $14m $16.5m $13m $24m

Footnotes (a) Relates to operating projects funded within OMPI. Does not equal project values where there are contributions by other parties to

projects. Major infrastructure capital projects managed by OMPI are funded through other divisions.

6.40


Program Information

Program 7: Information and Communication Technology Services

Description/Objective: Provides strategic government information and communication technology (ICT) services, primarily across the public sector. Provides strategic advice on, and coordination of, agency and sector specific information and communication technology initiatives to assist agencies in the efficient delivery of services to the government and the community.


Program 7: Information and Communication Technology Services

2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 7 916 15 307 12 362 14 171 Supplies and services .......................................... 41 048 82 725 125 029 59 257 Grants and subsidies............................................ 2 500 2 251 1 — Depreciation and amortisation............................. 17 350 14 286 13 903 12 880 Other ................................................................... 3 023 2 090 589 169

Total expenses 71 837 116 659 151 884 86 477

Income Sale of goods and services................................... 68 700 102 264 142 608 67 815 Commonwealth revenue...................................... — 1 585 — 415 Other ................................................................... — — — 5

Total income 68 700 103 849 142 608 68 235


6.41


Sub-program: 7.1 Information and Communication Technology Coordination The development of ICT strategy and policy, and co-ordination of the state's Information Technology Infrastructure priorities and activities across government agencies.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $1 916 000 $1 949 000 $1 715 000 $1 063 000

Revenue — — — $5 000


Reason for variance

The Office of the Chief Information Officer (CIO) was established during 2005-06 and became fully operational from 2006-07.


The principal objective of the Office of the CIO relates to increasing the overall efficiency and effectiveness of the government’s current and future ICT investments. It will achieve this objective by, amongst other things, developing and implementing ICT strategic plans, advising on the prioritisation of ICT investments, overseeing major ICT procurements and collaborating with agencies in the adoption of leading practices in ICT-enabled service delivery.

The Office of the CIO has three principal responsibilities in fulfilling its objectives: improving ICT planning and investment; coordinating across-government ICT initiatives; and advising Cabinet, the Minister for Infrastructure, Chief Executives and senior management in relation to ICT.

The Office of the CIO will continue the development and deployment of whole of government ICT strategies and frameworks.

Sub-program: 7.2 Delivery of Information and Communication Technology Services Provides ICT services to support the operations of government agencies, including public safety and emergency management radio communications. The division also manages ICT architecture, policy and standards across government and provides support for electronic government infrastructure and services to the community and business.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $66 021 000 $110 912 000 $148 047 000 $81 859 000

Revenue $67 803 000 $102 971 000 $142 608 000 $67 767 000

Net cost of sub-program -$1 782 000 $7 941 000 $5 439 000 $14 092 000

Reason for variance The disengagement of the Information Technology Services and State Economic Development (ITSSED) contract between EDS (Australia) Pty Ltd and the government has resulted in a decrease in the volume of transactions in the 2006-07 Estimated Result and the 2007-08 Budget.

Performance Commentary Government ICT Services and the Office of the Chief Technology Officer has provided support for a number of key government reform initiatives, specifically Shared Services and e-Government. In 2006-07 disengagement from the EDS ITSSED contract was completed and transition to the multi-vendor service arrangements under the Future ICT contracts continued to progress. Considerable progress has been made on the Future State Technology Architecture.

Through an independent assessment, global benchmarking of Government ICT Services costs and services indicated that Government ICT Services was operating at 12 per cent below the cost benchmark. On two occasions, Government ICT Services participated in a national telecommunications benchmarking exercise, indicated that the South Australia Government is, in general, operating very cost competitively when compared to other governments around Australia. In addition, Government ICT Services participated in an independent assessment of the current state of ICT practices in Australian State Governments. The assessment highlighted that South Australia was the clear leader in 60 per cent of categories measured.

6.42

Sub-program: 7.3 Parliamentary Network Support Services Provision of a comprehensive range of ICT services to the Parliament of South Australia including Members and their staff while in Parliament House and at other locations in the state including Electorate and home offices.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $3 900 000 $3 798 000 $2 122 000 $3 555 000

Revenue $897 000 $878 000 — $463 000




2006-07 Target

2005-06Actual

98% availability of all services 98% 98% 98% 98%

Technical support between 7:00am and 10:30pm seven days

100% 100% 100% 100%

6.43


Program Information

Program 8: Building Management

Description/Objective: Provision of services to government agencies in relation to the construction, maintenance and management of building assets.


Program 8: Building Management 2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 18 598 16 028 18 137 19 251 Supplies and services .......................................... 179 845 176 073 164 638 164 371 Grants and subsidies............................................ 2 581 306 — — Depreciation and amortisation............................. 13 448 12 220 9 814 9 207 Other ................................................................... 2 925 2 744 5 279 4 810

Total expenses 217 397 207 371 197 868 197 639

Income Sale of goods and services................................... 217 576 210 319 207 647 202 645 Other ................................................................... 5 017 4 310 5 800 3 219

Total income 222 593 214 629 213 447 205 864

Net cost of providing services -5 196 -7 258 -15 579 -8 225

6.44


Sub-program: 8.1 Facilities Services Delivers facilities management services to government agencies.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $65 770 000 $64 109 000 $62 150 000 $71 425 000

Revenue $65 260 000 $64 071 000 $63 715 000 $69 209 000

Net cost of sub-program $510 000 $38 000 -$1 565 000 $2 216 000

Performance Commentary Facilities Services will continue to provide services as the benchmark facilities management contractor under the across-government facilities management arrangements. Maintenance, minor works and property management services will be provided to one region in metropolitan Adelaide and throughout regional South Australia.

Facilities Services will offer advisory and management services to building asset owning agencies in regard to the management and removal of asbestos containing and other hazardous materials found in government owned buildings.



2006-07 Target

2005-06Actual

No. of Facilities Services jobs completed 82 000 81 000 82 000 86 000

Value of Facilities Services jobs completed $78m $74m $78m $77.1m

6.45

Sub-program: 8.2 Project Services Delivers major building construction projects, and manages key building industry and facilities management arrangements.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $11 048 000 $10 332 000 $10 322 000 $4 888 000

Revenue $8 370 000 $7 916 000 $8 183 000 $4 331 000

Net cost of sub-program $2 678 000 $2 416 000 $2 139 000 $557 000

Performance Commentary Project Services will continue to provide a centralised specialist project risk management service to government agencies undertaking construction projects, with the program of projects generally numbering around 350 with a combined value of $1200 million. The service will focus on the management of design, cost, time and procurement risks and will include the management of implementation of the Project Implementation Process policy for construction projects across government.

Project Services will undertake its contract management and administration role for the across-government facilities management arrangements, ensuring that participating agencies have access to robust governance, contractual and administrative mechanisms. Work will continue with non-participating agencies with a view to expanding the use of the facilities management arrangements to the benefit of all participants.



2006-07 Target

2005-06Actual

Annual value of major projects managed $1 200m $1 200m $1 000m $1 000m

Final expenditure vs. approved budget at contract award(a)

Within 2% 2% n.a. n.a.

Final construction project expenditure vs approved budget(b)

Within 5% 5% n.a. n.a.

Annual value of facility management contracts $76m $70m $76m(c) $88m

Client satisfaction with facilities management contractor performance(a)

Very good rating Very good n.a. n.a.

Contract performance(a) Very good rating Very good n.a. n.a.

Footnotes

(a) New performance indicator for 2007-08.

(b) New performance indicator for 2007-08. Indicator is calculated by comparing estimated final expenditure at practical completion with approved budget at the Project Implementation Process Gateway 5 (end of Concept phase).

(c) Represents estimated expenditure advised by lead agencies at the commencement of the financial year.

6.46

Sub-program: 8.3 Strategic Services Provides policy support and advice on building asset planning, acquisition, sustainment and disposal and promotes partnership between government and industry.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $3 661 000 $4 750 000 $3 450 000 $4 453 000

Revenue — — — $979 000


Performance Commentary Strategic Services will continue to promote, through use of the government's integrated strategic asset management planning framework, a better understanding of and dealing with the government's existing building stock, which is valued at about $10 billion.

Strategic Services will provide leadership and support to government agencies in the implementation of the three-stage implementation program for the Strategic Asset Management Information System (SAMIS), a listed project in the Infrastructure Plan of South Australia. There will be a review of the pre-qualification system for contractors on building construction projects.



2006-07 Target

2005-06Actual

Hours of asset management advice to government agencies

19 000 19 000 19 000 19 000

% improvement in asset management practices across South Australian government agencies over the 1999 baseline

n.a.(a) 15% 10% n.a.(a)

Footnotes (a) The across-government survey to assess the level of improvement will only be undertaken once every two years as discernible changes

are not expected within a year.

6.47

Sub-program: 8.4 Commercial Property Management Procures and manages office accommodation for government agencies.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $118 096 000 $108 220 000 $101 630 000 $100 575 000

Revenue $118 898 000 $113 318 000 $111 526 000 $110 885 000

Net cost of sub-program -$802 000 -$5 098 000 -$9 896 000 -$10 310 000

Performance Commentary Accommodation Services will continue to manage the Commercial Property program to ensure that government’s office accommodation requirements are met including management of some 350 commercial leases covering a total area of almost 300 000m² and 60 commercial properties with a combined total area of over 180 000m². Accommodation Services will lead the implementation of an across-government strategy to achieve budget savings in office accommodation, and the development of a strategic accommodation plan to guide future accommodation decisions in the CBD.

Management of the commercial property portfolio will focus on the targets in South Australia’s Strategic Plan for energy savings and Ecologically Sustainable Development in office accommodation.



2006-07 Target

2005-06Actual

No. of commercial tenancies managed 350 350 336 351

Area of commercial leases managed 290 000m2 294 000m2 280 000m2 280 546m2

No. of government owned commercial buildings managed

60 62 60 62

Area of government owned commercial buildings managed

182 000m2 183 439m2 182 000m2 183 439m2

Management costs per square metre of commercial office accommodation(a)

$7.70 $6.90 $8.50 $8.05

Vacancy rate for commercial office accommodation

0.5% 0.5% 0.5% 0.8%

Footnotes (a) Estimated 2006-07 management cost per m² has reduced significantly from target due to increased area managed.

6.48

Sub-program: 8.5 Government Employee Residential Property Management Procures and manages regional housing for South Australian government employees.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $18 822 000 $19 960 000 $20 316 000 $16 298 000

Revenue $30 065 000 $29 324 000 $30 023 000 $20 460 000

Net cost of sub-program -$11 243 000 -$9 364 000 -$9 707 000 -$4 162 000


Procurement of residential properties through purchase, construction and leasing from the private sector for government employees providing essential services to communities in rural areas will continue. A portfolio of over 1900 owned and leased houses located in approximately 200 locations throughout the state will be managed, with priority housing planned for Roxby Downs, Whyalla, Port Augusta, Marree and the Yorke and Lower North region.



2006-07 Target

2005-06Actual

No. of residential tenancies managed 2 650 2 650 2 650 2 631

No. of government owned residential properties

1 660 1 665 1 640 1 661

No. of leased residential properties from the private market

275 260 300 277

Vacancy rate for residential properties 6% 6.5% 6.0% 6.3%

Management costs per residential property per annum

$1 250 $1 210 $1 240 $1 181

6.49


Program Information

Program 9: Land Services

Description/Objective: Provides statutory services and information to the community in relation to land titling, survey, valuation and advice on land administration issues, and the development of specialist land administration policy.


Program 9: Land Services 2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 26 090 24 246 19 249 21 805 Supplies and services .......................................... 11 368 12 201 8 645 5 952 Depreciation and amortisation............................. 1 429 1 408 1 100 358

Total expenses 38 887 37 855 28 994 28 115

Income Sale of goods and services................................... 16 243 21 793 13 666 3 710 Fees, fines and penalties...................................... 11 581 4 619 10 447 9 987 Other ................................................................... — — — 2

Total income 27 824 26 412 24 113 13 699


6.50

Program performance

Program: 9 Land Services 2007-08

Budget 2006-07


2005-06Actual

Expenditure $38 887 000 $37 855 000 $28 994 000 $28 115 000

Revenue $27 824 000 $26 412 000 $24 113 000 $13 699 000



Forecast sustained growth, for 2007-08, in the property market in South Australia will see continued high demand in the Land Services Group in the areas of division and valuation. Levels equivalent to 2006-07 are expected in 2007-08.

During 2006-07, the Land Services Group processed approximately 55 000 land transactions in South Australia with a property sales value of $15 billion, maintained the state’s survey infrastructure to support land boundary definitions, and collected revenue of approximately $142 million in land administration fees and charges. Over 826 000 site and capital valuations were undertaken during this valuation cycle. As at 1 July 2007, the total values of properties in South Australia were: Site Value $142 billion (7.7 per cent increase from the previous year) and Capital Value $248 billion (6.3 per cent increase from the previous year).

Further significant work on land administration business and systems reforms will commence in 2007-08.

The development of an Electronic Plan Lodgement System commenced during 2006-07, to be implemented in 2007-08.



2006-07 Target

2005-06Actual

No. of valuation assessments 836 000 826 000 826 000 816 529

No. of documents lodged 235 000 235 000 234 000 235 892

% of valuations where value is upheld 99.60% 99.78% 99.60% 99.65%

% of objections to valuations to be finalised within five weeks for metro area

80% 78% 80% 73%

% of new valuation records created within four weeks following deposit of a plan of division

70% (a) n.a. n.a. n.a.

Footnotes

(a) New Performance Indicator for 2007-08.

6.51


Program Information

Program 10: Service SA

Description/Objective: Provides the community of South Australia with access to government services and information through an integrated network of online, phone and face-to-face delivery channels.


Program 10: Service SA 2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 19 420 10 187 9 540 9 767 Supplies and services .......................................... 21 938 3 887 3 646 3 305 Grants and subsidies............................................ — — — 36 Depreciation and amortisation............................. 379 370 362 249 Other ................................................................... — — — 42

Total expenses 41 737 14 444 13 548 13 399

Income Sale of goods and services................................... 12 851 5 982 4 327 7 678 Fees, fines and penalties...................................... 278 942 — — — Other ................................................................... 8 973 5 643 7 623 223

Total income 300 766 11 625 11 950 7 901

Net cost of providing services -259 029 2 819 1 598 5 498

6.52

Program performance

Program: 10 Service SA 2007-08

Budget 2006-07


2005-06Actual

Expenditure $41 737 000 $14 444 000 $13 548 000 $13 399 000

Revenue $300 766 000 $11 625 000 $11 950 000 $7 901 000

Net cost of program -$259 029 000 $2 819 000 $1 598 000 $5 498 000

Reason for variance

The 2007-08 Budget for expenditure and revenue reflects the transfer of functions and activities from Sub-program 3.1 Driver and Vehicle Regulation.

Performance Commentary Service SA is now firmly established as the primary gateway to government information and services. The performance indicators across all channels of Service SA network clearly indicate significant support by the South Australian community for this initiative. The 2007-08 Budget reflects the merger of Service SA and the Driver and Vehicle Licensing section, which represents 160 FTEs in nine metropolitan Customer Service Centres. Service Delivery commenced in the remote community of Watarru, which is the third site operating as part of the Council of Australian Government’s project in the APY Lands. Service SA has experienced steady growth in the Service SA website which was upgraded in March 2007. Service SA continues to progress customer service excellence across the network in line with South Australia’s Strategic Plan Target 1.7.



2006-07 Target

2005-06Actual

No. of financial transactions per annum(a) 4 500 000 1 044 000 1 100 000 1 046 467

No. of inbound calls to customer contact centre per annum

1 325 000 1 294 300 1 344 000 1 294 800

No. of website sessions on www.service.sa.gov.au per annum

1 100 000 950 000 840 000 727 835

No. of over the counter locations(a) 34 23 24 21

Footnotes

(a) Reflects the transfer of Driver and Vehicle Licensing Customer Service network to Service SA from 1 July 2007.

6.53


Program Information

Program 11: Road Safety Policy, Planning and Services

Description/Objective: Provision of policy, planning and services to improve road safety in South Australia.


Program 11: Road Safety Policy, Planning and Services

2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs ............................... 5 173 4 737 4 687 — Supplies and services .......................................... 12 361 14 201 13 985 — Grants and subsidies............................................ 37 137 38 173 37 120 — Other ................................................................... 274 49 249 —

Total expenses 54 945 57 160 56 041 —

Income Sale of goods and services................................... 654 616 616 — Fees, fines and penalties...................................... 1 198 1 159 1 159 — Commonwealth revenue...................................... 3 516 3 650 3 490 — Other ................................................................... 381 416 — —

Total income 5 749 5 841 5 265 —

Net cost of providing services 49 196 51 319 50 776 —

6.54


Sub-program: 11.1 Safer Roads Provision of efficient and effective services to improve the safety performance of the road network.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $6 782 000 $8 931 000 $7 950 000 —

Revenue $3 490 000 $3 490 000 $3 490 000 —

Net cost of sub-program $3 292 000 $5 441 000 $4 460 000 —

Reason for variance The 2006-07 Budget for expenditure and revenue reflects a transfer of safety related functions and activities to this program.

The 2006-07 Estimated Result for expenditure reflects the reclassification of some investing expenditure to operating.

The 2007-08 Budget for expenditure includes the transfer of functions and activities to Sub-program 2.1 Operating and Maintaining Roads.

Performance Commentary The program of works in 2007-08 will include:

• road infrastructure improvements at 45 black spot locations under the state and AusLink Black Spot programs (including investing and operating projects) on both arterial and local roads; and

• safety improvements on the state network including fatigue counter measures, roadside hazards protection, delineation improvements and improvements for pedestrians, cyclists and road users with a disability.

Sub-program: 11.2 Safety and Community Provision of policy and investment advice and community information on road safety and cycling and the provision of services on safe and sustainable road use and travel behaviour.

2007-08Budget


2006-07 Budget

2005-06Actual

Expenditure $48 163 000 $48 229 000 $48 091 000 —

Revenue $2 259 000 $2 351 000 $1 775 000 —

Net cost of sub-program $45 904 000 $45 878 000 $46 316 000 —

Reason for variance

The 2006-07 Budget for expenditure and revenue reflects a transfer of safety related functions and activities to this sub-program.



2006-07 Target

2005-06Actual

Contribute to a reduction in the 12 month number of road fatalities per 100 000 population to 6.8 or lower

6.8 7.2 7.4 9.4

Contribute to a reduction in the 12 month number of serious injuries to at least 1214

1 214 1 299 1 215 1 354

Contribute to a reduction in the 12 month number of road fatalities to 106 or lower

106 113 129 145

% licence examinations audited 4% 4.2% 5% 3.8%

6.55

DEPARTMENT FOR TRANSPORT, ENERGY AND INFRASTRUCTURE


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 163 042 134 703 84 565 98 256 Long service leave .................................................................... 6 086 4 727 4 007 3 367 Payroll tax ................................................................................ 9 273 7 521 4 930 6 119 Superannuation ......................................................................... 17 662 14 392 12 250 10 049 Other ......................................................................................... 962 713 39 3 703Supplies and services — General supplies and services .................................................. 614 021 533 417 406 836 449 016 Consultancy expenses .............................................................. 883 865 308 12Depreciation and amortisation ..................................................... 199 960 166 336 143 729 138 527Borrowing costs ............................................................................ 5 118 3 750 8 964 3 992Grants and subsidies ..................................................................... 46 975 36 824 42 558 31 349Intra government transfers ........................................................... 54 216 53 642 51 350 34 854Other expenses ............................................................................. 11 517 11 716 9 113 9 731

Total expenses .............................................................................. 1 129 715 968 606 768 649 788 975

Income

Commonwealth revenues ............................................................. 171 380 115 447 113 758 91 602Intra government transfers ........................................................... 18 127 12 540 4 967 3 056Other grants .................................................................................. 43 745 40 752 41 252 36 736Fees, fines and penalties ............................................................... 317 135 290 378 284 987 271 352Sales of goods and services .......................................................... 409 370 276 543 92 026 99 569Interest revenues ........................................................................... 8 131 8 802 5 700 4 660Net gain or loss from disposal of assets ....................................... 275 233 — 984Resources received free of charge ................................................ — 250 250 — Other income ................................................................................ 13 029 13 613 10 880 11 583

Total income ................................................................................. 981 192 758 558 553 820 519 542



Income — Appropriation ........................................................................... 390 173 365 205 345 205 374 001 Other income ............................................................................ — 15 326 — 4 395Expenses — Tax equivalent .......................................................................... 4 884 2 756 — — Cash alignment ......................................................................... — — 56 440 — Other ......................................................................................... 22 929 22 261 — —


Net result before restructure(s) ..................................................... 213 837 145 466 73 936 108 963

Net income from / expenses from administrative restructure(s) .. 644 249 138 884 — 6 260

Net result after restructure(s) ........................................................ 858 086 284 350 73 936 115 223

6.56


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 212 100 323 675 263 146 333 600Receivables ................................................................................... 159 402 153 216 24 618 35 083Inventories .................................................................................... 17 185 17 185 5 708 17 057Other current assets ...................................................................... 29 076 29 076 11 951 11 049


Non current assets

Land and improvements ............................................................... 1 232 961 973 112 353 335 433 294Plant and equipment ..................................................................... 5 915 846 5 239 882 4 975 691 4 968 368Heritage assets .............................................................................. 12 224 12 224 — — Intangible assets ........................................................................... 14 853 14 853 — 9 153Other non-current assets ............................................................... 974 974 — —


Total assets ................................................................................... 7 594 621 6 764 197 5 634 449 5 807 604

Liabilities

Current liabilities

Payables ........................................................................................ 119 069 119 062 70 426 63 476Short-term borrowings ................................................................. 3 723 3 722 248 — Employee benefits — Salaries and wages ................................................................... 3 070 3 105 1 267 2 215 Annual leave ............................................................................. 8 883 8 680 8 427 9 640 Long service leave .................................................................... 3 878 3 504 2 109 1 890Short-term provisions ................................................................... 8 561 8 487 1 935 9 905Other current liabilities ................................................................. 20 447 33 871 1 413 14 130



Long-term borrowings .................................................................. 101 354 102 282 47 512 51 993Long-term employee benefits — Long service leave .................................................................... 61 126 55 117 29 447 31 856 Other ......................................................................................... — — 2 — Long-term provisions ................................................................... 8 446 8 388 2 411 7 640Other non-current liabilities ......................................................... 66 242 91 400 100 755 102 700



Net assets ...................................................................................... 7 189 822 6 326 579 5 368 497 5 512 159

Equity

Contributed capital ....................................................................... 346 544 382 148 232 941 213 257Retained earnings ......................................................................... 4 867 182 4 009 096 3 815 227 3 724 746Asset revaluation reserve ............................................................. 1 961 863 1 921 102 1 320 329 1 574 156Other reserves ............................................................................... 14 233 14 233 — —

Total equity .................................................................................. 7 189 822 6 326 579 5 368 497 5 512 159


6.57



Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... 213 257 1 574 156 3 724 746 5 512 159Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... 213 257 1 574 156 3 724 746 5 512 159

Net gain/loss on revaluation of property, plant and equipment during 2006-07 ............................................................................ — 38 561 — 38 561Net changes in reserves ................................................................ 178 832 308 385 14 233 501 450

Net income/expense recognised directly in equity for 2006-07 ... 178 832 346 946 14 233 540 011Net result after restructure for 2006-07 ........................................ — — 284 350 284 350

Total recognised income and expense for 2006-07 178 832 346 946 298 583 824 361



Net gain/loss on revaluation of property, plant and equipment during 2007-08 ............................................................................ — 40 761 — 40 761Net changes in reserves ................................................................ — — — —

Net income/expense recognised directly in equity for 2007-08 ... — 40 761 — 40 761Net result after restructure for 2007-08 ........................................ — — 858 086 858 086

Total recognised income and expense for 2007-08 — 40 761 858 086 898 847

Equity contributions from SA Government ................................. — — — — Repayment of equity contributions from SA Government .......... -35 604 — — -35 604


6.58



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Employee payments ..................................................................... 190 491 158 498 105 608 116 462Supplies and services ................................................................... 621 075 510 195 411 724 451 730Borrowing costs ............................................................................ 5 118 3 791 8 964 3 992Grants and subsidies ..................................................................... 40 800 31 022 37 957 31 747Intra government transfers ........................................................... 54 216 53 642 51 350 34 854Other payments ............................................................................ 11 269 9 326 7 883 5 391


Cash inflows

Intra government transfers ........................................................... 18 127 12 540 4 967 3 056Commonwealth receipts ............................................................... 171 380 115 447 113 758 91 602Other grants .................................................................................. 18 587 29 452 36 952 123 379Fees, fines and penalties ............................................................... 317 135 290 378 284 987 271 352Sales of goods and services .......................................................... 396 388 286 034 92 071 101 639Interest received ........................................................................... 8 131 8 802 5 700 4 660Net GST received ......................................................................... — — — 1 126Other receipts ............................................................................... 12 930 13 070 10 833 10 812


SA GOVERNMENT:

Appropriation ............................................................................... 390 173 365 205 345 205 374 001Other receipts ............................................................................... — 15 326 — 4 395Payments — Tax equivalents ........................................................................ 4 884 3 132 — 988 Cash alignment ......................................................................... — — 56 440 — Other ......................................................................................... 22 929 22 261 — —




Cash outflows

Purchase of property, plant and equipment .................................. 463 477 379 991 339 034 238 034Advances paid .............................................................................. 6 519 5 955 — —


Cash inflows

Proceeds from sale of property, plant and equipment .................. 12 990 24 633 21 200 14 922Repayment of advances ................................................................ 18 — — —



6.59



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Repayment of borrowings ............................................................ — — — 849Repayment of SA Government contributed capital ..................... 35 604 26 687 — — Finance lease payments ................................................................ 1 052 836 — 300

Cash used in financing activities .................................................. 36 656 27 523 — 1 149

Cash inflows

Capital contributions from SA Government ................................ — 16 746 16 746 20 000Proceeds from restructuring activities .......................................... — 17 778 — 165

Cash generated from financing activities ..................................... — 34 524 16 746 20 165

Net cash provided by (+) / used in (-) financing activities ........... -36 656 7 001 16 746 19 016

Net increase (+) / decrease (-) in cash equivalents ....................... -111 575 -9 925 -86 541 136 762



6.60

ADMINISTERED ITEMS FOR THE DEPARTMENT FOR TRANSPORT, ENERGYAND INFRASTRUCTURE


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Income from SA Government

Income — Appropriation ........................................................................... 11 884 11 093 4 427 13 943



Taxation ........................................................................................ 28 400 28 000 28 000 — Commonwealth revenues ............................................................. — — — 8 951Intra government transfers ........................................................... 243 313 238 049 239 026 203 464Other grants .................................................................................. — — — 4 232Fees, fines and penalties ............................................................... 120 732 57 789 — — Sales of goods and services .......................................................... 4 341 4 178 — 77 463Interest revenues ........................................................................... 186 197 232 228Other income ................................................................................ 445 215 434 636 472 999 453 219


Total income ................................................................................. 854 071 773 942 744 684 761 500

Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 389 301 227 213Supplies and services — General supplies and services .................................................. 8 527 6 258 2 057 79 424 Consultancy expenses .............................................................. — 19 19 — Borrowing costs ............................................................................ 186 197 207 207Grants and subsidies ..................................................................... 72 70 70 4 218Intra government transfers ........................................................... 280 866 275 104 276 081 229 502Other expenses ............................................................................. 565 947 497 325 472 999 446 317

Total expenses .............................................................................. 855 987 779 274 751 660 759 881

Net result before restructure(s) ..................................................... -1 916 -5 332 -6 976 1 619

Net income from / expenses from administrative restructure(s) .. — 54 — 6 381

Net result after restructure(s) ........................................................ -1 916 -5 278 -6 976 8 000

6.61


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 22 306 24 222 1 370 12 461Receivables ................................................................................... 3 964 4 136 3 214 2 897Other current assets ...................................................................... 11 11 — 11


Non current assets

Land and improvements ............................................................... 26 26 — 26

Total non-current assets ............................................................... 26 26 — 26

Total assets ................................................................................... 26 307 28 395 4 584 15 395

Liabilities

Current liabilities

Payables ........................................................................................ 12 248 12 248 2 695 16Short-term borrowings ................................................................. 184 172 172 161Short-term provisions ................................................................... 875 875 — — Other current liabilities ................................................................. 2 880 2 880 — 2 880



Long-term borrowings .................................................................. 2 363 2 547 2 547 2 718



Net assets ...................................................................................... 7 757 9 673 -830 9 620

Equity

Retained earnings ......................................................................... 2 426 4 342 -830 9 620Other reserves ............................................................................... 5 331 5 331 — —

Total equity .................................................................................. 7 757 9 673 -830 9 620


6.62



Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... — — 9 620 9 620Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... — — 9 620 9 620

Net gain/loss on revaluation of property, plant and equipment during 2006-07 ............................................................................ — — — — Net changes in reserves ................................................................ — — 5 331 5 331

Net income/expense recognised directly in equity for 2006-07 ... — — 5 331 5 331Net result after restructure for 2006-07 ........................................ — — -5 278 -5 278



Estimated balance at 30 June 2007 — — 9 673 9 673


Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ........................................ — — -1 916 -1 916

Total recognised income and expense for 2007-08 — — -1 916 -1 916



6.63



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash inflows

Taxation ........................................................................................ 28 400 28 000 28 000 27 575Intra government transfers ........................................................... 243 313 238 049 239 026 203 464Commonwealth receipts ............................................................... — — — 8 951Other grants .................................................................................. — — — 4 232Fees, fines and penalties ............................................................... 120 732 57 789 — — Sales of goods and services .......................................................... 4 341 3 591 — 77 227Interest received ........................................................................... 186 226 232 228Other receipts ............................................................................... 445 215 434 571 472 999 427 031


Cash outflows

Employee payments ..................................................................... 389 336 227 213Supplies and services ................................................................... 8 527 5 382 2 076 69 120Borrowing costs ............................................................................ 186 197 207 207Grants and subsidies ..................................................................... 72 70 70 4 218Intra government transfers ........................................................... 280 866 275 104 276 081 229 502Other payments ............................................................................ 565 947 497 898 472 999 456 496


SA GOVERNMENT:

Appropriation ............................................................................... 11 884 11 093 4 427 13 943


Net cash provided by (+) / used in (-) operating activities ........... -1 916 -5 668 -6 976 2 895


Cash inflows

Repayment of advances ................................................................ 172 161 161 —

Cash generated from investing activities ..................................... 172 161 161 —

Cash outflows

Purchase of property, plant and equipment .................................. — — — 26

Cash used in investing activities .................................................. — — — 26

Net cash provided by (+) / used in (-) investing activities ........... 172 161 161 -26

6.64



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash inflows

Proceeds from restructuring activities .......................................... — 17 429 — 5 346

Cash generated from financing activities ..................................... — 17 429 — 5 346

Cash outflows

Repayment of borrowings ............................................................ 172 161 161 —

Cash used in financing activities .................................................. 172 161 161 —

Net cash provided by (+) / used in (-) financing activities ........... -172 17 268 -161 5 346

Net increase (+) / decrease (-) in cash equivalents ....................... -1 916 11 761 -6 976 8 215



6.65


Financial Commentary — Major variations

The following commentary relates to the Agency Financial Statements presented in the previous section. The discussion relates to the variations between the 2006-07 Estimated Result and the 2007-08 Budget.


