2012-13 Annual Report Department of Natural Resources and Mines · 2013. 10. 1. · 2012–16 strategic objectives This section highlights the department’s 2012–13 achievements

Department of Natural Resources and Mines

CS2632 09/13 ISSN 2201-2087

Interpreter statement

The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding the annual report, you can contact us within Australia on 13 QGOV (13 74 68) and we will arrange an interpreter to effectively communicate the report to you.

Public availability

Copies of this annual report are available online at www.dnrm.qld.gov.au.

Limited printed copies are available by calling 13 QGOV (13 74 68).

Enquiries about this publication should be directed to the Director, Strategy and Performance, Department of Natural Resources and Mines.

Email: [email protected] Phone: (07) 3199 8230 Post: PO Box 15216, CITY EAST QLD 4002

This publication has been compiled by Strategy and Performance of Business and Corporate Partnerships, Department of Natural Resources and Mines.

© State of Queensland, 2013.

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Department of Natural Resources and Mines | 2012–13 Annual Report Page 1

Contents

Letter of compliance ..............................................................................................................................................3

Director-General’s message ...................................................................................................................................4

About the department ............................................................................................................................................ 5Who we are ...................................................................................................................................................... 5Our vision ........................................................................................................................................................ 5Our purpose ..................................................................................................................................................... 5What we do ...................................................................................................................................................... 5

Our performance .................................................................................................................................................... 7Government commitments ............................................................................................................................... 72012–16 strategic objectives ........................................................................................................................... 7Reduction of red tape ......................................................................................................................................11Other whole-of-government plans and specific initiatives ...............................................................................11Looking forward: 2013–14 .............................................................................................................................. 14Public Sector Renewal Program .......................................................................................................................15Strategic risks, opportunities and challenges ................................................................................................ 16

Open data .............................................................................................................................................................17

External scrutiny .................................................................................................................................................. 18Auditor-General ............................................................................................................................................. 18Parliamentary committees ............................................................................................................................. 19

Summary of financial performance .......................................................................................................................20Financial overview .........................................................................................................................................20

Governance—management and structure ............................................................................................................. 23Executive Management Group ........................................................................................................................24EMG committees ............................................................................................................................................29Delivery groups ..............................................................................................................................................29Other committees ..........................................................................................................................................30Networking and information forums ............................................................................................................... 31Business and Corporate Partnerships Board .................................................................................................. 31Organisational structure ................................................................................................................................ 31Public Sector Ethics Act 1994 .......................................................................................................................... 35

Governance—risk management and accountability ...............................................................................................36Risk management ..........................................................................................................................................36Audit and Risk Committee ..............................................................................................................................36Internal audit ................................................................................................................................................. 37Information systems and recordkeeping.........................................................................................................38

Governance—human resources ............................................................................................................................40Workforce planning, attraction and retention .................................................................................................40Work health and safety .................................................................................................................................. 41Early retirement, redundancy and retrenchment ............................................................................................. 43Voluntary separation program........................................................................................................................ 43


Financial statements ............................................................................................................................................44Chief Finance Officer statement ......................................................................................................................44

Appendix 1 Performance statement 2012–13........................................................................................................116

Appendix 2 Legislation administered by DNRM ....................................................................................................119

Appendix 3 Related entities (statutory bodies and other entities) ....................................................................... 122

Appendix 4 Boards and committees .................................................................................................................... 127

Appendix 5 Overseas travel* .............................................................................................................................. 130

Appendix 6 Queensland Multicultural Action Plan 2011–14 ..................................................................................133

Appendix 6 Consultancies .................................................................................................................................. 134

Abbreviations ......................................................................................................................................................135

Compliance checklist .......................................................................................................................................... 136

Contacts ............................................................................................................................................................. 138


The Honourable Andrew Cripps MP Minister for Natural Resources and Mines PO Box 15216 CITY EAST QLD 4002

Dear Minister Cripps

I am pleased to present the 2012–13 Annual Report and the 2012–13 financial statements for the Department of Natural Resources and Mines.

I certify that this annual report complies with the:

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

• detailed requirements set out in Annual report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be found at page 136 of this annual report.

Yours sincerely

Dan Hunt Director-General Department of Natural Resources and Mines


Letter of compliance


Director-General’s message

It has been another successful year for the Department of Natural Resources and Mines and I thank staff for their ongoing commitment to the vital services we deliver to the people of Queensland.

We continue to strive to grow a four-pillar economy by realising our vision of being a world leader in sustainable resource management. The department has worked hard over the last 12 months to improve service delivery and drive economic growth in Queensland.

Our ongoing work in reducing red tape in the resources sector has been a notable achievement. In 2012 the Queensland Parliament passed the Mines Legislation (Streamlining) Amendment Bill 2012, which was designed to streamline the approval process for resource projects and establish more efficient tenure management, while still ensuring rigorous environmental assessments are in place.

Recent changes to the Water Act 2000 will see water licences extended to 2111. This provides greater certainty for landholders and reduces red tape and costs for water users. Similarly, the web-based MyMinesOnline system allows resource companies to conduct online transactions, such as lodging permit applications, making it easier for them to do business with us.

The development of a six-point action plan to reform Queensland’s land access laws and strengthen the relationship between landholders and resource companies has been another highlight. Significant work has also gone into clearing a backlog of more than 380 outstanding applications for property maps of assessable vegetation.

As we harness the innovation demonstrated in these projects and others, I am confident the department will continue to support the government’s priorities for Queensland and deliver a strong and resilient economy.

Working within a fiscally responsible environment continues to be vital for all departments, not just ours. We have been active in implementing the Public Sector Renewal Program and this work ensures all staff are recognised as providing Queenslanders with essential services in the best way and for the best value.

Dan Hunt Director-General Department of Natural Resources and Mines


About the department

» a safe and healthy resources industry workforce

» a more productive and innovative resources industry

• realise better infrastructure and planning by delivering

» accurate geological survey, spatial and natural resources information

» better information on the real benefits and impacts of natural resources and resources industry activity

• revitalise frontline services by delivering

» an effective mine safety and health response capability

» streamlined administrative processes

• lower the cost of living for families by

» creating options for home ownership on Indigenous land

» reducing red tape for landholders.

What we doIn 2012–13, the department’s four service areas were Mining and Petroleum Services, Mine Safety and Health Services, Water Services and Land Services.

Mining and Petroleum Services

The objectives of this service area are to:

• encourage exploration and investment

• support industry to develop new projects and approaches.

Outcomes include:

• investment from exploration activity

• better planning and infrastructure

• more efficient permit approval and licensing processes.

Who we areThe Queensland Government established the Department of Natural Resources and Mines (DNRM) on 3 April 2012.

Our visionTo be a world leader in sustainable resource management.

Our purposeThe purpose of the department is to ensure Queenslanders benefit from the productive, sustainable use of the state’s natural resources—our land, water and minerals.

The management of the state’s natural resources is central to delivering economic, environmental and social benefits to all Queenslanders.

To deliver benefits for Queensland, the department aims to achieve the following five objectives, as outlined in the DNRM strategic plan for 2012–16:

• a globally competitive mining, petroleum and gas industry

• a safe and healthy resources industry

• sustainable and productive use of land and water resources

• balance in the access to and use of natural resources

• regulatory certainty for communities, industry and investors.

The department provides mining and petroleum services, mine safety and health services, water services and land services to:

• grow a four-pillar economy by delivering

» investment from exploration and revenue from resources activity

» a secure land and water titling system

» productive and sustainable land and water resources


Mine Safety and Health Services


• ensure strong, independent regulation

• ensure an effective response capability

• build industry awareness and skills

• use research and new technologies to reduce safety and health risks in the mining, quarrying, explosives and petroleum and gas industries

• mitigate safety risks at abandoned mines.

Outcomes include:

• a safe and healthy workforce

• safe, productive industries

• better planning and infrastructure.

Water Services


• provide certainty in water access entitlements

• plan and manage the allocation and sustainable use of Queensland’s water resources

• account for and monitor the quantity, availability and condition of water resources

• increase the productive use of Queensland’s water resources without compromising sustainability.

Outcomes include:

• water for communities and industry

• water security

• better planning

• reduced red tape.

Land Services


• provide clarity to landholders and developers on native vegetation clearing

• ensure Indigenous land interests are considered and supported

• represent the Queensland Government in the resolution of native title claims

• provide certainty in land titling, mapping and spatial information and accurate valuations

• plan and manage the allocation and use of land resources

• account for and monitor the quantity, availability and condition of land resources

• increase the productive use of Queensland’s land resources without compromising sustainability.

Outcomes include:

• land for social and economic development

• more productive land

• better planning and infrastructure

• reduced red tape.


Our performance

Government commitmentsDNRM is responsible for delivering 24 government commitments. At 30 June 2013, the department had progressed the government’s objectives for the community by delivering the commitments listed below.

The remaining 19 commitments are all in progress and are on track to be delivered within the agreed time frames—11 are on track to be delivered in 2013–14 and another 8 are to be delivered in 2014–15.

Grow a four-pillar economy

Delivered: Continue existing funding for natural resource management groups.

Delivered: Sustainable coal seam gas industry—protect our natural environment by rigorously monitoring industry impacts through a dedicated inspection and enforcement unit that ensures strict compliance with the law and project development conditions.

Deliver better infrastructure and better planning

Delivered: The current proposal submitted for Acland Stage 3 expansion (New Hope Group) not progressed.

Delivered: Resources and energy strategy (restoring a stable regulatory framework)—continue to support an independent health and safety regulator for the mining industry.

Restore accountability in government

Delivered: Resources and energy strategy (restoring a stable regulatory framework)—implement a transparent performance reporting and accountability framework for relevant government agencies, including the Queensland Mines Inspectorate.

2012–16 strategic objectivesThis section highlights the department’s 2012–13 achievements against the objectives and strategies outlined in the DNRM 2012–16 strategic plan.

Objective: A globally competitive mining, petroleum and gas industry

Encourage exploration and investment

• Worked with proponents and landholders to progress the mining lease for a rail load-out facility for Cloncurry.

Support industry to develop new projects and approaches

• Amended legislation to support progression of the South of Embley bauxite mining project.

• Established an industry steering group to resolve overlapping resource tenure issues.

• Simplified exploration assessment processes with the release of online exploration permits for minerals, with 85% of new permits lodged online since October 2012.

• Released the new Geology of Queensland book, related maps and scientific data, the results of the Galilee and Thomson airborne magnetic and radiometric surveys.

• Extended shotfirer licence renewal periods from 3 to 5 years, and extended the requirement to replace a licence photograph from 5 to 10 years, reducing industry costs associated with retraining and recertification.


Competitive cash biddingDNRM has changed the way land is made available for companies seeking the right to explore in Queensland. The competitive tendering process, which has been in place for petroleum and gas exploration rights since 2004, has been expanded and now also applies to the release of land for new exploration permits for coal. It can also apply to the release of exploration rights for minerals but only in certain circumstances.

In addition, where land is considered by the state’s geologists to be potentially highly prospective, it is released via competitive tender that includes a cash bidding component. This component is added to the established criteria of financial and technical capability and the best possible work program. This is likely to be applied to a few small areas in potentially highly prospective resource-rich areas. The majority of land to be released through this process is to be work-program and capability based and will not include a cash bidding component.

This process—balancing cash bids with competitive exploration work programs—demonstrates that the government is exercising good stewardship in allocating access to the state’s resources to the companies most capable of developing these resources. It ensures an appropriate return to the people of Queensland, reflective of the in-ground value of the resource.

This new process resulted in a highly successful first round of competitive land releases for the exploration of petroleum and gas in the Surat Basin. From the success of this tender, $30 million of the cash bid received was provided to the Geological Survey of Queensland (GSQ) to implement priority initiatives designed to support mineral- and energy-related exploration.

The framework continues to promote long-term investment in the state’s resource industry with further land releases across the state, some involving a cash bidding component and others focusing on work programs targeted specifically at junior explorers.

Big achievements for Geological Survey of QueenslandIn July 2012, the GSQ reports database, Queensland Digital Exploration Reports (QDEX), recorded its greatest ever number of page views, highlighting its value as an exploration industry research tool. Access records for QDEX for this month showed 190 000 page views, while the average for the previous 12 months was 120 000 per month. Also, 252 gigabytes of data was downloaded in this month, while the average for the previous 12 months was 140 gigabytes per month. Average figures for the year 2012–13 were above those for the previous year (page views 133 000 per month, data downloads 159 gigabytes per month) but below the peak experienced in July 2012. QDEX contains data and information generated from previous resource exploration in the state. The online system enables new explorers from Australia and overseas to build on the work of previous explorers, which considerably reduces exploration cost and risk.

GSQ joined nearly 6000 of their geologist peers at the 34th International Geological Congress in Brisbane in August 2012, with 21 DNRM staff presenting to the delegates. Also, GSQ contributed an exhibition of the HyLogger™ core samples, compiled a display of historical maps of Queensland geology and helped the Queensland Museum transport its dinosaur display to the event.

Objective: A safe and healthy resources industry

Provide strong, independent regulation

• Continued work with other states to achieve greater national consistency in mine safety and health legislation.

• Initiated an ongoing ammunition amnesty to encourage safe storage and disposal of unwanted and old ammunition through firearms dealers.

Provide an effective response capability

• Conducted a Level 1 statewide mine emergency exercise at Oaky North Coal Mine.

• Worked with industry response teams to successfully stabilise and cap a long-abandoned coal exploration test hole at Kogan on the Darling Downs. This test hole had been the site of a slow-burning gas fire.


Simtars mine emergency responseOne of the biggest safety threats to an underground coalmine is spontaneous combustion or ‘spon com’—the spontaneous self-heating of coal as it reacts with oxygen in the air.

If left unchecked, the temperature of the coal increases as the reaction progresses to the point where the coal is literally on fire. If these elevated temperatures occur near coalmine gases (such as methane), an explosion can be triggered. Such events have been the cause of many mining disasters and loss of life throughout centuries of coalmining.

Simtars has a state-of-the-art emergency response mobile mine gas laboratory, which attended a ‘spon com’ emergency at the Carborough Downs underground coalmine. The services of the laboratory helped mine management bring the situation under control and were required for 4 months before the mine could recommence

operations.

Build industry awareness and skills

• Engaged key stakeholders to minimise skills shortages in the mining industry, with Simtars (the Safety in Mines Testing and Research Station) delivering a variety of training packages to upskill industry.

• Ran industry workshops on mine fan explosion vents following concerns about designs raised by the Pike River Royal Commission on emergency management and exploration safety.

• Released QGN 16 Guidance note for fatigue risk management for the mining industry.

• Released the revised SafeOP for petroleum and gas—a guide and self-audit tool to help operators of petroleum and gas operating plants meet their legislative obligations in relation to safety management plans.

Use research and new technologies to reduce safety and health risks

• Streamlined authorisations for use of explosives in the petroleum and gas industry.

• Released an online tool to enable the public to easily report information about abandoned mine site locations and their potential hazards.

• Released a report on research conducted by Simtars to examine the Australian underground coal industry’s approach to the use of goaf seals and the potential risk implications for Australian practices resulting from changes to regulation in the United States governing seal strengths.

Mitigate safety risks at abandoned mines

• Increased water treatment capacity from the Open Cut Pit at Mount Morgan by an additional 1.9 megalitres per day by installing 4 industrial evaporators.

• Completed an assessment of flood risk at all abandoned mines in Queensland following recommendations from the Queensland Floods Commission of Inquiry.

• Handed back former mining land at Horn Island to the Kaurareg people, and reduced the footprint of legacy mining in the area.

• Reduced public safety risks of abandoned mine shafts, remediating more than 150 shafts in and around Gympie, Charters Towers, Opalton, Quilpie, Ipswich and the Atherton Tableland.

• Removed the risk of asbestos contamination at the old Jumna mine processing site in North Queensland, through the demolition and removal of former laboratory buildings.

Objective: Sustainable and productive use of land and water resources

Increase the productive use of our land and water resources

• Drafted the Water Resource (Wet Tropics) Plan 2013 and initiated processes for the release of unallocated water in the Gulf, Baffle and Great Artesian Basin water resource plan areas.

Provide certainty in land and water titling and accurate land valuations

• Progressed the framework to manage mining leases on North Stradbroke Island.

• Consulted with communities and progressed a plan to better manage Western Rivers via the Western Rivers Advisory Panel.

• Implemented online lodgement for objections against statutory land valuations as part of the 2013 valuation process.


Plan and manage the allocation and use of our land and water resources

• Amended the Logan Basin resource operations plan to include Wyaralong Dam. Completed the Cooper Creek, Pioneer (groundwater amendment) and Fitzroy resource operations plans, the Burnett water resource plan 10-year review, and the 5-year review of the Great Artesian Basin water resource and resource operations plans.

Account for and monitor the quantity, availability and condition of our land and water resources

• Maintained the integrity of the state’s land and water registers and ensured the timely registration of more than 600 000 documents in the registers.

Mutchilba officially namedThe locality of Mutchilba, about 100 kilometres south-west of Cairns, was officially added to the Queensland Government’s place names database. Mutchilba is now recognised by Australia Post, Telstra and the Department of Emergency Services.

The change followed extensive consultation with the public and with Tablelands Regional Council.

DNRM administers the Place Names Act 1994, which regulates the altering of boundaries and the naming

of areas and geographical features.

Objective: Balance in the access to and use of natural resources

Provide a transparent land access framework for the resources industry

• Developed a six-point action plan as part of the government’s response to the independent review of the Land Access Framework.

• Amended the Land Act 1994 to reduce delays and costs associated with lease renewal processes for small rural leases.

• Introduced amendments to the Land Title Act 1994 to reduce red tape and promote innovative and affordable options for high-density developments in small-lot subdivisions (such as for terrace-type houses) by providing a legislative framework that allows for the creation of simplified easements for building

support, shelter, maintenance and (to a limited extent) services. The use of these new high-density development easements will reduce the administrative and compliance burden on stakeholders in the land development and construction sector.

Ensure Indigenous land interests are considered and supported

• Represented the Queensland Government as first respondent to native title claims lodged with the Federal Court in Queensland, and negotiated resolutions and broader land settlement agreements wherever possible.

• Introduced the Aboriginal and Torres Strait Islander Land Holding Act 2013, and introduced tools to finalise outstanding leasing matters and remove barriers to sustainable home ownership on certain Indigenous land.

Significant land transferIn 2012–13, 662 159 hectares of land were transferred under the Aboriginal Land Act 1991 and Torres Strait Islander Land Act 1991 to Aboriginal or Torres Strait Islander people to enable them to manage the land according to their tradition or custom. This brings the total land area transferred under these Acts to 3 774 593 hectares to date.

Significant land transfers included:

• Mer Reserve—443 hectares. This was the first transfer of land to a Torres Strait Islander community under the Torres Strait Islander Land Act. Murray Island (in this area) was the birthplace of native title as a result of the 1992 Mabo decision. The transfer in December 2012 marked the 20th anniversary year of the Mabo decision.

• Mapoon Deed of Grant in Trust (DOGIT)—175 766 hectares. The transfer of the Mapoon DOGIT in May 2013 coincided with the official opening of the First Contact Memorial to mark the first sighting of Australia by Europeans (the Dutch sailors on the Duyfken).

• Kowanyama DOGIT—244 175 hectares. The Kowanyama DOGIT transfer in June 2013 was a significant achievement for both the community and DNRM, and was the culmination of many years of consultation.


Objective: Regulatory certainty for communities, industry and investors

Reduce the volume and complexity of legislation and administrative processes

• Conducted a pilot study to assess the potential for coordinated surveys in a greenfield development and for extending the survey model to other greenfield sites across Queensland.

For more examples, see ‘Reduction of red tape’ below.

Contribute to statutory regional planning processes

• Engaged and worked with the Department of State Development, Infrastructure and Planning and other relevant state agencies and stakeholders on details around the policy direction for statutory regional plans.

Reduction of red tapeThe Queensland Government is focused on reducing the regulatory burden on business and the community, and has committed to reduce red tape by 20% by 2018. In 2012–13, DNRM supported this through the following actions:

• Progressed streamlining measures in vegetation management through the enactment of the Vegetation Management Framework Amendment Act 2013.

• Delivered an industry discussion paper inviting submissions from peak industry bodies and stakeholders to inform the proposed creation of a Common Resources Act. The consultation process is an important step in delivering a common, flexible system of tenure and resource administration to cover coal, mineral, petroleum, geothermal and geosequestration tenures.

• Introduced the Land, Water and Other Legislation Amendment Bill 2013 to parliament. The Land, Water and Other Legislation Amendment Act 2013 was assented to on 14 May 2013. The Act amends a number of Acts to streamline operational provisions associated with land, water and petroleum and to improve administrative and operational efficiencies for government and other stakeholders. The Act also allows the conversion of unused wells into water bores for use by farmers and graziers and simplifies the State Rural Leasehold Land Strategy.

• Passed the Mines Legislation (Streamlining) Amendment Act 2012 in August 2012. The Act modernises tenure administration and reduces the time taken for each tenure decision. It clarifies legislation so resource activities (exploration) and development activities (transport and infrastructure) can coexist. The Act also clarifies the application of the Work Health and Safety Act 2011 to hazardous chemicals and facilities and streamlines rules applying to the management and transport of water and brine produced by the coal seam gas and liquefied natural gas industries.

• Streamlined the assessment processes under the strategic cropping land framework for a range of resource activities and rural industry developments.

• Amended Queensland’s strategic cropping land map to remove areas not highly suitable for cropping and reduce red tape for fossicking activities.

• Streamlined the process for renewing fodder harvesting permits, allowing landholders to extend existing permits by 5 years instead of applying for new permits.

• Reduced red tape for the small mining sector via the Mining and Other Legislation Amendment Act 2013.

Vegetation managementDNRM led the policy development for the introduction of the Vegetation Management Framework Amendment Bill 2013 to parliament. This Bill will reduce red tape and the regulatory burden for landholders, business and government.

The reforms to vegetation management deliver a balance between the conservation of vegetation and biodiversity and the economic development of the state. They support the development of Queensland’s agricultural sector by including new and streamlined clearing codes, improved mapping, new and broadened exemptions, and improvements to the compliance framework.

Other whole-of-government plans and specific initiativesThe department contributed to the following Council of Australian Governments (COAG) initiatives and national partnership agreements.


National Water Market System

DNRM is involved, via national partnership agreements, in the National Water Market System (NWMS) development of the Common Registry System. The NWMS is an objective of COAG intended to improve the efficiency of water registers, transactions and market information functions. It is being developed so that water trading systems and processes will better meet the water market performance characteristics set by COAG and National Water Initiative (NWI) requirements. The objectives of the NWMS program include:

• Deliver a sound register that records water rights, and supports water accounting and resource management.

• Ensure transaction trades are not limited by register processes—that is:

» Reduce transaction times.

» Reduce transaction costs for users and administrators.

» Satisfy customer requirements for ready access to accurate, detailed and comprehensive information.

» Provide greater consistency of user experience across jurisdictions.

• Ensure interoperability between relevant water registers to improve the efficiency of interstate trading.

Queensland has finalised its requirements under the current agreements and all milestone payments have been triggered via the completion of the following tasks:

• Stream 0—full documentation of Queensland’s water business requirements

• Stream 1—analysis of Queensland’s technical ICT integration requirements for implementation of the Common Registry System.

National Framework for Compliance and Enforcement Systems for Water Resource Management

This project is funded by the Australian Government and provides Queensland with $10.5 million over 5 years; it delivers proactive education and awareness activities, and monitors

compliance with water usage entitlements. In 2012–13, the project monitored 1125 properties that have water entitlements. DNRM has responded to any instances of the unlawful use or take of water.

Other outcomes of this project include the delivery of a comprehensive report that detailed the drivers of and barriers to non-compliance with water resource legislation. The project also determined the level of risk for all Queensland water catchments and resources in accordance with the risk categories outlined in the framework. This helped to identify the catchments needing on-ground activities.

In addition, the project led to the development and implementation of best practice tools that assist with the monitoring, compliance and enforcement of water matters, such as piloting the use of iPads by monitoring staff across Queensland. Also, the project has improved water resource management through education, activities and programs that increase levels of compliance with water legislation within the regulated community. As part of the project, annual statistical reports of non-compliance with water legislation are produced, and these are available for viewing on DNRM’s website.

Water Management Partnership Agreement

The department contributed to the Healthy HeadWaters Coal Seam Gas Water Feasibility Study, which analysed the opportunities for, risks of and practicability of using coal seam gas water in southern Queensland. The study was managed by DNRM with $5 million of funding from the Commonwealth Department of Sustainability, Environment, Water, Population and Communities (SEWPAC) as part of the Healthy HeadWaters Program.

The study was a feasibility assessment, and did not involve any policy decisions relating to the management and use of coal seam gas water (although it may make recommendations for future on-ground works or policies). The study did assess beneficial use options where they relate to achieving Healthy HeadWaters objectives, and provided valuable information for assessing other such options.


The final report, including the Milestone 6 progress report, was submitted to SEWPAC on 5 June 2013. It documents activity from 1 November 2012 to 31 March 2013 and reports on all activity undertaken under the feasibility study’s Water Management, as detailed in Schedule 2 of the Partnership Agreement Project, which commenced on 1 November 2010.

National Partnership Agreement to Deliver a Seamless National Economy

The department worked to develop a nationally consistent legislative framework, which will result in improved safety and health performance in the Queensland mining industry as well as greater consistency with the other major mining states, New South Wales and Western Australia. Improved consistency will make it easier for mining companies to conduct their business in Queensland and for mine workers to have their competencies recognised nationally.

DNRM also worked towards the removal of overlapping and inconsistent regulation between states and territories in relation to gasfitting licences.

Great Artesian Basin Sustainability Initiative

Under the National Partnership Agreement on the Great Artesian Basin Sustainability Initiative (GABSI), the Queensland Government receives matching funding from the Australian Government for the delivery of on-ground water efficiency works in the Queensland section of the Great Artesian Basin. Financial assistance is provided to landholders to rehabilitate uncontrolled bores that are wasting water and to replace bore drains that distribute water inefficiently with piped reticulation systems. In 2012–13, 26 uncontrolled bores were rehabilitated and 20 bores piped, replacing 369 kilometres of inefficient bore drain with piping and saving an estimated flow of 6900 megalitres per year in the Queensland section of the Great Artesian Basin.

Thousands of megalitres of artesian water savedA recent bore-capping exercise, undertaken as part of GABSI, proved more challenging than most.

GABSI is a joint program of the Australian and state governments. It addresses waste of artesian water by helping landholders rehabilitate old bores and replace bore drains with piped systems.

As part of the program, DNRM officers were tasked with accessing and plugging an uncontrolled bore on Coorabulka, a 637 000 hectare property 150 kilometres north-east of Bedourie in the state’s Channel Country.

Departmental records from 1904 showed that 1.4 million gallons (6.37 million litres) of water was flowing from the bore each day. However, attempts to measure the flow in 1921, 1951, 1954 and again in 1965 were unsuccessful as the bore gradually became immersed under water.

By late last year, the bore was hidden in a waterhole that extended for 1.5 kilometres. With the help of a tinnie (borrowed from the Toowoomba Water Monitoring Unit) and fish-finder equipment that measures water temperature, they were able to narrow the search area to 40 metres. Inside this area they detected a smoothing of the water surface, indicating the location of the bore, and then ran some imaging scans to determine its size and depth.

The next challenge was to isolate the bore from the main waterhole so it could be plugged. Using a front-end loader, the team constructed a coffer dam, a watertight structure that allowed the area around the bore to be pumped dry.

Pumps had to be run 24 hours a day to ensure the walls of the bore pool remained dry and stable. Wall stabilisation of the bore hole was completed with a 25-tonne excavator. The original bore casing was found about 4 metres below the original water level of the waterhole.

DNRM’s cable tool drilling rig was installed over the bore hole to clear the bore’s casing so it could finally be plugged. The result? Stopping the flow of enough Great Artesian Basin water to fill 353 Olympic swimming pools every year.

To date, under GABSI and former programs, 649 uncontrolled bores have been rehabilitated and about 12 680 kilometres of bore drain replaced with pipelines.

This work has achieved an estimated flow saving of 185 000 megalitres per year from the Great Artesian Basin in Queensland. This is equivalent to the filling of 74 000 Olympic swimming pools every year.


Looking forward: 2013–14In 2013–14 DNRM will focus on delivering the government’s objectives for the community and our departmental strategic objectives.

Six Month Action Plan (July–December 2013)

DNRM is responsible for delivering the following priorities, which are identified in the government’s Six Month Action Plan.

Environment and resources

• Establish self-assessable vegetation clearing codes.

• Complete the final Wet Tropics water resource plan for consideration by government.

• Commence assessment of tenders for the unallocated water from the Surat Basin region.

• Evaluate the Land Access Implementation Committee report.

• Announce the next round of tenders for exploration of coal areas in Queensland (non-cash).

Economic growth and infrastructure development

• Respond to the future and continued relevance of government land tenure across Queensland.

• Introduce self-assessable codes for low-risk water-related approvals under the Sustainable Planning Act 2009.

• Deliver additional modules of MyMinesOnline, including functionality for additional permit types.

Government and accountability

• Make all government open (spatial) data available through the Queensland Globe.

Progressing our strategic objectives

In addition to undertaking the priority projects listed above, DNRM will deliver the following to progress our strategic objectives in 2013–14.

Sustainable and productive use of land and water resources

• Enable online access to large geological data sets through QDEX data delivered under the Large Spatial Data Online Delivery project.

• Progress the implementation of GABSI.

• Enable the release of unallocated water in the Baffle catchment and the Great Artesian Basin.

• Implement the Murray–Darling Basin Plan for Queensland’s basin catchments.

• Allocate funding of $80 million over 5 years towards natural resource management investment in Queensland, including initiatives to protect the Great Barrier Reef.

Balance in the access to and use of natural resources

• Increase Indigenous people’s access to land through transfers made under the amended Aboriginal Land Act 1991 and the Torres Strait Islander Land Act 1991.

• Deliver a preferred management strategy that protects Western Rivers while enabling sustainable development.

A safe and healthy resources industry

• Consolidate existing data on abandoned mines across Queensland and develop a risk assessment framework to guide decisions on remediation of abandoned mine sites.

• Implement amendments to the Coal Mining Safety and Health Act 1999 and the Mining and Quarrying Safety and Health Act 1999 to improve mine safety and health.

• Conduct research to assess the impact of coal seam gas extraction on aquifers in the Surat Cumulative Management Area.

A globally competitive mining, petroleum and gas industry

• Fund GSQ with $30 million over 3 years to further increase exploration and investment in mining in Queensland, as a consequence of the successful first round of competitive cash bidding.

• Enable the development of Queensland’s significant oil shale resources under strict environmental conditions.


• Coordinate the government’s response to the recommendations proposed by the Uranium Mining Implementation Committee.

• Provide greater industry certainty through the delivery of legislation that will address issues relating to overlapping coal and coal seam gas tenures.

Regulatory certainty for communities, industry and investors

• Implement the recommendations of the Queensland Floods Commission of Inquiry regarding the regulation of levees and the progression of the Brisbane River Catchment Flood Study.

• Achieve priority reforms in water metering, monitoring, licensing, management and planning.

• Implement vegetation management reforms to better balance economic development with environmental sustainability, and to reduce red tape.

• Review rural and tourism Land Act 1994 lease rentals, as part of the government’s commitment to build the four pillars of Queensland’s economy.

• Implement the coal seam gas engagement and compliance plan to balance the interests of industry, rural landholders, regional communities and the environment.

• Further progress online services for the mining sector (including lodgement of permit applications, communication of notices, access to the public register and delivery of local area permit reports).

• Commence the system for national electronic conveyancing in Queensland.

• Coordinate the government’s response to the State Development, Infrastructure and Industry Committee parliamentary inquiry into the future and continued relevance of government land tenure across Queensland.

