final report for q-comp for the period 1 july to 29 ......amendment act 2013 on 29 october 2013, ......

Final Report for Q-COMP for the period 1 July to 29 October 2013

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CONTENTSCopyright

© State Government of Queensland (Q-COMP) 2014

Disclaimer

The information provided in this publication is distributed by the Department of Justice and Attorney-General as an information source only. The Department of Justice and Attorney-General does not take any responsibility for any reliance upon the information in this publication. The information is provided solely on the basis that readers will be responsible for making their own assessment of the matters discussed herein and are advised to verify all relevant representations, statements and information.

Accessibility

We are committed to providing accessible services to Queenslanders

from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding our Annual Report, please contact the Translating and Interpreting Service (TIS) on 131 450 for assistance.

LETTER OF COMPLIANCE......................................4 CHAIRPERSON’S REPORT......................................5

CHIEF EXECUTIVE OFFICER’S REPORT...................6

REPORT PURPOSE.................................................7

Q-COMP AND THE SCHEME..................................8

RETURN TO WORK ASSIST...................................10

RETURN TO WORK CONFERENCE, EXPO AND AWARDS 2013.....................................11

OUR PEOPLE........................................................13

BOARD OF DIRECTORS........................................15

Q-COMP LEADERSHIP TEAM...............................16

REVIEW UNIT.......................................................19

APPEALS.............................................................21

FRAUD PROSECUTION.........................................23

MEDICAL ASSESSMENT TRIBUNALS....................24

DATA MANAGEMENT AND ANALYTICS................25

SELF-INSURERS...................................................26

WORKING WITH OUR STAKEHOLDERS................29

GOVERNANCE....................................................30

FINANCIAL OVERVIEW.........................................37

FINANCIAL STATEMENTS.....................................47

INDEPENDENT AUDITOR’S REPORT.....................77

APPENDICES.......................................................79

GLOSSARY..........................................................81

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LETTER OF COMPLIANCEPRESENTING THE REPORT TO THE ATTORNEY-GENERAL AND MINISTER FOR JUSTICE

31 March 2014

The Honourable Jarrod Bleijie MPAttorney-General and Minister for JusticeLevel 18, State Law Building 50 Ann StreetBRISBANE Q 4000

Dear Minister

I am pleased to present Q-COMP’s Final Report. This report represents Q-COMP’s achievements for its final period of operation from 1 July 2013 to 29 October 2013.

Upon commencement of relevant provisions of the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013 on 29 October 2013, regulatory functions for the Queensland workers’ compensation scheme, as modified by the amending provisions, were transferred from Q-COMP to the Workers’ Compensation Regulator within the Department of Justice and Attorney-General.

The report outlines the activities and achievements of the former Workers’ Compensation Regulatory Authority in accordance with its strategic and operational plans and its regulatory functions as set out in section 330 of the Workers’ Compensation and Rehabilitation Act 2003 prior to amendment.

I commend this final report to you, as a record of our activities and achievements during the final reporting period for the term of our operation.

Yours sincerely

Flavia GobboChairperson

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CHAIRPERSON’S REPORTOn 15 October 2013, the Attorney-General and Minister for Justice introduced the Workers' Compensation and Rehabilitation and Other Legislation Amendment Bill 2013, which introduced a number of significant changes to the scheme including the merger of Q-COMP into the Department of Justice and Attorney-General. This merger commenced on 29 October 2013 with the assent of the Bill.

This new structure maintains the separation of regulatory functions from insurance/claims services introduced in 2003 and aims to improve cooperation, innovation, the use of resources and, where appropriate, the provision of more integrated services.

To assist in the transitional phase, including the integration of Q-COMP’s people and functions into the Department, the Board is continuing its strategic and oversight role until 30 June 2014.

I am pleased to note that during this period of review and change the Queensland workers’ compensation scheme has continued its high level of performance, achieving both improved scheme solvency and improved rates of return to work for injured workers.

Q-COMP has continued to achieve improved financial outcomes and finishes this period with a positive balance sheet.

I would like to extend my thanks and best wishes to the members of the Q-COMP Board. The Board has played an active role in guiding the direction of Q-COMP and assisting in this transition and I would like to thank each member of the outgoing Board for their contribution and wish them all the best for the future.

I would also like to acknowledge the work of the former Chief Executive Officer, Elizabeth Woods and her senior management team, and would like to thank all the staff of Q-COMP for continuing to focus on excellent service delivery while adapting to these major changes and reform of the scheme.

Although this will be my final year in the position of Q-COMP chair, I remain passionate about the important work of the Queensland workers’ compensation scheme and its role in providing benefits to both Queensland workers and employers.

Flavia GobboChairperson

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CHIEF EXECUTIVE OFFICER’S REPORTI am pleased to present the Q-COMP Final Report for 2013-14.

This is Q-COMP’s final annual report as a standalone statutory body, a decade after it was first separated from WorkCover Queensland. It is a time for review and reflection.

Q-COMP ended its tenure as a statutory body on 29 October 2013 and will now deliver its range of regulatory and educational services as part of the Department of Justice and Attorney-General.

The merging of the workers’ compensation scheme regulator with the electrical safety and work health and safety regulator will provide economies of scale and go towards developing a more integrated corporate identity regulating injury prevention, injury management, claims management and return to work services.

In particular, the state-wide networks of the Office of Fair and Safe Work Queensland, incorporating work health and safety, electrical safety and industrial relations, contain a wealth of expertise in workplace matters from which our people can now draw.

Transitional arrangements have ensured that the Q-COMP Board stays in place until 30 June 2014 to continue its strategic and oversight role while the recent legislative amendments are rolled out.

The changes made to the structure of Queensland’s workers’ compensation scheme will provide a strong base on which we will build the next decade of excellence in the delivery of workers’ compensation regulatory services and education.

Finally and most of all I would like to thank the staff of Q-COMP for managing this era of change with the professionalism and drive for which they are renowned.

Simon BlackwoodActing Chief Executive Officer

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REPORT PURPOSEQ-COMP THE WORKERS’ COMPENSATION REGULATORY AUTHORITY

The Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013 (the Amendment Act) received assent on 29 October 2013. Under the provisions of the Amendment Act, Q-COMP (the Workers’ Compensation Regulatory Authority) was abolished on 29 October 2013.

The Amendment Act also established the Office of the Workers’ Compensation Regulator, and made provision for the Governor-in-Council to appoint a public service officer as Regulator. The Workers’ Compensation Regulator is responsible for performing a range of functions including regulating the Queensland workers’ compensation scheme. On 7 November 2013, the Governor-in-Council appointed the public service officer who holds the title of the office of Deputy Director-General, Office of Fair and Safe Work Queensland the Department of Justice and Attorney-General, as the Workers’ Compensation Regulator. This office is currently held by Simon Blackwood.

The Amendment Act provides that the former Q-COMP Board continues to perform its pre-amendment functions until 30 June 2014. The Board is also responsible for performing functions and exercising powers delegated by the Workers’ Compensation Regulator, as well as reporting to the Attorney-General and Minister for Justice about the operation of the workers’ compensation scheme and assisting the Regulator to perform its regulatory functions in a proper, effective and efficient way. The Board’s appointment and functions will cease after 30 June 2014.

The Amendment Act also provided that the appointment of Q-COMP’s Chief Executive Officer ended upon commencement. The majority of Q-COMP employees were transferred to the Department of Justice and Attorney-General.

The Final Report for Q-COMP is produced to report on performance for the period from 1 July 2013 to 29 October 2013. The report is produced to:

� inform the Attorney-General and Minister for Justice, scheme stakeholders and interested parties from other jurisdictions

� communicate Q-COMP’s activities and achievements for the final period within the 13/14 financial year

� measure performance against the objectives set in the operational plan.

During its period of operation, Q-COMP had a varied and complex stakeholder base, and each has an essential role in ensuring a healthy workers’ compensation scheme.

These include:

� the Attorney-General and Minister for Justice

� government departments, in particular the Department of Justice and Attorney-General

� workers’ compensation insurers, including WorkCover Queensland and 25 self-insurers

� employers and their industry associations

� workers and unions

� rehabilitation and return to work coordinators

� medical and allied health professionals and their associations

� legal professionals and their associations

� employees

� Q-COMP staff.

One of Q-COMP’s ongoing goals for the 13/14 financial year was to work closely with all stakeholders to educate, engage and increase participation in the scheme in order to achieve better outcomes for both employers and workers.

REPORTING Q-COMP’S PROGRESS

The Final Report for Q-COMP, the Workers’ Compensation Regulatory Authority, to the Attorney-General and Minister for Justice accurately reflects Q-COMP’s financial and non-financial performance for the period from 1 July 2013 to 29 October 2013. Achievements and activities have been summarised against the goals developed in the strategic and operational planning processes. The Final Report satisfies the legislative requirements of the Workers’ Compensation and Rehabilitation Act 2003, Financial Accountability Act 2009, Statutory Bodies Financial Arrangements Act 1982 and other relevant legislation and government standards.

TELL US WHAT YOU THINK

As the administering department responsible for preparing Q-COMP’s final report, the Department of Justice and Attorney-General is committed to continual improvement and open and accountable governance. We invite and welcome your feedback on this publication. A feedback form is available on the Workers’ Compensation Regulator’s website at qcomp.com.au or you can send your comments via email to [email protected].

FINDING THE INFORMATION YOU NEED

The Final Report is available on qcomp.com.au.

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Q-COMP AND THE SCHEMEQ-COMP was established on 1 July 2003 as an independent statutory authority whose prime function was to regulate Queensland’s workers’ compensation scheme. Q-COMP worked closely with scheme partners to balance the needs of workers and employers to ensure a fair and efficient scheme for all.

Regulating

� Monitoring the compliance of insurers with the Workers’ Compensation and Rehabilitation Act 2003 (the pre-amended Act).

� Monitoring the performance of insurers under the Act, including the consistent application of the Act.

� Deciding self-insurance applications.

� Approving amounts payable under an industrial instrument.

� Collecting fees and administering grants pursuant to the Act.

� Administering scheme-wide rehabilitation and return to work programs.

� Undertaking workplace rehabilitation accreditation and compliance activities.

Rehabilitation

� Providing rehabilitation advisory services.

� Administering return to work programs.

Dispute resolution

� Reviewing insurers’ decisions.

� Managing appeals against Q-COMP review decisions.

� Supporting and overseeing the efficient administration of medical assessment tribunals.

Education and information

� Promoting education about the Queensland workers’ compensation scheme

� Administering grants pursuant to the Act.

Data management

� Maintaining a database for scheme-wide reporting.

During the reporting period, Q-COMP received no funding from the government’s consolidated revenue and was funded through levies collected from self-insurers and a contribution from WorkCover Queensland.

HAVING A WORKERS’ COMPENSATION POLICY

WorkCover Queensland

In Queensland, every employer, unless licensed as a self-insurer, must have a workers’ compensation policy with WorkCover Queensland. This policy provides financial protection to employers by covering the costs associated with workers’ compensation statutory claims and common law claims.

For the reporting period, WorkCover Queensland was Q-COMP’s major insurer stakeholder, and a strong working relationship was maintained supporting the employers and employees of Queensland. Regular meetings were held to discuss and progress issues of mutual concern and work together to develop solutions and ways forward. This commitment to a strong relationship was endorsed and supported at the executive level of both Q-COMP and WorkCover Queensland.

SELF-INSURERS

At 29 October 2013, there were 25 self-insurers (see Appendix 1) in the Queensland scheme covering 262 employers and their employees. A self-insurance licence for an employer may be approved if they meet legislative criteria that consider size, assets, bank guarantees and health and safety performance.

*Note: the full list of individual companies under each self-insurance licence is available at qcomp.com.au.

During the reporting period, Q-COMP maintained a good working relationship and open lines of communication with the scheme’s self-insurers via a dedicated self-insurer team. Insurer Advisors met regularly with self-insurer representatives to discuss advisory, performance and licensing matters.

Insurers were encouraged to raise and discuss their concerns and scheme issues, both individually and through the Association of Self-Insured Employers of Queensland (ASIEQ).

WORKERS’ COMPENSATION POLICY AND SCHEME DESIGN

During the reporting period, Q-COMP maintained strong relationships with the Department of Justice and Attorney-General, WorkCover Queensland, self-insurers and other key stakeholders, and remained committed to working with these industry partners to build a modern workers’ compensation scheme for the whole of Queensland.

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PRIDEVIBRANT, PROFESSIONAL, COMMITTED TO EXCEEDING EXPECTATIONS

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RETURN TO WORK ASSIST

RETURN TO WORK ASSIST 13/14 AT A GLANCE

OBJECTIVE: Assist even more injured workers who are facing long-term unemployment to find their way back into the workforce, positively impacting their lives, their communities and Queensland employers.

OUTCOMES: There was an overall return to work rate of 78.3%. Of those referrals finalised with a common law claim, 54.7% returned to work prior to settlement. 1,046 workers were referred through to the program between July and October 2013.

Return to work assist was a free career development and return to work service achieving positive outcomes for employers and workers within the Queensland workers’ compensation scheme.

Services provided to our clients included preparing resumes, job application letters, identifying new career and retraining opportunities, utilising effective job seeking strategies and helping them prepare for job interviews.

From 29 October 2013, as a result of amendments to the Workers’ Compensation and Rehabilitation Act 2003, the administration of scheme-wide rehabilitation and return to work programs is now the responsibility of insurers.

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RETURN TO WORK CONFERENCE, EXPO AND AWARDS

RETURN TO WORK CONFERENCE, EXPO AND AWARDS 13/14 AT A GLANCE

OBJECTIVE: To continue to develop our Awards program with the inclusion of an innovation award that is open to all stakeholder groups. Continue to expand the Conference and Awards program into more varied industries to attract a more diverse audience.

OUTCOMES: Another successful Awards program, maintaining high levels of engagement from a broad range of industries. The promotion of an innovation award that was available to be awarded at the judges discretion from across the pool of all nominees. The judges did not confer an innovation award based on no nominee meeting the requirements of the Award.

The delivery of another sell-out Return to work Conference, Expo and Awards in Brisbane in October 2013. The Conference and Expo attracted more exhibitors and delegates than ever before.

The annual Return to work Conference, Expo and Awards was held on 30 October 2013 at the Brisbane Convention and Exhibition Centre. It will be the fourth Conference and fifth Awards in the series.

BRISBANE EVENT

Selling out months in advance, the Conference has truly found its niche in a saturated market, attracting rehabilitation and return to work coordinators from across South East Queensland and further afield who are eager to expand their skill set and develop their potential in this challenging field.

Q-COMP was pleased to welcome close to 600 delegates to the event, and even more pleased to receive positive feedback from 99% of delegates who indicated that they would like to attend the event in 2014.

Similar feedback was received from the 19 external exhibitors who hosted trade booths at the Expo – the largest Expo Q-COMP has hosted.

The Awards received 325 nominations from across the state, maintaining a consistently high level of interest from stakeholders over the last five years. Nine Awards were conferred at the ceremony, held as part of the Return to work Conference and Expo on 30 October 2013. All winners and finalists demonstrated excellence in rehabilitation and return to work, and provided an example for our industry to celebrate and learn from.

In 2013, the Award winners were:

� Injured Worker Achievement Award New Career - Elizabeth Cusack

� Injured Worker Achievement Award Return to work - Terry Stables

� Injured Worker Achievement Award Serious Injury - Christopher Wighton

� Rehabilitation and return to work coordinator Achievement Award – Caroline Kuskie

� Employer Achievement Award (Large Employer) – Goodyear & Dunlop Tyres

� Employer Achievement Award (Small-Medium Employer) - Unitywater

� Health Provider Achievement Award – Isa Therapy Services

� Case Management Achievement Award – Alison Robinson

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PEOPLEINSPIRED, EMPOWERED, VALUED

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OUR PEOPLE

OUR PEOPLE 13/14 AT A GLANCE

OBJECTIVE: Return to grass roots and reflect on the journey our culture has taken including completing a third culture survey and working with the Leadership Team to action those recommendations.

Reinforcing a positive culture to encourage a workplace of choice and build capabilities across Q-COMP.

OUTCOMES: The employees of Q-COMP continued to review the way they delivered services both externally to our customers and internally to our business areas by creating efficiencies in support and technical areas. This included building a flexible and responsive workplace with shared responsibilities in customer facing areas.

Q-COMP employees continued to apply a positive culture by encouraging each other to embrace change.

HIGHLIGHTS

Red tape reduction initiatives continued to be rolled out in business units with many of the areas becoming paperless. Q-COMP also began to reduce the need for storage of files, by engaging an external provider to scan files held in off-site storage and capture the information on files within TRIM (Q-COMP’s data and electronic records management system). This allowed staff to have a quicker response time when sourcing documents for customers. Efficiencies were also gained in streamlining the financial processes with tribunal member payments.

Q-COMP also introduced a rotation system on ground foor reception which included all staff and managers, including the leadership team. The benefits were twofold, allowing staff and managers from different areas of the business to get to know each other, as well as providing a well-informed service to our visitors.

Further sessions of “Responding to Emotional Behaviours” were conducted by Assure Programs. This training program

provided participants with the tools and strategies for dealing with emotional customers while helping them to understand the workers’ compensation processes.

HEALTH AND WELLBEING

In September Q-COMP provided staff with a week of free wellness seminars and activities titled “Spring into Spring”. The sessions were voluntary and covered a range of activities including reviving body and mind with meditation and gentle yoga; energising their day by learning more about nutrition.

COMMUNITY - DRESS FOR SUCCESS

Staff contributed to a clothing drive for “Dress for success” which is a voluntary service to help women return to the workforce. The donations were well received and provided many women with a new wardrobe for interviews.

