Annual Report 2010-11 - Queensland Parliament€¦ · ULDA Annual Report 2010-11 3 Message from the Chair I am pleased to present the Urban Land Development Authority's (ULDA's) Annual

Annual Report2010-11

Public availability of reportThe Urban Land Development Authority is committed to minimising its impact on the environment by limiting the number of printed copies of this report. An electronic version of this document is available at our website at www.ulda.qld.gov.au

Details of contact officer for enquiries

Email: [email protected]

Mail:Urban Land Development AuthorityGPO Box 2202Brisbane QLD 4001Or at:Level 4, 229 Elizabeth StBrisbane QLD 4000

Telephone: 1300 130 215

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Copyright noticeThe Urban Land Development Authority is a Queensland Government Statutory Authority.

© Urban Land Development Authority 2011

Licence: This copyright is licensed under Creative Commons Attribute 3.0 Australia licence. To view a copy of this licence, visithttp://creativecommons.org/licenses/by/3.0/au

In essence you are free to copy, communicate and adapt the work in this annual report, as long as you attribute the work to the ULDA and abide by the licence terms.

International Standard Serial Number (ISNN)ISSN - 1839-4493

1ULDA Annual Report 2010-11

Contents

The materials presented in this PDF are provided by the Urban Land Development Authority for information purposes only. Users should note that the electronic versions of financial statements in this PDF are not recognised as the official or authorised version. The electronic versions are provided solely on the basis that users will take responsibility for verifying their accuracy, completeness and currency. Although considerable resources are used to prepare and maintain the electronic versions, the Urban Land Development Authority accepts no liability for any loss or damage that may be incurred by any person acting in reliance on the electronic versions.The official copy of the annual report, as tabled in the Legislative Assembly of Queensland can be accessed from the Queensland Parliament's tabled papers website database:http://www.parliament.qld.gov.au/view/legislativeAssembly/tabledPapers/home.asp

Disclaimer

Message from the Chair 3

CEO's Report 4

Division updates

» Planning 8

» Sustainability and Innovation 11

» Residential Development 12

» Urban Development 14

Community Engagement 16

Corporate Governance

» The Board 20

» Audit and Risk Committee 23

» Remuneration Committee 24

Executive Management Team 25

Staffing 28

Governance 30

Summary of Financial Performance 32

Financial Statements 37

12 September 2011

Hon Paul Lucas, MPDeputy Premier and Attorney-General, Minister for Local Government and Special Minister of State Level 12 Executive Building 100 George StreetBRISBANE QLD 4000

Dear Deputy Premier

I am pleased to present the Annual Report 2010-11 for the Urban Land Development Authority. The report outlines our activities and achievements for the period 1 July 2010 to 30 June 2011.

I certify that this Annual Report complies with:• The prescribed requirements of the Financial Accountability Act 2009 (FA Act) and the Financial and

Performance Management Standard 2009 (FMPS)• The detailed requirements set out in the Annual Report Requirements for Queensland Government Agencies.

A checklist outlining the annual reporting requirements can be accessed at www.ulda.qld.gov.au.

Yours sincerely

Julie BoydCHAIR

15


Message from the ChairI am pleased to present the Urban Land Development Authority's (ULDA's) Annual Report for 2010-11. It has been an extraordinarily demanding year for the organisation with a host of new planning and development projects coming on board and

work continuing on a number of existing projects.

In reviewing the work of the ULDA over the past 12 months the word 'delivering' instantly sprang to mind.

That is, delivering on planning work with the ULDA Board approving development schemes for UDAs which cover all the organisation's program areas identified in our strategic plan, namely:

» Regional diversity projects: Clinton, Gladstone; Andergrove, Mackay; Oonoonba, Townsville

» Resource areas: Roma, Blackwater and Moranbah

» Strategic sites: Woolloongabba

Delivering on the State Government's strategy to manage growth in Queensland by finalising planning work for four major greenfield UDAs which when fully developed will provide as many as 140,000 dwellings for up to 340,000 people; a significant portion of the future growth areas for South East Queensland.

Delivering on development with construction of the first stages of the residential projects in the regional UDAs well underway. Development projects have also been identified and progressed in the three resource UDAs to get more permanent housing on the ground and assist with the affordability issues facing these communities as a result of the resources boom.

Delivering on existing projects with the 200th home completed at Fitzgibbon Chase and development approvals given and/or works underway on eleven private projects in Northshore Hamilton and Bowen Hills totalling $1.7 billion.

To successfully deliver in all these areas, 2010-11 also saw significant growth of the ULDA as an organisation. Staff numbers grew from an estimated 45 full time employees to 89 and a new floor was tenanted to provide much needed work space to accommodate this growth.

We have also continued to build good relationships with our stakeholders, in particular local councils who we are working closely with on a number of our projects.

The next 12 months will continue this theme of delivery with more development projects set to commence in all of our UDAs, by both the ULDA and private developers, while some development projects currently underway will be completed.

I congratulate the ULDA team on the work they have achieved to date but there is still much to be done and I remain confident that the ULDA has the expertise and experience to continue delivering. I also thank the Board for their considered and expert advice and ongoing commitment to the ULDA strategic initiatives and projects.

4 ULDA Annual Report 2010-11

The preparation of this report provides an opportunity to reflect on what the ULDA has achieved in 2010-11.

One of our projects which has really matured during this time has been the residential development at Fitzgibbon Chase which

features some of Australia's most creative solutions in urban planning, design and community development. The delivery of innovative, diverse and affordable housing product has been particularly rewarding.

The Authority has worked closely with our builder partners on dwelling designs which challenge the traditional size of lots, facilitating lots as small as 71m2, which not only assists in keeping down the cost of a new home but also responds to Australia's changing household demographics.

2010-11 saw the completion of the Core apartments at Fitzgibbon Chase which is a five storey complex providing 64 units for people on low to moderate incomes. Delivered by Brisbane Housing Company, it is a great demonstration of how affordability does not mean a compromise on quality and makes a wonderful entry statement to the whole development.

The delivery of this project has assisted the ULDA to not only meet but exceed the housing affordability target for the Fitzgibbon Urban Development Area (UDA).

Sixty six per cent of homes delivered in the UDA are to be at or below the median Brisbane house price. Of the 200 homes constructed to date, 164 have met that target, which is over 80 per cent.

There has also been a strong focus on sustainability with designs completed for net zero emission homes to demonstrate to industry how affordable greener dwellings can be designed and delivered in a residential development.

The development is a combination of loft units and duplex dwellings and construction at Fitzgibbon Chase will begin in August 2011.

With the declaration of a number of new UDAs, the ULDA has been able to facilitate the release of land to market in areas of South East Queensland, regional centres and resource communities.

The first stages of development in Clinton, Gladstone; Andergrove, Mackay; and Oonoonba, Townsville are now underway, delivering 153 dwellings to market and marking the start of development in three UDAs which will ultimately provide over 1,500 dwellings.

The identification of early release areas in the greenfield UDAs has resulted in the approval of the first development applications in Yarrabilba and Greater Flagstone, less than 12 months after they were declared, offering almost 850 lots for development.

The declaration of the four greenfield UDAs, which combined include 16, 400 hectares of land, represented a departure from the work the Authority was previously undertaking with infill and smaller development sites.

To meet the challenge of planning for these communities which do not include significant existing development or infrastructure, the ULDA had to devise a range of new planning and development standards.

As these areas are expected to take 30 to 40 years to be fully developed, these standards needed to be prescriptive enough to guide current development, but also flexible enough so that advancements in design, innovation and sustainability could be incorporated in future stages.

The development schemes for these UDAs recognise that many things will change over this period of time so the implementation strategies contained in each scheme include targets and goals for the delivery of affordable housing and ecological sustainability which are underpinned by a rigorous process of constant monitoring and review to ensure that the standards being used are the most up to date and best practice.

These schemes are also accompanied by a range of guidelines which address a number of planning and design matters including community facilities, park design, environment and sustainability and engineering standards.

Community engagement was a large part of the work undertaken by the ULDA in 2010-11 due to the declaration of seven UDAs and continuing engagement for another five UDAs previously declared.

CEO’s Report


These activities included:

» publishing 23 community information publications, including 16 newsletters and seven fact sheets

» distributing 112,800 newsletters across a number of regions in Queensland

» staff clocking up 852 hours attending 89 community information sessions across Queensland

» the opening of a shopfront in Caloundra for four months during the preparation of the Caloundra South UDA Development Scheme.

Working with local governments remained a priority for the ULDA in 2010-11, as more UDAs were declared. The Authority is working collaboratively with a number of local governments which resulted in the signing of Memorandums of Understanding (MOUs) with Isaac Regional Council, Central Highlands Regional Council, Logan City Council and Ipswich City Council to formalise these working arrangements.

One of the most significant development approvals this year was the approval of the master plan for the $3 billion redevelopment of the RNA Showgrounds.

The revitalised showgrounds are key to the development of the Bowen Hills UDA and the approval not only allows for the redevelopment of the showground facilities but will also include significant residential, retail and commercial development on the fringes of the showground that will open up the area all year round.

With the increase in declared UDAs, 2010-11 also saw the establishment within the ULDA of the Sustainability and Innovation team, bringing together the Authority's affordable housing, community development, and sustainability and innovation expertise into a central team to provide assistance across both planning and development projects.

Community development has been a particular passion of the ULDA. This continues to be demonstrated with the launch in 2010-11 of a community internet portal at Fitzgibbon Chase which informs residents about the area and includes upcoming events and forums for them to discuss issues pertinent to their community.

The ULDA is also engaged with the CSIRO to inform the development of energy and water usage targets for application in the UDAs and has started developing a strategic alliance

with the CSIRO on an ongoing basis to monitor the application and progress of sustainable pilot programs in UDAs, such as the application of stormwater harvesting and roof water reuse.


Moving forward

Strong Smart Green Healthy

Q2 objectives

Fair

Creating a diverse economy powered by bright ideas

Delivering world class education and training

Protecting our lifestyle and environment

Making Queenslanders Australia's healthiest people

Supporting safe and caring communities

ULDA strategies Urban land to market Housing diversity Catalyst infrastructure Sustainable places Affordable housing

Strategy

Practical development schemes produced

Work with landowners to maximise site potential

Performance indicators

Value of development commenced in UDAs

Strategy

Housing in UDAs to have a wide diversity in size and values


Residential mix and price points

Strategy

Catalyst infrastructure identified and funding strategies formulated


Catalyst infrastructure constructed

Strategy

Best practice ecologically sustainable policies balanced with affordability


Sustainability outcomes exceed mandated minima

Strategy

Policies implemented that promote and require housing provision for key workers and/or low to moderate income households


Number of dwellings affordable to households $41 -94k p.a.

Program areas

Regional diversity projects Strategic sitesResource area housing affordability

Demonstrate housing diversity

Improve housing choice and affordability

Supporting regionalisation and facilitate growth

Key government or strategic sites with fragmented ownership, requiring multiple agency coordination

Strategic sites requiring fast tracked planning and development outcomes to manage growth

Transit orientated development sites

Speedy development of government land

Key worker housing delivered

Bowen Basin, Surat Basin, North West Province


Q2 objectives

Fair







Strategy





Strategy




Strategy




Strategy




Strategy




Program areas











As outlined below our main focus in delivering on the Queensland Government's Q2 Objectives relate to our three identified program areas: regional diversity projects, resource area housing affordability and strategic sites.

The next 12 months will be another busy time for the organisation with the finalisation of development schemes for the resource communities of Blackwater and Moranbah as well as the four greenfield UDAs.

The ULDA's development will continue at Fitzgibbon Chase with

Regional diversity projects Resource area housingaffordability Strategic sites

» Demonstrate housing diversity

Improve housing choice and

affordability

» Supporting regionalisation and

facilitate growth

» Speedy development of

government land

» Key worker housing delivered

Bowen Basin, Surat Basin,

North West Province

» Key government or strategic

sites with fragmented

ownership, requiring multiple

agency coordination

» Strategic site requiring

fast tracked planning and

development outcomes to

manage growth

» Transit orientated development

sites

Program areas

the delivery of a range of innovative products including net zero emissions homes and new affordable small lot product.

The Authority is currently designing an urban lot product which is a 2-storey freehold dwelling designed to fit a 105m2 lot, keeping costs low so that the house and land package price will make it affordable for households on $40,000 per annum to rent and for households on up to $80,000 per annum to purchase.

In the regional UDAs in Townsville, Mackay and Gladstone the ULDA will complete the first stages of development while in



Q2 objectives

Fair







Strategy





Strategy




Strategy




Strategy




Strategy




Program areas












Q2 objectives

Fair







Strategy





Strategy




Strategy




Strategy




Strategy




Program areas











the resource communities of Roma, Blackwater and Moranbah, the Authority will start development on a number of projects that will provide permanent homes to these areas.

2011-12 will also see the first major private residential projects in Bowen Hills and Northshore Hamilton completed, which will deliver more than 600 dwellings.

Of these 275 units will meet the affordability targets for the UDAs due to the completion of Brisbane Housing Company's "Richmond Apartments", Metro Properties

"The Chelsea", and Xede's "Code" apartments at Bowen Hills as well as the first two stages of the Hamilton Harbour development at Northshore Hamilton which includes 23 per cent of housing at or below the median Brisbane house price.

