WHEATBELT DEVELOPMENT COMMISSION

WHEATBELT DEVELOPMENT COMMISSION

Annual Report

2002

Wheatbelt Development Commission Annual Report 2002

1 – STATEMENT OF COMPLIANCE

HON KIM CHANCE

MINISTER FOR THE MID WEST, WHEATBELT AND GREAT SOUTHERN In accordance with Section 66 of the Financial Administration and Audit Act 1985, we hereby submit for your information and presentation to Parliament, the Annual Report of the Wheatbelt Development Commission for the financial year ended 30 June 2002.

The Annual Report has been prepared in accordance with the provisions of the Financial Administration and Audit Act 1985.

Cr Michael Bates David Singe Chairman of the Board Director and Member of the Board

Date: 27th August 2002 Date: 27th August 2002

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2 – OFFICE LOCATIONS

AVON Wheatbelt Development Commission 14 Wellington Street (PO Box 250) NORTHAM WA 6401 Telephone: 08 9622 7222 Fax: 08 9622 7406

CENTRAL SOUTH Wheatbelt Development Commission Government Offices, Park Street (PO Box 258) NARROGIN WA 6312 Telephone: 08 9881 5888 Fax: 08 9881 3363

CENTRAL MIDLANDS Wheatbelt Development Commission Foundation Centre, 13 Dandaragan Street (PO Box 240) MOORA WA 6510 Telephone: 08 9651 1770 Fax: 08 9651 1910

CENTRAL EAST Wheatbelt Development Commission 110 Barrack Street (PO Box 420) MERREDIN WA 6415 Telephone: 08 9041 1445 Fax: 08 9041 2297 Email: [email protected] Website: http://www.wheatbelt.wa.gov.au

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mailto:[email protected]

http://www.wheatbelt.wa.gov.au/


3 – CONTENTS

1 LETTER OF TRANSMITTAL

2 OFFICE LOCATIONS

3 TABLE OF CONTENTS

4 CHAIRMAN’S REPORT

5 REPORT ON OPERATIONS

6 OUTPUTS

7 THE WHEATBELT REGION

8 ORGANISATIONAL STRUCTURE

9 BOARD OF THE COMMISSION

10 ACTIVITY HIGHLIGHTS

11 OUTLOOK FOR 2001 – 2002

12 INFORMATION & COMPLIANCE STATEMENTS

13 APPENDICES

(1) Regional Boundaries of the Wheatbelt Development Commission

(2) Statement of Performance Indicators

(3) Financial Statements

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4 – CHAIRMAN’S REPORT

The year of 2001/2002 has been a year of consolidation and progress at the Wheatbelt Development Commission. The new membership of the board is proving itself to be a competent and tightly focused team and the new staff members are developing their skills and effectiveness. Trying seasonal conditions in the agricultural sector are mitigating against some of the most favourable market conditions for some years.

The Commission continues to pursue its role as a facilitator and

a provider of information services to stakeholders within and outside of the region. We continue to nurture existing partnerships and to identify new partners to deliver services consistent with our twelve key objective areas. These twelve key objective areas provide a framework within which the commission pursues the broader goal of regional development for the Wheatbelt. There have been innumerable projects that have consumed the resources of the commission over the year. These projects cover the full range of size and complexity from the very simplest provision of information to assisting in facilitating multi-million dollar projects. It is particularly pleasing to see major developments such as the consolidation of the Avon Industrial Park taking place. Sadly it is becoming critical that the Commission take an increasingly higher profile in attracting significantly improved infrastructure in the region, particularly in energy and transport. We administered the inaugural funding round of the Wheatbelt Regional Development Scheme this year. The scheme forms part of the government’s 4 year, $75 million Regional Investment Fund and provided $400,000 for regional development projects in the region. We learnt much from the process of administering the round and are confident that the applications approved are all quality, high-priority projects. We received 53 applications to a total of $1.6 million for the available $400,000, so the demand and competition for the funds is intense. There were several worthy projects that we were unable to fund, and I urge those applicants to work with the staff to refine the applications to increase their chances of success in the 2002/2003 funding round. The previous year I indicated that research should be undertaken to identify why unrelated businesses are difficult to attract to the wheatbelt region. Lack of resources have prevented this but let me offer this personal observation. Firstly there is this mental perception that everything centres around and radiates from the city. This is understandable from city residents but we in the regions need to reassess our priorities. As net exporters of produce we should look to where our markets are and what is the most cost effective way to access and export to these markets, most of which are to the north of Australia. Generally these are raw products where processing occurs into

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usable consumer products outside our region. Processing in the region will generate jobs and reduce freight costs. When projects are identified, attracting investor’s dollars becomes difficult. With the current selective tax incentives we see some non-sustainable projects funded while other more community and financially beneficial projects do not proceed. I hope to lead the Commission in addressing this issue. Finally we do not market our region well. We are generally known as an area that has constant droughts, frosts or low commodity prices, not a welcoming environment for potential investors or people locating to the region. Wendy Newman and the marketing group are working on marketing and we as a community need to address the problems associated with droughts and frosts etc. The negative publicity generated from the Exceptional Circumstances claims in previous years far outweighs the returns gained from going to governments with an outstretched hand. We need to research on how to provide for exceptional circumstances, which are inevitable, in a way that does not attract the same negative publicity. We welcomed Jennifer Evans onto the project staff in the Central South, back from travels in South America. Zanda Cameron also joined us in the Avon sub-region, after the resignation of Jacinta Overman. Both Jennifer and Zanda are demonstrating a prodigious appetite for work of the quality demanded by the organisation and its clients. Karin Day has returned from Parental Leave and is undertaking project work in the Central East office, and Melissa Withnell has joined us as a trainee following the departure of Alison Aurisch. Ms Amy Day undertook an overdue and very important piece of contract work on developing a marketing strategy for the region. Ms Dale Sanders has joined us to facilitate the development of the Central South Action Plan, and Ms Vicky Lang is undertaking a range of projects in the Central Midlands including some analysis of the regional energy system. The Senior Regional Officer position in the Central East is still vacant, but we are hopeful of an imminent appointment. During the year board meetings were held in Williams, Jurien Bay, Northam and Corrigin. This enabled board and staff members to interact with those communities, broadening our understanding of their requirements. This interaction is important to the Wheatbelt Development Commission. We are able to gauge others perception of our performance and how they see development in their centres. The Corrigin Board Meeting saw a presentation from the Wheatbelt Area Consultative Committee, a Federally funded parallel organisation, with the view to working more closely with our state funded commission. The board viewed this as an opportunity to increase government funding into our region and look forward to developing this relationship. Thanks to David Singe for managing our staff whose application to their tasks bears testimony to a healthy corporate ethos, which can only bode well for the formidable