13/14 12/13 11/12 10/11 09/10

Full-time equivalent 100.1 99.9 115.3 107.8 100.4

Average full-time equivalent 101.1 107.6 109.8 108.4 104.9

Permanent retention % 87.3 88.1 82.4 91.1 89.5

Permanent attrition % 11.1 12.2 13.7 6.3 7.3

Temporary attrition % 3 2.9 1.8 6.2 5.0

Voluntary early retirement, redundancy and retrenchment

9 4 5 4.6 1.8

1. RETENTION AND ATTRITION OF EMPLOYEES

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OUR PEOPLE (CONT’D)

13/14 12/13 11/12 10/11 09/10

Female Male Female Male Female Male Female Male Female Male

1 0 0 0 0 0 0 0 0 0.5 0.8

2 13 1 16 2 17 2 14.8 1 17.9 1

3 23 2 16 2 21 0 18.5 1 10 1

4 32 7 31 11 33 13 31.9 13 33 11

5 8 8 9 7 10 7 8.8 5 8.2 6

6 NA NA NA NA 1 1 2 2 1 1

Contract 8 3 8 4 7 4 5.8 4 5 4

Subtotal 84 21 80 26 89 27 81 26 75.6 24.8

Total 105 106 116 107.8 100.4

2. OUR WORKFORCE PROFILE

13/14 12/13 11/12 10/11 09/10

Permanent part-time Male 0 0 0 0 0

Female 10 9 10 7 10

Temporary part-time Male 0 0 0 1 1

Female 1 2 0 0 2

3. OUR DEMOGRAPHIC - PART-TIME EMPLOYMENT STATUS

Chief Executive

Officer

Executive Services and

Corporate Governance

Review and Appeals

Insurer Services, Finance, Facilities and Procurement

Marketing and Communication

Data Management Analytics and Information Technology

Education Promotion

and Tribunal Services

Return to work assist and Central

Administration

4. ORGANISATIONAL CHARTBoard

Human Resources

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OUR BOARD OF DIRECTORSFlavia GobboChairperson

BA/LLB, GAICD

Flavia has extensive experience as a former senior corporate lawyer with one of Australia’s top publicly listed companies. Flavia has had a wide range of both legal and management experience. She has been involved in the areas of product management and marketing, corporate governance and the company secretariat, treasury and dispute resolution, particularly in insurance and recoverable damages. She is currently a board member of Rowing Australia and also of SecondBite, a national food rescue organisation.

Peter DowlingDeputy Chairperson

AM, BA(Acc), FCPA, FAICD

Peter is an accountant and company director. He is a Fellow of CPA Australia and The Institute of Chartered Accountants in Australia and a Fellow of The Australian Institute of Company Directors. He was formally a Partner with international accounting firm Ernst & Young. He is a Centenary of Federation Medal recipient and was made a Member of the Order of Australia in 2007. Peter has a number of other board and audit and risk committee appointments and is also the Queensland Honorary Consul for Botswana.

Paul GoldsbroughDirector

Paul is the Senior Director for Workers’ Compensation and Policy Services at the Office of Fair and Safe Work Queensland. Paul has worked in the fields of occupational health and safety, workers’ compensation and rehabilitation for over 25 years for both the Federal and State governments. His current role involves development of workplace health and safety, electrical safety and workers’ compensation policy and legislation and includes involvement in a number of national working groups addressing specific aspects of the model WHS laws, chemicals security and workers’ compensation arrangements.

David HarrisonDirector

FAICD

David, a company director since 1987 and chairman of QMI Solutions, has thirty years' experience in industrial relations. David's directorships included Powerlink, Port of Brisbane, QIC, Brisbane Airport and Sunsuper. David also served as Secretary of the AMWU and President of the QCU. In 2003 David was awarded the Centenary Medal for distinguished service to industrial relations. In 2013 David was appointed to the Queensland Independent Remuneration Tribunal.

Stephen TaitDirector

Stephen joined the Chamber of Commerce and Industry Queensland in January 2012 as Chief Executive Officer. Stephen is a commercially focussed business leader with a proven track record of developing organisations through periods of change in competitive business environments. Stephen’s extensive business experience encompasses Strategic Marketing, Senior Leadership, and Change Management across international, national and local markets.

Dr Beres WenckDirector

MB.BS, FRACGP (Hon), FAMA, MAiCD

Beres is a past President of the Australian Medical Association (Queensland) and is past Chair of the AMAQ Workers' Compensation Advisory Committee. She is also Vice President of MDA National, a leading medical defence organisation. She is the Principal Medical Director of Family Care Medical Services, Australia's largest and leading provider of after hours primary medical services. She is the Medical Consultant for Adoption Services Queensland and chairs the National Standing Committee for GP Advocacy and Support for the RACGP. Beres has previously been appointed by the Minister for Industrial Relations to the Selection Panels for the General and Specialty Medical Assessment Tribunals. She is a General Practitioner in Milton.

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Q-COMP LEADERSHIP TEAMElizabeth Woods Chief Executive Officer BPhty, LLB, FAICD

Elizabeth was appointed CEO of Q-COMP in 2007 and was the driving force behind building the organisation’s profile as a dynamic, customer-focused and professional organisation.

Before joining Q-COMP, Elizabeth was a physiotherapist in private practice then retrained as a lawyer. She is a Fellow on the Australian Institute of Company Directors and has been appointed to several boards and audit and risk committees.

Michelle BrookerHuman Resources Manager

BA (Ad ED & HRM)

Michelle managed the Human Resources Unit for seven years. Michelle supported Q-COMP to build the capability of its staff to provide flexibility and diversity with their skills, and to provide staff with opportunities for personal growth and development.

Tony CacciolaExecutive Manager – Return to work Assist and InsurerServices MBA (IR and HR), Cert IV Career Development and Employment Services

Tony used his experience in the workers' compensation industry to influence positive scheme outcomes in his leadership of the Insurer Services team and the Return to work assist career development program. During his time at Q-COMP, Tony transformed Return to work assist into a specialist career development service for injured workers.

Keren Cooksey Manager – Marketing CommunicationsBA Hons

Keren was responsible for developing and growing the marketing and communications function, to ensure Q-COMP fulfilled its obligation to promote education about the workers’ compensation scheme.

This included delivery of the Return to work Conference, Expo and Awards, supporting internal communication campaign and increasing the awareness and understanding of Q-COMP among stakeholders across Queensland.

Julie FoxExecutive Manager – Tribunal Services and Education Promotion Unit

BA (Psych); Grad.Dip.App.Sci.; M(Public Health)

Julie led the Education Promotion and Tribunal Services Units where her focus was to support her teams in providing quality education, information, services and resources to all stakeholders, no matter where they are located in Queensland.

Warren Hawkins Executive Manager – Finance; Information Technology; Data Analytics

B.App.Sc

A member of the Q-COMP leadership team since 2008, Warren led teams across the Data Management and Analytics, Information Technology and Finance functions.

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Q-COMP LEADERSHIP TEAM (CONT’D)

John McDiarmidExecutive Manager – Review and Appeals Group

BSc Hons (Applied Economics)

As Executive Manager of the dispute resolution processes for workers and employers who are aggrieved by an insurer’s decision, John’s priority is to successfully implement the QI database system within the Appeals team, after having completed this process for the Review team in 12/13.

Jonathan ShieldManager, Corporate Governance and Executive Services

BA(Hons I)/LLB, Grad.Dip. Applied.Corp.Gov., AGIA

Jonathan was responsible for administering Q-COMP’s corporate governance framework and providing secretariat support to the Q-COMP Board. The Executive Services team also provided administrative support and advice to the CEO and executive team, and business-wide legal services including the management of self-insurer fraud referrals.

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INTEGRITYCOURAGE TO DO THE RIGHT THING

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REVIEW UNIT

REVIEW 13/14 AT A GLANCE

OBJECTIVE: • 55% of review decisions being made within 25 business days of valid lodgement.• To ensure costs associated with legal panel advice are lower than 12/13 levels.• Within the red tape initative, the Review Team will investigate and implement reportable business

improvements designed to improve customer service and operational efficiency.

OUTCOMES: • 75.4% of review decisions were made within 25 business days of valid lodgement.• Legal Panel costs were $21,780 less than the same period last year, down from $260,460.• The Review Team transitioned from paper files/records to electronic processing, improving efficiency and

reducing the costs associated with processing review decisions.

4. NUMBER OF NEW APPLICATIONS BY YEAR

The Review Unit offers an independent review process for employers or injured workers who are dissatisfied with a decision of an insurer. The review process is timely, transparent and non-adversarial. The outcomes of the review process can be that the insurer’s decision is confirmed, set aside or the matter can sometimes be returned to the insurer for further investigation. We are committed to doing the best we can to balance the need for independence and providing a personal service to people lodging and responding to a review application.

13/14 data for the period 1 July 2013 to 29 October 2013

TAKING A CLOSER LOOK AT OUR REVIEWS

82.6% of applications for Review are lodged by workers, 14.9% by employers and the remaining 2.5% relate to policy/premium matters. These proportions have remained consistent over the last five years.

More than half of review applications (60.4%) are in response to the insurer’s decision to reject a claim. A further 16.9% of review applications relate to ceased claims and 14.4% to accepted claims.

Following the completion of the review process, 56.7% of Q-COMP’s decisions confirm the original decision made by the insurer, 22.0% are set aside and 21.3% return the file to the insurer for further investigation. The review process is focused upon timely resolution and requests for extensions in which to provide information are common. From July to October, 51.1% of reviews were granted an extension of time to allow a party to submit further information. Timely decision making is a key consideration of the Review Unit and extension requests are carefully considered. Where granted, these extensions are generally only available for relatively short time periods.

09/10 10/11 11/12 12/13

Financial year

2,954

3,333 3,237 3,269

13/14

1,154

5. REVIEW APPLICATIONS BY LODGEMENT TYPE

2.3%

17.1%

80.6%

Policy/Premium

Employer

Worker

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REVIEW UNIT (CONT’D)

OPERATIONAL EFFICIENCY IMPROVEMENTS

The review of an insurer’s decision is an administrative process that has traditionally involved the use of paper based information and files. A key theme for the unit has been moving to electronic processing and this was completed this financial year. All incoming correspondence for the unit is now centrally scanned into Q-COMP’s core databases and relevant staff notified by electronic message.

Files are, in general, sourced from insurers in electronic format, allowing the review staff to categorise, sort and process the information electronically.

New processes have also been created that allow work to be allocated electronically within the teams, incorporating notifications of new reviews for the staff and tools such as e-diaries and pop-ups to help with scheduling of review decisions and workloads.

As part of the drive to improve operational efficiency, a substantial part of the work performed by the Central Administration Team has been automated through IT process improvements, allowing the reallocation of resources to core functions within the organisation.

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APPEALS

APPEALS 13/14 AT A GLANCE

OBJECTIVE: To deliver and enhance professional development modules for Review and Appeals Officers and continue to work with electronic files to improve our environmental impact.

OUTCOMES: A number of sessions were scheduled across the unit for staff to attend, including guest speakers and panel barristers on injury types, impact of management action on claims and recent legislative changes.

If an injured worker or an employer is dissatisfied with a decision of the Review Unit they may appeal this decision to the Queensland Industrial Relations Commission (QIRC). The Appeals Unit focuses on managing this process, working with barristers through the legal process and acting as a model litigant in all matters.

APPEALS LODGED

There were 118 appeals served between 1 July to 29 October 2013 with an average of 30 appeals per month (115 in the QIRC and three in the Industrial Magistrates Court for premium matters).

APPEALS RATE

The appeals rate has decreased from 14.8% in 12/13 to 12.1% in 13/14 (to 29 October 2013). The number of hearing days, a key benchmark for the unit in identifying workload and legal costs, increased from an average of 34.5 days per month for 12/13 (414 days) to 39.8 days per month in the first four months of 13/14 (159 days).

KPIs AND TIMEFRAMES

The average cost of an appeal for the first four months of 13/14 was $4,017 ($3,521 in 12/13) which was below the target of $6,000. The increase in the average cost has been driven by a reduction in the number of appeals that were withdrawn prior to hearing. The average cost of an in court appeal remained stable at $9,666 in 13/14 ($9,682 in 12/13).

Overall, appeal finalisation timeframes reduced, with 72.2% of appeals finalised within nine months of lodgement compared to 60.0% for 12/13. The average non-judicial resolution timeframe for 13/14 was 184.9 days, compared to 237.3 days in 12/13.

.

13/14 data for the period 1 July 2013 to 29 October 2013

INDUSTRIAL COURT OUTCOMES

There were four appeals finalised in the Industrial Court from July to October. Two worker initiated appeals were dismissed, one worker initiated appeal was struck out and one employer initiated appeal was conceded.

Appeals Outcome 13/14 12/13

Appeals finalised 133 492

Before court 80.5% 81.7%

Conceded by Q-COMP 19.5% 12.0%

In court - dismissed 18 out of 26 46 out of 90

In court - upheld 6 out of 26 18 out of 50

Appeals withdrawn 59.4% 68.3%

6. APPEALS OUTCOMES

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AN EVOLVING APPEALS TEAM

This year has focussed upon structural change within the unit and process improvement. The unit is now supported by an additional manager, allowing more time to be devoted to the new business improvement initiatives. With the added resources, further time is also available for discussing the approach used in each appeal and ensuring Q-COMP is able to adopt the most appropriate strategy, while applying the principles of a model litigant.

The Appeals Unit has also devoted energy to planning and designing a core database called “QI”. This has already led to the identification of many process improvements which will save time, reduce complexity and lower the operational risks of the unit.

Progress has also been made in the electronic management of files, with a project to define internal naming conventions of documents and standardised barrister briefs started in 13/14. This will lead to more streamlined and consistent business practices both for the unit and key stakeholders.

While the appeals rate from review decisions has decreased from previous years, the Appeals team has continued to experience an increase in their overall workload. The Queensland Industrial Relations Commission (QIRC) will recruit two additional members, which will likely reduce the timeframes for each procedural stage prior to, and including the hearing. Although the majority of appeals will subsequently be withdrawn prior to hearing, Q-COMP is required to undertake each of the issued directions and incurs significant resources in complying with them.This will remain a challenge for the unit and is an inherent situation for those in the legal system. These changes will help minimise the potential impact of this on the unit.

APPEALS (CONT’D)

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The prosecution of offences committed against the Workers’ Compensation and Rehabilitation Act 2003 is important to maintain public confidence in the administration of the law and the scheme itself.

Section 536 of the Act (prior to amendment) established a duty for self-insured employers to report to Q-COMP any workers that they believe have committed a fraud related offence in relation to their claim for compensation.

The Act refers to the following fraud offences:

� Section 533 - a person must not in any way defraud or attempt to defraud an insurer;

� Section 534 - a person must not state anything

to a self-insurer, or give a self-insurer a document containing information, the person knows is false or misleading in a material particular; and

� Section 535 - failing, without reasonable excuse, to inform the insurer of engagement in a calling after lodgment of application for compensation.

The legal services team reviewed all fraud referrals and commenced prosecution in situations where:

� there is sufficient evidence of an offence being committed; and

� prosecution is in the public interest.

Self-insurer Charge/s Outcome

Arnott’s Biscuits Limited 1 charge of engaging in a calling

On appeal to the District Court, decision of the Magistrates Court to find the worker guilty upheld. 12 month probation order and the order to pay $30,029.87 in resitution upheld.

7. SUCCESSFUL PROSECUTIONS AND THEIR OUTCOMES

FRAUD PROSECUTION

From 29 October 2013, legislative amendments established a duty for both WorkCover Queensland and self-insurers to report alleged fraud-related offences to the Workers’ Compensation Regulator. The Regulator will review all fraud referrals and commence prosecution where appropriate.

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MEDICAL ASSESSMENT TRIBUNALS 13/14 AT A GLANCE

OBJECTIVE: To remain on the path of continuous improvement and use the technology available to ensure efficient processing of incoming Medical Assessment Tribunal (MAT) referrals. To assimilate the introduction of the Guidelines to Evaluation of Permanent Impairment (GEPI) to Tribunal staff and members.

OUTCOMES: All incoming referrals to the Tribunal are processed electronically by Tribunal staff. For tribunals that are pre-booked, Tribunal members receive their referral material via a specialised iPad application on a secure iPad. Insurers also have the opportunity to lodge referrals to the Tribunal electronically.

MEDICAL ASSESSMENT TRIBUNALS

During July to October 2013, we remained committed to our legislated role of supporting and overseeing the efficient administration of the Medical Assessment Tribunal process. Our professionalism is evidenced through supporting the tribunal panel members in such a way as to allow for robust, clear decision making and providing a comprehensive service that meets the needs of workers and insurers.

REGIONAL TRIBUNALS

Continuing on with our commitment of holding regional tribunals quarterly, we scheduled a General Medical Assessment (Psychiatric) Tribunal in Rockhampton in November 2013.

We convene one regional tribunal per quarter and injured workers attend for assessments ranging from ongoing incapacity for work and permanent impairment.

Regional tribunals reduce claims costs for insurers who are responsible for the travelling expenses for claimants to attend tribunal appointments in Brisbane. Regional tribunals also assist claimants who, due to medical reasons, are unable to travel or who may not have support networks readily available to them in Brisbane, for example family members or legal representation.

ELECTRONIC REFERRAL LODGEMENT

In conjunction with the introduction of electronic file management within the tribunal team, the ability for insurers to lodge a referral through an online services portal was developed. This allows insurers to efficiently lodge a referral directly to the Medical Assessment Tribunal.

Insurers log into a secure portal online which allows them access to lodge a referral. Insurers need only enter a minimum amount of information to register the

referral and the ancillary information that accompanies the referral, such as periods of incapacity, are imported via the scheme’s main database. Insurers also have the opportunity to attach the required documents for the tribunal referral. If the mandatory documents are not submitted, the referral cannot be completed. Once submitted by the insurer, the referral is automatically registered into our main database and attachments saved in our record management system.

With the introduction of online referral lodgement there is no need for a tribunal staff member to manually register the referral as this occurs automatically via the online system. The development of this program complements the introduction of electronic file management within the tribunals. All referrals are managed electronically and are no longer paper based.

GUIDELINES TO EVALUATION OF PERMANENT IMPAIRMENT TRAINING FOR TRIBUNAL MEMBERS

Legislative changes introduced new requirements for assessing permanent impairment for work-related injuries. The Guidelines for Evaluation of Permanent Impairment (GEPI) is to be used by medical practitioners to assess a worker’s degree of permanent impairment arising from all work-related injuries that occurred after 15 October 2013. GEPI is based on a set of nationally agreed model guidelines developed by Safe Work Australia as a part of ongoing work to create a nationally consistent approach to assessing permanent impairment. Training for medical practitioners, including Medical Assessment Tribunal members, will occur in the first part of 2014. This training is facilitated by the Workers’ Compensation Regulator and will give all medical assessors who undertake permanent impairment assessments the knowledge and tools required to make these assessments under the new legislation.