Expenses

Operating expenses are budgeted to increase by $161.1 million from $968.6 million to $1 129.7 million. This variation is predominantly due to the transfer of Government ICT Services, Building Management and Commercial and Government Services from the Department for Administrative and Information Services (DAIS) to the Department for Transport, Energy and Infrastructure on 1 January 2007. The variation also includes the following items. (The amounts quoted exclude any impact resulting from the transfer of functions from DAIS):

• a budgeted increase in depreciation of $17.3 million as a result of an increased capital program, the transfer of TransAdelaide’s rail assets to the department on 1 January 2008 and the scheduled revaluation of assets;

• new initiatives of $7.9 million including the implementation of a National Heavy Vehicle Driver Fatigue reform package, increased detection of unregistered and uninsured vehicles and a vehicles emission testing program using the existing facility at Regency Park;

• increased expenditure of $2.2 million related to the Eyre Peninsula Grain Logistics Transport Plan; and

• the impact of inflation on expenditure.

Offset by:

• a reduction of $16.1 million to rail contract payments to TransAdelaide reflecting the transfer of TransAdelaide’s rail assets to the department on 1 January 2008; and

• reduced expenditure of $10.9 million as a result of the completion of the LeFevre Peninsula works.

Income

Operating income is budgeted to increase by $222.6 million, from $758.6 million to $981.2 million. This variation is predominantly due to the transfer of Government ICT Services, Building Management and Commercial and Government Services from the Department for Administrative and Information Services (DAIS) to the Department for Transport, Energy and Infrastructure on 1 January 2007. The variation also includes the following items. (The amounts quoted exclude any impact resulting from the transfer of functions from DAIS):

• an increase of Commonwealth grants of $57.5 million for projects such as the Northern Expressway, the Sturt Highway Upgrade package and the Eyre Peninsula Grain Logistics Transport Plan. This is offset by the LeFevre Peninsula works and the Port River Expressway which are approaching completion;

6.66

• increased motor vehicle registrations, drivers licence and other regulatory fees of $16.0 million resulting from fee increases; and

• increased Metroticket and concession reimbursement revenue of $7.2 million resulting from fare increases.

Income from/Expenses to SA Government

Income from/Expenses to SA Government is budgeted to increase by $6.9 million from $355.5 million to $362.4 million.

This increase reflects the transfer of Government ICT Services, Building Management and Commercial and Government Services from the Department for Administrative and Information Services to the Department for Transport, Energy and Infrastructure on 1 January 2007.

This is partially offset by a reduction in income from the South Australian Government for capital and operating expenditure purposes. Capital expenditure in 2007-08 is lower on the Connect Light Rail to City West Campus and the Port River Expressway – Stage 3 (rail bridge) projects as the projects near completion. Operating expenditure in 2007-08 is lower due to a reduction in payments to TransAdelaide associated with the rail assets to be transferred to the department on 1 January 2008.

Net income from / expenses from administrative restructure(s)

The 2007-08 Budget for Net income from / expenses from administrative restructure(s) of $644.2 million represents the value of net assets to be transferred from TransAdelaide to the department on 1 January 2008. A corresponding loss is shown in TransAdelaide’s accounts. At the portfolio level, these accounts net out to nil.

The 2006-07 Estimated Result for Net income from / expenses from administrative restructure(s) of $138.9 million represents the value of net assets transferred from the Department for Administrative and Information Services to DTEI on 1 January 2007.

Balance sheet – Controlled

Current assets are forecast to decrease by $105.4 million from $523.2 million to $417.8 million, predominately as a result of the application of cash balances to an increased capital program in 2007-08.

The forecast increase in non-current assets of $935.8 million results from the transfer of the value of TransAdelaide’s net assets of $644.2 million to the department on 1 January 2008, the 2007-08 capital program, and a budgeted asset revaluation of $40.8 million. This is offset by depreciation of $200.0 million and asset disposals of $8.4 million.

Current liabilities are forecast to decrease by $12.8 million from $180.4 million to $167.6 million, reflecting the application of advanced revenue to the Eyre Peninsula Grain Logistics Transport Plan project.

Non-current liabilities are forecast to decrease by $20.0 million from $257.2 million to $237.2 million, reflecting the expected application of advanced revenue to the AusLink Sturt Highway Upgrade package project.

6.67

Statement of changes in equity - Controlled

The variance commentary provided for the Income statement and the Balance sheet apply equally to the Statement of changes in equity.

Cash flow statement – Controlled

The Cash flow statement shows a net cash inflow from operations of $382.1 million, compared to the net result after restructure of $858.1 million. The difference of $476.0 million primarily reflects the value of net assets forecast to transfer from TransAdelaide to the department on 1 January 2008. The difference also includes the impact of non-cash items including depreciation and the use of existing cash balances to undertake the Sturt Highway Upgrade package project and the Eyre Peninsula Grain Logistics Transport Plan project.

Net cash used in investing activities is forecast to increase by $95.7 million from $361.3 million to $457 million predominantly as the result of increased investments in 2007-08 for projects such as the Northern Expressway, the Sturt Highway Upgrade package and the South Road Upgrade.

Net cash used for financing activities is forecast to increase by $43.7 million as the result of increased equity contributions for application to the investing program. In addition the increase reflects the transfer of Government ICT Services, Building Management and Commercial and Government Services from the Department for Administrative and Information Services to the Department for Transport, Energy and Infrastructure on 1 January 2007.

6.68

Administered Items

Income statement — Administered Items

The 2007-08 Budget increases are predominantly due to transfer payment increases for Consumer Price Index on Motor Accident Commission third party insurance and Stamp Duties.

Balance sheet — Administered Items

The 2007-08 Budget decrease in net assets is due to expenditure carried-over from 2006-07 for the Glenelg West Beach project.

Statement of changes in equity — Administered Items

The variance commentary provided for the Income statement and Balance sheet applies equally to the Statement of changes in equity.

Cash flow statement — Administered Items

The variance commentary provided for the Income statement applies equally to the Cash flow statement.

Additional Information for Administered Items


6.69

Administered Items Department for Transport, Energy and Infrastructure

Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07Budget

2005-06Actual

$000 $000 $000 $000

CASH FLOWS FROM: Operating Activities Cash inflow Taxation —

Emergency Services Levy.......................................................... 28 400 28 000 28 000 27 575Grants —

Renewable Remote Power Generation Program ........................ — — — 1 540Intra-sector Grants Received —

Department of Water, Land and Biodiversity Conservation — Catchment Management Subsidy Scheme ................................. — — — 3 974Flood Mitigation ........................................................................ 72 70 70 8 007Courts Administration Authority ............................................... 1 127 1 100 1 100 648Hospital Fund — Contribution................................................... 59 104 57 662 57 662 56 307Major Administered Projects ..................................................... — — — 1 000PT— Accreditation Authority.................................................... — — 977 —SAPOL — Expiation Notices .................................................... 14 976 14 755 14 755 1 136SAPOL — Firearms................................................................... 2 827 2 758 2 758 1 544State Taxation Office — Stamp Duties...................................... 165 207 161 704 161 704 133 427

Regulatory Fees, Fines and Penalties — Registrar-General and Surveyor-General Statutory Act............ 120 732 116 103 100 614 102 572

Sale of Goods & Services — Land Services Group Trust Funds.............................................. — — — 521Major Administered Projects ..................................................... — — — 74Natural Gas Authority SA.......................................................... — — — 77 227Registrar-General and Surveyor-General Statutory Act............ — — — -78Section 7 Disbursements............................................................ 4 341 4 178 4 178 —Service SA Disbursements......................................................... — — — 215 170

Interest — Land Services Group Trust Funds.............................................. — — — 2Metropolitan (Woodville, Henley and Grange) Drainage Scheme....................................................................................... 26 27 25 28South Western Suburbs Drainage Scheme................................. 160 170 207 179PT Research and Development ................................................. — — — 21

Other — Major Administered Projects ..................................................... — — — 522Motor Accident Commission ..................................................... 425 028 414 586 451 974 415 875Ministerial Council on Energy ................................................... — — — 423Other Minor Contributions......................................................... 20 187 20 050 21 025 20 797

Total operating receipts 842 187 821 163 845 049 1 068 491

6.70


Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07Budget

2005-06Actual

$000 $000 $000 $000

Cash outflows Employee payments —

Parliamentary Salaries and Electorate and Expense Allowances ................................................................................ 389 381 381 313

Supplies and services — Land Services Group Trust Funds.............................................. — — — 33Natural Gas Authority SA.......................................................... — — — 77 227Ministerial Council on Energy ................................................... — — — 2 481Major Administered Project....................................................... 4 186 2 731 4 606 3 355Section 7 Disbursements............................................................ 4 341 4 178 4 178 —Service SA Disbursements......................................................... — — — 215 170

Interest and Other Financial Payments — Metropolitan (Woodville, Henley and Grange) Drainage Scheme....................................................................................... 26 27 — 28South Western Suburbs Drainage Scheme................................. 160 170 207 179

Grants and subsidies — Department of Water, Land and Biodiversity Conservation — Catchment Management Subsidy Scheme ................................. — — — 3 975Flood Mitigation ........................................................................ 72 70 70 8 007PT Research and Development .................................................. — — — 164Intra-sector Grants Expenditure — Courts Administration Authority ............................................... 1 127 1 100 1 100 648Emergency Services Levy.......................................................... 37 600 37 100 37 100 36 439Hospital Fund — Contribution................................................... 59 129 57 687 57 687 56 307PTD — Accreditation Authority ................................................ — — 977 —SAPOL — Expiation Notices .................................................... 14 976 14 755 14 755 1 136SAPOL — Firearms................................................................... 2 827 2 758 2 758 1 544State Taxation Office — Stamp Duties...................................... 165 207 161 704 161 704 133 427

Other — Motor Accident Commission ..................................................... 425 028 414 586 451 974 415 875Other Minor Contributions......................................................... 20 187 24 950 21 025 20 131Major Administered Project....................................................... — — — 829Registrar-General and Surveyor-General Statutory Act ........... 120 732 116 103 100 614 103 984Renewable Remote Power Generation Program ........................ — — — 1 975

Total operating payments 855 987 838 300 859 136 1 083 227

Government Of South Australia —

Appropriation for Administered Expenses................................. 11 884 11 719 6 819 16 419

Net cash provided by Government 11 884 11 719 6 819 16 419

Net cash provided by (+)/ used in (-) operating activities -1 916 -5 418 -7 268 1 683

6.71


Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07Budget

2005-06Actual

$000 $000 $000 $000

Investing Activities: Cash inflows

Metropolitan (Woodville, Henley and Grange) Drainage Scheme....................................................................................... 10 9 8 —South Western Suburbs Drainage Scheme................................. 162 152 153 —

Total investing receipts 172 161 161 —

Cash outflows

Major Administered Projects ................................................. — — — 26

Total investing payments — — — 26

Net cash provided by (+)/ used in (-) investing activities 172 161 161 -26

Financing Activities: Cash inflows

Net cash from restructure ....................................................... — — — 2 948

Total financing receipts — — — 2 948 Cash outflows

Metropolitan (Woodville, Henley and Grange) Drainage Scheme................................................................................... 10 9 8 —South Western Suburbs Drainage Scheme ............................. 162 152 153 —

Total financing payments 172 161 161 —

Net cash provided by (+)/ used in (-) financing activities -172 -161 -161 2 948

Net Increase (+) / decrease (-) in cash held -1 916 -5 418 -7 268 4 605

Opening cash balance as at 1 July 24 222 29 640 29 118 25 035

Closing cash balance as at 30 June 22 306 24 222 21 850 29 640

6.72


Reconciliation to Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Reconciliation to operating receipts (as per Administered Items Cash flow statement)

Operating receipts (as per Additional Information for Administrative Items) 842 187 821 163 845 049 1 068 491

Less: Costs transferred in from DAIS Administered Items

Major Administered Projects .................................................... — 65(a) — 1 596

Registrar-General and Surveyor-General Statutory Act........... — 58 331(a) 100 614 102 494

Land Services Group Trust Funds............................................. — -29(a) — 523

Section 7 Disbursements........................................................... — — (a) 4 178 —

Service SA Disbursements........................................................ — 570(a) — 215 170

Equals: Operating receipts (as per Administered Items Cash flow statement)

842 187 762 226 740 257 748 708

Reconciliation to operating payments (as per Administered Items Cash flow statement)

Operating payments (as per Additional Information for Administrative Items) 855 987 838 300 859 136 1 083 227


Major Administered Projects .................................................... — 2 039(a) 2 530 4 184

Registrar-General and Surveyor-General Statutory Act........... — 56 866(a) 100 614 103 984

Land Services Group Trust Funds............................................. — -206(a) — 33

Section 7 Disbursements........................................................... — — (a) 4 178 —

Service SA Disbursements........................................................ — 569(a) — 215 170

Parliamentary Salaries and Electorate and Expense Allowances ...............................................................................

—45(a) 154 100

Equals: Operating payments (as per Administered Items Cash flow statement)

855 987 778 987 751 660 759 756

(a) Transfers for the 2006–07 Estimated Result represent the payments for the period 1 July 2006 to 31 December 2006 reflected in the Cash flow statement for the Administered Items for the Department for Administrative and Information Services.

6.73



2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Reconciliation to investing activities (as per Administered Items Cash flow statement) 172 161 161 -26

Less: Costs transferred in from DAIS Administered Items — — — —

Equals: Investing activities (as per Administered Items Cash flow statement)

172 161 161 -26

Reconciliation to financing activities (as per Administered Items Cash flow statement)

Financing activities (as per Additional Information for Administrative Items) -172 -161 -161 2 948


Net cash from restructure.......................................................... — -17 429(a) — -2 398

Equals: Financing activities (as per Administered Items Cash flow statement)

-172 17 268 -161 5 346

(a) Transfers for the 2006–07 Estimated Result represent the payments for the period 1 July 2006 to 31 December 2006 reflected in the Cash flow statement for the Administered Items for the Department of Administrative and Information Services.

6.74

6.75

TABLE OF CONTENTS

AGENCY: TRANSADELAIDE

Objective .........................................................................................................................................6.77





1. Operate and Maintain Metropolitan Rail Passenger Transport Services .......................6.80



Balance sheet.........................................................................................................................6.83




6.76

PORTFOLIO: TRANSPORT, ENERGY AND INFRASTRUCTURE


Objective

To operate and maintain metropolitan passenger transport services.


Targets 2007-08 Highlights 2006-07 • Improve safety performance reflected by lost time injuries • Achieve 4 per cent annual patronage growth on train and tram • Commence implementation of customer service culture • Commence 3000/3100 railcar refurbishment • Progress Marion/Oaklands Transport Interchange

• Achieved 10 per cent annual patronage growth on trams • University level education of around 10 per cent of staff in

Safety Science • Reduced frequency and duration of lost time injuries • No significant rail safety incidents • Achieved 11/12 contracted key performance indicators • Reintroduced out of service 2000/2100 class railcars • Completed future stations study

6.77



2007-08Budget


2006-07 Budget

2005-06Actual

Program $000 $000 $000 $000 1. Operate and Maintain Metropolitan Rail

Passenger Transport Services........................ -78 905 407 140 -23 030

Total -78 905 407 140 -23 030

6.78


2007-08Budget


2006-07 Budget

2005-06Actual

Investments $000 $000 $000 $000

Works in Progress

Centralised Train Control System Upgrade — — — 1 056

Remedial works on cuttings and embankments on the Noarlunga Centre railway line ................................................... — 2 417 2 460 943

Tram Infrastructure Upgrade......................... — — — 22 437 Disability Discrimination Act Compliance ... — 1 545 — —

Transport Security......................................... — 1 718 780 2 233

Total Works in Progress — 5 680 3 240 26 669

Minor Works

Other Minor Works....................................... — — — 5

Total Minor Works — — — 5

Total Investing Payments — 5 680 3 240 26 674


Add: Cost of projects transferred out(a)

Replacement of Rail Track Points and crossings ....................................................... 243 3 241 3 465 1 374 Upgrade/replacement of bridges on the TransAdelaide rail network........................... 397 1 420 2 221 1 462

Marion Interchange ....................................... 1 395 3 543 5 500 412 Safe Railway Pedestrian Crossings ............... 731 2 602 2 700 331 Annual Capital Program................................ 3 053 5 957 6 000 6 641 Railcar Upgrading Program .......................... 2 925 5 700 5 700 —


8 744 28 143 28 826 36 894

(a) Reflects the transfer of rail assets to the Department for Transport, Energy and Infrastructure on 1 January 2008.

6.79


Program Information

Program 1: Operate and Maintain Metropolitan Rail Passenger Transport Services

Description/Objective: The delivery and maintenance of rail passenger transport services within the metropolitan area and the maintenance and management of associated rail infrastructure.


2007-08Budget


2006-07 Budget

2005-06Actual

Program 1: Operate and Maintain Metropolitan Rail Passenger Transport Services $000 $000 $000 $000

Expenses Employee benefits and costs ............................... 41 314 40 199 38 486 39 079 Supplies and services .......................................... 40 757 37 102 39 330 40 569 Depreciation and amortisation............................. 10 727 21 075 21 478 21 123 Other ................................................................... 5 313 7 959 7 959 6 742

Total expenses 98 111 106 335 107 253 107 513

Income Sale of goods and services................................... 80 078 93 633 94 818 97 544 Other ................................................................... 96 938 12 295 12 295 32 999

Total income 177 016 105 928 107 113 130 543

Net cost of providing services -78 905 407 140 -23 030

6.80

Program performance

Program: 1 Operate and Maintain Metropolitan Rail Passenger Transport Services 2007-08

Budget 2006-07


2005-06Actual

Expenditure $98 111 000 $106 335 000 $107 253 000 $107 513 000

Revenue $177 016 000 $105 928 000 $107 113 000 $130 543 000

Net cost of sub-program -$78 905 000 $407 000 $140 000 -$23 030 000

Reason for variance

The 2007-08 Budget for expenditure reflects a decrease in depreciation associated with the transfer of rail assets to the Department for Transport, Energy and Infrastructure (DTEI) on 1 January 2008.

The 2005-06 Actual for revenue includes tram related infrastructure revenue, in the form of capital grant funding from DTEI.

The 2007-08 Budget for revenue includes the write-off of TransAdelaide’s debt with the Treasurer, associated with the transfer of rail assets to DTEI on 1 January 2008.



2006-07 Target

2005-06Actual

Achievement of 11 out of the 12 PTD Renewal Benchmark KPIs:

• Trains 12 11 12 11

• Trams 12 12 12 12

Increase in patronage per annum:

• Trains 4.0% -0.5%(a) 4.5% 4.7%

• Trams 4.0% 10.0% 6.0% -1.2%(b)

Compliance with Rail Safety Act and AS4292 100% 100% 100% 100%

Footnotes

(a) Train patronage on Belair and Noarlunga services adversely affected by Bakewell Underpass disruptions.

(b) Tram patronage adversely affected by tram track upgrades.

6.81

TRANSADELAIDE


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 35 377 34 421 38 330 31 012 Long service leave .................................................................... — — — 1 688 Payroll tax ................................................................................ 1 979 1 926 — 2 051 Superannuation ......................................................................... 3 958 3 852 156 3 411 Other ......................................................................................... — — — 917Supplies and services — General supplies and services .................................................. 40 757 37 102 39 330 40 441 Consultancy expenses .............................................................. — — — 128Depreciation and amortisation ..................................................... 10 727 21 075 21 478 21 123Borrowing costs ............................................................................ 3 449 6 138 6 138 5 956Other expenses ............................................................................. 1 864 1 821 1 821 786

Total expenses .............................................................................. 98 111 106 335 107 253 107 513

Income

Intra government transfers ........................................................... — 1 414 1 414 — Other grants .................................................................................. 14 491 — — 25 872Sales of goods and services .......................................................... 80 078 93 633 94 818 97 544Interest revenues ........................................................................... 1 993 1 564 1 564 984Net gain or loss from disposal of assets ....................................... — — — -891Other income ................................................................................ 80 454 9 317 9 317 7 034

Total income ................................................................................. 177 016 105 928 107 113 130 543

Net cost of providing services ...................................................... -78 905 407 140 -23 030


Income — Appropriation ........................................................................... 2 720 2 702 2 702 2 356Expenses — Tax equivalent .......................................................................... — 693 768 10 531 Other ......................................................................................... — 5 289 5 401 34 757

Net income from / expenses to SA Government .......................... 2 720 -3 280 -3 467 -42 932

Net result before restructure(s) ..................................................... 81 625 -3 687 -3 607 -19 902

Net income from / expenses from administrative restructure(s) .. -644 249 — — —

Net result after restructure(s) ........................................................ -562 624 -3 687 -3 607 -19 902

6.82

TRANSADELAIDE

Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 27 551 11 630 11 459 22 106Receivables ................................................................................... 2 469 2 469 10 559 2 469Inventories .................................................................................... 4 354 4 354 5 934 4 309Other current assets ...................................................................... 81 81 83 81


Non current assets

Financial assets ............................................................................. 10 778 10 778 200 10 778Land and improvements ............................................................... — 223 025 238 256 220 052Plant and equipment ..................................................................... — 423 943 417 596 420 409Intangible assets ........................................................................... — 14 — 114Other non-current assets ............................................................... — — 19 628 —


Total assets ................................................................................... 45 233 676 294 703 715 680 318

Liabilities

Current liabilities

Payables ........................................................................................ 12 490 12 402 18 272 12 403Short-term borrowings ................................................................. — — 5 381 — Employee benefits — Salaries and wages ................................................................... 1 132 1 132 719 1 132 Annual leave ............................................................................. 3 093 3 093 2 885 3 093 Long service leave .................................................................... 976 976 763 976 Other ......................................................................................... 926 926 1 425 926Short-term provisions ................................................................... 2 837 2 837 3 073 2 837Other current liabilities ................................................................. 419 419 1 331 419



Long-term borrowings .................................................................. — 69 824 64 443 75 205Long-term employee benefits — Annual leave ............................................................................. 1 519 1 519 1 476 1 519 Long service leave .................................................................... 10 531 10 531 9 088 10 531 Other ......................................................................................... — — 70 — Long-term provisions ................................................................... 10 551 10 551 9 287 10 551Other non-current liabilities ......................................................... — 11 701 20 122 6 656



Net assets ...................................................................................... 759 550 383 565 380 554 070

6.83

TRANSADELAIDE

Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000

Equity

Contributed capital ....................................................................... 13 000 — — — Retained earnings ......................................................................... -12 241 75 874 100 650 79 561Asset revaluation reserve ............................................................. — 474 509 464 730 474 509

Total equity .................................................................................. 759 550 383 565 380 554 070


6.84

TRANSADELAIDE


Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... — 474 509 79 561 554 070Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... — 474 509 79 561 554 070





Estimated balance at 30 June 2007 — 474 509 75 874 550 383

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ............................................................................ — -474 509 — -474 509Net changes in reserves ................................................................ — — 474 509 474 509

Net income/expense recognised directly in equity for 2007-08 ... — -474 509 474 509 — Net result after restructure for 2007-08 ........................................ — — -562 624 -562 624

Total recognised income and expense for 2007-08 — -474 509 -88 115 -562 624

Equity contributions from SA Government ................................. 13 000 — — 13 000Repayment of equity contributions from SA Government .......... — — — —

Estimated balance at 30 June 2008 13 000 — -12 241 759

6.85

TRANSADELAIDE


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Employee payments ..................................................................... 41 314 40 186 38 486 40 534Supplies and services ................................................................... 40 669 37 147 39 375 42 597Borrowing costs ............................................................................ 3 449 6 138 6 138 5 992Net GST paid ................................................................................ — — — 12 039Other payments ............................................................................ 1 864 1 834 1 822 360


Cash inflows

Intra government transfers ........................................................... — 1 414 1 414 — Other grants .................................................................................. 2 790 5 045 5 500 25 131Sales of goods and services .......................................................... 80 078 93 633 94 818 98 617Interest received ........................................................................... 1 993 1 564 1 564 970Dividends received ....................................................................... — — — 971Net GST received ......................................................................... — — — 15 772Other receipts ............................................................................... 13 320 9 317 9 317 8 742


SA GOVERNMENT:

Appropriation ............................................................................... 2 720 2 702 2 702 2 356Payments — Tax equivalents ........................................................................ — 693 768 — Other ......................................................................................... — 5 289 5 401 34 757

Net cash provided by SA Government ......................................... 2 720 -3 280 -3 467 -32 401



Cash outflows

Purchase of property, plant and equipment .................................. 8 744 28 143 28 826 36 894


Cash inflows

Proceeds from sale of property, plant and equipment .................. 750 660 691 34 388

Cash generated from investing activities ..................................... 750 660 691 34 388


6.86

TRANSADELAIDE


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Repayment of borrowings ............................................................ 2 690 5 381 5 381 6 166


Cash inflows

Capital contributions from SA Government ................................ 13 000 — — —

Cash generated from financing activities ..................................... 13 000 — — —

Net cash provided by (+) / used in (-) financing activities ........... 10 310 -5 381 -5 381 -6 166

Net increase (+) / decrease (-) in cash equivalents ....................... 15 921 -10 476 -10 191 7 608



6.87

Agency: TransAdelaide


The transfer of rail assets to the Department for Transport, Energy and Infrastructure (DTEI) on 1 January 2008 affects both the Income statement and the Balance sheet.

The forecast Net cost of services for 2007-08 reflects a budgeted once-off gain of $67 million resulting from the write-off of TransAdelaide’s borrowings from the Treasurer, associated with the transfer of rail assets to DTEI.

The net expense from the proposed administrative restructure of $644.2 million in 2007-08 represents the value of net assets to be transferred from TransAdelaide to DTEI on 1 January 2008. A corresponding gain is shown in DTEI’s accounts. At the portfolio level, these accounts net out to nil.

6.88

6.89

Portfolio: Health

Minister for Health Minister for Mental Health and Substance Abuse

TABLE OF CONTENTS

PORTFOLIO SUMMARY



Ministerial Office Resources.................................................................................................7.4

South Australia’s Strategic Plan Targets ..............................................................................7.5

Agency Summary

Health ....................................................................................................................................7.8

PORTFOLIO: HEALTH


Minister Agency Programs Sub-Programs Health 1. Policy, Clinical Services

and Administration 1.1 Clinical Coordination 1.2 Policy and

Intergovernment Relations

1.3 Statewide Services Strategy

1.4 Aboriginal Health Policy and Program Planning

1.5 Corporate Services

2. Public Health Nil

The Hon. John Hill Minister for Health The Hon. Gail Gago Minister for Mental Health and Substance Abuse

3. Health Services 3.1 Central Northern Adelaide Health Service

3.2 Southern Adelaide Health Service

3.3 Repatriation General Hospital

3.4 Children, Youth and Women’s Health Service

3.5 Institute of Medical and Veterinary Science

3.6 Country Health SA 3.7 Incorporated Aboriginal

Primary Health Services 3.8 Other Health Services 3.9 South Australian

Ambulance Service

Notes: The Health Portfolio has a dual reporting responsibility to both the Minister for Health and the Minister for Mental Health and Substance Abuse. Mental health and substance abuse services are not separately identified as programs or sub-programs, as they are imbedded within the programs of Health.