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challenges ahead of the region. There is no doubt the strength of our organisation is heavily reliant on the ability of our small but dedicated staff to liaise with not only members of our community but also with the bureaucracy and ministers to bring about successful resolutions.

Cr Michael Bates

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5 – REPORT ON OPERATIONS

INTRODUCTION The Wheatbelt Development Commission took its current form through enabling legislation passed on 8th April 1994. (The Regional Development Commissions Act 1993).

The board continues to implement the Wheatbelt Regional Strategy, “Shaping the Future”.

THE OBJECTS AND FUNCTIONS OF THE WHEATBELT DEVELOPMENT COMMSSION (Regional Development Commission Act 1993)

The objects of the commission are to:

(a) maximise job creation and improve career opportunities in the region;

(b) develop and broaden the economic base of the region;

(c) identify infrastructure services to promote business development within the region;

(d) provide information and advice to promote business development within the region;

(e) seek to ensure that the general standard of government services and access to those services in the region is comparable to that which applies in the metropolitan area; and

(f) generally take steps to encourage, promote, facilitate and monitor the economic development of the region.

For the purpose of achieving these objectives, the commission is to:

(a) promote the region;

(b) facilitate co-ordination between relevant statutory bodies and state government agencies;

(c) co-operate with representatives of industry and commerce, employer and employee organisations, education and training institutions and other sections of the community within the region;

(d) identify opportunities for investment in the region and encourage that investment;

(e) identify infrastructure needs of the region and encourage the provision of that infrastructure in the region; and

(f) co-operate with departments of the Public Service of the State and the Commonwealth, and other agencies, instrumentalities and statutory bodies of the State and Commonwealth; and local government authorities,

in order to promote equitable delivery of services within the region

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6 – OUTPUTS The Wheatbelt Development Commission operates on an output based management system and has reported this fiscal year under this system.

OUTCOME “The benefits from sustained development, consistent with the expectations of the regional community, flow to the people of the Wheatbelt”.

KEY OUTPUTS 1. Information and Promotion Services

2. Facilitation Services

Relevant to these Key Outputs the commission has 3 goals:

1. Self-Sustaining Regional Economic Development

2. Services Necessary for Regional Development

3. Effective Communication

The commission’s low level performance indicators are based around this output management structure.

MINISTERIAL RESPONSIBILTY The Minister to whom the Wheatbelt Development Commission is responsible is the Minister for the Mid West, Wheatbelt and Great Southern, Hon Kim Chance MLC.

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7 – THE WHEATBELT REGION Western Australia's Wheatbelt region encompasses an area of 154,862 square kilometres, adjoining metropolitan Perth and extending to the north, east and south east. The main service centres are Northam, Narrogin, Merredin and Moora, although these towns contain only some 16,000 of the region's population of about 72,000. Educational, health, recreational and cultural services are extensive, and the region is home to the C Y O'Connor College of TAFE and Curtin University's Muresk Institute of Agriculture. The Wheatbelt is Western Australia's largest contributor of agricultural products. Grains, pulses, wool, livestock and other products are valuable export commodities. Gold, nickel and iron ore mining are mined in the eastern parts of the region and a range of other minerals is mined elsewhere, including mineral sands in the west. The region has well-developed transport links, with most major highways and rail routes to Perth passing through. There is access to the Port of Fremantle and regional ports at Geraldton, Bunbury, Albany and Esperance. A range of private air charter services is available. Daily passenger rail services operate on the main east - west line and a variety of passenger road coach services exist. The central coast area north of Perth is home to rock lobster and wet-line fishing activities, with expanding aquaculture activities. This area also accounts for the bulk of the region’s tourism development and investment. The State Government owns the Avon Industrial Park, situated 18km east of Northam. The park is designed to accommodate a variety of food, fibre, mineral and chemical processing activities. The first processor commenced operations this year, and negotiations are continuing with others. A range of intensive agricultural and horticultural production industries is developing in the western end of the region. The future of the Wheatbelt rests with continuing economic diversity, production of high quality, competitively priced goods and services, and continuing innovation.

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8 – ORGANISATIONAL STRUCTURE OF THE WHEATBELT DEVELOPMENT COMMISSION

Sen

Zan

Board

Director (CEO) Northam

David Singe

Assistant Director Northam

Damien Martin

Executive Assistant Northam

Lorraine Slater

Minister for the Mid West, Wheatbelt & Great Southern

Hon Kim Chance MLC

Records & Information Services OfficerNortham

Andrea McCandlish

ior Regional Officer Avon

da Cameron Northam

Senior Regional Officer

Central East Position Vacant

Merredin

Regional Support Officer

Heidi Cockram

Project Manager Experience IT

Jeff Major

Finance & Corporate Services OfficerNortham

Dawn Timmerman

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Administrative TraineeMelissa Withnell

Regional Manager

Central MidlandsMark South

Moora

Senior Regional Officer

Central South Jenny Evans

Narrogin


Rebecca McCall


Kerry Bryant

Senior Project Officer

Karin Day


9 – BOARD OF THE COMMISSION

Chairman - Cr Michael Bates … Councillor Bates has been involved in local government for 8 years, as a councillor and president of Shire of Moora. He was honoured with the Western Australian Rural Leadership Award in 1999 for his leadership throughout the 1999 floods and the ongoing flood recovery. Under his leadership, the Moora district was recognised as Australian Community of the Year for 2001. Michael brings to the Commission his interests in diversifying and revitalising regional communities.