Development will also start in all four of the greenfield UDAs, some less than 12 months after declaration of the areas, delivering on the State Government's commitment to facilitate the delivery of these new communities.

More community development and training programs will be rolled out across our projects, building on the success of those undertaken at Fitzgibbon Chase. The ULDA intends to formalise its relationship with the CSIRO and identify more opportunities for the two organisations to work together.

Vision

Vibrant inclusive communities.

Purpose

The ULDA is a statutory authority which operates under the Urban Land Development Authority Act 2007 and whose main purpose is to facilitate in the following areas:

» the availability of land for urban purposes

» the provision of a range of housing options to address diverse community needs

» the provision of infrastructure for urban purposes

» planning principles that give effect to ecological sustainability and best practice urban design

» the provision of an ongoing availability of affordable housing options for low to moderate income households.

Mission

Ensure private and government land holdings can be brought to the market quickly to improve land supply, housing diversity and employment.

Creating outstanding new communities all Queenslanders will be proud of by utilising best practice design principles to deliver a range of affordable housing options maximising sustainable outcomes.

Values

» Bold leadership

» Collaboration and partnership

» Creativity and innovation

» Sustainability

» Integrity


2010-11 was a significant year for the planning team with the declaration of seven new UDAs, including the four greenfield UDAs which represent some of the largest proposed growth areas for South East Queensland.

As well, work has continued on the preparation of development schemes for four previously declared UDAs and a range of accompanying guidelines and practice notes.

In 2010-11 the planning team has:

» drafted and submitted for Ministerial approval six new development schemes (Blackwater, Moranbah, Caloundra South, Yarrabilba, Greater Flagstone and Ripley Valley) and one major development scheme amendment package (Carseldine Urban Village)

» finalised the development schemes for a further five UDAs (Clinton, Gladstone; Oonoonba, Townsville; Andergrove, Mackay; Woolloongabba and Roma) which have now been approved and gazetted

» undertaken community consultation on 11 proposed development schemes, including one-on-one meetings, community events and stakeholder workshops

» entered into Memorandums of Understanding (MOUs) with four local councils, Isaac Regional Council, Central Highlands Regional Council, Logan City Council and Ipswich City Council to formalise working arrangements

» developed an interim infrastructure funding framework addressing the timely, efficient and cost effective delivery of infrastructure to keep pace with development ready for consideration by government to accompany the development schemes for the Caloundra South, Yarrabilba, Greater Flagstone and Ripley Valley UDAs

» substantially completed the preparation of 13 new ULDA guidelines and three new practice notes which will commence upon approval of the development schemes for the Caloundra South, Yarrabilba, Greater Flagstone and Ripley Valley UDAs.

Planning

Division Updates


Guidelines

» Neighbourhood planning and design

» Street and movement network

» Low rise buildings

» Medium and high rise buildings

» Centres

» Industry and business areas

» Community facilities

» Park planning and design

» Engineering standards

» Environment and natural resources sustainability

» Protection from flood and storm tide inundation

» Transitioning development

» Offsetting the clearing of koala areas and endangered remnant vegetation in Greater Flagstone and Yarrabilba UDAs

In 2011-12

The resource communities and the greenfield UDAs will be a key focus for the planning team next year. Work will include:

» finalisation of the development schemes for Moranbah and Blackwater UDAs

» with the Office of the CEO, developing and implementing a town centre rejuvenation strategy for Blackwater and Moranbah, to attract more businesses to town

» delivering on aspects of the Blackwater townscape strategy to assist the community in beautifying the township

» finalisation of the development schemes for the Caloundra South, Yarrabilba, Greater Flagstone and Ripley Valley UDAs

» amendment and finalisation of the accompanying guidelines for these UDAs

» finalisation of the infrastructure funding framework for these UDAs.


Assessing development applications within all 14 declared UDAs is a key role of the assessment team within planning.

In 2010-11 development assessment team has:

» received 98 properly made UDA development applications, as a result of thorough pre-application meetings between ULDA development assessment officers and the development proponents

» approved 66 development applications including over 500 affordable dwelling units

Major approvals over the past 12 months include:

» $3 billion redevelopment of the RNA showgrounds site at Bowen Hills

» Precinct 1 at Yarrabilba consisting of a district centre and 500 residential lots, less than 12 months after declaration of the UDA

» 132 lot residential development in Greater Flagstone, less than 12 months after declaration of the UDA

» Chelsea Apartments, Bowen Hills - 195 units

» Madison Heights, Bowen Hills - 285 units

» Riviana, Portside Wharf, Northshore Hamilton - 208 units

» Intercap, Northshore Hamilton - 225 units

» Foreshore, Northshore Hamilton - 580 units

The development assessment team also completed the Self-certification Manual for Operational Works and commenced the self certification process, delivering on the government's commitment that the ULDA would slash red tape.

Development Assessment


The Sustainability and Innovation team was established in November 2010 and works across the ULDA to have significant input into the preparation of development schemes, provide environmental advice for development and planning processes and to influence development delivery in projects undertaken by both the ULDA and external parties.

Functionally the team has responsibility for strategies that will deliver housing diversity particularly for low to moderate income earners, identification of early community development needs, environmental strategies and targets, and driving innovation within the organisation through forums and workshops.

This work involves bringing parties together to find new ways of delivery, seeking funding sources for early delivery and providing skills and training opportunities for apprentices and school leavers. Delivery of housing and sustainability is actively monitored against development scheme targets.

The team hit the ground running with a number of achievements in 2010-11 including:

» commenced alliance partnership discussions with the CSIRO for sustainable water and energy solutions in the UDAs and developing a program of research partnerships to trial innovative sustainability projects in alliance with the developers, CSIRO, utilities and other stakeholders

» drafted environmental guidelines and implementation strategies for the four greenfield UDAs

» developed implementation strategies and specific affordability targets for each of these greenfield UDAs

» delivered an annual program of skills and training opportunities for apprentices and school based training providing approximately 4,400 hours of training

» gained approval of $3 million to deliver housing for low to moderate income earners for Roma, Blackwater and Moranbah

» delivered innovators forums and workshops with key stakeholders on sustainable water and energy solutions and trialling the use of electric vehicles.

In 2011-12

Work will include:

» delivering training and development initiatives in each region for local apprentices in excess of 10,000 hours

» finalising and implementing the CSIRO alliance partnership focusing on facilitating sustainable water and energy strategies and infrastructure innovations

» delivering innovator forums and workshops with key stakeholders on relevant issues including affordable zero/low emission housing

» monitoring outcomes in development schemes against the implementation strategies

» working with stakeholders on opportunities to identify and source funding to deliver integrated models of community facilities

» delivering on the $3million funding approved for housing for low to moderate income earners for Roma, Blackwater and Moranbah

» establishing partnerships that leverage funding opportunities to deliver housing for low to moderate income earners in resource towns

» reviewing and re-defining the ULDA housing strategy to better reflect 'who' and 'how' the ULDA will assist in meeting the needs of low to moderate income households.

Sustainability and Innovation


The Residential Development team is responsible for developments being undertaken by the ULDA within a number of UDAs, specifically Fitzgibbon Chase, the three regional UDAs Clinton; Gladstone, Oonoonba; Townsville, Andergrove; Mackay and the three resource area UDAs Roma, Blackwater and Moranbah.

2010-11 saw the continuation of development at Fitzgibbon Chase as well as the start of development in the regional UDAs.

The highlights for 2010-11 included:

Fitzgibbon Chase, Brisbane

» the delivery of the 200th home in the two years since development started in May 2009

» new affordable product developed with the ULDA's builder partners

» commencement of two innovative sustainable water projects FiSH and Potaroo which will see the harvesting of roof water and stormwater from within the UDA for re-use

» $7 million funding approved from the Federal Government and $4 million approved from the Japanese Government to assist in delivering these projects

» start of construction on the $3.4 million Fitzgibbon Chase Community Centre, jointly funded by the ULDA and the Federal Government

» completion of the trail network through the 90 hectares of bushland at Fitzgibbon Chase.

Regional Projects

» commencement of the first stages of the ULDA residential developments in Townsville, Mackay and Gladstone

» joint venture partnership with Mackay Regional Council demonstrating an innovative approach to address housing diversity and affordability needs in a growing regional city

» local builder partners engaged in each of these regions, providing job opportunities

» the Urban Development Institute of Australia (UDIA) EnviroDevelopment accreditation awarded for the Mackay, Gladstone and Townsville projects.

Residential Development

Resource Areas

» residential development projects identified in Roma, Moranbah and Blackwater which will deliver over 700 dwellings

» secured $2.7 million in funding from the Sustainable Resources Council for housing in Roma.


In 2011-12

Fitzgibbon Chase, Brisbane

» continuation of development, with a total of 450 lots across the development to be completed

» a further 180 lots to be sold, which is the equivalent of a further 220 dwellings

» developing and rolling out new affordable product which is expected to go to the market at less than $250,000

» continuation of the rollout of FiSH and Potaroo projects

» construction completed on the community centre, and opened to the public along with the completed bushland trail network.

Regional Projects

» completion of the first stages of development in Townsville, Mackay and Gladstone and rollout of future stages

» opening the display village and sales launch within each of these UDAs

» delivery of training and industry development initiatives for trainees and school children in each UDA

» trial of the ULDA's Priority Home Buyer Initiative within the Clinton UDA at Gladstone, to assist in the provision of homes to low to moderate income households and owner-occupiers.

Resource Areas

» commencement of Stage 1 of the Roma UDA development, including delivery of houses funded by the Sustainable Resources Council

» commencement of development of two residential projects in Blackwater (Arthur Street townhouses and Bauman Way)

» commencement of development on the Boxing Club site in Moranbah

» delivery of training and industry development initiatives for trainees and school children in each UDA.


The Urban Development team is responsible for the development of land in medium to higher density UDAs. Where the ULDA is not a land owner in these UDAs, the team may play a development management or facilitation role for other State Government agencies that are the land owners.

The Urban Development team was created in 2010 as part of the restructure of the ULDA in recognition of the growth in the Authority's development involvement in urban sites. This includes facilitation of development within the Woolloongabba UDA and the Carseldine Urban Village as well as development of ULDA owned land at Northshore Hamilton following the transfer of land from the Port of Brisbane Corporation (POBC) in 2009-10.

The major focus of the Urban Development team to date has been the Northshore Hamilton UDA, where the ULDA owns approximately 60ha of land.

The highlights include:

» release of an Expression of Interest for the development of two sites on Remora Road (Precinct 3) , the first significant parcels of land to be released to the market since the land transfer from POBC

» the construction of a new $5 million CityCat Terminal completed in August 2011 to service the anticipated increase in residents at Northshore Hamilton as the area grows

» currently six private residential developments worth $1.2 billion have been approved to the end of 2010-11, delivering 2,000 dwellings within the UDA.

Urban Development Northshore Hamilton in 2011-12

» handover of the new CityCat Terminal and the start of services, to be delivered by Brisbane City Council

» sale of the 1.2 hectare site for development on Remora Road

» release of the first stage of a proposed new Clean Technology office park

» commencement of the upgrade of Remora Road, western end of McArthur Avenue and their intersections with Kingsford Smith Drive

» work to commence on the upgrade of the existing park on Remora Road

» work to begin on new roads and boardwalks to eastern end of McArthur Avenue

Carseldine Urban Village in 2011-12

» development agreement with Department of Public Works (DPW) to develop the urban village land on their behalf.

ULDA Annual Report 2010-11 15ULDA Annual report 2011

Woolloongabba in 2011-12

» release of an Expression of Interest for a potential development site on the corner of Allen and Vulture Streets and sale of the land on behalf of the Department of Transport and Main Roads.


The legislative engagement requirements in the Urban Land Development Authority Act 2007 specify at least a 30 business day public notification period for proposed development schemes.

In 2010-11 community engagement activities were undertaken for the preparation of development schemes for 11 UDAs and for the amendments to the existing scheme for the Carseldine Urban Village.

As outlined below, for each of these UDAs, the ULDA met the requirements for the minimum 30 business day public notification period.

Community Engagement

Development scheme prepared or amended during 2010-11

Notification period

Clinton Development Scheme 24 May - 5 July 2010

Andergrove Development Scheme

24 May - 6 July 2010

Oonoonba Development Scheme 23 August - 4 October 2010

Woolloongabba Development Scheme

23 August - 4 October 2010

Roma Development Scheme 20 September - 1 November 2010

Amended Fitzgibbon Development Scheme

8 November - 20 December 2010

Blackwater Development Scheme 7 February - 21 March 2011

Moranbah Development Scheme 7 February - 21 March 2011

Yarrabilba Development Scheme 31 March - 20 May 2011

Greater Flagstone Development Scheme

31 March - 20 May 2011

Ripley Valley Development Scheme

31 March - 20 May 2011

Caloundra South Development Scheme

31 March - 20 May 2011

However, the ULDA undertakes significant engagement activities outside of this period, to better promote and provide additional community participation.

The ULDA has formulated a Community Engagement Framework, based on its award winning engagement program which ensures that the ULDA has an approach to engagement which is effective, genuine and tailored to the needs of the individual communities.