During 2006-07, responsibility for the management of Metropolitan Domiciliary Care was transferred to the Minister for Families and Communities and for the purposes of the 2007-08 Health Portfolio Statements Metropolitan Domiciliary Care is being reported in the program structure of the Department for Families and Communities Portfolio Statements for all years.

7.1

Administered items

In addition to the above responsibilities, the portfolio administers the following items on behalf of the Ministers:

• the Minister for Health’s salary;

• the Health, Community and Disability Services Ministerial Council Secretariat; and

• Beyond Blue (which is included as a controlled item for the purposes of the 2006-07 Estimated Result and 2007-08 Budget).

Statutes


7.2

PORTFOLIO: HEALTH

The 2007-08 Budget represents a new direction for the South Australian health care system. The introduction of South Australia’s Health Care Plan will ensure the excellent health care services in this state are maintained and are able to meet future demand. It includes a 10 year plan to build the new Marjorie Jackson-Nelson Hospital, rebuild South Australia’s other major hospitals, invest in healthy lifestyles and illness prevention through new GP Plus Health Care Centres and Community Mental Health Centres, and make South Australia the best place for health professionals to work. As part of the 2007-08 Budget this government has committed an additional $2.1 billion in new capital works to support the reform process, which builds on the significant investment already made by this Government since 2002.

The Health Portfolio is comprised of the Department of Health, metropolitan health regions, Country Health SA and the South Australian Ambulance Service, with transactions occurring between these entities. The presentation of the Health Portfolio in the 2007-08 Portfolio Statements has changed compared with previous years. That is, the financial results, budgets and program structure of Health are being presented as one consolidated Health entity, which includes the elimination of transactions that occur between each of the entities that comprise Health. The program structure also reflects changes in administrative arrangements in the Department of Health, which will allow for a more coordinated management of the provision of health services across South Australia.

The change in methodology has been applied to the preparation of the net cost of providing services information for all years for consistency. This change therefore results in differences in the amounts reported in previous years Portfolio Statements. It does not however alter the underlying total aggregate amounts of expenditure and revenue. That is, the amounts reported in the 2006-07 Budget papers for expenditure, revenue and net cost of services of $3.057 billion, $3.046 billion and $1.650 billion respectively, are the same amounts being reported for the 2006-07 Budget as per the 2007-08 Portfolio Statements.

In the metropolitan area, three regions manage the provision of health services: Southern Adelaide Health Service, Central Northern Adelaide Health Service and Children, Youth and Women’s Health Service. The Repatriation General Hospital is a separately incorporated entity, while the Institute of Medical and Veterinary Science is incorporated under its own Act.

The boards of these health services are responsible for the provision of health services in the region in accordance with its constitution and the Health Service Agreement with the Minister for Health.

A new single country health region, Country Health SA, was established on 1 July 2006 to replace the seven previous country regions. The intent of the new arrangements is to provide a more integrated system of care across country South Australia.

7.3

WORKFORCE SUMMARY

FTEs as at 30 June

Agency 2007-08



Health Portfolio 26 685 26 434 26 044

Total 26 685 26 434 26 044

Notes: The presentation of FTE information for the purposes of the 2007-08 Portfolio Statements has changed to reflect Office of Public Employment reporting for actuals and the FTE Cap for the 2006-07 Estimated Result and 2007-08 Budget.

The increase in the 2007-08 Budget estimate includes 712 staff associated with the transfer of management of Modbury Hospital back to the Government of South Australia from 1 July 2007.

The 2005-06 Actual and 2006-07 Estimated Result includes FTE numbers for Metropolitan Domiciliary Care (MDC), which for the 2007-08 Budget estimate will be reflected in the FTE information for the Department for Families and Communities. The 2005-06 Actual for MDC was 593 FTEs.


2007-08 Budget

Cost of provision Minister $000 FTEs The Hon. John Hill 1 628 13.8

Note: Details concerning ministerial office resources for the Hon. Gail Gago are contained in the statements of the Portfolio of Environment and Conservation and the River Murray.

7.4

SOUTH AUSTRALIA’S STRATEGIC PLAN TARGETS – SA HEALTH LEAD AGENCY

Preventative Health

T2.1 Smoking:

Reduce the percentage of young cigarette smokers aged 15-29 by 10 percentage points to 17.9 per cent by 2014.

T2.2 Healthy weight:

Increase the proportion of South Australians aged 18 and over with healthy weight by 10 percentage points, to reach 52 per cent by 2014.

Healthy Life Expectancy

T2.4 Healthy South Australians:

Increase the healthy life expectancy of South Australians by 5 per cent for males and 3 per cent for females, to reach 73.2 years for males and 77 years for females by 2014.

T2.5 Aboriginal healthy life expectancy:

Lower the morbidity and mortality rates of Aboriginal South Australians to below the 1999-2001 adjusted rate of Aboriginal years of life lost of 168.7 years per 1000 population.

T2.6 Chronic diseases:

Increase by 5 percentage points, the proportion of people living with a chronic disease whose self-assessed health status is good or better, to reach 75.4 per cent by 2014.

Psychological Wellbeing

T2.7 Psychological wellbeing:

Equal or lower than the Australian average (13 per cent in 2004-05) for psychological distress by 2014.

Early Childhood

T6.3 Early childhood – birth weight:

Reduce the proportion of low birth weight babies, to lower than 7 per cent by 2014.

7.5

Diversity in the Public Sector (SA Health – Contributing Agency)

T6.24 Aboriginal employees

Increase the participation of Aboriginal people in the South Australian public sector, spread across all classifications and agencies, to 2 per cent by 2010 and maintain or better those levels through to 2014.

Performance Information:

South Australia’s Strategic Plan



2006-07 Target

2005-06 Actual

Smoking prevalence for 15-29 year olds (T2.1)(a)

23.5% 24.6% n.a. 23.4%

Healthy weight (T2.2)(b) 47% 46% n.a. 43%

Healthy adjusted life expectancy in years (T2.4)(c)

• Male 70.5 70.5 n.a. 70.4

• Female 75.1 75.1 n.a. 75.1

Aboriginal years of life lost in years (T2.5)(d) <168.7 <168.7 n.a. 151.7

Self assessed health status of people living with chronic disease (T2.6)(b)

72.9% 72.4% n.a. 69.3%

Psychological distress (T2.7)(e) <13% <13% n.a. 12.2%

Low birth weight (T6.3)(f) <7% 7% n.a. 7%

Aboriginal employees (T6.24) – Health Portfolio(g)

1.5% 1.0% 1.5% 0.9%

Footnotes (a) Source: The Cancer Council South Australia, SA Health Omnibus Survey. The 2005-06 Actual is based on 2006 data. The

2007-08 Target relates to the national average in 2004-05.

(b) Source: Department of Health, the South Australian Monitoring & Surveillance System. The 2005-06 Actual is based on 2006 data.

(c) Source: Department of Health, SA Burden of Disease study. The 2005-06 Actual is based on 2001-03 data.

(d) Source: Department of Health, SA Burden of Disease study. Data is age and sex adjusted rates per 1000 population. The 2005-06 Actual is based on 2001-03 data.

(e) Source: Australian Bureau of Statistics, National Health Survey. The 2005-06 Actual is based on the 2004-05 National Health Survey.

(f) Source: Department of Health, Pregnancy Outcomes Unit. The 2005-06 Actual is based on 2005 data.

(g) Source: Complete Human Resource Information System as provided through South Australian Department of Health Human Resource Data Warehouse. This indicator reflects the average percentage of full time equivalent employees in the South Australian Health Portfolio with identified Aboriginal and/or Torres Strait Islander status. It is noted that given the change in Portfolio responsibilities in 2006-07, the data presented for this indicator does not include employees of Metropolitan Domiciliary Care.

7.6

7.7

TABLE OF CONTENTS

AGENCY: HEALTH PORTFOLIO

Objective .........................................................................................................................................7.9





1. Policy, Clinical Services and Administration ................................................................7.14

2. Public Health..................................................................................................................7.20

3. Health Services ..............................................................................................................7.23



Balance sheet.........................................................................................................................7.41








7.8

PORTFOLIO: HEALTH


Objective

The Health Portfolio is responsible for leading and delivering a comprehensive and sustainable health system that aims to ensure healthier, longer and better lives for all South Australians by strengthening primary health care, enhancing hospital care, reforming mental health care and improving the health of Aboriginal people.



• Support the development of clinical networks in South Australia

• Finalise the Health Care Bill, which will provide new governance arrangements for the public health system and will replace those established under the (to be repealed) South Australian Health Commission Act 1976, Ambulance Services Act 1992 and Hospitals Act 1934

• Commence planning for the construction of the new state-of-the-art Marjorie Jackson-Nelson Hospital, which will replace the Royal Adelaide Hospital and accommodate some specialty services from The Queen Elizabeth Hospital

• Implement the GP Plus Strategy, which includes GP practice nurses, GP enhancement payments, a GP Plus Health Care Centre at Woodville; progress the development of a GP Plus Health Care Centre at Elizabeth; and plan and develop the GP Plus Health Care Centre at Marion and the governance structures for the GP Plus Health Care Networks

• Implement the Australian Better Health Initiative in a coordinated manner to support enhanced primary health care services

• Reduce the waiting time of people requiring restorative dental care, with a target of 18 months

• Enhance and have a coordinated approach to the management of ‘out-of-hospital’ programs

• Construct and fully operate the Mental Health Community Rehabilitation Facilities at Noarlunga and Playford

• Establish a substance misuse facility at Amata as well as staff and community accommodation

• Expand the Family Home Visiting Program to families living in north western metropolitan Adelaide

• Construct new ambulance stations at McLaren Vale, Kingston, Morgan, Quorn and Prospect, and refurbish the Snowtown and Lock stations

• Implement the SA Safety and Quality Program 2007–2011 • Participate in the Australian Medical Students Association

Convention 2007 in Adelaide • Renegotiate the Australian Health Care Agreement • Finalise the Mental Health Bill as part of mental health reform • Commence the implementation of the government’s agenda for

mental health reform

• Constructed GP Plus Health Care Centre at Aldinga • Redeveloped the Women’s and Children’s Hospital Emergency

Department • Completed significant building projects including new

ambulance stations at Murray Bridge, Port Pirie, Playford and Clare; refurbished Parndana and Penneshaw stations; and expanded the State Communication Centre

• Participated in the national Exercise Cumpston 06 to validate the capacity and capability of Australia’s health response to a pandemic situation

• Staged the second annual South Australian Medical Careers Expo and participated in the overseas recruitment drive for health professionals

• Reduced the number of people waiting for restorative dental care from 26 months in June 2006 to a forecast 23 months in June 2007

• Recruited 75 FTE mental health clinicians into new roles in the Central Northern Adelaide Health Service

• Transferred services from Glenside to the new Margaret Tobin Centre at the Flinders Medical Centre and the Repatriation General Hospital

• Integrated the Noarlunga Hospital and Flinders Medical Centre • Completed the redevelopment of Murray Bridge Hospital,

refurbished the Port Pirie Aged Care facility and constructed a new car park and refurbished the Paediatric Ward at the Flinders Medical Centre

• Expanded GP Plus Health Networks in the metropolitan area to include additional practices

• Completed the Mental Health Community Rehabilitation Facility (Elpida House)

• Expanded the Family Home Visiting Program to families living in eastern and south western metropolitan Adelaide, Mt Barker, Southern Hills and Murray Bridge

• Launched Burns SA to improve care for burns sufferers and prevent burn injuries

• Implemented the Clinical Governance Framework to improve patient quality and safety at Children, Youth and Women’s Health Service

• Initiated the Patient Journey Initiative to improve access to health services in Country SA

• Co-ordinated health drought response measures throughout Country SA

7.9


• Implement a community development strategy to strengthen the capacity of the government health system and community based services leading to improved health outcomes for Aboriginal people

• Lead the development of Regional Aboriginal Employment Strategies to increase Aboriginal employment levels consistent with South Australia’s Strategic Plan targets

• Vaccinate 85 per cent of girls in high schools with the Human Papillomavirus Vaccine

• Vaccinate 70 per cent of health care workers in public health facilities with the influenza vaccine

• Complete and implement a statewide Infection Control Strategic Plan

• Complete the pandemic influenza surveillance guidelines as part of the State Pandemic Influenza Plan

• Implement revised wastewater codes and regulations • Develop a predictive risk assessment model for arbovirus

transmission and mosquito nuisance problems in South Australia

• Develop and implement a Legionella code and accompanying regulations

• Finalise the review of the Public and Environmental Health Act 1987

• Implement the Strategic Directions Plan for South Australia’s Nursing and Midwifery Workforce including recruitment and retention

• Finalise the review of health and medical research in South Australia

• Implemented enhanced patient transfers to metropolitan hospitals for mental health patients living in Country SA

• Employed additional ambulance crews at Playford, Ashford, McLaren Vale, Port Lincoln and Murray Bridge stations

• Introduced first responder ambulance teams at Marion Bay and Port Kenny

• Launched the new Strategic Directions Plan for delivering the future for South Australia’s Nursing and Midwifery workforce

• Completed a planning process and commenced recruiting 26 allied health and professional mental health practitioners for the Healthy Young Minds program to provide early intervention services for children and young people

• Completed the planning and contractual process with the South Australian Division of General Practitioners to recruit 30 allied mental health workers to assist general practitioners in the delivery of frontline mental health services to the community

• Developed a Government response to the Social Inclusion Board Report – Stepping Up: A Social Inclusion Action Plan for Mental Health Reform 2007-2012

• Awarded 29 Enrolled Nursing Cadetships to Aboriginal people across the state, including remote locations

• Awarded an additional 45 Aboriginal Cadetships to Regional Health Services

• Introduced food safety programs for businesses serving vulnerable populations (hospitals, aged care facilities and child care establishments)

• Established a Food Safety and Audit Team to oversee the implementation of mandatory food safety programs

• Completed the pandemic influenza infection control guidelines as part of the state Pandemic Influenza Plan

• Released cervix screening resources to practitioners • Contracted for practice nurses to work in general practice

across the metropolitan area to support the provision of services closer to home and focus on prevention, early intervention and health promotion

• Facilitated the transfer of Modbury Hospital back to the South Australian Public Sector, effective from 1 July 2007

• Established a new single country health region, Country Health SA, on 1 July 2006, to replace the seven previous country regions

7.10



2007-08Budget


2006-07 Budget

2005-06 Actual

Program $000 $000 $000 $000 1. Policy, Clinical Services and

Administration............................................ 155 374 138 552 129 556 106 244

2. Public Health .............................................. 9 556 17 098 10 451 9 071 3. Health Services(a)........................................ 1 669 323 1 576 468 1 490 450 1 465 850

Total 1 834 253 1 732 118 1 630 457 1 581 165

Reconciliation to agency net cost of providing services (as per Income statement)

Add: net cost of programs/functions transferred out —

Metropolitan Domiciliary Care to the Department for Families and Communities.............................................. — 19 785 19 204 24 451

Equals: Net cost of providing services (as per agency Income statement)

1 834 253 1 751 903 1 649 661 1 605 616

(a) Excludes Metropolitan Domiciliary Care. Note: Explanations of variations for net cost of services summaries are contained in individual sub-program sections.

7.11


2007-08Budget


2006-07 Budget

2005-06 Actual

Investments $000 $000 $000 $000 New Works

Ceduna Health Service Redevelopment ..... 930 — — — Country Health – Solar Hot Water Service........................................................ 1 500 — — — Country Intermediate Care Facilities.......... 150 — — —

Elizabeth GP Plus Health Care Centre ....... 6 000 — — — Information and Communication Technology Projects(a) ............................... 11 460 — — — Lyell McEwin Hospital Redevelopment Stage C ....................................................... 3 780 — — —

Marjorie Jackson-Nelson Hospital ............. 1 200 — — — Metropolitan Intermediate Care Facilities ..................................................... 2 300 — — — Naracoorte Health Service.......................... 1 540 — — — Royal Adelaide Hospital – Ward Upgrade and Increased Capacity ................ 790 — — —

Total New Works 29 650 — — — New Works carried forward

Drug and Alcohol Services Consolidation ............................................. 800 400 400 —

Forensic Mental Health Facility ................. 1 100 130 1 300 370 Helen Mayo Mental Health ........................ 3 800 — — — Marion GP Plus Health Care Centre........... 9 500 — 500 — Metropolitan Domiciliary Care(b) ............... — 16 4 000 — Noarlunga Hospital Mental Health Unit ..... — — — 226 Port Augusta Renal Dialysis....................... 1 400 100 1 000 — Royal Adelaide Hospital Redevelopment Stage 4........................................................ — — 3 000 646 Rural and Remote Beds at Glenside Hospital ...................................................... 5 000 500 3 500 — Secure Mental Health Rehabilitation Unit............................................................. 1 050 150 300 — The Queen Elizabeth Hospital – Mental Health Unit ................................................. 3 800 — — —

Total New Works carried forward 26 450 1 296 14 000 1 242 Works in Progress

Aboriginal Community Health ................... — 521 — 249 Adelaide Aboriginal Step Down Service.... 2 485 1 000 1 400 5 Aldinga GP Plus Health Care Centre.......... — 1 316 1 600 884 Ambulance Stations – Career Staff............. 400 3 381 3 260 513 Ambulance Stations – Country Volunteer Staff ........................................... 2 260 2 607 3 707 1 127 Ambulance Stations – New and Upgraded .................................................... 4 600 1 540 1 940 —

7.12

2007-08Budget


2006-07 Budget

2005-06 Actual

Investments $000 $000 $000 $000 Ceduna Aboriginal Step Down Service — 930 900 70 Country Hospitals Sustainment .................. — 252 48 2 798 Flinders Medical Centre Car Park .............. — 5 582 5 765 1 183 Flinders Medical Centre ‘Margaret Tobin’ Mental Health Unit ......................... — 1 859 1 770 9 572 Flinders Medical Centre Paediatric Redevelopment........................................... — 2 750 1 650 —

Flinders Medical Centre Redevelopment ... 9 500 1 500 1 500 — Improving Care of Older Patients in Public Hospitals.......................................... 4 000 1 650 — — Lyell McEwin Hospital Redevelopment Stage B ....................................................... 21 296 8 760 9 000 1 240 Mental Health Community Rehabilitation Facilities.............................. 4 550 9 454 9 350 346

Metropolitan Hospitals Sustainment........... — 45 — 2 665 Mount Gambier Wellbeing Centre ............. — — — 1 039 Murray Bridge Hospital Redevelopment — 732 — 5 604 Port Pirie Aged Care................................... — 1 714 1 265 251 Repatriation General Hospital Mental Health Unit ................................................. — 967 1 300 7 112 Replacement of Linear Accelerators .......... 6 486 3 128 2 115 2 842 The Queen Elizabeth Hospital Medical Imaging Project .......................................... — — — 2 465 The Queen Elizabeth Hospital Redevelopment Stage 2 .............................. 22 000 25 311 25 220 7 609 Women’s and Children’s Hospital Emergency Department .............................. — 468 — 3 663 Other........................................................... — 1 113 — 6 057


Annual Programs

Ambulance Vehicle Replacement............... 7 106 4 635 4 635 9 769 Bio-Medical Equipment ............................. 15 765 14 321 13 331 13 145 Compliance Program.................................. 2 991 2 508 2 808 3 030 Health Medical Research Fund................... 459 250 — — Information Technology Projects – SA Ambulance Service............................... 435 617 3 253 1 954 Medical Equipment Replacement – SA Ambulance Service............................... 2 700 1 950 1 950 439

Minor Works .............................................. 12 120 6 048 8 193 7 764 Plant and Equipment – SA Ambulance Service........................................................ 1 569 1 556 1 556 1 619 Purchases from Special Purpose Funds ...... 4 620 8 376 8 000 16 062

Total Annual Programs 47 765 40 261 43 726 53 782

Total Investing Payments(a) 181 442(a) 118 137 129 516 112 318 (a) The Total Investing Payments in this table does not equal the investing payments line in the Financial Statements as it includes

$11.46 million held in contingency for ICT projects.

(b) From 1 July 2007, the Metropolitan Domiciliary Care budget has been transferred to the Department for Families and Communities.

7.13


Program Information

Program 1: Policy, Clinical Services and Administration

Description/Objective: This program is responsible for health policy, clinical services and administration associated with the provision of health services across country and metropolitan South Australia.


Program 1: Policy, Clinical Services and Administration

2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 51 291 48 581 43 112 41 745 Supplies and services........................................ 78 976 67 349 74 206 74 899 Grants and subsidies ......................................... 34 123 35 348 31 555 13 245 Depreciation and amortisation .......................... 585 760 760 1 276 Other................................................................. 5 568 6 575 3 637 3 976

Total expenses 170 543 158 613 153 270 135 141

Income Sale of goods and services................................ 4 218 7 537 13 892 19 735 Fees, fines and penalties ................................... — — — 44 Commonwealth revenue ................................... 114 1 462 234 2 896 Other................................................................. 10 837 11 062 9 588 6 222

Total income 15 169 20 061 23 714 28 897


7.14


Sub-program: 1.1 Clinical Coordination

Clinical Coordination is responsible for medical, nursing, midwifery and allied health professional policy advice, workforce planning and recruitment; the development, management and promotion of the statewide strategic Patient Safety Framework; the provision and management of grants for the delivery of blood and blood products for South Australia; and emergency management.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $36 494 000 $31 539 000 $33 313 000 $6 586 000

Revenue $62 000 $1 142 000 $21 000 $186 000


Reason for variance The variation in the net cost of the sub-program between the 2005-06 Actual and 2006-07 Budget mainly relates to the transfer of the Blood, Organ and Tissue Unit, including the transfer of National Blood Authority funding ($21 million) and nurse recruitment and retention funding ($2 million), from Sub-program 3.9 Other Health Grants. The increase in the net cost of the sub–program for the 2006-07 Budget also reflects additional funding of $1.7 million to support the whole of government strategy to prepare the state for an outbreak of pandemic influenza.

The variation in the net cost of the sub-program between the 2006-07 Budget and 2006-07 Estimated Result mainly relates to once-off additional Commonwealth revenue of $1.1 million received during 2006-07 and associated expenditure including Red Cross Transplantation Services, Safety and Quality projects, and the Exercise Cumpston Emergency Simulation initiative. In addition, $1.3 million was transferred to Clinical Coordination from Public Health during 2006-07 relating to the preparedness for pandemic influenza. These increases are offset by funding allocated from Clinical Coordination to health regions and other health entities for nurse retention funding ($1.9 million), pandemic influenza funding ($1.6 million) and BloodSafe Programs ($500 000).

The variation in the net cost of the sub-program between the 2006-07 Estimated Result and 2007-08 Budget mainly relates to the funding allocated to health regions and other health entities for the recruitment and retention of nurses in 2006-07 and additional funding in 2007-08 to the National Blood Authority.

Performance Commentary For blood supply related new initiatives and programs:

• The 2006-07 Estimated Result for red blood cell packs issued in 2006-07 is lower than the 2006-07 Target which reflects the ongoing impact that the South Australian BloodSafe Program is having on improving clinically appropriate use.

• Increases in leucocyte-depleted products, particularly in 2007-08, provides patients with enhanced access to higher quality blood products as part of a staged implementation of leuco-depletion endorsed by all Australian Health Ministers.



2006-07 Target

2005-06 Actual

No. of intern placements(a) 180(b) 181 170(b) 150

% of intern placements who are South Australian graduates

85% 86% 85% 85%

Blood Supply

No. of red blood cell packs issued to SA 70 620(c) 70 345(d) 71 850(c) 70 211

No. of therapeutic platelet doses issued to SA 9 860(c) 8 550(d) 8 400(c) 8 988

No. of Factor VIII international units issued 12 300 660(c) 11 764 500(d) 9 963 632(c) 10 624 750

Grams of Intravenous Immunoglobulin issued

128 651(c) 118 372(d) 120 000(c) 124 815

% of red cell packs leucocyte-depleted 50%(c) 28%(d) 28%(c) 24%

% of therapeutic platelet doses leucocyte-depleted

100%(c) 100%(d) 100%(c) 93%

Footnotes (a) Intern placements occur over a calendar year — the data therefore relates to the calendar years 2006, 2007 and the 2007-08 Target

relates to 2008.

(b) Targets reflect the success of initiatives to improve the attractiveness of South Australian internships.

(c) Blood targets are based on national supply plans submitted to Health Ministers at the beginning of each financial year.

(d) 2006-07 Estimated Result is based on the mid-year review conducted in February 2007.

7.15

Sub-program: 1.2 Policy and Intergovernment Relations

Policy and Intergovernment Relations is responsible for the provision of effective health intelligence, inter government relations, policy and strategic planning for the health system.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $22 193 000 $24 446 000 $21 665 000 $21 136 000

Revenue $686 000 $1 728 000 $703 000 $4 501 000


Reason for variance The variation in the net cost of the sub-program between the 2005-06 Actual and the 2006-07 Budget mainly relates to the timing of Commonwealth revenue for HealthConnect SA whereby funding was received in 2005-06 but expenditure of $1.7 million will be incurred in 2006-07. In addition, in 2005-06 one-off expenditure was incurred for the Alcohol Education and Rehabilitation Foundation ($700 000) and a transfer of library functions was undertaken to the Department for Families and Communities ($700 000).

The variation in the net cost of the sub-program between the 2006-07 Budget and 2006-07 Estimated Result mostly relates to additional revenue and expenditure from the Commonwealth including funding for the Outpatient Data Study ($400 000). In addition, the increase in expenditure includes funding to the National E-Health Transition Authority ($1.1 million) and deferred expenditure mainly relating to HealthConnect SA funding.

The variation in the net cost of the sub-program between the 2006-07 Estimated Result and the 2007-08 Budget is mainly due to expenditure incurred during 2006-07 for the HealthConnect SA initiative ($2.4 million). Due to the timing of negotiation of the 2006-07 Budget for HealthConnect SA, the approved allocation was not able to be incorporated in the 2007-08 Portfolio Statements. Funding for the HealthConnect SA project for 2007-08 and subsequent years is subject to separate negotiation.

Performance Commentary During 2006-07, the Policy and Intergovernment Relations Division:

• established a health economics collaborative as an unincorporated joint venture with the three South Australian universities; • established Department of Health Research Awards for PhDs and Doctorate positions; • prepared for the proclamation of the Chiropractic and Osteopathy Practice Act 2005, Physiotherapy Practice Act 2005, Dental

Practice (Miscellaneous) Amendment Act 2006, Occupational Therapy Practice Act 2005, Podiatry Practice Act 2005 and proclamation of the Election and General Regulations for these Acts, enabling these Acts to come into force; and

• developed a draft new Mental Health Bill and a draft Health Care Bill.

In 2007-08, the Policy and Intergovernment Relations Division aims to:

• release the SA Burden of Disease study report and the Social Health Atlas of SA (3rd edition) and release an internet based time series Social Health Atlas of SA;

• review the Advanced Directives (in collaboration with the Attorney-General’s Department and the Department for Families and Communities); including the Enduring Power of Attorney, the Medical Power of Attorney, the Enduring Power of Guardianship and the Anticipatory Direction (South Australia’s living will);

• finalise the Review into Health and Medical Research in South Australia and commence implementation of its findings; and • support the negotiation of the Australian Health Care Agreement 2008-2013.

7.16

Sub-program: 1.3 Statewide Services Strategy

Statewide Services Strategy is responsible for the overall design of health service strategies and plans in accordance with the Government Health Reform agenda and the Health Portfolio Strategic Plan.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $817 000 $331 000 — —

Revenue — — — —

Net cost of sub-program $817 000 $331 000 — —

Reason for variance The 2006-07 Estimated Result reflects the creation of a new division within the Department of Health, effective from 3 October 2006, which is responsible for the development of statewide service delivery plans. Funding for this sub-program has been allocated from within existing resources.

Performance Commentary In 2007-08 the Statewide Services Strategy Division will:

• establish eight statewide clinical networks in the areas of cancer, mental health, rehabilitation, cardiac, renal, maternal and neonatal, child health and orthopaedics;

• develop statewide service plans for palliative care and services for healthy older people; • develop a country clinical service plan; and • commence the implementation of the next phase of health reform including further development of the GP Plus Health Care

strategies.

7.17

Sub-program: 1.4 Aboriginal Health Policy and Program Planning

Aboriginal Health Policy and Program Planning is responsible for policy advice and capacity building for the portfolio and relevant Ministers on Aboriginal health related matters.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $2 782 000 $3 464 000 $2 925 000 $3 655 000

Revenue $347 000 $347 000 $747 000 $268 000


Reason for variance The variation in the net cost of the sub-program between the 2005-06 Actual and 2006-07 Budget is due mainly to expenditure incurred during 2005-06 for the South Australian Aboriginal Health Partnership and nurse recruitment and retention initiatives, and delayed expenditure relating to the Healthy Ways project.

The reduction in the net cost of the sub-program for the 2007-08 Budget primarily relates to the transfer of positions to other sub-programs and contract positions that ceased on 30 June 2007.

Performance Commentary During 2006-07 the Aboriginal Health Division within the Department of Health had an increased focus on workforce support and development for Aboriginal people across the Health Portfolio. In addition, the Aboriginal Health Division also focused on providing capacity building support to Aboriginal community organisations in their delivery of health programs.