Deputy Chairperson - Ms Wendy Newman … Currently the CEO of Dowerin Events Management, Ms Newman has responsibility for marketing the successful Dowerin Field Days. Her background in marketing is being applied to marketing issues in the Wheatbelt Region.

Cr Ian Landsmeer …Councillor Landsmeer is the President of Mt Marshall Shire in the north-eastern Wheatbelt. His family moved here from South Australia in 1978. Ian has spent most of his working life in the motor industry, having owned motor repair businesses in both SA and WA. His interests are community development, model and real trains and motor racing. Ian’s portfolio interests include transport and social infrastructure.

Cr Martin Morris …Cr Morris is Clerk of Courts at Merredin and is the President of the Shire of Merredin. He has an interest in youth issues and the development of communications infrastructure and services.

Mr Darren West … farms 1600 ha at Jennacubbine. Darren spent 12 months in the US as an agricultural exchange student before returning to the family farm. He is married with a young family and is involved with several community groups and his interests include sport and public affairs. Darren is Chair of the Primary Industry, Emerging Industries and Business Development Working Party within the Wheatbelt Development Commission.

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Ms Catherine Maughan … Catherine is a lecturer in Communications and Agribusiness at Curtin University, Muresk, and has many publications and awards to her credit.

Mr Colin Adams … Colin is a retired farmer from Miling. He now lives in Jurien Bay and is the current Acting Chairman for Central Midlands Development Foundation. Colin has in the past has held positions at the Shire of Moora as Councillor, Deputy President and President.

Cr Phil Nolan …is a mining engineer for Portman Ltd at Koolyanobbing. Phil has lived in the Yilgarn for since 1998 and has spent his entire career in the mining industry, over 20 years. Phil was elected to Yilgarn Shire Council in May 2001 representing Town Ward. He is interested in public affairs, reading and flying as recreational pursuits.

Cr Steven Woods … Steven is a farmer from Victoria Plains, who graduated from Curtin University, Muresk with a Diploma in Agriculture. He is a Councillor with the Shire of Victoria and his interests include St John Ambulance and he is Vice President of the Victoria Plains Sub-branch and an instructor in first aid. He is also Chairman of Victoria Plains Landcare Committee.

Mr David Singe (ex officio)… Director of the commission, with a professional background in urban and regional planning, he has worked in the Western Australian Regional Development portfolio in the Wheatbelt since 1987. David is currently a member of the WA Aged Care Advisory Council and the Partnership Steering Group.

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10 – ACTIVITY HIGHLIGHTS

EMERGING PRIMARY INDUSTRIES

Alternative Agriculture –

Olives - In early 2002, the Commission undertook a desktop investigation into the olive industry in the Wheatbelt region to highlight the existing and potential scale of the olive industry, and provide some perspective of the economic benefit to the region. The report concluded “the Central Midlands area of the Wheatbelt region is in the prime position to foster and encourage the olive industry in Western Australia. The area’s comparative advantage has been the reason for large-scale production of olives and demonstrates the need for towns and/or areas to identify and capitalise on their own unique advantages.

The Commission is working with industry stakeholders to develop a processing facility.

Avon Landuse Solutions- The Avon Landuse Solutions project aims to facilitate development of profitable, productive and sustainable alternative industries for the Avon region, through providing the support to local growers. It is facilitated by a steering group made up of representatives from the Avon Community Development Foundation, Local Government, the Wheatbelt Development Commission and the Department of Agriculture. The group has developed a Strategic Plan, an Operational plan and a Technical Manual.

These plans have set the direction of the project for the first five years with clear recommendations and costing of all aspects of the longer term Avon Landuse Solutions project design. On April 4th, 2002, the Minister for Agriculture, Forestry and Fisheries, and the Wheatbelt, Hon. Kim Chance MLC, officially launched the project and announced the members of the interim Board.

Aquaculture –

Inland Saline Aquaculture - The Commission believes that there is substantial opportunity for a sustainable aquaculture industry to contribute to the regional economy. Further research and development is required to see inland finfish farming expand and become commercially viable.

To this end, the Wheatbelt Development Commission, together with the Great Southern Development Commission and the Mid West Development Commission commissioned a report for Inland Saltwater trout farming in Western Australia. The broad aim of the project is to provide all relevant stakeholders with a comprehensive

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body of information on market and cost structures. The report was opened for public comment until the end of July. At the conclusion of this period, the Commissions intend to draft a report to Minister on the study outcomes, feedback and recommendations for future work.

Tree Oils

Upper Great Southern Oil Mallee Association - The Commission has provided facilitation services to this network of oil mallee growers and their Regional Manager. The association aims to develop a sound economically based landcare tree crop that is suitable for integration into farming systems in order to raise productivity and to counter the spread of salinity. The Commission assisted source funding for implementation of the marketing strategy.

Salt Lake Biota

Research - The Commission is partnering with the University of Western Australia to investigate the potential commercial value of naturally occurring salt lake biota. Two PhD students are undertaking research with the aim of identifying suitable species and modelling successful production systems. The research will have application in the aquaculture industry, as it is anticipated that some salt lake species will be suitable for aquaculture feeds. The results will indicate the feasibility of culturing these organisms for a world market and may lead to the development of a new regional industry.

The Commission has also contributed $10,000 to the development of a Reference Centre at UWA. This centre will be an umbrella organisation for research in to salt lakes, and will also play a role in maintaining a gene bank of salt lake species, and controlling the quality of any industries related to cultivation of salt lake resources (such as Parartemia spp).

