Jondaryan Shire River Improvement Trust Final Report 1 July 2012 to 17 May 2013

This publication has been compiled by NRM Programs of Operations Support, Department of Natural Resources and Mines.

© State of Queensland, 2013.

The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in this publication is licensed under a Creative Commons Attribution 3.0 Australia (CC BY) licence.

Under this licence you are free, without having to seek our permission, to use this publication in accordance with the licence terms.

You must keep intact the copyright notice and attribute the State of Queensland as the source of the publication.

For more information on this licence, visit http://creativecommons.org/licenses/by/3.0/au/deed.en

The information contained herein is subject to change without notice. The Queensland Government shall not be liable for technical or other errors or omissions contained herein. The reader/user accepts all risks and responsibility for losses, damages, costs and other consequences resulting directly or indirectly from using this information.

Contents Introduction 1

Corporate governance 2

Constitution and function 2

Accessibility 2

Management 2

Planning 2

Works 3

Capital works 3

Natural disaster restoration 3

Maintenance 3

Operations 4

Secretarial and operational support 4

Consultancies 4

Overseas travel 4

Improvement notices 4

Information systems and record keeping 4 Conferences 4

Public Sector Ethics Act 5

Public Interest Disclosures 5

Risk management and accountability 5

Audit committee 5 Machinery of government changes 5

Financial operations 6

Audit 6

Internal audit 6 Income 6

Precepts 6

Loans 6

Grants and subsidies 6

Other income 6 Expenditure 6

Capital works 6

Maintenance of works 6

Restoration work 6

Interest and redemption 7

Administration and other costs 7

iii

Outputs and output performance measures 7

Overview of operations 8

Financial information 9

Remuneration of chairpersons and members 9

External scrutiny 9

Summary of financial performance 9

Intended users of financial information 9

Audit report information 10

Letters of compliance 10

Annual report requirements for Queensland Government agencies 11

Table 1: Compliance checklist—annual report 11

Glossary 13

Appendix 14

14

- iv -

Introduction On 17 May 2013, the Jondaryan Shire River Improvement Trust (the trust) was dissolved by the River Improvement Trust Amendment Regulation (No. 1) 2013.

On dissolution, the assets and liabilities of the trust were vested in the Toowoomba Regional Council.

The trust was a statutory body under the Financial Accountability Act 2009 (FA Act) and the Statutory Bodies Financial Arrangements Act 1982. The Minister is required to table the Final Report for the trust (Final Report) in the Queensland Legislative Assembly for the final period—from 1 July 2012 to 17 May 2013.

Copies of the Final Report are available from the Department of Natural Resources and Mines (the department).

The trust was one of three trusts undergoing institutional reform with a view to gaining efficiencies in meeting their obligations as statutory bodies. Other trusts are committed to remaining in their current form as statutory bodies and are progressing with meeting new legislative obligations applicable to them. The department will continue working alongside and actively supporting trusts.

- 1 -

Corporate governance

Constitution and function

The role of the trust was to protect and improve rivers, repair and prevent damage to rivers and prevent or mitigate inundation of land by riverine floods. The trust was inactive for a number of years prior to and including its final period. An overview of operations may be seen on page 10.

A local government, or multiple local governments, may apply to the Minister to have constituted, by regulation, a trust and a river improvement area over which it has jurisdiction. A river improvement area may comprise all, or part of one or more local government areas, and may be amended by regulation under the River Improvement Trust Act 1940 (the Act).

The primary role of the trust was to plan, design, finance, undertake and maintain stream improvement works for the benefit of the community within its river improvement area. The Act provides a trust with the powers to undertake these functions, including the ability to raise funds, enter land, occupy land, enter into contracts and carry out works. The trust provided services aligned to the government’s objectives for the community—Getting Queensland back on track—and other whole-of-government strategies.

The river improvement area of the trust was part of the local government area of the Toowoomba Regional Council described on plan AP19397.