Each engagement in 2010-11 was undertaken with a variety of approaches:

1. For smaller, single site UDAs in existing residentially zoned areas (e.g. Andergrove, Clinton and Roma) relatively modest engagement activities have been undertaken; typically a newsletter, advertisements, community meetings and standard submission period.

2. For larger UDAs, but with relatively few apparent community issues (e.g. Woolloongabba, Carseldine Urban Village, Oonoonba) engagement activities also included open days, attended by ULDA staff to allow for detailed discussions and input from the community.

3. For larger UDAs with complex issues, comprehensive engagement programs were developed which included additional newsletters, open days, shop fronts, one-on-one meetings with key community organisations (e.g. Blackwater, Moranbah and four greenfield UDAs).

Community engagement activities were also undertaken by the organisation's key decision makers who are actively involved in allowing communities to direct their questions and concerns to them.

In 2010-11 the CEO and Director of Planning:

» addressed two community meetings in Caloundra during the preparation of the Caloundra South UDA Development Scheme and one-on-one meetings with key community organisations

» addressed Greenbank residents ( 800 people) at a community meeting during the preparation of the Greater Flagstone UDA Development Scheme.

In all instances the community engagement activities resulted in changes to the proposed development schemes prior to approval by the ULDA Board and submission to the Minister.


The chart below shows the typical order of community engagement for the larger, more complex types of UDAs.

Submitted Development Scheme to Minister for consideration and approval or amendment

Submitted Development Scheme to Minister for consideration and

approval or amendment

Third round of

engagement

ULDA makes amendments to Proposed Development Scheme

30 Business-Day Public Notification Period to present Proposed Development Scheme and to

gather feedback

ULDA presents master plan and gathers feedback on this document

via newsletters, letters, community information days, website.

The ULDA uses feedback to draft a Proposed Development Scheme

ULDA gathers information re: community & stakeholders' issues and interests via

newsletters, letters, community information days. ULDA uses this information to develop a

draft Structure Plan for the UDA

UDA is declared and ULDA advertises the declaration, and sends letters to all residents and landowners within

the UDA advising them what this means for them

ULDA's typical approach to Community Engagement

ULDA makes amendments to Proposed Development Scheme

30 Business-Day Public Notification Period to present

Proposed Development Scheme and to gather

feedback

UDA is declared and ULDA is responsible for advertising the

declaration

ULDA's legislative requirements for

Community Engagement

Second round of

engagement

First round of

engagement


To demonstrate that the ULDA is delivering on its objectives, measurements for monitoring the ULDA's performance have been developed under the Queensland Government's Performance Management Framework.

The ULDA's performance measures focus on the efficiency and effectiveness of the core work undertaken by the Authority.

In regard to efficiency, this performance measure applies to the decision making period undertaken by the ULDA to assess a development application upon receipt of all information required to make a determination. Under the Urban Land Development Authority Act 2007, the ULDA must decide applications within 40 business days from receipt of all required information.

The ULDA set a target of under 40 business days to measure its efficiency. This timeframe does not include time taken by an applicant to respond to information requests from the ULDA as this is outside the control of the ULDA. It also does not include the public notification period of an application as this is a set statutory period.

In regard to effectiveness, this is a measure of how effectively the ULDA is delivering on its purpose to facilitate the provision of affordable housing for low to moderate income households. The definition for low to moderate household incomes, affordable housing, and the prices at which homes are considered affordable to rent or purchase are outlined in the ULDA's Housing Strategy.

Estimated actual results and targets for the ULDA's continuing and new performance measures are outlined below:

Corporate Governance

Service Standards 2010-11 Target / estimate

2010-11 Estimated actual

2011-12 Target/ estimate

Average number of days to process a development application. New measure New measure 37

Percentage of completed dwellings that are affordable for households on low to moderate incomes.

New measure New measure 15%


To improve accountability for performance, under the Queensland Government Performance Management Framework the ULDA is required to review its service structures and performance information each year to ensure that the information presented in its Service Delivery Statement remains relevant and reflects better practice.

Performance measures included in the ULDA's 2010-11 Service Delivery Statement have been discontinued and replaced with improved measures that better demonstrate the efficiency or effectiveness of the ULDA's services. The 2010-11 estimated actuals for these discontinued measures are reported below:

Service Standards 2010-11 Target/estimate

2010-11 Estimated actual

2011-12 Target/ estimate

Interim Land Use Plans (ILUP) Approved 1 5 7 Discontinued measure

Community Engagement forums held in declared UDAs 2 6 89 Discontinued measure

Inquiries responded to in a timely manner 95% 95% Discontinued measure

Development Schemes approved within the legislated timeframes

4 5 Discontinued measure

Development applications processed within approved timeframes

100% 100% Discontinued measure

Interim Land Use Plans for a UDA outside SEQ 4 3 Discontinued measure

Development Schemes for UDAs outside SEQ 3 .. 4 Discontinued measure

Notes:

1. The 2010-11 Estimated actual of seven Interim Land Use Plans increased due to additional UDAs being declared.

2. The 2010-11 Target/estimate of six community engagement forums was exceeded due to additional UDAs being declared and further engagement within existing UDAs. This included operating an information centre at Caloundra which was open 4 days a week for a total of 16 hours per week.

3. The 2010-11 Estimated actual of four Development Schemes for UDAs outside SEQ is due to additional UDAs being declared.


Board members

The constitution of the board is specified in s105 of the Urban Land Development Authority Act 2007. The board comprises nine members including the Chair and the chief executives or delegates of the departments in which the State Development and Public Works Organisation Act 1971 and the Financial Administration Act 2009 are administered.

The present chair was appointed for a three year term from 24 September 2009. The membership of the Authority is:

The ULDA Board

Julie Boyd - Chair (Since September 2009)

Ms Boyd was the Mayor of Mackay

for 11 years, serving from 1997 to 2008. She had previously spent five years as a Councillor, gaining extensive knowledge and experience in planning and governance. Ms Boyd is Trade Queensland's Special Representative to Africa.

Ms Boyd is currently chair of the Queensland Arts Council and Regional Arts Australia, Mackay Region Housing Co and the Economic Development Corporation for Mackay Whitsunday Region. Ms Boyd is also on the board of Australian Institute of Management QLD and NT. She is a Fellow of the Australian Institute of Management and a Graduate of the Australian Institute of Company Directors.

Michael Back

Mr Back is currently a senior partner and head of the Brisbane office of Freehills,

where he advises on major property developments and infrastructure projects. He has expertise in relation to the environmental and planning aspects of projects and also provides advice in relation to major property acquisitions, disposals and developments.

John Corbett (Since November 2010)

Mr Corbett is the Managing Principal -

Queensland for Coffey Commercial Advisory, a Director of Hassad Australia Pty Ltd and the Chair of the Infrastructure Association of Queensland.

Mr Corbett has over 23 years experience in corporate and institutional banking and project financing gained through working for two leading Australian banks with specific expertise across the property, agriculture, power generation, energy, mining, ports, airports and rail sectors. For the past two years, John has been translating this financing and structuring experience into providing financial, commercial and strategic advice for infrastructure and commercial projects within Australia and overseas.


Renaye Peters

Ms Peters is Brisbane Airport Corporation's General Manager Property and is

responsible for the strategic planning and development of land that sits outside of airport operations (over 600 hectares), as well as the existing commercial property portfolio.

She is a registered architect and also has a degree in project management which has been deployed during her 20 years' experience in the construction industry.

Jack Noye +o

(Since March 2011)

Mr Noye was appointed Director-General of the

Department of Local Government and Planning on 21 July 2011. He has held executive roles in policy, management, service delivery and inter-government relations in the Commonwealth and state public sectors in central and line agencies.

Mr Noye was previously the Associate Director-General of the Department of Transport and Main Roads where he was responsible for national transport reform matters and corporate functions. He has also spent time in the private sector, providing advice on policy, management and service delivery to federal and state agencies.

Drew Ellem+p

Mr Ellem has more than 25 years experience in the Queensland public sector and is currently the Director of the Transport, Infrastructure and Government Services Branch in Queensland Treasury.

A key focus of his current role is providing financial and policy advice on activities of the Department of Local Government and Planning, the Department of Transport and Main Roads and the Department of Public Works.

Michael Kerry

Mr Kerry is the Managing Director, Planning, Design and Development - Australia New

Zealand for Aecom. Previously he was Regional Director (Queensland) for Parsons Brinckerhoff, a senior executive with Babcock & Brown Australia and a Director with the Springfield Land Corporation.

Mr Kerry was responsible for establishing the Office of Urban Management (OUM) in 2004.

Mr Kerry has over 40 years experience in urban and regional planning, infrastructure and development. From 1992-2004 he was Divisional Manager, Urban Management, with Brisbane City Council, a Director of the South Bank Corporation for 12 years and an inaugural Director of Brisbane City Enterprises Pty Ltd.

Jim Reeves (November 2010 -

August 2011)

Jim Reeves is General Manager of the

Institute of Sustainable Resources at the Queensland University of Technology (QUT). The Institute conceptualises, develops and manages projects in the rapidly changing and complex research area of sustainability. The Institute focuses on six core domains; greenhouse gas management, long term ecological research, water and geo-systems, energy systems, food security, and sustainable communities and infrastructure.

Prior to joining QUT Mr Reeves was the General Manager of Brisbane Water, one of Australia's largest water companies, he has a long history of involvement in local government in Queensland and Victoria.

Margaret Strelow

Ms Strelow was Mayor of Rockhampton from 2000-2008 and earlier

served as a Councillor for three years. As Mayor, Ms Strelow was active in economic development and planning, championing Rockhampton's city plan and encouraging diverse groups within the community to work towards common goals.

She also sits on the Public Records Review Committee.

Ms Strelow has formal qualifications in education and history, and is a Graduate of the Australian Institute of Company Directors.


Paul Low +o(Until February 2011)

Mr Low was the CEO of Growth Management

Queensland, leading the implementation of the government's response to the Premier's Growth Management Summit held in March 2010.

Previously, Mr Low held roles as Associate Director-General of the Department of Premier and Cabinet and in the Department of Employment, Economic Development and Innovation. Mr Low has also been a Deputy Director-General of Queensland's Department of Transport and Main Roads.

+ Ex officio members

pDelegated by the Under Treasurer

oDelegated by the Director General of the Department of Employment, Economic Development & Innovation

Brendan Gleeson (Until November

2010)

Professor Gleeson is director of the

urban research program at Griffith University's School of Environment.

His research interests include urban planning and governance, urban social policy, disability studies and environmental theory and policy. He has co-authored a number of books on sustainable development and the environment and has worked in the UK, USA, Germany, New Zealand and Australia.

Michael Keniger (Until November 2010)

Professor Keniger is Senior Deputy

Vice-Chancellor at the University of Queensland. Previous positions he has held include Deputy Vice-Chancellor (Academic), Executive Dean of Faculty of Engineering, Physical Sciences and Architecture, Head of the Department of Architecture and inaugural Head of the School of Geography, Planning and Architecture.


The ULDA Board undertakes a range of administrative and decision making functions as detailed in the Urban Land Development Authority Act 2007. The board is responsible for the overall corporate governance of the ULDA and is the internal approval body for development schemes and development applications.

The board meets each month and considers reports on strategic, operating and financial matters.

The board also provides strategic direction and vision, assisting the ULDA to achieve its purpose.

Achievements of the board

One of the major achievements of the board in 2010-11 relates to the approval of a significant number of development schemes ahead of their submission to the Minister. Eleven development schemes were approved by the board including:

» regional UDAs (Oonoonba, Clinton and Andergrove)

» resource town UDAs (Roma, Blackwater and Moranbah)

» Woolloongabba

» Greenfield UDAs (Yarrabilba, Ripley Valley, Greater Flagstone and Caloundra South).

The board also approved the amended Fitzgibbon UDA Development Scheme to accommodate more detailed planning of the Carseldine Urban Village.

Other achievements include:

» approval of the master plan for the redevelopment of the RNA Showgrounds

» approval of the sale process for the first land parcel sold within the Northshore Hamilton UDA by the ULDA following the transfer of land by Port of Brisbane Corporation in 2009-10

» approval of the infrastructure framework for greenfield UDAs.

During 2010-2011 the Board convened five workshops. Board workshops provide the opportunity to consider in detail significant matters ahead of a board decision. In 2010-11 board workshops focused on:

» reviewing the Woolloongabba UDA Development Scheme prior to approval

Duties of the board

» reviewing the ULDA as an organisation

» reviewing the Greenfield UDA Development Schemes prior to approval

» revising the ULDA Strategic Plan

» reviewing the Moranbah and Blackwater UDA Development Schemes prior to approval.

In 2010-11 the board held its second meeting in regional Queensland, travelling to Moranbah and providing members with the opportunity to tour the town and meet with a number of local councillors, including the Mayor. The board also took the opportunity to visit the Andergrove UDA in nearby Mackay to see the development progress.

Audit and Risk ManagementCommittee

The Audit and Risk Management Committee oversees the ULDA's risk profile and key strategic and operational risks.

This committee met on four occasions, providing advice and support to the CEO and the board in the discharge of their responsibilities under the Financial Administration Act 2009, in particular advising on financial and governance matters of the ULDA. The committee observed the terms of its charter with due regard to Queensland Treasury's Audit Committee Guidelines.