Primary Industry Processing

Narrogin Bio-energy Plant - Oil Mallee biomass will be used to generate electricity while producing eucalyptus oil and converting wood to activated charcoal in a demonstration plant at Narrogin. The plant is being designed to process 20,000 tonnes per year of fresh, whole tree feed and will produce approximately 700 tonnes per year of activated carbon, 200 tonnes per year of eucalyptus oil and 1MW of renewable electricity.

Enecon Pty Ltd, which holds the rights to commercialise the CSIRO technology, is working with Western Power Corporation on the design, construction and operation of the plant. The Oil Mallee Company of Australia Pty Ltd will supply mallee biomass and new eucalyptus oil distillation technology. Full-scale, fully economic plants will be five times the size of the demonstration plant, requiring the planting of 20 million trees each. There is potential for at least ten IWP plants throughout the Wheatbelt region.

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BUSINESS DEVELOPMENT

Tourism

Golden Pipeline Project - The Golden Pipeline is a multi-million dollar heritage and tourism project centred around the Mundaring-Kalgoorlie water pipeline. The Commission continues to provide regional assistance for the development of the project. Numerous regional meetings have been facilitated as the project nears its official launch and Centenary in January 2003.

(J Grill, T Perrigo, N Eiffler at Karalee)

Roe Tourism Association - The Roe Tourism Association services the industry in the Shires of Bruce Rock, Corrigin, Kondinin, Kulin and Narembeen. The Commission has provided information and facilitation services throughout the year in the development of a regional brochure, signage project, and tourism development workshop.

Avon Aviation Alliance - The Wheatbelt Development Commission has been working with Aero-Sport Associations and operators in the Avon Region towards the successful establishment of Avon Aviation Alliance. The focus of Avon Aviation Alliance is to build a strong multi-discipline aero-sport based association to promote the Avon region as the aero-sport capital of WA. Working with tourism and other stakeholders in the region, Avon Aviation will identify, package and market aviation based tourism products. To this end, the group this year arranged for seven colourful signs to be installed along the Great Eastern Highway to highlight the region as a great destination for Aviation. The group has also printed a joint promotional brochure and is currently seeking incorporation.

Dryandra Woodlands Focus Group - The Commission assisted the Focus Group source funding assistance from all levels of government to employ a Tourism Development Officer for Greater Dryandra. The seven local governments of greater Dryandra committed cash and in-kind support. Achievements during the pilot implementation included design of logo, local tourism awards and the hosting of a Tourism and Sustainable Regional Communities seminar. The Commission assisted the Focus Group source funds for a state of the tourism industry report in Greater Dryandra for next financial year.

Aboriginal Enterprise - Extensive negotiations have been held with representatives of the Office of Aboriginal Economic Development, the Wheatbelt Aboriginal Corporation and Kaata Koorliny Enterprise and Employment Development Aboriginal Corporation to define joint objectives and strategies to improve Aboriginal enterprise.

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As a result the Commission will employ a professional officer who will blend the commission’s programs of facilitation and information provision with the requirements for Aboriginal economic development. This is significantly different to the notion of servicing specific business and enterprise, which will be achieved by other means.

MARKETING Marketing Strategy - A project officer was engaged to develop a comprehensive plan for marketing the region. A series of strategies and actions have been developed to market different aspects of the region to discrete market segments. Negotiations have commenced with some potential stakeholders to implement aspects of the strategy. Further aspects o the strategy will be implemented over the coming year.

Regional Branding - The Commission assisted in the established of a Regional Branding Group for the Wheatbelt region. The group has developed the “Heartlands Country” regional brand. Achieving an appropriate and relevant regional brand to reflect the diversity of the region was a challenge. The “Heartlands Country” brand has been tested with numerous focus groups from the region’s main customer market, Perth. The group has recently received funding to engage an Executive Officer to further promote the brand. The Commission has supplied additional funding for the development of a marketing strategy. This strategy will be completed in 2002/03.

INDUSTRY INPUTS Water

Beverley-Brookton Groundwater Study - There are significant quantities of groundwater present in areas of the Beverley and Brookton Shires. The availability of water presents opportunities as well as challenges for the shires. The area is already under pressure from rural residential subdivision. Information on the sustainable yield of the resources will also enable promotion of opportunities, such as horticulture and alternative agriculture.

Without adequate information on the quality, quantity and location of the groundwater, it has been impossible to make any planning decisions. The Commission has been working with the Shires to resolve some of the issues. A consultant hydrogeologist was commissioned to undertake a desktop study to determine the location and basic data on yields. The report is near completion and will be released for public comment shortly.

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Energy

Narrogin to Brookton South West Interconnected System - The Commission has assisted the Shires of Brookton and Pingelly collate information on the state of energy infrastructure and gaps in service provision.

Labour Force

Regional Sponsored Migration Scheme - The Commission is an accredited Regional Certifying body for the purposes of the Commonwealth government’s Regional Sponsorship Migration Scheme (RSMS). RSMS allows regional employees who are unable to fill skilled vacancies locally to source employees from overseas. The Scheme is particularly useful in the Wheatbelt Region where many employers are constrained by critical staff shortages in the agriculture, agricultural service, and health industries.

As a Regional Certifying Body, the Commission is required to certify that the application meets the requirements of the RSMS, that:

• The employer has a genuine, full time vacancy and will offer a contract of employment for at least two years.

• The vacancy has a skill level equivalent to Australian Diploma Level

• The employer has attempted to fill the position from the local labour market.

Seven applications were received in 2001/02 and all were approved. Industrial Land Avon Industrial Park - The park was completed and opened in 2001/2002 and the first company to locate there completed and opened its premises in November 2001.

Binary Chemicals is a Queensland-based operation producing herbicides and pesticides for broad-acre farming. The scale of the market in Western Australia warranted a production plant here and the Avon Industrial Park was the ideal location. Binary is a welcome member of the Avon community and is a significant employer, with plans for expansion.