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DATA MANAGEMENT AND ANALYTICS

DATA MANAGEMENT AND ANALYTICS 13/14 AT A GLANCE

OBJECTIVE: Maintain robust scheme monitoring. Continue to investigate and implement innovative reporting solutions.

OUTCOMES: This year we have continued to work in unison with IT to deliver a streamlined and integrated reporting solution to the business.

The Data Management and Analytics Team (DMA) are responsible for the quality of the data captured, and endeavour to provide clear and insightful business intelligence to reveal patterns, anomalies, key variables and relationships. We meet regularly with insurers, publish statistical reports annually and hold scheme updates to ensure our stakeholders are kept up-to-date with key trends.

THIS YEAR’S HIGHLIGHTS

During July to October 2013, DMA has updated and published the claims monitoring report, and improved the process by which we release the insurer comparative reports, making the process quicker than ever before.

We’ve continued to shadow IT as they upgrade the front end interface of the core system (QI), ensuring reporting is relevant and optimised for the business user.

DMA again attended the Return to work Conference showcasing our Industry comparative calculator and key statistics by region.

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SELF-INSURERS

SELF-INSURED EMPLOYERS 13/14 AT A GLANCE

OBJECTIVE:Respond to changes resulting from the Parliamentary inquiry to support self-insured employers by keeping them informed of their legislative obligations.

OUTCOMES: Maintained healthy relationships with self-insured employers and the Association of Self-Insured Employers of Queensland (ASIEQ), including providing briefings and ad-hoc advice on legislative changes introduced in October 2013. The performance and compliance of self-insured employers continues to be of an exceptionally high standard.

Prior to amendment, the Workers’ Compensation and Rehabilitation Act 2003 (the Act) made Q-COMP responsible for monitoring the performance and compliance of insurers, (Section 330 (2)(a)).

At 29 October 2013 there were 25 self-insurance licences in Queensland covering 262 employers and their employees across the state.

Q-COMP undertook a performance management program to promote standards of excellence in insurer performance and ensure compliance with the legislation. The performance management program covers rehabilitation case management, claims management, complaints management and statistical analysis of performance. While the focus is on maintaining strong relationships with employers that are self-insured, the Act required judgements to be made about whether these employers are exercising their powers reasonably and that they are fit and proper to hold a self-insurance licence.

PERFORMANCE

The Insurer Services Unit has been successful at maintaining good relationships and monitoring the performance of the self-insured employers. All self-insured employers continue to meet their obligations under the Act. Performance monitoring activity over the period included:

� three comprehensive compliance audits

� monthly analysis of key data for each insurer

� two licence renewal applications

� one application was received for a new self-insurance licence on behalf of a group of eight employers. This application is expected to be determined in early 2014.

On 6 August 2013, the Attorney-General and Minister for Justice, the Honourable Jarrod Bleijie MP, introduced legislative amendments giving Q-COMP greater discretion under the Workers’ Compensation and Rehabilitation Act 2003, in relation to the issue and renewal of self-insurance licences if satisfied that special circumstances exist that warrant employers being granted self-insurance licences; thereby allowing them greater flexibility in their business arrangements. Guidelines were developed to support this change.

As part of its primary function of monitoring the performance of insurers, the Insurer Services Unit invited input and feedback from self-insurers to assist it in reviewing the current performance management program document to further support the working relationship with them, and to enable the regulatory functions to be performed effectively. The valuable feedback provided by insurers together with any proposed changes will be shared with the Association of Self-Insured Employers of Queensland (ASIEQ) and self-insurers before implementation.

The unit continued to improve reporting for self-insurers with a new monthly report focusing on statistics by members within a classification group self-insurance licence. The report is being trialled at the moment with one insurer and will enable a snapshot summary that includes the number of claims, average claims cost and durations per licence member. This could be an invaluable management tool to determine the performance of different parts of a self-insurer’s business. At the end of the trial period, it will be shared with ASIEQ and self-insurers to gauge which self-insurers wish to receive the report on a regular basis.

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SELF-INSURERS (CONT’D)

The unit also developed a non return to work outcome report for insurers to identify workers who may need assistance in retraining or up-skilling to assist them in obtaining employment when they can no longer return to their former roles.

In line with legislative changes allowing a greater than 5% permanent impairment entry threshold for common law entitlements for injuries after 15 October 2013, an additional report has been developed for insurers to identify those workers where their permanent impairment assessment is 5% or less.

RELATIONSHIPS

Q-COMP continued to work closely with the individual self-insurers and their association. In the reporting period this was demonstrated by:

� 32 visits to self-insured employers by the Insurer Services team

� meeting quarterly with the ASIEQ Executive

� attending and presenting at the quarterly ASIEQ member forums.

REDUCING RED TAPE

The benefits of the red tape reduction initiatives undertaken last year were experienced by approximately half of the self-insurers in July to October as they applied to have their self-insurance licences renewed.

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INNOVATIONCHALLENGE WHAT IS, RESEARCH WHAT COULD BE, DELIVER SOLUTIONS

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WORKING WITH OUR STAKEHOLDERS 13/14 AT A GLANCE

OBJECTIVE: Continue to develop the Regional network program responding to stakeholder needs.

OUTCOMES: 37 Regional network program forums across seven new locations throughout Queensland. 1,359 attendees with 98% positive feedback from all forums.

WORKING WITH OUR STAKEHOLDERS

THE REGIONAL NETWORK PROGRAM

2013 saw the continued development of the Regional network program (RNP) with 37 forums delivered during 1 July 2013 to 29 October 2013, educating 1,359 stakeholders including rehabilitation and return to work coordinators (RRTWC), employers, allied health professionals and general practitioners. Our 10 Regional Representatives, who are established health professionals in their local areas, worked closely with the Education Promotion team to deliver these educational forums to stakeholders, ensuring the forums were delivered in an engaging and consistent manner across Queensland. The period saw us take our educational forums to seven new areas in regional Queensland including Moranbah, Bowen, Charters Towers, Gympie, Emerald, Kingaroy and Roma.

The 1,359 attendees benefitted from a range of topics including ‘Anatomy of the shoulder and how to effectively return injured workers back to work’ and ‘Chronic pain management’. Utilising not only the Regional Representatives, but also the experienced Q-COMP staff to present at forums allowed reduction of the operational budget despite reaching a greater audience. Feedback continued to indicate that over 98% of all attendees felt the forums were delivered to an excellent standard.

LEGISLATIVE CHANGES AFFECTING EMPLOYERS, RRTWCS AND REGISTERED TRAINING ORGANISATIONS

At the beginning of October 2013, there were approximately 9,000 RRTWC registered through Q-COMP. Legislative amendment to remove section 99A of the Workers’ Compensation and Rehabilitation Regulation 2003 removed the need for RRTWC in Queensland to be accredited. The RRTWC function is able to be performed by a worker with the qualifications, experience or standing appropriate to perform the role. Another change has been

the removal of the requirement for certain employers to have accredited Workplace Policy and Procedures on workplace injuries. These changes will reduce the red tape for employers.

RESEARCH

Q-COMP continued to support research through the scholarship program. The research recipient provided a summary report in October 2013 highlighting that all milestones had been achieved. The research supports the effectiveness of early onsite triage services for musculoskeletal workplace injuries in a meat processing plant.

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GOVERNANCE

GOVERNANCE 13/14 AT A GLANCE

OBJECTIVE: To continuously improve governance practice and support management and the Board to review and develop strategic objectives in line with the Queensland government’s priorities for the community.

OUTCOMES: The Board adopted a rigorous approach to commencing a comprehensive strategic planning process for the organisation.

WORKERS’ COMPENSATION AND REHABILITATION AND OTHER LEGISLATION AMENDMENT ACT 2013

The Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013 (the Amendment Act) provided for the abolishment of the Q-COMP Board on commencement of relevant provisions on 29 October 2013, however also provided for the continuation of the current Board to the end of its original term of appointment on 30 June 2014. The Board continues to perform its full functions and powers as delegated by the Workers’ Compensation Regulator.

Since the introduction of the Amendment Act, the Q-COMP Board has monitored the progress of arrangements for the transition of Q-COMP staff and regulatory functions into the Department of Justice and Attorney-General, and has regularly reported to the Attorney-General and Minister for Justice.

PERFORMANCE MANAGEMENT FRAMEWORK

During July to October 2013, Q-COMP continued to implement a performance management framework that established clear linkages between identifying stakeholders’ needs and expectations, planning key strategies and actions, measuring and monitoring performance and reporting on results to ensure delivery of value and outcomes for stakeholders.

SETTING THE STRATEGIC VISION

Q-COMP’s strategic planning process reflected the Board’s and leadership team’s strategic vision. The process provided an opportunity to review performance against targets and outcomes to guide future decision-making.

The Q-COMP Board and leadership team convened a preliminary strategic planning session on 6 September 2013, with a view to renewing Q-COMP’s four-year strategic plan. The session was developed in accordance

with three main themes:

� building capacity and capability

� ensuring efficient and cost-effective compliance

� meeting stakeholders’ needs.

Key information considered by the Q-COMP Board and leadership team included:

� comprehensive review and analysis of Q-COMP’s regulatory functions and operational performance

� performance against the 2011-15 strategic plan

� detailed consideration of the Queensland Public Sector renewal framework

� Q-COMP costs structure, environmental scan and SWOT analysis.

The Q-COMP Board and leadership team identified a number of priorities for further development including:

� being responsive to Government priorities emerging from the inquiry into the operation of Queensland’s workers’ compensation scheme

� exploring opportunities for cooperative and collaborative partnerships with scheme participants to remove duplication and enhance service delivery

� analysing delivery and resourcing of regulatory functions to ensure efficient and cost-effective regulation that maximised benefits to the scheme

� harnessing data analysis and research to identify potential improvements to the scheme.

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GOVERNANCE (CONT’D)

EFFECTIVE GOVERNANCE AND COMPLIANCE

By guiding and supporting planning and performance management activities and effective and efficient management and control of financial and other resources, the governance framework reinforced accountability and transparency to ensure delivery of results for stakeholders.

Q-COMP’s operations were bound by the provisions of the Workers’ Compensation and Rehabilitation Act 2003 (the pre-amended Act), the Financial Accountability Act 2009, the Statutory Bodies Financial Arrangements Act 1982 and other relevant legislation and government standards relating to statutory authorities.

The governance framework ensured a thorough and effective format for:

� compliance with relevant legislation and government standards and guidelines

� establishing clear roles, responsibilities and powers of the Board, Audit and Risk Management Committee and the leadership team through relevant charters and appropriate delegation of authority

� documenting, communicating and implementing clear and concise policies and procedures for effective internal controls and compliance

� ensuring rational, accountable and transparent decision-making by complying with processes for managing actual and potential conflicts of interest, and relevant codes of conduct and standards of ethical professional behaviour

� implementing thorough risk management and internal audit programs to reinforce strategic and operational objectives and quality service delivery

� concise and accurate performance reporting to the leadership team, Board and Attorney-General and Minister for Justice

� reinforcing a commitment to continuous improvement.

REPORTING REQUIREMENTS

During July to October 2013, two quarterly reports were prepared for the Attorney-General and Minister for Justice on organisational functions and operations, progress in achieving strategic and operational goals, performance against predetermined targets, and scheme performance, including scheme-wide trends and issues. This information was also reported at each Board meeting.

Membership of the Board as at 1 July 2013 was as follows:

� Flavia Gobbo – Chairperson

� Peter Dowling – Deputy Chairperson

� Paul Goldsbrough

� David Harrison

� Stephen Tait

� Dr Beres Wenck.

FUNCTIONS PERFORMED PROFESSIONALLY

The Board’s role under the pre-amended Act was to govern Q-COMP to fulfill its function to regulate the Queensland workers’ compensation scheme fairly and equitably. The Board decided objectives, strategies and policies and ensured proper, effective and efficient performance of legislative functions and achievement of objectives. The Board was accountable to keep the Minister informed about Q-COMP’s performance.

The Board was guided by a formal charter that outlined its roles and responsibilities, including:

� deciding objectives, strategies and high level policies for Q-COMP to follow when fulfilling its functions under the pre-amended Act. These objectives and strategies were embodied in Q-COMP’s strategic, operational and business plans

� monitoring and reviewing performance against objectives in line with Q-COMP’s strategic plan and regulatory functions

� ensuring appropriate policies and procedures were in place, were effectively communicated to stakeholders and employees and were regularly reviewed

� delegating certain Board oversight functions to the Audit and Risk Management Committee

� delegating authority for operational functions to the Chief Executive Officer (CEO)

� reporting to the Attorney-General and Minister for Justice on Q-COMP’s performance and activities.

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Strategic planning and set performance

measures

Deliver services and strategic actions

Monitor and review performance

Report on performance

Identify stakeholder needs and expectations

STAKEHOLDER VALUE AND OUTCOMES

FINANCIAL AND PERFORMANCE MANAGEMENT AND GOVERNANCE


REMAINING ACCOUNTABLE

The CEO managed day-to-day operations and was supported by the Q-COMP Leadership Team in overseeing organisational functions. The CEO and Chairperson met regularly to discuss emerging and strategic issues. The relationship between the Board and the CEO ensured that the Board was kept informed of our operations, and decisions and directives of the Board were disseminated and actioned. At each meeting, the Board was presented with a range of reports, including a finance report, CEO report outlining operational activities, and quarterly overviews of key statistical trends and emerging issues within the scheme.

POWERS OF DELEGATION

The Q-COMP Board and the CEO were able to delegate certain powers to appropriately qualified employees under sections 339 and 358 of the pre-amended Act.

Q-COMP maintained a Legislative delegations manual and a Financial Administration and Human Resources manual. The Legislative delegations manual outlined delegations relating to the pre-amended Act and other relevant legislation relating to Q-COMP’s functions as a statutory authority. The Financial Administration and Human Resources manual specified financial and human resource-related delegations consistent with other applicable legislation.

ATTENDANCE AT BOARD AND COMMITTEE MEETINGS

Two Board meetings and one Audit and Risk Management Committee meeting were held between 1 July and 29 October 2013. Chairperson and director remuneration was paid in accordance with whole-of-Government procedures for the remuneration of part-time chairs and members of Government Boards, committees and statutory authorities.

BOARD (A) AUDIT AND RISK MANAGEMENT COMMITTEE (B)

Flavia Gobbo 2 (Chairperson) 1

Peter Dowling 1 1 (Chairperson)

Paul Goldsbrough (c) 1

David Harrison 2 1

Stephen Tait 2

Beres Wenck (Dr) 1

A - TWO BOARD MEETINGS WERE HELD IN 13/14B - ONE AUDIT AND RISK MANAGEMENT COMMITTEE MEETING WAS HELD IN 13/14C - PAUL GOLDSBROUGH RESIGNED FROM THE Q-COMP BOARD ON 21 OCTOBER 2013

8 ATTENDANCE AT BOARD/COMMITTEE MEETINGS

An additional Board meeting was convened on 14 October 2013. At this meeting, the Board passed resolutions relating to the operational management and governance of Q-COMP required as a result of the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013.

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KEY ACHIEVEMENTS

Commensurate with its role to set the organisation’s strategic direction and monitor performance against objectives, between 1 July and 29 October 2013 the Board considered, determined or noted the relevant matters below. Following legislative amendment, the Board maintains its functions and powers to ensure an orderly transition to the new scheme structure.

STRATEGIC PLANNING AND PERFORMANCE MEASUREMENT

The Board:

� endorsed Q-COMP’s 12/13 annual report including the annual statistics publication

� reviewed outcomes of 12/13 activities in comparison with Q-COMP’s 2011-15 strategic plan and operational plan

� commenced the process to review and update Q-COMP’s strategic plan.

RESPONSIBLE FINANCIAL MANAGEMENT

The Board:

� endorsed the 12/13 annual financial statements

� noted the satisfactory external audit report for 12/13.

EFFECTIVE AND ACCOUNTABLE DECISION-MAKING AND OVERSIGHT

The Board:

� reviewed and approved funding arrangements relating to the workers’ compensation information services grants for 13/14

� monitored and provided input into initial transition arrangements for the merger of Q-COMP’s regulatory funcitons into the Department of Justice and Attorney-General.

PERFORMANCE MONITORING AND REPORTING

The Board:

� monitored Q-COMP’s performance of its core regulatory functions against its performance targets (CEO report)

� monitored the CEO’s performance.

INSURER MANAGEMENT AND REPORTING

The Board:

� reviewed draft guidelines for determining self-insurance licence applications requiring consideration of special circumstances in accordance with legislative amendments

� reviewed draft guidelines for managing fraud referrals made by self-insurers

� approved the renewal of two self-insurer licences

� monitored insurer performance and compliance.

MONITORING SCHEME STABILITY

The Board:

� monitored workers’ compensation scheme claims performance including emerging trends and key issues within the scheme.

GOVERNANCE AND OPERATIONAL PERFORMANCE

The Board:

� considered the results of a self-assessment and management feedback relating to its performance

� reviewed Q-COMP’s organisation-wide risk register and risk management program

� evaluated the CEO’s performance and approved key performance indicators.

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AUDIT AND RISK MANAGEMENT COMMITTEE - STANDING COMMITTEE

During July to October 2013, the Board maintained an Audit and Risk Management Committee, consisting of Chairperson, Mr Peter Dowling, and members, Ms Flavia Gobbo and Mr David Harrison.

The Committee’s key duty was to provide reasonable assurance to the Board that Q-COMP’s core business goals and objectives were being achieved in an efficient and economical manner, within an appropriate framework of internal control and risk management.

The Committee operated in accordance with its own charter, which was developed with reference to Queensland Treasury audit committee guidelines, and which outlined the committee’s delegated authority, role and responsibilities and interaction with the Board, executive management and internal and external audit.