The committee undertook the following activities during 2010-11:

» reviewed and endorsed the financial statements of the ULDA for the 2009-10 year

» reviewed the national competition policy, development application fees and self certification process

» reviewed insurance, taxation and legislation compliance

» reviewed and approved the revised budget for 2010-11 and the budget for 2011-12

» received reports on internal audit activities and reviewed and assessed the Queensland Audit Office (QAO) Audit Plan and Client Strategy.


Record of Attendance

Remuneration Committee

This committee was established in 2009-10 at the request of the Chair and met once during 2010-11. It is responsible for:

» reviewing and recommending appropriate changes to remuneration policy

» reviewing the timing, frequency and scope of board performance assessments

» reviewing the performance of, and recommending remuneration for the CEO

» reviewing the CEO's recommendations for remuneration of the Executive Management Team.

An internal audit function is in place as part of the corporate governance framework by which the Authority maintains effective systems of accountability and control. The internal audit function reports to the Audit and Risk Management Committee, providing independent and objective advice and assurance. The role of internal audit includes appraisal of the ULDA's financial administration and effectiveness, as well as the provision of value added audit services and advice.

The ULDA continued to outsource its internal audit function in 2010-2011 and during the year four reports were submitted to the Audit and Risk Management Committee.

Board Meeting (13 held)*

Board Workshop (5 held)

Audit & Risk Committee (4 held)

Remuneration Committee (1 held)

Julie Boyd (Chair) 9 3 1 0 (of 1)

Michael Back 8 3 3

John Corbett 8 (of 9) 2 (of 2)

Michael Keniger 3 (of 4) 3 (of 3) 1

Michael Kerry 9 2

Brendan Gleeson 4 (of 4) 2 (of 3) 1

Renaye Peters 10 3 3

Margaret Strelow 12 5

Jim Reeves 9 (of 9) 2 (of 2)

Drew Ellem 11 1 4

Paul Low 8 (of 9) 1

Graeme Newton 1 (of 1) 0

Jack Noye 2 (of 4) 0 (of 1)

Graham Carpenter (ARC Chair) 4

*In 2010-11 an extraordinary board meeting was held to consider certain development schemes.


The Executive Management Team (EMT) within the ULDA consists of the Chief Executive Officer, Directors of the various areas within the organisation and the Chief Financial Officer (CFO). The EMT members meet fortnightly to review operations and performance of key strategies. Members also attend the board meetings.

Current membership of the EMT:

Executive Management Team

Paul Eagles: Chief Executive Officer

Paul has 30 years' experience in the development industry with a focus on the planning and delivery of residential communities providing a diverse mix of housing.

Since the ULDA's inception in 2007 Paul has been instrumental in steering the ULDA and setting the direction for the organisation. Paul has overseen the successful planning of 14 Urban Development Areas, including areas in Brisbane, regional and resource centres, and four new communities in South East Queensland which will become home to more than 300,000 people. Paul has also overseen the development of the award winning Fitzgibbon Chase as well as six other ULDA development projects underway across Queensland.

During his career before starting at the ULDA Paul held senior positions with national development companies working on large master planned communities in South East Queensland. Paul also spent 15 years in local government, including positions with Cairns City Council, Logan City Council and Albert Shire Council.

Steve Conner: Director - Planning

Steve joined the ULDA in May 2008 bringing more than 20 years' experience in strategic and statutory planning, urban design, transit orientated development and development assessment.

Since joining the ULDA Steve has led the planning team working on 14 Urban Development Areas that have been declared over the past three years. Steve has also been instrumental in the development of different planning guidelines including the Residential 30: Guideline to deliver diversity in new neighbourhood development.

Early in his career, Steve worked for the Commonwealth Government's Green Street program promoting innovative housing and residential development initiatives. Steve previously lead Queensland Transport's planning team which is responsible for development assessment and facilitating transit orientated development projects. A major project for the team was the Varsity Station Village on the Gold Coast.

Steve is dedicated to ensure quality design outcomes for suburban and urban environments, reflecting his formal qualifications in surveying, town planning, urban design and public sector leadership.

As Director Planning Steve is responsible for oversight of the Authority's planning functions including the preparation of development schemes and development assessment.


Matt Leyshon: Director - Urban Development

Matt joined the ULDA in October 2009 as Director of Development and led the expansion of the ULDA's project portfolio

from approximately 1,000 lots at Fitzgibbon Chase to over 3,000 lots across Queensland. With the transfer of approximately 60 hectares of land at Northshore Hamilton from the Port of Brisbane to the ULDA in 2010, a dedicated urban development team was formed which he now leads.

Prior to joining the ULDA, Matt was the Chief Operating Officer with Indigo Group and was also directly responsible for the development management of Indigo's multi-residential projects.

Matt has more than 20 years' experience in the property and construction industries and has worked in Australia, Hong Kong and London. He holds an MBA from the Australian Business School and a Bachelor of Architecture from the University of Queensland.

As Director Urban Development Matt is responsible for overseeing the Authority's development activities in UDAs including Northshore Hamilton, Woolloongabba and the Carseldine Urban Village in Fitzgibbon.

Peter Smith: Director - Residential Development

Peter joined the ULDA in November 2009 bringing the organisation a wealth of knowledge and experience in developing

residential projects. He has more than 15 years experience in preparing feasibilities, design and delivery of large and medium scale complexes, innovative master-planned residential communities, commercial and residential building, civil engineering, subdivisional and infrastructure master planning, construction and contract administration.

Previously at Brookfield Multiplex Developments, Peter was Senior Development Manager of Communities with responsibility for the proposed development of residential and non-residential land for the Echelon Development at the Keperra Quarry. Since joining the ULDA he has been instrumental in the planning and delivery of the Oonoonba, Townsville and Roma Urban Development Areas.

Peter is dedicated to ensuring the ULDA produces quality development outcomes for residential projects. He has a Masters of Science (Environmental Management) from Griffith University, Graduate Diploma in Municipal Engineering from the University of Southern Queensland and a Bachelor of Civil Engineering from the University of Queensland.

As Director Residential Development Peter is responsible for overseeing a development portfolio of substantial residential projects to deliver on the government's and the Authority's objectives to the benefit of Queensland communities.


Alan Dick: Director - Sustainability and Innovation

With over 30 years experience in the private sector and government Alan is a well qualified and knowledgeable asset

to the ULDA team. He has expertise in finance, economic modelling, evidence based management and planning policy primarily related to affordable housing.

Alan recently rejoined the ULDA after working as the Director of Evidence and Modelling in the Strategy Policy and Performance branch of the Department of Communities, which included responsibility for land use planning. He was also a member of the Inclusive Brisbane Board working with Brisbane City Council. Prior to this Alan was the Chief Financial Officer of the ULDA and instrumental in establishing some of the organisation's financial, legal, HR and IT systems and procedures.

He has also held senior roles in the former Department of Housing, including the development of the Kelvin Grove Urban Village, the establishment of the Brisbane Housing Company and the State Planning Policy (SPP 1/07) on residential and housing development. Alan has worked in consultancy, finance and the property development sectors in Australia and New Zealand.

Alan has a bachelor's degree in Commerce and is a qualified CA in New Zealand.

As Director Sustainability and Innovation Alan is responsible for strategies that support sustainable infrastructure, social planning, housing affordability and economic services.

Chris Mills: Chief Financial Officer

Chris joined the ULDA in June 2009. Admitted to the Institute of Chartered Accountants in Australia in 1992, he has worked with international chartered

accounting firms in Australia and England.

Chris is responsible for the provision of finance, HR, IT and legal support to the rest of the ULDA. He has developed a long term business model which provides strategies for the organisation to become self-funding over time.

Chris has managed various land acquisition arrangements including the transfer of $200m in property and assets at Northshore Hamilton.

In his previous role as corporate services manager at South Bank Corporation he managed a range of development, financial, retail and other operating responsibilities.

Additionally, Chris has extensive tourism and leisure experience gained through senior management roles in Macquarie Leisure Trust assets Dreamworld and d'Albora Marinas, and is a board member of Currumbin Wildlife Sanctuary.

Chris completed the Australian Institute of Company Directors course in 2004 and is the past chair of the ULDA's Audit & Risk Committee.

As Chief Financial Officer Chris is responsible for corporate services including the financial administration and governance of the Authority.


Workforce planning, attraction and retention

» 2010-11 has been a time of growth for the ULDA with staffing levels increasing from 45 to 89 full time equivalent employees from 1 July 2010 to 30 June 2011.

» Numbers grew as a result of seven new UDAs being declared and extra activity associated with land development projects, which grew from one to eight.

» The employment of additional staff has been necessary to meet the demands of the ULDA's expanding work programs in planning, development assessment, land development, sustainability and innovation and business services.

» During 2010-11 all ULDA staff were based in the Brisbane office, except for two staff members who were located on-site at the Fitzgibbon Chase residential land development project in Brisbane's north.

» In 2010-11 the ULDA recorded a permanent staff retention rate of 95 per cent and a permanent separation rate of 5 per cent.

The ULDA is continuing to adopt a practice of continual human resources improvement and innovation. The ULDA Performance Development Review process was relaunched in April 2011 with a renewed focus on professional development and achievement of Key Performance Indicators for all employees including management.

The ULDA offers its employees work life balance initiatives such as flexible working hours, leave arrangements, working from home, part-time and job share opportunities.

Voluntary Early Retirement (VER) and retrenchments

There were no VERs or retrenchments at the ULDA in 2010-11.

StaffingChief Executive Officer

BusinessServices

Finance Legal HR and Administration ICT

Office of the CEO

Corporate

CommunicationsPolicy


Office of the CEO

Finance

Legal

Human Resources

ICT

Development

Sales and Marketing

Planning


Business Unit FTE employees

Office of the CEO 8

Business Services- Finance 5.6

Business Services - Legal 1.9

Business Services- HR 4

Business services- ICT 2

Development - Residential 19

Development - Urban 4.8

Development - Sales and Marketing 8

Planning 19.4

Planning - Development Assessment 7

Sustainability and Innovation 9.8

Total 89.5

Chief Executive Officer

Planning

Planning Development Assessment Urban Residential


Innovation and Environment

CommunityDevelopment

Sales and Marketing

Development


Public Sector Ethics Act 1994

The ULDA's administrative procedures and management practices have proper regard for the organisation's code of conduct and the Public Sector Ethics Act 1994. Staff are made aware and trained in the code of conduct and the requirements for ethical behaviour. The code of conduct is on the ULDA's intranet and in the ULDA's register of documents which relate to the annual report and are available to the public, including through the ULDA website.

During the period of 1 July 2010 to 31 December 2010 the ULDA continued to use its own code of conduct approved in March 2009.

From 1 January 2011 the ULDA chose to opt into the new whole of Government code of conduct.

Ongoing education is provided to staff during induction/orientation and at regular staff meetings regarding the new code of conduct and its principles. Human Resource procedures and practices are being reviewed in order to align with the new code of conduct.

Whistleblowers Protection Act 1994

Under the Whistleblowers Protection Act 1994 the ULDA is required to report to Parliament on its administration of the Act from 1 July 2010 to 31 December 2010. There were no matters to be disclosed for public interest during 1 July 2010 to 31 December 2010.

With the repeal of the Whistleblowers Protection Act 1994 and the introduction of the Public Interest Disclosure Act 2010 (PID Act) on 1 January 2011, the way in which public interest disclosures are to be publicly reported has changed. From 1 January 2011 agencies are no longer required to report public interest disclosures in annual reports.

Under section 61 of the PID Act, the Public Service Commission (PSC) is now responsible for the oversight of public interest disclosures and preparing an annual report on the operation of the PID Act. From 1 January 2011 agencies are required to report information about public interest disclosures to the PSC. The PSC will prepare an annual report on the operations of the PID Act and the information provided by agencies. The annual report will be made publicly available after the end of each financial year.

Shared service agency

During 2010-11, the shared service agency Corporate Administration Agency (CAA) provided payroll support to the ULDA. The finance and records management services were transferred in-house to the ULDA at the start of the year, so that greater control over procedures was obtained during its growth.

All ICT systems were migrated in-house from CAA and CITEC to reduce operational costs for the Authority and to provide better remote access for staff who travel to the regions. The activities of the CAA are reported in the Department of Premier and Cabinet Annual Report.

Information systems and record keeping

The ULDA acknowledges the importance of the accuracy, accessibility and completeness of the information that it holds. The ULDA's systems and information management practices comply with the Public Records Act 2002 and organisational needs.

This is evidenced by the ongoing use of an eDRMS (TRIM), record keeping policies and associated procedures including a revised Retention and Disposal Schedule. Staff receive training on record keeping practices when they commence and refresher training is offered on a regular basis.

Right to Information

The Right to Information Act 2009 (RTI Act) is the Queensland Government's approach to giving the community greater access to information. The ULDA fully supports the Queensland Government's commitment to provide public access to information held by the government.

In line with legislation, the ULDA's right to information statements and publication schemes are available on our website www.ulda.qld.gov.au

During 2010-11 the ULDA received one application under the RTI Act. The application was processed in accordance with the RTI Act.