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Information Technology & Telecommunications Infrastructure

Wireless West Project - This joint project between Telstra and the Commonwealth and State Governments, each contributing $7 million, will result in 45 CDMA mobile telephony base stations being rolled out across the South West of WA. Local government authorities have been asked to contribute $10,000 towards each base where there is existing infrastructure and $20,000 at “greenfields” sites (sites needing power and a tower etc). The Commission has been facilitating the process with Local Governments to achieve continuous coverage along major routes and for some of the eastern Wheatbelt communities.

TRANSPORT

Northam By-Pass - The Northam By-Pass project was opened in May 2002. The $30 million project has been in the lobbying and planning stages for almost three decades. The Commission was instrumental in the lobbying and in organising and facilitating meetings in preceding years to garner support for this important piece of infrastructure. It was constructed ahead of time and budget by a private sector consortium, and has effectively removed about 800 heavy vehicle movements daily from the Northam central business districts.

A planned major redevelopment of the commercial centre of Northam is in the planning stage.

Indian Ocean Drive - The Wheatbelt Development Commission in conjunction with the Mid West Development Commission completed a document highlighting the case for the reinstatement of the original time schedule to complete the construction to a sealed standard of Indian Ocean Drive. The document was developed in response to private developers concern over the delay in the construction of the Lancelin and Cervantes section of Indian Ocean Drive.

The report highlights the economic importance of the road to not only the Central Coast Region but also to the broader economy. Major regional marketing and promotional strategies based on Indian Ocean Drive are also being severely affected.

The report recommended that the Government revise its decision to postpone construction the road and investigate options to bring construction forward.

Dalwallinu Bypass - In May 2002, the heavy haulage bypass of the main street in Dalwallinu was officially opened. The Commission in conjunction with the Shire of Dalwallinu lobbied heavily for this bypass to be constructed. To increase the benefit

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cost ratio, a strategy was developed that would facilitate triple road train access further south before being required to break down into smaller configurations.

Transport Advisory Group - The Commission together with the Department for Planning and Infrastructure continues to facilitate the Wheatbelt Transport Advisory Group. The Group has completed a Wheatbelt Transport Strategy for the region, which is programmed to be launched in the near future by the Minister for Infrastructure and Planning. The group has also identified the Corrigin-Hyden Road upgrade as a priority project, along with some grain network roads, Indian Ocean Drive and the Agricultural Lime sand routes.

SUSTAINABILITY Cleaner Production WA Sustainable Industry Group – Cleaner Production Statement - The Commission has become a signatory to the Cleaner Production Statement, which means that we undertake to promote the principles of ‘Cleaner Production’ and have developed an Action Plan to this end. Cleaner Production is identified in Shaping the Future – the economic development strategy for the Wheatbelt region. This approach to sustainable development embodies pollution prevention, reducing the use of energy, water and material resources and minimising waste. It involves an environmental audit process, to review management practices and philosophies to reduce emissions at the source, whilst improving productivity and economic efficiency.

Natural Resource Management Avon Catchment Council - The Avon Catchment Council (formerly the Avon Working Group) is the peak landcare group in the Avon River Basin, and is a part of the Swan-Avon Integrated Catchment Management Program. The Commission is represented on the Avon Catchment Council, which provides strategic direction in natural resource management by increasing community knowledge, encouraging action, coordinating community priorities, monitoring progress and attracting funds for the implementation of natural resource management projects within the Avon catchment. The commission has been involved in assisting the Avon Catchment Council to develop a strategic plan for natural resource management in the Avon Basin. The plan is being developed in the context of discussions between regional groups, the State and Commonwealth on the development of partnership agreements and funding negotiations.

The Avon Catchment Network (ACN) is a project of the Avon Catchment Council. Funding for the ACN has been obtained from the Natural Heritage Trust. The ACN provides natural resource information to the Avon catchment community. The Commission is working with the ACN to assist it in becoming a self-sustaining, efficient provider of information on natural resource management, which will assist land management decision-making in the Avon River Basin.

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Leadership

WA Community Leadership 5 Year Plan - The Commission facilitated twelve community consultation sessions across the Wheatbelt in partnership with a number of Telecentres. The workshops were the main avenue for information gathering and consultation in stage one development of a State Leadership Plan.

SOCIAL INFRASTRUCTURE

Health

Health service changes - With the considerable changes to the administration of regional health, the commission has provided advice and successfully argued the case for the Health regional boundary to correlate with that of the development commission. This has ended an historical anomaly where one of the largest state agencies operated on non-standard boundaries.

For the Wheatbelt, it further strengthens the region’s identity and allows for better strategic planning, use of regional data and logical aggregations of clients for service delivery.

Education and Training Avon International Multiversity - The Avon International Multiversity aimed to provide articulated education services from post-compulsory to post-doctorate levels from a campus to be located near Northam. It represented an exciting and significant development for the Wheatbelt region however this project has been disbanded due to the financial instability of the international markets.

Information Technology and Telecommunications Services Experience IT - The Wheatbelt Development Commission has continued to lay strong foundations for its Experience IT! project.

A “Mobile” facility will spearhead Experience IT!. Development of the Mobile has commenced and it is expected this will be completed by December 2002. The Mobile will have 12 work stations, satellite communications, on-board generator and will allow Wheatbelt residents to sample a wide range of IT & T applications.

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The Mobile will be used as a high volume demonstration venue at events throughout the Wheatbelt region and as an interactive demonstration platform for small groups as it travels from community to community. In addition the Experience IT Mobile can also be used as a training venue by other organisations.

The Commission has developed a new Request For Sponsorship (tendering) process in order to fully satisfy the requirements for “Open and Effective Competition” with Experience IT! sponsorship. The request was advertised on 1 June 2002 with the timing of the sponsorship process closely linked to the development of the Mobile. Information about the project and the sponsorship process has been made available on an interim website at www.experience-it.com.au

Avon Online - Avon Online was a project funded through the Office of Information and Communications as part of the Online WA community pilot project. Avon Online was the only community website representing a geographic region to be funded as part of this exercise. Unfortunately, due to financial difficulties, the Avon Online community portal has been dissolved.