2006-07 Target

2005-06 Actual

No. of Aboriginal Service Initiatives implemented(a)

20 20 19 19

% of achievement against the policy and program performance indicators identified in the Journey Paper

85% 85% 85% 85%

% of achievement of the outcomes in the Journey Paper within agreed timeframes

85% 85% 85% 85%

Footnotes (a) During 2006-07 the role of the Aboriginal Health Division was expanded to provide capacity building to Aboriginal community

organisations.

7.18

Sub-program: 1.5 Corporate Services

Corporate Services of the Department of Health supports activities delivered across the portfolio that do not relate directly to the provision of services to the public.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $108 257 000 $98 833 000 $95 367 000 $103 764 000

Revenue $14 074 000 $16 844 000 $22 243 000 $23 942 000


Reason for variance The increase in expenditure in the 2007-08 Budget compared with the 2006-07 Estimated Result includes the government’s commitment to pharmaceutical reforms in South Australia’s public hospitals, increased expenditure on information technology projects, and annual indexation.


The activities provided by this sub-program include:

• policy development and financial advice on behalf of the Ministers; • business services such as financial services, information management services, workforce management, strategic procurement and

insurance; and • information, communication and technology infrastructure maintenance and development.

7.19


Program Information

Program 2: Public Health

Description/Objective: Public Health is responsible for the development and delivery of policy and programs in relation to health protection and promotion and illness prevention as well as the provision of high level clinical advice to enhance departmental decision making.


Program 2: Public Health 2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 10 979 11 236 11 323 10 200 Supplies and services........................................ 30 964 33 697 12 695 14 796 Grants and subsidies ......................................... 10 427 9 713 8 423 6 754 Depreciation and amortisation .......................... 7 31 49 56 Other................................................................. — — 5 4

Total expenses 52 377 54 677 32 495 31 810

Income Sale of goods and services................................ 230 275 — 208 Fees, fines and penalties ................................... 937 768 410 334 Commonwealth revenue ................................... 41 079 35 756 21 497 21 733 Other................................................................. 575 780 137 464

Total income 42 821 37 579 22 044 22 739


7.20

Program: 2 Public Health

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $52 377 000 $54 677 000 $32 495 000 $31 810 000

Revenue $42 821 000 $37 579 000 $22 044 000 $22 739 000


Reason for variance The variation between the 2006-07 Estimated Result and 2006-07 Budget includes an additional $13.5 million of revenue and expenditure for delivery of vaccination programs in South Australia with the majority of funding relating the Human Papillomavirus Vaccine (HPV). The impact of deferred expenditure approved during 2006-07 is also a factor in the variation, which includes expenditure relating to the Meningococcal and Pneumococcal vaccination programs ($6.4 million).

The variance between the 2007-08 Budget and 2006-07 Estimated Result includes growth in Commonwealth revenue associated with the delivery of vaccination programs ($5.4 million) with the majority of the growth related to the delivery of the HPV vaccine. This increase is mostly offset by the impact of deferred expenditure in 2006-07 and the transfer of the Port Pirie Environmental Health Centre to Country Health SA (Sub-program 3.6).



2006-07 Target

2005-06 Actual

Disease Prevention and Management

No. of vaccines dispensed 780 000(a) 700 000(b) 700 000(c) 662 619

No. of providers participating in the Australian Childhood Immunisation register

1 650 1 640 1 640(d) 1 614

% of children fully immunised at age 12 months

95% 92% 93% 91%

% of children fully immunised at age 2 years 95% 93% 95% 93%

No. of women screened for cervical cancer(e) 160 000 159 545 153 500 160 142

% of women screened for cervical cancer in target population (aged 20–69 years) every 24 months(f)

66% 66.8% 66% 63.3%

Environmental Health Management

No. of children tested for blood lead level in Port Pirie(g)

650 650 1 000(h) 642

Average time for blood level results to be available

1 week 1 week 1 week 1 week

No. of licenses issued for poisons 1 650 1 670 1 450(i) 1 705

Proportion of licenses issued for poisons subject to review, inspection and/or investigation to establish compliance

5% 5%(j) 3% 3%

No. of licences issued for pest controllers 1 600 1 590 1 575 1 523

Proportion of licenses issued for pest controllers subject to review, inspection and/or investigation to establish compliance

8% 8%(j) 3% 3%

Proportion of pest control license exemptions reviewed(k)

100% 100% 100% 100%

No. of food samples analysed 600 1 000(l) 600 1 090(m)

No. of expiation notices served under Tobacco Products Regulation Act 1997

90(n) 79(o) n.a. 90

No. of premises inspected for compliance with the Tobacco Products Regulation Act 1997

900(p) 820 n.a. 900

% of water quality Type 1 incidents reported within 24 hours

100% 100% 100% 100%

% of initial health risk assessments finalised within 2 months of receipt of soil contamination data from the EPA(q)

>90% 88% 90% 93%

continued

7.21

Program: 2 Public Health continued



2006-07 Target

2005-06 Actual

Health Promotion

No. of health campaigns conducted 4(r) 6 6 6

No. of health promotion seminars/education programs conducted

35(r) 40(r) 56 54

No. of health promotion initiatives funded, implemented and evaluated

70(r) 85(r) 108 100

% compliance with legislative standards for tobacco: metropolitan

90% 90% 90% 98%

% compliance with legislative standards for tobacco: country

90% 80% 90% 94%

Footnotes (a) The anticipated increase in the number of vaccines dispensed in 2007-08 is due to a HPV vaccine catch up program that is in place.

The Rotavirus vaccination program also commences in 2007-08. In addition, both the Rotavirus and HPV vaccinations involve three dose courses and will significantly increase the number of doses distributed.

(b) Although the Rotavirus vaccine will not be added onto the funded schedule until July 2007, the increased 2006-07 Estimated Result is primarily due to the HPV vaccine coming onto the funded schedule (commenced April 2007).

(c) The 2006-07 Target was based on the prediction that the newly registered Rotavirus vaccine would be on the funded schedule.

(d) The success of the department’s campaigns to expand immunisation services in the local government sector is reflected in the small increase in the number of providers sending information to the Australian Childhood Immunisation Register.

(e) The 2006-07 Target was set based on the number of women residing in South Australia only. However, the 2007-08 Target, 2006-07 Estimated Result and 2005-06 Actual have been revised to include all women screened for cervical cancer who are residents of South Australia and non-South Australian residents to more accurately reflect the workload of SA Cervix Screening.

(f) This indicator reflects South Australian residents only.

(g) The target group continues to be reduced for children under four years of age with a particular focus on ‘at risk’ children up to two years of age. The program will not be pursuing those children who for four successive tests conducted at 6, 12, 24 and 36 months return a result of less than 10 μg/dL, nor will there be any further screening of the Port Pirie children attending primary schools.

(h) Blood lead levels have shown a decrease during the second half of 2006, which has continued into 2006-07. This trend was not forecast at the time of setting the 2006-07 Target.

(i) 2006-07 Target was based on the expectation that legislation revoking the requirements for Schedule 5 and 6 relating to wholesale dealers licenses would occur. The change however did not occur.

(j) 2006-07 Estimated Result has increased due to increased focus on the ‘inspection program’.

(k) All new pest control license exemptions are reviewed as they cannot be issued without a review. All old exemptions however are reviewed every three years in line with current policy.

(l) The anticipated increase in food samples analysed during 2006-07 in comparison to the 2006-07 and 2007-08 Targets is due to increased numbers of food samples being collected in the investigation of cases of food borne illness.

(m) The high 2005-06 Actual is due to a number of surveys being undertaken involving large numbers of food samples.

(n) The 2007-08 Target for expiation notices served under the Tobacco Products Regulation Act 1997 is based on the assumption that there will be a substantial increase in the number of notices served due to new point of sale legislation that is being introduced. This however may be offset as laws for venues that go smoke free have become clearer and thus will reduce the number of expiation notices served under the Act.

(o) The reduction in the number of expiation notices served in 2006-07 is not reflective of a reduction of enforcement effort, but is related to the shift to a more educative role as the Environment Health Unit assists the industry with the implementation of a wide range of new legislation.

(p) As new legislation is introduced, it is anticipated that there will be an increase in premises inspected for compliance.

(q) The definition of this performance indicator has been revised to include only the initial health risk assessments. This revision was required as some investigations are more extensive and require extended time to complete.

(r) The 2006-07 Estimated Result and 2007-08 Target reflect functions now being undertaken by health regions. In addition, priority is being given to funding of more substantial initiatives rather than smaller scale projects.

7.22


Program Information

Program 3: Health Services

Description/Objective: Health Services is responsible for hospital based tertiary care and other acute services as well as rehabilitation, mental health and other community health services within the metropolitan and country areas, the provision of grants to non-government organisations for the provision of health services, and Aboriginal controlled primary health services provided to Aboriginal communities in Ceduna and Port Augusta and surrounding areas.


Program 3: Health Services 2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 2 034 653 1 883 422 1 792 305 1 762 179 Supplies and services........................................ 883 154 887 013 833 036 827 357 Grants and subsidies ......................................... 86 643 87 633 86 364 86 809 Depreciation and amortisation .......................... 83 374 84 343 84 349 89 794 Other................................................................. 55 403 50 621 24 090 27 024

Total expenses 3 143 227 2 993 032 2 820 144 2 793 163

Income Sale of goods and services................................ 348 977 322 987 308 121 275 906 Fees, fines and penalties ................................... 2 362 2 174 2 532 171 Commonwealth revenue ................................... 965 839 937 033 900 659 896 176 Other................................................................. 156 726 154 370 118 382 155 060

Total income 1 473 904 1 416 564 1 329 694 1 327 313

Net cost of providing services 1 669 323 1 576 468 1 490 450 1 465 850 Notes: The movement in expenditure between the 2007-08 Budget and 2006-07 Estimated Result includes the transfer of Metropolitan

Domiciliary Care to the Department for Families and Communities of $56.9 million in expenditure and $37 million in income.

The transfer of the management of Modbury Hospital back to the South Australian Government in 2007-08 has resulted in a change in treatment of expenditure incurred by the Health Portfolio, that is, $44.9 million of expenditure that was treated as a supplies and services expense representing part of the annual contract management fee to Healthscope Limited is now recognised as employee related expenses from 2007-08 representing the transfer of employees.

Due to the change in presentation of financial information for the 2007-08 Budget compared with previous years, the Actual results and Budgets for Program 3 include allocations of all Commonwealth revenue including revenue received under the Australian Health Care and Department of Veterans’ Affairs Agreements. In previous years, Commonwealth revenue, received by the Department of Health and then transferred to health regions and other health entities, was excluded from the calculation of the sub-program net cost of services. Hence, as the sub-program costs now include an allocation of all Commonwealth revenue, the net cost of the sub-programs are lower compared with amounts reported in previous years. The net cost of services reflects the net cost to the Government of South Australia.

During 2006-07, the Department of Health reviewed the performance indicators reported in previous State Budget papers with a view to aligning them with those currently reported and monitored for internal reporting purposes, Health Service Agreements and other external purposes such as Commonwealth Government reporting. The performance indicators included in the 2007-08 Health Portfolio Statement reflect the outcome of this review.

7.23


Sub-program: 3.1 Central Northern Adelaide Health Service

The Central Northern Adelaide Health Service provides hospital based tertiary care including medical, surgical and other acute services, rehabilitation, mental health, dental, breast screening and other community health services within the central northern Adelaide metropolitan area.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $1 270 859 000 $1 209 950 000 $1 144 510 000 $1 105 172 000

Revenue $574 760 000 $558 333 000 $537 773 000 $539 196 000


Reason for variance The increase in expenditure between the 2006-07 Estimated Result and 2006-07 Budget is due to a number of factors including additional funding received during 2006-07 to meet continued increased demands on hospital services and rising non-wage costs associated with the delivery of services, additional Enterprise Agreement supplementation, additional funding to meet growth in employee related liability provisions, additional expenditure associated with projected increases in non-South Australian Government appropriation revenue sources of the Central Northern Adelaide Health Service (CNAHS), and offset by the transfer of funding associated with the transfer of mental health services from Glenside to the new Margaret Tobin Centre and Repatriation General Hospital.

The increase in expenditure between the 2007-08 Budget and 2006-07 Estimated Result is primarily related to annual indexation, including approved Enterprise Agreements and additional funding associated with 2006-07 Budget decisions, which for CNAHS will mainly fund further expansion of hospital services, $7.8 million associated with the transfer of Modbury Hospital back to the public health sector, and additional funding to increase the medical workforce. In addition, as part of the 2007-08 Budget, additional expenditure has been approved to implement the health reform strategy. The 2007-08 Budget also incorporates savings relating to the consolidation of health services associated with the health reform strategy. The increase in revenue relates to non-South Australian Government appropriation sources, which fund additional expenditure.

Performance Commentary At the time of preparing the 2007-08 Health Portfolio Statement, the Health Service Agreement between CNAHS and the Minister for Health had not been completed and as such the finalisation of the 2007-08 Health Service Agreement may result in a change in funding arrangements and activity targets.



2006-07 Target

2005-06 Actual

In Hospital Services (aggregated data for The Queen Elizabeth Hospital, Lyell McEwin Hospital, Royal Adelaide Hospital, Modbury Hospital and Glenside)

Resource weighted hospital outputs(a) 231 260 226 262 218 455 216 488

% of elective surgery patients treated within accepted timeframes for their urgency category:

• urgent (30 days) 100% 77% 90% 77%

• semi-urgent (90 days) 85% 80% 85% 77%

• non-urgent (1 year) 90% 88% 90% 86%

% of patients attending emergency departments who were treated within accepted timeframes for their urgency category:

• resuscitation (immediately) 100% 98% 100% 98%

continued

7.24

Sub-program: 3.1 Central Northern Adelaide Health Service continued



2006-07 Target

2005-06 Actual

• emergency (10 minutes) 75% 69% 80% 63%

• urgent (30 minutes) 60% 44% 75% 42%

• semi-urgent (60 minutes) 60% 46% 70% 42%

• non-urgent (120 minutes) 85% 79% 70% 75%

Day of surgery admission rate(b)

• Royal Adelaide Hospital 80% 64% 90% 57%

• The Queen Elizabeth Hospital 90% 77% 90% 78%

• Lyell McEwin Hospital 98% 96% 90% 96%

• Modbury Hospital 90% 88% 90% 89%

Patient satisfaction level(c) 90% 85% n.a. 85%

% of patients charged for admission(d) 10.4% 7.8% n.a. 7.6%

Relative Stay Index(e)

• Royal Adelaide Hospital 1.00 1.03 1.00 1.05

• The Queen Elizabeth Hospital 1.00 1.08 1.00 1.06

• Lyell McEwin Hospital 0.93 0.93 1.00 0.96

• Modbury Hospital 0.94 0.94 1.00 0.94

Out of Hospital Services

Potentially preventable admission rate(f) 2 586 2 995 2 586 2 872

Rate of hospital admissions of older people as a result of a fall in the community(g)

50 57 50 54

No. of hospital avoidance packages(h) 8 740 8 740 6 811 8 537

BreastScreen SA

Total no. of women screened for breast cancer(i)

69 000 68 000 69 000 69 096

Breast screening participation rate for women aged 50 to 69 years of age (every 24 months)(j)

59% 57% 59% 59%

SA Dental Service

Total hours of service

• school dental(k) 88 000 88 000 93 700 92 001

• adult dental 110 000 110 000 111 115 109 530

Average Adult Waiting Time (months)

• restorative(l) 18 23 23 26

• denture(m) 39 41 41 38

• specialist(n) 33 33 35 30

Primary Health Care Services

No. of hours of service 85 000 84 792 n.a. 77 016

% of clients who are Aboriginal and Torres Strait Island clients(o)

4.1% 2.7% 4.1% 2.5%

continued

7.25

Sub-program: 3.1 Central Northern Adelaide Health Service continued

Footnotes (a) This indicator combines public hospital admitted, including intensive care unit patients, emergency department and outpatient

service data into a single output measure known as an ‘equisep equivalent’. This is achieved through the weighting of the various services according to their estimated relative resource use in 2006-07. It is noted this indicator does not include previously reported data on rehabilitation bed days, nursing home type occupied bed days or outreach services provided by CNAHS.

(b) This indicator measures the percentage of elective overnight stay patients who had surgery on the day of their admission to hospital. Higher day of surgery rates have been shown to be associated with improved patient access and outcomes (for example lower infection rates).

(c) Source: 2005 Overnight Patient Evaluation of Health Services Survey. The average satisfaction score from the telephone survey of a sample of patients who received at least one night of care in the South Australian public hospital system during 2005. The Overnight Survey is conducted biannually. An average satisfaction score of 90 per cent and above reflects a high level of satisfaction and is considered to be the benchmark for performance.

(d) This indicator measures the percentage of total admissions to public hospitals where patients elect to use their private health insurance or pay their own costs (including non reciprocal agreement overseas and uninsured patients). The indicator excludes Compensable and Department of Veterans’ Affairs eligible patient admissions.

(e) This indicator measures the actual number of acute care occupied bed days provided by the hospital divided by the expected number of acute care occupied bed days for hospitals of the same peer group (casemix profile) in Australia, as defined by the Australian Institute of Health and Welfare. An index of 1.00 indicates that the average length of a patient’s stay in the hospital is equal to the national average for the hospital's peer group. This indicator is age-adjusted.

(f) This indicator measures the rate of admission to public and private hospitals per 100 000 population for conditions that are sensitive to the availability and effectiveness of out of hospital services (including primary and community care). These conditions include vaccine preventable (for example influenza), potentially preventable acute (for example kidney infection) and potentially preventable chronic conditions (for example asthma).

(g) This indicator measures the number of Aboriginal and Torres Strait Islander people aged 55 years and over and non Aboriginal and Torres Strait Islander people aged 75 years and over who were admitted to hospital as a result of a fall in the community. The effectiveness of primary and community health care can influence the rates of hospitalisation of older people for falls through prevention of falls and reduction in the severity of injury from falls.

(h) This indicator measures the number of Hospital Avoidance and Hospital Supported Discharge care packages provided to clients in their place of residence enabling them to avoid an admission to hospital or facilitate early discharge from hospital. Therefore, this service contributes to the alleviation of demand on the acute hospital system. From 1 October 2006, a new service provider was appointed for the Metro Home Link service. The 2006-07 Target was based on the package acquittal of the previous service provider. Renegotiation of package prices with the new provider has resulted in the ability to deliver more packages from within program funds. The 2006-07 Estimated Result also includes additional funding that was re-allocated to CNAHS from the Southern Adelaide Health Service and the Children, Youth and Women’s Health Service.

(i) This indicator measures the total number of screens for breast cancer. Additional funding has been allocated to Breastscreen SA from 2007-08.

(j) The participation rate for the 24 month period ending 31 December 2006 is based on the actual number of women screened over the average Australian Bureau of Statistics (ABS) estimated residential population for 2005 and the ABS projected population figures for 2006. The aim under the National Accreditation Standards (2004) is that at least 70 per cent of women aged 50-69 years participate in screening over a 24 month period.

(k) The 2006-07 Estimated Result and 2007-08 Target in part reflects the impact of consent requirements, whereby parents must provide informed consent before a child is treated.

(l) This indicator is commensurate to the ‘Community dental services – average waiting time’ indicator reported in 2006-07 Health Portfolio Statement. The continued reduction in the restorative waiting list is a result of ongoing funding of $3 million per annum provided as part of the 2006-07 Budget, effective demand management and additional treatment provided by the increased numbers of dental students.

(m) The waiting list for dentures has increased as the cost of purchasing dentures from the private sector under the Pensioner Denture Scheme has increased in line with the increases in the Veterans’ Affairs Local Dental Officer Fee Schedule (that is used as a basis for public dental care). In September 2006, the State Government approved increases in patient co-payments to cover the increase in the cost of purchasing dentures. This decision will begin to reduce denture waiting lists slowly over the next three years.

(n) This indicator is commensurate to the ‘Specialist dentistry – average waiting time’ indicator reported in 2006-07 Health Portfolio Statement. It is anticipated that specialist waiting lists will reduce to 33 months in 2006-07. This waiting time should be maintained for 2007-08 but is dependent on the number and type of postgraduate students in specialist courses at the Dental School who undertake much of the treatment.

(o) This is an access indicator that measures the percentage of clients receiving services from selected Primary Health Care services who are identified as Aboriginal and/or Torres Strait Islander status. The selected services for this indicator include: Adelaide Central Community Health Centre, Northern Metro Community Health Centre, Northern Palliative Care Services, Central Northern Mental Health Service – Modbury, Central Northern Mental Health Service, BreastScreen SA and SA Dental Service. The targets are based on the weighted estimated Aboriginal and Torres Strait Islander population of the regional Health Service.

7.26

Sub-program: 3.2 Southern Adelaide Health Service

The Southern Adelaide Health Service provides hospital based tertiary care including medical, surgical and other acute services, rehabilitation, mental health, and other community health services within the southern metropolitan area.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $477 786 000 $451 895 000 $412 907 000 $421 771 000

Revenue $204 074 000 $197 979 000 $185 247 000 $187 400 000


Reason for variance The increase in expenditure between the 2006-07 Estimated Result and 2006-07 Budget is due to a number of factors including additional funding received during 2006-07 to meet continued increased demands on hospital services and rising non-wage costs associated with the delivery of services, additional Enterprise Agreement supplementation, additional expenditure to reflect growth in employee related liability provisions, additional expenditure associated with projected increases in non-South Australian Government appropriation revenue sources of the Southern Adelaide Health Service (SAHS) and additional funding associated with the transfer of mental health services from Glenside to the new Margaret Tobin Centre.

The increase in expense between the 2007-08 Budget and 2006-07 Estimated Result is mainly related to annual indexation including approved Enterprise Agreements and additional funding associated with 2006-07 Budget decisions, which for SAHS will mainly fund further expansion of hospital services, additional funding for Drug and Alcohol Services SA, and additional funding to increase the medical workforce. As part of the 2007-08 Budget, additional expenditure was approved to implement the health reform strategy. The increase in revenue relates to non-South Australian Government appropriation sources, which funds additional expenditure.

Performance Commentary At the time of preparing the 2007-08 Health Portfolio Statement, the Health Service Agreement between SAHS and the Minister for Health had not been completed and as such finalisation of the 2007-08 Health Service Agreement may result in a change in funding arrangements and activity targets.



2006-07 Target

2005-06 Actual

In Hospital Services (aggregated data for Flinders Medical Centre and Noarlunga Health Service)

Resource weighted hospital outputs(a) 93 900 91 929 87 303 86 570


• urgent (30 days) 100% 84% 90% 79%

• semi-urgent (90 days) 90% 81% 85% 77%

• non-urgent (1 year) 100% 98% 90% 92%




• urgent (30 minutes) 75% 65% 75% 68%



Day of surgery admission rate(b)

• Flinders Medical Centre 80% 76% 90% 77%

• Noarlunga Health Service 100% 95% 90% 96%

Patient satisfaction level(c) 90% 85% n.a. 85%

continued

7.27

Sub-program: 3.2 Southern Adelaide Health Service continued



2006-07 Target

2005-06 Actual



• Flinders Medical Centre 1.00 1.02 1.00 1.03

• Noarlunga Health Service 1.00 1.01 1.00 1.01


Potentially preventable admission rate(f) 2 813 3 583 2 813 3 420


50 63 50 63

No. of hospital avoidance packages(h) 4 405 4 455 5 055 4 642

Drug and Alcohol Services South Australia

No. of in-patient separations (non-hospital)(i) 1 300 1 310 1 100 1 123

No. of outpatients attendances 30 500 30 502 29 500 29 834

Primary Health Care Services

No. of hours of service 80 000 79 700 n.a. 63 742

% of clients who are Aboriginal and Torres Strait Island clients(j)

2.8% 5.1% 2.8% 3.9%

GP Plus Health Care Centres

No. of client services(k) 9 600 5 000 4 800 n.a.


service data into a single output measure known as an ‘equisep equivalent’. This is achieved through the weighting of the various services according to their estimated relative resource use in 2006-07. It is noted this indicator does not include previously reported data on outreach services provided by the SAHS.



(d) This indicator measures the percentage of total admissions to public hospitals where patients elect to use their private health insurance or pay their own costs (including non reciprocal agreement overseas and uninsured patients). The indicator excludes Compensable and Department of Veterans’ Affairs eligible patient admissions.

(e) This indicator measures the actual number of acute care occupied bed days provided by the hospital divided by the expected number of acute care occupied bed days for hospitals of the same peer group (casemix profile) in Australia, as defined by the Australian Institute of Health and Welfare. An index of 1.00 indicates that the average length of a patients stay in the hospital is equal to the national average for the hospital's peer group. This indicator is age-adjusted.



continued

7.28

Sub-program: 3.2 Southern Adelaide Health Service continued

Footnotes

(h) This indicator measures the number of Hospital Avoidance and Hospital Supported Discharge care packages provided to clients in their place of residence enabling them to avoid an admission to hospital or facilitate early discharge from hospital. Therefore, this service contributes to the alleviation of demand on the acute hospital system. From 1 October 2006, a new service provider was appointed for the Metro Home Link service. From this date, discharge and avoidance packages for Repatriation General Hospital (RGH) under the Metro Home Link program are contract managed by SAHS. The RGH avoidance packages are therefore included in the indicator reported for SAHS. The 2006-07 Target was based on the package acquittal of the previous service provider. Renegotiation of package prices with the new provider has resulted in the potential to deliver more packages from within approved program funds. It is also noted that during 2006-07 funding was redirected to the Central Northern Adelaide Health Service.

(i) This indicator includes clients accessing withdrawal services and residential rehabilitation.

(j) This is an access indicator that measures the percentage of clients receiving services from selected Primary Health Care services who are identified as Aboriginal and/or Torres Strait Islander status. The selected services for this indicator include: Inner Southern Community Health Service, Noarlunga Community Health Centre, Southern Mental Health Service and Drug and Alcohol Services SA. The target for this indicator is based on the weighted estimated Aboriginal and Torres Strait Islander population of the regional health service.

(k) Data only relates to the Aldinga GP Plus Health Care Centre. The 2007-08 Target represents the first full year of operation.

7.29

Sub-program: 3.3 Repatriation General Hospital

The Repatriation General Hospital provides hospital based acute services, rehabilitation, mental and palliative health care, principally to veterans and persons living within the southern metropolitan area.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $125 329 000 $120 199 000 $114 149 000 $119 429 000

Revenue $73 791 000 $71 594 000 $72 020 000 $71 909 000


Reason for variance The increase in expenditure between the 2006-07 Estimated Result and 2006-07 Budget is due to a number of factors including additional funding received during 2006-07 to meet rising non-wage costs associated with the delivery of services, additional Enterprise Agreement supplementation, additional expenditure to reflect growth in employee related liability provisions, and additional funding associated with the transfer of mental health services from Glenside to the new facility at the RGH.

The increase in expenditure between the 2007-08 Budget and 2006-07 Estimated Result is mainly related to annual indexation including approved Enterprise Agreements. The increase in expenditure is offset by saving strategies approved as part of the 2006-07 Budget.

Performance Commentary At the time of preparing the 2007-08 Health Portfolio Statement, the Health Service Agreement between the RGH and the Minister for Health had not been completed and as such finalisation of the 2007-08 Health Service Agreement may result in a change in funding arrangements and activity targets.



2006-07 Target

2005-06 Actual

In Hospital Services

Resource weighted hospital outputs (a) 16 749 16 749 17 159 16 991


• urgent (30 days) 100% 57%(b) 90% 73%

• semi-urgent (90 days) 80% 77% 85% 82%

• non-urgent (1 year) 95% 90% 90% 86%

Day of surgery admission rate(c) 95% 86% 90% 86%

Patient satisfaction level(d) 90% 89% n.a. 89%

% of patients charged for admission(e) 7.6% 5.7% n.a. 4.6%

Relative Stay Index(f) 1.00 1.07(g) 1.00 1.07(g)

Footnotes (a) This indicator combines Public Hospital admitted, including Intensive Care Unit patients, Emergency Department and Outpatient

Service data into a single output measure known as an ‘equisep equivalent’. This is achieved through the weighting of the various services according to their estimated relative resource use in 2006-07. It is noted this indicator does not include previously reported data on rehabilitation occupied bed days or outreach services provided by the RGH.

(b) The achievement of this category in 2006-07 has been adversely affected by the loss of experienced staff providing urology services. To improve service delivery, an additional registrar was appointed in March 2007, two new urology consultants commenced in April and May 2007, and the number of urology theatre sessions was increased, which collectively will produce a significant improvement in 2007-08.

(c) This indicator measures the percentage of elective overnight stay patients who had surgery on the day of their admission to hospital. Higher day of surgery rates have been shown to be associated with improved patient access and outcomes (for example lower infection rates).

(d) Source: 2005 Overnight Patient Evaluation of Health Services Survey. The average satisfaction score from the telephone survey of a sample of patients who received at least one night of care in the South Australian public hospital system during 2005. The Overnight Survey is conducted biannually. An average satisfaction score of 90 per cent and above reflects a high level of satisfaction and is considered to be the benchmark for performance.