Information Privacy

There were no complaints or requests for amendments to personal information under the Information Privacy Act 2009.

Governance


ULDA staff are trained in information privacy by the ULDA's Legal Counsel. An audit of the ULDA's personal information holdings will be carried out in 2011-12.

Complaints Management

A Complaints Management Procedure policy was developed by the ULDA in 2010-11. The policy will be published in 2011-12 and training will be provided to relevant staff. The Complaints Management Procedure will provide staff with guidance on how to manage complaints, refer unresolved and more complex complaints to senior management, and will assign responsibilities for managing and reviewing complaints.

Native Title

In 2010-11, the ULDA commenced work to resolve native title issues in resource town UDAs to make land available for the delivery of a range of permanent and affordable housing products.

The ULDA is also assessing ways of working with Indigenous People, including identifying ways in which they can access employment and training opportunities within UDAs.

Overseas travel

There were no overseas trips taken in 2010-11.

Ministerial Direction

The Deputy Premier, Attorney-General, Special Minister of State and Minister for Local Government and Planning, the Honourable Paul Lucas MP, is responsible for the Urban Land Development Authority Act 2007 (ULDA Act).

The ULDA Act provides for a wide range of powers to enable the Authority to carry out its responsibilities. Under s130 of the ULDA Act, the Minister may give the ULDA a written direction about the performance of its functions (a Ministerial direction). No Ministerial direction was given in 2010-11.

Consultancies

The ULDA engages consultants to provide expertise where required skills are not available in-house or where knowledge is required immediately to reach project deadlines. In the 2010-11 the ULDA expended $4.32 million on consultancies.

Category of consultant 2011

$000

Professional/technical 3,951

Legal 249

Communication, community engagement public relations

119

$4,319

The increase from $1.806 million in 2009-10 to $3.951 million for professional and technical consultants is due to additional UDAs being declared, in particular the Greenfield UDAs.

Carers (Recognition) Act 2008

The ULDA does not deliver services or make strategic policy or planning decisions which would require consideration of the needs of carers.


Financial overview The financial statements included in this annual report provide specific information regarding the activities of the ULDA during the year and the Authority's financial position at the end of the year. 2010-11 was a year of continued growth for the ULDA with seven new UDAs declared and the commencement of development activity in a number of locations.

Operating resultThe ULDA's operating result for 2010-11 was a surplus of $5.1 million from ongoing operations.

Summary of Financial Performance

2011

$ m

2010

$ m

Land sales 40.2 9.7

Land costs (30.4) (8.4)

Development profit 9.8 1.3

Other revenue 14.5 10.4

Corporate expenses (19.2) (9.7)

Operating surplus before transfer adjustments, tax

5.1 2.0

Transfer adjustments a) 0 (45.7)

Tax equivalents expense (1.5) (45.9)

Net surplus (deficit) 3.6 (89.6) 2007-08 2008-09 2009-10 2010-11

ULDA Financial overview

Years

$ M

Total revenue

Total expenses

a) Transfer adjustments relate to Northshore Hamilton assets transferred to the ULDA in April 2010 and subsequently revalued.

60

55

50

45

40

35

30

25

20

15

10

5

0


RevenueThe ULDA's main revenue source was the sale of land at Fitzgibbon Chase and Northshore Hamilton.

The State Government provided $2.5 million in operational grants and $2.7 million for capital projects and $2.3 million was received from the Federal Government for capital projects. $1.7 million was received from fees for submitted development applications in Urban Development Areas (UDAs).

2007-08 2008-09 2009-10 2010-11

Revenue

Years

$ M

Other revenue

Grants

Land sales

56

52

48

44

40

36

32

28

24

20

16

12

8

4

0


Corporate expensesIn 2010-11 employee expenses grew to $9.5 million as full time equivalent staff numbers increased from 45 to 89. Supplies and services of $7.9 million were primarily attributed to consultants and contractors engaged.

Other expenses

Supplies and services

Employee expenses

2007-08 2008-09 2009-10 2010-11

Corporate expenses

Years

$ M

20

18

16

14

12

10

8

6

4

2

0

2011

$ m

2010

$ m

Land held for resale 138.5 99.2

Property, plant, equipment

218.3 218.9

Other assets 36.0 17.5

Total assets 392.8 335.6

QTC borrowings 56.0 45.5

Other liabilities 120.1 81.7

Total liabilities 176.1 127.2

Equity 216.7 208.4 2007-08 2008-09 2009-10 2010-11

Assets and liabilities

Years

$ M

Total assets

Total liabilities

Assets and liabilities

The increase in assets and liabilities reflects land acquisition and development activity at several sites and the associated increase in project debt facilities.

400

350

300

250

200

150

100

50

0


for the financial year ended 30 June 2011

Urban Land Development Authority Financial Statements

38

Urban Land Development AuthorityFinancial Statements 2010-11

ULDA Annual Report 2010-11

Contents Page No

Statement of comprehensive income.................................................................................................................................................39

Statement of financial position..........................................................................................................................................................40

Statement of changes in equity..........................................................................................................................................................41

Statement of cash flows.....................................................................................................................................................................42

Notes to and forming part of the financial statements.......................................................................................................................43

Management certificate of the Urban Land Development Authority...................................................................................................72

Independent audit report...................................................................................................................................................................73

General Information

The Authority is a Queensland Government Statutory Authority established under the Urban Land Development Authority Act 2007.

The Authority is controlled by the State of Queensland which is the ultimate parent.

The head office and principal place of business of the Authority is Level 4, 229 Elizabeth Street Brisbane QLD 4000.

A description of the nature of the Authority's operations and its principal activities is included in the notes to and forming part of the financial statements.

For information in relation to the Authority's financial statements please call 1300 130 215, email [email protected] or visit the Authority's website at www.ulda.qld.gov.au.


Notes 2011 2010

$000 $000

2 40,279 9,733

3 5,894 1,876

4 7,555 8,395

5 1,065 134

54,793 20,138

2 30,391 8,394

6 9,462 5,037

7 7,919 3,538

8 796 126

11 - 40,790

9 1,051 5,944

49,619 63,829

5,174 (43,691)

10 (101) 166

10 1,656 45,782

3,619 (89,639)

3,619 (89,639)

Urban Land Development AuthorityStatement of comprehensive incomefor the year ended 30 June 2011

Income from continuing operations

Sale of land

User charges

Grants and other contributions

Other revenue

Total income from continuing operations

Expenses from continuing operations

Cost of land sold

Employee expenses


Depreciation and amortisation

Land revaluation decrement

Other expenses

Total expenses from continuing operations

Operating result from continuing operations before income tax equivalent

Current income tax equivalent expense (revenue)

Deferred income tax equivalent expense

Operating result from continuing operations after income tax equivalent

Total comprehensive income

The accompanying notes form part of these statements.


Notes 2011 2010

$000 $000

12 28,042 10,283

13 2,039 203

14 138,471 99,263

15 267 146

168,819 109,895

16 31,834 24,556

17 186,536 194,466

10 5,582 6,746

223,952 225,768

392,771 335,663

18 27,097 14,307

19 33,624 17,284

20 587 336

21 16,728 7,374

78,036 39,301

20 129 53

19 30,494 28,201

18 14,545 7,174

10 52,919 52,528

98,087 87,956

176,123 127,257

216,648 208,406

301,256 296,633

(84,608) (88,227)

216,648 208,406

Current assets

Cash and cash equivalent

Receivables

Inventories

Other current assets

Total current assets

Non current assets

Property, plant and equipment

Investment property

Deferred tax

Total non current assets

Total assets

Current liabilities

Payables

Other financial liabilities

Accrued employee benefits

Provisions

Total current liabilities

Non current liabilities

Accrued employee benefits

Other financial liabilities

Payables

Deferred tax

Total non current liabilities

Total liabilities

Net assets

Equity

Contributed equity

Retained surplus

Total equity


Urban Land Development AuthorityStatement of financial positionas at 30 June 2011


Notes 2011 2010

$000 $000

12 28,042 10,283

13 2,039 203

14 138,471 99,263

15 267 146

168,819 109,895

16 31,834 24,556

17 186,536 194,466

10 5,582 6,746

223,952 225,768

392,771 335,663

18 27,097 14,307

19 33,624 17,284

20 587 336

21 16,728 7,374

78,036 39,301

20 129 53

19 30,494 28,201

18 14,545 7,174

10 52,919 52,528

98,087 87,956

176,123 127,257

216,648 208,406

301,256 296,633

(84,608) (88,227)

216,648 208,406

Balance as at 1 July 2009


Transactions with owners as owners

Net assets transferred

Balance as at 30 June 2010

Balance as at 1 July 2010


Equity contributions

Balance as at 30 June 2011


Urban Land Development AuthorityStatement of changes in equityfor the year ended 30 June 2011

Notes Accumulated Surplus

Contributed Equity

TOTAL

2010 2010 2010

$000 $000 $000

1,412 - 1,412

(89,639) - (89,639)

11 - 296,633 296,633

(88,227) 296,633 208,406

Notes Accumulated Surplus

Contributed Equity

TOTAL

2011 2011 2011

$000 $000 $000

(88,227) 296,633 208,406

3,619 - 3,619

21 - 4,623 4,623

(84,608) 301,256 216,648


Cash flows from operating activities

Inflows:

Sale of land

User charges

Grants and other contributions

GST collected from customers

GST input tax credits from ATO

Interest receipts

Outflows:

Employee expenses


GST paid to suppliers

GST remitted to ATO

Other

Net cash provided by/(used in) operating activities

Cash flows from investing activities

Inflows:

Infrastructure contributions

Payment received for capital project

Outflows:

Payments for property, plant and equipment

Payments for infrastructure

Net cash provided by/(used in) investing activities

Cash flows from financing activities

Inflows:

Borrowings

Outflows:

Borrowing redemptions

Net cash provided by/(used in) financing activities

Net increase in cash held

Cash at beginning of financial year

Cash at end of financial year


Urban Land Development AuthorityStatement of cash flowsfor the year ended 30 June 2011

Notes 2011 2010

$000 $000

38,434 9,733

5,715 4,246

7,555 8,395

2,909 1,010

6,087 6,152

1,011 122

(9,296) (4,980)

(39,492) (15,900)

(6,420) (8,896)

(2,968) (449)

- (627)

22 3,535 (1,194)

8,957 -

11,000 -

(10,983) (1,251)

(2,793) -

6,181 (1,251)

39,429 18,817

(31,386) (8,145)

8,043 10,671

17,759 8,226

10,283 2,057

12 28,042 10,283


Urban Land Development AuthorityNotes to and forming part of the financial statements

Objectives and principal activities of the Authority

Note 1: Summary of significant accounting policies

Note 2: Land sales

Note 3: User charges

Note 4: Grants and other contributions

Note 5: Other revenue

Note 6: Employee expenses

Note 7: Supplies and services

Note 8: Depreciation

Note 9: Other expenses

Note 10: Income tax equivalent

Note 11: Net assets transferred

Note 12: Cash and cash equivalent

Note 13: Receivables

Note 14: Inventories

Note 15: Other current assets

Note 16: Property, plant and equipment

Note 17: Investment property

Note 18: Payables

Note 19: Other financial liabilities

Note 20: Accrued employee benefits

Note 21: Provisions

Note 22: Key executive management personnel and remuneration

Note 23: Reconciliation of operating surplus/(deficit) to net cash from operating activities

Note 24: Non-cash financing and investing activities

Note 25: Commitments for expenditure

Note 26: Joint venture

Note 27: Events occurring after balance date

Note 28: Contingencies

Note 29: Financial instruments


Urban Land Development AuthorityNotes to and forming part of the financial statements 2010-11

The Authority, which was established under the Urban Land Development Authority Act 2007, works with local and state government, community, local landholders and the development industry to help deliver commercially viable developments that include diverse, affordable, sustainable housing, using best practice urban design.

During the year Urban Development Areas (UDAs) were declared in Roma, Blackwater, Moranbah, Yarrabilba, Greater Flagstone, Ripley Valley and Caloundra South. A potential UDA has been identified at Tannum Sands, Gladstone.

1. Summary of significant accounting policiesa. Statement of compliance

The Authority has prepared these financial statements in compliance with section 43 of the Financial and Performance Management Standard 2009.

These financial statements are general purpose financial statements and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Treasury's Minimum Reporting Requirements, to the extent relevant, for the year ended 30 June 2011 and other authoritative pronouncements.

With respect to compliance with Australian Accounting Standards and Interpretations, the Authority has applied those minimum requirements applicable to not-for-profit entities. Except where stated, the historical cost convention is used.

b. The reporting entity

The financial statements include the value of all revenues, expenses, assets, liabilities and equity of the Authority. The Authority does not have any controlled entities.

c. Income recognition

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

i. Revenue from the sale of land is recognised at the time of settlement when the risks and rewards of ownership have passed to the buyer.

ii. Interest is recognised as interest accrues.

iii. Government grants, that are non-reciprocal in nature, are recognised as revenue in the year in which the Authority obtains control over them. Where grants are received that are reciprocal in nature, revenue is recognised as the obligations under the funding arrangements are satisfied.

iv. Rental income is recognised evenly over the term of the lease.