In 2013–14, the department will continue to reduce red tape through the following:

• Continue to streamline and integrate the five resource tenure Acts.

• Modernise the tenure administration system and reduce the time taken for each tenure decision.

• Enable the government-supported recommendations of the parliamentary inquiry into the future and continued relevance of government land tenure across Queensland.

• Create simplified statewide vegetation maps to clearly define areas where regulations apply.

• Deliver a six-point action plan to improve the Land Access Framework and better balance the interests of landholders and resources.

• Review the strategic cropping land framework to streamline assessment requirements and better align with statutory regional planning outcomes.

Public Sector Renewal ProgramDNRM has been active in implementing the Public Sector Renewal Program, with the renewal agenda a key priority. This includes harnessing the innovation we have within DNRM to provide smarter solutions that improve service delivery.

Progress to date includes championing the work of the renewal program and raising awareness of renewal activities underway across government by:

• being the lead agency for Indigenous land reform as part of whole-of-government renewal processes being led by the Public Service Commission

• actively contributing to broader renewal objectives being progressed by the Public Service Commission following the Commission of Audit’s final report

• implementing a zero-based budget for the agency

• progressing transformational renewal projects in the areas of land, mines and vegetation, particularly

» reforming pastoral leases by ceasing onerous assessment processes on renewal, and introducing rolling renewal of these leases (greatly improving security of tenure and the first step in moving these tenures to as close to freehold as possible)

» reforming government land legislation to promote tenure certainty, promote economic development, empower local government and minimise government administration


» continuing the process of putting mining and resource tenures online, with associated streamlining reforms embedded in the online process

» reforming vegetation management to allow for clearing for new high-value agriculture projects, to move from a highly prescriptive compliance model to self-assessable codes and to remove a range of highly onerous restrictions on business in managing relatively low impact activities.

Also, we have been actively involved with the cultural renewal process across government, including:

• leading and participating in forums in Brisbane and regional locations

• attending employee forums in Brisbane and regional locations

• participating in the online pulse survey, with beneficial feedback from DNRM staff.

DNRM is working to implement the findings of the forums and the pulse survey into its management culture, to ensure all our staff are recognised as efficient providers of essential services for Queenslanders.

Strategic risks, opportunities and challengesThe following strategic challenges may impact the achievement of our vision and purpose:

• structural changes in the global economy

• fluctuations in global demand for geological resources, food and fibre

• rising and competing demand for land, water and geological resources

• fiscal restraint and changing levels of investor confidence and liquidity

• changes in the state’s royalty base

• carbon pricing and the impact on families, business and industry

• population growth and associated changes in development and amenity, particularly in regional areas

• skills demand and the impact of non-resident workforces on communities

• a sustained target of zero harm in the mining industry

• national water reform and national regulatory harmonisation processes

• climate variability and extreme weather events

• the pace and cost of scientific and technological development

• stakeholder expectations for greater input in decision-making

• impacts of resource industry activity on land, water and geological resources.


The department collects and manages an extensive and diverse range of information, including:

• statistical analyses related to activity levels

• descriptions of the geography of Queensland

• registries that secure rights to land and natural resources

• mine safety and health records.

Much of this is available to the public. For more information on DNRM’s Open Data Strategy, visit www.dnrm.qld.gov.au and search for ‘Open Data Strategy’.

The following DNRM data sets for annual reporting purposes are available on the open data portal, www.data.qld.gov.au:

• consultancy expenditure

• overseas travel report

• Queensland Multicultural Action Plan 2011–14.

The Queensland GlobeOn 3 April, Premier Campbell Newman launched the free Queensland Globe. This computer program opens up a vault of spatial data and provides countless opportunities across the property, development, education and tourism sectors.

The Queensland Globe adds state government data (including land tenure status, property boundaries, postcode and locality or electoral boundaries) to the readily available Google Earth.

The information in Queensland Globe will open up opportunities for the private sector, educational institutions and community groups. For example, the property development industry and potential home buyers will now be able to analyse flood lines from the 2011 and 2013 floods when evaluating a potential home or land purchase. Science and geography teachers now have a free and powerful tool to help students learn about our vast state, while high-quality aerial photography could be used to help attract investors from interstate and overseas.

Queensland Globe can be freely accessed by visiting www.dnrm.qld.gov.au and searching for ‘Queensland Globe’. It is fully compatible with android mobile and tablet devices.

Users of Queensland Globe are encouraged to provide feedback through the Lands Queensland Facebook page at www.facebook.com/LandQueensland.

Open data

www.dnrm.qld.gov.au

www.data.qld.gov.au

www.dnrm.qld.gov.au

www.facebook.com/LandQueensland


External scrutiny

Auditor-GeneralThis section provides information about significant external audits and reviews of the department during the 2012–13 financial year.

The Auditor-General is responsible for:

• performing annual audits of public sector clients, including the department

• providing Queensland Parliament with independent assessment of activities in the public sector

• compiling Auditor-General reports for the 2012–13 year.

The reports applicable to DNRM (numbers 5 and 7 for 2012–13) are discussed below. Some other Queensland Audit Office (QAO) reports issued in 2012–13 that were not targeted specifically at DNRM were forwarded to the department for review and implementation of any beneficial recommendations.

Report 5 for 2012–13—Results of audit: State public sector entities for 2011–12

The QAO tabled this report in the Legislative Assembly in November 2012. It was prepared for Queensland Parliament under section 60 of the Auditor-General Act 2009 for the summarised results of the 2011–12 financial statements for state government departments, statutory bodies and government-owned corporations and the entities they control. Primarily, the report deals with the audit opinions issued, but through the financial audit process it also considers the internal financial controls that operate within each entity.

The ministerial portfolio is responsible for mining and petroleum, land management and use, land titles, valuations, state land, land protection and Aboriginal and Torres Strait Islander land interests, and native title. For this portfolio, 71 public sector entities were required to produce financial statements.

The key findings were:

• 65 unqualified audit opinions were issued.

• Emphasis of matter paragraphs were included with the unqualified audit opinions of 59 small water bodies to draw attention to their preparation of special-purpose financial statements.

• Of the 65 entities’ financial statements, 36 were certified within their legislated time frame. A further 29 statements have been certified after the time frame.

• Of the 29 entities that did not meet the time frame, 28 were affected by time lags in correcting financial statement issues by water bodies. The other one was delayed by the audit opinion not being signed by the department within the time frame.

• Financial statements of 6 entities are yet to be finalised.

• While there has been some improvement over recent years, the timeliness of completing financial statements for small water bodies is an ongoing issue.

• The department experienced significant changes through the machinery-of-government process and these affected the timeliness of their financial statement preparation.

• Land under roads continues to be an issue.

• The small water bodies have a number of structural and financial reporting issues to contend with in 2012–13.

A further finding in this report was that all state public sector entities should review procurement practices for contract rollovers to ensure that there is appropriate contract succession planning and that value for money is being maintained. As a result, a new contract procurement procedure was approved for the department.


Report 7 for 2012–13—Results of audit: Queensland state government financial statements 2011–12

DNRM was one of a number of departments audited by the QAO in this cross-sector audit. The department is currently investigating all recommendations outlined in this report, which is available at www.qao.qld.gov.au.

Parliamentary committeesIn 2012–13, the Agriculture, Resources and Environment Committee sought advice from DNRM for:

• Report 21—Natural Resources and Mines Legislation Amendment Regulation (No. 2) 2012—SL 226

• Report 16—Land Title and Other Legislation Amendment Regulation (No. 1) 2012—SL 188

• Report 12—Water and Other Legislation Amendment Regulation (No. 1) 2012—SL 120

• Report 12—Vegetation Management Regulation 2012—SL 128.

The Agriculture, Resources and Environment Committee examined the following legislation from DNRM:

• Report 20—Land, Water and Other Legislation Amendment Bill 2013

• Report 19—Electronic Conveyancing National Law (Queensland) Bill 2012

• Report 18—Mining and Other Legislation Amendment Bill 2012

• Report 10—Aboriginal and Torres Strait Islander Land Holding Bill 2012

• Report 7—Mines Legislation (Streamlining) Amendment Bill 2012.

The Agriculture, Resources and Environment Committee undertook the inquiry into Queensland’s agriculture and resource industries (Report 13), to which DNRM provided information.

The State Development, Infrastructure and Industry Committee examined the Vegetation Management Framework Amendment Bill 2013 (Report 23) from DNRM.

The State Development, Infrastructure and Industry Committee undertook the inquiry into the future and continued relevance of government land tenure across Queensland (Report 25). DNRM led the development of a whole-of-government response to this inquiry and is, as a result, now leading ambitious reform to government land tenure legislation.

www.qao.qld.gov.au


Financial overviewThe department has delivered its financial performance objectives for 2012–13 in line with the government’s expectations. This was a significant achievement given the magnitude and complexity of the diverse functions of the department and the implementation of a number of major savings initiatives and reforms required to help restore the state’s fiscal position in 2012–13 and beyond.

The controlled operating result for 2012–13 was a deficit of $33.981 million (compared to a revised budgeted deficit of $25 million). The operating result was largely driven by payments made under the Australian Government’s Caring for our Country program (for which revenue was received in 2011–12 but for which payments were made in 2012–13) and a revaluation decrement expense for departmental land of $12.741 million. This has impacted the statement of comprehensive income, as the department does not have an asset revaluation reserve for this asset category. Excluding the revaluation decrement expense, the department’s controlled operating result was a deficit of $21.240 million.

A comprehensive set of financial statements covering all of the department’s financial activities is provided on pages 44–115 of this report.

The table below summarises the financial results of the controlled operations. It is important to note that financial data for 2011–12 only represents 2 months of trading as DNRM (due to the machinery-of-government change) whereas 2012–13 represents a full year of trading as DNRM.

Income

Total income for the department in 2012–13 was $473.388 million. Departmental service revenues were the main source of income and account for approximately 76% of the total income received for the reporting period. Other sources of income included user charges, fees and fines of $65.407 million, and grants and other contributions of $35.716 million.

The majority of user charges, fees and fines revenue came from services provided by DNRM such as titles searches, Simtars fee-for-service activities and storage relating to explosives reserves. Grants and contributions from other entities received in 2012–13 included Australian Government funding for the Caring for our Country and Water for our Future programs and GABSI, with the remainder primarily from industry and external bodies for specific programs.

Figure 1 illustrates the different categories of income earned by the department. All transactions are accounted for on an accrual basis.

Summary of financial performance

Category

For the financial year

2013

$’000

2012

$’000

Total income 473 388 99 523

Total expenses 507 369 102 997

Total operating results (33 981) (3 474)

Total assets 292 975 320 951

Total liabilities 55 086 59 031

Total equity 237 889 261 920

Total capital expenditure 15 290 2 435


Expenses

Total expenditure for the department in 2012–13 was $507.369 million. Figure 2 illustrates the different categories for expenditure.

Employee expenses includes wages, salaries, related taxes and superannuation contributions for 2012–13 and totalled $258.584 million, which represented 51% of total expenditure. It is important to note that this included $22.422 million in redundancy payments. Supplies and services for 2012–13 totalled $130.965 million, which represented 26% of total expenditure. Approximately 16% of the supplies and services costs were a result of payments to professional contractors predominantly for limited-life and externally funded programs such as Greenfields 2020, GABSI, Streamlining Mining Tenure approval process, Water for our Future and Abandoned Mines Land. Other

major expenses within this category included accommodation costs ($32.504 million) and ICT costs ($29.779 million).

Grants and subsidies totalled $79.056 million for 2012–13. This primarily represents payments under the Australian Government’s Caring for our Country program, the Natural Resource Management Investment Program, rural water use efficiency and disaster relief. Expenditure for grants and subsidies included $23.020 million relating to spends committed to the Caring for our Country program in 2011–12 but not expended until 2012–13.

A revaluation decrement of $12.741 million was recognised for land assets held by the department in 2012–13. The revaluation decrement for land was based on the valuation of individual land parcels and is mainly represented by a decrease in the value of land at the explosive reserves of $12.561 million.

Figure 1 DNRM’s income for 2012–13

Other expenses 2.2%Revaluation decrement 2.5%

Depreciation and amortisation 2.9%

Grants and subsidies 15.6% Supplies and

services 25.8%

Employee expenses 51.0%

Departmental services revenue 77.1%

Other revenue 1.2%

Grants and other contributions 7.5%

Property and other territorial revenue 0.3%

User charges, fees and fines 13.8%

Figure 2 DNRM’s expenditure for 2012–13


Financial position

The net asset position reported in the financial statements represents the net worth of the department. At 30 June 2013 this was $237.889 million, consisting mainly of the significant non-currents assets the department holds of $213.620 million. This includes $120.258 million in operational land and buildings to provide departmental services, $27.651 million in water network infrastructure assets and $30.627 million in software assets. In addition to property, plant and equipment, the department has cash holdings of $25.968 million and receivables of $50.221 million. This is offset by liabilities of $55.086 million, which mainly comprises payables to other departments.

Administered activities

The department administers some activities on behalf of the Queensland Government. The main source of administered revenue in 2012–13 was from fees and fines of $423.534 million and land assumed of $211.118 million. The administered revenue for fees and fines includes title registration fees, cash bids paid through competitive tendering for exploration rights, and the safety and health levy. The revenue for land assumed was for land transferred to the state from entities external to government and mainly consists of land opened as roads and land dedicated as reserves.

Safety and health levy

The safety and health levy funds Queensland’s mines safety and health regulatory function to provide an effective mine safety and health response capability and streamlined administrative processes. It is levied on the basis of the number of employees in the mining and extractive industries.

Safety and health levy financial results

2012–13

$’000

Income

Administered revenue 44 732

Other revenue 197

Total income 44 929

Expenses

Employee expenses 23 952

Supplies and services* 11 886

Grants and subsidies 65

Depreciation and amortisation 491

Losses on sale 27

Other expenses 32

Total expenses 36 453

Operating surplus/deficit 8 476

*Includes $0.806 million of capital expenditure.


In 2012–13, DNRM had a three-tiered governance structure comprising:

• Executive Management Group (EMG)

• EMG committees

• delivery groups.

The department also supported two networking and information forums:

• Senior Executive Service (SES) Forum

• Senior Management Forum (SMF).

This structure is shown in Figure 3.

Governance—management and structure

Minister

Minister and Senior Executives Group

Portfolio Budget Review Committee

Audit and Risk Committee

Resources Committee

ICT Investment and Strategy Committee

Work Health and Safety Governance Committee

Senior Executive Service Forum

Senior Management Forum

Networking and information forums

Agency Consultative Committee

Land, Property and Vegetation Delivery Group

Mines Delivery Group

Water Delivery Group

Governance framework

Director-General

Executive Management Group

Management framework

Figure 3 DNRM’s governance structure


Executive Management Group

Standing members

The members of EMG were:

• Director-General (chair)

• Deputy Director-General, Service Delivery

• Deputy Director-General, Policy and Program Support

• Deputy Director-General, Mine Safety and Health

• Deputy Director-General, Business and Corporate Partnerships

• Executive Director, South Region

• Executive Director, Central Region

• Executive Director, North Region

• Executive Director, Land and Mines Policy

• Executive Director, Water Policy

• Executive Director, Business and Stakeholder Solutions

• Chief Finance Officer and Executive Director, Finance and Corporate Operations

• Executive Director, Human Resources and Communications

• Executive Director, Business Renewal

• Director, Office of the Director-General (secretariat).

Invited members

Other officers were invited to attend meetings as required.

Purpose and role

EMG’s purpose is to collaborate to address the challenges facing the department and ensure optimal outcomes, in line with the department’s priorities.

The role of EMG is to act as a board of management for the department.

EMG considers the development and strategic direction of the department as a whole and advises on, endorses and approves significant policies and management decisions.

EMG receives and considers advice and recommendations from its committees.

EMG also:

• establishes the department’s strategic direction by identifying and prioritising issues and opportunities

• establishes the department’s strategic and corporate priorities

• establishes the department’s risk management agenda

• monitors the department’s financial and non-financial performance

• ensures the optimum use of human and financial resources

• promotes continuous improvement and quality client service

• recognises and acknowledges achievements and performance by work teams and individuals

• ensures the department’s strategic direction is understood and embraced by all departmental staff

• ensures that, where appropriate, there is an efficient integration of functions across the department

• develops and leads the organisation’s culture of integrity, which includes a focus on customers and service delivery

• minimises the opportunity for misconduct, while enhancing the department’s ethical standing, through the support, promotion and monitoring of the integrity framework and its targets

• ensures staff are well informed and operate according to the Code of conduct for the Queensland Public Service

• ensures the workplace health and safety of officers in the department

• encourages and develops the department’s future leaders

• monitors and reviews its own performance.


EMG is responsible for the efficient and effective operation of the department under the following legislation:

• Financial Accountability Act 2009 and Financial and Performance Management Standard 2009

• Public Service Act 2008

• Public Records Act 2002

• Public Sector Ethics Act 1994

• Right to Information Act 2009

• Information Privacy Act 2009.

EMG members are responsible for briefing their direct reports on relevant EMG deliberations and decisions.

Member profiles

Dan Hunt Director-General

Prior to Dan’s appointment as Director-General of DNRM in November 2012, he was Associate Director-General, Mines and Energy, Department of Employment, Economic Development and Innovation (DEEDI).

Dan was previously Director-General of the Department of Mines and Energy, where he oversaw the development and implementation of a number of significant mines and energy policy initiatives.

In his 35-year career with the public service, Dan has been responsible for the corporatisation of ports and rail infrastructure, the development of commercial contracts with Queensland Rail, the coordination of strategic policy and the reform of national transport.

Dan has investigated mechanisms to address some of the strategic issues confronting the resources sector, particularly the interrelationship of new technologies and their regulatory frameworks. He has been involved in the development of the liquefied natural gas to coal seam gas industry and related issues such as overlapping tenures and land access. Dan has also overseen the streamlining and transformation of the approvals process for mining exploration and development, which has improved transparency and convenience for industry.

Dan is a member of the National Carbon Capture and Storage Council, the Advisory Board of the Sustainable Minerals Institute at The University of Queensland and the Queensland Exploration Council.

Sue Ryan Deputy Director-General, Service Delivery

Sue provides strategic leadership and management to the divisions within Service Delivery. She is responsible for DNRM’s delivery of mining, water, land, vegetation and property services (including titles, valuations and spatial data).

Sue has significant experience in leading industry and government reforms in Queensland and was previously Deputy Director-General, Energy, DEEDI.

Sue has also held senior government roles in finance and ICT. She was Assistant Director-General in the former Department of Primary Industries and Fisheries, where she was responsible for developing strategies and programs to guide industry development and promote exports, trade and market opportunities. Sue holds a Bachelor of Business.

John Skinner Deputy Director-General, Policy and Program Support

John is responsible for mining, land and water policy, geological survey and coal seam gas compliance. He has held this position since the formation of DNRM in 2012. Prior to this (from June 2010), John was Deputy Director-General, Mining and Petroleum, DEEDI.

From 2005 to 2010, John was Deputy Director-General (Industry Services) in the former Department of Primary Industries. This portfolio held responsibility for research and development and regional services. His previous positions in this department were Executive Director, Corporate Performance, and General Manager, Human Resources.

John had 17 years experience in the Commonwealth Public Service prior to joining the Queensland Government in 1991. He holds a Master of Business, a Bachelor of Arts and a Certificate of Arbitration.


Paul Harrison Acting Deputy Director-General, Mine Safety and Health

Paul is a chemist with 25 years experience and expertise in various aspects of mine safety and health in the private and public sectors. This has included mine safety work in the United States, China and India, particularly in the area of improving mine gas monitoring practices and risk management. Prior to his current role, Paul was responsible for the management and strategic direction of Simtars, one of the world’s premier mine safety research and technical services organisations.

Paul has nearly 20 years experience in the control of coalmine fires and explosions. He has been involved in the ongoing development and support of mine gas monitoring technology to prevent mine fires and explosions. He was involved in the emergency responses to the Moura No. 2 and Pike River mine disasters and a number of mine fires. He was the manager of a major project using modified jet engines as inert gas generators for coalmine fire control (funded by the Australian Coal Association Research Program). The Queensland Government subsequently equipped the Queensland Mines Rescue Service with this capability, which has been used at Blair Athol and Southland mines in Australia, Loveridge Mine in the United States and Pike River Mine in New Zealand. Paul was responsible for the design and development of a new mobile mine gas laboratory for emergency response. This was used extensively at Carborough Downs Mine for a number of months in 2012 to assist in the containment of a spontaneous combustion and in the recovery and reopening of the mine.

Paul is a member of the Queensland Minerals Industry Safety and Health Centre Advisory Board and the Queensland Government representative on the Australian Government’s Coal Mining Abatement Technical Support Package Technical Advisory Committee.

Kate Callaghan Deputy Director-General, Business and Corporate Partnerships

Kate oversees the delivery of strategic corporate services and business support programs in human resources, finance and performance management to DNRM. Kate also oversees the legal and accommodation functions for six agencies.

Kate has vast experience leading large, diverse work groups. She has over 40 years experience in the Queensland Government and has held senior executive and management roles within a number of government organisations since 1987.

Prior to her current role, Kate was Group Executive for Corporate Relations within DEEDI, managing the marketing, communication, human resource, audit, legal and service delivery functions of the department. Kate was also responsible for leading change management for DEEDI.

Wally Kearnan Executive Director, South Region

Wally is responsible for the delivery of land, vegetation and water services in the department’s South Region. He also leads Queensland’s on-ground response in the Murray–Darling, manages the state’s role in GABSI and oversees the land held by the department for future dam sites.

Wally is also Service Delivery’s state leader for regional planning, strategic cropping land, vegetation management and the State Rural Leasehold Land Strategy.

Prior to rejoining the department in May 2011 as the Regional Services Director, South West, and then as General Manager, Coal and Coal Seam Gas Operations, Wally was Rural Advisor, Office of the Director-General, Department of the Premier and Cabinet.


Darren Moor Executive Director, Central Region

Darren plays a strategic leadership and management role, delivering key government business and services relating to water, land and vegetation for the Central Region. He provides strategic intelligence and direction to the development of DNRM policies and programs, in collaboration with Policy and Program Support. This ensures that concerns of key stakeholders and industry bodies as well as government objectives and regionally specific issues are addressed so that services are delivered to customers simply with minimum red tape. Darren is the departmental champion for Water Services business.

Darren represents the department and government in a range of high-level regional, state and national forums. Through these, he can gather information while promoting departmental services and developments across natural resource management initiatives. He is a member of the Lake Eyre Basin Senior Officers Group.

Darren has significant experience in leading government reforms in regional Queensland. He was previously Regional Manager, Land Services, for the Central Region.

Darren holds a Bachelor of Applied Science and a Graduate Diploma in Natural Resource Management.

Andrew Buckley Executive Director, North Region

Andrew plays a strategic leadership and management role, delivering key government business and services relating to water, land and vegetation for the North Region.

Andrew is Service Delivery’s statewide champion for state land asset management, state land management, and land allocation and sales. Andrew also works across the department on a number of committees including the Audit and Risk Committee and Work Health and Safety Governance Committee.

Andrew has over 20 years experience in the public and private sectors and has operated in the federal and state public systems in both central and line agencies. His responsibilities have included leading large regional operational teams as well as managing complex and sensitive domestic and international policy issues relating to natural resource management and industry development.

Andrew is currently undertaking an Executive Masters in Public Administration at the Australia and New Zealand School of Government. He has also completed government, business and science tertiary studies and a national industry strategic leadership development program.

Bernadette Ditchfield Executive Director, Lands and Mines Policy

Bernadette provides strategic leadership and advice for land and mining policy in Queensland.

Bernadette has a thorough knowledge of the Queensland Government and in particular strategic policy development. She has over 20 years experience in both the private and pubic sectors; her previous roles in the public service include senior positions in the Department of the Premier and Cabinet and Queensland Treasury and Trade.

Before her appointment to the role of Executive Director, Lands and Mines Policy in May 2013, Bernadette was Acting General Manager, Mining and Petroleum Industry Policy. Her current role complements her previous career roles in the property industry.

Lyall Hinrichsen Executive Director, Water Policy

Lyall leads the development of policy and strategy relating to the sustainable allocation and management of the state’s water resources. This includes developing and implementing water resource plans and providing Queensland representation on national water reform and associated partnerships. Some of his other responsibilities are coordinating the reform of water-related regulatory arrangements and overseeing major technical investigations such as the Brisbane River Catchment Flood Study.

Lyall was appointed General Manager for Water Allocation and Planning within the former Department of Environment and Resource Management in December 2011. This role was then expanded in late 2012 to include all aspects of strategic water policy in DNRM.

Lyall has a Bachelor of Agricultural Engineering as well as 24 years water industry experience in various leadership, policy and operational roles with the state government and in the private sector.


Rachael Cronin Executive Director, Business and Stakeholder Solutions

Rachael leads Business and Stakeholder Solutions (BaSS), a division within Policy and Program Support that provides a cross-agency function to innovate and implement the department’s strategic initiatives. BaSS plays a key role in partnering with other divisions to deliver business change and operational efficiency.

Rachael has a broad range of experience in both the public and private sectors. In her current role, and in her prior role in government, Rachael has been actively driving regulatory and business process reform for the mining and petroleum sector. She has been instrumental in delivering the Public Enquiry Report, the Local Area Mining Report, and MyMinesOnline (the custom permit administration system for the resources sector). These have positively influenced the way industry manage their business and have improved public access to government information.

Rachael’s roles in the private sector predominantly focused on business improvement. Her experience ranges from operational management within a development unit in an underground coalmine in Central Queensland to magazine production and print management nationally and abroad (United Kingdom and Canada).

Rachael holds a Master of Business Administration and Bachelors of Commerce and Law.

Katrina Platt Chief Finance Officer and Executive Director, Finance and Corporate Operations

Katrina is responsible for the efficient, effective and economical administration of financial operations and functions for the department. She also leads the delivery of several other corporate services functions including facilities management and web and creative services for multiple agencies under a corporate partnership model.

Katrina has held several positions in the public sector over the last 14 years, including key leadership roles in the provision of corporate services.

Katrina holds a Bachelor of Commerce majoring in Accounting and Finance, is a member of the Institute of Public Accountants and a graduate of the Australian Institute of Company Directors.

Brenda Parker Executive Director, Human Resources and Communications

Since joining the public service in 1992 as a trainee with the Department of Education, Brenda has progressed to become the Executive Director, Human Resources and Communications. In this role, Brenda has oversight of and is responsible for implementing an engaged and connected culture, building and retaining critical skills and resources, developing empowered leaders and improving internal engagement and development. She also focuses on policies, accountabilities and governance.

Having worked across all areas of corporate in various agencies within the public sector, Brenda is equipped with a vital skill set to ensure delivery on the government’s reform agenda.

In late 2012, Brenda worked with the Public Service Commission to lead the review of corporate services across 20 government agencies. After this, Brenda was involved in implementing these findings through the Public Sector Renewal Program, which emerged from the Commission of Audit recommendations.

Dermot Tiernan Executive Director, Business Renewal

Dermot has a leadership role in the analysis, development and implementation of options to support EMG in renewing the agency, including in mitigating associated risk. Dermot is also responsible for the timely delivery of the departmental strategic and operational plans and organisational performance reports, which show the department’s efficiencies in financial and service delivery.

During his 18-year public sector career, Dermot has held various policy and regulatory positions with the Queensland, New South Wales and Victorian governments. Prior to that he completed a cadetship with and worked as a journalist for metropolitan newspapers and completed two degrees in economics.


EMG committeesEMG is also supported by a number of committees, which provide advice and recommendations to EMG for consideration and approval.

EMG members play a key corporate governance role as members of these committees. Their role on these committees is to:

• provide strategic input into the issues being discussed

• represent the interests of the whole department and its stakeholders

• seek input and endorsement from relevant EMG members

• report back to EMG on issues raised in and outcomes of committee meetings (under a standing item on the EMG agenda).

EMG may also create separate committees at any time to perform specific tasks or assignments.

ICT Investment and Strategy Committee

This committee is chaired by the Deputy Director-General, Service Delivery. It was established to:

• ensure the department’s ICT investment and assets remain aligned with its business priorities and plans and support whole-of-government ICT directions

• provide whole-of-agency leadership, strategic direction and oversight in the planning and realisation of the portfolio of ICT-related initiatives in the department

• provide assurance to the Director-General that the department’s information management and ICT is being appropriately governed (to ensure return on investment through oversight of approved initiatives) and is meeting government priorities.

Work Health and Safety Governance Committee

This committee is chaired by the Deputy Director-General, Mine Safety and Health. Its role is to ensure that the department fulfils statutory obligations and organisational requirements for the management of workplace health and safety matters.

Delivery groupsTo develop and maintain strong links between the development and implementation of policy, DNRM has three key delivery groups to support the integration of strategic policy and service delivery. The groups discuss priorities, resources, risk, performance, implementation and business improvement.

The three groups are:

• Land, Property and Vegetation Delivery Group

• Mines Delivery Group

• Water Delivery Group.

Each group provides advice, information and recommendations to EMG members on:

• the achievement of departmental services and government priorities

• initiatives that improve the efficiency and effectiveness of the department

• strategic direction, planning and priorities, including proactive shaping of the business

• allocation and reallocation of resources

• business preparedness and risk relating to

» policy

» regulation and service delivery direction and gaps

» human resource management

» financial management

• any other issues as determined by the group and/or EMG.

Specifically, these groups are responsible for:

• analysing quarterly performance reports to ensure departmental targets and measures are being met (by addressing barriers and identifying improvements required)

• identifying and overseeing business improvement strategies and priorities

• developing and overseeing projects for the service/business area

• building a shared understanding of the business direction and major projects across all divisions of the department

• ensuring the design of our business processes is efficient and effective.


The groups meet monthly and are co-chaired by the Deputy Director-General, Policy and Program Support, and the Deputy Director-General, Service Delivery.

Other committees

Minister and Senior Executives Group

This group meets weekly to review issues of importance to the Minister for Natural Resources and Mines, such as:

• the Cabinet and Cabinet Budget Review Committee forward timetable

• the six-month action plan

• government commitments

• actions from the minister’s charter letter

• actions from the Queensland Floods Commission of Inquiry

• DNRM workforce management

• the DNRM renewal process.

The Minister for Natural Resources and Mines and the Director-General co-chair the meeting, which is attended by ministerial staff as well as a number of EMG members.

The meeting has a formal agenda and actions are formally recorded.

Portfolio Budget Review Committee

This committee has governance oversight of the allocation of DNRM’s resources to deliver government priorities and contribute to the government’s fiscal repair task.

The objectives of the committee include, but are not limited to:

• identifying priority areas and projects, and ensuring appropriate resourcing

• critically reviewing the progress of implementing savings that are already agreed

• driving the identification of further savings through

» assessing priorities

» regularly reviewing programs, projects and services

• reviewing other major sources of expenditure including

» travel

» contractor and consultant expenditure

» fixed and mobile telephones and accommodation

• considering revenue proposals

• ensuring alignment of all submissions from the Cabinet Budget Review Committee and budget documents with the outcomes of this committee.

Agency Consultative Committee

This committee is co-chaired by the Executive Director, Human Resources and Communications, and an employee representative from the unions. There are management representatives from across the department on the committee.

Union delegates who are employees of the department represent Together Queensland and the Association of Professional Engineers, Scientists and Managers Australia. Officials from both unions attend in an ex-officio capacity.

The role of the committee is to provide a forum to discuss a broad range of employee issues and provide an avenue for consultation between the department and unions. This includes ensuring the department implemented and complied with all relevant arrangements under the Industrial Relations Act 1999, the Public Service Act 2008 and the State Government Departments Certified Agreement 2009 (the Core Agreement).

The committee meets regularly and was the primary forum for consultation on the department’s current and emerging industrial issues, workforce strategy and organisational change issues.