The Committee met once during July to October 2013 to consider, determine or note relevant matters including:

� the risk register summary report

� internal audit findings and updates on implementation of audit recommendations by executive management

� the internal audit annual plan for 13/14

� annual financial statements for 12/13

� external audit findings for 12/13 presented by the Queensland Audit Office external audit contractor Pitcher Partners

� results of the Committee’s self-assessment.

RISK MANAGEMENT

Q-COMP was committed to maintaining an organisational philosophy and culture that ensured effective business risk management, to support the achievement of corporate objectives and strategic direction. The risk management program included financial, legal, compliance, operational, political, social, work health and safety, reputation, client and cultural aspects.

Risk management was supported by an online database system (Risk Shield). Risks were analysed with reference to the probability of an event occurring and its impact on Q-COMP’s regulatory obligations. Risks were reviewed on an ongoing basis and reported to the Committee quarterly.

Q-COMP’s risk management program followed the key principles and guidelines including the AS/NZS ISO

31000:2009 – Risk management, Queensland Treasury Guidelines – Strategic risk management and the Financial and Performance Management Standard 2009. The program ensured there was a process for identifying, assessing and prioritising risks. The leadership team integrated risk identification and awareness into everyday business operations.

INTERNAL AUDIT - SUPPORTING INTERNAL COMPLIANCE

The Corporate Administration Agency (CAA) provided an internal auditor who operated under an internal audit charter developed in line with Queensland Treasury audit committee guidelines. The internal auditor provided independent and professional advice to the Board and leadership team by examining and evaluating the adequacy, effectiveness and efficiency of internal control systems. The internal auditor also provided analysis, appraisals and recommendations on the operations reviewed, reporting directly to the Audit and Risk Management Committee on matters arising from internal audits.

EXTERNAL AUDIT

Q-COMP was audited by the Queensland Audit Office (QAO) in accordance with the Auditor-General Act 2009 and other applicable legislation. The QAO outsourced the external audit of Q-COMP’s operations to Pitcher Partners for a three-year period that commenced in 11/12. Representatives from Pitcher Partners reported to the Audit and Risk Management Committee in August 2013 on the external audit findings for 12/13 and an unqualified audit report was provided.

The Audit and Risk Management Committee also extended an invitation for QAO representatives to attend meetings where external audit matters were discussed.

STRENGTHENING GOVERNANCE THROUGH THE CODE OF CONDUCT

The Board adopted a directors’ Code of conduct, incorporating principles prescribed by the Public Sector Ethics Act 1994. Each director and leadership team member submitted a declaration of personal interests which was maintained to identify potential conflicts of interest. The declaration of any real or potential conflict of interest with any agenda matter was a standing item at board meetings. As part of the transition of regulatory functions to the Department of Justice and Attorney-General from 29 October 2013, the Board’s charter and code of conduct were reviewed and updated and endorsed by the Board at its November meeting

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Q-COMP adopted and promoted the Queensland public service code of conduct, based on the ethics principles contained within the Public Sector Ethics Act 1994. By upholding this code, Q-COMP aimed to embody the highest ethical standards and deliver services with integrity and accountability while promoting the public good.

INFORMATION PRIVACY

Q-COMP managed personal information according to the information privacy principles within the Information Privacy Act 2009 (IPA). Individuals also had the right to access and amend documents held by Q-COMP which contain their personal information, and were able to lodge a privacy complaint in relation to how their personal information was managed. The Legal Services team was responsible for managing requests to access and amend personal information, and privacy complaints.

INFORMATION RELEASE

Q-COMP ensured a consistent approach to the release of documents that may be accessed through a number of legislative systems.

Subject to certain limitations, section 572 of the Workers’ Compensation and Rehabilitation Act 2003 (the Act) provides administrative access for workers and claimants to request copies of relevant documents within 20 business days, and without charge.

Section 573(3A) of the Act additionally provided insurers with access to information held by Q-COMP which is relevant to a claim against an insurer. The insurer’s access is provided free of charge and is subject to limitations in the IPA.

The Right to Information Act 2009 (RTI) gives a right of access to information in the possession or under the control of the government unless it is contrary to the public interest to give the access, or the information is exempt from release. Access and processing charges may apply, although certain administrative charges may be waived in some instances. Applicants have certain internal and external review rights in respect of a decision on an RTI application. Internal reviews were conducted by a Q-COMP staff member of a grade equal or senior to the original decision-maker, and external reviews were conducted by the Office of the Information Commissioner, an independent external review authority.

Under the Evidence Act 1977, a party to a civil proceeding may obtain access to documents held by Q-COMP that were relevant to an issue in that proceeding. Fees applied and were charged in accordance with the Evidence Regulation 2007.

Q-COMP was also obliged to release information in accordance with subpoenas and summons to produce received under the Uniform Civil Procedure Rules 1999 or Justices Act 1886. Q-COMP was obliged to comply with a subpoena or summons unless irrelevant, oppressive, relating to documents protected by legal professional privilege or non-compliant.

RECORDS MANAGEMENT

During July to October 2013, Q-COMP continued to make advances to maintain compliance with record keeping standards. These improvements included:

� implementing a digitisation project to reduce reliance on paper records and enhance record keeping compliance capacity, with improved management of record metadata, search capacity and retention management

� updating the Business Classification Scheme and migrating records into a more business-focused record library arrangement to allow clearer record storage methodology and improved record metadata.

Development of an updated Record Retention and Destruction Schedule also commenced, to enhance alignment with business needs and Queensland State Archive requirements in line with Information Standard 31.


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9 REQUESTS FOR INJURY PROFILES

Number

Type 13/14 12/13 11/12 10/11 09/10

Worker 6 25 47 105 61

Workers’ legal representatives and insurers

2,410 23,537 23,477 17,257 14,587

Total 2,416 23,562 23,524 17,362 14,648

MANAGING FEEDBACK

Q-COMP coordinated responses to all workers’ compensation issues, either complaints or praise received from the Minister’s office or made directly to Q-COMP.

Q-COMP’s complaints management procedure was developed in accordance with the Public Service Commission Directive 13/06 – Complaints Management Systems and in conjunction with the Office of the Queensland Ombudsman.

During the period July to October 2013, 79 complaints were received. This total, in comparison with 33,196 new workers’ compensation claims in the four-month period,

with 1,151 disputed claims, indicates that Q-COMP, WorkCover Queensland and self-insurers serviced their customers well during the period. Of the 79 complaints received, 54 were Ministerial issues and 25 non-ministerial complaint issues.

COMPLAINTS

As at 29 October 2013, WorkCover Queensland was the respondent to 70.9% of complaints, Q-COMP was the respondent to a further 17.7%, and a self-insurer was the respondent to the remaining 11.4%. The relative share of complaints between WorkCover Queensland, Q-COMP and self-insurers reflected the relative size of each organisation in the scheme, and the nature of their roles.

REQUESTS FOR INJURY PROFILES

Q-COMP processed requests from workers and authorised third parties for injury profiles (the history of a workers’ compensation claim). Effective from 1 April 2005, an amendment to the Act made it an offence for an employer to obtain and use a workers’ compensation document for a purpose relating to the employment of a worker,

unless the document is necessary to secure the worker’s rehabilitation or early return to work. Q-COMP procedures ensured the appropriate release of injury profiles in accordance with the Act.

In 12/13, a system was created to enable external parties to have direct access to injury profiles, creating efficiencies for lawyers, insurers and Q-COMP.

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FINANCIAL OVERVIEW

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Q-COMP’S FINANCIAL OVERVIEW For the period ending 29 October 2013

TABLE 1 | RELATIONSHIPS BETWEEN THE FOUR FINANCIAL STATEMENTSOct 2013

$’000

INCOME STATEMENT

Revenue 13,146

Less: expenses 12,933

Operating result: Profit/(loss) 213

STATEMENT OF CHANGES IN EQUITY

Opening balance of equity 6,599

Add: operating result 213

Closing balance of equity 6,812

CASH FLOW STATEMENT

Operating activities 26,132

Investing activities (80)

Net increase in cash held 26,052

Cash at beginning of year 9,198

Cash at end of year 35,250

BALANCE SHEET

Assets (Including cash of $35.3M) 36,844

Liabilities 30,032

Net assets 6,812

Retained earnings 5,118

Contributed equity 1,694

Total equity 6,812

The financial overview illustrates key aspects of Q-COMP’s financial performance for the four months ending 29 October 2013. Its purpose is to

assist Q-COMP readers to understand and interpret the details of the financial statements.

Outcome

�� As at the period ending 29 October 2013 net assets were $6.8M which consisted $5.1M of retained earnings and $1.7M of contributed

equity. This is 3.2% up from 2012-13 ($6.6M).

�� Levy income for the period was $12.4M; and

�� Grants expenditure for the period was $3.2M.

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TABLE 2 | PERFORMANCE SUMMARY FOR THE PERIOD ENDED OCTOBER 2013

Oct 2013 2012/13 Increase /

(Decrease)

$’000

Increase /

(Decrease)

%$’000 $’000

INCOME STATEMENT

Levies and other revenue

WorkCover Queensland levy 9,415 23,667 (14,252) (60.2)

Self-insurer levy 3,014 8,225 (5,211) (63.4)

Investment earnings 403 1,025 (622) (60.8)

Other revenue 314 340 (26) (7.7)

Levies and other revenue 13,146 33,257 (20,111) (60.5)

Expenses

Scheme expenses 3,157 9,059 5,902 (65.1)

Employee expenses 4,609 12,016 7,407 (61.6)

Supplies and services 3,592 10,567 6,975 (66.0)

Depreciation 143 424 281 (66.3)

Other 1,432 3,794 2,362 (62.3)

Expenditure 12,933 35,860 22,927 61.8

Operating result 213 (2,603) 2,816 108.2

BALANCE SHEET

Total assets 36,844 10,793 26,051 241.4

Total liabilities 30,032 4,194 25,838 616.1

Total equity 6,812 6,599 213 3.2

40

REVENUE COMPOSITION

Figure 1 provides a breakdown of Q-COMP revenue for the current period ending 29 October 2013 and the previous four years. Q-COMP’s

primary source of income is the self-insurer levy and WorkCover Queensland (WCQ) contribution.

FIGURE 1 | REVENUE COMPOSITION ($’000)

* The revenue from WCQ dropped in 2011-12 due to a government decision that WCQ pays their proportion of the Workplace Health and

Safety Grant directly to Workplace Health and Safety Queensland (WHSQ). Interest is earned from the WCQ contribution and self-insurer

levies. Other revenue is made up of sponsorships and registrations for Q-COMP’s annual return to work conferences and awards program.

Q-COMP returned accumulated surpluses to WCQ and the self-insurers by reducing the 2012-13 levy contributions. The total of the amount

contributions were reduced by were $3,370,394 for the financial year. This resulted in a budgeted deficit of $3,260,046. The reader should

consider that due to a change of legislation and Machinery of Government, revenue is for the four months to October 2013.

Workcover Queensland* Self insurer levies Interest earnings Other Revenue

2010

2011

2012

2013

Oct 2013

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

41

EXPENSE COMPOSITION

Figure 2 provides a breakdown of Q-COMP expenses for the four months ending 29 October 2013 and the previous four years. This is broken

down into Q-COMP scheme expenses (figure 3) and operating expenses (figure 4).

FIGURE 2 | EXPENSE COMPOSITION ($’000)

SCHEME EXPENSES COMPOSITION

Figure 3 provides a breakdown of Q-COMP scheme expenses for the four months to October 2013 and the previous four years.

FIGURE 3 | SCHEME EXPENSES COMPOSITION ($’000)

The WHSQ Grant is considered a scheme expense. The changed arrangement for the collection of these funds explains the significant

reduction in 2011/12 and 2012/13.2.

* The reduction to the WHSQ Grant in 2011-12, as a result of WCQ paying the grant directly to WHSQ is the primary driver to the significant

decrease in Q-COMP’s scheme expenses. Q-COMP continues to pay the self-insurers contribution to the WHSQ Grant on behalf of the self-

insurers.

Q-COMP expenses Scheme expenses

2010

2011

2012

2013

Oct 2013

0

10,000

20,000

30,000

40,000

50,000

2010

2011

2012

2013

Oct 2013

Workplace Health & Safety*

0

10,000

20,000

30,000

40,000

50,000

Queensland Ambulance Service Other Scheme Expenses

42

OPERATING EXPENSES COMPOSITION

Figure 4 provides a breakdown of Q-COMP operating expenses for the past five years. This includes employee expenses, supplies and services,

depreciation and other expenses.

FIGURE 4 | OPERATING EXPENSES COMPOSITION ($’000)

OPERATING RESULT (FIVE-YEAR COMPARISON)

Figure 5 shows the comparison between Q-COMP actual and budgeted operating results for the period ending October 2013 and the previous

four years.

FIGURE 5 | OPERATING RESULT ($’000)

2010

2011

2012

2013

Oct 2013

Employee expenses

0

3,000

6,000

9,000

12,000

15,000

Supplies and services OtherDepreciation

Actual

Budget

2010

-3,500

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

2011 2012 2013

Oct 2013

43

REVENUE

Where our money comes from

Q-COMP was a self-funded statutory authority responsible for overseeing the Queensland Workers’ Compensation Scheme. Q-COMP did not

receive any funding from the Queensland Government’s consolidated revenue. Q-COMP was primarily funded by a contribution from WorkCover

Queensland and a levy from self-insurers.

FIGURE 6 | WHERE OUR MONEY CAME FROM

EXPENSES

How we spend our money

Q-COMP sought to maximise value for Queensland workers and employers.

The key drivers of Q-COMP operating expenditure were based on the changing requirements of Q-COMP customers, these are:

� Two applications for renewal of self-insurance licences were considered and one new application was received.

� Review referrals for the period ending 29 October 2013 were 1,154.

� 118 appeals were served in the four months ending 29 October 2013, there were 402 appeals served for the previous year 2012-13. There was a significant increased workload as the Queensland Industrial Relations Commission attempts to clear the backlog.

� Referrals to the Medical Assessment Tribunals were 1,133 for the period ending October 2013.

� 300 injured workers referred to Return to work assist successfully returned to work fpr the period ending 29 October 2013. This represents a 78.3% return to work rate, for those who participated in the program. 58 of these return to work outcomes were for injured workers with an open common law claim.

Q-COMP operating expenditure for the four months to October 2013 was $9.8M. During this period Q-COMP focussed on reducing red tape to

achieve efficiencies and reduce expenditure.

Scheme Expenses

For the period ended 29 October 2013 Q-COMP paid out $3.2M in grants including $1.9M (exclusive of GST) to Workplace Health and Safety

Queensland for injury prevention programs. A grant was paid to Queensland Ambulance Service of $1.2M for services provided to injured workers

in for the period ending October 2013. An advisory services grant was also paid to Queensland Council of Unions totalling $112K (See Note 7 for

details).

Income from levies charged to self-insurers remained in-line with the prior year levies. Of the $3.0M recognised from the self-insurer levies,

$1.9M was paid directly to Workplace Health and Safety Queensland via a grant that Q-COMP was directed to pay to the Department of Justice

and Attorney-General for injury prevention activities.

72%

23%

3% 2%

WorkCover Queensland

Self-insurer levies

Interest earnings

Other revenue

44

ASSETS

What we own

Q-COMP leases premises at 347 Ann Street Brisbane and does not have significant investment in fixed assets. Q-COMP’s major asset is cash.

The cash balance is high, due to the fact WorkCover Queensland and self-insurers pay levies to cover whole year up front. This revenue is treated

as unearned and recognised each period. The remainder of this cash will be transferred to the Department of Justice and Attorney-General. It will

fund the expenses of the scheme for the period of November 2013 to June 2014.

FIGURE 8 | WHAT WE OWN ($’000)

FIGURE 7 | HOW WE SPENT OUR MONEY

Scheme expenses

Employee expenses

Supplies and services

Depreciation, amoritsation & impairment

Other

24%

36%

28%

1%

11%

Property & equipment

Other current assets

Recievables

Cash

2010

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

2011 2012 2013 Oct 2013

45

LIABILITIES

What we owe

As at 29 October 2013 Q-COMP liabilities totalled $29.0M and primarily represented by unearned revenue from the WorkCover Queensland and

self-insurer levy.

FIGURE 9 | WHAT WE OWE ($’000)

EQUITY

What we are worth = Assets less Liabilities

Our equity comprises

�� Retained surpluses $5.1M

�� Contributed equity $1.7M

Total Equity is $6.8M.

GOING CONCERN

Q-COMP is no longer considered a going concern as at 29 October 2013. Whilst Q-COMP is not a going concern, the functions and services are

expected to continue to operate as normal into the foreseeable future as the Workers’ Compensation Regulator within the Department of Justice

and Attorney-General. The values of assets and liabilities reported in these financial statements represent their carrying amounts immediately

prior to the machinery-of-Government change taking effect. These represent the values of the assets and liabilities transferred to and recognised

by the State through the Department of Justice and Attorney-General.

Provisions

Unearned revenue

Lease incentives

Accrued employee benefits

Payables

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2010 2011 2012 2013 Oct 2013

46

TABLE 3 | TREND Oct 2013 2013 2012 2011 2010

$’000 $’000 $’000 $’000 $’000

Operating result 213 (2,603) (75) 96 (173)

Levy income 3,014 8,225 8,254 7,659 7,918

Workcover Queensland contribution 9,415 23,667 25,318 62,254 57,825

Interest income 403 1,025 1,371 2,227 1,631

Scheme expenses 3,157 9059 8,746 47,169 45,315

Q-COMP operating expenses 9,776 26,801 26,686 25,288 22,718

Employee expenses 4,609 12,016 12,346 11,565 10,298

Supplies and services 3,592 10,567 10,217 9,566 8,270

Q-COMP operating expenses as % of scheme and Q-COMP expenses 75.59% 74.74% 75.32% 34.90% 33.39%

Training & Development as % of salary costs 1% 1% 1.7% 2.0% 3.4%

TABLE 4 | RATIOOct 2013 2013 2012 2011 2010

% % % % %

Ratio formula Description

Working Capital ratio

Current Assets/ Current Liabilities

Measures Q-COMP’s ability to meet current commitments

1.2 3.2 4.5 5.1 6.0

Labour ratioEmployee Expenses/ Q-COMP Operating Expenses

Measures Q-COMP’s utilisation of staff

47.1 44.8 46.3 45.7 45.3

Net worth movement ratio

Total EquityMeasures the growth in net assets within Q-COMP

1.03 0.72 0.99 1.01 0.95

The financial statements have been prepared by our Finance Team to meet requirements of Section 62 of the Financial Accountability Act 2009

and Australian Accounting Standards.