Objectives of the Urban Land Development Authority

v. Project management fees are recognised progressively over the life of the project.

vi. Development Application fees are recognised as they are received.

d. Cash and cash equivalent

For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions.

e. Receivables

Trade debtors are recognised at the amounts due at the time of sale or service delivery. Settlement of these amounts is required within 30 days from invoice date.

The collectability of receivables is assessed periodically with provision being made for impairment where required.

f. Inventories

Inventories, being land held for sale, are valued at the lower of cost and net realisable value.

The Authority charges all direct expenditure on development work to the relevant project. Costs include acquisition, development and capitalised overheads.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, marketing and selling costs.

g. Acquisitions of assets

Actual cost is used for the initial recording of all non-current physical asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architect's fees and engineering design fees. However, any training costs are expensed as incurred.

Where assets are received free of charge from a Queensland Government entity (whether as a result of a machinery-of-Government or other involuntary transfer), the acquisition cost is recognised as the gross carrying amount in the books of the transferor immediately prior to the transfer together with any accumulated depreciation.

Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from another Queensland Government entity, are recognised at their fair value at date of acquisition in accordance with AASB116 Property, Plant and Equipment.

h. Property, plant and equipment

Items of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial reporting purposes in the year of acquisition.


h. Property, plant and equipment (cont'd)

Land $1

Plant and equipment $5,000

Buildings $10,000

Infrastructure $10,000

Items with a lesser value are expensed in the year of acquisition.

Capital works in progress are measured at cost.

i. Revaluations of non-current physical assets

Land, buildings and infrastructure are measured at fair value in accordance with AASB 116 Property, Plant and Equipment, and Queensland Treasury's Non-Current Asset Policies for the Queensland Public Sector. In respect of these asset classes, the cost of items acquired during the financial year has been judged by management of the Authority to materially represent their fair value at the end of the reporting period.

Plant and equipment is measured at cost in accordance with Treasury's Non-Current Asset Policies.

Non-current physical assets measured at fair value are comprehensively revalued at least once every five years with interim valuations, using appropriate indices, being otherwise performed on an annual basis where there has been a material variation in the index.

Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on valuation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that class.

On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.

Separately identified components of assets are measured on the same basis as the assets to which they relate.

j. Depreciation of property, plant and equipment

Land is not depreciated as it has an unlimited useful life.

Plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the Authority.

Assets under construction (work in progress) are not depreciated until they reach practical completion.

Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset.

For each class of depreciable asset the following depreciation and amortisation rates are used:

Class Rate %

Plant and equipment:

Office equipment 10-20

Leasehold improvements 20-40

Buildings 2.5-20

Infrastructure 2.5

k. Impairment of non-current assets

All non-current physical assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the Authority determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.

The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost.

An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1. Summary of significant accounting policies (cont'd)


l. Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost including transaction costs. Where investment property is acquired at no or nominal cost it is recognised at fair value and is subsequently carried at fair value, being revalued as at each reporting date. Fair value is based on selling prices in an active property market adjusted, if necessary, to reflect the nature, location or condition of the specific investment property.

Gains or losses arising from changes in the fair value of investment property are included in the Statement of Comprehensive Income for the period in which they arise. Investment property is not depreciated and is not tested for impairment.

Rental revenue from investment property is recognised as income on a periodic straight line basis over the lease term.

m. Unincorporated joint venture operations

The Authority's interest in unincorporated joint ventures (classified as jointly controlled operations) is brought to account by recognising in its financial statements the assets it controls, the liabilities that it incurs, the expenses it incurs and its share of income that it earns from the sale of land by the joint venture.

n. Payables

Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the nominal amount i.e. agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are generally unsecured and are generally settled on 30 day terms. Amounts payable for the acquisition of land are recognised at the time of settlement, and are payable in accordance with contract terms.

o. Financial instruments

Recognition

Financial assets and financial liabilities are recognised in the Statement of Financial Position when the Authority becomes party to the contractual provisions of the financial instrument.

Classification

Financial instruments are classified and measured as follows:

» Cash and cash equivalent - held at fair value through profit or loss

» Receivables - held at amortised cost

» Payables - held at amortised cost

» Borrowings - held at amortised cost

Borrowings are initially recognised at fair value, plus any transaction costs directly attributable to borrowings, then

subsequently held at amortised cost using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of a financial instrument (or, where appropriate, a shorter period) to the net carrying amount of that instrument.

Any borrowing costs are added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise. Borrowings are classified as non-current liabilities to the extent that the Authority has an unconditional right to defer settlement until at least 12 months after reporting date.

The Authority does not enter into transactions for speculative purposes, nor for hedging. Apart from cash and cash equivalent, the Authority holds no financial assets classified at fair value through profit or loss.

All disclosures relating to the measurement basis and financial risk management of other financial instruments held by the Authority are included in the notes.

p. Employee benefits

Employer superannuation contributions, annual leave and long service leave levies are regarded as employee benefits.

Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee related expenses.

Wages, Salaries, Recreation Leave and Sick Leave

Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at the current salary rates.

For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. Entitlements not expected to be paid within 12 months are classified as non-current liabilities and recognised at their present value, calculated using yields on fixed rate Commonwealth Government bonds of similar maturity, after projecting the remuneration rates expected to apply at the time of likely settlement.

The Authority is excluded from the Queensland Government's Annual Leave Central Scheme (ALCS), so recreation leave is shown on the Statement of Financial Position.

Prior history indicates that on average, sick leave taken in each reporting period is less than the entitlement accrued. This is expected to recur in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be

Urban Land Development AuthorityNotes to and forming part of the financial statements 2010-11 (cont'd)



p. Employee benefits (cont'd)

used by employees and no liability for unused sick leave entitlements is recognised.

As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

Long service leave

Under the Queensland Government's long service leave scheme, a levy is made on the Authority to cover the cost of employees' long service leave. The levies are expensed in the period in which they are payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears.

No provision for long service leave is recognised in the financial statements, the liability being held on a whole-of-Government basis and reported in the financial report prepared pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Superannuation

Employer superannuation contributions are paid to QSuper, the superannuation plan for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. The Authority's obligation is limited to its contribution to QSuper.

Therefore, no liability is recognised for accruing superannuation benefits in these financial statements, the liability being held on a whole-of-Government basis and reported in the financial report prepared pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Executive remuneration

Key executive management personnel and remuneration disclosures are made in accordance with Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury.

q. Provisions

Provisions are recorded when the Authority has a present obligation, either legal or constructive, as a result of a past event. They are recognised at the amount expected at reporting date at which the obligation will be settled in a future period.

The Authority charges and collects infrastructure contributions from developers. These contributions are:

i. applied to the construction of infrastructure, which is subsequently transferred to the relevant authority; or

ii. transferred to the relevant authority; or

iii. transferred to the relevant authority to fund the provision of infrastructure.

As such the contributions received are disclosed in the statement of cash flows but are not revenue. Amounts received but not yet utilised are disclosed as a provision for infrastructure contributions.

r. Financing/borrowing costs

Finance costs are recognised as an expense in the period in which they are incurred, other than finance costs associated with land development which are capitalised to land inventories.

Finance costs include:

» interest on bank overdrafts and short-term and long-term borrowings; and

» ancillary administration charges.

s. Insurance

The Authority's non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, with premiums being paid on a risk assessment basis. In addition, the Authority pays premiums to Workcover Queensland in respect of its obligations for employee compensation and has a contractual obligation to pay for environmental insurance over specified land at Northshore Hamilton.

t. Contributed equity

Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of machinery-of-Government changes or other involuntary transfers are adjusted to Contributed Equity in accordance with Interpretation 1038 Contributions to Owners Made to Wholly Owned Public Sector Entities. Equity contributions are similarly adjusted against equity.

u. Taxation

The Authority is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). As such, FBT and GST receivable from/payable to the Australian Taxation Office are recognised. Revenue, expenses and assets are recognised net of associated GST, unless GST incurred is not recoverable. In this case it is recognised as part of the asset cost or as an expense.

The Authority is subject to the provisions of the National Tax Equivalent Regime (NTER), an administrative arrangement where Commonwealth taxation laws are notionally applied to the Authority. In accordance with the requirements of the NTER, the Authority would pay an



u. Taxation (cont'd)

income tax equivalent to Queensland Treasury. Currently an arrangement exists between the Authority and Queensland Treasury whereby the tax equivalent expense can be retained by the Authority and directed to the delivery of affordable housing.

The charge for current income tax equivalent expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted at 30 June 2011.

Deferred tax equivalents are accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax equivalent will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax equivalents are calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax equivalents are credited in the Statement of Comprehensive Income except where it relates to items that may be credited directly to equity, in which case the deferred tax equivalent is adjusted directly against equity.

Deferred income tax equivalent assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the Authority will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

v. Issuance of financial statements

The financial statements are authorised for issue by the Chair of the Board and the Chief Executive Officer of the Authority at the date of signing the Management Certificate.

w. Judgements and assumptions

The Authority has made no judgements or assumptions that may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

x. Rounding and comparatives

Amounts included in the financial statements have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required. Sub-totals and totals may not add due to rounding, but the overall discrepancy is no greater than two.

y. New and revised accounting standards

The Authority did not voluntarily change any of its accounting policies during 2010-11. Only one amendment to an Australian accounting standard applicable for the first time in the 2010-11 financial year was relevant to the Authority, as explained below.

AASB 2009 - 5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project includes certain amendments to AASB 117 Leases, effective from reporting periods beginning on or after 1 January 2010. These amendments revise the criteria for classifying leases involving land and buildings. Consequently the Authority was required to reassess the classification of the land elements of all unexpired leases the Authority has entered into as at 1 July 2010, on the basis of information existing at the inception of the relevant leases. The outcome of the Authority's reassessment was that no reclassification from an operating lease to a finance lease was necessary.

The Authority has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The Authority will apply these standards and interpretations in accordance with their respective commencement dates.

At the date of authorisation of the financial report, the only significant impacts of new or amended Australian accounting standards with future commencement dates are as set out below.

AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13] becomes effective from reporting periods beginning on or after 1 January 2011. The Authority will then need to make changes to its disclosures about credit risk on financial instruments.

Also, for those financial assets that are either past due but not impaired, or have been individually impaired, there will be no need to separately disclose details about any associated collateral or other credit enhancements held by the Authority.

Urban Land Development AuthorityNotes to and forming part of the financial statements 2010-11 (cont'd)



y. New and revised accounting standards (cont'd)

AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 become effective from reporting periods beginning on or after 1 January 2013. The main impacts of these standards are that they will change the requirements for the classification, measurement and disclosures associated with financial assets. Under the new requirements, financial assets will be more simply classified according to whether they are measured at either amortised cost or fair value. Pursuant to AASB 9, financial assets can only be measured at amortised cost if two conditions are met.

One of these conditions is that the asset must be held within a business model whose objective is to hold assets in order to collect contractual cash flows. The other condition is that the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the Authority, or have no material impact on the Authority.



2011 2010

$000 $000

40,279 9,733

(30,391) (8,394)

9,888 1,339

3,046 1,375

1,676 184

1,025 182

147 135

5,894 1,876

5,290 7,610

2,265 785

7,555 8,395

1,065 134

1,065 134

6,577 3,586

792 437

745 355

150 67

508 234

690 358

9,462 5,037

2011 2010

89 45

2. Land sales Sale of land

Cost of land sold

Development profit

3. User charges Project management fees

Development application fees

Investment property rent

Other user charges

Total

4. Grants and other contributions Grants - state government

Grants - commonwealth government

Total

5. Other revenue Interest

Total

6. Employee expenses Employee benefits

Wages and salaries

Employer superannuation contributions

Annual leave expenses

Long service leave levy

Employee related expenses

Payroll tax and fringe benefits

Other employee expenses

Total

The number of full-time employees and part-time employees measured on a full-time equivalent basis is:

Number of employees



6. Employee expenses (cont'd)

Remuneration of board members and board sub-committee members was as follows: Board remuneration

& # Grant B (Chair) (resigned 24 September 2009)

& # Boyd J (Chair) (appointed 15 November 2007)

# Back M (appointed 15 November 2007)

Keniger M (resigned 14 November 2010)

Kerry M (appointed 15 November 2007)

Gleeson B (resigned 14 November 2010)

# Peters R (appointed 15 November 2007)

Strelow M (appointed 24 September 2009)

Reeves J (appointed 15 November 2010)

Corbett J (appointed 15 November 2010)

*# Ellem D public servant

* Low P public servant

* Noye J public servant

** Carpenter G (appointed 20 August 2009)

Total remuneration paid to all members :

# Members of the Board's Audit and Risk Committee.

& Ms J Boyd was appointed as Chair on 24 September 2009 to replace Mr B Grant.

* As a public servant no payment was paid or is applicable to Mr D Ellem, Mr P Low or Mr J Noye.

** Mr G Carpenter is not a Board member, but is Chair of the Audit and Risk Committee.

A sitting fee is paid to members of the Urban Land Development Authority Board and to the members of the Audit and Risk Committee. These have been included as Board remuneration for the purposes of this note.