Resources Committee

This committee is chaired by the Director-General. It is responsible for matters relating to finance, human resources and performance monitoring.


Networking and information forums

Senior Executive Service Forum

All available SES officers can participate in this quarterly forum.

The meetings mainly focus on corporate issues such as developing the department’s strategic plan and values. They also cover new corporate policies and their implications.

The sessions include workshops, discussion and information sharing, all with the aim of developing a strong departmental culture.

Senior Management Forum

This is an information and networking forum open to all senior officers and SES officers. Regional participation is encouraged through use of teleconference facilities.

Meetings are held approximately once a month.

The forum always includes an update from the Director-General. Speakers include both external and internal guests who present on a range of subjects.

Business and Corporate Partnerships BoardThe Business and Corporate Partnerships Board comprises:

• the Directors-General of

» Natural Resources and Mines

» Agriculture, Fisheries and Forestry

» Tourism, Major Events, Small Business and the Commonwealth Games

» Energy and Water Supply

» Environment and Heritage Protection

» National Parks, Recreation, Sport and Racing

• a representative from the Public Service Commission

• the Heads of Corporate for

» Hub A (Agriculture, Fisheries and Forestry, and Tourism, Major Events, Small Business and the Commonwealth Games)

» Hub B (Natural Resources and Mines, and Energy and Water Supply)

» Hub C (Environment and Heritage Protection, and National Parks, Recreation, Sport and Racing).

The board is responsible for the long-term performance, business success and timely delivery of departmental key priorities within the partnerships. It provides leadership and sets the strategic direction of the partnerships to enable them to meet their goals and objectives.

The partnerships deliver direct corporate services and business programs to support and reshape partnering agencies so that they can deliver on government priorities. Their focus is on ensuring economies of scale, service integration, consistent service delivery, scalability, flexibility and responsiveness.

The partnerships operate through three corporate hubs embedded in DNRM, the Department of Agriculture, Fisheries and Forestry, and the Department of Environment and Heritage Protection. Each hub delivers a set of core services (to the host and one adjunct agency) and a selection of cooperative services (to either five or six partnering agencies).

Organisational structureA new organisational structure came into effect on 3 September 2012. This enables the department to realign itself with the government’s priorities.

The structure is based around two key delivery groups (Service Delivery and Mine Safety and Health), which are complemented by two support groups (Policy and Program Support and Business and Corporate Partnerships), as shown in Figure 4. The policy and corporate groups enable service delivery and their focus reflects feedback from our service delivery experience.

Under a machinery-of-government change, the Office of Groundwater Impact Assessment joined DNRM on 1 January 2013. This function was previously under the Department of Energy and Water Supply portfolio.


Figure 4 DNRM’s organisational structure as at 30 June 2013

Director-GeneralNatural Resources and Mines

DirectorOffice of the Director-General

Commissioner for Mine Safety and Health

Service Delivery Deputy Director-General

Policy and Program Support

Deputy Director-General

Mine Safety and Health Deputy Director-General

Business and Corporate Partnerships

DNRM and DEWS Deputy Director-General

Executive Director North Region

Executive Director Lands and Mines Policy

Chief InspectorCoal Mines

Executive Director Human Resources and

Communications

Executive Director Central Region

Executive Director Water Policy

Chief InspectorMetalliferous Mines

Chief Finance Officer Finance and Corporate

Operations

Executive DirectorSouth Region

Executive Director Business and

Stakeholder Solutions

Chief InspectorPetroleum and Gas

Executive DirectorBusiness Renewal

Executive Director Operations Support

Executive DirectorAboriginal and Torres Strait Islander Land

Services

Chief InspectorExplosives

Chief Counsel In-House Legal

Executive DirectorValuer-General

State Valuations

Chief Government Geologist

Geological Survey of Queensland

Executive DirectorSimtars

Executive DirectorMining and Petroleum

Operations

Executive Director CSG Compliance Unit

Executive DirectorStatewide Operations

Executive Director Land and Spatial

Information

DirectorLegislation Support

Executive DirectorRegistrar of TitlesRegistrar of Water

Allocations Titles Registry

General ManagerOffice of Groundwater

Impact Assessment


Service Delivery is responsible for land, water and mining services. Land services incorporates titles registry, state valuations, spatial information, vegetation management functions, state land administration and allocation, state land management and natural resources technical assessment and monitoring.

This group consists of approximately 1640 departmental officers and has a strong regional presence.

Service Delivery works closely with Policy and Program Support to achieve key deliverables and reforms for the department.

Policy and Program Support delivers policy, assessment and compliance services in DNRM. As part of this service, the group provides expert advice on policy matters regarding land, water, mines and native title. In addition, it plays a pivotal role in ensuring that the coal seam gas industry complies with current laws and policies.

GSQ develops geoscientific and resource information. This information is critical in enhancing industry’s understanding of Queensland’s mineral and energy resource potential.

DNRM is committed to transforming our approach to service and ensuring that our services align with clients’ expectations. This objective is delivered in partnership with Service Delivery and is led by the Business and Stakeholder Solutions division within Policy and Program Support.

Mine Safety and Health ensures strong, independent regulation and an effective response capability. It builds industry awareness and skills, using research and new technologies to reduce safety and health risks in the mining, quarrying, explosives, and petroleum and gas industries. It also mitigates safety risks at abandoned mines.

Mine Safety and Health provides inspectorate services for mines, explosives and petroleum and gas as well as an abandoned mine lands program throughout the state. In addition, its centre of mining research excellence at Simtars provides mining research and consultancy services throughout the state, across Australia and internationally.

Specialist staff remained dedicated to providing safety and health outcomes to the mining, petroleum and gas, explosives and fireworks industries across the state, with major offices located in Brisbane, Ipswich, Woolloongabba, Rockhampton, Mackay, Townsville and Mount Isa.

This division continues to regulate more than 700 mines (employing approximately 57 000 workers, administering 2700 explosives licences and 6000 gas work licences and authorisations) and more than 450 petroleum and gas operations (including petroleum exploration and production facilities, pipelines, distribution networks and major gas users) across the state.

Business and Corporate Partnerships provide corporate services support to the department, covering human resource management, finance management, communications, accommodation, web and creative services, information technology, governance and strategy and legal services.

This group consists of approximately 190 departmental officers and also supports other government agencies by providing human resource management services, legal services, accommodation services, and web and creative services via partnering agreements. It is also responsible for the business renewal and performance management of DNRM.

The partnerships work closely with the other three groups to ensure that the department’s goals are met efficiently.


Hard work to prepare flood maps reaps rewardsThe department’s former Spatial Information unit (now the Land and Spatial Information Division) won the 2012 IPAA Queensland Public Sector Excellence Award for Best Practice in State Government for its Mapping the Floodplains of Queensland project.

The annual award ceremony was held at the Hilton Hotel, with representatives from both DNRM and the Queensland Reconstruction Authority (QRA) attending. The department’s Lex Irwin accepted the award and made a speech on behalf of DNRM and QRA.

This project was completed by 35 staff, each with some 35-plus years experience, and made Queensland the only Australian jurisdiction to have a statewide catchment-based understanding of its floodplains. This information is invaluable for disaster management and planning.

After the devastating floods of 2011, the challenge moved from disaster response to planning for the future by better preparing communities for floods. It was soon realised that Queensland did not have a detailed understanding of the extent of its floodplains. This information was urgently needed to support reconstruction efforts, so QRA called on Spatial Information to map all floodplains across the state—a very big task. Adding to the challenge of this large project was the need for the work to be done within 6 months, before the next wet season.

More than 8000 maps were produced within 7 months to support QRA as it helped Queensland communities rebuild.

SSQ call centre wins awardSmart Service Queensland (SSQ)—the call centre for the annual valuation program—has won the 2012 Australian Institute of Project Management Achievement Award for the State Valuation Service land valuation campaign, in the category of small projects (under $1 million).

The award was established to recognise, honour and promote outstanding achievements in program and project management. A winning project is one that demonstrates, through narratives and documentary evidence, outstanding achievement, excellence and/or innovation in the application of project management. Projects may be from either the public or private sector and from anywhere in the world.

The State Valuation Service implements an extensive communication campaign to underpin the delivery of more than 1.6 million statutory annual land valuations to all landholders in Queensland. An integral part of this is the SSQ call centre, which during the 60-day objection period handles thousands of enquiries from landholders wanting to find out more about their valuations.

The call centre provides a professional, timely, cost-effective and consistent response to these enquiries. Its operation has significantly improved service delivery. Complaints about service and departmental response times to valuation enquiries (which had been high) have been negligible since its inception in 2004.

The valuation call centre team comprised Louise Hepworth, Terry Wilkinson, Wayne Hoskins and Des Lucas. This team worked with SSQ to develop the contract, set the call centre response times, write the script content and train call centre operators. Also, they ‘floor-walked’ the call centre for the first couple of weeks to assist operators.

The project was delivered on time and under budget, and exceeded quality expectations. The project’s success can be attributed to a thorough understanding of the scope requirements and strong communication between all stakeholders.


Public Sector Ethics Act 1994During 2012–13, the department increased employee awareness and understanding of the Code of conduct for the Queensland Public Service through bulletins, intranet news items and face-to-face communication. Employees could also access the code on the department’s intranet. All employees were required to complete the online course ‘Code of conduct and ethical decision-making’ as part of their induction.

Employees were given access to education and training in public sector ethics and ethical decision-making in accordance with section 12K of the Public Sector Ethics Act 1994. This was achieved through a training course and assessment titled ‘Code of conduct and ethical decision-making’, which employees were required to complete as part of induction, and then as a short refresher course annually. This training was developed with other agencies through Business and Corporate Partnerships and was primarily supplied as an online interactive training program, with the option of face-to-face training where required.

In addition, presentations and discussions relating to the code, the importance of ethical behaviour and techniques to assist ethical decision-making were undertaken with a selection of managers and employees.

The department developed an integrity framework that provided the platform for implementing and progressing education and training for the code as well as related human resource management procedures and practices.

Human resource management procedures and practices developed or revised during the year were assessed by the department’s human resources and ethics practitioners to ensure compliance and alignment with the code. Online resources and specialist advice networks helped managers meet their ethical responsibilities and increased employee awareness and understanding.

The department’s strategic plan for 2012–16 was congruent with public sector ethics principles and the code. Our templates for performance and development agreements and plans incorporated ethics priorities, including education and training as required by section 12K of the Act. Managers were encouraged to raise integrity and accountability matters in the workplace for regular staff discussion and to draw their attention to their individual responsibilities as departmental employees.


Risk managementDNRM’s objective in 2012–13 was to integrate risk management into its core planning processes.

Risk management is an essential tool in corporate governance and an integral part of the department’s management process. All staff members are expected to manage risks related to their work. However, primary responsibility rests with EMG to ensure material risks to achieving the department’s objectives and strategies (outlined in the operational plan) are identified, assessed and treated or monitored.

As required by the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, the Audit and Risk Committee provides governance and oversight and supports the Director-General in meeting legislative obligations.

DNRM continues to review the departmental strategic and service delivery operational risks through the Audit and Risk Committee. EMG continues to provide strategic oversight and overarching direction.

The risk management framework and the composition of the Audit and Risk Committee membership changed to reflect the new environment. Central to this is the integration with the department’s strategic planning and reporting processes.

The department’s risk management framework, policy and procedure align with the direction set out in AS/NZS ISO 31000:2009, Risk management—principles and guidelines.

Audit and Risk CommitteeThe DNRM Audit and Risk Committee was established in accordance with section 35 of the Financial and Performance Management Standard 2009. The committee met four times in 2012–13 and had one out-of-session briefing. The committee observed the terms of its charter and the Audit committee guidelines: improving accountability and performance, issued by Queensland Treasury in June 2012.

The committee is directly responsible to the Director-General and has the authority to:

• conduct or authorise investigations into matters within its scope of responsibility

• access information, records and personnel of DNRM for such purpose

• request the attendance of any employee, including executive staff, at committee meetings

• conduct meetings with the DNRM internal auditors and external auditors, as necessary

• seek advice from external parties, as necessary.

The committee acts as a forum for dialogue between the Director-General, senior management, internal auditors and QAO. It is not an EMG subcommittee.

The functions and role of the committee do not diminish the statutory and regulatory duties and responsibilities of the Director-General, nor do they detract from management’s responsibilities in relation to corporate governance, internal control, fraud prevention and risk management.

The committee members are:

• Dan Hunt (chair), Director-General

• Susan Middleditch (external member), Deputy Director-General, System Support Services, Queensland Health

• Kate Callaghan, Deputy Director-General, Business and Corporate Partnerships

• Jim Grundy, Executive Director, Mining and Petroleum Operations

• Andrew Buckley, Executive Director, North Region

• Neil Bray, Executive Director, Valuer-General, State Valuations

• Grahame Wise, Executive Director, Statewide Operations, Mine Safety and Health

• Lyall Hinrichsen, Executive Director, Water Policy.

Governance—risk management and accountability


Committee members were provided with recommendations arising from QAO reports to parliament that relate to the department. During 2012–13, 16 recommendations were actioned and closed; 9 recommendations remain open as at 30 June 2013.

There is no remuneration for members of the committee.

Internal auditThe formation of the Queensland Government Internal Audit Service (QGIAS) was approved on 12 June 2012 as a result of restructures to government departments (Administrative Arrangements Order No. 3). The QGIAS is a business unit within the Department of Environment and Heritage Protection and provides internal audit services to five departments in a co-sourced arrangement.

The role, operating environment and operating parameters of QGIAS are established in its internal audit charter, which follows professional standards and the Audit committee guidelines: improving accountability and performance, issued by Queensland Treasury and Trade in June 2012.

The department’s internal audit unit provides independent assurance and advice to the Director-General, senior management and the Audit and Risk Committee. It enhances the department’s corporate governance environment through an objective, systematic approach to evaluating the effectiveness and efficiency of corporate governance processes, internal controls, risk assessment and management practices. This is in keeping with the role and responsibilities detailed in the Financial Accountability Act 2009.

QGIAS reports to the Audit and Risk Committee quarterly.

The internal audit function is independent of management and the external auditors.

In 2012–13, QGIAS:

• discharged the responsibilities established in the charter by executing the internal audit program of work prepared as a result of risk assessments, materiality and contractual and statutory obligations

• provided reports on results of internal audits to the Audit and Risk Committee and the Director-General

• monitored and reported on the status of implementation of internal audit and external audit recommendations (a management responsibility) to the Audit and Risk Committee

• liaised with QAO to ensure there was no duplication of ‘audit effort’

• supported management by providing advice on corporate governance and related issues, including fraud and corruption prevention and risk management

• allocated internal audit resources to those areas considered to present the greatest risk and where the work of internal audit can be valuable in providing positive assurance or identifying opportunities for positive change

• reviewed the departmental annual financial statements prior to presenting them to the Audit and Risk Committee

• provided secretariat support to the Audit and Risk Committee.

Major achievements of QGIAS in this period include:

• completing the 2012 bridging program of internal audits

• finalising the 2013 Internal Audit Plan program of work

• completing a review of fraud management practices

• conducting fraud risk assessment workshops

• performing computer-assisted audit techniques

• providing project assurance over the machinery-of-government finance systems project

• providing project assurance over the machinery-of-government human resources and payroll systems project.

Internal audit activities include:

• financial, compliance and operational reviews

• information system and data integrity reviews

• special review assignments as requested by management.

These activities are undertaken in line with the International standards for the professional practice of internal auditing and Queensland Treasury and Trade’s Audit committee guidelines.


Internal audit staff members belong to professional bodies including the Institute of Internal Auditors, CPA Australia and the Information Systems Audit and Control Association. The department continues to support the ongoing professional development of internal audit staff.

The internal audit unit believes there are controls in place to minimise the opportunity for fraud or mismanagement in those areas of the department that were subject to the program of internal audits as approved by the Director-General.

Information systems and recordkeeping

Information systems

DNRM continues to operate, maintain and develop a range of information systems to support services, initiatives and corporate operations. These include:

• Automated Titles System (ATS), which is a high-priority application for Queensland Government; the state’s land titles register

• Electronic Land and Vegetation Administration System (eLVAS), which provides for all land dealings under the Land Act 1994 and the Vegetation Management Act 1999

• Land Tenure Ledger (LTL), which maintains the accurate records of the current and historical financial position of land tenures within Queensland

• Queensland Valuation and Sales (QVAS), which maintains valuation information on 1.6 million properties within Queensland and provides statutory data items, facilities and functions prescribed in the Land Valuation Act 2010

• SmartMap Information Services (SMIS), which provides a single point of access to spatially located land information for the whole of Queensland Government

• Spatial Information Resource (SIR), which provides a corporate facility for the management, storage and delivery of spatial information that has an ‘authoritative source’ or ‘point of truth’

• Land and Resource Information Environment (LARIE), which is a spatial information environment for the delivery of major spatial applications

• Water Management System (WMS), which is the register of regulatory information relating to water licences and permits under the Water Act 2000, and development approvals under the Sustainable Planning Act 2009

• Hydstra, which is Queensland’s repository for technical surface water data including stream height, flow and quality

• Interactive Resource and Tenure Maps (IRTM), which continued to grow in usage and layers of spatial data available

• Mineral and Energy Resources Location and Information Network (MERLIN), which continued to be the main database for processing mining and petroleum tenders

• Queensland Digital Exploration Reports (QDEX), which continued to attract significant internet visits, with more than 2000 registered external users

• MyMinesOnline, which streamlines regulatory and other approval processes for mining and petroleum tenures

• HyLogger™, which is a non-destructive spectroscopic scanning technology developed by CSIRO that offers cost-effective means of capturing detailed mineralogical data along with a high-resolution digital image of the drill core in the original trays, digitising the whole core-logging process; DNRM are now scanning Queensland core samples via HyLogger and thus contributing to the national data set

• Google Earth Enterprise environment, which provides a common method of accessing and viewing a range of government information using Google Globe

• Spatial and Scientific Information Management for the Reef (SSIMR), which provides improved management of the Great Barrier Reef and is supported by the Queensland Spatial Information Portal (QSIP)

• Property Location Service, which is an online service used to validate property location details from the Queensland Address Management Framework.


Other major achievements in DNRM corporate and information systems in 2012–13 include:

• The Queensland Globe was successfully launched as part of DNRM’s Open Data Strategy. It is an innovative online tool that allows users to view and explore spatial data about Queensland using the Google Earth application. Users can access best available imagery, property boundaries, property addresses, SmartMaps and more.

• Stage 1 of the QVAS online lodgement and tracking of objections was completed. This allows landholders to submit information online to support objections to the annual valuation process.

• The Stock Routes Management System was developed to help local governments and DNRM meet their responsibilities.

• Significant progress has been made with COAG reforms within DRNM. These initiatives include NWMS and Property Exchange Australia (PEXA).

• The Large Spatial Data Online Delivery (LSDOD) project is underway. Its aim is to develop a web-based spatial data delivery system for GSQ.

Recordkeeping

DNRM’s recordkeeping strategy ensures that the department is compliant with the Public Records Act 2002, the Public Service Act 2008 and Information Standard 40: Recordkeeping.

Records Management Services delivers document and records management services to the department and provides support and training.

A major appraisal and disposal program has been established to identify time-expired records for disposal and to transfer permanent records to Queensland State Archives. Off-site record holdings have been identified and inherited legacy records have been appraised and processed.

A single consolidated recordkeeping platform has been agreed for the department and work has begun on migrating and decommissioning the legacy recordkeeping systems. The former DNRM RecFind system, containing more than 4 million records, has been migrated into the consolidated recordkeeping platform. A program of implementation and training for electronic documents and records is ongoing through the department. This includes the development of new e-learning training packages.


Workforce planning, attraction and retentionDuring 2012–13, Human Resources helped business units rebuild following the restructuring of the department. Business areas were asked to outline:

• their business (what is done and how)

• what has changed in their business and for their staff as a result of business renewal activities

• any resource or workforce management issues challenging their workplaces.

Human Resources developed strategies and work programs to support the priority areas identified. An initial focus was on succession strategies for executive and other critical roles. Performance and development agreements were used to identify successors and their capabilities.

Also, a practical management program for managers within DNRM and a leadership program targeting future leaders have been developed for delivery in 2013–14. These programs were identified as a top priority for the department following feedback from the business areas.

Over the coming financial year, Human Resources will roll out the programs outlined above. They will also help business units with more detailed workforce planning and capability development activities—these will ensure that the right people are in the right jobs at the right time to support service delivery.

Workforce profile

As at 30 June 2013, DNRM employed 2374.4 full-time equivalent staff.

Permanent retention/separation rate

The implementation of the whole-of-government business renewal initiative, the ending of temporary contracts, resignations and retirements led to the following rates for DNRM for 2012–13:

• annual permanent retention rate—81.88%

• annual permanent separation rate—18.83%.

Management and leadership development

A suite of courses delivered during 2012–13 focused on building the resilience of our people and increasing their capabilities during times of change. These included:

• Building resilience in the workplace—provides strategies for maintaining focus and morale and building resilience in times of change

• Leading resilient teams through change—helps managers and staff understand responses to change and develop practical strategies to build resilience in teams

• Leading during workplace change—helps senior executives and senior officers focus on leading themselves and others while building resilience in a changing environment

• The change room (online, supported by an online facilitator)—examines change and how to self-manage through the change process

• The cave (online)—provides practical advice for staff managing their career development.

The department participated in a number of leadership and management programs that were delivered by external facilitators, including:

• Public Sector Management Program—a public sector management development program delivered by the Queensland University of Technology; five departmental scholarships and one Public Service Commission scholarship were awarded

• ANZSOG Executive Fellows Program—a 3-week program to strengthen core skills needed to manage public sector organisations effectively in challenging times; undertaken by one senior executive.

Governance—human resources


Employee performance management framework

The department developed a comprehensive performance process that aligns to the broader Queensland Public Service Performance and Accountability Framework. There are two frameworks that the departmental performance process is applicable to: the Public Service Commission’s Chief Executive Framework and the Senior Executive Service Performance and Development Framework. This performance process included a new template and related material to encourage and support performance conversations. They emphasise clarifying performance objectives and standards, continuous improvement and capability development so that the department can achieve its business objectives and sustain a high-performing workforce.

The delivery of this framework has seen a cascade of performance and development agreements flowing from the Director-General and senior executives through organisational structures to include all staff. This provides a clear line of sight for staff, promotes accountability and shows how individual roles contribute to the broader departmental outcomes.

Flexible working arrangements: work–life balance

Policies, processes and information were provided to promote work–life balance and flexible working arrangements such as part-time work (including job-sharing arrangements), telecommuting, compressed hours, purchased leave and phased retirement. Information on breastfeeding in the workplace was reviewed and made available on the intranet. This included employee responsibilities and details of parenting facilities in major central business districts and regional locations.

Industrial and employee relations framework

The department actively pursues a positive relationship with its industrial partners to promote workplace harmony. The department meets all of its obligations under the relevant legislation, awards, agreements and public service directives.

The department’s Agency Consultative Committee is a joint union–employer committee. It provides a forum to discuss a broad range of employee issues and is an avenue for consultation between the department and relevant unions regarding current and emerging industrial issues.

Work health and safety

Strategy

In November 2012 the Director-General endorsed the department’s work health and safety (WHS) strategy for 2012–15. This strategy was developed from the Australian Work Health and Safety Strategy 2012–22, which provides a nationally coordinated approach to work health and safety.

The department’s strategy is to:

• promote consultation and a positive safety culture

• establish meaningful governance structures and accountabilities

• build WHS leadership and workforce capability

• implement an effective risk management framework.

Targets

DNRM has adopted three key national targets for 2012–15:

• 6% reduction in number of injuries

• 9% reduction in claims resulting in 1 or more weeks off work

• 9% reduction in claims due to body stressing.

The targets for 2012–13 are:

• 2% reduction in number of injuries

• 3% reduction in claims resulting in 1 or more weeks off work

• 3% reduction in claims due to body stressing.

These targets are reviewed quarterly and tabled at the Work Health and Safety Governance Committee. At 30 June 2013, DNRM had met all three 2012–13 targets.

An additional yearly target has been set by the committee: a 5% reduction in WorkCover statutory costs. At 30 June 2013, DNRM had met this target.


Communication of strategy

The WHS strategy is supported by a comprehensive communication strategy that outlines the tools and mechanisms to be used to ensure WHS information is communicated effectively across DNRM. The objectives of this communication strategy are to:

• provide a cultural change in WHS management for the department by integrating health and safety into standard business practices

• assist in launching the WHS strategy across the department

• develop and implement a number of WHS communication mechanisms and tools that will be used to maintain and enhance the WHS strategy’s presence across the department

• provide a framework for WHS consultative arrangements

• improve WHS performance by disseminating WHS information across the department to

» promote and raise awareness of health and safety matters

» maximise compliance with legislation, departmental policies, procedures and management systems.

Consultative arrangements

WHS is central to the success of the department. It is the recognition that a safe workplace is more easily achieved when leaders and workers communicate with each other about WHS issues, and work together to find solutions.

The WHS committees have distinct and clear functions as well as regular performance reviews to ensure intended outcomes are met. Consultation occurs across all levels within the department, recognising the diversity of the business while benefitting from shared knowledge, experience and systems.

The department has a number of WHS committees:

• The Work Health and Safety Governance Committee was established in November 2012 and ensures the WHS strategy appropriately manages the department’s WHS obligations. It includes members of EMG, senior leaders from across the department and the Manager, WHS Unit.

• The Work Health and Safety Consultative and Implementation Working Group Committee was established in February 2013 and focuses on implementing the key strategic initiatives of the WHS strategy across the department. Its members include key WHS operational groups (regional senior WHS advisors, trained safety advisors and delegates from the WHS Unit).

• Operational committees are established at a local level so that management and workers can jointly examine and discuss health and safety matters of mutual concern. They provide the opportunity for cooperative problem-solving and improved outcomes for health and safety.

DNRM’s Kevin Pokarier awarded Public Service MedalCongratulations to Kevin Pokarier on being awarded the Public Service Medal for outstanding public service, valuable contributions and service excellence to internal and external clients of DNRM.

Kevin is a mining registrar field and land access officer based in Emerald and is a highly valued member of the Mining and Petroleum Operations team. Kevin began work with the Department of Works and Housing, Brisbane, in 1967 and then transferred to the Magistrate Courts Service within the Department of Justice, serving in Kingaroy, Dalby and Clermont. He transferred to the Department of Mines and Energy in 1991 and has since provided exemplary service to the coal, mineral and small mining sectors in Central Queensland.

Kevin is known for his boundless enthusiasm, energy and commitment to supporting the development of Queensland’s mining sector. He has effectively mentored his team members and contributed to the growth and administration of the coal and small mining sectors. In particular, he has exhibited service excellence to internal and external clients, achieved more efficient processes, improved productivity and service delivery, and demonstrated outstanding leadership. Kevin has provided a sustained high level of performance above that normally expected of his position, always maintaining a focus on outcomes and recognisable benefits for the Queensland community and the resources sector.


Early retirement, redundancy and retrenchmentA program of redundancies was implemented during 2012–13. During the period, 305 employees received redundancy packages at a cost of $22 421 953.45. Employees who did not accept an offer of a redundancy were offered case management for a set period of time, where reasonable attempts were made to find alternative employment placements. At the conclusion of this period, and where it is deemed that continued attempts of ongoing placement were no longer appropriate, employees yet to be placed were terminated and paid a retrenchment package. During the period, two employees received retrenchment packages at a cost of $166 632.71.

Voluntary separation programA voluntary separation program was implemented during 2011–12. The program ceased during 2011–12; however, two employees received their voluntary separation packages during 2012–13, at a cost of $265 207.31.


Financial statements

Chief Finance Officer statementIn overseeing the financial activities of the Department of Natural Resources and Mines, I confirm that I have fulfilled the responsibilities of the Financial Accountability Act 2009 including:

• financial resource management including the establishment, maintenance and review of financial internal controls

• budget management

• preparation of financial information including annual financial statements to facilitate the discharge of the department’s statutory reporting obligation

• provision of advice on the effectiveness of accounting and financial management information systems and financial controls in meeting the department’s requirements

• provision of advice concerning the financial implications of, and financial risks to, the department’s current and projected services

• development of strategic options for the department’s future financial management and capability.

I have provided a statement to the Director-General as the accountable officer about the effectiveness, efficiency and economy of the financial internal controls of the department in conformance with section 57 of the Financial and Performance Management Standard 2009.

Katrina Platt

Chief Finance Officer and Executive Director, Finance and Corporate Operations



Financial Statements

for the Period 1 July 2012 to 30 June 2013

Contents

Page Number Foreword 2 Statement of Comprehensive Income 3 Statement of Financial Position 5 Statement of Changes in Equity 7 Statement of Cash Flows 8 Statement of Comprehensive Income by Major Departmental Services 10 Statement of Assets and Liabilities by Major Departmental Services 14 Notes to and forming part of the Financial Statements 19 Management Certificate 69 Independent Auditor’s Report 70

Foreword ............................................................................................................................................................ 46

Statement of Comprehensive Income .................................................................................................................. 47

Statement of Financial Position .......................................................................................................................... 49

Statement of Changes in Equity ...........................................................................................................................51

Statement of Cash Flows ..................................................................................................................................... 52

Statement of Comprehensive Income by Major Departmental Services................................................................ 54

Statement of Assets and Liabilities by Major Departmental Services .................................................................. 58

Notes to and forming part of the Financial Statements ........................................................................................ 62

Management Certificate .................................................................................................................................... 113

Independent Auditor’s Report ............................................................................................................................114


Page 2

Foreword The Department of Natural Resources and Mines (DNRM) is a Queensland Government department established under the Public Service Act 2008 and is controlled by the State of Queensland which is the ultimate parent entity. The head office and principal place of business of the department is: 61 Mary Street Brisbane QLD 4000 DNRM's financial statements cover the department and its controlled entities, and contain the following: Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Statement of Comprehensive Income by Major Departmental Services Statement of Assets and Liabilities by Major Departmental Services Notes to and forming part of the Financial Statements Management Certificate Independent Auditor’s Report A description of the nature of the department's operations and principal activities is included in the notes to these financial statements. For information in relation to these financial statements please telephone (07) 3238 3036 or visit the department's internet site http://www.dnrm.qld.gov.au Amounts shown in these financial statements may not add to the correct sub-totals or totals due to rounding.


Department of Natural Resources and Mines Statement of Comprehensive Income for the year ended 30 June 2013

Page 3 2012-13 Financial Statements

Note

2013

$’000 2012

$’000

Income from Continuing Operations

Departmental services revenue 2 364,998 68,823 User charges, fees and fines 3 65,407 15,703 Property and other territorial revenue 4 1,433 144 Grants and other contributions 5 35,716 14,495 Other revenue 7 5,789 300 Total Revenue 473,343 99,465 Gains 8 45 58 Total Income from Continuing Operations 473,388 99,523

Expenses from Continuing Operations

Employee expenses 9 258,584 44,279 Supplies and services 11 130,965 30,882 Grants and subsidies 12 79,056 13,201 Depreciation and amortisation 13 14,650 2,246 Impairment losses 14 241 116 Revaluation decrement 16 12,741 9,530 Other expenses 17 11,132 2,743 Total Expenses from Continuing Operations 507,369 102,997 Operating Result from Continuing Operations (33,981) (3,474)

Other Comprehensive Income

Items that will not be reclassified subsequently to Operating Result:

Increase (decrease) in asset revaluation surplus 29 7,564 11,605

Total Other Comprehensive Income 7,564 11,605 Total Comprehensive Income (26,417) 8,131

The accompanying notes form part of these statements.