47

FINANCIAL STATEMENTS

TABLE OF CONTENTS

ANNUAL FINANCIAL STATEMENTS

PURPOSE AND SCOPE OF THE FINANCIAL STATEMENTS ................................................... 48

STATEMENT OF COMPREHENSIVE INCOME ........................................................................... 49

STATEMENT OF FINANCIAL POSITION...................................................................................... 50

STATEMENT OF CHANGES IN EQUITY ...................................................................................... 51

STATEMENT OF CASH FLOWS .................................................................................................... 52

CERTIFICATE OF THE WORKERS’ COMPENSATION REGULATORY AUTHORITY (TRADING AS Q-COMP) .............................................................................................................. 76

INDEPENDENT AUDITOR’S REPORT .......................................................................................... 77

NOTES TO THE FINANCIAL STATEMENTS .......................................................................................

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ...................................... 53

NOTE 2 CORRECTION OF ERROR ........................................................................................... 59

NOTE 3 REVENUE FROM FINANCIAL ASSETS ..................................................................... 60

NOTE 4 OTHER REVENUE ..................................................................................................... 60xc

NOTE 5 EMPLOYEE EXPENSES ................................................................................................ 60

NOTE 6 SUPPLIES AND SERVICES .......................................................................................... 61

NOTE 7 SCHEME EXPENSES .................................................................................................... 61

NOTE 8 DEPRECIATION ............................................................................................................. 62

NOTE 9 OTHER EXPENSES........................................................................................................ 62

NOTE 10 CASH AND CASH EQUIVALENTS ............................................................................. 62

NOTE 11 RECEIVABLES ................................................................................................................ 63

NOTE 12 OTHER CURRENT ASSETS ......................................................................................... 63

NOTE 13 PROPERTY, PLANT AND EQUIPMENT ................................................................... 64

NOTE 14 PAYABLES ....................................................................................................................... 64

NOTE 15 ACCRUED EMPLOYEE BENEFITS ............................................................................. 65

NOTE 16 PROVISIONS .................................................................................................................. 65

NOTE 17 OTHER LIABILITIES ...................................................................................................... 65

NOTE 18 RESERVES ...................................................................................................................... 66

NOTE 19 RECONCILIATION OF OPERATING SURPLUS/(DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES ........................................ 66

NOTE 20 COMMITMENTS FOR EXPENDITURE ..................................................................... 67

NOTE 21 FINANCIAL INSTRUMENTS........................................................................................ 68

NOTE 22 CONTINGENT LIABILITIES ......................................................................................... 72

NOTE 23 SELF-INSURER LICENSING ........................................................................................ 72

NOTE 24 KEY EXECUTIVE MANAGEMENT PERSONNEL AND REMUNERATION .......... 73

48

PURPOSE AND SCOPE OF THE FINANCIAL STATEMENTS

These financial statements cover The Workers’ Compensation Regulatory Authority trading as Q-COMP.

Q-COMP was established as a Statutory Authority on 1 July 2003 under The Workers’ Compensation and Rehabilitation Act 2003 (“the

Act”) and abolished under the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013 (“the Amendment

Act”) on 29 October 2013. The Workers’ Compensation Regulatory Authority trading as Q-COMP has been replaced by the Workers’

Compensation Regulator as part of the Department of Justice and Attorney-General.

Q-COMP’s principal place of business was situated at:

347 Ann Street BRISBANE QLD 4000

Under Section 330 of the pre-amended Act, Q-COMP’s primary function was to regulate the workers’ compensation scheme.

In enforcing this Act as the regulator, Q-COMP’s functions included:

� monitoring the compliance and performance of insurers;

� deciding applications to self-insure;

� undertaking the review of decisions and managing appeals;

� supporting and overseeing the efficient administration of medical assessment tribunals;

� undertaking workplace rehabilitation accreditation and compliance activities;

� providing rehabilitation advisory services;

� maintaining a database for scheme-wide reporting;

� administration of grants;

� promoting education about the workers’ compensation scheme; and

� collection of levies.

These final financial statements have been prepared by Q-COMP to meet the requirements of Section 62 of the Financial Accountability

Act 2009 and Australian Accounting Standards. The Queensland Treasury and Trade’s model of financial statements are used to assist

with standardised financial reporting.

49

STATEMENT OF COMPREHENSIVE INCOMEFor the 4 months ended 29 October 2013 and 12 months ended June 2013

Oct 2013

June 2013

(restated)*

Note $’000 $’000

INCOME FROM CONTINUING OPERATIONS

Revenue

WorkCover Queensland levy 9,415 23,667

Self-insurer levy 3,014 8,225

Revenue from financial assets 3 403 1,025

Other revenue 4 314 340

Total income from continuing operations 13,146 33,257

EXPENSES FROM CONTINUING OPERATIONS

Employee expenses 2,5 4,609 12,016

Supplies and services 6 3,592 10,567

Scheme expenses 7 3,157 9,059

Depreciation 8 143 424

Other expenses 9 1,432 3,794

Total expenses from continuing operations 12,933 35,860

Operating result from continuing operations 213 (2,603)

Other comprehensive income - -

Total comprehensive income/(loss) 213 (2,603)

The accompanying notes form part of these statements

*Refer to note 2 regarding the restatement as a result of an error

50

Oct 2013 June 2013

(restated)*

Note $’000 $’000

CURRENT ASSETS

Cash and cash equivalents 10 35,250 9,198

Receivables 11 296 272

Other current assets 12 369 331

Total current assets 35,915 9,801

NON-CURRENT ASSETS

Property, plant and equipment 13 929 992

Total non-current assets 929 992

Total assets 36,844 10,793

CURRENT LIABILITIES

Payables 14 2,195 956

Accrued employee benefits 2,15 1,862 1,933

Other 17 24,931 218

Total current liabilities 28,988 3,107

NON-CURRENT LIABILITIES

Accrued employee benefits 2,15 474 481

Provisions 16 426 426

Other 17 144 180

Total non-current liabilities 1,044 1,087

Total liabilities 30,032 4,194

Net assets 6,812 6,599

EQUITY

Contributed equity 1,694 1,694

Retained surpluses 5,118 4,905

Reserves 18 - -

Total equity 6,812 6,599



STATEMENT OF FINANCIAL POSITIONAs at 29 October 2013

51

Retained surpluses

Contributed equity Reserves Total

Note $’000 $’000 $’000 $’000

Balance as at 1 July 2012 2,302 1,694 5,206 9,202

Operating result from continuing operations (2,603) - - (2,603)

Other comprehensive income - - - -

Transfer between general reserves 18 5,206 - (5,206) -

Balance as at 30 June 2013 * restated 4,905 1,694 - 6,599

Balance as at 1 July 2013 4,905 1,694 - 6,599

Operating result from continuing operations 213 - - 213

Other comprehensive income - - - -

Transfer between general reserves 18 - - - -

Balance as at 29 October 2013 5,118 1,694 - 6,812



STATEMENT OF CHANGES IN EQUITYFor the 4 months ended 29 October 2013 and 12 months ended June 2013

52

Oct 2013 June 2013

Note $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Inflows

Insurer receipts 37,246 31,892

Interest 403 1,025

Sundry income received 157 399

GST collected from customer 2,832 2,443

GST input tax credits from ATO 596 2,412

41,234 38,171

Outflows

Employee expenses (4,612) (11,799)

Supplies and services (3,853) (15,111)

Scheme expenses (3,225) (8,989)

GST paid to suppliers (784) (2,384)

GST remitted to ATO (2,628) (2,439)

(15,102) (40,722)

Net cash flows from operating activities 19 26,132 (2,551)

CASH FLOWS FROM INVESTING ACTIVITIES

Outflows

Payments for property, plant and equipment (80) -

Net cash flows from investing activities (80) -

Net increase/decrease in cash and cash equivalents 26,052 (2,551)

Cash and cash equivalents at beginning of financial period 9,198 11,749

Cash and cash equivalents at end of financial year 10 35,250 9,198


STATEMENT OF CASH FLOWS For the 4 months ended 29 October 2013 and 12 months ended June 2013

53

NOTE 1 Summary of significant accounting policies

Final Financial Statements for Q-COMP

(a) Basis of accounting

Q-COMP was abolished under the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013 on 29 October 2013.

The Workers’ Compensation Regulatory Authority trading as Q-COMP has been replaced by the Workers’ Compensation Regulator as part of the

Department of Justice and Attorney-General. The State is the successor in law of Q-COMP and all assets and liabilities of the former Authority

immediately before the commencement of the Amendment Act s107 (684, 685) become assets and liabilities of the State as part of the

Machinery-of-Government (MoG) change.

The reporting period covered by these final financial statements is 1 July 2013 to 29 October 2013. The prior period presented in these final

financial statements reflect the full 2012-13 financial year transactions and balances.

Q-COMP was primarily funded from levies it receives from WorkCover Queensland and other licensed self-insurers.

The financial statements have been prepared in accordance with Section 48 of the Financial and Performance Management Standard 2009.

The final financial statements are general purpose financial statements and cover Q-COMP as an individual entity.

The general purpose financial statements, which have been prepared on the accrual basis, comply with all accounting standards and interpretations

issued by the Australian Accounting Standards Board (AASB) that are relevant to Q-COMP’s operations and effective for the current reporting

period. In addition the financial statements comply with the Treasurer’s minimum reporting requirements for the period ended 29 October 2013

and other authoritative pronouncements.

In accordance with the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013, Q-COMP was abolished on 29

October 2013. As a result of this Machinery-of-Government change, Q-COMP is no longer considered a going concern. Whilst Q-COMP is no

longer a going concern, these final financial statements have been prepared consistent with the going concern basis as functions and services are

expected to continue to operate as normal into the foreseeable future as the Workers’ Compensation Regulator within the Department of Justice

and Attorney-General. The values of assets and liabilities reported in these financial statements represent their carrying amounts immediately

prior to the Machinery-of-Government change taking effect. These represent the values of the assets and liabilities transferred to and recognised

by the State through the Department of Justice and Attorney-General.

Except where specifically stated, the financial statements have been prepared under the historical cost convention.

(b) Rounding and comparatives

Amounts included in the financial statements are in Australian dollars and 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. Comparative information has been restated where necessary to

be consistent with disclosures in the current reporting period.

The reporting period covered by these final financial statements is 1 July 2013 to 29 October 2013. The prior period presented in these final

financial statements reflects the full 2012-13 financial year transactions and balances.

(c) Revenue recognition

Income from insurers is recognised as unearned income when insurer levy invoices are raised and are not recognised as revenue until the time the

services are provided. At 29 October 2013 $12,408,817 of insurer income is recognised as revenue and there is $24,817,631 of unearned

revenue.

Interest is recognised as revenue when earned. Other revenues are recognised at the time of service delivery or sale.

(d) Cash and cash equivalents

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 29 October as well as deposits at call with financial institutions.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 29 OCTOBER 2013

54

NOTE 1 Summary of significant accounting policies (continued)

(e) ReceivablesTrade debtors are recognised at the time of sale or service delivery. Settlement of insurer accounts is required within 31 days from invoice date.

With other invoices settlement is generally required within 28 days from the invoice date, no interest is charged and no security is obtained.

The collectability of receivables is assessed periodically with provision being made for impairment. All known bad debts were written off as at 29

October. Increases/decreases in the allowance for impairment are based on loss events as discussed in Note 21(c).

(f) Acquisition of assetsActual cost is used for the initial recording of all non-current physical and intangible 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. Training fees are

expensed as incurred.

Where assets are received free of charge from another Queensland Government entity the acquisition cost is recognised as the 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 an involuntary transfer from another Queensland Government entity, are

recognised at their fair value at the date of acquisition in accordance with AASB 116 Property, Plant and Equipment.

(g) Property, plant and equipmentItems 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:

Plant and Equipment $5,000

Work-in-progress $1

Items with a lesser value are expensed in the year of acquisition; all assets are measured at cost.

(h) IntangiblesIntangible assets with a cost or other value greater than $100,000 are recognised in the financial statements, items with a lesser value are

expensed. Each intangible asset is amortised over its useful life to Q-COMP, less any anticipated residual value.

It has been determined that there is not an active market for any of Q-COMP intangible assets. As such, the assets are recognised and carried at

cost less accumulated amortisation and accumulated impairment losses.

Internally generated software

Expenditure on research activities relating to internally generated intangible assets is recognised as an expense in the period in which it is incurred.

Costs associated with the development of QCS (computer software internally developed) were capitalised at a cost of $1,137,000 and have

been amortised on a straight-line basis over its estimated useful life to Q-COMP. The system has since been written down to zero value but was

still used in the provision of services.

(i) Amortisation and depreciation of intangibles and property, plant and equipmentAll intangible assets of Q-COMP have finite useful lives and are amortised on a straight-line basis.

Property, plant and equipment is depreciated on a straight-line basis so as to write off the values of each depreciable asset, less its estimated

residual value, progressively over its estimated useful life to Q-COMP. Depreciation rates are reviewed annually to ensure the carrying amounts

reflect the remaining useful lives of the respective assets.

Assets under construction (work-in-progress) are not depreciated until they reach service delivery capacity. Service delivery capacity relates to

when construction is complete and the asset is first put to use or is installed ready for use in accordance with its intended application. These assets

are then reclassified to the relevant classes within property, plant and equipment.


55

NOTE 1Summary of significant accounting policies (continued)

(i) Amortisation and depreciation of intangibles and property, plant and equipment (continued)

The depreciation and amortisation rates for each class of depreciable asset are as follows:

Class Rate %

Plant and equipment Motor vehicles 33.3%

Computer equipment 10 to 33.3%

Leasehold improvements 10 to 20%

Other equipment 10 to 20%

Intangible assets Software internally generated 10 to 20%

(j) Impairment of non-current assets

All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment

exists, Q-COMP 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 reserve 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.

(k) Leases

Operating lease payments for motor vehicles held by Q-COMP are representative of the pattern or benefits derived from the leased assets and

are expensed in the periods in which they are incurred.

Operating lease payments for buildings held by Q-COMP are recognised as an expense in the income statement on a straight-line basis over the

lease term.

Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and

reduction of the liability.

(l) Payables

Trade creditors are recognised for amounts payable in the future upon receipt of the goods or services ordered, whether or not billed to Q-COMP

and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured, not subject

to interest charges and are normally settled within 30 days of invoice receipt.

(m) Financial instruments

Recognition

Financial assets and liabilities are recognised in the Statement of Financial Position when Q-COMP is party to the contractual provisions of the

financial instrument.


56

NOTE 1 Summary of significant accounting policies (continued)

(m) Financial instruments (continued)Classification

Financial instruments are classified and measured as follows:

- Cash and cash equivalents – held at fair value through profit and loss

- Receivables – held at amortised cost

- Payables – held at amortised cost

Q-COMP does not enter into transactions for speculative purposes or for hedging. Apart from cash and cash equivalents, Q-COMP holds no

financial assets at fair value through profit and loss.

All disclosures relating to the measurement basis and financial risk management of financial instruments held by Q-COMP are included in Note 21.

(n) Employee benefitsEmployer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits.

Payroll tax and workers’ compensation insurance are a consequence of employment, 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 and recreation leave

Wages, salaries and recreation leave due and unpaid at reporting date are recognised in the Statement of Financial Position at the remuneration

rates expected to apply at the time of payment.

For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values.

For those entitlements not expected to be paid within 12 months, the liabilities are recognised at their present values, calculated using yields on

fixed rate Commonwealth Government bonds of similar maturity. Where there is an unconditional right to defer settlement beyond 12 months,

amounts are disclosed as non-current liabilities.

Recognition of liability – former WorkCover employees

Under the Workers’ Compensation and Rehabilitation Act 2003 a person who immediately before 30 June 2003 was employed in the Q-COMP

Division of WorkCover Queensland became an employee of Q-COMP and ceased being an employee of WorkCover Queensland. Q-COMP

assumed the long service leave and annual leave entitlements from 1 July 2003 with each entitlement being paid to Q-COMP as part of the

Machinery-of-Government changes. These entitlements are calculated as if service with WorkCover Queensland were continuous service.

Long service leave

Long service leave entitlements payable are assessed at balance date having regard to current employee remuneration rates, employment related

on-costs and other factors including accumulated years of employment, future remuneration levels, and Q-COMP’s past experience of employee

departure per year of service.

Entitlements for employees who have completed seven years or more continuous service are recorded as a current liability in the Statement of

Financial Position. Long service leave expected to be paid later than one year has been measured at the present value of the estimated future

cash outflows to be made for these entitlements accrued to balance date. Commonwealth bond rates are used for discounting future cash flows.

Where there is an unconditional right to defer settlement beyond 12 months, amounts are disclosed as non-current liabilities.

Sick leave

Sick leave entitlements are non-vesting and are only paid upon valid claims for sick leave by employees. Sick leave expense is accounted for in the

reporting period in which the leave is taken by the employee.


57


(n) Employee benefits (continued)

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue

in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave

entitlement is recognised.

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 Q-COMP

obligation is limited to its contribution to QSuper.

Executive Remuneration

Key executive management personnel and remuneration disclosures are made in accordance with section 5 of the Financial Reporting

Requirements for Queensland Government Agencies issued by Queensland Treasury. Refer to Note 24 for the disclosures on key executive

management personnel and remuneration.

(o) Unearned revenue

All income received in advance of the supply of services are brought to account in the year in which the services are provided.

(p) Provisions

Provisions are recorded when Q-COMP 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. Where the settlement of the obligation is expected

after 12 or more months, the obligation is discounted at the present value using the pre-tax discount rate. The amounts recognised as provisions

in relation to the dismantling and removal of assets and the restoration of land on which the assets have been located, have been included in the

cost of the assets.