Accessibility The trust’s principal place of business was the Harristown West Office of Toowoomba Regional Council.

The contact person for the trust was its acting secretary, Mr Mark Ready. Mr Ready’s phone number is 4688 6548, and his email mark.ready@toowoombaRC.qld.gov.au.

Management Membership of the trust consisted solely of one representative (an elected councillor) of, and appointed by, the Toowoomba Regional Council. No new members were appointed to the trust in the final period.

The trust member managed the trust’s operations throughout the final period. The trust does not have any related entities.

Planning The treasurer granted the trust exemptions under the Financial Accountability Act 2009 with respect to planning for its final period.

In its final period, the trust was inactive.

- 2 -

Works

Capital works

A trust is required to prepare an annual program of works and submit it to the department for approval by the chief executive (director-general) with the Minister’s consent.

Planning for works may include:

• assessing the amount of funding required to carry out the works

• investigation and design work

• identification of required approvals.

A trust must provide the department with detailed plans of all projects for technical assessment and obtain all relevant permits or approvals before undertaking any of the works. The SCRTQ coordinates the approval process of the annual works program on behalf of all trusts.

During the year, the trust was inactive.

Natural disaster restoration The guidelines under the Natural Disaster Relief and Recovery Arrangements (NDRRA) relate to the restoration of those essential public assets of trusts that are damaged as a consequence of a declared natural disaster event, such as a cyclone or flood, where NDRRA has been activated.

NDRRA assistance is available only if the aggregated total of trust and local government costs for restoration of damage caused by a natural disaster event exceed the local government’s trigger point. Local government trigger points are monetary amounts which reflect an individual council’s capacity to fund restoration works and are updated annually.

The trust did not seek or receive any NDRRA funding following damage caused by flooding during its final period.

Maintenance

During the year, the trust was inactive and did not undertake any maintenance work.

- 3 -

Operations

Secretarial and operational support

Under the Act, each trust must have a secretary and may employ other officers if it is deemed necessary. In most cases, the secretary is the chief executive officer or an employee of the relevant local government. Generally, the only other operational support is an engineer who, in most cases, is also the regional or shire engineer of the relevant local government.

Trust information including staff details, other positions held and appointment dates were as follows:

Members Appointment date

Cr Anne Glasheen 22/04/2009

Administrative or operational support Appointment date

Mr Mark Ready (Acting Secretary) 2011

No staff of the trust received a voluntary early retirement package in the final period.

Consultancies

During the year, the trust did not engage any consultancies.

Overseas travel

The trust’s members did not travel overseas on trust business during the final period.

Improvement notices Under the Act, a trust may issue a notice prohibiting a person from doing or allowing any act, matter or thing which the trust believes will cause, or contribute to, damage to any stream bank in its benefited area, or is likely to cause such damage in the future. If damage has already occurred, the notice may require the person to remedy the damage and restore the surrounding area.

An improvement notice is registered as an encumbrance on the title to land affected by the improvement notice. This encumbrance remains in place until such time as the notice is complied with in full. Failure to comply with a notice is an offence for which a person may be prosecuted. No notices were issued by the trust during its final period.

Information systems and record keeping The trust used record keeping systems established by the Toowoomba Regional Council for record keeping during its final period.

Conferences The annual conference and general meeting of the SCRTQ was held in Ayr on 18 October 2012 and was hosted by the Burdekin Shire Rivers Improvement Trust. Representatives from the trust did not attend the conference.

- 4 -

Public Sector Ethics Act The trust complied with the Public Sector Ethics Act 1994 during its final period. At the time they were appointed, members of the trusts were reminded of their obligations to the trust and given access to the publication ‘Welcome Aboard: A guide for Members of Queensland Government Boards, Committees and Statutory Authorities’.