Department of Natural Resources and Mines Statement of Comprehensive Income for the year ended 30 June 2013


Administered on a Whole-of-Government basis

Note

2013 $’000

2012 $’000

Income from Continuing Operations

Administered appropriation revenue 2 1,288 5,925 Fees and fines 3 423,534 47,815 Property and other territorial revenue 4 158,542 27,266 Land transfers inwards 6 211,118 57,108 Other revenue 7 2,890 649 Total Revenue 797,372 138,763

Total Income from Continuing Operations 797,372 138,763

Expenses from Continuing Operations Supplies and services 11 17 180 Grants and subsidies 12 9,037 3,726 Depreciation and amortisation 13 452 69 Impairment losses 14 3,037 1,918 Land transfers outwards 15 33,278 2,176 Revaluation decrement 16 1,615,822 2,052,531 Other expenses 17 14,201 3,933 Total Expenses from Continuing Operations 1,675,844 2,064,533 Net Operating Result before transfers to government (878,472) (1,925,770) Transfers of administered item revenue to government 571,674 57,223 (1,450,146) (1,982,993) Operating Result from Continuing Operations (1,450,146) (1,982,993)

Other Comprehensive Income Items that will not be reclassified subsequently to Operating Result: Increase (decrease) in asset revaluation surplus 29 443 45 Total Other Comprehensive Income 443 45 Total Comprehensive Income (1,449,703) (1,982,948)



Department of Natural Resources and Mines Statement of Financial Position as at 30 June 2013


Note

2013 $’000

2012 $’000

Current Assets Cash and cash equivalents 18 25,968 61,657 Receivables 19 50,221 37,851 Inventories 20 2,065 2,292 Other 21 883 880 Non-current assets classified as held for sale 22 218 218 Total Current Assets 79,355 102,898 Non-Current Assets Property, plant and equipment 23 182,993 190,110 Intangible assets 24 30,627 27,943 Total Non-Current Assets 213,620 218,053 Total Assets 292,975 320,951

Current Liabilities Payables 25 39,601 12,849 Accrued employee benefits 26 5,675 6,868 Proposals and deposits 27 27 30 Other 28 9,783 39,284 Total Current Liabilities 55,086 59,031 Total Liabilities 55,086 59,031

Net Assets 237,889 261,920

Equity Contributed equity 256,174 253,789 Retained surpluses/(deficit) (37,455) (3,474) Asset revaluation reserve 29 19,169 11,605 Total Equity 237,888 261,920



Department of Natural Resources and Mines Statement of Financial Position as at 30 June 2013



Note

2013 $’000

2012 $’000

Current Assets Cash and cash equivalents 18 20,907 40,159 Receivables 19 54,544 79,769 Non-current assets classified as held for sale 22 3,597 4,094 Total Current Assets 79,048 124,022

Non-Current Assets Receivables 19 39,922 45,634 Property, plant and equipment 23 62,783,338 64,214,978 Total Non-Current Assets 62,823,260 64,260,613 Total Assets 62,902,308 64,384,635

Current Liabilities Payables 25 54,089 54,751 Proposals and deposits 27 14,293 20,972 Other 28 30,030 17,906 Total Current Liabilities 98,412 93,629 Non-Current Liabilities Other 28 264 262 Total Non-Current Liabilities 264 262 Total Liabilities 98,677 93,892

Net Assets 62,803,631 64,290,743

Equity Contributed equity 66,236,281 66,273,691 Retained surpluses/(deficit) (3,433,139) (1,982,993) Asset revaluation reserve 29 489 45 Total Equity 62,803,631 64,290,743



Department of Natural Resources and Mines Statement of Changes in Equity for the year ended 30 June 2013



Contributed equity Opening balance 66,273,691 - Transactions with owners as owners: Appropriated equity injections 2 1,980 (13,226) Non-appropriated equity injections/(withdrawals) (108,693) Net asset adjustment to other agencies 69,303 (20,800) Net assets received (transferred via machinery-of-government change) 66,307,717 Balance at 30 June 66,236,281 66,273,691

Accumulated surplus Opening balance (1,982,993) - Operating result from continuing operations (1,450,146) (1,982,993) Balance at 30 June (3,433,139) (1,982,993) Asset revaluation surplus Opening balance 45 - Revaluation increments/(decrements) 29 443 45 Balance at 30 June 488 45

Total Equity 62,803,631 64,290,743


Note

2013 $’000

2012 $’000

Contributed equity Opening balance 253,789 - Transactions with owners as owners: Appropriated equity injections 2 5,050 (905) Net asset adjustment to other agencies 188 - Net assets received (transferred via machinery-of-government change) 47 254,694 Non-appropriated equity injections/(withdrawals) (2,900) - Balance at 30 June 256,174 253,789

Accumulated surplus Opening balance (3,474) - Operating result from continuing operations (33,981) (3,474) Balance at 30 June (37,455) (3,474)

Asset revaluation surplus Opening balance 11,605 - Revaluation increments/(decrements) 29 7,564 11,605 Balance at 30 June 19,169 11,605

Total Equity 237,888 261,920


Department of Natural Resources and Mines Statement of Cash Flows for the year ended 30 June 2013


Note

2013 $’000

2012 $’000

Cash flows from operating activities Inflows: Departmental services receipts 358,758 64,909 User charges 62.489 6,296 Grants and other contributions 35,716 17,231 Property and other territorial receipts 1,303 (1,817) GST input tax credits received from ATO 16,945 - GST collected from customers 2,361 - Other 5,569 256 Outflows: Employee expenses (259,788) (50,267) Supplies and services (123,774) (25,330) Grants and subsidies (72,521) (12,211) GST paid on purchases (16,945) - GST remitted to ATO (2,473) - Other (27,606) 166 Net cash provided by (used in) operating activities 31 (19,968) (767) Cash flows from investing activities Inflows: Sales of property, plant and equipment 260 350 ` Outflows: Payments for property, plant and equipment (8,985) (2,435) Payments for intangibles (6,305) - Net cash provided by (used in) investing activities (15,030) (2,085) Cash flows from financing activities Inflows: Equity injections 5,295 -

Outflows: Equity withdrawals (3,086) (993) Non appropriated equity withdrawals (2,900) - Net cash provided by (used in) financing activities (691) (993)

Net increase/(decrease) in cash and cash equivalents (35,688) (3,845) Cash and cash equivalents at beginning of financial year 61,657 65,502 Cash and cash equivalents at end of financial year 18 25,969 61,657 The accompanying notes form part of these statements.


Department of Natural Resources and Mines Statement of Cash Flows for the year ended 30 June 2013



Note

2013 $’000

2012 $’000

Cash flows from operating activities Inflows: Administered appropriation revenue received from Queensland Treasury and Trade 8,095 5,742

Fees and fines 422,931 34,505 Property and other territorial receipts 156,559 19,394 GST input tax credits received from ATO 684 - GST collected from customers 7,234 - Other (4,612) 1,005 Outflows: Net administered appropriation revenue returned to Queensland Treasury and Trade (546,342) (19,042)

Supplies and services 90 (77) Grants and subsidies (3,302) 105 GST paid on purchases (684) - GST remitted to ATO (6,849) - Other (10,421) (8,344) Net cash provided by (used in) operating activities 31 23,383 33,288 Cash flows from investing activities

Inflows: Sales of property, plant and equipment 57,674 4,571 Finance lease redeemed – state land 7,178 679 Outflows: Payments for property, plant and equipment (20) (161) Finance leases – state land (1,158) (290) Net cash provided by (used in) investing activities 63,674 4,799 Cash flows from financing activities Inflows: Equity injections 2,100 - Outflows: Equity withdrawals (120) - Non appropriated equity withdrawals (108,289) (13,226) Net cash provided by (used in) financing activities (106,309) (13,226)

Net increase/(decrease) in cash and cash equivalents (19,252) 24,861 Cash Transfers from MoG - 15,298 Cash and cash equivalents at beginning of financial year 40,159 - Cash and cash equivalents at end of financial year 18 20,907 40,159



Department of Natural Resources and Mines Statement of Comprehensive Income by Major Departmental Services for the year ended 30 June 2013


Mining & Petroleum

Mine Safety & Health Land Water

Corporate Partnership

(3) TOTAL

2013 2013 2013 2013 2013 2013

$’000 $’000 $’000 $’000 $’000 $’000

Income from continuing operations (1) Departmental services revenue 58,276 52,176 139,454 106,702 8,390 364,998 User charges 2,350 13,665 44,335 5,056 - 65,406 Property and other territorial revenue 12 251 1,157 14 - 1,434 Grants and other contributions 971 833 16,625 17,287 - 35,716 Other revenue 3,152 266 1,659 712 - 5,789 64,761 67,191 203,230 129,771 8,390 473,343 Gains - 2 15 28 - 45 Total income from continuing operations 64,761 67,193 203,245 129,799 8,390 473,388 Expenses from continuing operations (2) Employee expenses 41,912 34,514 113,079 61,703 7,376 258,584 Supplies and services 17,285 23,044 48,931 40,691 1,014 130,965 Grants and subsidies 806 84 35,089 43,077 - 79,056 Depreciation and amortisation 2,120 1,701 6,498 4,331 - 14,650 Impairment losses 1 114 (1) 127 - 241 Revaluation decrement - - 12,741 - - 12,741 Other expenses 738 1,482 8,084 828 - 11,132 Total expenses from continuing operations 62,862 60,939 224,421 150,757 8,390 507,369 Operating result from continuing operations 1,899 6,254 (21,176) (20,958) - (33,981)

Allocation of income and expenses to corporate services (disclosure only):

Income 7,360 4,335 12,210 8,757 8,390 41,052 Expenses 4,681 4,549 25,555 8,098 8,390 51,273

(1) Refer to Note 1 for a description of major departmental services. (2) Corporate services income and expenses relating to DNRM activities have been allocated to respective

departmental services. (3) Income and expenses attributed to other agencies through corporate partnership activities are shown

separately and not allocated across department services. Refer to note 1(x). The accompanying notes form part of these statements.




Mining &

Petroleum * Mine Safety

& Health * Land Water TOTAL

2012 2012 2012 2012 2012

$’000 $’000 $’000 $’000 $’000

Income from continuing operations Departmental services revenue 12,321 9,438 29,656 17,408 68,823 User charges 55 3,368 12,134 146 15,703 Property and other territorial revenue - - 60 84 144 Grants and other contributions 991 - 465 13,039 14,495 Other revenue 18 105 3 174 300 13,385 12,911 42,318 30,851 99,465

Gains - - 55 3 58 Total income from continuing operations 13,385 12,911 42,373 30,854 99,523 Expenses from continuing operations Employee expenses 5,541 6,413 22,196 10,129 44,279 Supplies and services 5,425 5,022 11,683 8,752 30,882 Grants and subsidies 4,341 - 2,157 6,703 13,201 Depreciation and amortisation 172 314 1,014 746 2,246 Impairment losses - - - 116 116 Revaluation decrement (42) 5,894 3,578 100 9,530 Other expenses 434 439 1,472 398 2,743 Total expenses from continuing operations 15,871 18,082 42,100 26,944 102,997 Operating result from continuing operations (2,486) (5,171) 273 3,910 (3,474) Allocation of income and expenses to corporate services (disclosure only): Income 1,058 810 3,469 1,583 6,920 Expenses 1,058 810 3,469 1,583 6,920

* The Departmental service of Mines from 2011-12 has now been split into Mine Safety and Health and Mining & Petroleum. The accompanying notes form part of these statements.





Mining & Petroleum

Mine Safety & Health Land Water TOTAL

2013 2013 2013 2013 2013

$’000 $’000 $’000 $’000 $’000

Income from continuing operations Departmental services revenue 185 - 3 1,100 1,288 User charges 153,224 51,684 211,328 7,298 423,534 Property and other territorial revenue 66,448 - 89,973 2,121 158,542 Land transfers inwards - - 211,118 - 211,118 Other revenue 27 5 2,854 3 2,890 219,884 51,689 515,277 10,521 797,372 Gains - - - - - Total income from continuing operations 219,884 51,689 515,277 10,521 797,372 Expenses from continuing operations Supplies and services 7 - 10 - 17 Grants and subsidies - - 7,937 1,100 9,037 Depreciation and amortisation 452 - - - 452 Impairment 1,586 - 1,364 87 3,037 Land transfers outwards - - 33,278 - 33,278 Revaluation decrement - - 1,615,822 - 1,615,822 Other expenses - - 14,201 - 14,201 Net Operating result before transfers to government 2,045 - 1,672,612 1,187 1,675,844

Transfers of administered item revenue government 214,764 50,506 297,198 9,206 571,674

Operating result from continuing operations 3,075 1,183 (1,454,533) 128 (1,450,146)






Mining & Petroleum *

Mine Safety & Health * Land Water TOTAL

2012 2012 2012 2012 2012

$’000 $’000 $’000 $’000 $’000

Income from continuing operations Departmental services revenue 5,754 171 - - 5,925 User charges 532 788 43,915 2,580 47,815 Property and other territorial revenue 12,879 - 14,125 262 27,266 Land transfers inwards - - 57,108 - 57,108 Other revenue 7 - 642 - 649 19,172 959 115,790 2,842 138,763 Gains - - - - - Total income from continuing operations 19,172 959 115,790 2,842 138,763 Expenses from continuing operations Supplies and services - 172 8 - 180 Grants and subsidies - - 3,726 - 3,726 Depreciation and amortisation 34 - 33 2 69 Impairment losses - - 1,918 - 1,918 Land transfers outwards - - 2,176 2,176 Revaluation decrement (5,220) - 2,057,751 - 2,052,531 Other expenses (275) - 4,208 3,933 Total expenses from continuing operations (5,461) 172 2,069,820 2 2,064,533 Transfers of administered item revenue government 13,695 787 42,615 126 57,223

Operating result from continuing operations 10,938 - (1,996,645) 2,714 (1,982,993)

* The Departmental service of Mines from 2011-12 has now been split into Mine Safety and Health and Mining and Petroleum. The accompanying notes form part of these statements.


Department of Natural Resources and Mines Statement of Assets and Liabilities by Major Departmental Services as at 30 June 2013


Mining & Petroleum


2013 2013 2013 2013 2013

$’000 $’000 $’000 $’000 $’000

Current assets Cash and cash equivalents 808 5,355 17,914 1,891 25,968 Receivables 1,563 10,357 34,643 3,658 50,221 Inventories - - - 2,065 2,065 Other 137 133 376 237 883 2,508 15,845 52,933 7,851 79,137 Non-current assets classified as held for sale - - 218 - 218

Total current assets 2,508 15,845 53,151 7,851 79,355 Non-current assets Property, plant and equipment 14,652 52,634 87,240 28,467 182,993 Intangibles 7,620 - 19,833 3,174 30,627 Total non-current assets 22,272 52,634 107,073 31,641 213,620 Total assets 24,780 68,479 160,224 39,492 292,975 Current liabilities Payables 3,680 5,065 21,918 8,938 39,601 Accrued employee benefits 951 774 2,565 1,385 5,675 Proposals and deposits - - 27 - 27 Other 704 486 5,151 3,442 9,783 Total current liabilities 5,335 6,325 29,661 13,765 55,086 Total liabilities 5,335 6,325 29,661 13,765 55,086 Net assets 19,445 62,154 130,563 25,727 237,889

The department has systems in place to allocate assets and liabilities by departmental service. The accompanying notes form part of these statements.




Mining & Petroleum


2012 2012 2012 2012 2012

$’000 $’000 $’000 $’000 $’000

Current assets Cash and cash equivalents 7,042 46,670 30,321 (22,376) 61,657 Receivables 1,960 12,988 8,687 14,216 37,851 Inventories - - 2,292 - 2,292 Other 23 23 733 101 880 9,025 59,681 42,033 (8,059) 102,680

Non-current assets classified as held for sale - - - 218 218

Total current assets 9,025 59,681 42,033 (7,841) 102,898 Non-current assets Property, plant and equipment 14,364 51,599 96,443 27,704 190,110 Intangibles 4,998 - 19,162 3,783 27,943 Total non-current assets 19,362 51,599 115,605 31,487 218,053 Total assets 28,387 111,280 157,638 23,646 320,951 Current liabilities Payables 2,410 3,317 4,256 2,866 12,849 Accrued employee benefits 950 773 3,549 1,596 6,868 Proposals and deposits - - 30 - 30 Other 3,858 2,661 32,765 - 39,284 Total current liabilities 7,218 6,751 40,600 4,462 59,031 Total liabilities 7,218 6,751 40,600 4,462 59,031 Net assets 21,169 104,529 117,038 19,184 261,920






Mining &

Petroleum Mine Safety &

Health Land Water TOTAL

2013 2013 2013 2013 2013

$’000 $’000 $’000 $’000 $’000

Current assets Cash and cash equivalents 13,040 - 7,867 - 20,907 Receivables - - 54,544 - 54,544 13,040 - 62,411 - 75,451

Non-current assets classified as held for sale - - 3,597 - 3,597 Total current assets 13,040 - 66,008 - 79,048 Non-current assets Receivables - - 39,922 - 39,922 Property, plant and equipment 23,348 - 62,624,366 135,624 62,783,338 Total non-current assets 23,348 - 62,664,288 135,624 62,823,260 Total assets 36,388 - 62,730,296 135,624 62,902,308 Current liabilities Payables 1,058 - 53,031 - 54,089 Proposals and deposits - - 14,293 - 14,293 Other liabilities 18,837 - 11,193 - 30,030 Total current liabilities 19,895 - 78,517 - 98,412 Non-current liabilities Other liabilities 264 - - - 264 Total non-current liabilities 264 - - - 264 Total liabilities 20,159 - 78,517 - 98,676 Net assets 16,229 - 62,651,779 135,624 62,803,632






Mining &

Petroleum Mine Safety &

Health Land Water TOTAL

2012

2012 2012 2012 2012

$’000 $’000 $’000 $’000 $’000

Current assets Cash and cash equivalents 30,860 - 6,703 2,596 40,159 Receivables 3,193 - 75,521 1,055 79,769 Other - - - - - 34,053 - 82,224 3,651 119,928 Non-current assets classified as held for sale - - 4,094 - 4,094 Total current assets 34,053 - 86,318 3,651 124,022 Non-current assets Receivables - - 45,634 - 45,634 Property, plant and equipment 65,475 - 64,148,113 1,390 64,214,978 Total non-current assets 65,475 - 64,193,747 1,390 64,260,612 Total assets 99,528 - 64,280,065 5,041 64,384,634 Current liabilities Payables 12,842 - 40,853 1,056 54,751 Proposals and deposits - - 20,972 - 20,972 Other liabilities 17,593 - 313 - 17,906 Total current liabilities 30,435 - 62,138 1,056 93,629 Non-current liabilities Other liabilities 262 - - - 262 Total non-current liabilities 262 - - - 262 Total liabilities 30,697 - 62,138 1,056 93,891 Net assets 68,831 - 64,217,927 3,985 64,290,743

The department has systems in place to allocate assets and liabilities by departmental service. The accompanying notes form part of these statements


Department of Natural Resources and Mines Notes to and forming part of the 2012-13 Financial Statements


Table of Contents Note Page

1 Objectives and principal activities of the department 19 2 Reconciliation of payments from consolidated fund 33 3 User charges, fees and fines 34 4 Property and other territorial revenue 34 5 Grants and other contributions 35 6 Land transfers inwards 35 7 Other revenue 35 8 Gains 36 9 Employee expenses 36

10 Key Executive Management Personnel and Remuneration 37 11 Supplies and services 40 12 Grants and subsidies 40 13 Depreciation and amortisation 41 14 Impairment losses 41 15 Land transfers outwards 42 16 Revaluation decrement 42 17 Other Expenses 43 18 Cash and cash equivalents 44 19 Receivables 44 20 Inventories 46 21 Other assets 46 22 Non-current assets classified as held for sale 46 23 Property, plant and equipment 47 24 Intangibles 51 25 Payables 52 26 Accrued employee benefits 52 27 Proposals and deposits 53 28 Other liabilities 53 29 Asset revaluation surplus by class 53 30 Restructuring of administrative arrangements 55 31 Reconciliation of operating result from continuing operations to net cash 57 32 Commitments for expenditure 59 33 Contingencies 60 34 Interest in joint ventures 61 35 Financial Instruments 62 36 Trust transactions and balances 67

Note

1 Objectives and principal activities of the department ...................................................................................... 63

2 Reconciliation of payments from consolidated fund ........................................................................................ 77

3 User charges, fees and fines ............................................................................................................................ 78

4 Property and other territorial revenue ............................................................................................................. 78

5 Grants and other contributions ........................................................................................................................ 79

6 Land transfers inwards .................................................................................................................................... 79

7 Other revenue ................................................................................................................................................. 79

8 Gains ..............................................................................................................................................................80

9 Employee expenses ........................................................................................................................................ 80

10 Key Executive Management Personnel and Remuneration............................................................................... 81

11 Supplies and services ....................................................................................................................................84

12 Grants and subsidies .....................................................................................................................................84

13 Depreciation and amortisation ....................................................................................................................... 85

14 Impairment losses ......................................................................................................................................... 85

15 Land transfers outwards ................................................................................................................................86

16 Revaluation decrement ..................................................................................................................................86

17 Other Expenses ............................................................................................................................................. 87

18 Cash and cash equivalents ............................................................................................................................88

19 Receivables ...................................................................................................................................................88

20 Inventories ....................................................................................................................................................90

21 Other assets ..................................................................................................................................................90

22 Non-current assets classified as held for sale ................................................................................................90

23 Property, plant and equipment ...................................................................................................................... 91

24 Intangibles ................................................................................................................................................... 95

25 Payables .......................................................................................................................................................96

26 Accrued employee benefits ...........................................................................................................................96

27 Proposals and deposits ................................................................................................................................. 97

28 Other liabilities ............................................................................................................................................. 97

29 Asset revaluation surplus by class ................................................................................................................ 97

30 Restructuring of administrative arrangements ..............................................................................................99

31 Reconciliation of operating result from continuing operations to net cash .....................................................101

32 Commitments for expenditure ......................................................................................................................103

33 Contingencies ............................................................................................................................................. 104

34 Interest in joint ventures ..............................................................................................................................105

35 Financial Instruments .................................................................................................................................. 106

36 Trust transactions and balances .................................................................................................................... 111




1. Objectives and principal activities of the department Role of the department DNRM manages the productive and sustainable use of Queensland’s natural resources: our land, water and minerals for the benefit of all Queenslanders. Departmental vision To be a world leader in sustainable resource management. Objectives of the department The department’s objectives are to achieve a globally competitive mining, petroleum and gas industry, a safe and healthy resources industry, sustainable and productive use of land and water resources, balance in access to and use of natural resources, and regulatory certainty for communities, industry and investors. Sources of Departmental Revenue The department is principally funded for the services it delivers by parliamentary appropriations, with further funding sourced from: Sales of maps, cadastral and title searches, storage fees for explosives, other fees for service activities from

safety in mines testing. Initiative funding from the Australian Government and industry including the Water for the Future program,

Great Artesian Basin Sustainability, Caring for our Country and Carbon Geostorage.

Major Departmental Services Mining and petroleum services The objectives of this service area are to: encourage exploration and investment; and support industry to develop new projects and approaches. The functional services: are Mining and Petroleum Industry Policy; Mining and Petroleum Operations; and Geological Survey of Queensland. Mine safety and health services The objectives of this service area are to: ensure strong, independent regulation; ensure an effective response capability; build industry awareness and skills; use research and new technologies to reduce safety and health risks in the mining, quarrying, explosives and petroleum and gas industries; and mitigate safety risks at abandoned mines. The functional services are: Mines Inspectorate; Petroleum Gas Inspectorate; Explosives Inspectorate; and the Safety in Mines, Testing and Research Station (SIMTARS). Water services The objectives of this service area are to: provide certainty in water access entitlements; plan and manage the allocation and sustainable use of Queensland's water resources; account for and monitor the quantity, availability and condition of water resources; and increase the productive use of Queensland's water resources without compromising sustainability. The functional services are: Water Resource Strategy; Water Resource Allocation and Planning; Water Resource Information and Catchment Management; and Natural Resources Operations. Land services The objectives of this service area are to: provide clarity to landholders and developers on native vegetation clearing; ensure Indigenous land interests are considered and supported; represent the Queensland Government in the resolution of native title claims; provide certainty in land titling, mapping and spatial information and accurate valuations; plan and manage the allocation and use of land resources; account for and monitor the quantity, availability and condition of land resources; and increase the productive use of Queensland's land resources without compromising sustainability. The functional services are: Aboriginal and Torres Strait Islander Land Services; Land Management and Use; Titles Registration; State Valuation Services; and Natural Resources Operations. Summary of significant accounting policies

(a) Statement of Compliance The department has prepared these financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009. 1. Objectives and principal activities of the department (continued)




(a) Statement of Compliance (continued) These general purpose financial statements have been prepared on an accrual basis, in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Queensland Treasury and Trade's Minimum Reporting Requirements for the year ending 30 June 2013 and other authoritative pronouncements. To comply with Australian Accounting Standards and Interpretations, the department has applied those requirements applicable to not-for-profit entities, as the department is a not-for-profit government department. Except where stated, the historical cost convention is used. (b) The Reporting Entity

The financial statements include the value of all revenues, expenses, assets, liabilities and equity of the department, and the entities that it controls, where these entities are considered to be material. Controlled entities not material and not consolidated are as follows: ZeroGen Pty Ltd which was deregistered on 9 April 2013. (c) Administered Transactions and Balances

The department administers, but does not control, certain resources on behalf of the Government. In doing so, it has responsibility and is accountable for administering related transactions and items, but does not have the discretion to deploy the resources for the achievement of the department’s objectives. Major administered revenues include fees from mineral and petroleum rentals, resource tenure applications, titles registration and revenue from state land. The principal resource administered by the department is state-owned land, which includes leasehold land, land under roads, unallocated state land and reserves, with associated activities being the allocation and management of this land. (d) Trust/Agency Transactions and Balances

The department holds cash and bank guarantees on behalf of companies and individuals for the following: The department holds guarantees under lease conditions as required by the Land Act 1994. As a condition of

a lease of state land, a bank guarantee may be required to be retained by the department to ensure achievement of specific performance of lease conditions; or to secure land reparation capacity in the event that the lessee abandons the leased land.

Guarantees are held as a safeguard generally where third parties are seeking to undertake development

within the Sustainable Planning Act 2009 and Vegetation Management Act 1999 to ensure that any works undertaken are done with the concurrence of the department and that reparation capacity exists in the event that the unauthorised development or non-conforming vegetation replacement occurs.

Under the provisions of the Commonwealth Native Title Act 1993 - this act requires mining registrars to

receipt compensation payments and forward such payments to nominated bodies. Under the State Indigenous Land Use Agreements (ILUAs), the permit holder must pay the fees agreed to in

the ILUA schedules. If the native title party for the area is not set up to accept the payment, the ILUAs require the permit holder to pay the money to the State to hold until such a time as the native title party is able to accept the fees. These fees include inspection fees, compensation fees and native title land use fees.

As a condition of exploration and production tenures under the resources acts, a security deposit of cash or

bank guarantees may be provided to the department. Upon receipt of the cash deposits, the department recognises interest accrued during the period the department has custody of the monies.

As the department performs only a custodial role in respect of these transactions and balances, they are not recognised in the financial statements, but are disclosed in Note 36 for information purposes. Applicable audit arrangements are also shown.



1. Objectives and principal activities of the department Role of the department DNRM manages the productive and sustainable use of Queensland’s natural resources: our land, water and minerals for the benefit of all Queenslanders. Departmental vision To be a world leader in sustainable resource management. Objectives of the department The department’s objectives are to achieve a globally competitive mining, petroleum and gas industry, a safe and healthy resources industry, sustainable and productive use of land and water resources, balance in access to and use of natural resources, and regulatory certainty for communities, industry and investors. Sources of Departmental Revenue The department is principally funded for the services it delivers by parliamentary appropriations, with further funding sourced from: Sales of maps, cadastral and title searches, storage fees for explosives, other fees for service activities from

safety in mines testing. Initiative funding from the Australian Government and industry including the Water for the Future program,

Great Artesian Basin Sustainability, Caring for our Country and Carbon Geostorage.

Major Departmental Services Mining and petroleum services The objectives of this service area are to: encourage exploration and investment; and support industry to develop new projects and approaches. The functional services: are Mining and Petroleum Industry Policy; Mining and Petroleum Operations; and Geological Survey of Queensland. Mine safety and health services The objectives of this service area are to: ensure strong, independent regulation; ensure an effective response capability; build industry awareness and skills; use research and new technologies to reduce safety and health risks in the mining, quarrying, explosives and petroleum and gas industries; and mitigate safety risks at abandoned mines. The functional services are: Mines Inspectorate; Petroleum Gas Inspectorate; Explosives Inspectorate; and the Safety in Mines, Testing and Research Station (SIMTARS). Water services The objectives of this service area are to: provide certainty in water access entitlements; plan and manage the allocation and sustainable use of Queensland's water resources; account for and monitor the quantity, availability and condition of water resources; and increase the productive use of Queensland's water resources without compromising sustainability. The functional services are: Water Resource Strategy; Water Resource Allocation and Planning; Water Resource Information and Catchment Management; and Natural Resources Operations. Land services The objectives of this service area are to: provide clarity to landholders and developers on native vegetation clearing; ensure Indigenous land interests are considered and supported; represent the Queensland Government in the resolution of native title claims; provide certainty in land titling, mapping and spatial information and accurate valuations; plan and manage the allocation and use of land resources; account for and monitor the quantity, availability and condition of land resources; and increase the productive use of Queensland's land resources without compromising sustainability. The functional services are: Aboriginal and Torres Strait Islander Land Services; Land Management and Use; Titles Registration; State Valuation Services; and Natural Resources Operations. Summary of significant accounting policies

(a) Statement of Compliance The department has prepared these financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009. 1. Objectives and principal activities of the department (continued)



(a) Statement of Compliance (continued) These general purpose financial statements have been prepared on an accrual basis, in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Queensland Treasury and Trade's Minimum Reporting Requirements for the year ending 30 June 2013 and other authoritative pronouncements. To comply with Australian Accounting Standards and Interpretations, the department has applied those requirements applicable to not-for-profit entities, as the department is a not-for-profit government department. Except where stated, the historical cost convention is used. (b) The Reporting Entity

The financial statements include the value of all revenues, expenses, assets, liabilities and equity of the department, and the entities that it controls, where these entities are considered to be material. Controlled entities not material and not consolidated are as follows: ZeroGen Pty Ltd which was deregistered on 9 April 2013. (c) Administered Transactions and Balances

The department administers, but does not control, certain resources on behalf of the Government. In doing so, it has responsibility and is accountable for administering related transactions and items, but does not have the discretion to deploy the resources for the achievement of the department’s objectives. Major administered revenues include fees from mineral and petroleum rentals, resource tenure applications, titles registration and revenue from state land. The principal resource administered by the department is state-owned land, which includes leasehold land, land under roads, unallocated state land and reserves, with associated activities being the allocation and management of this land. (d) Trust/Agency Transactions and Balances

The department holds cash and bank guarantees on behalf of companies and individuals for the following: The department holds guarantees under lease conditions as required by the Land Act 1994. As a condition of

a lease of state land, a bank guarantee may be required to be retained by the department to ensure achievement of specific performance of lease conditions; or to secure land reparation capacity in the event that the lessee abandons the leased land.

Guarantees are held as a safeguard generally where third parties are seeking to undertake development

within the Sustainable Planning Act 2009 and Vegetation Management Act 1999 to ensure that any works undertaken are done with the concurrence of the department and that reparation capacity exists in the event that the unauthorised development or non-conforming vegetation replacement occurs.

Under the provisions of the Commonwealth Native Title Act 1993 - this act requires mining registrars to

receipt compensation payments and forward such payments to nominated bodies. Under the State Indigenous Land Use Agreements (ILUAs), the permit holder must pay the fees agreed to in

the ILUA schedules. If the native title party for the area is not set up to accept the payment, the ILUAs require the permit holder to pay the money to the State to hold until such a time as the native title party is able to accept the fees. These fees include inspection fees, compensation fees and native title land use fees.