Avon Online did not achieve its objectives relating to building the community’s capacity to utilise telecommunications technology. This proved to be impossible within the resources available. The website itself has had value in providing information on the Avon, however other initiatives are needed to target capacity building.

Health Aged Care Health Service Delivery - The Commission has provided information and facilitation services to assist planning and funding applications towards Aged Care facilities for a number of small towns in the Wheatbelt.

QUALITY OF LIFE Youth Wheatbelt Crew - The Commission facilitates and provides information to a nominated Wheatbelt Youth Network. The Crew has permanent representation on the commission board. This year the Crew sourced grant funds for a 12-month project attracting and retaining skilled and professional people to the region. The Crew has collated previous research into this issue and tailored an action plan for addressing the issue with available resources. The grant funds will enable Crew members to participate in marketing training and develop targeted presentations to deliver to university students and other sectors. Advocacy roles during the past twelve months include the WA Leadership workshop consultation sessions, Central South Outloud youth forum, and the Imagine Your Australia Conference.

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http://www.experience-it.com.au/


PLANNING Strategic Planning Central South Action Plan - In partnership with the 15 local government authorities in the central south sub region, the Commission has commenced researching and facilitating the development of a comprehensive sustainable economic development framework for action in the central south. The Central South Action Plan will build on, integrate and extend at a sub regional level the existing plans projects and aspirations of all levels of government, business, industry and communities. The action plan will ensure sustainable economic, social and environmental objectives, which are relevant to each local community in the central south are progressed.

Indian Ocean Drive Impact Study - The Commission engaged a consultant to investigate and document the economic, social and environmental impacts of Indian Ocean Drive on the existing and proposed settlements along the coast from Lancelin to Dongara. It will also investigate the impacts on settlements along Brand Highway that may result from the westward shift of traffic. The consultancy will be finalised by August 2002. The resulting model and report will assist local and State governments in planning for future developments as well as providing small business with opportunities for future expansion and development.

Chittering Economic Development Strategy - The Commission and the Shire of Chittering undertook an Economic Development Strategy for the Chittering valley. The Strategy endeavoured to:

• Provide economic direction and guidance for the future

• Identify the opportunities to attract business/industry

• Identify and develop opportunities for local employment

• Develop strategies for the retention of youth in the region

• Identify and quantify the region’s infrastructure needs

• Develop strategies to improve rural production returns

The draft Strategy was adopted by the Shire of Chittering and implementation is under way.

Avon Strategic Planning - The Wheatbelt Development Commission, in cooperation with the Shires of Northam, Toodyay, York and the Town of Northam, commissioned a study to more accurately estimate population growth for the region. The main outcome of the study was information on which to base planning decisions for providing service and infrastructure to the region in the future.

Consultants were appointed to undertake an economic and social impact study on the Avon. The study considered population projections linked to natural growth and major developments such as the Avon International Multiversity and the Avon Industrial Park. The completion of the study represents the first step in proactively

22


working to accommodate population growth in the Avon region, and maximising the opportunities that it will create. The Wheatbelt Development Commission and the Shires of Northam, Toodyay, York and the Town of Northam will use the information gained from the study to ensure that the region is poised to benefit from anticipated population growth.

INFORMATION

Regional Information

Advice and Information - The Commission provides advice and information to community groups and local government authorities that are developing regional economic development projects or applying for funding. Often the nature of this advice is how to plan for a project, as well as ensuring that linkages with similar projects are formed. The commission also provides information on the Wheatbelt to clients inside and outside the region.

For some years the Commission has used the concept and analytical processes of comparative advantage as a principle technique for providing information and advice. This approach is often an integral part of working with our clients. The analytical method has been used successfully in the development of the Avon Industrial Park, both as a total site and for the individual companies that have established or are looking to locate there. Support information from the commission, for project funding, often contains comparative advantage information, to demonstrate the singular features and value of the proposal.

MOVE Industry Relocation Initiative - The Commission in strategic partnership with the Shires of Wagin, West Arthur and Pingelly has facilitated an application to source funds for three part-time officers to implement the MOVE marketing strategy.

ADVOCACY Wheatbelt Region Development Scheme - This year the commission administered the inaugural funding round of the Wheatbelt Region Development Scheme. The scheme is part of the government’s $75 million, 4 year Regional Investment Fund, and provides for $400,000 per annum grant funding to regional development projects.

Funding priorities for 2001/02 to the Wheatbelt Region were:

• Activities to attract and retain investment

• Marketing

• Youth oriented projects

• Projects designed to promote partnerships

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• Tourism development

53 funding applications were received totalling $1.6 million. 24 applications were approved to a total of $400,000. Grants ranged from a $2,000 grant to an industry group for a weekend information seminar to $40,000 to another industry group for marketing activities.

Defence Training Area Extension - The Commission in consultation with other State agencies and local authorities assisted in developing a statement of clarification concerning the proposed extension to the Defence Training Area north of Lancelin. This statement was a response to inaccurate information being circulated in local communities, creating community concern.

Regional Collocation Scheme and Rural Transaction Centres - The Commission has provided information and facilitation services to a number of small towns, to assist planning and sourcing funds for delivery of new government and private services.

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11 – OUTLOOK FOR 2002 – 2003 For the second consecutive year, 2002/2003 is commencing in trying seasonal circumstances, which may impact significantly or agricultural production.

Large areas, particularly in the eastern Wheatbelt, are experiencing almost record low rainfall. A compounding factor is a lack of sub-soil moisture, resulting in an extremely poor outlook for cropping and pasture operations in many areas.

Combined with drought conditions and large scale destructive frosts in recent seasons, another poor production year may force further re-evaluation of the financial viability of many family farming operations, with a consequent effect on ownership structures. The flow-on effects in community and financial circumstances are already being felt.

Despite the poor outlook for the immediate term in some areas, most of the western portion of the region is experiencing ideal seasonal conditions, and could experience record harvests if follow-up rains arrive. Coupled with near-record prices for many grain and livestock products and a much improved wool market, there is an air of buoyancy and optimism.