Public Interest Disclosures The Public Interest Disclosure Act 2010 (PID Act) reforms and reinforces existing provisions for the effective management of public interest disclosures (PIDs). Trusts are required to log any PIDs with the Public Service Commission, with the assistance, as required, of the department. Trust must establish reasonable procedures for dealing with PIDs, publishing them on a publicly accessible website. To assist trusts to comply with this obligation, the department established such procedures, which it now hosts on a website of the department on behalf of trusts.

The trust reported it had adopted these procedures, which are accessible at the following departmental website:

http://www.dnrm.qld.gov.au/water/qld-river-improvement-trusts

Risk management and accountability For the purpose of enabling the department to assess the financial viability of the trusts at the end of a financial year, each trust is requested to submit:

• its financial statements

• a prudential assessment questionnaire

• an entity indebtedness statement

• a budget for the next financial year.

Based on this information, the department conducts an annual risk management and governance assessment of these entities. The conduct of this assessment has been a condition of accrual accounting and planning exemptions granted to the trusts by the Treasurer under section 59 of the Financial Accountability Act 2009. From the latest review, the department found the trust had been prudent in managing its financial affairs and had adopted appropriate risk management strategies.

Audit committee The trust’s members undertook the role of an audit committee by ensuring appropriate accounting standards were used and proper examination of financial arrangements was undertaken.

Machinery of government changes The trust did not undergo any machinery of government changes during its final period.

- 5 -

Financial operations

Audit Under the Auditor-General Act 2009, the Queensland Auditor-General is required to audit the financial statements for the trust (see page 12).

Internal audit When required, the trust undertook internal audit functions. There is nothing to report for the final period.

Income

Precepts During the final period, the trust collected a total of $nil (compared to $nil in 2011–12) from precepts issued by the trust on the Toowoomba Regional Council under section 14 of the Act.

Loans No new borrowings were raised by trust during the year under the state borrowing program.

Grants and subsidies For its final period, the trust reported a total of $nil (compared to $25 000 in 2011–12) in grants and subsidies received from sources including state grant funds allocated by the SCRTQ, NDRRA, Natural Disaster Resilience Program, local government and catchment groups.

Under a grant agreement between the State and the SCRTQ, grant money is provided to the SCRTQ for allocation to trusts to enable them to carry out individual projects that meet the State’s interests and are approved under the annual works program.

In the final period, under this grant agreement, the Queensland Government, through the department, provided the trusts with a grant of $253 000 (GST inclusive) towards the capital cost of approved works.

Other income During the final period, the trust received a total of $nil (compared to $nil in 2011–12) in landholder contributions, bank interest, GST recoveries and sundry receipts.

Expenditure

Capital works Expenditure in this category includes funds expended on constructing physical assets (for example levees and riverbank protection), revegetating riverbanks and clearing streams. Planning exercises are also classed as capital works.

A total of $nil (compared to $nil in 2011–12) was expended by the trust on capital works during the final period.

Maintenance of works Maintenance expenditure relates to the cost of ongoing maintenance of physical assets, such as topping up rock protection work and removing weeds that impair the growth of revegetation work. A total of $nil (compared to $nil in 2011–12) was spent by the trust in maintaining assets during the year.

Restoration work During the year, the trust spent a total of $nil (compared to $nil in 2011–12) on restoration works.

- 6 -

Interest and redemption During the year, a total of $nil (compared to $nil in 2011–12) was paid in interest and redemption of capital on existing loans.

Administration and other costs Administration and other costs for the year totaled $3282 (compared to $3525 in 2011–12) representing approximately 100 per cent of total trust expenditure.

Outputs and output performance measures Trusts are self-funding and therefore funding outputs and output performance measures are not applicable.

- 7 -

Overview of operations Apart from attending to some administrative matters the trust did not undertake any activities during the final period.

- 8 -

Financial information

Remuneration of chairpersons and members

Chairpersons and members of a trust, who meet the eligibility requirements for remuneration, are entitled to be paid the fees and allowances approved under the River Improvement Trust Regulation 1998. The scale of fees and allowances that was current during the year was approved by the Governor in Council on 20 September 2007.