As a condition of exploration and production tenures under the resources acts, a security deposit of cash or

bank guarantees may be provided to the department. Upon receipt of the cash deposits, the department recognises interest accrued during the period the department has custody of the monies.

As the department performs only a custodial role in respect of these transactions and balances, they are not recognised in the financial statements, but are disclosed in Note 36 for information purposes. Applicable audit arrangements are also shown.




1. Objectives and principal activities of the department (continued) (e) Departmental Services Revenue/Administered Revenue

Appropriations provided under the Annual Appropriation Act 2012 are recognised as revenue when received. The department recognises a receivable for the appropriation revenue not received where departmental services have been delivered during the reporting period. Amounts appropriated to the department for transfer to other entities in accordance with legislative or other requirements are reported as ‘administered’ item appropriations with the related payments being recorded as administered expenses. Refer to Note 2. (f) User charges, taxes, fees and fines, property and other territorial revenue

User charges, taxes, fees and fines, property and other territorial revenue controlled by the department are recognised as revenues when the revenue has been earned and can be measured reliably with a sufficient degree of certainty. This involves either invoicing for related goods/services and/or the recognition of accrued revenue. User charges, fees, property and other territorial revenue are controlled by the department where they can be deployed for the achievement of departmental objectives. Where they are not controlled by the department, user charges, fees, fines, property and other territorial revenue are reported as Administered Revenue. Refer to Notes 3 and 4. (g) Grants and contributions

Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which the department obtains control over them. Where grants are received that are reciprocal in nature, revenue is progressively recognised as it is earned according to the terms of the funding agreements. Contributed assets are recognised at their fair value. Contributions of goods and services are recognised only when a fair value can be determined reliably and the services would be purchased if they had not been donated. Where this is the case, an equal amount is recognised as revenue and an expense. Refer to Note 5. (h) Cash and cash equivalents

For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash and cash equivalents include all cash on hand, cash at bank and cheques receipted but not banked at 30 June 2013. Refer to Note 18. (i) Receivables

Trade debtors are recognised at the amounts due at the time of sale or service delivery, i.e. the agreed purchase/contract price. Settlement of these amounts is required within ranged trading terms of 14 days to 30 days from invoice date depending on the service provided. The collectability of receivables is assessed periodically with provision being made for impairment. All known bad debts were written-off as at 30 June in the controlled entity. Changes in the allowance of impairment are based on loss events as disclosed in Note 19. Various regulatory legislation on which some of these receivables are raised, contain hardship provisions enabling clients to apply for hardship relief in the payment of their debts. Collateral in the form of security over property is held for loan and finance lease receivables. On full repayment of finance leases, the title for the relevant land is transferred to the purchaser. Other debtors generally arise from transactions outside the usual operating activities of the department and are recognised at their assessed values. Other than receivables from government, settlement terms of these debtors are between 14 - 30 days net, with the exception of loan and finance lease receivables that range from 2 - 40 years. (j) Inventories

Inventories held for distribution are those inventories that the department distributes for no or nominal consideration. Inventories held for distribution are measured at cost adjusted, where applicable, for any loss of service potential. Refer to Note 20.




1. Objectives and principal activities of the department (continued) (k) Non-Current Assets Classified as Held for Sale

Non-current assets held for sale consist of those assets that management has determined are available for immediate sale in their present condition and their sale is highly probable within the next 12 months. Refer to Note 22. These assets are measured at the lower of the assets’ carrying amounts and their fair values less costs to sell. Such assets are no longer amortised or depreciated upon being classified as held for sale. (l) Assets under construction (work in progress)

Work in progress is recognised at cost. All costs relating to items of property, plant and equipment and intangibles constructed in-house are recorded as work in progress until completion of the project using all direct and indirect costs, where the latter are reliably attributable. Work in progress performed under external contracts is recorded using the invoice amount supplied by the contractor. (m) Acquisitions of assets

Actual 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, including architects’ fees and engineering design fees. However, any training costs are expensed as incurred. Where assets are received free of charge from another Queensland Government entity, whether as a result of a machinery-of-government change or other involuntary transfer, the acquisition cost is recognised as the gross carrying amount in the books of the transferor immediately prior to the transfer together with any accumulated depreciation. Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from another Queensland Government entity, are recognised at their fair value at the date of acquisition in accordance with AASB 116 Property, Plant and Equipment. (n) Intangibles

Intangible assets with a cost or other value equal to or greater than $100,000 are recognised in the financial statements, items with a lesser value are expensed in the year of acquisition. Each intangible asset, less any anticipated residual value is amortised over its estimated useful life to the department. The residual value is zero for all of the department’s intangible assets. It has been determined that there is not an active market for any of the department’s intangible assets. As such, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment losses. No intangible assets have been classified as held for sale or form part of a disposal group held for sale. Refer to Note 24. Purchased software The purchase cost of software is capitalised and is amortised on a straight-line basis over the period of expected benefit to the department, namely 3 - 13 years. Internally generated software Expenditure on research activities related to internally generated intangible assets is recognised as an expense in the period in which it is incurred. Costs associated with the development of computer software have been capitalised and are amortised on a straight-line basis over the period of expected benefit to the department, namely 3 - 17 years.




1. Objectives and principal activities of the department (continued) (o) Property, plant and equipment

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

Asset Class Threshold Land $ 1 Buildings and Infrastructure $ 10,000 Plant and equipment $ 5,000 Other $ 5,000

Items with a lesser value are expensed in the year of acquisition. Land improvements undertaken by the department are included with buildings or infrastructure based on the proximity of the asset to which they relate. Research, design and appraisal studies Preliminary appraisal costs, cost estimates and/or investigating study costs that precede management decisions on the acceptance of particular projects are expensed as incurred. Land under roads In Queensland, land under roads not subject to freehold or leasehold title or reserve tenure vests in the State of Queensland as per the Land Act 1994. DNRM administers the Land Act 1994 on behalf of the state and land under roads that are not subject to freehold or leasehold title or reserve tenure. It is therefore considered an administered asset of the department as at 30 June 2013. Land under roads subject to freehold or leasehold title or reserve tenure is recorded by the entity that holds the freehold or leasehold title or trusteeship of a reserve. The value of land under roads is $42.057 billion represented by 3,440,276 hectares. Land transfers inwards Land is transferred from non-Queensland Government entities for public use at no charge in accordance with certain planning and legislative requirements. Assets acquired at no value are recognised as revenue, using fair value, at the time of transfer. Refer Note 6. Land transfers outwards Land, no longer required and transferred to non-Queensland Government entities at no charge in accordance with certain planning and legislative requirements, is recognised as expenditure, using fair value, at the time of transfer. Refer Note 15. Deeds of grant in trust The department administers certain parcels of land, which are granted to and controlled by other entities in terms of deeds of grant in trust under the Land Act 1994. The value of this land should be recognised in the financial statements of the entities using the land and are therefore not included in the department’s financial statements. At 30 June 2013, the department administered 390 land titles in this category. Quarries Quarries have not been valued on the basis that it is not practicable to determine the surrounding reserves available for extraction. Revenue from extraction of quarry materials is recognised when the permit holder lodges a return of material extracted. Repairs and maintenance Expenditure incurred in normal operations to ensure that an asset realises its normal operating capacity until the conclusion of its useful life is regarded as repairs and maintenance, and is expensed. Expenditure that enhances an existing asset, significantly replaces or refurbishes an asset, or extends the asset’s useful life, capacity, function and/or efficiency is capitalised into the carrying amount of the asset. Library materials Items comprising the department’s technical library are expensed on acquisition. (p) Revaluations of non-current physical and intangible assets

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




1. Objectives and principal activities of the department (continued) (p) Revaluations of non-current physical and intangible assets (continued) Where intangible assets have an active market they are measured at fair value, otherwise they are measured at cost. Plant and equipment is measured at cost in accordance with Queensland Treasury and Trade's Non-Current Asset Accounting Policies. Non-current physical assets measured at fair value are revalued on an annual basis by appraisals undertaken by an independent professional valuer or internal expert, or by the use of appropriate and relevant indices. Revaluations of all material assets, based on independent professional valuer or internal expert appraisals are undertaken at least once every five years. However, if a class of asset experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class of asset may have changed by 20% or more from one reporting period to the next), it is subject to such revaluations in the reporting period, where practicable, regardless of the timing of previous such method of revaluation. Only those assets, the total values of which are material compared to the value of the class of assets to which they belong, are comprehensively re-valued, all other assets in the class are revalued by indices. Separately identified components of assets are measured on the same basis as the assets to which they relate. Materiality concepts under AASB 1031 Materiality are considered in determining whether the difference between the carrying amount and the fair value of an asset is material. Where indices are used in the revaluation process the department ensures that the application of such indices would result in a valid estimation of the asset's fair value at reporting date. The State Valuation Service (SVS) supplied the indices and provided assurance of their robustness, validity and appropriateness for application to the relevant assets. Indices used are also tested for reasonableness by applying the indices to a sample of assets and comparing results to similar assets that have been valued by an independent professional valuer or internal expert, and analysing the trend of changes in values over time. At year end, management assess the relevance and suitability of indices provided by SVS based on the departments' own particular circumstances. Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation reserve of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation reserve relating to that class. On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life. Controlled SVS undertakes comprehensive valuations for those identified material assets and provide valuation indices for the period where no comprehensive valuation is performed. The revaluation methodology for individual asset classes is as follows: Land The valuation process performed by SVS includes physical inspections and reference to market transactions for local land sales. For those parcels not comprehensively re-valued, the SVS provides an index for each land parcel based on recent transactions for local land sales. These indices are then reviewed for reasonableness by the department. Buildings The comprehensive valuation process performed by SVS includes physical inspections and the identification of the current condition of the asset and its expected remaining useful life. For those buildings not comprehensively re-valued, SVS provides an index which is then applied to those buildings. For those non-residential buildings not comprehensively re-valued, SVS provides the department with an index for each type of building. SVS provides this index based on information supplied from the Queensland Government’s Office of Economic and Statistical Research which SVS then benchmark against other indices for appropriateness. For residential dwellings, SVS uses the Cordell Housing Index Price which measures the rate of change of construction costs, specifically within the residential market. The indices are based on a comprehensive collection of labour, material, plant hire and subcontract costs covering all major trade categories within the residential sector.




1. Objectives and principal activities of the department (continued) (p) Revaluations of non-current physical and intangible assets (continued) Infrastructure The comprehensive valuation process performed by SVS includes physical inspections and identifying the current condition of the asset and its expected remaining useful life. For those infrastructure assets not comprehensively valued, SVS provides the department with an index for each type of asset. SVS provides this index based on information supplied from the Queensland Government’s Office of Economic and Statistical Research which SVS then benchmark against other indices for appropriateness. Administered Land under roads is valued at fair value in accordance with AASB 116 Property, Plant and Equipment using an englobo basis based on the statutory land valuations as agreed by all state Valuers-General in 2009. In Queensland, under the Land Valuation Act 2010, the statutory land valuations for non-rural land are determined on the basis of site value with the unimproved value continuing to be used in respect of rural land. Based on information provided by SVS, not all properties that received a site value increased in value and the introduction of site value had minimal impact on the total rateable value of land across the state. The value attributed to land under roads is calculated by multiplying the total area of land under roads within each local government area by the average statutory land value of all freehold and leasehold land within the corresponding local government area. The average statutory land value for each local government area is calculated by dividing the total value of such land by the total area of that land. This approach has been adopted as it best reflects the fact that all such properties in a local government area are serviced by the local road network. The value applied for englobo land is inclusive of all land uses from the highest and best use development land to lower use land including golf courses, sport fields and drainage areas. This approach is consistent with the calculation of an average statutory valuation in a local government area which similarly incorporates all land use types. The value included in the balance of land is $42.057 billion. (q) Depreciation of property, plant and equipment and amortisation of intangibles Land is not depreciated as it has an unlimited useful life. Intangible assets of the department 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 allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the department. Assets under construction (work in progress) are not depreciated or amortised 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. Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the department. The depreciable amount of an improvement to or on leasehold land is allocated progressively over the estimated useful life of the improvement or the unexpired period of the lease, or over the unexpired period of secured grant funding from the Queensland Government, whichever is the shorter. The unexpired period of a lease includes any option period where exercise of the option is probable.




1. Objectives and principal activities of the department (continued) (q) Depreciation of property, plant and equipment and amortisation of intangibles (continued) For each class of depreciable asset, the following depreciation and amortisation rates are used:

Physical asset class Rate % Buildings 1.5 – 20.0 Infrastructure 1.0 – 20.0 Plant and equipment

Motor vehicles 5.4 – 20.0 Heavy vehicles 5.0 – 20.0 Scientific and technical equipment 3.3 – 33.3 Office equipment 6.7 – 20.0 Computer equipment 10.0 – 33.3 Leasehold improvements 7.8 – 16.7 Boats and boating equipment 5.5 – 25.0

Intangible asset class Internally generated software 5.9 – 33.3 Purchased software 12.5 – 33.3

(r) 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, the department determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss. The asset’s recoverable amount is determined as the higher of the asset’s fair value less costs to sell and depreciated replacement cost. An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent 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. Refer also Note 14. (s) Leases

A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership, and operating leases, under which the lessor retains substantially all risks and benefits. Where a non-current physical asset is acquired by means of a finance lease, the asset is recognised at the lower of the fair value of the leased property and the present value of the minimum lease payments. The lease liability is recognised at the same amount. Lease payments are allocated between the principal component of the lease liability and the interest expense. Finance costs for finance lease charges are recognised as an expense in the period in which they are incurred. Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred. Incentives received when entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability over the lease term on a straight-line basis. (t) Payables

Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the nominal amount i.e. purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.




1. Objectives and principal activities of the department (continued) (u) Financial instruments

Recognition Financial assets and financial liabilities are recognised in the statement of financial position when the department becomes party to the contractual provisions of the financial instrument. 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 The department does not enter transactions for speculative purposes. Apart from cash and cash equivalents, the department holds no financial assets classified at fair value through profit and loss. The department has no borrowings for the financial year. All other disclosures relating to the measurement and financial risk management of financial instruments held by the department are included in Note 35. (v) Employee benefits

Employer 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 employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee related expenses. Wages, salaries and sick leave Wages and salaries due but unpaid at the reporting date are recognised in the statement of financial position at the current salary rates. For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. Entitlements not expected to be paid within 12 months are classified as non-current liabilities and recognised at their present value, calculated using yields on Fixed Rate Commonwealth Government bonds of similar maturity, after projecting the remuneration rates expected to apply at the time of likely settlement. 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 entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken. Annual leave The Queensland Government’s Annual Leave Central Scheme (ALCS) became operational on 30 June 2008 for departments, commercialised business units and shared service providers. Under this scheme, a levy is made on the department to cover the cost of employees’ annual leave (including leave loading and on-costs). The levies are expensed in the period in which they are payable. Amounts paid to employees for annual leave are claimed from the scheme quarterly in arrears. No provision for annual leave will be recognised in the department's financial statements as the liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Long service leave Under the Queensland Government’s Long Service Leave Scheme, a levy is made on the department to cover the cost of employees’ long service leave. The levies are expensed in the period in which they are payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears. No provision for long service leave is recognised in the department's financial statements. The liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.




1. Objectives and principal activities of the department (continued) (v) Employee benefits (continued) Superannuation Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. The department’s obligation is limited to its contribution to QSuper. The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Key executive management personnel and 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 and Trade. Refer Note 10 for disclosures on key executive management personnel and remuneration. (w) Provisions

Provisions are recorded when the department has a present obligation, either legal or constructive, as a result of a past event. They are recognised at the amount expected at the reporting date for which the obligation will be settled in a future period. Where the settlement of the obligations is expected to be after 12 months, the obligation is discounted to the present value using an appropriate discount rate. (x) Allocation of revenues and expenses from ordinary activities to corporate services

The department participates in a corporate partnership arrangement where it 'hosts' a number of strategic and operational corporate services provided to other 'recipient' departments. This arrangement was developed with a focus on ensuring economies of scale, service integration, scalability and responsiveness. As a host agency of corporate service functions, the department receives the appropriation of funds and reports full time equivalent positions for the services it provides. The model is multi-layered for different corporate services functions. That is, some functions are provided to two agencies, and some provided to six agencies with any combination in between. As a 'host' agency, DNRM provides defined services to the following agencies: Department of Agriculture, Fisheries and Forestry (Accommodation Services; Legal Services; Web and

Creative Services; Financial Policy and Assurance) Department of Tourism, Major Events, Small Business and the Commonwealth Games (Accommodation

Services; Legal Services; Web and Creative Services; Financial Policy and Assurance) Department of Environment and Heritage Protection (Accommodation Services; Legal Services) Department of Energy and Water Supply (Human Resources; Corporate Communications; Accommodation

Services; Legal Services; Web and Creative Services) Corporate Services income and expenses attributable solely to DNRM activities are apportioned across the major departmental services while corporate services income and expenses attributable under the corporate partnership arrangements are separately disclosed in the Statement of Comprehensive Income by Major Departmental Services. As a recipient agency, DNRM receives defined services from the following agencies: Department of Agriculture, Fisheries and Forestry (Information Management; Fleet Management;

Telecommunications) Department of Environment and Heritage Protection (Internal Audit; Procurement; Right to Information) These functions (and allocation of revenue and expenses) are disclosed in the relevant department’s financial statements. (y) Insurance

The department’s non-current physical assets and other risks are insured through the Queensland Government Insurance Fund (QGIF), premiums being paid on a risk assessment basis. In addition, the department pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.




1. Objectives and principal activities of the department (continued) (z) Services received free of charge or for nominal value

Contributions of services are recognised only if the services would have been purchased if they had not been donated and their fair value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and an expense. (aa) Non-cash financing and investing activities

Assets and liabilities received or donated/transferred by the department and recognised as revenues and expenses are set out in Notes 5 and 17 respectively. Assets and liabilities received or transferred by the department as a result of machinery-of-government changes are set out in Note 30. (ab) Taxation The department is a state body as defined under the Income Tax Assessment Act 1936 and is generally exempt from Commonwealth taxation with the exception of fringe benefit tax (FBT) and goods and services tax (GST). As such, GST credit receivable from, and GST payable to the Australian Taxation Office, is recognised and accrued. (ac) Joint ventures The department had interests in one joint venture entity and one joint venture operation, which is subject to agreements made with the relevant parties. The department’s interests are limited to its rights and obligations under each of the agreements. Refer to Note 34. (ad) 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 AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities. Appropriations for equity adjustments are similarly designated. (ae) Issuance of financial statements The financial statements are authorised for issue by the Director-General and the Chief Finance Officer at the date of signing the management certificate. (af) Judgements and assumptions The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions and management judgements that have the potential to cause material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant. Estimates and assumptions that have a potential significant effect are outlined in the following financial statements notes: Property, plant and equipment – Note 23 Contingencies – Note 33 (ag) 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 comparative period is from 1 May 2012 to 30 June 2012 as per the department’s 2011-12 financial statements.




1. Objectives and principal activities of the department (continued) (ah) New and revised accounting standards The department did not voluntarily change any of its accounting policies during 2012-13. Australian Accounting Standard changes applicable for the first time for 2012-13 have had minimal effect on the department's financial statements, as explained below. AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049] became effective from reporting periods beginning on or after 1 July 2012. The only impact for the department is that, in the Statement of Comprehensive Income, items within the 'Other Comprehensive Income' section are now presented in different subsections, according to whether or not they are subsequently classifiable to the operating result. Whether subsequent reclassification is possible depends on the requirements or criteria in the accounting standard/interpretation that relates to the item concerned. The department is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from Queensland Treasury and Trade. Consequently, the department has not applied any Australian Accounting Standards and Interpretations that have been issued but are not yet effective. The department applies standards and interpretations in accordance with their respective commencement dates. At the date of authorisation of the financial report, significant impacts of new or amended Australian accounting standards with future commencement dates are as set out below. AASB 13 Fair Value Measurement applies from reporting periods beginning on or after 1 January 2013. AASB 13 sets out a new definition of 'fair value' as well as new principles to be applied when determining the fair value of assets and liabilities. The new requirements will apply to all of the department's assets and liabilities (excluding leases) that are measured and/or disclosed at fair value or another measurement based on fair value. The potential impacts of AASB 13 relate to the fair value measurement methodologies used and financial statement disclosures made in respect of such assets and liabilities. The department has commenced reviewing its fair value methodologies (including instructions to valuers, data used and assumptions made) for all items of property, plant and equipment measured at fair value to determine whether those methodologies comply with AASB 13. The department is yet to complete this review, and to the extent that the methodologies don’t comply, changes will be necessary. AASB 13 will require an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities. To the extent that any fair value measurement for an asset or liability uses data that is not 'observable' outside the department, the amount of information to be disclosed will be relatively greater. A revised version of AASB 119 Employee Benefits applies from reporting periods beginning on or after 1 January 2013. The revised AASB 119 is generally to be applied retrospectively. Given the department's circumstances, the only implications for the department are that the revised standard clarifies the concept of 'termination benefits', and the recognition criteria for liabilities for termination benefits will be different. If termination benefits meet the timeframe criterion for 'short-term employee benefits', they will be measured according to the AASB 119 requirements for 'short-term employee benefits'. Otherwise, termination benefits will need to be measured according to the AASB 119 requirements for 'other long-term employee benefits'. Under the revised standard, the recognition and measurement of employer obligations for 'other long-term employee benefits' will need to be accounted for according to most of the requirements for defined benefit plans. The revised AASB 119 includes changed criteria for accounting for employee benefits as 'short-term employee benefits'. However, as the department is a member of the Queensland Government central schemes for annual leave and long service leave, this change in criteria has no impact on the department’s financial statements as the employer liability is held by the central scheme. The revised AASB 119 also includes changed requirements for the measurement of employer liabilities/assets arising from defined benefit plans, and the measurement and presentation of changes in such liabilities/assets. The department makes employer superannuation contributions only to the QSuper defined benefit plan, and the corresponding QSuper employer benefit obligation is held by the state. Therefore, those changes to AASB 119 will have no impact on the department. AASB 1053 Application of Tiers of Australian Accounting Standards applies as from reporting periods beginning on or after 1 July 2013. AASB 1053 establishes a differential reporting framework for those entities that prepare general purpose financial statements, consisting of two tiers of reporting requirements – Australian Accounting Standards (commonly referred to as 'Tier 1'), and Australian Accounting Standards – Reduced Disclosure Requirements (commonly referred to as 'Tier 2'). Tier 1 requirements comprise the full range of AASB recognition, measurement, presentation and disclosure requirements that are currently applicable to reporting entities in Australia. The only difference between the Tier 1 and Tier 2 requirements is that Tier 2 requires fewer disclosures than Tier 1.




1. Objectives and principal activities of the department (continued) (ah) New and revised accounting standards (continued) Details of which disclosures in standards and interpretations are not required under Tier 2 reporting are set out in amending standards AASB 2010-2, AASB 2011-2, AASB 2011-6, AASB 2011-11, AASB 2012-1, AASB 2012-7 and AASB 2012-11 (which also apply from reporting periods beginning on or after 1 July 2013). However, Queensland Treasury and Trade's Financial Reporting Requirements effectively do not allow application of AASB 2011-6 in respect of controlled entities, associates or interests in jointly controlled entities. Pursuant to AASB 1053, public sector entities like the department may adopt Tier 2 requirements for their general purpose financial statements. However, AASB 1053 acknowledges the power of a regulator to require application of the Tier 1 requirements. In the case of DNRM, Queensland Treasury and Trade is the regulator. Queensland Treasury and Trade has advised that its policy decision is to require adoption of Tier 1 reporting by all Queensland Government departments (including DNRM) and statutory bodies that are consolidated into the whole-of-government financial statements. Therefore, the release of AASB 1053 and associated amending standards will have no impact on the department. The following new and revised standards apply as from reporting periods beginning on or after 1 January 2014: AASB 10 Consolidated Financial Statements AASB 11 Joint Arrangements AASB 12 Disclosure of Interests in Other Entities AASB 127 (revised) Separate Financial Statements AASB 128 (revised) Investments in Associates and Joint Ventures AASB 2011 -7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint

Arrangements Standards [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17]

The Australian Accounting Standards Board is planning to amend AASB 10 Consolidated Financial Statements. Such amendments are expected to clarify how the International Accounting Standards Board’s principles about control of entities should be applied by not-for-profit entities in an Australian context. Hence, the department is not yet in a position to reliably determine the future implications of these new and revised standards for the department's financial statements. AASB 10 redefines and clarifies the concept of control of another entity, and is the basis for determining which entities should be consolidated into an entity’s financial statements. Therefore, once the AASB finalises its not-for-profit amendments to AASB 10, the department will need to reassess the nature of its relationships with other entities, including entities that aren’t currently consolidated. AASB 11 Joint Arrangements deals with the concept of joint control and sets out new principles for determining the type of joint arrangement that exists, which in turn dictates the accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement. Subject to any not-for-profit amendments to be made to AASB 11, the department will need to assess the nature of any arrangements with other entities to determine whether a joint arrangement exists in terms of AASB 11. If a joint arrangement does exist, the department will need to follow the relevant accounting treatment specified in either AASB 11 or the revised AASB 128, depending on the nature of the joint arrangement. AASB 1055 Budgetary Reporting applies from reporting periods beginning on or after 1 July 2014. From that date, based on what is currently published in the Queensland Government's Budgetary Service Delivery Statements, this means the department will need to include in these financial statements, the original budgeted statements for the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, and Statement of Cash Flows. These budgeted statements will need to be presented consistently with the corresponding (actuals) financial statements, and will be accompanied by explanations of major variances between the actual amounts and the corresponding budgeted financial statement. In addition, based on what is currently published in the Queensland Government's Service Delivery Statements, the department will need to include in these financial statements the original budgeted information for major classes of administered income and expenses, and major classes of administered assets and liabilities. This budgeted information will need to be presented consistently with the corresponding (actuals) administered information, and will be accompanied by explanations of major variances between the actual amounts and the corresponding budgeted financial information.




1. Objectives and principal activities of the department (continued) (ah) New and revised accounting standards (continued) AASB 9 Financial Instruments (December 2010) and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] become effective from reporting periods beginning on or after 1 January 2015. The main impacts of these standards on the department are that they will change the requirements for the classification, measurement and disclosures associated with the department's financial assets. Under the new requirements, financial assets will be more simply classified according to whether they are measured at amortised cost or fair value. Pursuant to AASB 9, financial assets can only be measured at amortised cost if two conditions are met. One of these conditions is that the asset must be held within a business model whose objective is to hold assets in order to collect contractual cash flows. The other condition is that the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The department has commenced reviewing the measurement of its financial assets against the new AASB 9 classification and measurement requirements. However, as the classification of financial assets at the date of initial application of AASB 9 will depend on the facts and circumstances existing at that date, the department's conclusions will not be confirmed until closer to that time. At this stage, and assuming no change in the types of transactions the department enters into, it is not expected that any of the department's financial assets will meet the criteria in AASB 9 to be measured at amortised cost. Therefore, as from the 2015-16 financial statements, all of the department's financial assets are expected to be required to be measured at fair value, and classified accordingly (instead of the measurement classifications presently used in Notes 1(u) and 35). The same classification will be used for net gains/losses recognised in the Statement of Comprehensive Income in respect of those financial assets. In the case of the department's current receivables, as they are short-term in nature, the carrying amount is expected to be a reasonable approximation of fair value. The department will not need to restate comparative figures for financial instruments on adopting AASB 9 as from 2015-16. However, changed disclosure requirements will apply from that time. A number of one-off disclosures will be required in the 2015-16 financial statements to explain the impact of adopting AASB 9. All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the department's activities, or have no material impact on the department.




2013 $’000

2012 $’000

2. Reconciliation of payments from consolidated fund

Reconciliation of payments from Consolidated Fund to departmental services revenue recognised in Statement of Comprehensive Income

Budgeted departmental services appropriation Transfers from/ (to) other departments 383,885 84,900 Transfers from/ (to) other headings Equity - 993 Administered (1,364) (5,788) Lapsed departmental services appropriations (23,763) (15,196) Total departmental services receipts 358,758 64,909 Plus: Closing balance of appropriation adjustment receivable / payable 10,154 3,914 Less: Opening balance of appropriation adjustment receivable / payable (3,914) Departmental services revenue recognised in Statement of Comprehensive Income 364,998 68,823

Reconciliation of Payments from Consolidated Fund to equity adjustment recognised in Contributed Equity

Budgeted equity adjustment appropriation 7,472 - Transfers from / to other departments Department services revenue - (993) Less equity adjustment (5,263) - Total equity adjustment receipts (payments) 2,209 (993) Plus: Closing balance of equity adjustment receivable 2,929 88 Less: Opening balance of equity adjustment receivable (88) - Equity adjustment recognised in Contributed Equity 5,050 (905)


Reconciliation of payments from Consolidated Fund to administered appropriation recognised in Statement of Comprehensive Income

Budgeted administered appropriation revenue 1,468 - Transfers from/ to other headings 6,627 5,742 Total administered appropriation receipts 8,095 5,742 Less: Opening balance of equity adjustment receivable (6,807) - Plus: Closing balance of administered appropriation revenue receivable - 183 Administered appropriation revenue recognised in the Statement of Comprehensive Income 1,288 5,925

Reconciliation of Payments from Consolidated Fund to equity adjustment recognised in Contributed Equity

Budgeted equity adjustment appropriation 1,980 - Transfers from other headings - 46 Total administered equity adjustment receipts /(payments) 1,980 46

Equity adjustment recognised in Contributed Equity




3. User charges, fees and fines

2013 $’000

2012 $’000

Services rendered 24,711 5,041 Fees and permits 37,762 9,548 Sale of goods 2,934 1,114

65,406 15,703 Administered on a Whole-of-Government basis

Fees and fines 423,534 47,815

423,534 47,815

4. Property and other territorial revenue

Property and territorial revenue * 1,263 131 Joint venture royalties 170 13 1,433 144


Property and territorial revenue 156,421 27,005 Riverine quarry material royalties 2,121 261 158,542 27,266

* Comparatives have changed due to re-mapping of the Rental income line item from Other revenue in 2011-12.




5. Grants and other contributions 2013

$’000 2012

$’000

Commonwealth grants * 23,870 8,071 Funding from external bodies, state governments * 1,281 879 External and industry contributions 8,360 1,565 Goods and services received at below fair value 2,205 2 Capital received below fair value - 3,978 35,716 14,495

* Included in the figures for grants and other contributions are non-reciprocal grants funded by the Commonwealth and State Government, and other external bodies for a range of grant programs. These monies have been recognised as revenue in their entirety upon receipt as the agreements do not specify sufficient conditions to qualify as reciprocal. 6. Land transfers inwards Administered on a Whole-of-Government basis

Land transfers inwards 211,118 57,108 211,118 57,108

7. Other revenue *

Distributions/refunds received 3,724 - Interest on fund balances 451 54 Recoveries 1,224 36 Other 390 210 5,789 300


Finance lease interest 2,857 336 Other Interest 3 306 Other 30 7

2,890 649

* Comparatives have changed due to the re-mapping of the line item Rental income moving from Other revenue to Property and other territorial revenue; and the Interest revenue 2011-12 note has been re-mapped into Other revenue.