(e) This indicator measures the percentage of total admissions to public hospitals where patients elect to use their private health insurance or pay their own costs (including non reciprocal agreement overseas and uninsured patients). The indicator excludes Compensable and Department of Veterans’ Affairs eligible patient admissions.

continued

7.30

Sub-program: 3.3 Repatriation General Hospital continued

Footnotes (f) This indicator measures the actual number of acute care occupied bed days provided by the hospital divided by the expected number

of acute care occupied bed days for hospitals of the same peer group (casemix profile) in Australia, as defined by the Australian Institute of Health and Welfare. An index of 1.00 indicates that the average length of a patients stay in the hospital is equal to the national average for the hospital's peer group. This indicator is age-adjusted.

(g) The relative stay index of 1.07 is due to the higher average length of stay for patients treated in the hospital’s mental health ward. This patient cohort comprises predominantly war veterans with special needs.

7.31

Sub-program: 3.4 Children, Youth and Women’s Health Service

The Children, Youth and Women’s Health Service provides hospital, mental and community health services children, youth and women across the state.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $321 698 000 $300 222 000 $287 368 000 $278 610 000

Revenue $148 418 000 $138 305 000 $129 698 000 $129 121 000


Reason for variance The increase in expenditure between the 2006-07 Estimated Result and 2006-07 Budget is due to a number of factors including additional funding received during 2006-07 to meet increased demands on hospital services and rising non-wage costs associated with the delivery of those services, additional Enterprise Agreement supplementation, funding to meet growth in employee related liability provisions, additional expenditure associated with projected increases in non-South Australian Government appropriation revenue sources of the Children, Youth and Women’s Health Service (CYWHS), and transfer of child protection funding to CYWHS.

The increase in expense between the 2007-08 Budget and 2006-07 Estimated Result is primarily related to annual indexation including approved Enterprise Agreements and additional funding associated with 2006-07 Budget decisions, which for CYWHS will mainly fund further expansion of hospital services, expansion of the adolescent rehabilitation program and expansion of the Family Home Visiting Scheme. Additional funding was approved as part of the 2006-07 Budget in 2007-08 to increase the medical workforce. Non-South Australian Government appropriation revenue sources, including Commonwealth revenue, are also forecast to increase in 2007-08, which will fund increased expenditure and funding has been approved as part of the 2007-08 Budget to implement the health reform strategy.

Performance Commentary During 2006-07, the sustained home visiting (Family Home Visiting) program was introduced into new areas, but the implementation was delayed until September 2006 and the full year targets will not be met.

At the time of preparing the 2007-08 Health Portfolio Statement, the Health Service Agreement between CYWHS and the Minister for Health had not been completed and as such finalisation of the 2007-08 Health Service Agreement may result in a change in funding arrangements and activity targets.



2006-07 Target

2005-06 Actual

In Hospital Services (Women’s and Children’s Hospital)

Resource weighted hospital outputs (a) 50 674 50 083 48 999 48 533


• urgent (30 days) 100% 86% 90% 83%

• semi-urgent (90 days) 85% 80% 85% 76%

• non-urgent (1 year) 95% 94% 90% 98%




• urgent (30 minutes) 75% 65% 75% 64%



Day of surgery admission rate(b) 95% 88% 90% 82%

Patient satisfaction level(c) 90% 85% n.a. n.a.


Relative Stay Index(e) 1.00 1.07 1.00 1.10

continued

7.32

Sub-program: 3.4 Children, Youth and Women’s Health Service



2006-07 Target

2005-06 Actual


No. of hospital avoidance packages(f) 990 987 1 066 945

Child and Family Health Services

No. of client services(g) 128 650 128 650 n.a. 127 599

% of clients who are Aboriginal and Torres Strait Island clients(h)

4.2% 5.5% 4.2% 6.8%

No. of families receiving sustained home visiting services

1 480 1 160 1 300 965

Footnotes

(a) This indicator combines public hospital admitted, including intensive care unit patients, emergency department and outpatient service data into a single output measure known as an ‘equisep equivalent’. This is achieved through the weighting of the various services according to their estimated relative resource use in 2006-07. It is noted this indicator does not include previously reported data on outreach services provided by CYWHS.


(c) Source: 2006 Maternity Patient Evaluation of Health Services Survey. The average satisfaction score from the telephone survey of a sample of female patients aged 16 and over who had at least one live birth in the South Australian public hospital system during 2006. The Maternity Survey is conducted biannually. An average satisfaction score of 90 per cent and above reflects a high level of satisfaction and is considered to be the benchmark for performance.

(d) This indicator measures the percentage of total admissions to public hospitals where patients elect to use their private health insurance or pay their own costs (including non reciprocal agreement overseas and uninsured patients). The indicator excludes compensable eligible patient admissions.


(f) This indicator measures the number of Hospital Avoidance and Hospital Supported Discharge care packages provided to clients in their place of residence enabling them to avoid an admission to hospital or facilitate early discharge from hospital. Therefore, this service contributes to the alleviation of demand on the acute hospital system. From 1 October 2006, a new service provider was appointed for the Metro Home Link service. The 2006-07 Target was based on the package acquittal of the previous service provider. Renegotiation of package prices with the new provider has resulted in the ability to deliver more packages within approved funds. It is also noted that during 2006-07 funding was redirected to the Central Northern Adelaide Health Service.

(g) Includes North and West Child and Adolescent Mental Health, Child and Family Health, Women's Health Statewide, Second Story and Yarrow Place services.

(h) This is an access indicator that measures the percentage of clients receiving services from selected Primary Health Care services who are identified as Aboriginal and/or Torres Strait Islander status. The selected services for this indicator include: Second Story, Women's Health Statewide, Child Adolescent Mental Health Service – Northern, Child Adolescent Mental Health Service – Southern, Child and Youth Health, Children and Families Integration Service and Yarrow Place. The target for this indicator is based on the weighted estimated Aboriginal and Torres Strait Islander population of South Australia.

7.33

Sub-program: 3.5 Institute of Medical and Veterinary Science

The Institute of Medical and Veterinary Science provides diagnostic pathology services to hospitals and community services.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $159 054 000 $151 636 000 $142 271 000 $140 244 000

Revenue $81 542 000 $77 350 000 $70 325 000 $70 346 000


Reason for variance The increase in expenditure between the 2006-07 Estimated Result and 2006-07 Budget is due to a number of factors including additional Enterprise Agreement supplementation, additional expenditure to reflect growth in employee related liability provisions and additional expenditure associated with projected increases in non-South Australian Government appropriation revenue sources of the Institute of Medical and Veterinary Science.

The increase in expenditure between the 2007-08 Budget and 2006-07 Estimated Result is mainly related to annual indexation including approved Enterprise Agreements and increases in expenditure associated with non-South Australian Government appropriation revenue sources.



2006-07 Target

2005-06 Actual

No. of diagnostic tests provided by Institute of Medical and Veterinary Science laboratories

4 100 000 4 072 834 4 059 000 3 903 104

7.34

Sub-program: 3.6 Country Health SA

Coutry Health SA provides health and related services across the country region and financial assistance to individuals through the Patient Assistance Transport Scheme.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $560 304 000 $540 265 000 $504 546 000 $502 255 000

Revenue $312 468 000 $295 006 000 $259 837 000 $256 635 000


Reason for variance The increase in expenditure between the 2006-07 Estimated Result and 2006-07 Budget is due to a number of factors including additional Enterprise Agreement supplementation, funding to meet growth in employee related liability provisions, the impact of deferred expenditure in 2006-07, additional expenditure associated with projected increases in the non-South Australian Government appropriation revenue sources of Country Health SA and additional funding relating to Department of Veterans’ Affairs activity. Other factors contributing to the movement in the net cost of the sub–program include the transfer of the Port Pirie Environmental Health Centre to Country Health SA, increased police drug diversion initiative funding, increased funding for mental health initiatives offset by expenditure reductions for delays associated with implementation of Transitional Care Program initiatives.

The increase in expenditure between the 2007-08 Budget and 2006-07 Estimated Result is due to a number of factors including annual indexation including approved Enterprise Agreements, the transfer of the Port Pirie Environmental Health Centre, and funding approved as part of the 2006-07 Budget including funding for the Healthy Young Minds program and other mental health initiatives. The growth in the net cost of the sub-program is also influenced by deferred expenditure in 2006-07 and savings initiatives approved as part of the 2007-08 Budget. The growth in revenue relates to non-South Australian Government appropriation sources and includes Commonwealth funding.

Performance Commentary It is noted that at the time of preparation of the 2007-08 Health Portfolio Statement, the Health Service Agreement between Country Health SA and the Minister for Health had not been completed and as such the finalisation of the 2007-08 Health Service Agreement may result in a change in funding arrangements and activity targets.



2006-07 Target

2005-06 Actual

In Hospital Services

Resource weighted hospital outputs (excluding grant funded hospitals)(a)

56 889 57 941 57 052 57 052

Resource weighted hospital outputs for grant funded hospitals(b)

30 452 30 243 30 538 30 538

Patient satisfaction level(c) 90% 90% n.a. 91.3%

% of patients charged for admission(d) 16% 12% n.a. 11.7%


• Port Augusta Hospital 1.00 1.13 1.00 1.12

• Whyalla Hospital 0.95 0.95 1.00 0.92

• Mount Gambier Hospital 0.90 0.90 1.00 0.89

• Port Pirie Hospital 0.87 0.87 1.00 0.92


Potentially preventable admissions rate(f) 3 438 3 859 3 438 3 753


50 65 50 61

No. of payments made under the Patient Assistance Transport Scheme

42 500 41 000 38 000 36 986

Community Health

No. of hours of service(h) 780 000 739 149 n.a. n.a.

% of clients who are Aboriginal and Torres Strait Island clients(i)

8.2% 8.5% 8.2% 4.5%

continued

7.35

Sub-program: 3.6 Country Health SA continued


service data into a single output measure known as an ‘equisep equivalent’. This is achieved through the weighting of the various services according to their estimated relative resource use in 2006-07. It is noted this indicator includes data on nursing home type occupied bed days by the country health units. Country public hospitals will be categorised as grant and non-grant funded for the purposes of reporting in 2007-08 to align with internal Health portfolio performance monitoring.

(b) Grant funded health units receive additional budget supplementation per unit of activity compared with larger country health units to compensate for relatively lower activity performed by these units due to location and population size. The continued operations of grant funded health units are an essential component of an overall South Australian health service.


(d) This indicator measures the percentage of total admissions to public hospitals where patients elect to use their private health insurance or pay their own costs (including non reciprocal agreement overseas and uninsured patients). The indicator excludes Compensable and Department of Veteran Affairs eligible patient admissions.




(h) Source: Consolidated Country Client Management Engine database. Country Health SA (CHSA) Community Health is provided through an integrated model of service delivery, comprising community health, community based mental health, domiciliary care and other services such as the Aged Care Assessment Program. This indicator measures the hours of service for over 20 sites across CHSA in 2006-07 and will be expanded for future reporting to include group contacts and the small number of health services not included in the current data collection.

(i) This is an access indicator that measures the percentage of clients receiving services from selected Primary Health Care services who are identified as Aboriginal and/or Torres Strait Islander status. The selected services for this indicator include: Community Health, Palliative Care and Mental Health Services. The target for this indicator is based on the weighted estimated Aboriginal and Torres Strait Islander population of the regional Health Service.

7.36

Sub-program: 3.7 Incorporated Aboriginal Primary Health Services

Incorporated Aboriginal Primary Health Services provides primary health services to Aboriginal communities in Ceduna and Port Augusta and surrounding areas.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $9 761 000 $9 384 000 $7 176 000 $9 140 000

Revenue $6 675 000 $6 424 000 $4 544 000 $6 169 000




2006-07 Target

2005-06 Actual

Total hours of service(a) 10 000 9 812 n.a. 11 178

No. of programs operated 24 24 24 24

Footnotes (a) Total hours of service relates only to Pika Wiya Health Service.

7.37

Sub-program: 3.8 Other Health Services

The Other Health Services sub-program includes:

• the management of grants by the Department of Health for the delivery of health services by health regions and other health entities; • the provision and management of grants for the delivery of health and related services by non-government organisations, for example

the Royal District Nursing Service, SHine SA, and support to community hospitals, and palliative and mental health services; and • the provision and management of grants for the delivery of Aboriginal Health Programs within the Aboriginal community controlled

sector.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $94 490 000 $90 524 000 $90 780 000 $113 180 000

Revenue $16 217 000 $19 191 000 $17 331 000 $14 288 000


Reason for variance The variation in the net cost of the sub-program between the 2005-06 Actual and 2006-07 Budget mainly relates to the transfer of the Blood, Organ and Tissue Unit, including the transfer of National Blood Authority funding ($21 million) and nurse recruitment and retention funding ($2 million), to Sub-program 1.1 Clinical Coordination.

The 2007-08 Budget includes an additional $5.95 million of expenditure relating to funding for the non-government organisation sector to provide non-clinical community based support to people discharged from facility based care and additional expenditure to implement the health reform strategy. Other factors contributing to the movement in the net cost of services include annual indexation, grants to general practitioners associated with 2006-07 Budget approvals, increased indexation funding for non-government organisations approved as part of the 2007-08 Budget, the reallocation of Transitional Care Program funding (affecting both revenue and expenditure), expiration of the Police Drug Diversion Initiative (affecting both revenue and expenditure), grant funding provided to SHine SA in 2006-07 for the Woodville Primary Health Care Centre, and the transfer of the SA Amputee Limb Service to the Department for Families and Communities in 2006-07.

Performance Commentary The transfer of the SA Amputee Limb Service to the Department for Families and Communities from 20 November 2006 is reflected in the removal of the 2007-08 Target.



2006-07 Target

2005-06 Actual

No. of artificial limb prescriptions funded — 378 420 408

No. of Royal District Nursing Service episodes of care(a)

10 000 9 350 9 350 8 723

No. of grants to Aboriginal Community Controlled Health Services(b)

5 5 5 4

Footnotes (a) The performance indicator for the Royal District Nursing Service (RDNS) has been revised to report episodes of care rather than

home visits. An episode of care includes all services provided by RDNS to the patient for their referred condition (assessment, case management, travel and clinical intervention). An episode of care can include multiple home visits. The data reflects Department of Health funded activity only. Previously the data reflected activity funded from all revenue sources including the Department of Health, Department for Families and Communities and RDNS own source revenue, as Department of Health funded activity was not able to be separately determined.

(b) Funded organisations are Nganampa Health Council, the Aboriginal Health Council, Kalparrin Inc and the Aboriginal Sobriety Group. The 2006-07 and 2007-08 Targets also includes the Ngaanyatjarra Pitjantjara Yankunytjatjara Women’s Council.

7.38

Sub-program: 3.9 South Australian Ambulance Service

The South Australian Ambulance Service provides pre-hospital medical emergency care and patient transport.

2007-08 Budget


2006-07 Budget

2005-06 Actual

Expenditure $123 946 000 $118 957 000 $116 437 000 $103 362 000

Revenue $55 959 000 $52 382 000 $52 919 000 $52 249 000


Reason for variance The increases in revenue and expenditure between 2007-08 Budget and 2006-07 Estimated Result mostly relates to annual indexation and increases associated with workload. The increase in the net cost of the sub-program between the 2006-07 Budget and 2005-06 Actual includes a benefit in 2005-06 related to a revaluation of superannuation liabilities associated with the introduction of international accounting standards of around $5 million.

Performance Commentary In 2006-07 ambulance workloads exceeded targets for both emergency and non-emergency cases, which impacted on call response time performance. The 2007-08 workload targets allow for workload growth on top of 2006-07 Targets.



2006-07 Target

2005-06 Actual

Total no. of emergency responses(a) 102 707 101 829 87 462 92 240

Total no. of urgent responses(a) 70 356 67 864 77 596 70 120

Total no. of non-emergency responses(a) 54 345 55 853 52 774 51 485

Time within which top 50 percentile of emergency cases are responded to (minutes)(b)

9.1 9.5 9.1 9.5

Time within which top 90 percentile of emergency cases are responded to (minute)(b)

16.5 17.1 16.5 17.2

Footnotes (a) The basis of measuring responses has been changed to align with agreed reporting standards for Australian Ambulance Services.

The figures now exclude ambulance dispatches that do not result in attendance at an incident, for example cancellation, diversion, or re-tasking. Figures for previous years have been adjusted for comparison purposes.

(b) 2007-08 response time targets remain unchanged from 2006-07. While the targets have not been achieved, a number of initiatives aimed at improving performance have recently been implemented or are currently under development.

7.39

HEALTH PORTFOLIO


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 1 823 692 1 723 699 1 621 036 1 597 248 Long service leave .................................................................... 52 157 46 592 35 406 47 548 Payroll tax ................................................................................ 4 496 4 355 4 531 2 823 Superannuation ......................................................................... 190 382 171 126 158 050 141 890 Other ......................................................................................... 26 197 33 518 61 120 62 760Supplies and services — General supplies and services .................................................. 989 898 1 002 802 933 373 933 891 Consultancy expenses .............................................................. 3 195 3 051 3 051 1 989Depreciation and amortisation ..................................................... 83 966 85 462 85 462 91 473Borrowing costs ............................................................................ 10 688 10 103 10 103 6 576Grants and subsidies ..................................................................... 130 660 126 347 125 688 99 361Intra government transfers ........................................................... 533 6 347 654 7 447Other expenses ............................................................................. 50 283 48 415 18 854 25 827

Total expenses .............................................................................. 3 366 147 3 261 817 3 057 328 3 018 833

Income

Commonwealth revenues ............................................................. 1 007 032 974 251 922 390 920 805Intra government transfers ........................................................... 38 921 63 822 60 947 58 999Other grants .................................................................................. 47 959 51 475 49 763 47 152Fees, fines and penalties ............................................................... 3 299 2 942 2 942 549Sales of goods and services .......................................................... 353 425 337 734 326 269 302 504Interest revenues ........................................................................... 9 027 8 935 8 935 16 658Net gain or loss from disposal of assets ....................................... — — — -4 005Resources received free of charge ................................................ 2 340 2 397 2 397 4 016Other income ................................................................................ 69 891 68 358 34 024 66 539

Total income ................................................................................. 1 531 894 1 509 914 1 407 667 1 413 217

Net cost of providing services ...................................................... 1 834 253 1 751 903 1 649 661 1 605 616


Income — Appropriation ........................................................................... 1 825 482 1 687 458 1 638 252 1 485 210 Other income ............................................................................ — 20 386 — 58 145

Net income from / expenses to SA Government .......................... 1 825 482 1 707 844 1 638 252 1 543 355

Net result before restructure(s) ..................................................... -8 771 -44 059 -11 409 -62 261

Net income from / expenses from administrative restructure(s) .. -3 061 278 — 160

Net result after restructure(s) ........................................................ -11 832 -43 781 -11 409 -62 101

7.40

HEALTH PORTFOLIO

Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 263 086 262 115 225 957 272 509Receivables ................................................................................... 92 497 102 744 84 097 107 182Inventories .................................................................................... 22 358 22 834 24 180 22 834Financial assets ............................................................................. 45 104 46 635 47 343 46 607Other current assets ...................................................................... 21 395 21 462 22 160 21 449


Non current assets

Financial assets ............................................................................. 3 648 3 648 3 774 3 648Land and improvements ............................................................... 1 974 653 1 922 463 1 577 651 1 889 054Plant and equipment ..................................................................... 240 396 216 305 243 890 217 985Intangible assets ........................................................................... 1 290 1 290 3 926 1 290Other non-current assets ............................................................... 4 210 4 210 4 090 4 210


Total assets ................................................................................... 2 668 637 2 603 706 2 237 068 2 586 768

Liabilities

Current liabilities

Payables ........................................................................................ 133 539 135 406 95 849 135 959Short-term borrowings ................................................................. 862 862 3 379 862Employee benefits — Salaries and wages ................................................................... 37 939 39 007 36 725 38 684 Annual leave ............................................................................. 115 492 115 545 101 911 126 473 Long service leave .................................................................... 38 425 36 406 23 955 32 656 Superannuation ......................................................................... 208 208 — 208 Other ......................................................................................... 4 771 4 742 4 550 4 714Short-term provisions ................................................................... 34 320 34 577 19 788 33 286Other current liabilities ................................................................. 17 024 17 024 18 903 15 950



Long-term borrowings .................................................................. 63 179 64 712 97 445 66 925Long-term employee benefits — Annual leave ............................................................................. 587 293 3 335 — Long service leave .................................................................... 257 807 246 424 208 070 225 008 Superannuation ......................................................................... 4 516 4 516 — 4 156 Other ......................................................................................... 44 30 927 16Long-term provisions ................................................................... 50 407 50 210 45 545 47 097Other non-current liabilities ......................................................... 103 992 103 992 84 821 103 992



Net assets ...................................................................................... 1 805 525 1 749 752 1 491 865 1 750 782

7.41

HEALTH PORTFOLIO

Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Equity

Contributed capital ....................................................................... 288 105 220 500 203 857 177 749Retained earnings ......................................................................... 939 601 951 433 944 936 995 214Asset revaluation reserve ............................................................. 565 740 565 740 290 759 565 740Other reserves ............................................................................... 12 079 12 079 52 313 12 079

Total equity .................................................................................. 1 805 525 1 749 752 1 491 865 1 750 782


7.42

HEALTH PORTFOLIO


Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... 177 749 565 740 1 007 293 1 750 782Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... 177 749 565 740 1 007 293 1 750 782





Estimated balance at 30 June 2007 220 500 565 740 963 512 1 749 752





Estimated balance at 30 June 2008 288 105 565 740 951 680 1 805 525

7.43

HEALTH PORTFOLIO


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Employee payments ..................................................................... 2 076 720 1 962 872 1 878 528 1 807 680Supplies and services ................................................................... 993 070 1 005 782 936 353 928 790Borrowing costs ............................................................................ 10 688 10 103 10 103 6 597Grants and subsidies ..................................................................... 130 660 126 347 125 688 97 832Net GST paid ................................................................................ — — — 172 470Intra government transfers ........................................................... 533 6 347 654 7 447Other payments ............................................................................ 32 970 31 461 4 769 25 793

Cash used in operations ................................................................ 3 244 641 3 142 912 2 956 095 3 046 609

Cash inflows

Intra government transfers ........................................................... 38 921 63 822 60 947 58 999Commonwealth receipts ............................................................... 1 007 032 974 251 922 390 920 805Other grants .................................................................................. 47 959 51 475 49 763 52 359Fees, fines and penalties ............................................................... 3 299 2 942 2 942 535Sales of goods and services .......................................................... 346 413 331 246 319 781 286 416Interest received ........................................................................... 9 027 8 935 8 935 15 716Net GST received ......................................................................... — — — 178 361Other receipts ............................................................................... 69 892 63 904 29 570 74 229

Cash generated from operations ................................................... 1 522 543 1 496 575 1 394 328 1 587 420

SA GOVERNMENT:

Appropriation ............................................................................... 1 825 482 1 687 458 1 638 252 1 485 210Other receipts ............................................................................... — 20 386 — 58 145

Net cash provided by SA Government ......................................... 1 825 482 1 707 844 1 638 252 1 543 355



Cash outflows

Purchase of property, plant and equipment .................................. 169 982 118 137 129 516 112 318Other payments ............................................................................ — — — 9 482


Cash inflows

Proceeds from sale of property, plant and equipment .................. 2 273 4 343 4 343 3 877Other receipts ............................................................................... — — — 13 698



7.44

HEALTH PORTFOLIO


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Repayment of borrowings ............................................................ 1 191 802 802 1 647Finance lease payments ................................................................ 342 334 334 —


Cash inflows

Capital contributions from SA Government ................................ 67 605 42 751 42 751 58 030Proceeds from restructuring activities .......................................... -776 278 — —

Cash generated from financing activities ..................................... 66 829 43 029 42 751 58 030

Net cash provided by (+) / used in (-) financing activities ........... 65 296 41 893 41 615 56 383

Net increase (+) / decrease (-) in cash equivalents ....................... 971 -10 394 -7 073 36 324



7.45

ADMINISTERED ITEMS FOR THE DEPARTMENT OF HEALTH


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual


Income — Appropriation ........................................................................... 236 232 505 491

Net income from / expenses to SA Government .......................... 236 232 505 491

Total income ................................................................................. 236 232 505 491

Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 236 232 227 215Grants and subsidies ..................................................................... — — 278 —

Total expenses .............................................................................. 236 232 505 215

Net result before restructure(s) ..................................................... — — — 276

Net income from / expenses from administrative restructure(s) .. — -278 — —

Net result after restructure(s) ........................................................ — -278 — 276

7.46


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 9 168 8 637 142 8 844Receivables ................................................................................... 18 18 205 18

Total current assets ....................................................................... 9 186 8 655 347 8 862

Non current assets

Plant and equipment ..................................................................... — — 11 —

Total non-current assets ............................................................... — — 11 —

Total assets ................................................................................... 9 186 8 655 358 8 862

Liabilities

Current liabilities

Payables ........................................................................................ — — 64 — Short-term borrowings ................................................................. 9 464 8 933 625 8 862Employee benefits — Salaries and wages ................................................................... 9 9 — 9

Total current liabilities ................................................................. 9 473 8 942 689 8 871

Total liabilities .............................................................................. 9 473 8 942 689 8 871

Net assets ...................................................................................... -287 -287 -331 -9

Equity

Retained earnings ......................................................................... -287 -287 -331 -9

Total equity .................................................................................. -287 -287 -331 -9


7.47



Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... — — -9 -9Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... — — -9 -9





Estimated balance at 30 June 2007 — — -287 -287


Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ........................................ — — — —

Total recognised income and expense for 2007-08 — — — —


Estimated balance at 30 June 2008 — — -287 -287

7.48



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Employee payments ..................................................................... 236 232 227 213Grants and subsidies ..................................................................... — — 278 —

Cash used in operations ................................................................ 236 232 505 213

SA GOVERNMENT:

Appropriation ............................................................................... 236 232 505 491

Net cash provided by SA Government ......................................... 236 232 505 491

Net cash provided by (+) / used in (-) operating activities ........... — — — 278


Cash inflows

Proceeds from restructuring activities .......................................... — -278 — — Other receipts ............................................................................... 531 71 71 —

Cash generated from financing activities ..................................... 531 -207 71 —

Cash outflows

Repayment of borrowings ............................................................ — — — 13 265

Cash used in financing activities .................................................. — — — 13 265

Net cash provided by (+) / used in (-) financing activities ........... 531 -207 71 -13 265

Net increase (+) / decrease (-) in cash equivalents ....................... 531 -207 71 -12 987

Cash and cash equivalents at the beginning of the financial year 8 619 8 826 71 21 813

Cash and cash equivalents at the end of the financial year .......... 9 150 8 619 142 8 826

7.49

AGENCY: DEPARTMENT OF HEALTH



2006-07 Estimated Result to 2007-08 Budget

The State Government as part of the 2007-08 Budget has committed an additional $523 million over four years in operating and investing expenditure (including expenditure held in contingency for ICT projects). This commitment is in addition to the $640 million allocated to Health as part of the 2006-07 Budget.

The total expenditure of the Health Portfolio is estimated to increase by $104.3 million in 2007-08 to $3.4 billion when compared to the 2006-07 Estimated Result. The increase in the 2007-08 Budget when compared with the 2006-07 Budget is $308.8 million or 10 per cent.

The main factors contributing to the variations in expenditure include:

• an additional $59 million in 2007-08 relating to decisions approved in the 2006-07 Budget, which includes an additional $40 million for health services, $7.8 million for Modbury Hospital and $10 million to increase the medical workforce;

• an additional $13.1 million related to approvals in the 2007-08 Budget, including additional annual indexation for non-government organisations ($742 000), funding to support health care reform ($4.71 million), funding to provide non-clinical mental health community based support to people who leave facility based care ($5.95 million);

• increased payments under private practice arrangements ($13.1 million);

• additional employee expenses associated with the Nurses/Midwives (South Australian Public Sector) Enterprise Agreement ($11.1 million), the Salaried Medical Officers Enterprise Agreement ($9.3 million), the Visiting Medical Specialists Enterprise Agreement ($3.5 million) and Public Sector Management Act and Weekly Paid Enterprise Agreements ($30.1 million), which include base budget allocations and supplementation when the Enterprise Agreements were agreed;

• annual indexation by the State Government and the Commonwealth Government; and

• savings approved as part of the 2006-07 Budget (which increase in 2007-08 by $8.4 million) as well as savings of $8.1 million approved in the 2007-08 Budget.

The 2007-08 Budget also includes a reduction in expenditure of $56.9 million when compared to the 2006-07 Estimated Result associated with the transfer of Metropolitan Domiciliary Care to the Department for Families and Communities. This transfer is masking the underlying expenditure growth of Health in 2007-08.

Note that the transfer of management of Modbury Hospital back to the Government of South Australia in 2007-08 has resulted in a change in treatment of expenditure incurred by the Health Portfolio, that is, $44.9 million that was treated as a supplies and services expense to Healthscope Limited as part of the annual contract management fee is now recognised as employee related costs from 2007-08 representing the transfer of employees.

7.50

Intra-government revenue transfers are forecast to decrease in 2007-08 by $24.9 million, which is mainly associated with the transfer of Metropolitan Domiciliary Care to the Department for Families and Communities.