The fees and allowances payable to the trust’s chairperson and members during the final period was:

• a daily meeting fee of $215 for the chairperson and $191 for members

• a special assignment fee of $179 for the chairperson and $159 for members

• half the daily fee if the meeting or special assignment was of four hours duration or less

• all necessary and reasonable expenses incurred while travelling on approved trust business and to attend meetings in accordance with the following arrangements:

o economy class air travel

o travelling and motor vehicle allowances, as per the Department of Justice and Attorney-General’s (JAG) directives current at the time the expense was incurred.

During the final period, the total amount of reported daily meeting fees and special assignment fees, as paid by the trust to its chairperson, was $nil. The total amount of reported meeting fees and special assignment fees, as paid by the trust to its members (exclusive of chairperson), was $nil. Other expenses, including motor vehicle and travelling allowances, as prescribed in the JAG directives, and reasonable out-of-pocket expenses paid by the trust to its chairperson and members totaled $nil.

External scrutiny Except for the audits of the financial statements carried out by the Queensland Audit Office, no external auditor reviews of the trust’s operations occurred during the final period.

Summary of financial performance The trust did not have an existing loan during the year.

Intended users of financial information Under the provisions of section 59 of the Act, the Treasurer exempted the trust from compliance with various provisions of the Financial and Performance Management Standard 2009 (the Standard). This included the requirements of section 48(1) of the Standard, which requires the trust to prepare final financial statements for the final period having regard to the minimum reporting requirements as detailed in the Financial Reporting Requirements for Queensland Government Agencies, published by Queensland Treasury and Trade.

The special purpose financial statements were prepared by the department using data provided by the trust, on a cash accounting basis in a format prepared by the Department of Natural Resources and Mines. The trust had prepared its financial statements in a similar format in previous years.

It has been assessed that these special purpose financial statements are appropriate to meet the information needs of the following intended users:

• members of the Queensland Parliament

• Minister for Natural Resources and Mines

• Treasurer and the Department of Treasury and Trade

• members of the trust and related local community members.

- 9 -

Given that these special purpose financial statements have not been prepared in accordance with prescribed accounting standards, they may not satisfy the information needs of users beyond those identified above.

Audit report information The trust’s certified final financial statements are at Appendix A.

In accordance with section 40 of the Auditor-General Act 2009, the Auditor-General has certified for the trust that:

• the prescribed requirements in respect of the establishment and keeping of accounts were complied with in all material respects

• the financial report presented a true and fair view of both the transactions of the Jondaryan Shire River Improvement Trust in accordance with the approved form, and accounting policies described in the notes for the final period 1 July 2012 to 17 May 2013, and the financial position of the trust as at the end of that period.

The audit report for the trust’s special purpose final financial statements includes an Emphasis of Matter paragraph in relation to the basis of accounting used. This Emphasis of Matter paragraph highlights that the statements are special purpose financial statements and, as such, may not satisfy the information needs of all users. The Emphasis of Matter paragraph does not relate to the financial viability of the trust or affect the auditor’s opinion.

A second Emphasis of Matter paragraph relates to the abolition of the trust. This Emphasis of Matter paragraph highlights that upon dissolution of the former trust, its assets and liabilities were transferred to Toowoomba Regional Council immediately before the abolition of the trust on 17 May 2013 for nil consideration.

The date of the independent audit report for the trust’s final financial statements for the final period was 4 December 2013.

Letters of compliance The trust’s former responsible person has certified that the trust’s final report complies with:

• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009

• the detailed requirements set out in the Department of the Premier and Cabinet’s publication, Annual report requirements for Queensland Government agencies (requirements for the 2012–13 reporting period).