8. Gains *

2013 $’000

2012 $’000

Gain on sale of plant and equipment 45 58

45 58 * Comparatives have changed due to the renaming of the note from Gain/loss in 2011-12 to Gains. Losses are recognised in the Other expenses note 17 and Impairments are in the Impairment losses note 14. 9. Employee expenses

Employee benefits Salaries and wages * ** 178,277 32,914 Employer superannuation contributions * 23,689 4,406 Annual leave levy * ** 18,007 3,539 Long service leave levy * ** 3,772 791 Voluntary Redundancies 22,422 - Capitalised salary expenses ** (1,572) (174) Other employee benefits** 503 59 Employee related expenses Salary related taxes *** 11,848 2,321 Workers’ compensation ** *** 1,637 423 258,584 44,279

* Refer to Note 1(v). ** Comparatives have changed due to the remapping of line items. *** Costs of workers’ compensation insurance and payroll tax are a consequence of employing employees, but not counted in employees’ total remuneration package. They are not employee benefits, but rather employee related expenses. Number of employees: 2013 2012 Department of Natural Resources and Mines* 2,374 2,828

* Corporate Partnership employee expenses aligned to DNRM and providing services to other departments are included in the above figures for 2013 only (refer Note 1(x)). The break up was not available in 2012 as the Corporate Partnership arrangement was still being finalised. The number of full time and part time employees measured on a full time equivalent basis providing services to other departments at balance date for 2013 is 74.




10. Key executive management personnel and remuneration a) Key Executive Management Personnel The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the department during 2012-2013. Further information on these positions can be found in the body of the Annual Report under the section relating to Executive Management.

Position Responsibilities Current incumbents

Contract classification and appointment authority

Date appointed to position (Date resigned

from position) Director-General The Director-General is responsible for the

efficient, effective and economic administration of the department.

CEO 3.6 /s92 Public Service Act 2008

23-Mar-12

Deputy Director-General, Policy and Program Support

The Deputy Director-General provides strategic leadership and direction of the department's policy and program support functions.

SES4.2 / s110 Public Service Act 2008

09-Aug-10

Deputy Director-General, Service Delivery

The Deputy Director-General provides strategic leadership and direction in delivering the department's services.


18-Jun-12

Deputy Director-General, Mine Safety and Health and Commissioner for Mine Safety and Health

The Deputy Director-General, Commissioner for Mine Safety and Health provides strategic leadership and direction for the mine safety and health services and functions of the department and as Commissioner for Mine Safety and Health to monitor and report on the administration of provisions about safety and health under the mining legislation.

CEO5.4 / s122 Public Service Act 2008

25-Mar-11 to 25-Jan-13

Acting Deputy Director-General, Mine Safety and Health

The Deputy Director-General provides strategic leadership and direction for the mine safety and health services and functions of the department.


26-Jan-13

Deputy Director-General, Business and Corporate Partnerships

The Deputy Director-General provides strategic leadership and direction of the department's corporate and business support functions of the agency.


01-Jul-11

Chief Finance Officer and Executive Director, Finance and Performance

The Chief Finance Officer and Executive Director, Finance and Performance is responsible for the efficient, effective and economic financial administration of the department.


09-Apr-12




10. Key executive management personnel and remuneration (continued) b) Remuneration Remuneration policy for the department's key executive management personnel is set by the Queensland Public Service Commission as provided for under the Public Service Act 2008. The remuneration and other terms of employment for key executive management personnel are specified in employment contracts. For the 2012-13 year, remuneration of key executive management personnel increased by 2.2% in accordance with government policy. Remuneration packages for key executive management personnel comprise of the following components:

Short term employee benefits which include: o 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. o Non-monetary benefits - consisting of provision of vehicle together with fringe benefits tax

applicable to the benefit. Long term employee benefits include amounts expensed in respect of long service leave. Post-employment benefits include amounts expensed in respect of employer superannuation obligations. 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. The remuneration package for the Director-General includes a potential performance payment up to a maximum of 15% of that position's total fixed remuneration, which equates to approximately $59,000. Eligibility for such a performance payment is conditional on the achievement of objectives that are documented in that position's performance agreement. Eligibility to a performance payment is determined based on:

analysis by the Public Service Commission (PSC) of relevant performance data; consultation with the Under Treasurer and the Director-General of the Department of the Premier and

Cabinet; the Premier's ultimate discretion regarding whether the incumbent will be paid a performance payment

and, if so, how much.




10. Key executive management personnel and remuneration (continued) 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. The key executive management positions and personnel disclosed for the period 1 July 2012 - 30 June 2013 varies from the 2011-12 financial year due to organisational restructure. 1 July 2012 – 30 June 2013

Position

Short Term Employee Benefits

Long Term Employee Benefits

Post Employment

Benefits

Termination/ Resignation

Benefits Total

Remuneration

Base

$’000

Non-Monetary Benefits $’000

$’000

$’000

$’000

$’000 Director-General 351 10 16 40 - 417

Deputy Director-General, Policy and Program Support 188 43 7 25 - 263

Deputy Director-General, Service Delivery 203 34 7 26 - 270

Deputy Director-General, Mine Safety and Health and Commissioner for Mine Safety and Health

119 5 (94) 17 141 188

Acting Deputy Director-General, Mine Safety and Health 70 15 1 7 - 93

Deputy Director-General, Business and Corporate Partnerships 219 9 9 23 - 260

Chief Finance Officer and Executive Director, Finance and Performance 164 10 5 16 - 195

1 May 2012 – 30 June 2012

Position

Short Term Employee Benefits

Long Term Employee Benefits

Post Employment

Benefits

Termination/ Resignation

Benefits Total

Remuneration

Base

$’000

Non-Monetary Benefits $’000

$’000

$’000

$’000

$’000 Acting Director-General 59 2 1 6 - 68

Acting Deputy Director-General, Water and Catchment 29 4 - 3 - 36

Acting Deputy Director-General, Water and Catchment 8 1 - 1 - 10

Deputy Director-General, Mining and Petroleum 36 7 1 4 - 48

Deputy Director-General, Commissioner for Mine Safety and Health 45 2 1 5 - 53

Group Executive, Business and Corporate Partnership 40 1 1 4 - 46

Assistant Director-General, Land and Indigenous Services 26 4 1 3 - 34

Assistant Director-General, Natural Resource Operations 37 1 1 4 - 43

Executive Director, Finance and Performance (Chief Finance Officer) 30 2 - 3 - 35




11. Supplies and services * 2013

$’000 2012

$’000 Accommodation costs 32,504 5,267 Advertising 463 40 Consultants and contractors 20,966 5,884 Information and communication technology (ICT) costs 29,779 5,744 Materials and consumables 14,608 1,470 Minor plant and equipment 1,654 730 Motor vehicles (including Qfleet) 9,396 1,448 Photography expenses 2,373 385 Printing, postage and freight 5,195 1,556 Research, testing and analytical services 827 1,964 Service costs to other government agencies and shared service providers 11,672 1,879 Subscriptions and memberships 791 120 Training and recruitment 1,690 379 Travel 4,805 1,196 Capitalised supplies and services expenditure (9,079) (905) Other 3,322 3,725 130,965 30,882 Administered on a Whole-of-Government basis

Interest accrued 7 1 Mine rehabilitation - 171 Other 10 8

17 180

* Comparatives have changed due to the re-mapping of line items. 12. Grants and subsidies

Grants to industry and external bodies 79,005 13,195 Scholarships 51 1 Sponsorships - 5 79,056 13,201 Administered on a Whole-of-Government basis

Land grants to Indigenous bodies 7,753 3,726 DUMARESQ-Barwon Border Rivers Commission 1,100 - Other 184 - 9,037 3,726




13. Depreciation and amortisation

2013 $’000

2012 $’000

Incurred in respect of: Buildings 1,902 345 Infrastructure* 2,110 273 Plant and equipment 6,532 1,094 Intangibles 4,106 534 14,650 2,246 Administered on a Whole-of-Government basis

Incurred in respect of: Buildings 234 36 Infrastructure 31 2 Plant and equipment 187 31 452 69

* Comparatives have changed due to the line items Water distribution and Water facilities in 2011-12 being classified as Infrastructure in 2012-13. 14. Impairment losses *

Infrastructure - 39 Intangibles 185 - Impairment losses on receivables 56 77 241 116 Administered on a Whole-of-Government basis

Impairment losses on receivables 3,037 1,918

3,037 1,918

* Comparatives have changed due to the Water monitoring line item in 2011-12 being classified as Infrastructure in 2012-13; Impairment losses on receivables moving from the Bad and doubtful debts line item in Other expenses in 2011-12; and the movement from the impairment line item in Gain/loss note in 2011-12.




15. Land transfers outwards


2013 $’000

2012 $’000

Land transfers outward 33,278 2,176 33,278 2,176

16. Revaluation decrements

Land 12,741 6,169 Buildings - 3,361

12,741 9,530 Administered on a Whole-of-Government basis

Land 1,615,822 2,052,531 1,615,822 2,052,531

The asset revaluation surplus represents the net effect of upwards and downwards revaluations of assets to fair value. The decrement, not being a reversal of a previous revaluation increment in respect of the same class of assets, has been recognised as an expense in the Statement of Comprehensive Income.




17. Other expenses *

2013

$’000 2012

$’000 Bad debts 222 - Bank, borrowing and statutory fees 78 2 Donations, gifts and awards 5 39 External audit fees ** 550 155 Insurance premiums - Queensland Government Insurance Fund *** 1,044 162 Legal fees 8,835 2,200 Losses from disposal of non-current assets - 176 Special payments **** Out-of-court settlement 360 - Other 38 9

11,132 2,743


Bad debts 2 2 Commissions 2,025 1,213 Discounts on early settlement of finance leases 2,852 154 Loss on sale - Land 8,080 758 Rent remissions 18 6 Special payments **** - 105 Other 1,224 1,695

14,201 3,933

* Comparatives have changed due to the re-mapping of line items; the Loss on sale - Land line item being re-mapped from Gain/Loss note in 2011-12; and Impairment losses being moved from the line item Bad and doubtful debts in 2011-12. ** Total external audit fees relating to the 2013 financial year are estimated to be $350,000 (2012: $200,000). There are no non-audit services included in this amount. *** Certain losses of public property are insured by the Queensland Government Insurance Fund (QGIF). The claims made in respect of these losses have yet to be assessed by QGIF and the amount recoverable cannot be reliably estimated at reporting date. Upon notification by QGIF of the acceptance of the claims, revenue will be recognised for the agreed settlement amount and disclosed as ‘Other revenues – Insurance recoveries’. **** Special payments include ex gratia expenditure and other expenditure that the department is not contractually or legally obligated to make to other parties. In compliance with the Financial and Performance Management Standard 2009, the department maintains a register setting out details of all special payments greater than $5,000.




18. Cash and cash equivalents

2013 $’000

2012 $’000

Imprest accounts and cash on hand 30 32 Cash at bank 25,938 61,625

25,968 61,657 Administered on a Whole-of-Government basis Cash at bank 20,907 40,159 20,907 40,159

19. Receivables

Current Trade debtors 20,500 21,011 Accruals of an operating nature 8,588 2,280 Less: Provision for impairment (799) (742)

28,290 22,549

GST receivable * (998) - GST payable * 8 -

(990) -

Annual leave claim receivable 7,422 4,967 Grants revenue - 2,688 Departmental services revenue 10,154 3,914 Long service leave reimbursements 2,597 1,017 Other government receivables ** 862 - Other *** 1,886 2,716 Total 50,221 37,851




19. Receivables (continued) Administered on a Whole-of-Government basis

2013

$’000 2012

$’000 Current Trade debtors 517 1,569 Less: Provision for impairment *** (301) (7)

216 1,562 Rent receivable 5,203 3,493 Less: Provision for impairment *** (2,880) (1,300)

2,323 2,193 Operating leases **** 23,797 17,257 Less: Provision for impairment (8,257) (7,193)

15,541 10,064 Finance Leases ***** 6,086 6,393 Less: Provision for impairment (210) (110)

5,876 6,283 Interest receivable *** 888 977 Less: Provision for impairment *** (78) (78)

810 899 GST receivable * 1 - GST payable * (306) -

(305) - Prepayments to Queensland Treasury and Trade ****** 14,293 37,220 Administered appropriation receivable - 6,807 Valuation fees receivable 14,767 14,163 Other government receivables ** 465 - Other *** 559 578 Total 54,544 79,769

Non current Finance leases ***** One to five years 17,503 20,222 Greater than five years 22,419 25,412 39,922 45,634

* The department was not registered for GST in 2011-12, any GST effect was reported in the pre-machinery-of-government departments Financial Statements. ** Receivables resulting from machinery-of-government changes. *** Comparatives have changed due to remapping of line items. **** The department issues operating leases, both term and perpetual, including permits and licences, as conditional contracts under the provision of the Land Act 1994. Rent is determined as a percentage of unimproved capital value, dependent on the purpose and category of the allocated asset. ***** The department issues finance leases under the provisions of the Land Act 1994 whereby the lessee elects to pay the purchase price over a number of years. ****** Represents remittance to Queensland Treasury and Trade that relate to proposals and deposits on administered land sales before the transactions are legally finalised.




20. Inventories 2013

$’000 2012

$’000 Current Not held for resale: Casing and piping 1,002 1,051 Other – Water Meters 1,063 1,241 2,065 2,292 21. Other Assets Current Prepayment 883 880 883 880

22. Non-current assets classified as held for sale

Land 84 84 Buildings 134 134

218 218 Assets are continually reviewed to ensure they support the service delivery objectives of the department. The assets identified as held for sale are surplus to departmental requirements in meeting these objectives. The sale of these assets is actively pursued by the department with an expectation they will be sold within 12 months of the date of classification. Whilst these assets have been classified as held for sale greater than 12 months, the department has been ensuring the assets sales strategies remain current with the market considered active over this time. The assets are not depreciated during this time. Administered on a Whole-of-Government basis

Land 3,597 4,094 3,597 4,094 Assets are held for sale as directed by the Queensland Government after an assessment to determine the most efficient use of the land has occurred. The sale of these assets is actively pursued by the department with an expectation they will be sold within 12 months of the date of classification.




23. Property, plant and equipment 2013

$’000 2012

$’000 Non Current Land At valuation 78,141 91,864 Total Land 78,141 91,864 Buildings At valuation 182,615 153,247 Less: accumulated depreciation (136,787) (112,735) Less: accumulated impairment (3,710) (4,768) Total buildings 42,117 35,744 Infrastructure At valuation 85,730 85,722 Less: accumulated depreciation (58,040) (57,382) Less: accumulated impairment (39) (39) Total infrastructure 27,651 28,301 Plant and equipment At cost 66,650 63,217 Less: accumulated depreciation (42,884) (36,917) Total plant and equipment 23,766 26,300 Work in progress At cost 11,318 7,901 Total work in progress 11,318 7,901 Total property, plant and equipment 182,993 190,110


Dep

artm

ent o

f Nat

ural

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ourc

es a

nd M

ines

N

otes

to a

nd fo

rmin

g pa

rt o

f the

201

2-13

Fin

anci

al S

tate

men

ts

Pag

e 48

20

12-1

3 Fi

nanc

ial S

tate

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ts

23.

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erty

, pla

nt a

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t (co

ntin

ued)

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econ

cilia

tion

of th

e ca

rryi

ng a

mou

nts

of e

ach

clas

s at

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nnin

g an

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d of

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epor

ting

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d

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et re

conc

iliat

ion

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nd

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ldin

gs

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t and

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k in

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l

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000

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91

,864

35

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28

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7,

901

190,

110

Acq

uisi

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- -

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ls

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(216

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15

0 (8

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835

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435

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(173

) -

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65)

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ets

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for s

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- -

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n cl

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s -

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6 18

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-

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3,97

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n -

(343

) (2

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t 30

June

201

2 91

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28

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26

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7,

901

190,

110




23. Property, plant and equipment (continued)


2013 $’000

2012 $’000

Non current Land At valuation 62,774,760 64,206,392 Total land 62,774,760 64,206,392 Buildings At valuation 8,386 7,626 Less: accumulated depreciation (3,201) (2,423) Total buildings (5,185) 5,203 Infrastructure At valuation 809 633 Less: accumulated depreciation (95) (117) Total infrastructure 714 516 Plant and Equipment At cost 3,407 3,407 Less: accumulated depreciation (728) (540) Total plant and equipment 2,679 2,867 Total property, plant and equipment 62,783,338 64,214,978


Dep

artm

ent o

f Nat

ural

Res

ourc

es a

nd M

ines

N

otes

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rt o

f the

201

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Fin

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ts

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e 50

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pla

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R

econ

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of th

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ach

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s at

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Acq

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-

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- 20

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- -

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5,52

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- -

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2 -

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) -

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- (9

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253

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-

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C

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2 64

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2,86

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64,2

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*

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Inco

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ly v

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s its

land

, inf

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and

build

ing

asse

ts u

sing

a ro

lling

reva

luat

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prog

ram

. Thi

s en

sure

s th

at d

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t ass

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are

com

preh

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in a

ccor

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e w

ith

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and

Trea

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and

Tra

de’s

Non

-cur

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Ass

et P

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ies.

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inde

x is

app

lied

to th

e as

sets

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com

preh

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vely

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in th

e cu

rrent

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ncia

l yea

r. Th

e in

dex

appl

ied

is b

ased

on

mar

ket v

alue

m

ovem

ents

for t

he c

urre

nt fi

nanc

ial y

ear.

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valu

atio

n is

at f

air v

alue

in a

ccor

danc

e w

ith A

ASB

116

Pro

perty

Pla

nt a

nd E

quip

men

t and

Que

ensl

and

Trea

sury

and

Tra

de’s

Non

-cur

rent

Ass

et P

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ies

and

is u

nder

take

n in

depe

nden

tly b

y SV

S.

Una

lloca

ted

stat

e la

nd a

nd re

serv

es a

re m

easu

red

at fa

ir va

lue

and

are

com

preh

ensi

vely

reva

lued

eve

ry th

ree

to fi

ve y

ears

. Eac

h pr

oper

ty h

as a

n in

divi

dual

fact

or c

hang

e ap

plie

d w

hich

is d

eriv

ed fr

om th

e re

view

of m

arke

t tra

nsac

tions

. The

se m

ovem

ents

are

det

erm

ined

hav

ing

rega

rd to

the

revi

ew o

f uni

mpr

oved

land

val

ues

unde

rtake

n fo

r eac

h lo

cal g

over

nmen

t are

a.

Land

sub

ject

to o

pera

ting

leas

es is

val

ued

at fa

ir va

lue.

P

lant

and

equ

ipm

ent i

s va

lued

at c

ost a

s pr

escr

ibed

in Q

ueen

slan

d Tr

easu

ry a

nd T

rade

’s N

on-c

urre

nt A

sset

Pol

icie

s.




24. Intangibles

2013

$’000 2012

$’000 Internally generated software: At cost 55,229 45,074 Less: accumulated amortisation (31,287) (24,817) Total internally generated software 23,942 20,257

Purchased software: At cost 2,281 2,280 Less: accumulated amortisation (2,162) (1,804) Total purchased software 119 476

Software development in progress: At cost 6,750 7,210 Less: accumulated impairment (185) - Total software development in progress 6,565 7,210

Total intangibles 30,627 27,943

Intangibles reconciliation 2013

Software Internally Generated

Purchased Software

Software development in progress

Total

2013 $’000

2013 $’000

2013 $’000

2013 $’000

Carrying amount 1 July 2012 20,257 476 7,210 27,943 Acquisitions through internal development - - 6,305 6,305 Acquisitions through restructure 348 - - 348 Transfers between classes 6,765 - (6,765) - External transfers 321 - - 321 Disposals - - - - Impairment losses recognised in operating surplus/(deficit)* - - (185) (185) Amortisation (3,749) (357) - (4,106) Carrying amount at 30 June 2013 23,942 119 6,565 30,626

Intangibles reconciliation 2012

Software Internally

Generated Purchased

Software Software

development in progress

Total

2012 $’000

2012 $’000

2012 $’000

2012 $’000

Carrying amount 1 May 2012 - - - - Acquisitions through restructuring 20,728 540 7,210 28,478 Transfers between classes - - - - External transfers - - - - Disposals - - - -

Amortisation (471) (64) - (535)

Carrying amount at 30 June 2012 20,257 476 7,210 27,943 * Impairment losses are shown as separate line items in the Statement of Comprehensive Income. All intangible assets have finite useful lives and are amortised on a straight line basis (Note 13). No intangible assets have been classified as held for sale or form part of a disposal group held for sale.




25. Payables

2013

$’000 2012

$’000 Current 4,516 2,525 Trade creditors 13,832 7,977 Payables of operating nature 11,457 18 Grants and subsidies payable 4,953 1,025 Taxes payable 4,843 1,304 Other creditors 39,601 12,849


Current Transfer of administered item revenue to government payable 50,175 47,770 Payables of an operating nature 3,914 6,799 Stamp duties and zoning fees payable - 182 54,089 54,751

26. Accrued employee benefits Wages outstanding (36) (153) Annual leave levy payable 5,047 5,678 Long service leave levy payable 674 1,177 Superannuation (10) 166 5,675 6,868




27. Proposals and deposits

2013

$’000 2012

$’000 Current Proposals and deposits on land sales and leases 27 30

27 30


Current Proposals and deposits on land sales and leases 14,293 20,972

14,293 20,972

These monies represent funds paid by applicants in relation to prospective land dealings and are held by the department contingent upon the applicant progressing the dealing to finalisation. In the event dealings are not finalised, the department returns the defaulted monies to the original applicant. 28. Other liabilities Current Other agencies' land purchases 143 32,766 Unearned revenue 9,640 6,518 9,783 39,284

Administered on a Whole-of-Government basis Current Other agencies' land purchases 11,193 313 Unearned revenue 18,837 17,593 30,030 17,906 Non-Current Interest Payable 264 262 264 262

29. Asset revaluation surplus by class Buildings Balance at 1 July - - Revaluation increments/(decrements) 6,284 - Balance as at 30 June 6,284 - Infrastructure Balance at 1 July 11,605 - Revaluation increments/(decrements) 1,280 11,605 Balance as at 30 June 12,885 11,605 Total 19,169 11,605




29. Asset revaluation surplus by class (continued) Administered on a Whole-of-Government basis

2013

$‘000 2012

$‘000 Buildings Balance at 1 July 45 - Revaluation increments/(decrements) 215 45 Balance as at 30 June 260 45

Infrastructure Balance at 1 July - - Revaluation increments/(decrements) 229 - Balance as at 30 June 229 -

Total 488 45

The asset revaluation surplus represents the net effect of upward and downward revaluations of assets to fair-value.


Dep

artm

ent o

f Nat

ural

Res

ourc

es a

nd M

ines

N

otes

to a

nd fo

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Fin

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al S

tate

men

ts

Pag

e 55

20

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3 Fi

nanc

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ts

30.

Res

truc

turin

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inis

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ngem

ents

In

201

3, a

s a

resu

lt of

the

Que

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and

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er C

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on b

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abo

lishe

d as

per

the

des

igna

tion

of t

rans

fer

date

d 8

Dec

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r 20

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Sup

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cted

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Pub

lic S

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Apr

il 20

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r th

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s of

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dep

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l ser

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s na

med

bel

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trans

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ed to

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RM

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May

201

2. T

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20

13

2013

20

12

2012

20

12

$’

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0 $’

000

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000

Cur

rent

ass

ets

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ash

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2,

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0 33

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57

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90

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9,97

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99

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Non

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ass

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clas

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d as

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e -

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218

218

Tota

l cur

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4,99

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Non

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rope

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Tota

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362

362

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8 5,

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211,

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Pay

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s 63

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mpl

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efits

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948

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6 7,

244

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er li

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ies

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549

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81

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31. Reconciliation of operating result from continuing operations to net cash *

2013

$’000 2012

$’000 Operating result from continuing operations (33,981) (3,474) Non-cash items:

Asset revaluation decrement 12,741 9,530 Bad and impaired debts 463 114

Depreciation and amortisation expense 14,650 2,246 Net (gain)/loss on disposal of property, plant and equipment (45) 118

Notional interest on loans (451) -

Change in assets and liabilities (Increase)/decrease in departmental service revenue receivable (6,240) - (Increase)/decrease in net receivables (4,375) (13,738)

(Increase)/decrease in inventories 227 264 (Increase)/decrease in prepayments (3) 5,632

Increase/(decrease) in payables 26,752 3,421

Increase/(decrease) in accrued employee benefits (1,193) (4,126) Increase/(decrease) in other liabilities (29,504) (754)

(Increase)/decrease in GST input tax credits receivable 998 - Increase/(decrease) in GST payable (8) - Net cash provided from operating activities (19,968) (767)




31. Reconciliation of operating result from continuing operations to net cash (continued) * Administered on a Whole-of-Government basis

2013 $’000

2012 $’000

Operating result from continuing operations (1,450,146) (1,982,993) Non-cash items: Depreciation and amortisation expense 452 69 Bad and impaired debts 3,039 1,919 Discounts on early settlement of finance leases 2,852 154 Rent remissions 18 - Other - 5 Revaluation decrement 1,615,822 2,052,531 Net (gain)/loss on sale of property, plant and equipment 8,080 758 Land transfers to other entities 33,278 2,176 Land transfers from other entities (211,118) (57,108)

Change in assets and liabilities (Increase)/decrease in appropriation receivable 6,807 - (Increase)/decrease in net receivables 9,873 33,701 Increase/(decrease) in accounts payable (3,730) (21,628) Increase/(decrease) in proposals and deposits (6,679) - Increase/(decrease) in transfers to government payables 2,405 5,287 Increase/(decrease) in other liabilities 12,124 (1,583) (Increase)/decrease in GST input tax credits receivable (1) - Increase/(decrease) in GST payable 306 - Net cash provided from operating activities 23,384 33,288

* Comparatives have changed due to remapping of line items.




32. Commitments for expenditure *

2013

$’000 2012

$’000 a) Non-cancellable operating lease commitments

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

Not later than one year 21,728 21,643 Later than one year and not later than five years 46,322 22,029 Later than five years 57,282 6,955

125,332 50,627

b) Capital expenditure commitments

Material classes of capital expenditure commitments inclusive of GST, contracted for at reporting date but not recognised in the accounts are payable as follows:

Buildings - 41 Plant and equipment 302 1,619 Internal Use Software 1,580 432 Infrastructure 594 363

2,476 2,455

Payable: Not later than one year 2,476 2,455 Later than one year and not later than five years - -

2,476 2,455 c) Grants and subsidies commitments

Grants and subsidies commitments inclusive of anticipated GST, committed to provide at reporting date, but not recognised in the accounts are as follows:

Not later than one year 22,426 40,523 Later than one year and not later than five years 796 127

23,222 40,650 d) Other expenditure commitments

Other expenditure committed at the end of the period but not recognised in the accounts are as follows:

Not later than one year 66,537 64,471 Later than one year and not later than five years 179 -

66,716 64,471

* Comparatives have changed due to remapping of line items.




33. Contingencies Contingent Liabilities Guarantees and undertakings During 2012-13 the department has been a party to numerous indemnity capped procurement arrangements. These contracts are primarily with suppliers of information technology infrastructure and software and related maintenance, statistical methodologies and water infrastructure with liability and indemnity caps of various levels up to $10 million over the life of the contracts. Contract lives are short term in nature. Litigation in progress As at 30 June the following claims against the department were filed in the courts or lodged with the department:

2013 2012 Number of cases Number of cases District Court 1 0 Supreme Court 16 15 High Court 2 0 Federal Court 2 0 Industrial Court 1 0 Land Court 4 0 Jurisdiction not available - lodge with department * 10 5 36 20

At reporting date it is not possible to estimate any probable outcome of these claims, or of any financial effect. * The department has received notification of claims which are not yet subject to court action. These cases may or may not result in subsequent litigation. Financial Assurances for the rehabilitation of mine sites Financial assurances are required for mining projects, to cover the rehabilitation liability should a mining leaseholder fail to undertake rehabilitation. The financial assurance system provides for a discount on an incentive basis for progressive rehabilitation performance on a project. This has resulted in a gap in the financial assurances held by the state and the potential liability should a miner default. At 30 June 2013, the department, on behalf of the State of Queensland, held assurances totalling $4.451 billion (2012: $3.176 billion) including $29.566 million (2012: $25.822 million) in cash deposits. The contingent liability would only be recognised as an actual liability in the event that the miner defaults on the conditions of the license and the state holds insufficient financial assurance to cover the rehabilitation that the state considers necessary. At the reporting date it is not possible to determine the extent or timing of any potential financial effect of this responsibility. Collingwood Park State Guarantee The Mineral Resources Act 1989 provides a Collingwood Park State Guarantee to owners of affected land:

a) to pay for any works necessary to stabilise the affected land if there is subsidence damage to the land b) to repair any subsidence damage to the affected land if, in the chief executive's opinion, it is cost-effective for

the State to repair the damage; or c) to purchase the land at market value if the land is affected by subsidence damage and, in the chief executive's

opinion, it is not cost-effective for the State to repair the damage. At the reporting date it is not possible to determine the extent or timing of any potential financial effect of this State Guarantee.




33. Contingencies (continued) Weather impacts on abandoned mines Throughout the year various weather events have occurred across Queensland, in particular the January 2013 flood event. The department has assessed the impact of damage as a result of these events, including the effect on abandoned mine sites for which the department provides safe responsible solutions to reduce the risks to public safety. These assessments complement the ongoing risk assessments of abandoned mines provided by the Abandoned Mine Land Program (AMLP). It was determined the abandoned mine that was most significantly impacted by weather throughout 2012-13 was the Mount Morgan site and at balance date there are no known public safety concerns. Notwithstanding the impact of weather conditions, at balance date it has been assessed that no legal or constructive obligation exists to restore any abandoned mine site. Native title claims over departmental land At 30 June 2013, there remained 100 unresolved native title claims over lands (including offshore islands) either controlled or administered by the department. The claims cover an area of approximately 55% of the state. At reporting date it is not possible to make an estimate of any probable outcome of these claims, or of any financial effects. Contingent Assets Various agreements have been entered into with Sunwater since 2001 regarding the future use and disposal of a land parcel (8.827 hectares) at Rocklea. A Deed of Variation to these agreements in 2009 secured a freehold portion of this land in addition to a $0.150 million distribution from the sale proceeds of the remaining land when sold by Sunwater. The sale of land is subject to various approvals from Brisbane City Council, leading to uncertainty about the timing of the sale and therefore the time at which the department would receive freehold title. Furthermore, DNRM and Sunwater are currently in negotiation about the completion and funding of upgrades to water reticulation systems at the site and these negotiations may result in the forfeiture of the $0.150 million sale proceeds, depending upon the option finally chosen. For these reasons, it is not possible to provide a reliable estimate of the value of the land at balance date. 34. Interest in Joint Ventures The department has an interest in one joint venture entity which is subject to agreements made with the relevant party. The department’s interests are limited to its rights and obligations under each of the agreements. Jointly Controlled Entity Public sector mapping venture This venture is comprised of the public sector mapping agencies of the Commonwealth, states and territories. It was established to create and facilitate access to national spatial datasets for both governmental and commercial use. The joint venture arrangement involved the incorporation of a company, PSMA Australia Limited (PSMA), to coordinate, assemble and commercially deliver the various PSMA datasets on a national basis and to contribute to the establishment of the Australian Spatial Data Infrastructure. The department in its capacity as the Queensland representative holds an equal one-ninth share in this company, which was established on 20 June 2001. The department made no cash or in-kind contributions to the company for the 2012-13 financial year, nor was any revenue derived from its operations. PSMA made royalty payments of $0.152 million (2011-12: $0.223) to Queensland during the financial year. The royalty payments relate to the previous year's operations of the venture. Jointly Controlled Operations Joint mapping venture with HEMA Maps Pty Ltd This venture was between the department (originally formed with the former Department of Natural Resources and Water) and HEMA Maps Pty Ltd with each holding an equal share in the joint venture arrangement. This venture was established to produce, promote, distribute and sell maps from the Sunmap Regional Map series. The agreement was concluded at 30 June 2012. The royalties received this year relate to stock on hand from 2011-12 that was sold during 2012-13. Based on the undertaking signed, proceeds from the sale of the products are to be distributed in equal shares following the reimbursement of all related external costs. At 30 June 2013, the department received a total of $0.018 million (2011-12: $0.013 million), which represents production cost recovery plus revenue from sales of the product on hand at 30 June 2012.