Commonwealth funding

Commonwealth revenue to the state is estimated to increase by $32.8 million in 2007-08 when compared with the 2006-07 Estimated Result, which relates primarily to an increase in grants received under the Australian Health Care Agreement.

Revenues from the Commonwealth 2006-07 Budget

2006-07 Estimated

result

2007-08 Budget

$000 $000 $000

Australian Health Care Agreement ......................................... 725 153 725 153 762 541

Veterans Affairs Agreement.................................................... 71 902 71 902 70 387

Highly Specialised Drugs........................................................ 37 245 37 245 38 735

National Public Health Partnership ......................................... 12 504 12 504 12 817

Essential Vaccines................................................................... 8 801 22 572 28 010

Pathways Home....................................................................... 10 067 11 267 3 015

Police Drug Diversion............................................................. 3 500 3 661 25

Transition Care........................................................................ 6 766 6 766 6 935

Commonwealth revenue received directly by Health regions and other health entities and the SA Ambulance Service..................................................................................... 44 906 73 995 78 466

Other ....................................................................................... 1 546 9 186 6 101

Total 922 390 974 251 1 007 032

Revenue from the Commonwealth also increased during 2006-07 as a result of Council of Australian Governments (COAG) funding for improving care for older patients in public hospitals and additional funding for vaccination programs in South Australia, mainly relating to the Human Papillomavirus Vaccine. The increase in Commonwealth revenue received directly by health regions and other health entities reflects adjustments during 2006-07 to align budgets with likely actual results.

2006-07 Budget to 2006-07 Estimated Result

The total expenditure of the Health Portfolio for the 2006-07 Estimated Result is forecast to exceed the 2006-07 Budget by around $204.5 million or 6.7 per cent. Factors contributing to the variation include:

• an additional $59.3 million per annum from 2006-07 to meet increasing demand in metropolitan public hospitals and rising non-wage costs associated with the provision of health services;

• an additional $70 million associated with an increase in Commonwealth revenue and other revenue generated directly by the health regions and other health entities;

• an additional $13.9 million relating to Public Sector Management Act and Weekly Paid Enterprise Agreements;

7.51

• an additional $15.7 million approved in 2006-07 to reflect increases in employee related liability provisions such as long service leave entitlements;

• the impact of $14.1 million for expenditure approved in 2006-07 relating to expenditure carried over from 2005-06;

• an additional $13.5 million for Commonwealth Government vaccination programs, mainly the Human Papillomavirus Vaccination program; and

• an additional $4.6 million to fund initiatives under the Council of Australian Government Australian Better Health Initiative ($3.5 million) and National E-Health initiative ($1.1 million).


The net asset position for 2007-08 for the Health Portfolio is forecast to improve by $55.8 million, when compared with 2006-07 Estimated Result, to $1.8 billion. The main factors contributing to the increases are associated with land and improvements and plant and equipment, offset by projected increases in employee related liability provisions. The increase in the net asset position between the 2006-07 Estimated Result and 2006-07 Budget of $257.9 million is due mainly to the need to reflect opening balance adjustments (that is, the difference between the 2005-06 Actual and 2005-06 Estimated Result). The increase in the asset revaluation reserve in 2005-06 was $275 million.


Major resource variations in the Cash flow statement arise mainly from the same factors that give rise to variations in the Income statement and movements in items in the Balance sheet.

Administered

The 2007-08 Portfolio Statements reflect a change in treatment for the Beyond Blue Depression Initiative. The Department of Health provides a grant of $278 000 to Beyond Blue annually and this grant has previously been treated as an administered item as it was paid by the Department of Health on behalf of the Department of the Premier and Cabinet. During 2006-07, the nature of this grant changed from an administered item to a controlled item and as such is now treated as a grant expense of the Department of Health for the 2006-07 Estimated Result and 2007-08 Budget.

The 2005-06 Beyond Blue grant payment was deferred into 2006-07, therefore the 2006-07 Estimated Result includes a transfer of cash from administered to controlled of $278 000.

There are no material resource variations for Administered Items.

Detailed information in Administered Items is included in the following table.

7.52

Additional Information for Administered Items Department of Health

Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

CASH FLOWS FROM:

Operating activities

Receipts

State Government —

State Government — Appropriation ......................................... — — 278 278

State Government — Special Acts Appropriation .................... 236 232 227 213

Total operating receipts 236 232 505 491

Payments


Minister’s Salary....................................................................... 236 232 227 213


Beyond Blue — Depression Initiative ...................................... — — 278 —

Total operating payments 236 232 505 213

Net cash provided by operating activities — — — 278


Receipts

Other receipts —

Health, Community and Disability Services Ministerial Council Secretariat.................................................................... 531 71 71 —

Net proceeds from restructuring activities —

Beyond Blue — Depression Initiative ...................................... — -278 — —

Total financing receipts 531 -207 71 —

Payments

Net change in deposits held – Health, Community and Disability Services Ministerial Council Secretariat .................. — — — 13 265

Total financing payments 531 -207 71 13 265

Net cash provided by financing activities 531 -207 71 -13 265

Net Increase (+) / decrease (-) in cash held 531 -207 71 -12 987

Opening cash balance as at 1 July 8 619 8 826 71 21 813

Closing cash balance as at 30 Jun 9 150 8 619 142 8 826

7.53

Portfolio: Administrative and Information Services

TABLE OF CONTENTS

PORTFOLIO SUMMARY

Overview ...............................................................................................................................8.1


Agency Summaries

Department for Administrative and Information Services ....................................................8.4

PORTFOLIO: ADMINISTRATIVE AND INFORMATION SERVICES

OVERVIEW

The former Department for Administrative and Information Services (DAIS) has had no functions and no financial substance from midnight on 31 December 2006. While employees were transferred to receiving agencies on 1 October 2006, between that date and 31 December 2006 DAIS continued to control assets, and to have liabilities, income and expenses under memoranda of understanding between Chief Executives.

The functions of DAIS have been transferred to, and are reflected in, the Portfolio Statements of:

• the Department of the Premier and Cabinet;

• the Department of Trade and Economic Development;

• the Department of Treasury and Finance;

• the Attorney-General’s Department; and

• the Department for Transport, Energy and Infrastructure.

Where a function has been transferred from DAIS, information for previous years is reflected in the either the Program Statements, the Investing Payments Summary Statement or the Additional Information for Administered Items Statement of the receiving portfolio.

The Portfolio Statement of DAIS includes information that enables the amounts transferred to, and reflected within, each agency to be identified.

8.1

WORKFORCE SUMMARY

FTEs as at 30 June

Agency 2007-08



Department for Administrative and Information Services — — 2 147.7

Total — — 2 147.7

8.2

8.3

TABLE OF CONTENTS

AGENCY: DEPARTMENT FOR ADMINISTRATIVE AND INFORMATION SERVICES





Balance sheet.........................................................................................................................8.7







Additional Information for Administered Items Reconciliation to Cash flow statement................8.16

8.4



2007-08Budget

2006-07Estimated

result (a)

2006-07 Budget

2005-06 Actual

Program $000 $000 $000 $000


Net cost of programs/functions transferred out

Department of the Premier and Cabinet ..... — 34 584 60 810 71 981

Department of Trade and Economic Development .............................................. — 188 377 350

Department of Treasury and Finance ......... — 266 38 274 43 774

Administered Items for the Department of Treasury and Finance ............................. — 146 358 564

Attorney-General’s Department ................. — 6 815 10 266 11 957

Department for Transport, Energy and Infrastructure .............................................. — 16 860 -1 539 28 873


— 58 859 108 546 157 499

(a) Transfers for the 2006-07 Estimated Result represent the net cost of services for the period 1 July 2006 to 31 December 2006 reflected in the Income statement for the Department for Administrative and Information Services.


2007-08Budget

2006-07Estimated

result(a)

2006-07 Budget

2005-06 Actual

Investments $000 $000 $000 $000


Cost of projects transferred out

Department of the Premier and Cabinet ..... — 145 1 512 1 144

Department of Treasury and Finance ......... — 49 838 101 870 138 593

Attorney-General’s Department ................. — 202 876 1 468

Department for Transport, Energy and Infrastructure .............................................. — 6 984 20 896 45 701


— 57 169 125 154 186 906

(a) Transfers for the 2006–07 Estimated Result represent the payments for the period 1 July 2006 to 31 December 2006 reflected in the Cash flow statement for the Department for Administrative and Information Services.

8.5

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ........................................... — 64 379 118 936 120 517 Long service leave .......................................................................... — 1 959 4 210 4 951 Payroll tax ....................................................................................... — 3 030 6 352 7 993 Superannuation ............................................................................... — 5 808 12 176 13 723 Other ............................................................................................... — 599 2 457 5 561Supplies and services — General supplies and services ......................................................... — 189 754 376 141 309 359 Consultancy expenses ..................................................................... — 584 1 567 2 188Depreciation and amortisation ............................................................ — 35 443 71 714 64 577Borrowing costs .................................................................................. — 8 153 15 787 13 809Grants and subsidies ........................................................................... — 12 143 14 526 13 577Intra government transfers .................................................................. — 2 767 5 839 2 718Other expenses ................................................................................... — 898 10 369 25 585

Total expenses .................................................................................... — 325 517 640 074 584 558

Income

Commonwealth revenues ................................................................... — — 1 632 809Intra government transfers .................................................................. — 5 722 16 047 6 728Other grants ........................................................................................ — 532 1 114 979Fees, fines and penalties ..................................................................... — 14 850 19 544 18 081Sales of goods and services ................................................................ — 245 325 491 867 401 560Interest revenues ................................................................................. — — 7 1 870Net gain or loss from disposal of assets ............................................. — 17 25 -3 397Other income ...................................................................................... — 212 1 292 429

Total income ....................................................................................... — 266 658 531 528 427 059

Net cost of providing services ............................................................ — 58 859 108 546 157 499


Income — Appropriation ................................................................................. — 81 724 156 517 154 446 Other income .................................................................................. — — — 13 439Expenses — Tax equivalent ................................................................................ — 1 974 4 928 2 758 Other ............................................................................................... — — 22 261 17 397

Net income from / expenses to SA Government ................................ — 79 750 129 328 147 730

Net result before restructure(s) ........................................................... — 20 891 20 782 -9 769

Net income from / expenses from administrative restructure(s) ........ — -159 653 — - 934

Net result after restructure(s) .............................................................. — -138 762 20 782 -10 703

ADMINISTRATIVE AND INFORMATION SERVICES

Income statement

8.6

2007-08Budget

$000

2006-07Estimated

result(a)

$000

2006-07Budget

$000

2005-06Actual

$000

Assets

Current assets

Cash and cash equivalents .................................................................. — 38 157 29 924 60 024Receivables ......................................................................................... — 100 082 104 510 89 790Inventories .......................................................................................... — 4 411 2 071 2 484Other current assets ............................................................................ — 85 691 19 855 117 114

Total current assets ............................................................................. — 228 341 156 360 269 412

Non current assets

Land and improvements ..................................................................... — 591 848 544 463 586 697Plant and equipment ........................................................................... — 220 659 311 806 183 435Heritage assets .................................................................................... — — 12 224 12 224Intangible assets ................................................................................. — 10 348 — 11 024Other non-current assets ..................................................................... — 7 631 11 722 973

Total non-current assets ...................................................................... — 830 486 880 215 794 353

Total assets ......................................................................................... — 1 058 827 1 036 575 1 063 765

Liabilities

Current liabilities

Payables .............................................................................................. — 61 652 81 148 76 751Short-term borrowings ....................................................................... — 71 252 105 747 100 192Employee benefits — Salaries and wages .......................................................................... — 3 228 1 620 2 296 Annual leave ................................................................................... — 9 161 8 902 9 933 Long service leave .......................................................................... — 2 500 2 702 2 349Short-term provisions ......................................................................... — 2 515 6 905 1 863Other current liabilities ....................................................................... — 8 881 18 531 11 696

Total current liabilities ....................................................................... — 159 189 225 555 205 080


Long-term borrowings ........................................................................ — 162 321 141 506 142 951Long-term employee benefits — Long service leave .......................................................................... — 32 280 36 771 32 394Long-term provisions ......................................................................... — 2 864 — 2 865

Total non-current liabilities ................................................................ — 197 465 178 277 178 210

Total liabilities .................................................................................... — 356 654 403 832 383 290

Net assets ............................................................................................ — 702 173 632 743 680 475


Balance sheet

8.7

2007-08Budget

$000

2006-07Estimated

result(a)

$000

2006-07Budget

$000

2005-06Actual

$000


Balance sheet

Equity

Contributed capital ............................................................................. — 217 710 136 476 217 710Retained earnings ............................................................................... — 168 621 189 574 146 799Asset revaluation reserve .................................................................... — 308 261 292 342 308 385Other reserves ..................................................................................... — 7 581 14 351 7 581

Total equity ......................................................................................... — 702 173 632 743 680 475

(a) Balances as at 31 December 2006 prior to restructure.

8.8

Contributed capital

$000

Asset revaluation

reserve

$000

Retained earnings

$000

Total

$000

Balance at 30 June 2006 ...................................................................... 217 710 308 385 154 380 680 475Adjustments ......................................................................................... — — — —

Restated balance at June 2006 ............................................................. 217 710 308 385 154 380 680 475

Net gain/loss on revaluation of property, plant and equipmentto 31 December 2006 .......................................................................... — - 124 124 —Net changes in reserves to 31 December 2006 .................................... — — 807 807

Net income/expense recognised directly in equityto 31 December 2006 .......................................................................... — - 124 931 807Net result before restructure to 31 December 2006 ............................. — — 20 891 20 891

Total recognised income and expense to 31 December 2006 — - 124 21 822 21 698

Equity contributions from SA Government ........................................ — — — —Repayment of equity contributions from SA Government ................. — — — —

Estimated balance at 31 December 2006 217 710 308 261 176 202 702 173

Net gain/loss on revaluation of property, plant and equipment1 January to 30 June 2007 ................................................................... — — — —Net changes in reserves 1 January to 30 June 2007 ............................ -217 710 -308 261 -16 549 -542 520Net expenses from restructure 1 January to 30 June 2007................... — — -159 653 -159 653

Equity contributions from SA Government ........................................ — — — —Repayment of equity contributions from SA Government ................. — — — —

Estimated balance at 30 June 2007 — — — —


Statement of changes in equity

8.9

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Employee payments ........................................................................... — 77 792 140 161 145 227Supplies and services .......................................................................... — 226 939 378 447 545 414Borrowing costs .................................................................................. — 8 153 15 828 14 214Grants and subsidies ........................................................................... — 12 143 14 526 14 059Net GST paid ...................................................................................... — — — 78 374Intra government transfers .................................................................. — 2 767 5 839 2 718Other payments ................................................................................... — 1 787 9 510 7 626

Cash used in operations ...................................................................... — 329 581 564 311 807 632

Cash inflows

Intra-government transfers ................................................................. — 5 722 16 047 6 728Commonwealth receipts ..................................................................... — — 1 632 809Other grants ........................................................................................ — 532 1 114 979Fees, fines and penalties ..................................................................... — 14 850 19 544 18 081Sales of goods and services ................................................................ — 244 086 490 774 626 093Interest received ................................................................................. — 219 230 2 447Net GST received ............................................................................... — — — 78 375Other receipts ..................................................................................... — 579 818 3 488

Cash generated from operations ......................................................... — 265 988 530 159 737 000

SA GOVERNMENT:

Appropriation ..................................................................................... — 81 724 156 517 154 446Other receipts ..................................................................................... — — — 13 439Payments — Tax equivalents ............................................................................... — 1 598 4 928 4 079 Other ............................................................................................... — — 22 261 17 397

Net cash provided by SA Government ............................................... — 80 126 129 328 146 409

Net cash provided by (+) / used (-) in operating activities ................. — 16 533 95 176 75 777


Cash outflows

Purchase of property, plant and equipment ........................................ — 57 169 125 154 186 906Advances paid .................................................................................... — — 6 189 - 474

Cash used in investing activities ........................................................ — 57 169 131 343 186 432

Cash inflows

Proceeds from sale of property, plant and equipment ........................ — 18 982 55 330 74 157Repayment of advances ...................................................................... — 270 17 —


Cash flow statement

8.10

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash flow statement

Cash generated from investing activities ............................................ — 19 252 55 347 74 157

Net cash provided by (+) / used in (-) investing activities ................. — -37 917 -75 996 -112 275


Cash outflows

Repayment of borrowings .................................................................. — — 31 421 117 474Repayment of SA Government contributed capital ........................... — — 26 687 — Finance lease payments ...................................................................... — 483 623 460

Cash used in financing activities ........................................................ — 483 58 731 117 934

Cash inflows

Capital contributions from SA Government ...................................... — — — 8 000Proceeds from borrowings .................................................................. — — 37 424 136 292Proceeds from restructuring activities ................................................ — -38 157 — —

Cash generated from financing activities ........................................... — -38 157 37 424 144 292

Net cash provided by (+) / used in (-) financing activities ................. — -38 640 -21 307 26 358

Net increase (+) / decrease (-) in cash equivalents ............................. — -60 024 -2 127 -10 140

Cash and cash equivalents at the beginning of the financial year ...... — 60 024 32 051 70 164

Cash and cash equivalents at the end of the financial year ................ — — 29 924 60 024

8.11

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Income from / Expenses to SA Government

Income — Appropriation ................................................................................. — 2 880 9 302 8 673

Net income from / expenses to SA Government ................................ — 2 880 9 302 8 673


Taxation .............................................................................................. — — 200 — Intra government transfers .................................................................. — 1 458 3 500 4 882Fees, fines and penalties ..................................................................... — 58 314 100 614 102 572Sales of goods and services ................................................................ — 10 909 31 502 249 478Interest revenues ................................................................................. — — — 108

Total income from other sources ........................................................ — 70 681 135 816 357 040

Total income ....................................................................................... — 73 561 145 118 365 713

Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ........................................... — 1 946 3 049 2 816 Long service leave .......................................................................... — — — 3 Payroll tax ....................................................................................... — — — 181 Superannuation ............................................................................... — — 1 577 Other ............................................................................................... — — 61 2 824Supplies and services — General supplies and services ......................................................... — 11 243 33 808 249 438 Consultancy expenses ..................................................................... — — — 61Grants and subsidies ........................................................................... — — 100 3 500Intra government transfers .................................................................. — — 3 700 — Other expenses ................................................................................... — 58 314 100 778 102 573

Total expenses .................................................................................... — 71 503 141 497 361 973

Net result before restructure(s) ........................................................... — 2 058 3 621 3 740

Net income from / expenses from administrative restructure(s) ........ — 6 742 — -2 398

Net result after restructure(s) .............................................................. — 8 800 3 621 1 342

ADMINISTERED ITEMS FOR THE DEPARTMENT FOR ADMINISTRATIVE AND INFORMATION SERVICES

Income statement

8.12

2007-08Budget

$000

2006-07Estimated

result (a)

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents .................................................................. — 20 301 24 723 22 242Receivables ......................................................................................... — 889 833 1 530

Total current assets ............................................................................. — 21 190 25 556 23 772

Total assets ......................................................................................... — 21 190 25 556 23 772

Liabilities

Current liabilities

Payables .............................................................................................. — 21 342 18 646 24 587Employee benefits — Salaries and wages .......................................................................... — 81 — 58 Annual leave ................................................................................... — 36 — 50 Long service leave .......................................................................... — 31 — 29Short-term provisions ......................................................................... — — — 875Other current liabilities ....................................................................... — 958 2 031 1 499

Total current liabilities ....................................................................... — 22 448 20 677 27 098


Long-term employee benefits — Long service leave .......................................................................... — 153 28 143Long-term provisions ......................................................................... — — 2 197 —

Total non-current liabilities ................................................................ — 153 2 225 143

Total liabilities .................................................................................... — 22 601 22 902 27 241

Net assets ............................................................................................ — -1 411 2 654 -3 469

Equity

Retained earnings ............................................................................... — -6 742 -2 690 -8 800Other reserves ..................................................................................... — 5 331 5 344 5 331

Total equity ......................................................................................... — -1 411 2 654 -3 469

(a) Balances as at 31 December 2006 prior to restructure


Balance sheet

8.13

Contributed capital

$000

Asset revaluation

reserve

$000

Retained earnings

$000

Total

$000

Balance at 30 June 2006 ...................................................................... — — -3 469 -3 469Adjustments ......................................................................................... — — — —

Restated balance at June 2006 ............................................................. — — -3 469 -3 469

Net gain/loss on revaluation of property, plant and equipmentto 31 December 2006 ........................................................................... — — — —Net changes in reserves to 31 December 2006 .................................... — — — —

Net income/expense recognised directly in equityto 31 December 2006 ........................................................................... — — — —Net result before restructure to 31 December 2006.............................. — — 2 058 2 058

Total recognised income and expense to 31 December 2006 — — 2 058 2 058

Equity contributions from SA Government ......................................... — — — —Repayment of equity contributions from SA Government .................. — — — —

Estimated balance at 31 December 2006 — — -1 411 -1 411

Net gain/loss on revaluation of property, plant and equipment1 January to 30 June 2007 ................................................................... — — — —Net changes in reserves 1 January to 30 June 2007 ............................. — — -5 331 -5 331Net income from restructure 1 January to 30 June 2007 ..................... — — 6 742 6 742

Equity contributions from SA Government ......................................... — — — —Repayment of equity contributions from SA Government .................. — — — —

Estimated balance at 30 June 2007 — — — —

ADMINISTERED ITEMS FOR THE DEPARTMENT FOR ADMINISTRATIVE

Statement of changes in equity

AND INFORMATION SERVICES

8.14

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash inflows

Taxation .............................................................................................. — — 200 — Intra government transfers .................................................................. — 1 458 3 500 4 882Fees, fines and penalties ..................................................................... — 58 314 100 614 102 572Sales of goods and services ................................................................ — 10 973 31 502 249 697Interest received ................................................................................. — — — 108Other receipts ..................................................................................... — 36 — 583

Cash generated from operations ......................................................... — 70 781 135 816 357 842

Cash outflows

Employee payments ........................................................................... — 1 922 7 645 6 411Supplies and services .......................................................................... — 14 401 33 850 254 439Grants and subsidies ........................................................................... — — 100 3 500Intra government transfers .................................................................. — — 3 700 — Other payments ................................................................................... — 59 279 100 778 103 656

Cash used in operations ...................................................................... — 75 602 146 073 368 006

SA GOVERNMENT:

Appropriation ..................................................................................... — 2 880 9 302 8 673

Net cash provided by SA Government ............................................... — 2 880 9 302 8 673

Net cash provided by (+) / used in (-) operating activities ................. — -1 941 - 955 -1 491


Cash inflows

Proceeds from restructuring activities ................................................ — -20 301 — -2 398

Cash generated from financing activities ........................................... — -20 301 — -2 398

Net cash provided by (+) / used in (-) financing activities ................. — -20 301 — -2 398

Net increase (+) / decrease (-) in cash equivalents ............................. — -22 242 - 955 -3 889

Cash and cash equivalents at the beginning of the financial year ...... — 22 242 25 678 26 131

Cash and cash equivalents at the end of the financial year ................ — — 24 723 22 242


Cash flow statement

8.15



2007-08Budget

2006-07Estimated

result(a)

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Reconciliation to operating receipts (as per Administered Items Cash flow statement)

Receipts transferred out

Administered Items for the Department of the Premier and Cabinet ........................................................................ — 1 576 3 954 7 599

Administered Items for the Department of Treasury and Finance............................................................................... — 10 268 27 070 30 460

Administered Items for the Department for Transport, Energy and Infrastructure .................................................. — 58 937 104 792 319 783

Equals: Operating receipts (as per Administered Items Cash flow statement)

— 70 781 135 816 357 842

Reconciliation to operating payments (as per Administered Items Cash flow statement)

Payments transferred out

Administered Items for the Department of the Premier and Cabinet ........................................................................ — 5 461 11609 14 513

Administered Items for the Department of Treasury and Finance............................................................................... — 10 828 26 988 30 022

Administered Items for the Department for Transport, Energy and Infrastructure .................................................. — 59 313 107 476 323 471

Equals: Operating payments (as per Administered Items Cash flow statement)

— 75 602 146 073 368 006


8.16



2007-08Budget

2006-07Estimated

result(a)

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Reconciliation to financing activities (as per Administered Items Cash flow statement)

Financing activities transferred out

Administered Items for the Department of the Premier and Cabinet ........................................................................ — -1 494 — —

Administered Items for the Department of Treasury and Finance............................................................................... — -1 378 — —

Administered Items for the Department for Transport, Energy and Infrastructure .................................................. — -17 429 — -2 398

Equals: Financing activities (as per Administered Items Cash flow statement)

— -20 301 — -2 398


8.17

Portfolio: Education and Children’s Services

Minister for Education and Children’s Services

PORTFOLIO SUMMARY




Agency Summaries

Department of Education and Children’s Services ...............................................................9.4

PORTFOLIO: EDUCATION AND CHILDREN’S SERVICES


Minister Agency Programs Sub-Programs

1. Early Years Education and Care (Birth to Preschool)

1.1 Early Childhood Education and Care (Birth to Preschool)

1.2 Preschool Services

2. Education — Early Years Education (R–2)

Nil

The Hon. Jane Lomax-Smith Minister for Education and Children’s Services

Department of Education and Children’s Services

3. Education — Primary and Secondary Education (3–12)

3.1 Year 3 to Year 7 Education Provision



Administered items

In addition to the above responsibilities, the Portfolio administers the following items on behalf of the Minister:

• State Government contribution to the operation of the Senior Secondary Assessment Board of South Australia;

• payments to the Office of Public Transport for the purposes of student travel;

• State Government contribution to the operation of non-government schools, organisations and services to students with disabilities;

• Commonwealth Government contribution to the operation of non-government schools, organisations and services to students with disabilities; and

• repayment of Capital Works Assistance Scheme.

Statutes


9.1

WORKFORCE SUMMARY

FTEs as at 30 June

Agency 2007-08



Department of Education and Children’s Services .............................................................. 19 737 20 038 20 262

Administered Items for the Department of Education and Children’s Services ..................... 14 15 18

Senior Secondary Assessment Board of South Australia ............................................................. 80 74 77

Total 19 831 20 127 20 357


2007-08 Budget

Cost of provision Minister $000 FTEs The Hon. Jane Lomax-Smith 1 456 12.0

9.2

9.3

TABLE OF CONTENTS

AGENCY: DEPARTMENT OF EDUCATION AND CHILDREN’S SERVICES

Objective .........................................................................................................................................9.5





1. Early Years Education and Care (Birth to Preschool) ...................................................9.10

2. Education — Early Years Education (Reception to Year 2)..........................................9.15

3. Education — Primary and Secondary Education (Year 3 to Year 12) ..........................9.17



Balance sheet.........................................................................................................................9.27








9.4

PORTFOLIO: EDUCATION AND CHILDREN’S SERVICES


Objective

To ensure that the state’s public education and children’s services offer high quality and responsive services to all South Australians. The main focus of these services will be to ensure that children and students have the opportunity to maximise their potential and aspirations to productively and responsibly participate in and contribute to society.