(q) Insurance

Q-COMP’s non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on a

risk assessment basis. In addition, Q-COMP pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.

(r) 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 are adjusted to ‘Contributed equity’ in accordance with Interpretation 1038 Contribution by owners made to wholly-owned

public sector entities. Appropriations for equity adjustments are similarly designated.

Prior to 1 July 2003, Q-COMP was a part of WorkCover Queensland. Subsequent to 1 July 2003 when Q-COMP became an independent

statutory body, the transfer of assets at no cost from WorkCover Queensland was treated as a Machinery of Government change.

(s) Self-insurer licensing

Q-COMP holds bank guarantees in favour of WorkCover Queensland on behalf of self-insurers as a condition of self-insurer licensing.

Under Section 84 of the Workers’ Compensation and Rehabilitation Act 2003, a self-insurer must lodge an unconditional bank guarantee in favour

of WorkCover Queensland or a cash deposit with Q-COMP before the issue or renewal of a licence. The security will be held by Q-COMP until

such time as it is required to be held under the Act or paid out in relation to a debt or claim against the self-insurer from WorkCover Queensland.

Q-COMP may invest a cash deposit in an authorised investment. Interest earned on the deposit must be paid to the self-insurer at the end of

each financial year. Q-COMP may deduct from the interest the reasonable costs of administering the investment.

As Q-COMP acts only in a custodial role in respect of these transactions and balances, they are not recognised in the financial statements, but are

disclosed in Note 23.


58


(t) Taxation

Q-COMP was a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation except for Fringe

Benefit Tax and Goods and Services Tax (“GST”). GST credits receivable from / payable to the ATO are recognised and accrued (refer Note 11).

(u) Issuance of financial statements

The financial statements are authorised for issue by the Deputy Chairman and Chief Executive Officer as at the date of signing the management

certificate.

(v) Judgements and assumptions

The preparation of financial statements requires the determination and use of certain critical accounting estimates, assumptions and management

judgement that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Long service leave:

In determining the provision for long-service leave Q-COMP is required to make estimates pertaining to the probability of employees reaching

long-service leave maturity, the expected timing of long-service leave payments, the expected rate of pay prevailing at the time of those

payments, and the rate at which expected future payments are discounted to their present value as at balance date.

Make-good provision:

Under the terms of the property lease agreement described in Note 20, Q-COMP is obliged to restore the office to its original state on expiry of

the lease. The present value of the estimated cost of performing these works is recognised as a liability as disclose in Note 16. This estimate is

based upon current rates of restoration per square metre prevailing within the market for similar properties

Q-COMP has made no other judgements or assessments which may cause a material adjustment to the carrying amounts of assets and liabilities

within the next reporting period.

(w) New and revised accounting standards

Q-COMP is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval

is obtained from the Treasury Department. Consequently, Q-COMP has not applied any Australian Accounting Standards and interpretations

that have been issued but are not yet effective.

As these represent the final financial statements of Q-COMP no assessment of the likely future impact on initial application of accounting

standards and interpretations which have been issued but which are not yet effective has been made. The following accounting standards are

effective for the first time in the preparation of these financial statements:

� AASB 10: Consolidated Financial Statements

� AASB 11: Joint Arrangements

� AASB 12: Disclosure of Interests in Other Entities

� AASB 13: Fair Value Measurement

� AASB 119: Employee Benefits (Revised)

The adoption of these new standards from 1 July 2013 has not had a material impact on Q-COMP’s financial statements.


59

NOTE 2Correction of error

During the 2012-13 year management undertook the practice of valuing the long-service leave provision previously outsourced to the state

actuary. This calculation was undertaken in-house based upon probabilities derived from 10 years of historical employment data. Subsequent to

finalisation of the 2012-13 annual financial statements, a clerical error was identified within these calculations, whereby the calculation of the years

of service for each employee was incorrect.

As a consequence of this error the current LSL provision was understated and non-current LSL provision was overstated in the 2012-13 statement

of financial position, with a net understatement of employee benefits expenditure in the statement of comprehensive income.

This error has been corrected in these financial statements by restating the affected financial statement line items in the comparative financial

statements as follows:

Increase /

(Decrease)

2013

(restated)2013

Statement of Financial Position (extract) $’000 $’000 $’000

Accrued employee benefits - current LSL provision (Note 15) 1,250 683 1,933

Accrued emplyee benefits - non current LSL provision (Note 15) 892 (411) 481

Net Assets 6,871 (272) 6,599

Statement of Comprehensive Income (extract)

Employee expenses 11,744 272 12,016

Total comprehensive income (deficit) (2,331) (272) (2,603)


60

4 Months

Oct 2013

12 Months

June 2013

$’000 $’000

NOTE 3Revenue from financial assets

Bank Interest 403 1,025

403 1,025

NOTE 4Other revenue

Sundry revenue 314 340

314 340

NOTE 5Employee expenses

Employee Benefits

Wages and salaries 3,890 9,860

* Employer superannuation contributions 362 1,081

* Long service leave 65 288

4,317 11,229

Employee Related Expenses

* Workers’ compensation 13 39

* Payroll tax and fringe benefits 182 549

Staff training and development 46 67

Other staff costs 51 132

292 787

Total 4,609 12,016

* See Note 1(n)

The number of employees as at 29 October 2013, including both full-time employees and part-time employees measured on a full-time

equivalent basis was:

Number of employees 102 100


61

4 Months

Oct 2013

12 Months

June 2013

$’000 $’000

NOTE 6Supplies and services

*Contractors' fees 2,491 7,720

Other supplies and services 368 803

Rent and associated cost 493 1,286

Travel expenses - other 81 207

**Corporate services charges paid to CAA 50 162

Travel expenses - Solicitors/Barristers/Doctors 49 122

Professional fees 3 105

Printing costs 33 96

Postal charges 12 56

Bank fees and charges 12 10

3,592 10,567

* The main component of contractors’ fees were payments made to doctors appointed to the medical assessment tribunals by Governor in Council.

** Q-COMP had a service level agreement with the Corporate Administration Agency (CAA) to undertake a number of finance functions and payroll services.

NOTE 7Scheme expenses

*1 Workplace Health and Safety grant 1,858 5,286

*2 Queensland Ambulance Services 1,237 3,484

*3 Advisory services grants 131 220

*4 Ministerial Liaison Officer sponsorship (69) 69

3,157 9,059

Scheme expenses were collected by Q-COMP through insurer levies and contributions under the workers’ compensation scheme and then passed

on to the various agencies.

*1. The Attorney-General and Minister for Justice instructed Q-COMP (pursuant to s479 of the Workers’ Compensation and Rehabilitation Act

2003) on 17 May 2013 to contribute $6,130,080 (including GST) in 2013-14 to the Department of Justice and Attorney-General for the

prevention of injury to workers. As at 29 October 2013 $1,857,600 had been paid to the Department of Justice and Attorney-General.

*2. Payments for discharging liability for pre-hospital patient care and ambulance transfer service for injured workers within the Queensland

workers’ compensation scheme.

*3. Q-COMP paid various advisory services grants under information services funding agreements. Payments during 2013-14 (excluding GST)

included:

Queensland Council of Unions 113 220

The Australian Workers' Union of Employees, QLD - -

Australian Business Lawyers & Advisors 18 *

The Australian Industry Group - *

131 220

*4. The Ministerial Liaison Officer sponsorship was accrued in 2012-13 year. Through subsequent MoG changes, the amount owing for 2012-

13 will not be raised and as such the accrual was reversed.


62

4 Months

Oct 2013

12 Months

June 2013

$’000 $’000

NOTE 8Depreciation

Plant and equipment 143 424

143 424

NOTE 9Other expenses

Legal fees 1,161 3,049

* External auditors remuneration 38 42

Computer services provided by CITEC 86 311

Software licence fees & other computer charges 143 380

Insurance premiums - QGIF 4 12

1,432 3,794

* Total external audit fees relating to the period ended 29 October 2013 are estimated to be $38,000 (excluding GST) (2012-13 $42,000

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

NOTE 10Cash and cash equivalents

Cash at bank and on hand 304 155

Short-term deposits 34,946 9,043

35,250 9,198

The effective interest rates on Q-COMP’s bank account and short term deposits at 29 October 2013 range between 2.70% - 3.44%

(2013: 2.70% - 4.71%).


63

4 Months

Oct 2013

12 Months

June 2012

$’000 $’000

NOTE 11Receivables

Trade debtors 161 99

Less: Allowance for impairment (70) (42)

91 57

GST receivable 196 214

196 214

Other receivable 9 1

Total 296 272

Movements in allowance of provision for impairment

Balance at beginning of the year (42) (23)

(Increase) / decrease in allowance recognised in operating result (28) (19)

Balance at the end of the year (70) (42)

NOTE 12Other current assets

Prepayments 369 331

369 331


64

4 Months

Oct 2013

12 Months

June 2013

$’000 $’000

NOTE 13Property, plant and equipment

Plant and equipment

At cost 3,289 3,208

Less: accumulated depreciation (2,360) (2,216)

929 992

Total property, plant and equipment 929 992

Property, plant and equipment reconciliation

Plant and equipment

Oct 2013 June 2013

$’000 $’000

Carrying amount at 1 July 992 1,392

Additions 80 24

Disposals - -

Transfer between classes - -

Depreciation (143) (424)

Carrying amount at 30 June 929 992

Q-COMP had plant and equipment with an original cost of $364,617 and a written down value of zero still used in the provision of services.

NOTE 14Payables

Trade creditors 1,445 680

Accrued expenses 643 215

Other 107 61

2,195 956


65

4 Months

Oct 2013

12 Months

June 2013

$’000 $’000

NOTE 15Accrued employee benefits

Current

Recreation leave 782 823

Long service leave 943 1,044

Outstanding salaries & wages 135 61

Other employee benefits 2 5

1,862 1,933

Non-current

Long service leave 474 481

474 481

NOTE 16Provisions

Non-current

Restoration costs 426 426

426 426

Movements in provision

Restoration costs

Balance at beginning of the year 426 402

Additional provision recognised - 24

Balance at end of the year 426 426

Q-COMP had an obligation under its lease for 347 Ann Street Brisbane to restore the office to its original state. The estimate of the cost has been

provided by Q-COMP's Property Advisors.

NOTE 17Other liabilities

Current

Unearned revenue 24,823 121

Lease incentives 108 97

24.931 218

Non-Current

Lease incentives 144 180

144 180


66

4 Months

Oct 2013

12 months

June 2013

$’000 $’000

NOTE 18Reserves

Research & Education Fund Reserve - -

Special Purpose Fund Reserve - -

- -

Movements in reserves

Research & Education Fund Reserve

Balance at beginning of the year - 3,332

Transfer from retained surpluses - (3,332)

Balance at end of the year - -

Movements in reserves

Special Purpose Fund Reserve

Balance at beginning of the year - 1,874

Transfer from retained surpluses - (1,874)

Balance at end of the year - -

On 1 July 2012, Q-COMP made the decision to transfer the balance of the Research & Education Fund and the Special Purpose Fund into retained

earnings consistent with the Government framework (APG 15) issued in March 2013 which outlines the view that the recognition of general

reserves to demonstrate an internal allocation of funds does not provide useful information to users of financial statements.

Q-COMP continued the functions of promoting education about the workers’ compensation scheme as prescribed under Section 330(2)(j) of the

Act and return to work programs for workers under Section 364 of the Act as part of Q-COMP’s operational activities.

NOTE 19Reconciliation of operating surplus /(deficit) to net cash flow from operating activities

Operating surplus / (deficit) 213 (2,603)

Adjustment for non-cash items

Depreciation 143 424

Changes in assets & liabilities

(Increase)/Decrease in receivables (24) 60

(Increase)/Decrease in other current assets (38) 44

Increase/(Decrease) in payables 1,239 (664)

(Decrease)/Increase in accrued employee benefits (78) 220

Increase/(Decrease) in other liabilities 24,677 (32)

Net cash flow from operating activities 26,132 (2,551)


67

4 Months

Oct 2013

12 Months

June 2013

$’000 $’000

NOTE 20Commitments for expenditure

(a) Operating lease commitments

As at 29 October 2013 Q-COMP had the following non-cancellable operating lease commitments exclusive of GST, contracted for at

reporting date but not recognised in the accounts as payable:

Within one year 1,023 941

One to five years 1,014 1,292

Later than five years - -

Total 2, 037 2,233

A new lease for ten years for premises in Ann Street, Brisbane commenced on 1 November 2005, this lease has two further 5 year extension

options.

Operating lease commitments above include 2 motor vehicle operating leases, each with a term of 3 years. Expiry dates for these leases were

September 2014 and January 2015.

(b) Capital commitments

As at 29 October 2013 Q-COMP had no capital commitments.

(c) Grant commitments

As at 29 October 2013 Q-COMP had the following grant commitments exclusive of GST, committed to at reporting date but not recognised

in the accounts as payable:

Within one year 18 137

One to five years 9 -

Total 27 137


68

4 Months

Oct 2013

12 Months

June 2013

$’000 $’000

NOTE 21Financial instruments

(a) Categorisation

Q-COMP has the following categories of financial assets and financial liabilities.

Category Note

Financial assets

Cash and cash equivalents 10 35,250 9,198


Total 35,546 9,470

Financial liabilities

Financial liabilities measured at amortised cost:

Payables 14 2,195 956

Total 2,195 956

(b) Financial risk management

Q-COMP’s activities exposed it to a variety of financial risks - interest rate risk, credit risk, liquidity risk and market risk.

Financial risk management is implemented pursuant to Q-COMP and Government policy. These policies focus on the unpredictability of financial

markets and seek to minimise potential adverse effects on the financial performance of Q-COMP.

All financial risk is managed by the Finance Division under policies approved by Q-COMP. Q-COMP provides written principles for overall risk

management, as well as policies covering specific areas.

Q-COMP measure risk exposure using a variety of methods:

Risk Exposure Measurement Method

Credit risk Ageing analysis

Liquidity risk Sensitivity analysis

Market risk Interest rate sensitivity analysis


69

NOTE 21 Financial instruments (continued)

(c) Credit risk exposure

Credit risk exposure refers to the situation where Q-COMP may incur financial loss as a result of another party to a financial instrument failing to

discharge their obligation.

The maximum exposure to credit risk at balance date in relation to each class of financial assets is the gross carrying amount of those assets inclusive

of any provision for impairment.

The following table represents Q-COMP’s maximum exposure to credit risk based on contractual amounts net of any allowances:

4 Months

Oct 2013

12 Months

June 2013

Category Notes $’000 $’000

Financial Assets

Cash and Cash Equivalents 10 35,250 9,198


Total 35,546 9,470

No collateral is held as security and no credit enhancements relate to financial assets held by Q-COMP.

Q-COMP manages credit risk through the use of a credit management strategy. This strategy aims to reduce the exposure to credit default by

ensuring that Q-COMP invests in secure assets and monitors all funds owned on a timely basis. Exposure to credit risk is monitored on an ongoing

basis.

No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position.

The method of calculating any provisional impairment for risk is based on past experience, current and expected future changes in economic

conditions and changes in client credit ratings. The main factors affecting the current calculation for provisions are disclosed below as loss events.

These economic and geographic changes form part of Q-COMP’s documented risk analysis assessments in conjunction with historic experience and

associated industry data.

The recognised impairment loss is $70,180 (2013: $42,446) for the current period.

No financial assets have 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 are disclosed in the following tables.


70


(c) Credit risk exposure (continued)

October 2013 financial assets not past due and past due but not impaired

Overdue

not past due less than 30 days

$’000

30-60 days

$’000

61-90 days

$’000

more than 90 days

$’000

Total

$’000

Financial assets

Receivables 205 - - 91 296

Total 205 - - 91 296

2013 financial assets not past due and past due but not impaired

Overdue


$’000

30-60 days

$’000

61-90 days

$’000

more than 90 days

$’000

Total

$’000

Financial assets

Receivables 215 - - 57 272

Total 215 - - 57 272

October 2013 impaired financial assets

Overdue


$’000

30-60 days

$’000

61-90 days

$’000

more than 90 days

$’000

Total

$’000

Financial assets

Receivables - - - 70 70

Total - - - 70 70

2013 impaired financial assets

Overdue


$’000

30-60 days

$’000

61-90 days

$’000

more than 90 days

$’000

Total

$’000

Financial assets

Receivables - - - 42 42

Total - - - 42 42


71


(d) Liquidity risk

Liquidity risk refers to the situation where Q-COMP may encounter difficulty in meeting obligations associated with financial liabilities that are

settled by delivering cash or another financial asset. Q-COMP is exposed to liquidity risk in respect of its payables.

Q-COMP manages liquidity risk through the use of a liquidity management strategy. The strategy aims to reduce the exposure to liquidity risk by

ensuring Q-COMP has sufficient funds available to meet employee and any supplier obligations as they fall due. This is achieved by ensuring that

minimum levels of cash are held within the various bank accounts to match the expected duration of the various employee and supplier liabilities.

All financial liabilities disclosed in the financial statements for the period ending 29 October 2013 are due within one year.

(e) Market risk

Q-COMP does not trade in foreign currency and is not materially exposed to commodity price changes. Q-COMP is exposed to interest rate risk

through cash deposited in interest bearing accounts. Q-COMP does not undertake hedging in relation to interest rate risk and manages its risk as

per the liquidity risk management strategy.

(f) 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 rate applicable to Q-COMP’s financial assets and liabilities. With all

other variables held constant, Q-COMP would have a surplus and equity increase / (decrease) of $353,000 (2012-13: $92,000). This is mainly

due to Q-COMP’s exposure to variable interest rates on deposits with Queensland Treasury Corporation and Commonwealth Banking Corporation.

Financial InstrumentCarrying

Amount

$’000

Oct 2013 Interest rate risk

- 1% + 1%

$’000 $’000

Profit Equity Profit Equity

Cash and cash equivalents 35,250 (353) (353) 353 353

Overall effect on profit and equity 35,250 (353) (353) 353 353

Financial InstrumentCarrying

Amount

$’000

2013 Interest rate risk

- 1% + 1%

$’000 $’000

Profit Equity Profit Equity

Cash and cash equivalents 9,198 (92) (92) 92 92

Overall effect on profit and equity 9,198 (92) (92) 92 92

(g) Fair value

Q-COMP does not recognise any financial assets or liabilities at fair value.