The region’s world class production sectors in agriculture, mining and fishing will continue to provide a solid and growing economic base for the region. The economy is becoming increasingly diversified into downstream processing, value adding, diversification and application of new technologies across a range of sectors. Increasing investment in the tourism and service sectors is providing a range of opportunities new to the region.

Telecommunications remains a strong area of focus, in recognition of the critical importance of new technology for future growth and competitiveness. The provision of the necessary infrastructure and services and the application of new technologies are critical. The Commission is poised to roll out its “Experience IT!” project to showcase new technology and applications to regional communities, in partnership with private sector providers.

A demonstration plant to convert eucalyptus biomass into eucalyptus oil, activated carbon and energy will, if successful, be of strategic importance to the region. An immediate economic benefit from planting nature species will provide an incentive for landholders to improve environmental management and at the same time contribute “green” energy into the electricity grid. The possibility may exist for small plants using locally grown biomass to produce energy for local consumption in areas constrained by lack of available energy capacity.

There is increasing research in to use of saline groundwater for aquaculture and other pursuits. Opportunities to reticulate non-potable water into the Chittering Valley will provide for expansion and development of the horticultural sector.

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The first processing plant has commenced operations at the Avon Industrial Park. Binary Chemicals was officially opened in November and is producing agriculture and commercial chemical products. Bushman Tanks is negotiating the purchase of a lot, and negotiations continue with other proponents.

A major stockfeed manufacturing plant is planning to commence operations in Moora, and an export grain processing facility is planning operations in Darkan.

A number of sub-regional economic and development strategies are being produced.

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12 – INFORMATION AND COMPLIANCE STATEMENTS

Equal Employment Opportunity Outcomes The Wheateblt Development Commission is committed to the principles of Equal Employment Opportunity. Our “Equal Opportunity and Diversity Policy” was developed in 1999 and provides a series of principles by which employee selection, promotion and management is free from discrimination on the grounds of gender, age, cultural or racial background, or disability.

The policy helps create an environment where the best employee is appointed to each position and the individual skills, talents and cultural perspectives of each employee are valued.

With a total staff size of sixteen and only three new appointments in the 2001/02 year, changes in staff demographics have been minimal. The Commission has maintained excellent representation for women (75%) and youth (25%).

Disability Services Plan Report

The activities of the Wheatbelt Development Commission are focused on the delivery of facilitation and information services to clients both from within and outside the region. The common means of delivering these services is via the internet, email, fax and telephone, or by personal interaction. Personal interaction is usually in the client’s own community or home environment, thus minimising the inconvenience to clients with disabilities. Staff are encouraged to be aware of the needs of people with disabilities in planning their work, and ensure that these people have the same access to our services as do other members of the community. Except on rare occasions, visits by members of the public to the Wheatbelt Development Commission’s offices are for formally organised meetings, where the needs of individual attendees can be catered for. Any community forums are generally held in public buildings in which facilities are usually managed in consideration of the needs of the disabled.

The commission’s Disability Services Plan is reviewed in September of each year. The five outcomes addressed by the plan are continually improved to ensure improved information flow to all members of the Wheatbelt community.

Freedom of Information

One of the Wheatbelt Development Commission’s key outputs is information provision services. The Commission holds a number of publications and reports relating to economic, community and regional development which the public can access on request, either by contacting any office of the Commission or by ordering through the Commission’s website (www.wheatbelt.wa.gov.au). The commission’s Annual Report is available for download (as a PDF file) from the Publications page of the web site. There is no charge for publications that are posted on request.

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The designated Freedom of Information coordinator for the commission is the Records and Information Services Officer, based at the Northam office, and initial enquiries should be directed to this officer. Any written requests for information should be directed to the Wheatbelt Development Commission, P.O. Box 250, Northam WA 6401.

Applications made under the Freedom of Information Act – NIL

ACTION: A State Government Plan for Young People, 2000-2003 The Wheatbelt Development Commission has pursued a specific policy of engagement of youth in the regional development process. The commission has facilitated the formation of the “Wheatbelt Crew”, which is a dynamic, innovative and enthusiastic group of regional residents between the ages of eighteen and thirty-five.

The Wheatbelt Crew has engaged a regional web consultant to build the web site www.wheatbeltcrew.net. A discussion forum and feedback forum is provided, consistent with the Wheatbelt Crew's commitment to stimulate and provide a mechanism for input and comment by regional youth.

The Wheatbelt Crew exists to facilitate information exchange to engage regional youth in the complexities, challenges, opportunities and directions of Wheatbelt regional development. The Crew has a standing invitation to participate on equal terms in debate at the commission’s board. This facilitates youth involvement in regional development and policy-making.

The Wheatbelt Crew has researched other existing youth groups and organisations offering youth initiatives in the Wheatbelt and will continue to develop links with these parties.

These activities are consistent the following priority areas in “ACTION: A STATE GOVERNMENT PLAN FOR YOUNG PEOPLE, 2000 – 2003”:

° Citizenship and Participation

° Health and Well-being

° Education

° Employment and Training

° Justice and Legal Issues

° Culture, Recreation and Lifestyle

° Living in the Community

Language Services Outcomes Report The operational activities of the Wheatbelt Development Commission are focussed around delivery of facilitation and information services to clients from both within and outside the region.

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http://www.wheatbeltcrew.net/


All staff are encouraged to be aware of the needs of people who need assistance with the English language in planning their work, to ensure that these people have the same access to our services as do other members of the community.

The Wheatbelt Development Commission is committed to the Government of Western Australia’s Language Services Plan. We are aware of the cultural and linguistic diversity of the Western Australian community and our client base. We will appropriately provide interpretive, translation, sign language, or other mechanisms to ensure that clients with particular linguistic needs are treated equitably in the delivery of our services.

Evaluations No formal program evaluations were undertaken during the financial year 2000 / 2001.