- 10 -

Annual report requirements for Queensland Government agencies The compliance checklist provided in table 1 indicates where the annual report requirements (ARRs) for Queensland Government agencies for the 2012–13 reporting period are addressed in this report. The relevant legislative provisions are also provided.

Table 1: Compliance checklist—annual report Summary of requirement Basis for requirement Annual

report reference

Letter of compliance

• A letter of compliance from the accountable officer or statutory body to the relevant Minister

ARRs – section 8 Page 10

Accessibility • Table of contents

• Glossary

ARRs – section 10.1 Page iii

Page 13

• Public availability ARRs – section 10.2 Page 2

• Interpreter service statement Queensland Government Language Services Policy

ARRs – section 10.3

• Copyright notice Copyright Act 1968

ARRs – section 10.4

Inside cover

• Information licensing Queensland Government Enterprise Architecture – Information licensing

ARRs – section 10.5

Not applicable

General information

• Introductory Information ARRs – section 11.1

Page 1

• Agency role and main functions ARRs – section 11.2 Page 2

• Operating environment ARRs – section 11.3 Page 10

• Machinery of Government changes ARRs – section 11.4 Page 7

Non-financial performance

• Government objectives for the community

ARRs – section 12.1 Page 2

• Other whole-of-government plans / specific initiatives

ARRs – section 12.2 Page 2

• Agency objectives and performance indicators

ARRs – section 12.3 Page 2

• Agency service areas, service standards and other measures

ARRs – section 12.4 Page 2

Financial performance

• Summary of financial performance ARRs – section 13.1 Page 6

• Chief Finance Officer (CFO) statement

ARRs – section 13.2 Not applicable

Governance – management

• Organisational structure ARRs – section 14.1 Page 2

• Executive management ARRs – section 14.2 Page 2

- 11 -

Summary of requirement Basis for requirement Annual report reference

and structure • Related entities ARRs – section 14.3 Page 2

• Boards and committees ARRs – section 14.4 Not applicable

• Public Sector Ethics Act 1994 Public Sector Ethics Act 1994

(section 23 and Schedule)

ARRs – section 14.5

Page 5

Governance – risk management and accountability

• Risk management ARRs – section 15.1 Page 5

• External Scrutiny ARRs – section 15.2 Page 9

• Audit committee ARRs – section 15.3 Page 5

• Internal Audit ARRs – section 15.4 Page 6

• Public Sector Renewal Program ARRs – section 15.5 Not applicable

• Information systems and recordkeeping

ARRs – section 15.7 Page 4

Governance – human resources

• Workforce planning, attraction and retention and performance

ARRs – section 16.1 Page 4

• Early retirement, redundancy and retrenchment

Directive No.11/12 Early Retirement, Redundancy and Retrenchment

ARRs – section 16.2

Page 4

• Voluntary Separation Program ARRs – section 16.3 Not applicable

Open Data • Open Data ARRs – section 17 Not applicable

Financial statements

• Certification of financial statements FAA – section 62

FPMS – sections 42, 43 and 50

ARRs – section 18.1

Page 18

• Independent Auditors Report FAA – section 62

FPMS – section 50

ARRs – section 18.2

Page 19

• Remuneration disclosures Financial Reporting Requirements for Queensland Government Agencies

ARRs – section 18.3

Page 9

- 12 -

Glossary ARRs Annual report requirements for Queensland Government agencies

FAA Financial Accountability Act 2009

FPMS Financial and Performance Management Standard 2009

ICM Integrated Catchment Management

JAG Department of Justice and Attorney-General

LGAQ Local Government Association of Queensland

NDMP Natural Disaster Mitigation Program

NDRMS Natural Disaster Risk Management Study

NDRRA Natural Disaster Relief and Recovery Arrangements

RFMP Regional Flood Mitigation Program

SCRTQ State Council of River Trusts Queensland

- 13 -

Appendix

- 14 -

- 15 -

- 16 -

- 17 -

- 18 -

- 19 -

- 20 -