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

Held-to-maturity financial assets are measured at cost, as fair value cannot be reliably measured; therefore no fair value is disclosed.


72


(h) Capital management

The Board’s policy was to maintain reserves that ensure Q-COMP was able to meet future obligations and to perform its functions under the Act.

Policies in respect of capital management are governed by the Statutory Bodies Financial Arrangements Act 1982. As a result, funds are invested

in highly secure, interest-bearing assets. Investments are reviewed regularly with a view to achieving a balance of maximum rate of return while

maintaining adequate liquidity.

There was no change in the capital management policy for the year.

NOTE 22Contingent liabilities

At 29 October 2013 there were 22 reserved appeal decisions waiting to be handed down by the Queensland Industrial Relations Commission.

If the appeal is upheld in one or more cases costs could be awarded against the Workers’ Compensation Regulator. As there is no way to reliably

estimate the outcome of these cases or the quantum of costs, no provision has been made in these financial statements.

NOTE 23Self-insurer licensing

Q-COMP holds bank guarantees in favour of WorkCover on behalf of the self-insurers as a condition of self-insurer licensing. Q-COMP currently

holds a total of $588,343,770 in bank guarantees.

Under Section 84 of the Workers’ Compensation and Rehabilitation Act 2003, a self-insurer must lodge an unconditional bank guarantee in

favour of WorkCover or a cash deposit with Q-COMP before the issue or renewal of a licence. The security will be held by Q-COMP until such

time as it is required to be under the Act or paid out in relation to a debt or claim against the self-insurer from WorkCover Queensland.

Q-COMP may invest a cash deposit in an authorised investment. Interest earned on the deposit must be paid to the self-insurer at the end of

each financial year. Q-COMP may deduct from the interest the reasonable costs of administering the investment.

As Q-COMP performs only a custodial role in respect of these transactions and balances, they are not recognised in the financial statements, but

are disclosed in the notes for the information of users.


73

NOTE 24Key executive management personnel and remuneration

(a) Key executive management personnel and remuneration

The key executive management positions include those positions that had authority and responsibility for planning, directing and controlling the

activities of the agency during the period of 1 July 2013 to 29 October 2013. They are as follows:

Position Responsibilities

Board of Directors The Board of Directors is responsible for the operational and strategic direction of the authority.

Chief Executive Officer

The Chief Executive Officer is responsible for the efficient, effective and economic management

of Q-COMP.

The following persons held key executive management positions during the period ending 29 October 2013.

Name Position Current Incumbents

Contract appointment

authority

Appointment /

Resignation

Board of Directors

Ms Flavia Gobbo Director - Chairperson# Governor in Council^ 1 July 2012

Mr Peter Dowling Director - Deputy Chair# Governor in Council^ 1 July 2012

Mr Stephen Tait Director Governor in Council^ 1 July 2012

Dr Beres Wenck Director Governor in Council^ 1 July 2012

Mr David Harrison Director# Governor in Council^ 1 July 2012

Mr Paul Goldsbrough Director Governor in Council^

15 March 2013/

21 October 2013

Other Key Executive Management Personnel

Ms Elizabeth Woods Chief Executive Officer

Chief Executive Service

Contract; Governor in Council

26 May 2007/

15 October 2013

# Member of the Board’s Audit & Risk Management Committee.

^ The board are remunerated in accordance with the whole of Government policy Remuneration of Part-time Chairs and Members of

Government Boards, Committees and Statutory Authorities


74

NOTE 24Key executive management personnel and remuneration (continued)

(a) Key executive management personnel and remuneration (continued)

The key executive management personnel remuneration included in salaries are as follows:

1 July 2013 - 29 Oct 2013

Position Short term benefitLong-term

benefitsTermination

benefits

Post employment

benefits Total

Base $’000

Non-Monetary

$’000 $’000 $’000 $’000 $’000

Director – Chairperson 14 - - - 2 16

Director – Deputy Chair 1 - - - - 1

Director ** 2 - - - - 2

Director 1 - - - - 1

Director 1 - - - - 1

Director* - - - - - -

Chief Executive Officer*** 79 - 3 304 7 393

Total 98 - 3 304 9 414

* As a public servant no payment was paid or is payable to Mr Goldsbrough.

** Payment was waived by member in favour of payment to their respective employer organisation as a fee for service basis for the same

amount. Payments on this basis amount to $1,759 for the period ending 29 October 2013.

*** Leave provisions paid out on termination to the Chief Executive Officer amount to $81,362.

The following persons held key executive management positions during 2012-13:

Name Position Current Incumbents

Contract appointment

authority

Appointment /

Resignation

Board of Directors

Ms Flavia Gobbo Director - Chairperson# Governor in Council^ 1 July 2012

Mr Peter Dowling Director - Deputy Chair# Governor in Council^ 1 July 2012

Mr Stephen Tait Director Governor in Council^ 1 July 2012

Dr Beres Wenck Director Governor in Council^ 1 July 2012

Mr David Harrison Director# Governor in Council^ 1 July 2012

Dr Simon Blackwood Director Governor in Council^ 1 July 2012/14 March 2013

Mr Paul Goldsbrough Director Governor in Council^

15 March 2013/

21 October 2013

Other Key Executive Management Personnel

Ms Elizabeth Woods Chief Executive Officer

Chief Executive Service

Contract; Governor in Council

26 May 2007/

15 October 2013

# Member of the Board’s Audit & Risk Management Committee.

^ The board are remunerated in accordance with the whole of Government policy Remuneration of Part-time Chairs and Members of

Government Boards, Committees and Statutory Authorities


75

NOTE 24Key executive management personnel and remuneration (continued)

(a) Key executive management personnel and remuneration (continued)

The key executive management personnel remuneration included in salaries are as follows:

1 July 2012 - 30 June 2013

Position Short term benefitLong-term

benefits

Post employment

benefits Total

Base $’000

Non-Monetary

$’000 $’000 $’000 $’000

Director – Chairperson 42 - - 4 46

Director – Deputy Chair 8 - - - 8

Director** 4 - - - 4

Director 4 - - - 4

Director 5 - - - 5

Director* - - - - -

Director* - - - - -

Chief Executive Officer 285 - 5 24 314

Total 348 - 5 28 381

* As a public servant no payment was paid or is payable to Dr Blackwood or Mr Goldsbrough.

** Payment was waived by member in favour of payment to their respective employer organisation as a fee for service basis for the

same amount. Payments on this basis amount to $3,904 for the 2012-13 year.

Remuneration policy for the agency’s key executive management personnel is set in line with 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 other benefits including motor vehicles.

For period ending 29 October 2013, remuneration of key executive management personnel increased by 2.2% in accordance with government

policy.

�� Short term employee benefits which include:

• 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.

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

�� Long term employee benefits include long service leave accrued.

�� Post employment benefits include superannuation contributions.

�� Redundancy payments are not provided for within individual contracts of employment. Contracts of employment provide only for notice

periods or payment 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.

(b) Performance payments

Performance bonuses are not paid to key executive management personnel.

(c) Loans & Transactions

In the period ending 29 October 2013 and 30 June 2013, no directors held senior positions with peak bodies that received grants and other fees.

No loans were issued to key executive management personnel to the period ending 29 October 2013.


76

These general purpose financial statements have been prepared pursuant to the provisions of section 62(1) of the Financial Accountability Act 2009 (the Act), and other prescribed requirements. In accordance with Section 62(1) (b) of the Act we certify that in our opinion:

(a) the prescribed requirements for the establishment and keeping the accounts have been complied with in all material respects; and

(b) the statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of Q-COMP for the period ending 29 October 2013 and of the financial position of Q-COMP at the end of that period.

Simon Blackwood Flavia Gobbo Acting Chief Executive Officer Chairperson Date: 31 March 2014 Date: 31 March 2014

CERTIFICATE OF THE WORKERS’ COMPENSATION REGULATORY AUTHORITY (TRADING AS Q-COMP)

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REPORT ON THE FINANCIAL REPORT

I have audited the accompanying financial report of the former The Workers’ Compensation Regulatory Authority, which comprises the statement of financial position as at 29 October 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the final period 1 July 2013 to 29 October 2013, notes comprising a summary of significant accounting policies and other explanatory information, and certificates given by the former Chairperson and former Chief Executive Officer.

The Former Board’s Responsibility for the Financial Report

The Board is responsible for the preparation of the final financial report in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009. The former Board’s responsibility also includes such internal control as the former Board determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on the final financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the final financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the final financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the final financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the former Board, as well as evaluating the overall presentation of the final financial report including any mandatory financial reporting requirements approved by the Treasurer for application in Queensland.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

Independence

The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.

INDEPENDENT AUDITOR’S REPORTTO THE BOARD OF THE WORKERS’ COMPENSATION REGULATORY AUTHORITY (TRADING AS Q-COMP)

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Opinion

In accordance with s.40 of the Auditor-General Act 2009 –

(a) I have received all the information and explanations which I have required; and

(b) in my opinion –

(i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and

(ii) the final financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of the former The Workers’ Compensation Regulatory Authority for the final period 1 July 2013 to 29 October 2013 and of the financial position as at the end of that final period.

Emphasis of Matter - Abolishment of The Workers’ Compensation Regulatory Authority

Without modifying my opinion, attention is drawn to Note 1 in the final financial report which identifies that pursuant to the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013, the former The Workers’ Compensation Regulatory Authority was abolished on 29 October 2013. In accordance with the requirements of the Act, all assets and liabilities of the former statutory body as at the date of abolition were transferred to the Department of Justice and Attorney General immediately after the abolishment at the values reported in the statement of financial position. Accordingly this final financial report has been prepared on a basis that is consistent with a going concern basis.

OTHER MATTERS – ELECTRONIC PRESENTATION OF THE AUDITED FINANCIAL REPORT

Those viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.

M J Keane CA(as Delegate of the Auditor-General of Queensland)Queensland Audit OfficeBrisbane

INDEPENDENT AUDITOR’S REPORT (CONT’D)TO THE BOARD OF THE WORKERS’ COMPENSATION REGULATORY AUTHORITY (TRADING AS Q-COMP)

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APPENDICES

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APPENDIX 1 - SELF INSURER LICENCES

13/14 12/13 11/12 10/11 09/10

Continuing licences 23 19 25 13 11

Licences renewed

Four year duration 4 3 0 8 12

Two year duration 0 3 0 4 0

One year duration 0 0 0 0 0

Licences not renewed 0 0 0 0 0

New licence applications 1 0 0 0 2

Total licences as at 30 June 25 (29 Oct) 25 25 25 23

Licences cancelled (effective 1 July)

0 nil nil nil nil

Employers covered as at 30 June 262 263 259 256 240

10 SELF-INSURER LICENCES

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Accredited workplace – ‘a workplace that has workplace rehabilitation policies and procedures’ (section 45, The Workers’ Compensation and Rehabilitation Act 2003). Gaining accreditation formalises the process for rehabilitation in the workplace. This requires:

� a workplace rehabilitation policy and procedures approved by Q-COMP

� a registered rehabilitation and return to work coordinator in Queensland who is an employee or contracted to provide this service.

Admitted claims – the insurer allows the application for compensation and liability continues to be accepted by the insurer (this is considered to be an initial decision on the claim).

Adverse information – information that may impact on any party in the review. For example, information that supports a worker’s claim may affect the employer’s premium should the review decision overturn the insurer’s original decision to reject the claim. The information is therefore adverse to the employer.

Aggravation – an injury that occurs when a pre-existing injury, disease or medical condition is made worse and or symptomatic. An aggravation may be covered by workers’ compensation if the aggravation arises out of, or in the course of, employment and the employment is a significant contributing factor to the aggravation..

Allied health providers – examples include physiotherapists, occupational therapists, psychologists (see also Registered persons).

Appeals – workers or employers aggrieved by the outcome of a Q-COMP review can further appeal

to the Industrial Magistrate or the Queensland Industrial Relations Commission within 20 days of receiving Q-COMP’s decision. WorkCover Queensland can also appeal premium-related review decisions to the QIRC.

Appeals – interlocutory – these are questions of law raised by the Industrial Magistrate or Commissioner to the Industrial Court during a substantive appeal. Once the Industrial Court has decided the interlocutory appeal, this decision goes back to the Industrial Magistrate or Commissioner to continue with the original appeal hearing.

Approved form – forms approved under The Workers’ Compensation and Rehabilitation Act 2003 by Q-COMP’s Chief Executive Officer for regulatory purposes or WorkCover Queensland Chief Executive Officer for WorkCover Queensland insurance polices.

Cases determined (MAT) – all cases heard and determined by the MAT.

Claim – common name for an application for compensation.

Claim decisions – the decision made on the claim after the claim has been entered or intimated onto the insurer’s computer system. It refers to whether the insurer has accepted liability or rejected liability for the claim.

Claim file – held by an insurer and containing the application for compensation form, medical certificates, any documents provided by the claimant as well as other documents received or generated by the insurer when managing the claim.

Claimant – a ‘person who lodges an application for compensation’ (The Workers’ Compensation and Rehabilitation Act 2003).

Classification group employer – two or more employers with the same WorkCover Queensland industry classification that are in a pre-existing stable business relationship of at least two years. Examples of classification group employer licences issued by Q-COMP are local government authorities through Local Government WorkCare and the Aged Care Employers Self-Insurance Group (ACES).

Common law claim – made by an injured worker who commences common law action through the courts against their employer for negligence (they are ‘suing’ their employer). The courts award common law damages payments for economic loss, pain and suffering, legal costs, and medical and hospital costs.

Common law claim lodgements – all common law claims lodged with insurers, regardless of the outcome. If a common law claim is associated with more than one statutory claim, it will be counted for each statutory claim it is associated with (i.e. if one common law claim is associated with three statutory claims, the common law lodgement has been counted three times).

Common law claim payments – all common law payments made.

Compensation – amounts for a worker’s injury payable under The Workers’ Compensation and Rehabilitation Act 2003 – chapters 3 (weekly wages and permanent impairment payments) and 4 (medical and rehabilitation payments) – by an insurer to a worker, a dependant of a deceased worker or anyone else, and includes compensation paid or payable under a former Act.

Conceded – Q-COMP indicates to the parties to the appeal and the court that it will not be defending the

GLOSSARYLegislative definitions and references for the pre-amended Workers’ Compensation and Rehabilitation Act 2003

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review decision.

Confidentiality – rehabilitation information must be treated with sensitivity and confidentiality by all parties, section 110, the Regulation.

Confirmed – insurer’s decision is confirmed by the Review Unit.

Decided at court – appeals that have been dismissed, struck out or upheld at the Industrial Magistrates court and QRIC.

Defendant’s costs – costs incurred by the defendant.

Department of Justice and Attorney-General – matters of workers’ compensation policy and scheme design are centralised within this state government agency.

Disclosure of information – important information, including personal information, referred to others for their response. The disclosure could be to the worker, the insurer, the employer and any other person whose interests might be affected by the Q-COMP review decision.

Dismissed – after hearing evidence, the Magistrate has dismissed the appeal and confirmed Q-COMP’s review decision.

Doctor’s approval – approval of a worker’s treating doctor must be obtained and documented for a rehabilitation and return to work plan if the doctor does not give sufficient information in the doctor’s medical certificate or report on which to base the development of the plan. In addition, a suitable duties program and any amendments to the program must be consistent with the current medical certificate or report for the worker’s injury (the Regulation).

Early worker contact – early intervention is one of the key

principles of successful rehabilitation. The Regulation specifies that a worker who sustains an injury and who requires rehabilitation must be contacted about rehabilitation and return to work as soon as practicable after the injury is sustained or is reported.

Employees covered – under legislation, the type of workers covered by workers’ compensation varies. Between 1 July 1997 and 30 June 2000 a ‘worker’ was limited to PAYE taxpayers, before and after this period the definition of a worker included anybody working under a contract of service. From July 2013, a ‘worker’ is an individual who works under a contract and in relation to the work, is an employee for the purpose of assessment for PAYG withholding under the Taxation Administration Act 1953. Using ABS definitions, employees are always covered by workers’ compensation. ‘Own account workers’ are covered prior to 1 July 1997 and after 30 June 2000 and ‘employers’ and ‘contributing family members’ are not covered.

Employer – an employer employs a worker or workers in Queensland. The Workers’ Compensation and Rehabilitation Act 2003 (section 30) provides a full description of an employer under the Queensland workers’ compensation scheme.

Employer’s obligation for rehabilitation – under The Workers’ Compensation and Rehabilitation Act 2003, employers are obliged to participate in rehabilitation. This obligation includes offering suitable duties and graduated return to work programs as appropriate. These rehabilitation programs must be approved by the treating medical practitioner.

Fatal claims – all claims where an injury or disease caused the death of an injured worker, excluding cancelled

and rejected claims.

Finalised claims – it is considered that the liability has ended through the normal course of the claim (even if it is possible that a continuation may occur in the future), or that an insurer has terminated entitlements to compensation.

Guidelines for Evaluation of Permanent Impairment (GEPI) - based on a set of nationally agreed model guidelines developed by Safe Work Australia as a part of ongoing work to create a nationally consistent approach to assessing permanent impairment.

GMAT (Psych) – General Medical Assessment Tribunal – Psychiatric.

GMAT (Other) – General Medical Assessment Tribunals including the Medical, Vascular, Surgical, Urology, Gynaecology, Thoracic and Rheumatology specialties (excludes General Medical Assessment Tribunal – Psychiatric).

Heads of Workers’ Compensation Authorities (HWCA) – chief executives of the peak bodies responsible for regulating workers’ compensation in Australia and New Zealand.

Health report – a quarterly Q-COMP publication for allied health professionals.

High risk industries – certain industries have been specifically designated under schedule 5A of the Regulation as high risk industries for the purposes of employers’ obligations for rehabilitation. These include Agriculture, Forestry and Fishing, Mining, Manufacturing, Construction, Transport and Storage, Health and Community Services, Personal and other services – public order and safety services.