7. Supplies and services Consultants and contractors

Corporate services charges

Legal fees

Public relations

Travel

Other

Total

2011 2010

$000 $000

- 2

14 10

4 4

2 4

3 4

2 4

5 5

5 3

3 -

3 -

- -

- -

- -

2 2

43 38

2011 2010

$000 $000

5,209 1,806

111 359

249 141

119 111

415 193

1,816 928

7,919 3,538


2011 2010

$000 $000

88 24

168 48

100 54

440 -

796 126

- 4,900

- 417

870 542

10 -

48 -

34 30

89 55

1,051 5,944

5,174 (43,691)

1,552 (13,107)

- 46,812

3 1

- 5

- 12,238

1,555 45,948

(101) 166

1,656 45,782

1,555 45,948

52,528 -

- 51,842

391 686

52,919 52,528


8. Depreciation Note

Depreciation was incurred in respect of:

Plant and equipment

Buildings

Leasehold improvements

Infrastructure

Total

9. Other expenses Transferred assets written off 11

Competitive neutrality fees

Property lease and rental

Special payments - Compensation claims

Special payments - Ex-gratia payments

Internal audit fees

External audit fees *

Total

*Total external audit fees relating to the 2010-11 financial year are estimated to be $60,000.

There are no non-audit services included in this amount.

10. Income tax equivalent Income tax equivalent expense

Operating result before income tax equivalent

Prima facie tax at 30%

Add tax effect of assets transferred in

Add tax effect of permanent differences:

Non-deductible entertainment

Interest income accrued

Land revaluation decrement

Income tax equivalent expense/(revenue)

Income tax equivalent expense/ (revenue) comprises

Current

Deferred

Deferred tax equivalent liability

Balance at the beginning of the year

Income tax equivalent expense on assets transferred in

Current year's income tax equivalent

expense/(revenue) on profit from ordinary

activities

Balance at the end of the year


Notes Transferred Reclassified Write Offs Balance Sheet

2010 2010 2010 2010

$000 $000 $000 $000

9 4,900 - (4,900) -

14 70,067 (36,983) - 33,084

74,967 (36,983) (4,900) 33,084

10. Income tax equivalent (cont'd)

Deferred tax equivalent asset

Balance at the beginning of the year

Income tax equivalent expense on assets

transferred in

Current year's income tax equivalent

(expense)/revenue on profit from ordinary

activities

Balance at the end of the year

Deferred tax assets comprise temporary differences attributable to:

Annual leave

Leave loading

Accrued expenses

Accrued audit fees

Long service leave payable

Assets written off

Accounting depreciation

Tax losses

Balance at 30 June

Deferred tax liabilities comprise temporary differences attributable to:

Accrued income

Prepayments

Inventories

Asset revaluation

Investment property

Infrastructure

Balance at 30 June

11. Net assets transferred as at 30 June 2010 Pursuant to section 9 of the Infrastructure Investment (Asset Restructuring and Disposal) Act 2009, on 9 April 2010 the following assets and liabilities were transferred from the Port of Brisbane Corporation Limited (POBC) to the Authority.

Accrued receivables

Land held for sale (a)

Total current assets

2011 2010

$000 $000

6,746 -

- 5,030

(1,164) 1,716

5,582 6,746

182 99

16 9

3 3

12 2

14 6

- 1,470

5,254 5,157

101 -

5,582 6,746

25 8

- 10

10,159 7,920

- 44,590

42,065 -

670 -

52,919 52,528


$000

70,067

(14,358)

(17,601)

(19,604)

14,580

33,084

219,066

(14,580)

(10,020)

194,466

Investment property (b)

Park land

Infrastructure - roads

Land under roads

Buildings - WDV

Plant minor - WDV

Total non-current assets

Total assets

Retention monies

Total liabilities

Net assets

The transfer was designated as a contribution by the State of Queensland by way of adjustment against contributed equity.

As future cashflows allow, the Authority is required to remit an agreed value to the Consolidated Fund. This will be effected by way of adjustment against contributed equity.

Reclassifications

Subsequent to the transfer, the members approved the re-classification of the following assets, in accordance with current policy:

(a) Land held for sale

Transferred at POBC classification

Transfer to park land

Transfer to infrastructure - roads

Transfer to land under roads

Transfer from investment property

(b) Investment property

Transferred at POBC classification

Transfer to land held for sale

Transfer to park land


Notes Transferred Reclassified Write Offs Balance Sheet

$000 $000 $000 $000

17 219,066 (24,600) - 194,466

16 - 24,378 (21,186) 3,192

16 - 17,601 - 17,601

16 - 19,604 (19,604) -

16 2,323 - - 2,323

16 290 - - 290

221,678 36,983 (40,790) 217,871

296,645 - (45,690) 250,955

(12) - - (12)

(12) - - (12)

296,633 - (45,690) 250,943

11. Net assets transferred (cont'd)


Asset write-offs and devaluations

The accrued receivable transferred related to sale of land. At 30 June 2010 the contract had not settled and, in accordance with the Authority's accounting policies, the revenue could not be recognised at that time. Therefore the members decided to write it off and $4.9m was recorded as an expense in the Statement of Comprehensive Income.

The values assigned to park land were found to be overstated, based on advice from the State Valuation Service and were devalued to reflect their zoning. The revaluation decrement of $21.2m was taken to the Statement of Comprehensive Income.

The value of land under roads has been written down to nil, as the roads have not been designated under the Land Act as road reserves and therefore are not required to be valued. The revaluation decrement of $19.6m has been taken to the Statement of Comprehensive Income.

It is expected that the parks and roads will be dedicated and transferred to Brisbane City Council in the future.

12. Cash and cash equivalent

Cash at bank and on hand

Total

Interest earned on cash held with the Commonwealth Bank of Australia earned between 4.35% and 5.50% in 2011. (2010: 3% to 4.5%)

13. Receivables Current

Trade debtors

GST receivable

Less: GST payable

Interest receivable

Long service leave reimbursements

Interest in land

Other

Total

11. Net assets transferred (cont'd)

2011 2010

$000 $000

28,042 10,283

28,042 10,283

335 163

660 -

(499) -

161 -

82 28

3 10

1,450 -

8 2

2,039 203


14. Inventories

Land held for sale:

Cost of acquisition

Transfers

Development costs

Other capitalised costs

Total

Of the inventories on hand at 30 June, $59m are expected to be realised after more than 12 months.

15. Other current assets Prepayments

Total

16. Property, plant and equipment Plant and equipment:

At cost

Less: accumulated depreciation

Work in progress:

At cost

Buildings:

At fair value


Infrastructure:

At fair value


Land:

At fair value

Total

Interim valuations were assessed on assets measured at fair value, using relevant price indices and information supplied by the Australian Bureau of Statistics, State Valuation Service and the Office of Economic and Statistical Research. No fair value adjustments were considered necessary as the changes to the indices were not material.


2011 2010

$000 $000

74,744 41,384

7,930 33,084

52,347 22,595

3,450 2,200

138,471 99,263

267 146

267 146

1,589 791

(415) (227)

1,174 564

7,730 454

2,908 2,908

(331) (163)

2,577 2,745

17,601 17,601

(440) -

17,161 17,601

3,192 3,192

31,834 24,556


Land valuations were last assessed by the State Valuation Service at 30 June 2010.

Reconciliation

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current reporting period are provided below.

Plant &

equipment

Work in

progress

Buildings Infrastructure Land Land under

roads

Total

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Carrying amount at 1 July

564 23 454 40 2,745 - 17,601 - 3,192 - - - 24,556 63

Acquisitions 798 367 7,276 414 - 470 - - - - - - 8,074 1,251

Transfers - 290 - - - 2,323 - 17,601 - 24,378 - 19,604 - 64,196

Assets written off/expensed

- (38) - - - - - - - - - - - (38)

Revaluation decrements

- - - - - - - - - (21,186) - (19,604) - (40,790)

Depreciation for period

(188) (78) - - (168) (48) (440) - - - - - (796) (126)

Carrying amount at 30 June

1,174 564 7,730 454 2,577 2,745 17,161 17,601 3,192 3,192 - - 31,834 24,556

The Authority has no plant and equipment with a written down value of zero still being used in the provision of services.

Refer to note 11 for detail on assets transferred and revalued.

16. Property, plant and equipment (cont'd)


781 1,067

403 3,043

1,184 4,110

17. Investment property

Land and buildings

Total

The investment properties were independently valued as at 31 March 2010 by qualified valuers Asset Val Pty Ltd using fair value principles. The 30 June 2011 valuation was considered to be materially unchanged. This was based on market conditions and a review of relevant indices. For land, State Valuation Services has advised that there has been no change in value at 30 June 2011. For buildings, the Asset revaluation index for non-residential buildings, produced by the Office of Economic and Statistical Research, provides for a fair value increase of less than 1%, therefore no fair value adjustments have been made to the carrying values.

No contingent rentals were recognised during the current or prior reporting periods.

The future minimum lease payments receivable under non-cancellable operating leases classified as investment property are:

Not later than one year

Later than one year and not later than five years

Total

Investment property reconciliation

Carrying amount at 1 July

Transfers in

Transfer to inventory

Carrying amount at 30 June

Rental income recognised in the operating surplus from investment property is $1,025,133 (2010: $182,136).

Direct operating expenses primarily for repairs and maintenance on property that did not generate rental income for the period were $203,137 (2010: $0). Direct operating expenses primarily for repairs and maintenance on property that did generate rental income for the period were $402 (2010: $0).

There are no restrictions on the realisability of investment property or remittance of income and proceeds of disposal.

The Authority does not have any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.


2011 2010

$000 $000

186,536 194,466

186,536 194,466

Land Buildings

2011 2010 2011 2010

$000 $000 $000 $000

190,380 - 4,086 -

- 190,380 - 4,086

(7,930) - - -

182,450 190,380 4,086 4,086


18. Payables Current

Trade creditors

Accrued expenses

Retentions

GST payable

Less: GST receivable

Deposits held

Deferred land payment

Other payables

Total

Non Current

Deferred land payment

Total

The deferred land payments represent amounts owing for the purchase of land at Fitzgibbon, Brisbane, and Oonoonba, Townsville and payment for an interest in land at Andergrove, Mackay. There is a first ranking registered mortgage over the Fitzgibbon land, in favour of State of Queensland (represented by Department of Communities). The carrying amount of assets pledged as security is $14.3 million. The Oonoonba land is secured by a first ranking registered mortgage, in favour of State of Queensland (represented by Department of Employment, Economic Development and Innovation). The carrying amount of assets pledged as security is $25 million. The Andergrove payment is a contractual requirement of a joint venture agreement with Mackay Regional Council.

The payments are due as follows:

Andergrove

Fitzgibbon

Oonoonba

19. Other financial liabilities

Current

Other advances

QTC borrowings

2011 2010

$000 $000

2,608 587

7,806 4,401

138 12

- 558

- (327)

- 231

- 1,844

16,351 7,174

194 58

27,097 14,307

14,545 7,174

14,545 7,174

<1 year 1 - 5 years

1,450 -

7,174 -

7,727 14,545

16,351 14,545

2011 2010

$000 $000

8,090 -

25,534 17,284

33,624 17,284



Non-current

QTC borrowings

All borrowings are Australian denominated amounts and are carried at amortised cost with interest being capitalised as it accrues. Repayment dates vary based on the timing of receipts from land sales. There have been no defaults or breaches of the loan agreement during the period.

As there is no requirement on the Authority to make repayments on the facilities in the next 12 months, the current portion of the QTC borrowings has been calculated based on estimated drawdowns and land sales for the 2011-12 financial year.

The total of approved facilities is $121.8 million (2010: $55 million). As at 30 June 2011, $65.8 million (2010: $9.5million) remains undrawn.

Interest rates on borrowings range from 5.21% to 5.72% (2010: 5.22% to 5.49%).

There were no fair value adjustments made to the carrying amount of the borrowings. The Authority is currently reviewing its loan facilities to reduce the potential for fair value adjustments on early settlement of the loans.

20. Accrued employee benefits

Current

Recreation leave

Long service leave levy payable

Wages outstanding

Total

2011 2010

$000 $000

30,494 28,201

2011 2010

$000 $000

531 306

47 21

9 9

587 336

19. Other financial liabilities (cont'd)

Approved facility Approved amount Balance at 30 June 2011 Undrawn amount

$000 $000 $000

Fitzgibbon 55,000 48,779 6,221

Oonoonba 15,000 4,554 10,446

Moranbah 9,000 - 9,000

Andergrove 5,000 830 4,170

Clinton 4,000 1,596 2,404

Roma 2,400 268 2,132

Blackwater 1,400 - 1,400

Working capital 30,000 - 30,000

Total 121,800 56,027 65,773


Note

Non-current

Recreation leave

Total

The discount rate used to calculate the present value of non-current recreation leave is 10%. (2010: 9%)

21. Provisions Competitive neutrality


NTER 10

Total

Movements in provisions

Competitive neutrality

Balance as at 1 July

Additional provision recognised

Transferred to contributed equity

Balance as at 30 June

As the Authority is a government body, it is exempt from certain fees and taxes (rates, stamp duty, land tax) that would otherwise be payable in the private sector in relation to development projects. To ensure that the Authority does not have a competitive advantage over private sector competitors, provision is made for the equivalent costs of all exempt fees and taxes. These funds are required by the Queensland Government to be directed to the delivery of affordable housing outcomes.