35. Financial Instruments (a) Categorisation of financial instruments The department has the following categories of financial assets and financial liabilities:

Note

2013 $’000

2012 $’000

Financial assets Cash and cash equivalents 18 25,968 61,657 Receivables 19 50,221 37,851 76,189 99,508

Financial liabilities Payables 25 39,601 12,849 39,601 12,849


Financial assets Cash and cash equivalents 18 20,907 40,159 Receivables Current 19 54,544 79,769 Non-Current 19 39,922 45,634 115,373 165,562

Financial liabilities Payables 25 54,089 54,751 54,089 54,751

(b) Financial risk management The department’s activities expose it to a variety of financial risks – interest rate risk, credit risk, liquidity risk and market risk. Financial risk management is implemented pursuant to government and departmental policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the department. All financial risk is managed under approved departmental financial management policies. The department utilises written principles for overall risk management, as well as policies covering specific areas. The department measures risk exposure using a variety of methods as follows:

Risk Exposure Measurement Method Credit risk Ageing analysis, earning at risk Liquidity risk Sensitivity analysis Market risk Interest rate sensitivity analysis

(c) Credit risk exposure Credit risk exposure refers to the situation where the department 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 recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment. The carrying amount of receivables represents the maximum exposure to credit risk. As such, receivables is not included in this section of the note. No collateral is held as security and no credit enhancements relate to financial assets held by the department.




35. Financial Instruments (continued) (c) Credit risk exposure (continued) The department manages credit risk through the use of the credit management strategy. This strategy aims to reduce the exposure to credit default by ensuring that the department invests in secure assets and monitors all funds owed 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 allowance for impairment reflects the occurrence of loss events. The most readily identifiable loss event is where a debtor is overdue in paying a debt to the department, according to the due date (normally terms of 30 days). Economic changes impacting the department's debtors, and relevant industry data, also form part of the department's documented risk analysis. If no loss events have arisen in respect of a particular debtor or group of debtors, no allowance for impairment is made in respect of that debt/group of debtors. If the department determines that an amount owing by such a debtor does become uncollectible (after appropriate range of debt recovery actions), that amount is recognised as a Bad Debt expense and written-off directly against Receivables. In other cases where a debt becomes uncollectible but the uncollectible amount exceeds the amount already allowed for impairment of that debt, the excess is recognised directly as a Bad Debt expense and written-off directly against Receivables. Collective Impairment The method for calculating any provision for impairment is based on past experience and current and expected changes in economic conditions. The main factors affecting the current calculation for provisions are disclosed below as loss events. These economic changes form part of the department's documented risk analysis assessment in conjunction with historic experience and associated industry data whereby debts are collectively impaired rather than being subjected to individual assessment. 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.

Movements in the allowance of provision for impairment Note

2013 $’000

2012 $’000

Balance at 1 July 742 - Impairment through machinery-of-government - 665 Increase/decrease in allowance recognised in operating result 14 57 77 Balance at 30 June 19 799 742


Balance at 1 July 8,688 - Impairment through machinery-of-government - 6,770 Increase/decrease in allowance recognised in operating result 14 3,038 1,918 Balance at 30 June 19 11,726 8,688




35. Financial Instruments (continued) Ageing of past due but not impaired as well as impaired financials assets are disclosed in the following tables:

Overdue

Less than 30 days

30-60 days

61-90 days

More than 90 days Total

$’000 $’000 $’000 $’000 $’000 2013 Financial Assets past due but not impaired Receivables 1,071 645 1,018 - 2,734 Total 1,071 645 1,018 - 2,734

2012 Financial Assets past due but not impaired Receivables 17,184 237 2,417 518 20,356 Total 17,184 237 2,417 518 20,356

2013 Collectively Impaired financial assets Receivables (gross) 30 - - 1,337 1,367 Allowance for impairment (30) - - (769) (799) Carrying Amount - - - 568 568

2012 Collectively Impaired financial assets Receivables (gross) - - 2,417 518 2,935 Allowance for impairment - - (663) (79) (742) Carrying Amount - - 1,754 439 2,193


Overdue

Less than 30 days

30-60 days

61-90 days

More than 90 days Total

$’000 $’000 $’000 $’000 $’000 2013 Financial Assets past due but not impaired Receivables 1,287 3,565 299 11,674 16,825 Total 1,287 3,565 299 11,674 16,825

2012 Financial Assets past due but not impaired Receivables 146 24 1 91 262 Total 146 24 1 91 262

2013 Collectively Impaired financial assets Receivables (gross) 45 87 43 12,723 12,898 Allowance for impairment - - - (11,726) (11,726) Carrying Amount 45 87 43 997 1,172

2012 Collectively Impaired financial assets Receivables (gross) - - - 8,688 8,688 Allowance for impairment - - - (8,688) (8,688) Carrying Amount - - - - -




35. Financial Instruments (continued) (d) Liquidity risk

Liquidity risk refers to the situation where the department may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The department is exposed to liquidity risk through its trading in the normal course of business. The department manages liquidity risk by ensuring the department has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities. The following table sets out the liquidity risk of financial liabilities held by the department. It represents the contractual maturity of financial liabilities, calculated based on undiscounted cash flows relating to the liabilities at reporting date.

Payable in: <1 Year 1-5 Years >5 Years Total Note $’000 $’000 $’000 $’000

Financial liabilities 2013 Payables 25 39,601 - - 39,601 Total 39,601 - - 39,601 Financial liabilities 2012 Payables 25 12,849 - - 12,849 Total 12,849 - - 12,849

Administered on Whole-of-Government basis Payable in: <1 Year 1-5 Years >5 Years Total Note $’000 $’000 $’000 $’000

Financial liabilities 2013 Payables 25 54,089 - - 54,089 Total 54,089 - - 54,089

Financial liabilities 2012 Payables 25 54,751 - - 54,751 Total 54,751 - - 54,751




35. Financial instruments - (continued)

(e) Market risk

The department does not trade in foreign currency and is not materially exposed to commodity price changes. The department is exposed to interest rate risk through its finance leases. The department does not undertake any hedging in relation to interest risk and manages its risk as per its liquidity risk note above. (f) Interest rate sensitivity analysis

The following interest rate sensitivity analysis depicts the outcome to the comprehensive income if interest rates would change by +/-1% from the year end rates applicable to the department’s financial assets. With all other variables held constant, the department would have a surplus and equity increase/(decrease) of $0.399 million (2012: $0.456 million). The impact of interest rate movement on the department's profit and equity has decreased in the current period due to a decrease in the value of finance leases.


2013 Interest rate risk

Note

Carrying amount -1% -1% +1% +1%

Profit Equity Profit Equity $’000 $’000 $’000 $’000 $’000 Interest rate risk 2013 Financial assets Finance leases 19 39,922 (399) (399) 399 399 Potential Impact 39,922 (399) (399) 399 399

2012 Interest rate risk

Carrying amount -1% -1% +1% +1%

Profit Equity Profit Equity $’000 $’000 $’000 $’000 $’000 Interest rate risk 2012 Financial asets Finance leases 19 45,634 (456) (456) 456 456 Potential Impact 45,634 (456) (456) 456 456

(g) Fair Value

The department does not recognise any financial assets or financial liabilities at fair value. The fair value of trade receivables and payables are assumed to approximate the value of the original transaction, less any allowance for impairment.




36. Trust transactions and balances The department holds cash and bank guarantees on behalf of companies and individuals for the following: a. As a condition of volumetric leases entered into under the Land Act 1994, the lessee is required to

provide a security in the form of a bank guarantee to be retained by the department to ensure compliance with specific requirements. The security together with the lease agreement commits the lessee to perform specific reparation conditions set out in the lease.

b. For development applications under the Vegetation Management Act 1999 and Sustainable Planning

Act 2009 (formerly Integrated Planning Act 1997), applicants may be required to provide financial security of cash or bank guarantee as a means of meeting a particular aspect of a vegetation management code. The security together with the agreement commits the developer to providing a vegetation offset within 12 months. No interest is paid by the department in respect to the cash security held.

c. As a condition of exploration and production tenures under the resources acts, a security deposit of cash or bank guarantees may be provided to the department. Upon receipt of the cash deposits, the department recognises interest accrued during the period the department has custody of the monies.

d. Under the provisions of the Commonwealth Native Title Act 1993 – this Act requires mining registrars to receipt compensation payments and forward such payments to nominated bodies.

Under the State Indigenous Land Use Agreements (ILUAs), the permit holder must pay the fees agreed to in the ILUA schedules. If the native title party for the area is not set up to accept the payment, the ILUAs require the permit holder to pay the money to the State to hold until such a time as the native title party is able to accept the fees. These fees include inspection fees, compensation fees and native title land use fees. As the department 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.




36. Trust transactions and balances (continued) Trust transactions and balances

2013 $’000

2012 $’000

Trust collection and distributions Collections Mining security deposits 5,437 4,064 Native title holding 30 56 Other collections - - Total collections 5,467 4,120 Distributions Mining security deposits 1,693 1,189 Native title holding 26 57 Other collections - - Total distributions 1,719 1,246 Decrease in trust assets 3,748 2,874 Trust assets and liabilities Current assets Monies held in trust Mining security deposits 29,566 25,822 Native title holding 110 106 Total current assets 29,675 25,928 Current liabilities Trust balances payable Mining security deposits 719 617 Native title holding 110 106 Total current liabilities 829 723 Non-current liabilities Mining security deposits 28,847 25,205 Total non-current liabilities 28,847 25,205 Total trust liabilities 29,676 25,928

At 30 June 2013, the department held bank guarantees to the value of, and in relation to, the following: 1. $18.631 million in accordance with lease conditions under the Land Act 1994. 2. $3.399 million relating to vegetation management development applications under the Vegetation Management

Act 1999 and Sustainable Planning Act 2009. 3. $4.451 billion for mining securities. This represents the maximum value the department is potentially entitled to if agreed conditions are not fulfilled. The Queensland Audit Office has incorporated a sample of trust transactions within the audit undertaken for the period.




Management Certificate


These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009 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 establishing and keeping the accounts have been complied with in all material respects;

b) the statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of DNRM for the financial period ended 30 June 2013 and of the financial position of the department at as 30 June 2013.

Katrina Platt MIPA Dan Hunt Chief Finance Officer Director-General Dated: Dated:




INDEPENDENT AUDITOR’S REPORT To the Accountable Officer of the Department of Natural Resources and Mines Report on the Financial Report I have audited the accompanying financial report of the Department of Natural Resources and Mines, which comprises the statements of financial position and statements of assets and liabilities by major departmental services as at 30 June 2013, the statements of comprehensive income, statements of changes in equity, statements of cash flows and statements of comprehensive income by major departmental services for the period 1 July 2012 to 30 June 2013, notes comprising a summary of significant accounting policies and other explanatory information, and the certificates given by the Director-General and Chief Finance Officer. The Accountable Officer’s Responsibility for the Financial Report The Accountable Officer is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. The Accountable Officer’s responsibility also includes such internal control as the Accountable Officer 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 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 financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the 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 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 Accountable Officer, as well as evaluating the overall presentation of the 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.




Opinion In accordance with s40 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 financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of DNRM for the financial period 1 July 2012 to 30 June 2013 and of the financial position as at 30 June 2013.

Other Matters - Electronic Presentation of the Audited Financial Report This auditor’s report relates to the financial report of DNRM for the period 1 July 2012 to 30 June 2013. Where the financial report is included on the DNRM website, the Accountable Officer is responsible for the integrity of this website and I have not been engaged to report on this website. The auditor’s report refers only to the subject matter described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements or otherwise included with the financial report. If users of the financial report are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited financial report to confirm the information contained in this website version of the financial report. These matters also relate to the presentation of the audited financial report in other electronic media including CD Rom. AM Greaves FCA FCPA Queensland Audit Officer Auditor-General of Queensland Brisbane Dated:


Appendix 1 Performance statement 2012–13

Department of Natural Resources and Mines 2012–13 Target/estimate

2012–13 Estimated actual

2012–13 Actual

Service Area: Mining and Petroleum Services Notes

Service standardValue of investment in exploration by the mineral and energy sectors 1 $1.2 billion $1.1 billion $1.242 billion

Other measuresPercent of mining exploration applications grants in accordance with timelines set out in published performance standards

2 90% 80% 83%

Percent of new production tenure applications granted within timelines agreed between the department and industry proponents

3 90% 90% 89%

Consultative and engagement forums with industry and community stakeholders

4 27 28 28

Service Area: Mine Safety and Health Services

Service standardLost time injury frequency rate (injuries per million hours) in the mining and quarrying industries

5Less than 3.3 3.3 3.5

Other measuresPercentage of abandoned mines land program priority projects completed within scheduled time frames

4, 6 90% 85% 86%

Percentage of corrective/compliance requests identified through inspection and auditing programs closed out within target time frame

4, 7 90% 90% 87%

Simtars revenue target for commercial activities 4, 8 $7.5 million $7.0 million $7.0 million

Percentage of scheduled and legislative audits, inspections and investigations completed within prescribed times

9 90% 80% 79%

Number of structured programs/activities helping businesses build their capacity, improve their performance and/or access opportunities

4 280 290 299

Significant one-on-one business consultations undertaken 4, 10 6000 5000 5857

(Continued)


Department of Natural Resources and Mines 2012–13 Target/estimate

2012–13 Estimated actual

2012–13 Actual

The number of business participants in structured development activities

4, 11 1800 1200 1119

Consultative and engagement forums with industry and community stakeholders

4 20 20 23

Service Area: Water Services

Service standardPercentage of the state’s natural water resources with monitoring programs in place

70% 70% 70.6%

Other measuresPercentage of priority 1 water resource management dealings processed within customer service standards:– Licence applications

– Licence transfers and renewals

12, 13

75%

90%80%

93%

85%

Percentage of the state’s natural surface water systems managed in accordance with National Water Initiative compliant water planning guidelines

4, 14 76% 74.5% 74.5%

Service Area: Land Services

Service standardResolution of outstanding native title claims

10% 10% 10.3%

Other measuresPercentage of Sustainable Planning Act 2009 development applications assessed within legislative time frames

15, 16 100% 98.5% 98.4%

Information resources downloaded via Information Queensland website

4, 17 44 000 48 000 51 489

Number of parcels of the unallocated state land portfolio allocated to their more appropriate use and tenure

4 300 parcels 450 parcels 466 parcels

Accuracy of registration of title dealings to deliver public confidence in the integrity of the state’s titling system

4 99.5% 99.8% 99.8%

Percentage of records processed within customer service standards:– Titles Registry (in 5 days)– Digital Cadastral Database (in 7 days)

90%90%

94%93.5%

94%93.4%

(Continued)


Variance reporting

1. This measure will no longer be reported on in the Service Delivery Statement. The Australian Bureau of Statistics will continue to collect and report on this data in series ABS 8412.0—Mineral and Petroleum Exploration, Australia.

2. The 2012–13 actual was lower than anticipated due to processing of bulk applications for coal exploration permits.

3. The 2012–13 actual is lower than the estimated actual due to negotiations extending outside agreed timelines. A case management approach to tenure processing has been implemented.

4. This measure will no longer be reported in the Service Delivery Statement but will continue to be measured and reported in the department’s annual report.

5. There is a lag time of up to several months in receiving information from mines for this measure. The 2013 data received indicates that the rate is above target, but this may need to be adjusted as more information is received.

6. The 2012–13 actual is lower than expected as projects were postponed due to emerging priorities with Mount Morgan.

7. The 2012–13 actual is lower than the target due to resources being diverted to a number of large investigations.

8. The 2012–13 actual is lower than the target due to external delays in significant projects. Wet weather has impacted field work and the demand for training by industry has declined in recent months in response to market fluctuations.

9. The 2012–13 actual is lower than the estimated actual due to a number of significant incidents/accidents across the industry. Resources were diverted to investigations resulting in a reduced number of programmed audit and inspections completed.

10. The 2012–13 actual is lower than expected due to the demand for consultation by industry declining in response to market fluctuations.

11. The 2012–13 actual is lower than expected due to demand for training by industry declining in recent months in response to market fluctuations.

12. The 2012–13 actual for licence transfer and renewals is lower than the target because of deferrals during the year when resources were realigned to activities associated with major project development.

13. This measure has been amended from two measures to one measure for the 2013–14 Service Delivery Statement.

14. This measure relates to surface water management areas. The 2012–13 actual is lower than expected due to the deferral of the final Cooper Creek Resource Operations Plan, until the new Western Rivers strategy is determined.

15. This measure will no longer be reported in the Service Delivery Statement. DNRM will continue to contribute data to the relevant agency to enable reporting of this measure in relevant budget documents and performance reports.

16. The 2012–13 actual is lower than the target because unavoidable staff absences led to time frames being exceeded.

17. The 2012–13 target was exceeded due to increased demand from April 2013 when a link was established with the Queensland Government Open Data portal, allowing data to be found through a search of that portal and then downloaded from the service.


Appendix 2 Legislation administered by DNRM

Aboriginal Land Act 1991 (except to the extent administered by the Treasurer and Minister for Trade and the Attorney-General and Minister for Justice)

Aboriginal and Torres Strait Islander Land Holding Act 2013

Aborigines and Torres Strait Islanders (Land Holding) Act 1985

Acquisition of Land Act 1967

Alcan Queensland Pty. Limited Agreement Act 1965 (except to the extent administered by the Treasurer and Minister for Trade and the Deputy Premier and Minister for State Development, Infrastructure and Planning; Schedule—except to the extent administered by the Minister for Environment and Heritage Protection)

Allan and Stark Burnett Lane Subway Authorisation Act 1926

Aurukun and Mornington Shire Leases Act 1978

Building Units and Group Titles Act 1980 (except to the extent administered by the Attorney-General and Minister for Justice; sections 5, 5A, 119, 133 and 134 jointly administered with the Attorney-General and Minister for Justice)

Cape York Peninsula Heritage Act 2007 (except to the extent administered by the Minister for Environment and Heritage Protection)

Central Queensland Coal Associates Agreement Act 1968 (except to the extent administered by the Treasurer and Minister for Trade and the Deputy Premier and Minister for State Development, Infrastructure and Planning; Schedule part III—except to the extent administered by the Minister for Environment and Heritage Protection; Schedule 1 part III—to the extent that it is relevant to mining or resource management matters)

Central Queensland Coal Associates Agreement (Amendment) Act 1986 (to the extent that it is relevant to mining or resource management matters)

Central Queensland Coal Associates Agreement Amendment Act 1989 (to the extent that it is relevant to mining or resource management matters)

Central Queensland Coal Associates Agreement and Queensland Coal Trust Act 1984 (to the extent that it is relevant to mining or resource management matters)

Century Zinc Project Act 1997 (section 10)

Clean Coal Technology Special Agreement Act 2007

Coal and Oil Shale Mine Workers’ Superannuation Act 1989

Coal Mining Safety and Health Act 1999

Commonwealth Aluminium Corporation Pty. Limited Agreement Act 1957 (except to the extent administered by the Treasurer and Minister for Trade)

Electronic Conveyancing National Law (Queensland) Act 2013

Explosives Act 1999

Foreign Governments (Titles to Land) Act 1948


Foreign Ownership of Land Register Act 1988

Fossicking Act 1994 (except to the extent administered by the Treasurer and Minister for Trade)

Geothermal Energy Act 2010 (except to the extent administered by the Treasurer and Minister for Trade)

Greenhouse Gas Storage Act 2009

Ipswich Trades Hall Act 1986

Lake Eyre Basin Agreement Act 2001 (except to the extent administered by the Minister for Environment and Heritage Protection)

Land Act 1994

Land Protection (Pest and Stock Route Management) Act 2002 (to the extent that it is relevant to stock route management; jointly administered with the Minister for Agriculture, Fisheries and Forestry)

Land Title Act 1994

Land Valuation Act 2010

Mineral Resources Act 1989 (except to the extent administered by the Treasurer and Minister for Trade and the Minister for Environment and Heritage Protection)

Mining and Quarrying Safety and Health Act 1999

Mount Isa Mines Limited Agreement Act 1985 (except to the extent administered by the Treasurer and Minister for Trade and the Minister for Environment and Heritage Protection)

Native Title (Queensland) Act 1993

New South Wales – Queensland Border Rivers Act 1946

North Stradbroke Island Protection and Sustainability Act 2011 (except to the extent administered by the Minister for National Parks, Recreation, Sport and Racing)

Offshore Minerals Act 1998 (except to the extent administered by the Treasurer and Minister for Trade)

Petroleum Act 1923 (except to the extent administered by the Treasurer and Minister for Trade)

Petroleum and Gas (Production and Safety) Act 2004 (except to the extent administered by the Treasurer and Minister for Trade)

Petroleum (Submerged Lands) Act 1982 (except to the extent administered by the Treasurer and Minister for Trade)

Place Names Act 1994

Queensland Nickel Agreement Act 1970 (Schedule parts II and III, except to the extent administered by the Treasurer and Minister for Trade; Schedule parts VI and VII, to the extent that it is relevant to mining or resource management matters)

Queensland Nickel Agreement Act 1988 (to the extent that it is relevant to mining or resource management matters)

Registration of Plans (H.S.P. (Nominees) Pty. Limited) Enabling Act 1980

Registration of Plans (Stage 2) (H.S.P. (Nominees) Pty. Limited) Enabling Act 1984

River Improvement Trust Act 1940

Soil Conservation Act 1986

Soil Survey Act 1929


Starcke Pastoral Holdings Acquisition Act 1994

Strategic Cropping Land Act 2011 (jointly administered with the Minister for Agriculture, Fisheries and Forestry, who has responsibility for Chapter 5 excluding sections 139(1), 143 and 144)

Survey and Mapping Infrastructure Act 2003

Surveyors Act 2003

Thiess Peabody Coal Pty. Ltd. Agreement Act 1962 (except to the extent administered by the Treasurer and Minister for Trade and the Minister for Environment and Heritage Protection)

Thiess Peabody Mitsui Coal Pty. Ltd. Agreements Act 1965 (except to the extent administered by the Treasurer and Minister for Trade and the Minister for Environment and Heritage Protection)

Torres Strait Islander Land Act 1991 (except to the extent administered by the Treasurer and Minister for Trade and the Attorney-General and Minister for Justice)

Valuers Registration Act 1992

Vegetation Management Act 1999

Water Act 2000 (except to the extent administered by the Minister for Environment and Heritage Protection and the Minister for Energy and Water Supply; Chapter 8 section 999, part 4A and part 5 jointly administered with the Minister for Energy and Water Supply)

Water (Commonwealth Powers) Act 2008

Yeppoon Hospital Site Acquisition Act 2006


Appendix 3 Related entities (statutory bodies and other entities)

Nam

eLe

gisl

atio

n un

der

whi

ch e

stab

lishe

dFu

nctio

nEx

empt

ion

unde

r a R

egul

atio

n fr

om a

udit

by th

e Au

dito

r-G

ener

al

(and

if s

o, h

ow th

e Re

gula

tion

prov

ides

for t

he e

ntity

’s a

udit)

*

Cont

rol o

f fu

nds†

Annu

al

repo

rtin

g ar

rang

emen

ts

Boar

d of

Ex

amin

ers

Coal

Min

ing

Safe

ty

and

Hea

lth A

ct 1

999

Dec

ide

the

com

pete

ncie

s ne

cess

ary

for

hold

ers

of c

ertifi

cate

s of

com

pete

ncy.

As

sess

app

lican

ts, o

r hav

e ap

plic

ants

as

sess

ed, f

or c

ertifi

cate

s of

com

pete

ncy.

G

rant

cer

tifica

tes

of c

ompe

tenc

y to

per

sons

w

ho h

ave

dem

onst

rate

d to

the

boar

d’s

satis

fact

ion

the

appr

opria

te c

ompe

tenc

ies.

En

sure

the

com

pete

ncie

s un

der t

his

Act a

re

cons

iste

nt w

ith th

e co

mpe

tenc

ies

requ

ired

by o

ther

sta

tes

for t

he h

olde

rs o

f cer

tifica

tes

of c

ompe

tenc

y. P

erfo

rm o

ther

func

tions

gi

ven

to th

e bo

ard

unde

r the

Coa

l Min

ing

Safe

ty a

nd H

ealth

Act

199

9 or

the

Min

ing

and

Qua

rryi

ng S

afet

y an

d H

ealth

Act

199

9.

No

Acco

unte

d fo

r in

fina

ncia

l st

atem

ents

of

depa

rtm

ent

Annu

al re

port

to

parli

amen

t

* Th

e Au

dito

r-G

ener

al m

ay a

lso

exem

pt a

n ag

ency

from

aud

it by

the

QAO

if it

is c

onsi

dere

d sm

all s

ize

and

low

risk

. †

Det

ails

of fi

nanc

ial r

epor

ting

arr

ange

men

ts, i

nclu

ding

whe

ther

the

tran

sact

ions

of t

he e

ntit

y ar

e ac

coun

ted

for i

n th

e fin

anci

al s

tate

men

ts o

f the

dep

artm

ent.

(Con

tinue

d)


Nam

eLe

gisl

atio

n un

der

whi

ch e

stab

lishe

dFu

nctio

nEx

empt

ion

unde

r a R

egul

atio

n fr

om a

udit

by th

e Au

dito

r-G

ener

al

(and

if s

o, h

ow th

e Re

gula

tion

prov

ides

for t

he e

ntity

’s a

udit)

*

Cont

rol o

f fu

nds†

Annu

al

repo

rtin

g ar

rang

emen

ts

Coal

Min

ing

Safe

ty a

nd

Hea

lth A

dvis

ory

Com

mitt

ee

Coal

Min

ing

Safe

ty

and

Hea

lth A

ct 1

999

Giv

e ad

vice

and

mak

e re

com

men

datio

ns

to th

e m

inis

ter a

bout

pro

mot

ing

and

prot

ectin

g th

e sa

fety

and

hea

lth o

f per

sons

at

coa

lmin

es, b

y pe

riodi

cally

revi

ewin

g:

•th

e eff

ecti

vene

ss o

f thi

s Ac

t, re

leva

nt

Regu

latio

ns a

nd re

cogn

ised

sta

ndar

ds•

the

effec

tive

ness

of t

he c

ontr

ol o

f ri

sk to

any

per

son

from

coa

lmin

ing

oper

atio

ns.

Reco

gnis

e, e

stab

lish

and

publ

ish:

•th

e co

mpe

tenc

ies

acce

pted

by

the

com

mit

tee

as q

ualif

ying

a p

erso

n to

pe

rfor

m th

e ta

sks

pres

crib

ed u

nder

a

Regu

latio

n•

the

safe

ty a

nd h

ealt

h co

mpe

tenc

ies

requ

ired

to p

erfo

rm th

e du

ties

of a

pe

rson

und

er th

is A

ct.

In p

erio

dica

lly re

view

ing

effec

tiven

ess

(see

ab

ove)

, the

com

mitt

ee m

ust c

onsi

der:

•th

e ri

sk m

anag

emen

t per

form

ance

of

the

coal

min

ing

indu

stry

•th

e ap

prop

riat

enes

s of

reco

gnis

ed

stan

dard

s•

educ

atio

n, tr

aini

ng a

nd s

tand

ards

of

com

pete

ncy

wit

hin

the

coal

min

ing

indu

stry

•th

e im

plem

enta

tion

of

reco

mm

enda

tions

from

insp

ecto

rs’

inve

stig

atio

ns, c

oron

ers’

inqu

ests

, bo

ards

of i

nqui

ry a

nd o

ther

sou

rces

•th

e pr

omot

ion

of c

omm

unit

y kn

owle

dge

and

awar

enes

s of

saf

ety

and

heal

th in

th

e co

alm

inin

g in

dust

ry•

any

othe

r mat

ter r

efer

red

to it

by

the

min

iste

r.

No

Acco

unte

d fo

r in

fina

ncia

l st

atem

ents

of

depa

rtm

ent

Annu

al re

port

to

parli

amen

t

* Th

e Au

dito

r-G

ener

al m

ay a

lso

exem

pt a

n ag

ency

from

aud

it by

the

QAO

if it

is c

onsi

dere

d sm

all s

ize

and

low

risk

. †

Det

ails

of fi

nanc

ial r

epor

ting

arr

ange

men

ts, i

nclu

ding

whe

ther

the

tran

sact

ions

of t

he e

ntit

y ar

e ac

coun

ted

for i

n th

e fin

anci

al s

tate

men

ts o

f the

dep

artm

ent.

(Con

tinue

d)


Nam

eLe

gisl

atio

n un

der

whi

ch e

stab

lishe

dFu

nctio

nEx

empt

ion

unde

r a R

egul

atio

n fr

om a

udit

by th

e Au

dito

r-G

ener

al

(and

if s

o, h

ow th

e Re

gula

tion

prov

ides

for t

he e

ntity

’s a

udit)

*

Cont

rol o

f fu

nds†

Annu

al

repo

rtin

g ar

rang

emen

ts

Com

mis

sion

er

for M

ine

Safe

ty

and

Hea

lth

Coal

Min

ing

Safe

ty

and

Hea

lth A

ct 1

999

Advi

se th

e m

inis

ter o

n m

ine

heal

th a

nd

safe

ty m

atte

rs g

ener

ally

. Ful

fil th

e ro

les

of

chai

rper

son

of th

e Co

al M

inin

g Sa

fety

and

H

ealth

Adv

isor

y Co

mm

ittee

and

cha

irper

son

of th

e M

inin

g Sa

fety

and

Hea

lth A

dvis

ory

Com

mitt

ee u

nder

the

Min

ing

and

Qua

rryi

ng

Safe

ty a

nd H

ealth

Act

199

9. M

onito

r and

re

port

to th

e m

inis

ter a

nd to

par

liam

ent

on th

e ad

min

istr

atio

n of

pro

visi

ons

abou

t sa

fety

and

hea

lth u

nder

this

Act

and

oth

er

min

ing

legi

slat

ion.

Per

form

the

func

tions

gi

ven

to th

e co

mm

issi

oner

und

er th

e pr

ovis

ions

of t

his

Act a

nd o

ther

min

ing

legi

slat

ion.

Acco

unte

d fo

r in

fina

ncia

l st

atem

ents

of

depa

rtm

ent

Annu

al re

port

to

parli

amen

t

Dum

ares

q–Ba

rwon

Bo

rder

Riv

ers

Com

mis

sion

New

Sou

th W

ales

–

Que

ensl

and

Bord

er

Rive

rs A

ct 1

946

Cont

rol,

on b

ehal

f of t

he tw

o st

ates

, the

op

erat

ion

and

mai

nten

ance

of G

lenl

yon

Dam

, Bog

gabi

lla W

eir a

nd a

num

ber o

f ot

her s

mal

l wei

rs a

nd re

gula

tors

in th

e bo

rder

cat

chm

ents

. Arr

ange

for c

erta

in ri

ver

flow

s an

d gr

ound

wat

er le

vels

in th

e bo

rder

ca

tchm

ents

to b

e m

onito

red.

No

Cont

rols

ow

n fu

nds

Annu

al re

port

to

parli

amen

t

* Th

e Au

dito

r-G

ener

al m

ay a

lso

exem

pt a

n ag

ency

from

aud

it by

the

QAO

if it

is c

onsi

dere

d sm

all s

ize

and

low

risk

. †

Det

ails

of fi

nanc

ial r

epor

ting

arr

ange

men

ts, i

nclu

ding

whe

ther

the

tran

sact

ions

of t

he e

ntit

y ar

e ac

coun

ted

for i

n th

e fin

anci

al s

tate

men

ts o

f the

dep

artm

ent.