9.5



South Australia’s Strategic Plan informs overall targets for education and children’s services which are designed to assist children and young people in the state. The Plan was updated in 2006 with a focus on the following targets in 2007-08: • Include Aboriginal cultural studies in the school curriculum by

2014 with involvement of Aboriginal people in design and delivery

• Achieve a 10 per cent improvement in the number of children reading at an age appropriate level by the end of Year 1 by 2014

• Increase yearly the proportion of Aboriginal children reading at age appropriate levels at the end of Year 1

• Improve South Australia’s performance on the Australian Early Development Index

• By 2010, increase by 15 per cent the proportion of students receiving a Tertiary Entrance Rank or equivalent with at least one of the following subjects: mathematics, physics or chemistry

• Increase yearly the proportion of 15 to 19 Year olds who achieve the South Australian Certificate of Education (SACE) or comparable senior secondary qualification

• By 2010, 93 per cent of students in Year 3 to achieve the national benchmarks in reading, writing and numeracy



• Double South Australia’s share of overseas students by 2014 • By 2010, increase the number of 15 to 19 Year olds engaged

full time in school, work or further education/training • Exceed the national average for Vocational Education Training

(VET) participation by 2010

As part of the implementation of the DECS Statement of Directions, the following priorities continue to be a focus during 2007-08: Early Years • Developing more flexible, high quality programs and services

to meet the needs of families and enhance children’s learning and development through children’s centres, preschools, child care, family day care, out of school-hours care, occasional care, and the early years of school

Children’s Centres • A further 10 Children’s Centres will be opening across the state

in locations including Campbelltown, Cowandilla, Gawler, Marion, Murray Bridge, Port Augusta, Renmark, Salisbury, Taperoo and Woodcroft. The locations of another five Children’s Centres are under consideration

Senior Secondary • Improving pathways for all young South Australians to engage

in further education, training and/or employment • Implementation of the government’s ‘School to Work’ strategy

including the future South Australian Certificate of Education and ‘Trade Schools for the Future’

Aboriginal young people and employees • Significantly improved participation, achievement and

wellbeing levels for Aboriginal children and students • Improved employment opportunities for Aboriginal people Achievements in literacy, numeracy and science • Improved skill development and achievement in literacy,

numeracy and science, from the early years to Year 12

Children’s Centres • Five Children’s Centres for Early Childhood Development and

Parenting have commenced operation at Café Enfield, Elizabeth Grove, Hackam West, Keithcot Farm and Angle Park

• Nine Community Development Coordinators have been appointed to encourage parent and family involvement in services and assist them to shape the future directions of the Centres

Early Years Literacy and Numeracy • Funding provided enabled the release of 167 skilled teachers

into 139 schools to work alongside classroom teachers part time to mentor, model and guide effective literacy teaching

• Reading Recovery tutors provided intensive professional learning for 46 teachers who are training as Reading Recovery teachers

• Training was provided to 2000 teachers to use the Running Records reading assessment to assess children in Years 1 and 2

• Funding of $1 million was provided to distribute up to 79 000 books to 700 licensed child care and preschool centres and to promote reading aloud, and social, emotional and literacy development

Learning Together • To date 575 families have participated in the Learning

Together Program Junior Primary Class Sizes • The average class size in 2006 was 19 students per class with

many classes in our most disadvantaged schools averaging 15 students per class

Year 3 class sizes • Funding equivalent to 100 additional teacher salaries was

provided to primary schools to reduce class sizes Premier’s Reading Challenge • 90 per cent of eligible schools participated in the challenge

with 73 schools competing for the first time • The Challenge was completed by 90 915 students representing

a 20 per cent increase from 2005 Premier’s Be Active Challenge • The Premier’s ‘Be Active’ Challenge commenced in

April 2007. The Challenge encourages school students from reception to Year 9 to be physically active for at least one hour each day over 10 weeks

Overseas students • International student enrolments increased to 1132 students

in 2006, a 30 per cent increase from 2005 Solar Schools • To date, 97 installations have been completed in line with the

original target contained in South Australia’s Strategic Plan Behaviour Management Program • A new $10 million behaviour management program was

launched in January 2007 to manage school students who have difficult and disruptive behaviour

• The program allows schools to seek expert assistance, provides training programs for thousands of teachers and direct funding to schools

Student Completion • The number of country students who completed, of those who

potentially could have completed the SACE in 2006, increased to 88.2 per cent (compared to 87.8 per cent in 2005)

9.6


Supporting Elements • Quality teachers with a focus on achievement, engagement and

wellbeing • Highly performing and accountable leadership • Effective community engagement and governance • Develop infrastructure and organisational practices that

connect and support learning and wellbeing Birth to Year 12 Targeted Intervention – School Retention Action Plan • Continuation of certain Innovative Community Action

Networks programs and the pilot of a Flexible Learning Option

• The proportion of metropolitan students who completed, of those who potentially could have completed the SACE in 2006, remained relatively stable with 88.4 per cent completing the SACE in 2006 (compared to 88.3 in 2005)

Student Retention • The Full Time Equivalent (FTE) Apparent Retention Rate

(ie the number of students in Year 12 in 2006 divided by the number of students in Year 8 in 2002) is 72.4 per cent for government schools

Targeted Intervention – School Retention Action Plan • Between January 2004 and December 2006, a total of 7610

young people participated in programs under the School Retention Action Program

• In addition 1256 families/carers and 1405 community members also participated in programs and activities

• In 2006, 32 per cent of participants were Aboriginal young people

Pathways to Further Learning, Training and Employment • A total of 11 065 students participated in VET programs under

National Training Packages • Nearly 2000 students undertook school based apprenticeships

across a wide range of industry sectors including retail, automotive, business, food processing industries, engineering and construction

Education Works • The government announced the delivery of six new schools in

the metropolitan area as part of the $216 million ‘Education Works’ initiative

• Extensive community consultation with 18 schools and preschools was undertaken for this project. All of the schools have now voted to close and become part of the new schools

School to Work Strategy • 185 high school teachers were trained as career advisers as part

of the ‘School to Work’ Strategy Aboriginal SACE Students • In 2006, 104 Aboriginal students completed their SACE

successfully, an increase from 81 students in 2005 Indigenous Student Enrolments • Senior school enrolments for Indigenous students continued to

experience growth reaching an all time high of 575 students in 2006

Science and Mathematics Strategy • 150 schools and in excess of 300 teachers engaged in a wide

range of action learning school based activities to enhance science and mathematics programs

• 90 teachers undertook industry placements in over 70 businesses or industries through the Premier’s Industry Awards with the aim of improving the link between school based science and mathematics to its application in the community

• 26 teachers gained qualifications in the Graduate Certificate in Education (Science and Mathematics)

• 90 teachers were trained to become mentors for new science and mathematics teachers

• More than 600 students have been involved in several career expo presentations connecting science and mathematics to possible career pathways

• Action Learning Grants were provided to more than 40 schools to boost the profile of Maths and Science in the classroom

9.7



2007-08Budget


2006-07 Budget

2005-06 Actual

Program $000 $000 $000 $000 1. Early Years Education and Care

(Birth to Preschool) .................................... 100 374 99 745 116 424 108 235 2. Education — Early Years Education

(R-2) ........................................................... 373 796 364 446 351 783 349 340 3. Education — Primary and Secondary

Education (3-12)......................................... 1 226 059 1 184 278 1 149 062 1 127 176

Total 1 700 229 1 648 469 1 617 269 1 584 751

9.8


Investments 2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000 Allendale East Area School................................. 500 — — — Flagstaff Hill Schools.......................................... 1 000 — — — The Heights School Stage 2 ................................ 600 — — — Other New Works ............................................... 1 900 — — —

Total New Works 4 000 — — —

New Works Carried Forward Craigmore High School....................................... 2 000 100 100 — Trade Schools...................................................... 590 — 2 900 — Other New Works Carried Forward .................... 4 800 470 470 —

Total New Works Carried Forward 7 390 570 3 470 —

Works in Progress Birdwood High School........................................ 2 587 454 929 173 Children’s Centres............................................... 2 500 1 273 1 500 227 Henley High School ............................................ 2 316 2 399 2 542 1 128 Kingscote Area School........................................ 3 017 1 363 1 845 331 Linden Park Schools............................................ 2 000 642 1 000 458 Mawson Lakes Primary School — Stage 2 ......... 1 766 3 483 3 483 414 McDonald Park Primary School.......................... 2 000 567 500 144 Norwood Primary School.................................... 2 028 1 540 1 200 26 Port Elliot Primary School and Kindergarten...... 500 5 651 5 573 1 010 Port Lincoln Schools ........................................... 1 068 2 087 2 087 711 Victor Harbor High School ................................. 2 000 1 773 1 773 37 Other Works in Progress ..................................... 11 488 9 567 8 903 1 159


Minor Works Annual Programs................................................. 2 450 5 255 2 507 6 257 Other Minor Works ............................................. 591 26 018 25 045 43 953

Total Minor Works 3 041 31 273 27 552 50 210


9.9


Program Information

Program 1: Early Years Education and Care (Birth to Preschool)

Description/Objective: Provision of a flexible range of high quality programs and services which meet the changing needs of families and enhance children’s development in the critical early years, including the provision of child care centres, preschools, family day care, out of school-hours care and occasional care.


Program 1: Early Years Education and Care (Birth to Preschool)

2007-08Budget


2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Expenses Employee benefits and costs .............................. 93 636 89 550 93 933 94 235 Supplies and services ......................................... 8 638 10 379 49 500 11 341 Depreciation and amortisation............................ 544 518 2 980 545 Interest and other finance expenses .................... — — 47 — Grants and subsidies........................................... 28 346 29 004 852 34 881 Other .................................................................. 2 708 2 642 88 4 331

Total expenses 133 872 132 093 147 400 145 333

Income Sale of goods and services.................................. 1 854 1 810 1 340 1 299 Grant revenue..................................................... 31 571 30 467 28 830 34 402 Investment revenue ............................................ — — 153 1 356 Other .................................................................. 73 71 653 41

Total income 33 498 32 348 30 976 37 098


9.10


Sub-program: 1.1 Early Childhood Education and Care (Birth to Preschool)

Provision of a flexible range of high quality programs and services which meet the changing needs of families and enhance children’s development, including child care centres, family day care, out of school-hours care and occasional care.

2007-08 Budget


2006-07 Budget

2005-06 Actual



Qualifications of Children’s Services Staff

The Child Care Qualification Scholarship Fund provides financial assistance and work release subsidies for child care workers to undertake studies towards a Diploma of Children’s Services. A total of 51 scholarships have been offered to child care centres and Out of School-Hours Care services in South Australia with 44 services taking up the offer. A total of 17 scholarship recipients graduated with a Diploma of Children’s Services.

Students from culturally and linguistically diverse backgrounds were offered assistance with their English language proficiency while undertaking studies for a Certificate III in Children’s Services. 38 students completed the course with the majority going on to be approved care providers.

A program designed to prepare and introduce job seekers into the Family Day Care industry was developed and implemented. The program also introduced the element of remote learning using web-based training allowing training to be accessed by people living in remote areas.

Child Health and Education Support Services (CHESS)

CHESS is a joint collaboration between the Department of Education and Children’s Services (DECS), Families SA, SA Children’s Education Forum and families and communities, seeks to support learning, health and wellbeing through the improved coordination of services for children and students with physical and psychological health care needs.

As part of this commitment, 24 229 participants attended 695 courses covering a range of topics including first aid, health support planning, medication management, personal care support and planning support for children and students with conditions such as anaphylaxis and epilepsy.

Rural Care The Rural Care program provides long day care for up to four non-school age children and three school aged children at any one time in rural and remote locations. During 2006-07, programs were run in several rural locations including Cleve, Lucindale, Maitland, Mannum and Yorketown. This represents about 500 children from 360 families.

Intervac Intervac, a program providing funding for vacation care services for children with high support needs, supported 333 children from 169 out of school-hours services across South Australia.



2006-07 Target

2005-06 Actual

No. of services in Early Childhood Education and Care(a)

• Child care centres 329 293 299(b) 266

• Occasional Care(c) 80 72 75 75

• Out of School-hours Care(d)(e) 339 328 328 324

• Family Day Care 950 930 968 967

• Rural Care 12 10 12 6

• Vacation Care(e) 255 248 248 229

• Baby sitting agencies 17 14 13 15

No. of places in Early Childhood Education and Care(a)

• Child care centres 18 869 15 947 16 187 (f) 13 715

• Occasional Care(c) 3 730 3 730 3 760 3 760

• Out of School-Hours Care(d)(e) 33 278 31 845 31 845 29 430

• Family Day Care 4 000 3 989 4 171 4 158

continued

9.11

Sub-program: 1.1 Early Childhood Education and Care (Birth to Preschool) continued



2006-07 Target

2005-06 Actual

• Rural Care 84 70 84 42

• Vacation Care(e) 12 564 12 087 12 087 11 024

No. of children in Early Childhood Education and Care services(a)

• Child care centres(g)(h) 25 877 24 540 25 320(i) 23 770

• Occasional Care(g)(c) 2 320 2 270 2 420 2 420

• Out of School-hours care (estimated)(g)(j) 23 610 23 610 22 710 22 710

• Family Day Care 11 680 11 673 9 964 9 980

• Rural Care(g) 289 170 187 91

• Vacation Care(g)(j) 17 120 17 120 15 590 15 590

No. of Aboriginal children participating in Early Childhood Education and Care (estimated enrolments)(a)

• Family Day Care 120 118 113 119

• Out of School-hours Care(g)(j) 370 370 340 340

• Occasional Care(g)(c) 40 40 40 40

• Rural Care(g) 3 3 4 —

• Vacation Care (g) (j) 290 290 320 320

No. of children from culturally diverse backgrounds participating in Early Childhood Education and Care (estimated enrolments) (a)(k)

• Family Day Care 870 870 685 682

• Out of School-hours Care (g) (j) 800 800 750 750

• Occasional Care (g) (c) 250 250 220 220

• Rural Care(g) — — 4 —

• Vacation Care(g)(j) 640 640 660 660

No. of children with disabilities participating in Early Childhood Education and Care (estimated enrolments)(a)

• Family Day Care 650 645 707 791

• Out of School-hours Care(g)(j) 2 020 2 020 1 990 1 990


• Rural Care(g) 6 8 4 3

• Vacation Care(g)(j) 1 460 1 460 1 650 1 650

No. of children in rural environments participating in Early Childhood Education and Care (estimated enrolments)(a)(l)

• Family Day Care 3 820 3 813 3 982 3 982

• Out of School-hours Care(g)(j) 2 600 2 600 2 830 2 830


• Vacation Care(g)(j) 3 270 3 270 2 940 2 940

Government expenditure per child in Early Childhood Education and Care

• Cost per child in family day care(m) $2 750 $2 819 $2 890 $3 523

continued

9.12

Sub-program: 1.1 Early Childhood Education and Care (Birth to Preschool) continued



2006-07 Target

2005-06 Actual

• Cost per place in family day care(n) $8 030 $8 250 $6 905 $8 458

• Cost per place in Out of School-hours Care(n)

$43 $38 $55 $55

• Cost per organisation in Out of School-hours Care(o)

$4 212 $3 704 $5 323 $4 950

• Cost per child in a government centre(p) $775 $674 $910 $766

Footnotes (a) Services provided under this sub-program are demand driven. Therefore, targets for 2006-07 and 2007-08 have been set based on

expected demand.

(b) The 2006-07 Target consists of 20 integrated preschool/child care centres, eight children’s centres and 271 other child care centre services.

(c) These services are operated by DECS and includes three outreach services.

(d) Out of School-hours Care totals include before school, after school, and Vacation Care programs.

(e) Vacation Care is a sub-set of the Out of School-hours Care figures provided in (d).

(f) The 2006-07 Target consists of 893 integrated preschool/child care centres, 240 children’s centres and 15 054 other child care centre places.

(g) The 2006-07 Estimated Result reflects actuals rounded based on the DECS Annual Census of Children’s Services, 2006.

(h) This information has been extracted from the DECS Location Sites and Services database.

(i) The 2006-07 Target for child care centres includes 1550 children enrolled in integrated preschool/child care centres. The remainder of the target (23 770) relates to children enrolled in other child care centres.

(j) Out of School-hours Care and Vacation Care are not combined together to avoid over counting across specific groups as many children will attend both service types. Numbers are estimates based on extrapolating data to give a figure as if 100 per cent of centres provided returns. Care should be taken in the interpretation of the data as they are estimates only, not actual. Centres responding to the census differ each year, also affecting the accuracy of the estimated data.

(k) Includes children with main language other than English at home.

(l) Includes children in services in all areas outside the Adelaide Statistical Division.

(m) Derived from the total sub-program cost divided by the total number of children in the program (note: funding includes Commonwealth Child Care Benefit).

(n) Derived from the total sub-program cost divided by the total number of places (note: funding includes Commonwealth Child Care Benefit).

(o) Derived from the total sub-program cost divided by the total number of services.

(p) Derived from the total service cost divided by the estimated number of children attending. This information is derived from the occasional care figures.

9.13

Sub-program: 1.2 Preschool Services

Provision of early childhood education through preschools, child-parent centres and the purchase (coordination, policy, planning, curriculum, quality regulation and funding) of preschool positions through independent community organisations.

2007-08 Budget

2006-07 Estimated Result

2006-07 Budget

2005-06 Actual



Learning Together

To date, 575 families have been involved in a range of activities in the five community based Learning Together Programs including facilitated playgroups, parent study groups and home visits.

Inclusive Preschool Program

Seven preschools ran an Inclusive Preschools program to provide additional community-based preschool options for children with additional needs.

Preschool Bilingual Program The Preschool Bilingual Program continued to facilitate access to and participation in preschools for children and families from culturally and linguistically diverse backgrounds. Support was provided to 650 children each term through the program’s 130 bilingual workers.

Aboriginal Preschool Enrolments The number of preschool enrolments for Aboriginal 3-5 Year olds reached an all time high of 1156 children. The department continued to support these children through the provision of additional resourcing to preschool centres with enrolments of eight or more 3 Year old Aboriginal children. Additional funding was also provided to 158 centres to strengthen relationships with families and communities.


2006-07 Estimated Result

2006-07 Target

2005-06 Actual

No. of children in preschool services(a)(b)

• attendances 15 250 15 570 15 220 15 230

• enrolments 17 360 17 810 17 340 17 280

No. and % of children participating in early childhood education categorised by group (estimated enrolments and % of total enrolments)(b)(c)

• gender

− male maintain 9 160 (51.4%) maintain 8 900 (51.5%)

− female maintain 8 650 (48.6%) maintain 8 390 (48.5%)

• Aboriginal children maintain 1 060 (6.0%) maintain 1 010 (5.8%)

• children from culturally diverse backgrounds(d)

maintain 1 700 (9.5%) maintain 1 700 (9.8%)

• children with disabilities(e) maintain 2 690 (15.1%) maintain 2 660 (15.4%)

• children in rural environments(f) maintain 5 770 (32.4%) maintain 5 420 (31.4%)

Government expenditure per child in preschools(g)

$5 468 $5 243 $6 358 $6 023

Footnotes (a) An enrolment represents a child being registered with a preschool. An attendance represents a child attending a session for which

they are enrolled. Number of children figures are based on eligible enrolments and attendances as at Term 2 each year and include only government-funded preschools (includes grant-funded centres and funded Catholic education preschools). The difference between the number of enrolments and attendances is due to the non-compulsory nature of preschool. Figures exclude children in play centres and children attending preschool centres for other services.

(b) The 2006-07 Estimated Result reflects actuals rounded based on the DECS Preschool Staffing Data Collection Term 2 2006.

(c) Participation figures for specific groups are available for enrolments only and include children enrolled in preschool services during a survey reference week.

(d) Includes children with main language other than English at home.

(e) The children with disabilities figure is estimated and includes students identified as having special needs.

(f) Includes children in preschools in all areas outside the Adelaide Statistical Division.

(g) Derived from total sub-program cost divided by the number of enrolments. These figures were derived from the published budget figures.

9.14


Program Information

Program 2: Education — Early Years Education (R–2)

Description/Objective: Provision of early years education.


Program 2: Education — Early Years Education (R–2)

2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 338 437 328 589 324 453 314 918 Supplies and services........................................ 109 736 109 675 100 137 104 359 Depreciation and amortisation .......................... 12 485 12 339 11 673 13 551 Interest and other finance expenses .................. 200 200 187 93 Grants and subsidies ......................................... 2 614 1 575 1 485 1 325 Other................................................................. 6 703 6 461 348 4 817

Total expenses 470 175 458 839 438 283 439 063

Income Sale of goods and services................................ 23 940 23 362 23 473 20 337 Grant revenue ................................................... 55 325 54 292 46 463 50 889 Investment revenue........................................... 1 822 1 822 1 785 3 943 Other................................................................. 15 292 14 917 14 779 14 554

Total income 96 379 94 393 86 500 89 723


9.15

Program performance

Program 2: Education: Early Years Education (R–2)

2007-08 Budget


2006-07 Budget

2005-06 Actual



Running Records

A total of 140 trained Running Records facilitators trained 2000 teachers to use the Running Records reading assessment tool to assess children in Years 1 and 2.

Reading Recovery

Reading Recovery tutors provided intensive professional learning for 46 teachers who are training as Reading Recovery teachers.

Early Years Literacy and Numeracy

A joint project between DECS and the University of South Australia called ‘Children of the New Millennium’ examined how 4 to 8 Year olds engaged with technology. As a result of the research conducted, the need for professional development for teachers working with young children was identified. Workshops, a ‘Multiliteracies Map’, and a shared conceptual framework were developed to meet this need. Over 1000 teachers attended the workshops which were facilitated by district staff and were supported by staff from the districts and State Office.



2006-07 Target

2005-06 Actual

No. of students in Reception to Year 2(a)

• total no. of students 39 904(b) 40 980 40 261 41 180

• no. of Aboriginal students 2 005 2 000 1 980 1 970

• no. of students with disabilities(c) 3 425 3 280 3 189 3 070

• no. of students with English as a second language(d) 4 995 5 000 4 282 4 600

• no. of rural and isolated students(e) 13 590 13 620 13 687 13 860

Total R–2 funding (government schools) per student(f) $11 783 $11 197 $10 886 $10 662

Footnotes

(a) Numbers of students are expressed in full-time equivalent (that is full-time plus full-time equivalent of part-time) as at the August Census each year. All figures include students not allocated to year level, apportioned based on their age. Totals for 2006-07 are actuals rounded based on the DECS School Enrolment Census Term 3, 2006.

(b) 2007-08 Targets are based on population estimates provided by the Australian Bureau of Statistics (ABS) and Planning SA. (c) Includes students with physical, intellectual or sensory impairments and/or disabilities in communication and language, who have been

referred for special education support by the guidance or speech pathology service. (d) Includes students receiving support. (e) Includes all areas outside the Adelaide Statistical Division. (f) Derived from total sub-program cost divided by the number of students.

9.16


Program Information

Program 3: Education — Primary and Secondary Education (3–12)

Description/Objective: Provision of Primary and Secondary Education.


Program 3: Education — Primary and Secondary Education (3–12)

2007-08Budget


2006-07 Budget

2005-06 Actual

$000 $000 $000 $000

Expenses Employee benefits and costs............................. 1 104 861 1 063 449 1 057 241 1 016 099 Supplies and services........................................ 361 590 357 668 326 300 336 714 Depreciation and amortisation .......................... 40 233 39 813 38 038 43 723 Interest and other finance expenses .................. 645 645 611 301 Grants and subsidies ......................................... 8 073 6 708 4 837 4 275 Other................................................................. 21 628 20 846 1 133 15 544

Total expenses 1 537 030 1 489 129 1 428 160 1 416 656

Income Sale of goods and services................................ 77 244 75 379 75 738 65 654 Grant revenue ................................................... 178 511 175 467 149 915 164 147 Investment revenue........................................... 5 878 5 878 5 762 12 724 Other................................................................. 49 338 48 127 47 683 46 955

Total income 310 971 304 851 279 098 289 480

Net cost of providing services 1 226 059 1 184 278 1 149 062 1 127 176

9.17


Sub-program: 3.1 Year 3 to Year 7 Education Provision

Delivery of Year 3 to Year 7 educational programs at the local level.

2007-08 Budget


2006-07 Budget

2005-06 Actual



Literacy and Numeracy

South Australia’s Strategic Plan has set targets to increase Year 3, 5 and 7 student performance in literacy and numeracy to reach 93 per cent by 2010. At the time of reporting, the Ministerial Council for Education, Employment, Training and Youth Affairs has not calculated national data on achievement against benchmarks for 2006. Therefore, benchmarks for 2006 cannot be gauged at this time.

Benchmarks are nationally agreed minimum acceptable standards for aspects of literacy and numeracy at particular year levels. They are expressed as a percentage of the students who achieved the benchmark. Generally, the percentage of South Australian students achieving the benchmark has remained steady or slightly increased over the years, although in some cases a trend is emerging showing an overall increase in the percentage of students achieving the benchmark.

The following examples include:

• the percentage of Year 3 students achieving the national benchmark in reading in 2005 has remained the same (ie 91 per cent); • the percentage of Year 3 students achieving the national benchmark in writing in 2005 has increased (ie 92 per cent compared with

90 per cent in 2004); • the percentage of Year 3 students achieving the national benchmark in numeracy in 2005 has increased (ie 93 per cent compared with

92 per cent in 2004); • the percentage of Year 5 students achieving the national benchmark in numeracy in 2005 has remained the same (ie 90 per cent); • the percentage of Year 7 students achieving the national benchmark in reading in 2005 had increased (ie 94 per cent compared with

93 per cent in 2004); and • the percentage of Year 7 students achieving the national benchmark in writing has remained the same (ie 88 per cent).

The South Australian Aboriginal achievement statistics are particularly vulnerable to fluctuations from year to year. This is mainly due to three factors: the small cohort of Aboriginal students (between 400 and 500 students in each cohort), their restricted spread in terms of achievement that sees many Aboriginal students being around benchmark standard, and variable skill ability across the aspects of reading, writing, spelling and numeracy. Improving Aboriginal student achievement continues to be a priority for the department.

Premier’s Reading Challenge

The Premier’s Reading Challenge continued to experience strong growth with 90 per cent of eligible schools participating in the challenge in 2006 and 73 schools competing for the first time. Approximately 90 915 students completed the Challenge representing a 28 per cent increase from 2005 (in 2005, 71 299 students completed the challenge).

Anecdotal evidence from schools indicates that the challenge is having a considerable impact on the motivation of students to read particularly boys. Boys represented 51 per cent of total students completing the challenge.

Child Protection Several Child Protection initiatives were undertaken during the year including:

• a total of 278 school counsellors were allocated to 375 schools representing 62 per cent of all schools; • a screening policy was developed and endorsed by the government and non-government school sectors and DECS established its own

screening unit as a Crimtrac agency; • a full day’s Mandatory Notification Training was provided to all teaching and non-teaching staff in every South Australian

government school and preschool; • the SMART (Strategies for Managing Abuse Related Trauma) program was delivered to 780 primary and secondary counsellors and

student wellbeing personnel; and • the two day SMART forum was conducted with 50 teachers working with Aboriginal children and young people. Student Behaviour Management Program A new $10 million behaviour management program was launched in January 2007. The program includes:

• professional training for more than 7500 teachers and school services officers in over 600 state schools over the next three years and training for teaching students in universities;

• specific funding to enable state primary schools and high schools to implement local programs that are aimed at improving students’ social skills and to improve their chances of staying at school;

• the appointment of 10 coordinators to work intensively with 100 schools on approaches to behaviour management involving the entire school community; and

• high level professional support for an extra 120 individual students with a mental health disorder or a history of challenging behaviour, including students in special schools.

continued

9.18

Sub-program: 3.1 Year 3 to Year 7 Education Provision continued



2006-07 Target

2005-06 Actual

No. of students in Year 3 to Year 7(a)




• no. of students with English as a second language(d)

7 745 7 770 6 660 7 190


Average rate of attendance (%)(f)

• Year 6 Increase by 1% (Years 6–9)

93 Increase by 1% (Years 6–9)

92



92

Year 3 students achieving the national benchmark in reading (%)(g)(h)

• all students increase not yet available increase 91

• female students increase not yet available increase 93

• male students increase not yet available increase 89

• Aboriginal students(i) increase not yet available increase 71

• students from a language background other than English

increase not yet available increase 94

Year 3 students achieving the national benchmark in writing (%)(g)(h)







Year 3 students achieving the national benchmark in numeracy (%)(g)(h)







Year 5 students achieving the national benchmark in reading (%)(g)(h)







continued

9.19




2006-07 Target

2005-06 Actual















Year 7 students achieving benchmark in reading (%)(g)(h)





















Total Years 3–7 funding (government schools) per student(j)

$10 800 $10 163 $10 003 $9 643

continued

9.20


Footnotes (a) Numbers of students are expressed in full-time equivalent (that is full-time plus full-time equivalent of part-time) as at the August

Census each year. Totals for 2006-07 are actuals rounded based on the DECS School Enrolment Census Term 3 2006. Totals are in accordance with those provided in the National Schools Statistics Collection. All figures include students not allocated to a year level, apportioned based on their age.

(b) 2007-08 Targets are based on population estimates provided by the ABS and Planning SA.

(c) Includes those with physical, intellectual or sensory impairments and/or disabilities in communication and language, who have been referred for special education support by the guidance or speech pathology service.

(d) Includes students receiving support.

(e) Includes all areas outside the Adelaide Statistical Division.

(f) Attendance rates are calculated using: full-time students; students enrolled in only one school for the entire term; students who were enrolled at the Term 3 census; and whole day absences.

(g) Benchmarks are nationally agreed minimum acceptable standards for aspects of literacy and numeracy at particular year levels. They are expressed as a percentage of the students who achieved the benchmark. The Ministerial Council for Education, Employment, Training and Youth Affairs has not released national data on achievement against benchmarks for 2006. Therefore South Australian performance against the national data cannot be gauged at this time and a specific target for 2007-08 cannot be established.

(h) Annual fluctuations in benchmarks will occur and are affected by the size of the student cohort and the spread (or variation) of student achievement along the achievement continuum. Fluctuations may also be caused in the process of equating new literacy and numeracy tests, which are developed each year, when scaling occurs to account for variations in test difficulties from year to year. Equating is an issue, though every effort is made to ensure its accuracy. In recognition of the uncertainty associated with benchmarks, state statistics are based on the 95 per cent confidence interval for the estimation of benchmarks.

(i) The South Australian Aboriginal achievement statistics are particularly vulnerable to fluctuations from year to year. This is mainly due to three factors, the small cohort of Aboriginal Students (between 400 and 500 students in each cohort), their restricted spread in terms of achievement that sees many Aboriginal students around benchmark standard, and variable skill ability across the aspects of reading, writing, spelling and numeracy. The error rate associated with Aboriginal Students is large and around + six per cent, meaning that the percentage of Aboriginal students achieving benchmark standard has a 12 per cent point range. Where there are apparent decreases, this may not be real when the error margins are considered. The reason for some confidence intervals being larger than others (such as for Aboriginal students) is due mainly to the relatively small size of the specific group – in general, the larger the population taking the test, the narrower the confidence interval will be.

(j) Derived from the total sub-program cost divided by the number of students.

9.21


Delivery of Year 8 to Year 10 educational programs at the local level.