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Impairment – the Act describes impairment from injury as being ‘a loss of, or loss of efficient use of, any part of a worker’s body’. This includes psychological injuries.

Industry – all industry codes are based on the insurers’ coding of industry to the divisions from the ‘Australian and New Zealand Standard Industry Classification’ (ANZSIC), ABS.

Industrial deafness – ‘loss of hearing (other than total loss of hearing in either ear) caused by excessive noise’ (schedule 6, The Workers’ Compensation and Rehabilitation Act 2003).

Industrial instrument – an award or a workplace agreement that governs the conditions of a worker’s employment. The Workers’ Compensation and Rehabilitation Act 2003 describes an industrial instrument as any of the following under the Industrial Relations Act 1999:

� an award

� a certified agreement

� an industrial agreement

� an EFA

� a QWA

� an order under certain parts

� of that Act; or

� an award or agreement under the Workplace Relations Act 1996 (Cwlth).

Industrial Court – the last court of appeal of Q-COMP review decisions.

Injury – a ‘personal injury arising out of, or in the course of, employment if the employment is a significant contributing factor to the injury’, section 32, The Workers’ Compensation and Rehabilitation Act

2003. The Act also describes other situations or circumstances where an injury may or may not be covered within the Queensland workers’ compensation scheme.

Insurer performance management program (IPMP) – assists insurers to meet their obligations under the Act by measuring performance against key elements.

Insurer report – a quarterly Q-COMP publication for insurers.

Insurer risk profile – quarterly assessment by Q-COMP of individual insurers on performance and compliance, with a six-monthly update to the board.

Injury nature – all injury codes are based on the insurers’ coding of injury to the nature and location codes of the ‘Type of Occurrence Classification System’, Third Edition, National Occupational Health and Safety Commission (NOHSC). Where large numbers of injury nature classifications occurred (such as strain/sprain and open wound) they have been further broken down using the location of the injury.

Interlocutory appeals – these are questions of law raised by the Industrial Magistrate or Commissioner to the Industrial Court during a substantive appeal. Once the Industrial Court has decided the interlocutory appeal, this decision goes back to the Industrial Magistrate or Commissioner to continue with the original appeal hearing.

Intimations – all claims lodged with insurers, regardless of the outcome (i.e. includes cancelled and rejected claims).

Issues management database (within QCS) – captures complete and accurate data about issues raised by stakeholders about Q-COMP

and the scheme, and resolutions achieved. The data captured is reported to insurers (as part of the insurer performance monitoring framework), to the Q-COMP board and government.

Medical Assessment Tribunals Quarterly Report – a Q-COMP newsletter that updates tribunal members about important matters for running medical assessment tribunals.

Medical certificate (Q-COMP medical certificate) – an approved form completed by a worker’s treating medical practitioner or dentist (dental injuries) for the worker’s injury. The Workers’ Compensation and Rehabilitation Act 2003 states that an application for compensation must be accompanied by a certificate in the approved form from a doctor who attended the claimant.

Medical expense only claim – all claims which have had medical treatment and rehabilitation payments, excluding those that also had compensation, lump sum or fatality payments.

Medical treatment – The Workers’ Compensation and Rehabilitation Act 2003 describes medical treatment as being:

� treatment by a doctor, dentist, physiotherapist, occupational therapist, psychologist, chiropractor, osteopath, podiatrist or speech pathologist; or

� assessment for industrial deafness by an audiologist; or

� the provision of diagnostic procedures or skiagrams; or

� the provision of nursing, medicines, medical or surgical supplies, curative apparatus, crutches or other assistive devices.

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Mitigate loss – The Workers’ Compensation and Rehabilitation Act 2003 advises that the common law duty of mitigation of loss applies to the worker and that the worker’s duty may be discharged by participating in rehabilitation.

Normal weekly earnings – earnings of a worker from employment (continuous or intermittent) in the 12 months immediately before the day the worker sustained an injury.

Ongoing capacity for work – the insurer is asking whether the worker’s ongoing incapacity for work is related to the accepted work injury.

Permanent impairment – The Workers’ Compensation and Rehabilitation Act 2003 describes permanent impairment from injury as being ‘an impairment that is stable and stationary and not likely to improve with further medical or surgical treatment (section 38).

Personal representation (right of appearance) – an opportunity for applicants to provide the Review Officer with any additional information or point out particular issues or knowledge they have regarding their case. It is an informal meeting (either face-to-face or by telephone), conducted in a non-threatening and non-legal way. In face-to-face meetings, applicants can attend with their representatives, either legal or non-legal. They can also bring a relative or friend for support if they wish.

Plaintiff’s costs – costs incurred by the plaintiff.

Principles of workplace rehabilitation – that workplace rehabilitation be industry based; function oriented; involve early intervention, a multidisciplinary team approach and shared responsibility to ensure success.

Prior approval – commitment by the insurer to pay for the costs of the service when it is completed. Some services require prior approval from insurers before payment. The services requiring prior approval are set out in the relevant supplementary schedules.

Prudential risk factor – the risk that an entity such as a self-insurer will not be able to meet its financial obligations.

Q-COMP – Q-COMP’s primary function under The Workers’ Compensation and Rehabilitation Act 2003 is to regulate the workers’ compensation scheme. The Act sets out very clearly the specific functions and powers that enable Q-COMP to enforce the Act as the regulator.

Q-COMP Core System database (QCS) – maintains information about individuals, employers and insurers and their interaction with Q-COMP, e.g. injured workers attending medical assessment tribunals, employers or workers applying for a review, insurer licensing.

Queensland Industrial Relations Commission (QIRC) – the main body of the jurisdictions where appeals of Q-COMP review decisions are heard.

QOTE – The Workers’ Compensation and Rehabilitation Act 2003 describes QOTE for a financial year as being ‘the seasonally adjusted amount of Queensland full time adult persons ordinary time earnings as declared by the Australian Statistician in the statistician’s report about average weekly earnings published immediately before the start of the financial year’. QOTE is used in certain circumstances by insurers when calculating a person’s compensation payments.

Queensland Scheme-wide Analysis database (QSA) – maintains and manages all insurers’ claims data,

including basic claim information, payment information, details about the injured worker, compensation periods and common law information.

QWCDec – Q-COMP’s online database of Queensland Industrial Magistrates’ and Industrial Commissioners’ workers’ compensation statutory claims decisions.

Referral reasons – MAT – the specific questions which can be asked of a medical assessment tribunal are defined in The Workers’ Compensation and Rehabilitation Act 2003 as:

� ongoing capacity for work – the insurer is asking whether the worker’s ongoing incapacity for work is related to the accepted work injury

� permanent impairment (PI) assessment – the insurer is asking the tribunal to determine whether the worker has sustained a permanent impairment. Under the legislation for psychiatric or psychological injuries the MAT must determine the degree of PI

� disputed PI – this reference would be used if the worker does not agree with the permanent impairment which has been independently assessed by the insurer.

� access to damages – this is for instances where an application for statutory compensation has not been lodged and the insurer has not admitted that the worker sustained an injury. The worker is seeking common law damages

� application for compensation – this reference is used when a worker has made an application for compensation (liability has not been accepted for the injury for which the worker is claiming). The insurer is unable to determine

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liabilityfor the claim due to matters of a medical nature

� prescribed disfigurement – the insurer requests the tribunal to assess, by physical examination, whether the disfigurement is severe enough to be considered prescribed disfigurement

� other reasons for referral – includes level of dependency, further material deterioration, review panel etc.

Regional network program - A Q-COMP initiative designed to provide on the ground support for our regional stakeholders by appointing local representatives from across the state.

Registered person – the Act refers to registered persons as a doctor, dentist, physiotherapist, occupational therapist, psychologist, chiropractor, osteopath, podiatrist, speech pathologist, and audiologist. The professionals listed need to be registered by the relevant professional body to practice their profession in Queensland.

Regulation – the most recent version of the subordinate legislation governing workers’ compensation in Queensland. This subordinate legislation is titled Workers’ Compensation and Rehabilitation Regulation 2003 and is used in conjunction with The Workers’ Compensation and Rehabilitation Act 2003.

Rehabilitation – a strategy to maximise an individual’s potential for return to their pre-injury physical, psychological, educational and vocational level. Workplace rehabilitation focuses on returning the worker to safe, suitable work at the earliest possible time, ensuring valuable work skills are not lost, and minimising the human and financial costs of work injury.

Rehabilitation coordinator – former name given to the role of the rehabilitation and return to work coordinator.

Rehabilitation and return to work coordinator (RRTWC) – the employer’s rehabilitation and return to work coordinator is responsible for assisting in the return to work of injured workers and coordinating return to work activities at the workplace. Under The Workers’ Compensation and Rehabilitation Act 2003, an employer must have workplace rehabilitation policy and procedures and employ a rehabilitation and return to work coordinator under a contract (regardless of whether the contract is a contract of service) if:

a. the employer employs workers at a workplace in a high risk industry – the wages of the employer in Queensland for the preceding financial year were more than $2.146 million (this threshold wages amount is indexed annually); or

b. otherwise – the wages of the employer in Queensland for the preceding financial year were more than $7.049 million.

Rehabilitation and return to work plan – a written plan outlining the rehabilitation objectives and the steps required to achieve those objectives. The Regulation provides guidance regarding rehabilitation and return to work plans.

Rehabilitation provider – registered health professionals or providers otherwise approved by an insurer. Rehabilitation providers give active support to workers and employers to design and implement rehabilitation and return to work plans. Some examples of rehabilitation providers are occupational physicians, occupational therapists and physiotherapists.

Rejected claims – the application for compensation is rejected by the workers’ compensation insurer (WorkCover Queensland or a self-insurer). This is considered to be the initial decision on the claim.

Return to work – the worker’s timely, safe and medically structured return to pre-injury duties, or other employment, following workplace injury.

Return to work assist - A Q-COMP return to work initiative for injured workers who don’t return to work when their workers’ compensation claim closes.

Review – workers and employers can apply to Q-COMP if they disagree with certain decisions made by their workers’ compensation insurer (WorkCover Queensland or a self-insurer). Q-COMP impartially reviews claims and premium decisions. A review is an administrative review designed to provide an efficient, timely and cost-effective system for workers and employers to have insurer decisions reviewed. It is a non-adversarial and non-judicial process. The review process is not a reinvestigation of the matter.

Review decision – decision made by Q-COMP after reviewing the insurer’s decision. The review applicant will receive a written notice of the review decision and the reasons for the decision within 10 days after it is made. A duplicate copy of this will also be given to the other party (e.g. to the employer if a worker has applied for a review).

Right of appearance – an opportunity offered to review applicants to discuss their application for review with their Q-COMP Review Officer. This can be in person or over the telephone.

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Self-insurance/self-insurers – Queensland employers who provide workers’ compensation insurance for their employees, taking on all liabilities for any work-related injuries. Self-insurers manage and pay their own statutory and damages claims and pay an annual levy to Q-COMP to cover regulatory and administrative costs.

Set aside – insurer’s decision is set aside after Q-COMP’s administrative review and a new decision substituted.

Settled – the parties to the appeal have negotiated a settlement out of court.

Settlement payments – settlement payments are calculated as the gross settlement amount less contributory negligence less contribution from third party less statutory claim payments.

Specialty (Other) – medical assessment tribunals including the Cardiac, Dermatology, Ear, Nose & Throat, Ophthalmology and Disfigurement specialties.

Stable and stationary – a condition is referred to as stable and stationary when the condition is not likely to improve with further medical or surgical treatment.

Standard for rehabilitation – the standard for rehabilitation within Queensland’s workers’ compensation scheme is set out in the Regulation and regulates processes and procedures for doctor’s approval, the worker’s file, the rehabilitation and return to work plan, the suitable duties program, case notes, early worker contact, rehabilitation and confidentiality.

Statutory claim/s – claims for compensation regulated by the statute – i.e. The Workers’ Compensation and Rehabilitation Act 2003. Circumstances for claim acceptance, validity, payments and

benefits are outlined in The Workers’ Compensation and Rehabilitation Act 2003.

Statutory claim payments – all statutory payments made in the relevant year, including any payments for time lost made by the employer as part of the compensation period (excess) as reported by WorkCover Queensland.

Suitable duties – The Workers’ Compensation and Rehabilitation Act 2003 (section 42) defines suitable duties as:

� work duties for which the worker is suited having regard to the following matters:

� the nature of the worker’s incapacity and pre-injury employment

� relevant medical information

� the rehabilitation plan for the worker

� the provisions of the employer’s workplace rehabilitation policy and procedures

� the worker’s age, education, skills and work experience

� if duties are available at a location (the ‘other location’) other than the location in which the worker was injured – whether it is reasonable to expect the worker to attend the other location any other relevant matters.

Struck out – appeals struck out by the Commissioner because of failure of the appellant to comply with legislative or commission requirements.

Suitable duties program – a graduated plan of short duration incorporating selected duties that form part of the rehabilitation and return to work plan. The suitable

duties program must be approved by the worker’s treating medical practitioner. The treating medical practitioner indicates their approval of a suitable duties program on the Q-COMP medical certificate or documented suitable duties program.

Time lost claim – all claims which have resulted in time lost from work excluding fatalities, (i.e. compensation is paid for the time lost), including those with a lump sum payment. Claims with compensation together with lump sum payments are included as time lost claims.

TRIM – stands for Total Records and Information Management and is Q-COMP’s electronic data and records management system.

Upheld – after hearing evidence, the Magistrate has upheld the appeal and set aside or varied the Q-COMP review decision.

Varied – insurer’s decision is varied by the Q-COMP Review Unit.

Withdrawn – appeals withdrawn by the appellant prior to court.

Work capacity – work capacity is decided by the worker’s treating medical practitioner, based upon the worker’s medical status and is documented on the medical certificate. Total incapacity for work means that the worker is unable to work in any capacity (not simply their pre-injury duties) due to the severity of their injury or disease. Partial work capacity means that the worker is able to participate in some work tasks that are within their functional capacity.

WorkCover Queensland – manages workers’ compensation policies and claims for all employers in Queensland that are not licensed as a self-insurer (approximately 90% of workers’ claims are managed by WorkCover Queensland).

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Worker – an individual who works under a contract and in relation to the work, is an employee for the purpose of assessment for PAYG withholding under the Taxation Administration Act 1953. Section 11, the Workers’ Compensation and Rehabilitation Act 2003. Schedule 2 also sets out who is or is not a worker in particular circumstances.

Workers’ compensation insurer – refers to WorkCover Queensland or a self-insurer. A self-insured employer is licensed by Q-COMP to take on all liabilities for any work-related injuries and diseases.

Worker’s file – employers must keep a confidential file for a worker undertaking rehabilitation. The file must contain copies of all relevant documentation, correspondence and accounts (The Workers’ Compensation and Rehabilitation Act 2003). The file should be separate from all other company files and appropriately stored to maintain confidentiality.

Worker’s obligation for rehabilitation – the Act specifies that unless the worker has a reasonable excuse, they must satisfactorily participate in rehabilitation as soon as practicable after the injury is sustained and for the period for which the worker is entitled to compensation. Penalties can be imposed on employers or workers who do not meet their obligations.

Workplace – a workplace is a place where work is, is to be, or is likely to be, performed by a worker or employer and is a place that is for the time being occupied by the employer or under the control or direction of the worker’s employer; or where the worker is under the control or direction of the worker’s employer (schedule 6, The Workers’ Compensation and Rehabilitation Act 2003).

Workplace rehabilitation – ‘a system of rehabilitation accredited by the Authority (Q-COMP) that is initiated or managed by an employer’, section 43, The Workers’ Compensation and Rehabilitation Act 2003. The purpose of workplace rehabilitation is to ensure the worker’s earliest possible return to work or if not possible, to maximise the worker’s independent functioning. Workplace rehabilitation focuses on returning the worker to safe, suitable work at the earliest possible time, ensuring valuable work skills are not lost, and minimising the human and financial costs of work injury.

Workplace rehabilitation accreditation – gaining accreditation formalises the process for rehabilitation in the workplace. This requires:

� a workplace rehabilitation policy and procedures approved by Q-COMP

� a registered rehabilitation and return to work coordinator in Queensland who is an employee or contracted to provide this service.

Workplace rehabilitation policy and procedures – formal documentation accredited by Q-COMP of an employer’s systems and processes for rehabilitation in the workplace, including:

� the actions to be taken from the time of injury through to a full return to work

� the roles and responsibilities of the rehabilitation and return to work coordinator, the injured worker, line managers, supervisors and co-workers.

Under Queensland legislation, an employer must have workplace rehabilitation policy and procedures and employ a rehabilitation and return to work coordinator under a contract

(regardless of whether the contract is a contract of service) if:

� the employer employs workers at a workplace in a high risk industry – the wages of the employer in Queensland for the preceding financial year were more than $2.146 million (this threshold wages amount is indexed annually); or otherwise – the wages of the employer in Queensland for the preceding financial year were more than $7.049 million. These policies and procedures require review every three years.

Work related impairment (WRI) – the worker’s entitlement to lump sum compensation expressed as a percentage of the maximum statutory compensation (section 39, The Workers’ Compensation and Rehabilitation Act 2003)

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COMMON ACRONYMS

Association of Self Insured Employer Queensland - ASIEQ

Australian Industry Group - AIG

Capability Leadership Framework - CLF

Chamber of Commerce and Industry Queensland - CCIQ

Data Management and Analytics - DMA

Information communications technology - ICT

Information Privacy Act - IPA

Medical Assessment Tribunals - MAT

Queensland Audit Office - QAO

Queensland Council of Unions - QCU

Regional network program - RNP

Return to work - RTW

Rehabilitation and Return to work coordinator - RRTWC

Right to Information Act - RTI

WorkCover Queensland - WCQ

Workplace Health and Safety Queensland - WHSQ

Q-COMP 13/14 ANNUAL REPORT

347 Ann Street Brisbane QueenslandPO Box 10119 Brisbane Adelaide Street Q 4000Telephone: +61 7 3020 6364Facsimilie: + 61 7 3020 6426Email: [email protected]

final report for q-comp for the period 1 july to 29 ......amendment act 2013 on 29 october 2013, ......

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