Infrastructure charges collected

Provision utilised


This provision represents infrastructure charges applicable to developments in Urban Development Areas.

NTER


Transferred to contributed equity


2011 2010

$000 $000

129 53

129 53

5,861 4,457

10,867 2,751

- 166

16,728 7,374

4,457 1,767

5,861 2,690

(4,457) -

5,861 4,457

2,751 -

10,909 2,751

(2,793) -

10,867 2,751

166 -

(166) -

- -

20. Accrued employee benefits (cont'd)


22. Key executive management personnel and remuneration

(a) Key executive management personnel

The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the Authority during 2010-11. Further information on these positions can be found in the body of the Annual Report under the section relating to Executive Management.


Position Responsibilities Current incumbents

Contract classification and appointment authority

Date appointed to position (Date resigned from position)

Chief Executive Officer

The Chief Executive Officer is responsible for the efficient, effective and economic administration of the Authority.

S120 contract Urban Land Development Authority Act 2007; CEO 3

Appointed 3 December 2007

Chief Financial Officer

The Chief Financial Officer is responsible for corporate services including the financial administration of the Authority.

s122 contract Public Service Act 2008; SES 4

Appointed 1 June 2009

Director Urban Development

The Director Urban Development is responsible for overseeing the Authority's development activities in UDAs including Northshore Hamilton, Woolloongabba and Carseldine Urban Village in Fitzgibbon.


Appointed 1 August 2010

Director Residential Development

The Director Residential Development is responsible for overseeing a development portfolio of substantial residential projects to deliver on the government's and the Authority's objectives to the benefit of Queensland communities.


Appointed 4 January 2011

Director Planning The Director Planning is responsible for oversight of the Authority's planning functions including the preparation of development schemes and development assessment.


Appointed 19 April 2010

Director Sustainability and Innovation

The Director Sustainability and Innovation is responsible for strategies that support sustainable infrastructure, social planning, housing affordability and economic services.

s133(2) appointment Public Service Act 2008; SES 2

Appointed 1 November 2010


22. Key executive management personnel and remuneration (cont'd) (b) Remuneration

Remuneration policy for the Authority's key executive management personnel is set by the Queensland Public Service Commission as provided for under the Public Service Act 2008. The remuneration and other terms of employment for the key executive management personnel are specified in employment contracts. The contracts provide for the provision of benefits including motor vehicles.

For the 2010-11 year, remuneration of key executive management personnel increased by 2.5% in accordance with government policy.

Remuneration packages for key executive management personnel comprise the following components:

» Short term employee benefits which include:

i. Base - consisting of base salary, allowances and leave entitlements paid and provided for the entire year or for that part of the year during which the employee occupied the specified position. Amounts disclosed equal the amount expensed in the Statement of Comprehensive Income.

ii. Non-monetary benefits - consisting of provision of vehicle together with fringe benefits tax applicable to the benefit.

» Long term employee benefits including long service leave accrued.

» Post employment benefits including superannuation contributions.

» Redundancy payments are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payments in lieu of notice on termination, regardless of the reason for termination.

Total fixed remuneration is calculated on a 'total cost' basis and includes the base and non-monetary benefits, long term employee benefits and post employment benefits.


Position Short term employee benefits Long term employee

benefits

Post employment

benefits

Total remuneration

Base Non-monetary benefits

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

Chief Executive Officer 356 4 8 30 399

Chief Financial Officer 209 4 6 22 241

Director Urban Development 194 - 5 20 219

Director Residential Development 162 - 4 16 182

Director Planning 193 - 10 18 221

Director Sustainability & Innovation 107 1 3 10 121

Total Remuneration 1,221 9 36 116 1,383


Position Short term employee benefits Long term employee

benefits

Post employment

benefits

Total remuneration

Base Non-monetary benefits

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

Chief Executive Officer 351 3 8 37 399

Chief Financial Officer 183 - 4 19 206

Director Development 140 - 3 14 157

Director Planning 165 - 4 18 187

Total Remuneration 839 3 19 88 949

1 July 2010 - 30 June 2011

1 July 2009 - 30 June 2010

22. Key executive management personnel and remuneration (cont'd) (b) Remuneration (cont'd)


2011 2010

$000 $000

3,619 (89,639)

796 126

- 4,938

- 33,072

- 40,790

(1,948) 2,919

(39,209) (65,039)

1,164 (6,746)

(127) (123)

20,210 20,483

328 57

18,311 5,441

391 52,528

3,535 (1,193)

1,068 617

1,979 1,785

3,047 2,402

23. Reconciliation of operating result to net cash from operating activities


Depreciation expense

Write-down of other assets transferred

Net assets transferred

Revaluation decrement

Changes in assets and liabilities:

(Increase)/decrease in net receivables

(Increase)/decrease in inventory

(Increase)/decrease in deferred tax asset

(Increase)/decrease in prepayments

Increase/(decrease) in payables

Increase in accrued employee benefits

Increase/(decrease) in provisions

Increase/(decrease) in deferred tax liability

Net cash provided by/(used in) operating activities

24. Non-cash financing and investing activities No assets or liabilities were received or donated/transferred by ULDA and recognised as revenues and expenses.

25. Commitments for expenditure

(a) Non-cancellable operating lease

Commitments under operating leases at reporting date are inclusive of anticipated GST and are payable as follows:



Total

Operating leases are entered into as a means of acquiring access to office accommodation, motor vehicle and carparking.

Lease payments are generally fixed, but with escalation clauses on which contingent rentals are determined.

No renewal or purchase options exist in relation to operating leases and no operating leases contain restrictions on financing or other leasing activities.


2011 2010

$000 $000

49,943 37,987

6,543 9,188

56,486 47,175

1,450 -

1,420 -

(2,040) -

(830) -

- -

(b) Capital expenditure commitments

Land acquisitions and improvements, and other capital commitments, inclusive of anticipated GST,

contracted for at reporting date but not recognised in the accounts are payable as follows:



Total

26. Joint venture

The Authority holds a 50% interest in a joint venture with the Mackay Regional Council (classified as a jointly controlled operation) to develop residential land within the Andergrove Urban Development Area. The Authority's interests in assets in the joint venture are included in the balance sheet under the following classifications:

Receivables (Interest in land)

Inventories

Payables

QTC borrowings

Net assets

27. Events occurring after balance date

There were no significant events occurring after balance date.

28. Contingencies

(a) Litigation in progress

As at 30 June 2011, no legal action has been undertaken by, or brought against, the Authority.

(b) Native title claims

As at 30 June 2011, native title claims have been made on land owned by the Authority, but as yet no claims have been determined by the National Native Title Tribunal.

(c) Contract performance guarantees

Financial guarantees of $968,558 (2010: $0) were provided to Ergon Energy Corporation Ltd to provide security for the performance of obligations under contracts for electrical works in Oonoonba, Townsville; Andergrove, Mackay; and Clinton, Gladstone.


25. Commitments for expenditure (cont'd)


2011 2010

$000 $000

28,042 10,283

2,039 203

30,081 10,486

41,642 21,481

64,118 45,485

105,760 66,966

29. Financial instruments (a) Categorisation of financial instruments

The Authority has the following categories of financial assets and financial liabilities:

Category Note

Financial assets

Cash and cash equivalent 12 Receivables 13

Total

Financial liabilities

Payables 18

Other financial liabilities 19

Total

(b) Financial risk management

The Authority's activities expose it to a variety of financial risks - credit risk, liquidity risk and market risk.

Financial risk management is implemented pursuant to Government and Board policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the Authority.

All financial risk is managed by Executive Management under policies approved by the Board. The Board provides written principles for overall risk management, as well as policies covering specific areas.

The Authority measures risk exposure using a variety of methods as follows:

(c) Credit risk exposure

The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment.

Risk exposure Measurement method

Credit Risk Ageing analysis, earnings at risk

Liquidity Risk Sensitivity analysis

Market Risk Interest rate sensitivity analysis


2011 2010

$000 $000

28,042 10,283

2,039 203

30,081 10,486

The following table represents the Authority's maximum exposure to credit risk based on contractual amounts net of any allowances:

Maximum exposure to credit risk Note

Category

Cash 12

Receivables 13

Total

No collateral is held as security and no credit enhancements relate to financial assets held by the Authority.

The Authority manages credit risk through the use of management reports. This strategy aims to reduce the exposure to credit default by ensuring that the Authority invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis.

The method for calculating any provisional impairment for risk is based on past experience, current and expected changes in economic conditions and changes in client credit ratings. These economic changes form part of the Authority's documented risk analysis assessment in conjunction with historic experience and associated industry data.

Financial assets have not had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated.

Aging of past due but not impaired as well as impaired financial assets is disclosed in the following tables:

2011 Financial assets past due but not impaired

Contractual repricing/maturity date:

Overdue

Financial Assets Receivables

Total


Note Not overdue Less than 30 days

30-60 days 61-90 days More than 90 days

Total financial assets

$000 $000 $000 $000 $000 $000

13 2,009 3 2 25 - 2,039

2,009 3 2 25 - 2,039

29. Financial instruments (cont'd) (c) Credit risk exposure (cont'd)


Note Not overdue Less than 30 days

30-60 days 61-90 days More than 90 days

Total financial assets

$000 $000 $000 $000 $000 $000

13 203 - - - - 203

203 - - - - 203

2010 Financial assets past due but not impaired

Contractual repricing/maturity date:

Overdue

Financial Assets

Receivables

Total

(d) Liquidity risk

Liquidity risk refers to the situation where the Authority may encounter difficulty in meeting obligations associated with financial liabilities.

The Authority is exposed to liquidity risk in respect of its payables and borrowings from Queensland Treasury Corporation. The borrowings are based on the Queensland Government's gazetted floating rate.

The Authority manages liquidity risk through the use of management reports. This strategy aims to reduce the exposure to liquidity risk by ensuring the Authority has sufficient funds available to meet employee and supplier obligations at all times. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities.

The following table sets out the liquidity risk of financial liabilities held by the Authority. It represents the contractual maturity of financial liabilities, calculated based on cash flows relating to the repayment of the principal amount outstanding at reporting date.


Payables

QTC borrowing

Total

2011 payable in

Note < 1 year 1-5 years > 5 years Total

$000 $000 $000 $000 $000

18 27,097 14,545 - 41,642

19 25,534 30,494 - 56,028

52,631 45,039 - 97,670

29. Financial instruments (cont'd) (c) Credit risk exposure (cont'd)


2010 payable in

Note < 1 year 1-5 years > 5 years Total

$000 $000 $000 $000 $000

18 14,307 7,174 - 21,481

19 17,284 28,201 - 45,485

31,591 35,375 - 66,966



Payables

QTC borrowing

Total

(e) Market risk

The Authority does not trade in foreign currency and is not materially exposed to commodity price changes. The Authority is exposed to interest rate risk through its cash deposits in interest bearing accounts and its borrowings from QTC. The Authority does not undertake any hedging in relation to interest rate risk.

Interest rate sensitivity analysis

The following interest rate sensitivity analysis is based on a report similar to that which would be provided to management, depicting the outcome to profit and loss if interest rates would change by +/- 1 % from the year-end rates applicable to the Authority's financial assets and liabilities. With all other variables held constant, the Authority would have a surplus and equity increase/(decrease) of $280,000 (2010: $352,000). This is attributable to the Authority's exposure to variable interest rates on interest bearing cash deposits and borrowings.

The Authority's sensitivity to interest has increased in the current period due to increased borrowings for property development projects.

Financial instruments Carrying amount

2011 Interest rate risk

-1% +1%

Profit Equity Profit Equity

Cash 28,042 (280) (280) 280 280

QTC borrowing 56,028 560 560 (560) (560)

Overall effect on profit and equity 280 280 (280) (280)

Financial instruments Carrying amount

2010 Interest rate risk

-1% +1%

Profit Equity Profit Equity

Cash 10,283 (103) (103) 103 103

QTC borrowing 45,485 455 455 (455) (455)

Overall effect on profit and equity 352 352 (352) (352)

29. Financial instruments (cont'd) (d) Liquidity Risk (cont'd)


(f) Fair value

The Authority does not recognise any financial assets or financial liabilities at fair value.

The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any provision for impairment.

The Authority has not offset any assets and liabilities.

The fair value of borrowings is notified by Queensland Treasury Corporation. It is calculated using discounted cash flow analysis and the effective interest rate (refer note 19) and is disclosed below:


Borrowings

Total

2011 2010

Carrying amount

Fair value Carrying amount

Fair value

$000 $000 $000 $000

56,028 56,784 45,485 46,204

56,028 56,784 45,485 46,204

29. Financial instruments (cont'd)





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Contact UsVisit our website at: www.ulda.qld.gov.au

Write to us at:Urban Land Development AuthorityGPO Box 2202Brisbane QLD 4001

or at:

Level 4, 229 Elizabeth St

Brisbane QLD 4000

telephone the ULDA directly

on 1300 130 215

Documents

Annual Report 2010-11 - Queensland Parliament€¦ · ULDA Annual Report 2010-11 3 Message from the Chair I am pleased to present the Urban Land Development Authority's (ULDA's) Annual