(Con

tinue

d)


Nam

eLe

gisl

atio

n un

der

whi

ch e

stab

lishe

dFu

nctio

nEx

empt

ion

unde

r a R

egul

atio

n fr

om a

udit

by th

e Au

dito

r-G

ener

al

(and

if s

o, h

ow th

e Re

gula

tion

prov

ides

for t

he e

ntity

’s a

udit)

*

Cont

rol o

f fu

nds†

Annu

al

repo

rtin

g ar

rang

emen

ts

Min

ing

Safe

ty

and

Hea

lth

Advi

sory

Co

mm

ittee

Min

ing

and

Qua

rryi

ng

Safe

ty a

nd H

ealth

Act

19

99

Giv

e ad

vice

and

mak

e re

com

men

datio

ns to

th

e m

inis

ter a

bout

pro

mot

ing

and

prot

ectin

g th

e sa

fety

and

hea

lth o

f per

sons

at m

ines

, by

per

iodi

cally

revi

ewin

g:

•th

e eff

ecti

vene

ss o

f thi

s Ac

t, re

leva

nt

Regu

latio

ns a

nd g

uide

lines

•th

e eff

ecti

vene

ss o

f the

con

trol

of r

isk

to a

ny p

erso

n fr

om m

inin

g op

erat

ions

.Es

tabl

ish,

reco

gnis

e an

d pu

blis

h:

•th

e co

mpe

tenc

ies

acce

pted

by

the

com

mit

tee

as q

ualif

ying

a p

erso

n to

pe

rfor

m s

tate

d ta

sks

•th

e sa

fety

and

hea

lth

com

pete

ncie

s re

quire

d to

per

form

the

dutie

s of

a

pers

on u

nder

this

Act

.•

If as

ked

by th

e m

inis

ter,

mak

e re

com

men

datio

ns a

bout

indi

vidu

als

nom

inat

ed to

be

dist

rict

wor

kers

re

pres

enta

tive

s.In

per

iodi

cally

revi

ewin

g eff

ectiv

enes

s (s

ee

abov

e), c

onsi

der:

•th

e ri

sk m

anag

emen

t per

form

ance

of

the

min

ing

indu

stry

•th

e ap

prop

riat

enes

s of

gui

delin

es•

educ

atio

n, tr

aini

ng a

nd s

tand

ards

of

com

pete

ncy

wit

hin

the

min

ing

indu

stry

•th

e im

plem

enta

tion

of

reco

mm

enda

tions

from

insp

ecto

rs’

inve

stig

atio

ns, c

oron

ers’

inqu

ests

, bo

ards

of i

nqui

ry a

nd o

ther

sou

rces

•th

e pr

omot

ion

of c

omm

unit

y kn

owle

dge

and

awar

enes

s of

saf

ety

and

heal

th in

th

e m

inin

g in

dust

ry•

any

othe

r mat

ter r

efer

red

to it

by

the

min

iste

r.

No

Acco

unte

d fo

r in

fina

ncia

l st

atem

ents

of

depa

rtm

ent

Annu

al re

port

to

parli

amen

t

* Th

e Au

dito

r-G

ener

al m

ay a

lso

exem

pt a

n ag

ency

from

aud

it by

the

QAO

if it

is c

onsi

dere

d sm

all s

ize

and

low

risk

. †

Det

ails

of fi

nanc

ial r

epor

ting

arr

ange

men

ts, i

nclu

ding

whe

ther

the

tran

sact

ions

of t

he e

ntit

y ar

e ac

coun

ted

for i

n th

e fin

anci

al s

tate

men

ts o

f the

dep

artm

ent.

(Con

tinue

d)


Nam

eLe

gisl

atio

n un

der

whi

ch e

stab

lishe

dFu

nctio

nEx

empt

ion

unde

r a R

egul

atio

n fr

om a

udit

by th

e Au

dito

r-G

ener

al

(and

if s

o, h

ow th

e Re

gula

tion

prov

ides

for t

he e

ntity

’s a

udit)

*

Cont

rol o

f fu

nds†

Annu

al

repo

rtin

g ar

rang

emen

ts

Rive

r im

prov

emen

t tr

usts

(12)

Rive

r Im

prov

emen

t Tr

ust A

ct 1

940

Prot

ect a

nd im

prov

e riv

ers,

repa

ir an

d pr

even

t dam

age

to ri

vers

and

pre

vent

or

miti

gate

floo

ding

of l

and

by ri

verin

e flo

ods.

No

Cont

rols

ow

n fu

nds

Sum

mar

y of

an

nual

repo

rts

to

parli

amen

t

Surv

eyor

s Bo

ard

of

Que

ensl

and

Surv

eyor

s Ac

t 200

3Es

tabl

ish

com

pete

ncy

fram

ewor

ks fo

r th

e re

gist

ratio

n of

sur

veyo

rs, r

egis

ter

surv

eyor

s, in

vest

igat

e co

mpl

aint

s an

d co

nduc

t dis

cipl

inar

y pr

ocee

ding

s in

rela

tion

to th

e pr

ofes

sion

al c

ondu

ct o

f reg

iste

red

surv

eyor

s.

No‡

Cont

rols

ow

n fu

nds

Annu

al re

port

to

parli

amen

t

Valu

ers

Regi

stra

tion

Boar

d of

Q

ueen

slan

d

Valu

ers

Regi

stra

tion

Act 1

992

Prot

ect t

he p

ublic

thro

ugh

the

regi

stra

tion

of

valu

ers

of la

nd. A

utho

rise

the

inve

stig

atio

n of

com

plai

nts

abou

t the

con

duct

of

regi

ster

ed v

alue

rs. A

ppoi

nt a

com

mitt

ee to

co

nsid

er a

n in

vest

igat

or’s

repo

rt w

here

the

inve

stig

ator

had

laid

a c

harg

e of

mis

cond

uct

agai

nst a

val

uer i

n a

prof

essi

onal

sen

se o

r in

com

pete

nce

or n

eglig

ence

in th

e pe

rson

’s

perf

orm

ance

as

a va

luer

. Mai

ntai

n a

list o

f sp

ecia

list r

etai

l val

uers

.

No

Cont

rols

ow

n fu

nds

Annu

al re

port

to

parli

amen

t

Wat

er

auth

oriti

es (4

9)W

ater

Act

200

0Ca

rry

out w

ater

act

iviti

es d

ecid

ed b

y ea

ch

auth

ority

suc

h as

wat

er s

uppl

y fo

r sto

ck

and

dom

estic

pur

pose

s, ir

rigat

ion

and

peri-

urba

n ru

ral l

and

uses

, and

pro

visi

on o

f co

ordi

nate

d dr

aina

ge s

yste

ms.

No

Cont

rols

ow

n fu

nds

Sum

mar

y of

an

nual

repo

rts

to

parli

amen

t

* Th

e Au

dito

r-G

ener

al m

ay a

lso

exem

pt a

n ag

ency

from

aud

it by

the

QAO

if it

is c

onsi

dere

d sm

all s

ize

and

low

risk

. †

Det

ails

of fi

nanc

ial r

epor

ting

arr

ange

men

ts, i

nclu

ding

whe

ther

the

tran

sact

ions

of t

he e

ntit

y ar

e ac

coun

ted

for i

n th

e fin

anci

al s

tate

men

ts o

f the

dep

artm

ent.

‡

How

ever

, the

Aud

itor

-Gen

eral

has

adv

ised

that

the

boar

d is

elig

ible

for e

xem

ptio

n fr

om a

udit

by th

e Au

dito

r-G

ener

al a

nd a

ccor

ding

ly th

e bo

ard

has

enga

ged

its

own

audi

tors

to

ca

rry

out a

nnua

l aud

its.


Appendix 4 Boards and committeesNa

me

and

type

of b

oard

or

com

mitt

eeRo

le, f

unct

ion

and

resp

onsi

bilit

ies

Achi

evem

ents

201

2–13

Cost

s*

Chai

rper

sons

for c

onfe

renc

es fo

r ob

ject

ions

to v

alua

tions

gre

ater

th

an $

5 m

illio

n (p

resc

ribed

und

er

the

Land

Val

uatio

n Ac

t 201

0)(A

dvis

ory)

Faci

litat

e an

ope

n ex

chan

ge o

f rel

evan

t inf

orm

atio

n be

twee

n th

e Va

luer

-Gen

eral

and

the

obje

ctor

, on

a ‘w

ithou

t pre

judi

ce’ b

asis

. The

pro

cess

is d

esig

ned

to

achi

eve

sett

lem

ent b

etw

een

the

part

ies

in a

con

cilia

tory

m

anne

r with

out r

ecou

rse

to a

form

al c

ourt

hea

ring.

Ther

e w

ere

215

obje

ctio

ns to

val

uatio

ns g

reat

er th

an

$5 m

illio

n al

loca

ted

to c

hairp

erso

ns in

the

2012

–13

finan

cial

ye

ar. O

f the

se, 9

wer

e ei

ther

sub

sequ

ently

with

draw

n or

did

no

t pro

ceed

bec

ause

of a

lack

of d

iscl

osur

e. T

here

wer

e 20

6 co

nfer

ence

s he

ld.

Of t

he 2

15 o

bjec

tions

allo

cate

d, 1

59 (7

6%) w

ere

sett

led.

$113

413

Chie

f Exe

cutiv

e O

ffice

rs C

omm

ittee

fo

r Nat

ural

Res

ourc

e M

anag

emen

t in

Sou

th E

ast Q

ueen

slan

d(A

dvis

ory)

Prov

ide

dire

ctio

n to

impr

ove

coor

dina

tion

of p

riorit

ies,

po

licie

s an

d in

vest

men

t acr

oss

fede

ral,

stat

e an

d lo

cal

gove

rnm

ent a

ctiv

ities

to a

chie

ve th

e de

sire

d re

gion

al

outc

omes

for n

atur

al re

sour

ce m

anag

emen

t in

the

Sout

h Ea

st Q

ueen

slan

d Re

gion

al P

lan

2009

.

Follo

win

g a

min

iste

rial d

ecis

ion,

the

resp

onsi

bilit

y fo

r ca

tchm

ent m

anag

emen

t was

pas

sed

to th

e D

epar

tmen

t of

Ener

gy a

nd W

ater

Sup

ply

as p

art o

f the

30-

year

wat

er p

lan

impl

emen

tatio

n.

Nil

Expe

nditu

re A

dvis

ory

Com

mitt

ee

for t

he O

ffice

of G

roun

dwat

er

Impa

ct A

sses

smen

t(A

dvis

ory)

Prov

ide

inde

pend

ent a

dvic

e to

the

Offi

ce o

f G

roun

dwat

er Im

pact

Ass

essm

ent o

n its

est

imat

ed c

osts

fo

r per

form

ing

the

requ

ired

func

tions

und

er C

hapt

er 3

of

the

Wat

er A

ct 2

000.

The

com

mitt

ee c

ondu

cted

two

mee

tings

dur

ing

2012

–13.

The

Offi

ce o

f Gro

undw

ater

Impa

ct A

sses

smen

t was

es

tabl

ishe

d on

1 Ja

nuar

y 20

13 to

take

ove

r the

role

of t

he

Que

ensl

and

Wat

er C

omm

issi

on in

man

agin

g cu

mul

ativ

e im

pact

s of

coa

l sea

m g

as a

ctiv

ities

on

grou

ndw

ater

. The

co

mm

ittee

met

in F

ebru

ary

2013

to d

iscu

ss th

e es

tabl

ishm

ent

of th

e O

ffice

of G

roun

dwat

er Im

pact

Ass

essm

ent w

ithin

D

NRM

. The

com

mitt

ee a

lso

met

in M

ay 2

013

to d

iscu

ss th

e 20

13–1

4 es

timat

ed c

osts

.

Nil

Inte

rim S

tock

Rou

te A

dvis

ory

Pane

l(A

dvis

ory)

Advi

se D

NRM

on

the

deve

lopm

ent a

nd im

plem

enta

tion

of a

spec

ts o

f sto

ck ro

utes

legi

slat

ion,

incl

udin

g re

clas

sific

atio

n, in

trod

uctio

n of

gra

zing

aut

horit

ies

and

oper

atio

nal a

spec

ts.

The

pane

l did

not

mee

t (is

in a

beya

nce)

.N

il

Que

ensl

and

Clea

n Co

al C

ounc

il(A

dvis

ory)

Advi

se o

n fa

cilit

atin

g th

e de

velo

pmen

t and

dep

loym

ent

of lo

w-e

mis

sion

coa

l tec

hnol

ogie

s in

Que

ensl

and.

Advi

se o

n fu

ndin

g pr

iorit

ies,

pro

ject

fund

ing

requ

ests

re

ceiv

ed b

y th

e co

unci

l and

pos

sibl

e fu

ndin

g so

urce

s fo

r cl

ean

coal

tech

nolo

gy a

nd re

late

d pr

ojec

ts.

Asse

ss a

nd re

com

men

d pr

ojec

t fun

ding

und

er th

e Cl

ean

Coal

Tec

hnol

ogy

Spec

ial A

gree

men

t Act

200

7.Co

ordi

nate

Que

ensl

and’

s in

volv

emen

t in

inte

rnat

iona

l co

llabo

ratio

ns re

latin

g to

cle

an c

oal t

echn

olog

y.Ad

vise

on

othe

r mat

ters

rele

vant

to th

e de

velo

pmen

t of

clea

n co

al te

chno

logy

.

The

coun

cil d

id n

ot m

eet i

n 20

12–1

3.N

il

(Con

tinue

d)*

The

info

rmat

ion

on c

osts

incl

udes

the

tota

l rem

uner

atio

n pa

ymen

ts m

ade

to th

e ch

air a

nd m

embe

rs o

f eac

h bo

ard

or c

omm

itte

e fo

r the

repo

rtin

g pe

riod

—th

at is

, the

to

tal s

um p

aid

out i

n fe

es (f

or m

eeti

ngs

and

spec

ial a

ssig

nmen

ts) a

nd to

tal o

n-co

sts.

On-

cost

s in

clud

e tr

avel

, acc

omm

odat

ion,

mot

or v

ehic

le a

llow

ance

, con

sult

ancy

fe

es, a

irfa

res

and

hiri

ng o

f mot

or v

ehic

les.


Nam

e an

d ty

pe o

f boa

rd o

r co

mm

ittee

Role

, fun

ctio

n an

d re

spon

sibi

litie

sAc

hiev

emen

ts 2

012–

13Co

sts*

Que

ensl

and

Gre

at A

rtes

ian

Basi

n Ad

viso

ry C

ounc

il (S

tatu

tory

)

Ensu

re th

e m

inis

ter r

espo

nsib

le fo

r the

Wat

er A

ct 2

000

is fu

lly a

dvis

ed o

f the

vie

ws

of in

dust

ry, c

omm

uniti

es

and

othe

r sta

keho

lder

s of

the

wat

er re

sour

ce

man

agem

ent i

ssue

s co

ncer

ning

the

Gre

at A

rtes

ian

Basi

n.

The

coun

cil m

et tw

ice

durin

g 20

12–1

3. K

ey m

atte

rs fo

r adv

ice

incl

uded

the

impa

cts

of c

oal s

eam

gas

; the

impl

emen

tatio

n an

d 5-

year

revi

ew o

f the

Wat

er R

esou

rce

(Gre

at A

rtes

ian

Basi

n) P

lan

2006

; the

sui

tabi

lity

and

effec

tiven

ess

of

gove

rnm

ent p

olic

ies,

pro

gram

s, p

roje

cts

and

initi

ativ

es

asso

ciat

ed w

ith o

r im

pact

ing

the

sust

aina

ble

man

agem

ent

of th

e G

reat

Art

esia

n Ba

sin

wat

er re

sour

ces;

and

rela

ted

initi

ativ

es s

uch

as G

ABSI

. Thi

s ad

vice

was

pro

vide

d th

roug

h m

eetin

gs w

ith th

e m

inis

ter a

s w

ell a

s th

roug

h re

port

s co

mpi

led

soon

aft

er e

ach

coun

cil m

eetin

g.

$45

331.

39

Que

ensl

and

Inde

pend

ent S

cien

tific

Pane

l for

Und

ergr

ound

Coa

l G

asifi

catio

n(P

olic

y/re

view

/spe

cial

ist)

Appl

y in

divi

dual

and

col

lect

ive

expe

rtis

e to

an

alys

e, a

sses

s an

d ev

alua

te v

ario

us te

chni

cal a

nd

envi

ronm

enta

l con

side

ratio

ns in

clud

ing,

but

not

lim

ited

to:

•th

e ad

equa

cy o

f exi

stin

g go

vern

men

t en

viro

nmen

tal a

nd s

afet

y ap

prov

als

•ap

prop

riat

e gu

idel

ines

for t

he u

nder

grou

nd c

oal

gasi

ficat

ion

proc

ess

to m

itig

ate

and

safe

ly m

anag

e en

viro

nmen

tal r

isks

•th

e en

viro

nmen

tal r

isk

of s

cale

-up

of th

e ga

sific

atio

n pr

oces

s to

sur

roun

ding

land

, wat

er a

nd

reso

urce

use

rs•

the

appr

opri

ate

sepa

ratio

n of

the

clai

med

in

com

patib

le p

roce

sses

of g

asifi

catio

n an

d co

al

seam

gas

ext

ract

ion

(‘buff

er a

reas

’)•

the

crit

ical

and

pee

r-re

view

ed a

sses

smen

ts o

f va

riou

s m

ater

ials

, inc

ludi

ng th

e in

divi

dual

pilo

t pr

ojec

t rep

orts

.

The

pane

l del

iver

ed it

s re

port

on

unde

rgro

und

coal

ga

sific

atio

n on

1 Ju

ly 2

013.

$129

662

.87

Refe

rral

Pan

el (M

orat

oriu

m)

(Sta

tuto

ry)

Cons

ider

land

hold

er a

pplic

atio

ns to

var

y th

e eff

ect o

f m

orat

oriu

m n

otic

es to

allo

w a

dditi

onal

tim

e to

com

plet

e re

leva

nt w

orks

to ta

ke o

r int

erfe

re w

ith w

ater

(as

per

the

Wat

er A

ct 2

000)

, and

to m

ake

reco

mm

enda

tions

to

the

min

iste

r abo

ut w

heth

er th

e ap

plic

atio

ns s

houl

d be

gr

ante

d.

The

pane

l did

not

mee

t in

2012

–13.

The

dep

artm

ent i

s cu

rren

tly re

view

ing

mem

bers

hip.

Nil

(Con

tinue

d)*

The

info

rmat

ion

on c

osts

incl

udes

the

tota

l rem

uner

atio

n pa

ymen

ts m

ade

to th

e ch

air a

nd m

embe

rs o

f eac

h bo

ard

or c

omm

itte

e fo

r the

repo

rtin

g pe

riod

—th

at is

, the

to

tal s

um p

aid

out i

n fe

es (f

or m

eeti

ngs

and

spec

ial a

ssig

nmen

ts) a

nd to

tal o

n-co

sts.

On-

cost

s in

clud

e tr

avel

, acc

omm

odat

ion,

mot

or v

ehic

le a

llow

ance

, con

sult

ancy

fe

es, a

irfa

res

and

hiri

ng o

f mot

or v

ehic

les.


Nam

e an

d ty

pe o

f boa

rd o

r co

mm

ittee

Role

, fun

ctio

n an

d re

spon

sibi

litie

sAc

hiev

emen

ts 2

012–

13Co

sts*

Refe

rral

Pan

el (R

esou

rce

Ope

ratio

ns P

lans

)(S

tatu

tory

)

Cons

ider

sub

mis

sion

s by

wat

er e

ntitl

emen

t hol

ders

se

ekin

g to

var

y a

prop

osed

wat

er a

lloca

tion,

en

viro

nmen

tal m

anag

emen

t rul

e, w

ater

-sha

ring

rule

and

/or a

n im

plem

enta

tion

sche

dule

; mak

e re

com

men

datio

ns to

DN

RM’s

chi

ef e

xecu

tive

abou

t w

heth

er th

e is

sues

rais

ed in

the

subm

issi

ons

shou

ld b

e co

nsid

ered

for t

he fi

nal p

lan.

Prov

ide

advi

ce to

the

chie

f exe

cutiv

e on

app

licat

ions

fo

r wat

er li

cenc

es (i

f req

uire

d by

the

chie

f exe

cutiv

e or

a

reso

urce

ope

ratio

ns p

lan)

.

Ther

e w

as n

o re

quire

men

t for

con

sulta

tion

with

the

pane

l in

2012

–13.

Nil

Sout

h Ea

st Q

ueen

slan

d N

atur

al

Reso

urce

Man

agem

ent R

egio

nal

Impl

emen

tatio

n G

roup

(Adv

isor

y)

Coor

dina

te a

nd im

plem

ent p

riorit

ies,

pol

icie

s an

d in

vest

men

t acr

oss

fede

ral,

stat

e an

d lo

cal g

over

nmen

t ac

tiviti

es to

ach

ieve

the

desi

red

regi

onal

out

com

es

for n

atur

al re

sour

ce m

anag

emen

t in

the

Sout

h Ea

st

Que

ensl

and

Regi

onal

Pla

n 20

09.

This

gro

up h

as n

ot b

een

activ

e in

201

2–13

and

may

be

diss

olve

d.N

il

Stat

e Ru

ral L

ease

hold

Lan

d M

inis

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Appendix 5 Overseas travel*

Name of officer/ member and position Destination Reason for travel Agency cost

Contribution from other agencies or sources

Kevin Arnold, Special Projects Officer—Asbestos

Papua New Guinea

Conduct asbestos materials audit at Newcrest Lihir operations at Utu, Mongop and Namatanai, Island of New Ireland, New Ireland Province (fee-for-service work); promote Simtars for international work in occupational hygiene

$1152.75(Newcrest Mining Limited, Lihir)

Stewart Bell, Commissioner for Mine Safety and Health

New Zealand Following the release of the report from the Royal Commission into the Pike River Mine disaster, met with the families of the victims to discuss the findings

$1327.43

Ashrafuddin Chowdhury, Principal Engineer

Canada Attend annual meeting of the International Electrotechnical Commission’s certification for explosion-protected products and services (IECEx)

$5209.00

André De Kock, Acting Director, Occupational Hygiene Environment and Chemistry Centre

United Kingdom

Represent Australia at International Electrotechnical Commission meeting MT60079-29: Electrical apparatus for the detection and measurement of flammable gases; provide Australian input into the standards associated with gas detectors

$1949.00 $3292.00(Standards Australia)

Geoff Downs, Chief Inspector of Explosives

Spain Attend the 13th International Conference of Chief Inspectors of Explosives in Oviedo, Spain; present papers on Queensland's explosives legislative approach and obtain updated information on trends and emerging issues with regulators and industry in the international commercial explosives community

$5246.11

Paul Harrison, Executive Director

United States

Operate a trade display at the Society for Mining, Metallurgy and Exploration annual meeting and exhibition; review current mine safety and health research with senior officials from the National Institute for Occupational Safety and Health, in particular the development of a mine escape vehicle and the efficacy of virtual reality training

$6945.77 $3922.74(SICK Process Automation)

Laurie Hutton, Acting Director, Exploration Attraction

Canada Represent Queensland in Toronto at the Prospectors and Developers Association of Canada Trade Show and Investors Exchange

$6238.00

* All overseas travel detailed was undertaken by DNRM officers for official departmental business during 2012–13. The minister approved all this overseas travel.

(Continued)




Steven Jacoby, Executive Director

New Zealand Attend the ANZLIC (Spatial Information Council) meeting, representing Queensland

$1349.60

Bradford John, Acting Chief Government Geologist, GSQ

India Promote exploration and investment in Queensland's mining and petroleum industries through Team Australia promotional activities at resource seminars in India

$2360.00

Bradford John, Acting Chief Government Geologist, GSQ

China and Japan

Promote exploration and investment in Queensland's mining and petroleum industries at promotional activities at resource seminars in Tianjin and Tokyo and participate in the China Mining Congress and Expo 2012 in Tianjin

$8286.00

Gregory Manthey, Principal Occupational Health and Hygiene Specialist

Mongolia Conduct occupational hygiene training together with the Minerals Industry Safety and Health Centre, The University of Queensland (fee-for-service work); promote Simtars for international work in occupational hygiene

$1338.00(Minerals Industry Safety and Health Centre, The University of Queensland)

Sean Muller, Analytical Chemist

India Install Simtars-developed gas monitoring system at a mines rescue station for Singareni Collieries Company

$10 927.00(Singareni Collieries Company Ltd)

Tilman Rasche, Senior Inspector of Mines

India Exhibit Simtars services at IMME Kolkata, India's largest mining exhibition; attend meetings with potential mining and government clients to promote Simtars services in Queensland; present at Global Mining Summit on mining risk management; attend meetings with Coal India management regarding proposal on risk management education

$10 447.00

John Smith, Senior Inspector of Mines (Mechanical)

New Zealand Assist the New Zealand Government undertake an audit at Waihi gold mine, providing mechanical engineering expertise

$2201.75(New Zealand Ministry of Business, Innovation and Employment)

(Continued)




Robert Gavin Taylor, Chief Inspector of Coal Mines

New Zealand Attend Pike River Expert Reference Group meetings


Robert Gavin Taylor, Chief Inspector of Coal Mines

New Zealand Attend Pike River Expert Reference Group meetings


Moya Tomlinson, Principal Policy Officer

United States

Attend workshop on sustainable and productive use of land and water resources, by enhancing understanding of policy development to achieve the outcomes of productive and healthy natural water systems

$3062.50(Stanford Woods Institute for the Environment, Stanford University, United States)


Appendix 6 Queensland Multicultural Action Plan 2011–14

Whole-of-government core outcomes for Queensland Multicultural Action Plan 2011–14

Core outcome Performance indicators Measure

Improved cultural competence of staff

Number of staff that have participated in cultural competence training annually Nil

Number of staff that have participated in cultural competence training as a percentage of total number of department staff for the year

Nil

Improved access to interpreters for clients when accessing services

Amount spent annually on interpreters engaged by department and government-funded non-government organisations Nil

Number of interpreters engaged annually by department and government-funded non-government organisations Nil

Improved communication and engagement with culturally and linguistically diverse communities and/or organisations

Number of key information publications annually translated into languages other than English 7*

Number of languages in which publications are available 3†

Number of information sessions or workshops held for people from culturally and linguistically diverse backgrounds Nil

Number of culturally and linguistically diverse groups, peak bodies and other stakeholders consulted or engaged annually on the development or implementation of department projects, services, policies and programs

Nil

Improved recruitment and retention strategies for staff from culturally and linguistically diverse backgrounds

Number and percentage of staff indicating they are from a non–English speaking background

173 employees (7.03%)

Number of complaints about racial discrimination within the department

1 recorded complaint

* Publication topics include minerals, coal, coal seam gas, unconventional petroleum sources, uranium, rare earths and

conventional petroleum sources.

† Chinese (simplified), Korean and Japanese.


Appendix 6 Consultancies

AreaConsultancy expenditure 2012–13 ($)

Management 2 522

Human resources management —

Communications —

Finance and accounting 41 218

Professional and technical 1 039 490

Total 1 083 230


Abbreviations

BaSS Business and Stakeholder Solutions

COAG Council of Australian Governments

DEEDI Department of Employment, Economic Development and Innovation

DNRM Department of Natural Resources and Mines

DOGIT deed of grant in trust

EMG Executive Management Group

GABSI Great Artesian Basin Sustainability Initiative

GSQ Geological Survey of Queensland

ICT Information and Communications Technology

NWI National Water Initiative

NWMS National Water Market System

SEWPAC Department of Sustainability, Environment, Water, Population and Communities

SES Senior Executive Service

Simtars Safety in Mines Testing and Research Station

SMF Senior Management Forum

SSQ Smart Service Queensland

QAO Queensland Audit Office

QDEX Queensland Digital Exploration Reports

QGIAS Queensland Government Internal Audit Service

QRA Queensland Reconstruction Authority

QVAS Queensland Valuation and Sales

WHS work health and safety


Compliance checklist

Summary of requirement Basis for requirementAnnual report reference

Letter of compliance

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

ARR* section 8 Page 3

Accessibility

Table of contentsGlossary

ARR section 10.1 Pages 1–2

Public availability ARR section 10.2 Inside front cover

Interpreter service statementQueensland Government Language Services PolicyARR section 10.3

Inside front cover

Copyright noticeCopyright Act 1968ARR section 10.4

Inside front cover

Information licensing

Queensland Government Enterprise Architecture—Information licensingARR section 10.5

Inside front cover

General information

Introductory information ARR section 11.1 Pages 4–6

Agency role and main functions ARR section 11.2 Pages 5–6

Operating environment ARR section 11.3 Pages 7–16

Machinery-of-government changes ARR section 11.4 Page 31

Non-financial performance

Government objectives for the community ARR section 12.1 Pages 5, 7

Other whole-of-government plans/specific initiatives ARR section 12.2 Pages 11–13

Agency objectives and performance indicators ARR section 12.3 Pages 7–11

Agency service areas, service standards and other measures ARR section 12.4 Pages 116–18

Financial performance

Summary of financial performance ARR section 13.1 Pages 20–2

Chief Finance Officer statement ARR section 13.2 Page 44

Governance—management and structure

Organisational structure ARR section 14.1 Pages 31–3

Executive management ARR section 14.2 Pages 23–30

Related entities ARR section 14.3 Pages 122–6

Boards and committees ARR section 14.4 Pages 127–9

Public Sector Ethics Act 1994Public Sector Ethics Act 1994 (section 23 and Schedule)ARR section 14.5

Page 35

(Continued)


Summary of requirement Basis for requirementAnnual report reference

Governance—risk management and accountability

Risk management ARR section 15.1 Pages 36–7

External scrutiny ARR section 15.2 Pages 18–19

Audit committee ARR section 15.3 Pages 36–7

Internal audit ARR section 15.4 Pages 37–8

Public Sector Renewal Program ARR section 15.5 Pages 15–16

Information systems and recordkeeping ARR section 15.7 Pages 38–9

Governance—human resources

Workforce planning, attraction and retention and performance ARR section 16.1 Pages 40–2

Early retirement, redundancy and retrenchment

Directive no. 11/12, Early retirement, redundancy and retrenchmentARR section 16.2

Page 43

Voluntary separation program ARR section 16.3 Page 43

Open data Open data ARR section 17 Page 17

Financial statements

Certification of financial statements

Financial Accountability Act 2009 section 62Financial and Performance Management Standard 2009 sections 42, 43 and 50ARR section 18.1

Page 113

Independent auditors report

Financial Accountability Act 2009 section 62Financial and Performance Management Standard 2009 section 50ARR section 18.2

Pages 114–15

Remuneration disclosures

Financial reporting requirements for Queensland Government agenciesARR section 18.3

Pages 81–3

* The State of Queensland (Department of the Premier and Cabinet) 2013, Annual report requirements for Queensland Government agencies, Brisbane.


Contacts

Head office61 Mary Street BRISBANE QLD 4000

PostPO Box 15216 CITY EAST QLD 4002

Phone13 QGOV (13 74 68)

Annual report enquiriesDirector, Strategy and Performance Department of Natural Resources and Mines PO Box 15216 CITY EAST QLD 4002

Email: [email protected] Phone: (07) 3199 8230

Social media and website facebook.com/LandQueensland facebook.com/MiningQld

twitter.com/landqueensland twitter.com/MiningQLD

www.dnrm.qld.gov.au

mailto:[email protected]

facebook.com/LandQueensland

facebook.com/MiningQld

twitter.com/landqueensland

twitter.com/MiningQLD

www.dnrm.qld.gov.au

Department of Natural Resources and Mines www.dnrm.qld.gov.au

www.daff.qld.gov.au

Documents

2012-13 Annual Report Department of Natural Resources and Mines · 2013. 10. 1. · 2012–16 strategic objectives This section highlights the department’s 2012–13 achievements