2007-08 Budget


2006-07 Budget

2005-06 Actual



South Australia’s Strategic Plan and the department have continued to focus on retention, attendance, engagement, literacy, numeracy, science, student wellbeing, and the need to build consistency and cohesiveness in the teaching workforce across the middle years of schooling.

Mentoring Strategies

250 community mentors in seven pilot programs across 37 schools supported 281 young people to remain engaged in learning and make a successful transition from primary to secondary schooling since the program began. Community mentors were screened, attended a comprehensive induction program and were provided with ongoing professional development and support. The trial of a new mentoring model with potential for sustaining the program has commenced.

Science and Mathematics Strategy

The Science and Mathematics Strategy has seen the implementation of several initiatives including:

• 14 projects were designed to support teachers to improve the quality of learning in science and mathematics; • 150 schools and in excess of 300 teachers engaged in a wide range of action learning school based activities to enhance science and

mathematics programs; • 90 teachers were placed in excess of 70 different businesses or industries through the Premier’s Industry Awards with the aim of

improving the link between school based science and mathematics to its applications in the community. This project has been extremely successful with a number of resources developed to be used across R–12;

• 26 teachers gained the Graduate Certificate in Education (Science and Mathematics) and a number are now enrolled in Masters programs;

• 90 more experienced teachers were trained as mentors of beginning science and mathematics teachers and approximately 70 of these relationships were established; and

• more than 600 students were involved in several career expo presentations connecting science and mathematics to possible career pathways.

Attendance Improvement

• Attendance improvement plans with locally developed targets and strategies to improve attendance were implemented in all government schools.

• An electronic leave pass process was introduced in all government schools with secondary enrolments. South Australia is the first state to introduce an electronic process for tracking these students.

• Student Attendance Counsellors supported identified schools to conduct research to identify specific absenteeism and develop localised strategies to address them.



2006-07 Target

2005-06 Actual

No. of students in Year 8 to Year 10(a)





3 800 3 820 3 433 3 570


Average rate of attendance (%)(f)



89



87

Total 8–10 funding (government schools) per student(g)

$13 748 $13 330 $12 601 $12 628

continued

9.22


Footnotes (a) Number of students are expressed in full-time equivalent (that is full-time equivalent plus full-time equivalent of part time) as at the

August Census each year. Totals for 2006-07 are actuals rounded based on the DECS School Enrolment Census Term 3, 2006. Totals are in accordance with those provided in the National Schools Statistics Collection. All figures include students not allocated to a year level, apportioned based on their age.





(f) Attendance rates are calculated using: full time students; students enrolled in only one school for the entire term; students who were enrolled at the Term 3 Census and whole day absences.

(g) Derived from total sub-program cost divided by the number of students.

9.23


Delivery of Year 11 to Year 12+ educational programs at the local level.

2007-08 Budget


2006-07 Budget

2005-06 Actual



Innovative Community Action Networks (ICANs)

Through ICANs, established as part of the School Retention Action Plan, 2559 young people with multiple issues of disadvantage have participated in programs established in collaboration with their schools, local communities and community based support agencies. The development of innovative and responsive engagement and retention policy is a key objective sought from the implementation of ICANs.

An important policy outcome was the development and successful trialling of a Flexible Learning Option enrolment funding model. This expands the recognised learning space for ‘at risk’ young people so learning can be delivered within a school as well as within a wider learning space in the community. Implementation of the model will enable schools to provide some flexibility around delivery of an individual learning plan tailored to meet the needs of identified students most at risk of leaving school early.

Pathways to Further Learning, Training and Employment

A total of 11 065 students participated in Vocational Education Training (VET) programs on national Training Packages. These students undertook a total of 1 998 151 hours of training – an average of approximately 181 hours per student or the equivalent of three SACE units per student.

Nearly 2000 students undertook school-based apprenticeships across a wide range of industry sectors including retail, automotive, business, food processing industries, engineering and construction.

Aboriginal SACE students

A data sharing arrangement was negotiated between DECS and SSABSA to develop a systems approach to the monitoring of Aboriginal SACE students to enable districts and schools to receive specific data about Aboriginal students completing their SACE. The data facilitated individual, family and round table conversations about students and their SACE patterns in the context of personal aspirations and their Individual Learning Plans.

In 2006, 104 Aboriginal students successfully completed their SACE compared to 81 students in 2005. This was the highest number of Aboriginal students to ever achieve the SACE.

Mentoring Strategies Mentoring strategies implemented to encourage retention and engagement included: • 3236 young people were supported by 80 teacher mentors across 45 secondary schools to remain at school or make successful

transitions to further training and/or employment. Retention of students each year in learning or earning has reached 95 per cent since the program commenced in mid-2003. Teacher mentors were supported through extensive professional development;

• 1811 young people in Years 11 and 12 were supported to remain in learning until the end of Year 12 to complete their SACE, further education/training or gain sustainable employment in 2006. A destination survey conducted in June 2006 identified that 82 per cent of the Year 12 students who participated in the program in 2005 were in learning or earning. Comparative 2005 data published by Dusseldorp Skills Forum (‘How Young People are Faring’) report a South Australia average of 64.3 per cent for this cohort; and

• mentoring programs were run in 45 secondary schools to assist 3236 young people to remain at school or make successful transitions to further training and/or employment.

Futures Connect

• 81 students from metropolitan Adelaide and 40 students from regional areas participated in transition programs designed to provide training and build the employability skills of students with additional needs in line with their interests.

• 252 students took part in accredited SACE and VET courses offered through the Statewide Transition Centres at Daws Road and Prospect.

Trade Schools for the Future As part of the 2006-07 Budget, the government committed $24.8 million to establish 10 Trade Schools of the Future over the next four years. Additional resources have been provided to enhance this initiative in the 2007-08 Budget. The Trade Schools, which will help South Australia address areas of skill shortage in the state’s economy, will complement other vocational education and training programs in DECS schools and provide expanded learning pathways for students. During 2006-07, sites in Adelaide’s North, West and the Upper Spencer Gulf were identified. To support the establishment of the first three Trade Schools: • Parafield Gardens High School was announced as the location for Northern Adelaide Trade School for the Future, specialising in

areas including electronics, advanced manufacturing and engineering; • the location for the operation of the Western Adelaide Trade School for the Future was announced for Le Fevre High School with a

focus on areas such as engineering, electro-technology and construction; • Edward John Eyre High School in Whyalla and Peterborough Hill School were announced as the locations for the operation of the

Eyre and Upper Spence Trade School for the Future that specialises in skills needed for the mineral resources industry and transport, health and community services; and

• the scoping of infrastructure enhancements and procurement processes began.

continued

9.24




2006-07 Target

2005-06 Actual

No. of students in Year 11 to Year 12+(a)


• no. of Aboriginal students 545 600 544 530



2 635 2 590 2 290 2 530


Apparent retention rate Years 8–12 (full-time equivalent) all students(f)

Continue to Increase to meet South Australia’s Strategic Plan target

72.4 Continue to increase to meet South Australia’s Strategic Plan target

72.4

Apparent retention rate Years 10–12 (full-time equivalent) all students(f)

Continue to Increase to meet South Australia’s Strategic Plan target

75.3 Continue to increase to meet South Australia’s Strategic Plan target

75.4

Apparent retention rate Years 8–12 (full-time equivalent) Indigenous students(f)

increase 39.4 increase 36.7

Apparent retention rate Years 10–12 (full-time equivalent) Indigenous students(f)


Apparent retention rate Years 8–12 (full-time equivalent) male students(f)


Apparent retention rate Years 10–12 (full-time equivalent) male students(f)


Apparent retention rate Years 8–12 (full-time equivalent) female students(f)


Apparent retention rate Years 10–12 (full-time equivalent) female students(f)


Total Years 11–12+ funding (government schools) per student(g)

$14 665 $14 389 $13 899 $13 412

Footnotes (a) Number of students are expressed in full-time equivalent (that is full-time equivalent plus full-time equivalent of part time) as at the

August Census each year. Totals for 2006-07 are actuals rounded based on the DECS School Enrolment Census Term 3 2006. Totals are in accordance with those provided in the National Schools Statistics Collection. All figures include students not allocated to a year level, apportioned based on their age.





(f) Retention is one measure contributing to South Australia’s Strategic Plan target. Apparent retention rates refer to the percentage of students of a given cohort group who continued to a particular level/year of education. Care should be taken in the interpretation of apparent retention rates since a range of factors affecting the calculation have not been taken into account. These factors are more significant when calculating the rate at small area levels such as distinct groups (eg Aboriginal retention rates).

(g) Derived from total sub-program cost divided by the number of students.

9.25

DEPARTMENT OF EDUCATION AND CHILDREN'S SERVICES


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 1 270 269 1 224 797 1 238 962 1 145 044 Long service leave .................................................................... 43 725 42 758 24 954 67 246 Payroll tax ................................................................................ 76 994 73 755 72 940 77 619 Superannuation ......................................................................... 145 946 140 278 138 771 130 451 Other ......................................................................................... — — — 4 892Supplies and services — General supplies and services .................................................. 479 964 477 722 475 937 452 346 Consultancy expenses .............................................................. — — — 68Depreciation and amortisation ..................................................... 53 262 52 670 52 691 57 819Borrowing costs ............................................................................ 845 845 845 394Grants and subsidies ..................................................................... 38 602 37 195 7 174 39 512Intra government transfers ........................................................... 431 92 — 969Other expenses ............................................................................. 31 039 29 949 1 569 24 692

Total expenses .............................................................................. 2 141 077 2 080 061 2 013 843 2 001 052

Income

Commonwealth revenues ............................................................. 223 641 223 866 213 698 220 663Intra government transfers ........................................................... 41 766 36 360 11 510 22 228Other grants .................................................................................. — — — 6 547Sales of goods and services .......................................................... 103 038 100 551 100 551 87 290Interest revenues ........................................................................... 7 700 7 700 7 700 18 023Net gain or loss from disposal of assets ....................................... — — — 1 166Other income ................................................................................ 64 703 63 115 63 115 60 384

Total income ................................................................................. 440 848 431 592 396 574 416 301

Net cost of providing services ...................................................... 1 700 229 1 648 469 1 617 269 1 584 751


Income — Appropriation ........................................................................... 1 700 459 1 617 108 1 616 095 1 505 967 Other income ............................................................................ — 2 166 — 62 204Expenses — Cash alignment ......................................................................... 856 — — —

Net income from / expenses to SA Government .......................... 1 699 603 1 619 274 1 616 095 1 568 171

Net result ...................................................................................... -626 -29 195 -1 174 -16 580

9.26


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 354 795 317 602 352 907 326 207Receivables ................................................................................... 17 303 17 502 42 793 17 900Inventories .................................................................................... 10 017 10 017 1 150 10 017Financial assets ............................................................................. 6 931 6 931 3 927 6 931Other current assets ...................................................................... 835 835 959 836


Non current assets

Financial assets ............................................................................. 644 644 905 644Land and improvements ............................................................... 2 063 714 2 073 297 2 014 128 2 066 332Plant and equipment ..................................................................... 31 537 33 915 31 663 36 308Intangible assets ........................................................................... 3 483 3 483 4 282 3 483


Total assets ................................................................................... 2 489 259 2 464 226 2 452 714 2 468 658

Liabilities

Current liabilities

Payables ........................................................................................ 97 755 95 958 121 944 95 002Short-term borrowings ................................................................. 805 1 258 2 367 1 407Employee benefits — Salaries and wages ................................................................... 12 160 7 434 6 816 7 298 Sick leave ................................................................................. 34 34 — 34 Annual leave ............................................................................. 64 147 62 172 63 096 69 417 Long service leave .................................................................... 36 617 35 838 34 864 34 053Short-term provisions ................................................................... 21 348 20 578 19 562 19 298Other current liabilities ................................................................. 18 693 18 693 15 132 17 645



Long-term borrowings .................................................................. 643 1 390 6 523 5 016Long-term employee benefits — Sick leave ................................................................................. 13 13 — 13 Long service leave .................................................................... 323 249 310 864 268 798 291 302Long-term provisions ................................................................... 97 585 93 158 82 042 84 567Other non-current liabilities ......................................................... 2 592 2 592 170 167



Net assets ...................................................................................... 1 813 618 1 814 244 1 831 400 1 843 439

9.27


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000

Equity

Contributed capital ....................................................................... 4 463 4 463 4 463 4 463Retained earnings ......................................................................... 1 107 301 1 107 927 1 198 874 1 137 122Asset revaluation reserve ............................................................. 701 854 701 854 628 063 701 854

Total equity .................................................................................. 1 813 618 1 814 244 1 831 400 1 843 439


9.28



Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... 4 463 701 854 1 137 122 1 843 439Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... 4 463 701 854 1 137 122 1 843 439





Estimated balance at 30 June 2007 4 463 701 854 1 107 927 1 814 244





Estimated balance at 30 June 2008 4 463 701 854 1 107 301 1 813 618

9.29



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Employee payments ..................................................................... 1 515 467 1 461 660 1 467 607 1 372 454Supplies and services ................................................................... 479 964 477 722 475 937 456 913Borrowing costs ............................................................................ 845 845 845 375Grants and subsidies ..................................................................... 38 602 37 195 7 174 38 709Net GST paid ................................................................................ — — — 53 633Intra government transfers ........................................................... 431 92 — 969Other payments ............................................................................ 25 448 24 608 1 366 22 102

Cash used in operations ................................................................ 2 060 757 2 002 122 1 952 929 1 945 155

Cash inflows

Intra government transfers ........................................................... 41 766 36 360 11 510 22 228Commonwealth receipts ............................................................... 223 641 223 866 213 698 220 663Other grants .................................................................................. — — — 6 827Sales of goods and services .......................................................... 103 210 100 726 100 726 83 093Interest received ........................................................................... 7 700 7 893 7 893 17 826Net GST received ......................................................................... — — — 56 273Other receipts ............................................................................... 64 531 62 940 62 940 65 017


SA GOVERNMENT:

Appropriation ............................................................................... 1 700 459 1 617 108 1 616 095 1 505 967Other receipts ............................................................................... — 2 166 — 62 204Payments — Cash alignment ......................................................................... 856 — — —

Net cash provided by SA Government ......................................... 1 699 603 1 619 274 1 616 095 1 568 171



Cash outflows

Purchase of property, plant and equipment .................................. 47 701 62 642 62 357 53 024Other payments ............................................................................ — — — 3 004


Cash inflows

Proceeds from sale of property, plant and equipment .................. 6 400 5 400 5 400 4 927Other receipts ............................................................................... — — — 261



9.30



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Repayment of borrowings ............................................................ 1 200 300 1 200 2 485

Cash used in financing activities .................................................. 1 200 300 1 200 2 485

Net cash provided by (+) / used in (-) financing activities ........... -1 200 -300 -1 200 -2 485

Net increase (+) / decrease (-) in cash equivalents ....................... 37 193 -8 605 1 776 41 618



9.31

ADMINISTERED ITEMS FOR THE DEPARTMENT OF EDUCATIONAND CHILDREN'S SERVICES


2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual


Income — Appropriation ........................................................................... 157 631 150 919 143 779 135 981 Other income ............................................................................ — 2 099 — 236



Commonwealth revenues ............................................................. 486 303 468 057 435 661 445 975Intra government transfers ........................................................... — — — 100Sales of goods and services .......................................................... 2 096 2 007 1 968 2 025Interest revenues ........................................................................... 272 300 300 300Net gain or loss from disposal of assets ....................................... — — — 3Other income ................................................................................ 54 2 127 172 672


Total income ................................................................................. 646 356 625 509 581 880 585 292

Expenses

Employee benefits and costs — Salaries, wages, annual and sick leave ..................................... 9 283 8 949 8 836 8 234 Long service leave .................................................................... 6 3 — 157 Payroll tax ................................................................................ 624 600 590 421 Superannuation ......................................................................... 1 174 1 132 1 115 763 Other ......................................................................................... — — — 235Supplies and services — General supplies and services .................................................. 3 048 3 706 3 776 4 723 Consultancy expenses .............................................................. 32 31 31 7Depreciation and amortisation ..................................................... 292 288 288 306Borrowing costs ............................................................................ 64 196 196 371Grants and subsidies ..................................................................... 601 079 584 933 564 515 558 290Intra government transfers ........................................................... 30 500 21 690 2 232 12 059Other expenses ............................................................................. 40 3 949 38 39

Total expenses .............................................................................. 646 142 625 477 581 617 585 605

Net result ...................................................................................... 214 32 263 -313

9.32


Balance sheet__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000Assets

Current assets

Cash and cash equivalents ............................................................ 4 222 4 215 4 217 3 935Receivables ................................................................................... 1 410 2 469 4 396 4 025Other current assets ...................................................................... 136 136 74 136


Non current assets

Plant and equipment ..................................................................... 654 848 784 1 040

Total non-current assets ............................................................... 654 848 784 1 040

Total assets ................................................................................... 6 422 7 668 9 471 9 136

Liabilities

Current liabilities

Payables ........................................................................................ 1 273 1 273 1 540 1 273Short-term borrowings ................................................................. — 1 460 1 460 1 500Employee benefits — Salaries and wages ................................................................... 141 141 1 141 Annual leave ............................................................................. 374 375 368 375 Long service leave .................................................................... 41 41 29 41



Long-term borrowings .................................................................. — — 1 000 1 460Long-term employee benefits — Long service leave .................................................................... 1 062 1 061 923 1 061



Net assets ...................................................................................... 3 531 3 317 4 150 3 285

Equity

Retained earnings ......................................................................... 2 419 2 205 3 026 2 173Other reserves ............................................................................... 1 112 1 112 1 124 1 112

Total equity .................................................................................. 3 531 3 317 4 150 3 285


9.33



Contributedcapital

$000

Assetrevaluation

reserve

$000

Retainedearnings

$000

Total

$000

Balance at 30 June 2006 ............................................................... — — 3 285 3 285Adjustments .................................................................................. — — — —

Restated balance at June 2006 ...................................................... — — 3 285 3 285











9.34



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash inflows

Intra government transfers ........................................................... — — — 100Commonwealth receipts ............................................................... 486 303 468 057 435 661 445 975Sales of goods and services .......................................................... 2 096 2 007 1 968 1 906Interest received ........................................................................... 326 472 472 619Net GST received ......................................................................... — — — 13 249Other receipts ............................................................................... — 1 955 — 296


Cash outflows

Employee payments ..................................................................... 11 087 10 684 10 541 9 566Supplies and services ................................................................... 14 875 14 602 14 672 15 440Borrowing costs ............................................................................ 64 196 196 378Grants and subsidies ..................................................................... 589 284 574 068 553 650 546 347Net GST paid ................................................................................ — — — 13 020Intra government transfers ........................................................... 30 500 21 690 2 232 12 059Other payments ............................................................................ 40 3 949 38 33


SA GOVERNMENT:

Appropriation ............................................................................... 157 631 150 919 143 779 135 981Other receipts ............................................................................... — 2 099 — 236


Net cash provided by (+) / used in (-) operating activities ........... 506 320 551 1 519


Cash inflows

Proceeds from sale of property, plant and equipment .................. — — — 3Repayment of advances ................................................................ 1 059 1 556 1 556 1 919


Cash outflows

Purchase of property, plant and equipment .................................. 98 96 96 410

Cash used in investing activities .................................................. 98 96 96 410

Net cash provided by (+) / used in (-) investing activities ........... 961 1 460 1 460 1 512

9.35



2007-08Budget

$000

2006-07Estimated

result

$000

2006-07Budget

$000

2005-06Actual

$000


Cash outflows

Repayment of borrowings ............................................................ 1 460 1 500 1 500 2 500


Net cash provided by (+) / used in (-) financing activities ........... -1 460 -1 500 -1 500 -2 500

Net increase (+) / decrease (-) in cash equivalents ....................... 7 280 511 531



9.36


Financial Commentary — Major resource variations

The following commentary relates to variations between the 2006-07 Estimated result and the 2007-08 Budget.


The net increase in expenses of $61.0 million is primarily due to increased expenditure for:

• Salary Supplementation for the latest Enterprise Bargaining Agreements — $54.9 million.

• Full year impact of 2006-07 State Budget initiatives: SACE review, Children’s Centres, extra 100 teachers and mandatory healthy food guidelines — $12.2 million.

• Investing In Our Schools program funded by the Commonwealth — $8.8 million.

• Operating expenditure recognised as investing payments in 2006-07 — $3.6 million.

• Additional self funded expenditure by schools — $3.3 million.

• Additional operational support for the Trade Schools initiative — $2.9 million.

• Social Inclusion - Innovative Community Action Networks (ICANS) initiative funding from the Department of the Premier and Cabinet — $1.2 million.

The increase in expenditure is offset by:

• A decrease in expenditure associated with a projected decrease in budgeted student enrolments — $11.4 million.

• Full year impact of 2006-07 State Budget savings measures — $18.2 million

The net increase in income of $9.3 million is primarily due to:

• Additional Commonwealth funding for the Investing In Our Schools program — $8.8 million.

• Additional revenues generated by schools — $3.3 million.

• Social Inclusion - ICANS Initiative funding from the Department of the Premier and Cabinet — $1.2 million.

The increase in income is offset by:

• Once-off funding in 2006-07 for the construction and commissioning of swimming pools in the Anangu Pitjantjatjara Yankunytjatjara (APY Lands) received from the Department of the Premier and Cabinet — $2.2 million.

• Funding for the Social Inclusion - School Retention Action Plan provided via appropriation in 2007-08 — $2.2 million.

9.37


There is no significant change in the net asset position of the department.

Statement of changes in equity — Controlled

There is no significant change in the Statement of changes in equity.


The increase in net cash provided in operating activities of $30.8 million is primarily due to the increase in accrual appropriation, together with other items discussed under the Income Summary commentary.

The decrease in net cash used in investing activities of $15.9 million is primarily due to $6.0 million of land sales to be generated from the Education Works strategy in 2007-08, an accounting adjustment in defining capital expenditure between investing and operating of $3.6 million, completion of the APY Lands swimming pools project in 2006-07 of $2.2 million, the provision of $1.4 million of above standard facilities self funded by schools as part of the 2006-07 Capital Works Assistance Scheme and inclusion in the 2006-07 Budget of $1.1 million of works delayed from 2005-06.

Administered Items

Income statement — Administered

The increase in expenses of $20.7 million is primarily due to the increase in non-government schools per capita grants of $14.8 million due to an increase in enrolments and an increase in the Commonwealth funded Investing In Our Schools program of $8.8 million.

The increase in expenses is funded via an increase in Commonwealth revenues of $18.2 million and an increase in state funding of $4.6 million, which includes an additional $2.7 million for non-government schools per capita grants.

Balance sheet — Administered

There is no significant change in the net asset position of the Administered Items.

Statement of changes in equity — Administered

There is no significant change in the Statement of changes in equity.

Cash flow statement — Administered

The movement in cash payments and receipts are consistent with the changes discussed under the Income statement — Administered.

9.38



9.39

Additional Information for Administered Items Department of Education and Children’s Services

Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

CASH FLOWS FROM:

Operating Activities

Receipts

Intra-government transfers —

Senior Secondary Assessment Board of South Australia .......... — — — 97

Consultative Committees .......................................................... — — — 3

Commonwealth Government grants and payments —

Non-Government schools ......................................................... 486 303 468 057 435 661 445 975

Sales of goods and services —

Senior Secondary Assessment Board of South Australia .......... 2 096 2 007 1 968 1 906

Interest —

School Loans Assistance Scheme ............................................. 64 196 196 438

Senior Secondary Assessment Board of South Australia .......... 262 276 276 181

Net GST received —

Expenses for Administered Items ............................................. — — — 13 260

Senior Secondary Assessment Board of South Australia .......... — — — -11

State Government – Appropriation —

Expenses for Administered Items ............................................ 157 301 150 596 143 552 135 674

Capital for Administered Items ................................................ 98 96 — 94

Transfer from contingencies .................................................... — 2 099 — 236

Other Receipts —

Parliamentary Salaries and Electorate and Expense Allowances ............................................................................... 232 227 227 213

Senior Secondary Assessment Board of South Australia .......... — — — 294


Teachers Registration Board..................................................... — 1 955 — —

Total operating receipts 646 356 625 509 581 880 598 362

Payments


Consultative Committees .......................................................... 1 121 1 099 1 099 1 134

Multicultural Grants — Funding from Commonwealth Government .................................................... — — — 77

Non Government Schools — National Equity Program for Schools Funding ....................................................................... — — — 173

Parliamentary Salaries and Electorate and Expense Allowances ............................................................................... 232 227 227 213


9.40


Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Supplies and services —

Consultative Committees .......................................................... 230 224 224 657



Transport Concession to Students and Children ....................... 11 795 10 865 10 865 11 020

Interest and Other Financial Payments —

School Loans Assistance Scheme ............................................. 64 196 196 378


Multicultural Grants — Funding from Commonwealth Government .................................................... 728 711 711 895

Multicultural Grants — Funding State...................................... 715 968 698 878

Non-Government Schools — National Equity Program for Schools Funding ....................................................................... 3 348 3 266 3 266 1 920

Non-Government Schools — per capita Grants — Funding from Commonwealth Government .......................................... 441 964 429 877 416 869 402 580

Non-Government Schools — State Funding ............................ 120 651 117 902 110 762 109 330

Other Organisations ................................................................. 825 805 805 595

Special Schools — Funding from Commonwealth Government National Equity Program for Schools ..................................................................................... 10 538 10 279 10 349 14 028


Non-Government Schools — Capital — Funding from Commonwealth Government .................................................... 9 009 8 789 8 789 11 913

Investing in Our Schools Program ............................................ — — — 3 387

Net GST Paid —

Expenses for Administered Items ............................................. — — — 13 020

Intra-government Transfers —


Multicultural Grants – State Funding........................................ — — — 35

Special Schools — Funding from State — Child & Youth Health........................................................................................ 2 287 2 232 2 232 2 393

Investing in Our Schools Program ............................................ 28 143 19 388 — 9 201

Commonwealth Government — National Equity Program for Schools...................................................................................... 70 70 — —

Transfer of Special School Funding for Preschool support to DECS — State Funding ............................................................ 1 436 1 401 1 401 —


Other ......................................................................................... — — — 97

9.41


Cash flow statement

2007-08Budget

2006-07Estimated

result

2006-07 Budget

2005-06Actual

$000 $000 $000 $000

Other Payments —


Teachers Registration Board..................................................... — 1 955 — —

Receipts paid to the Consolidated Account............................... — 1 955 — —

Total operating payments 645 850 625 189 581 329 596 843

Net cash provided by operating activities 506 320 551 1 519

Investing activities

Receipts

School Loans Assistance Scheme ............................................. 1 059 1 556 1 556 1 919

Sale of Property, Plant and Equipment —

Senior Secondary Assessment Board of South Australia .. — — — 3

Total investing receipts 1 059 1 556 1 556 1 922

Payments

Purchase of Property, Plant and Equipment —


Total investing payments 98 96 96 410

Net cash provided by investing activities 961 1 460 1 460 1 512


Payments

Repayment of Borrowings — to the Consolidated Account by the School Loans Assistance Scheme ....................................... 1 460 1 500 1 500 2 500

Total financing payments 1 460 1 500 1 500 2 500

Net cash used in financing activities -1 460 -1 500 -1 500 -2 500

Net increase (+) / decrease (-) in cash held 7 280 511 531

Opening cash balance as at 1 July 4 215 3 935 3 706 3 404

Closing cash balance as at 30 June 4 222 4 215 4 217 3 935

9.42

ACCOUNTING STANDARDS

ACCOUNTING STANDARDS

Estimates in these portfolio statements have been prepared on a basis consistent with Australian equivalents to International Financial Reporting Standards (AIFRS), except where these notes indicate otherwise.

The financial statements included in the portfolio statements are special purpose financial reports.

Basis of Measurement

One or more of the following measurement bases have been adopted for assets of an agency recognised in the financial statements:

• fair value – means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction (in many cases agencies use written-down current cost as an estimate of fair value)

• deprival value – assets are valued with reference to the current cost of replacing the future economic benefits that can be obtained from the remaining useful lives of the assets

• acquisition cost • written-down historical cost • an amount recognised in the accounts of a transferor entity upon a restructure.

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 methods used for calculating depreciation expense are straight line and diminishing balance.

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 in a manner consistent with Australian Accounting Standard AASB 117 Leases.

Reporting Entities

Reporting Entities for Budget Purposes

In accordance with Australian Accounting Standard AASB 127 Consolidated and Separate Financial Statements, the financial reports include all assets, liabilities, income 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 portfolio statement for each portfolio identifies which entities have been included in the consolidated reports 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 are where an agency has no discretion to alter the resources provided or determine how they are spent.

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 (fall due within twelve months) 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 (fall due later than twelve months) 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 South Australian Government employees.

Superannuation

For most South Australian Government 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 operating revenue 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 or the Statement of Changes in Equity.

Rounding

All amounts in the financial reports 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 used in these portfolio statements is consistent with the Model Financial Reports (prepared by the Department of Treasury and Finance for statutory reporting requirements) and is consistent with the requirements of: AASB 101 Presentation of Financial Statements and AASB 107 Cash Flow Statements.

BUDGET OVERVIEW

2007 08

BUDGET PAPER 1

Documents

2004-05 Budget Paper 4: Portfolio Statements · Portfolio statements typically reflect a consolidation of controlled items within each portfolio. Where a portfolio contains a single