Electoral Act 1907 section 175ZE

In compliance with section 175ZE of the Electoral Act 1907, the Wheatbelt Development Commission is required to report on expenditure incurred during the financial year in relation to advertising agencies, market research organisations, polling organisations, direct mail organisations and media advertising organisations.

The following expenditures were incurred (inclusive of GST):

Expenditure with Advertising Agencies

Marketforce Productions $11,029

Photoplay Group Inc. $ 8,600

Class total $19,629

Expenditure with Market Research Agencies

Colmar Brunton $ 2,343

Expenditure with Polling Agencies

Nil

Expenditure with Direct Mail Agencies

Nil

Expenditure with Media Advertising Agencies

InterSector (Department of Premier & Cabinet) $ 1,200

Other minor publications $ 245

Class Total $ 1,445

_______________________________________________________________

TOTAL EXPENDITURE $23,417

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APPENDIX 1 – REGIONAL BOUNDARIES OF THE WHEATBELT DEVELOPMENT COMMISSION

Wheatbelt Region

Regional Boundaries

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APPENDIX 2 – STATEMENT OF PERFORMANCE INDICATORS

CERTIFICATION OF PERFORMANCE INDICATORS FOR THE YEAR ENDED 30TH JUNE 2002 We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Wheatbelt Development Commission’s performance, and fairly represent the performance of the Wheateblt Development Commission’s for the financial year ended 30th June 2002.

Cr Michael Bates David Singe

Chairman of the Board Director & Member of the Board

Date:27th August 2002 Date: 27th August 2002

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PERFORMANCE INDICATORS Treasury Instruction 904 requires Accountable Authorities to identify and report key performance indicators of efficiency and effectiveness. This enables users to assess the performance of the agency in meeting its objectives.

The nature of the commission’s work is such that results are often general in nature, and achieved in the longer, rather than the shorter term. It is therefore more difficult to provide easily measurable performance indicators in any one year.

An output-based management and reporting system has been implemented and reported upon.

OUTCOME The benefits from sustainable development, consistent with the expectations of the regional community, flow to the people of the Wheatbelt.

KEY OUPUTS 1. Information and Promotion Services

2. Facilitation Services.

The commission uses this framework for its decision-making, planning, service delivery and reporting processes.

The objectives of the Wheatbelt Development Commission, as reported in the Regional Development Commissions Act 1993, are as follows:

a) maximise job creation and improve career opportunities in the region;

b) develop and broaden the economic base of the region;

c) identify infrastructure services to promote economic and social development within the region;

d) provide information and advice to promote business development within the region;

e) seek to ensure that the general standard of government services, and access to those services, in the region is comparable to that which applies in the metropolitan area; and

f) generally take steps to encourage, promote, facilitate and monitor economic development in the region.

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EFFECTIVENESS INDICATOR The most accurate and consistent method of measuring the Commission’s performance is by surveying clients.

The Wheatbelt Development Commission has been surveying clients directly for five years, using independent market research consultants asking questions directly related to the Commission’s outcome. May is used as an index month, with all clients having contact with the project staff making up the representative population (229 in 2002). 142 clients were surveyed, representing a response rate of 62% and giving a sampling error rate of +/- 5% at a 95% confidence interval.

It is assumed that May is no different to any other month in terms of client contact and Commission operations.

Three questions were asked which relate directly to the outcome. Each question had the same measurement scale –

Do you:

Strongly agree 1 Disagree 4

Agree 2 Strongly disagree 5

Neither agree nor disagree 3 Don’t know 6

The following graphs indicate the response for each of the survey questions, with a comparison to the response from the previous two surveys.

Graph 1 – The activities of the Wheatbelt development Commission promote the development of the Wheatbelt region that is sustainable over time.

8%

19%

62%

7%

4%

0%

11%

18%

59%

5%

6%

1%

8%

15%

59%

9%

4%

4%

0% 10% 20% 30% 40% 50% 60% 70%

Don't Know

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

200220012000

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76% of respondents either agree or strongly agree with this statement, representing a minor decrease since last year. There was a marked increase in the neutral response, approximately corresponding to the decrease in the positive response. The only other significant change was an increase in the proportion of respondents who strongly disagreed. Whilst the numbers are small, it identifies that some stake- holder expectations are not being met.

Graph 2 – The activities of the Wheatbelt Development Commission lead to benefits for the people of the Wheatbelt region.

4%

27%

60%

5%

4%

0%

8%

26%

56%

7%

1%

2%

6%

18%

58%

9%

5%

4%

0% 10% 20% 30% 40% 50% 60% 70%

Don't Know

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

200220012000

76% of respondents either agree or strongly agree with this statement. This figure represents a decrease of 6% since last year. The major influence appears to be a reduction in the number of clients who strongly agree. Slight increases in neutral and negative responses were recorded.

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Graph 3 – The Wheatbelt Development Commission undertakes activities that are appropriate to the community’s needs.

7%

18%

65%

3%

7%

0%

16%

18%

52%

10%

3%

1%

10%

13%

57%

10%

7%

4%

0% 10% 20% 30% 40% 50% 60% 70%

Don't Know

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

200220012000

This question also revealed strong positive results, with 70% of respondents either agreeing or strongly agreeing. There was also a marked reduction in those who don’t know. Neutral responses were constant with last year’s and an increase in disagreement was also recorded.

In aggregate the proportion in agreement or disagreement declined from 76% to 74% since last year. Negative responses increased from 5% to 9%. This trend may reflect some difficulties that the Commission has faced in filling staff vacancies, and a number of controversial issues that have been topical. Further, there was a massive over subscription to the Wheatbelt Regional Development Scheme funding programme creating a potentially disgruntled pool of unsuccessful applicants.

On balance, the result could be viewed as favourable given these three factors.

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EFFICIENCY INDICATOR All of the Wheatbelt Development Commission’s core activities contribute to two outputs:

1. Information and Promotion Services

2. Facilitation Services

The Wheatbelt Development Commission uses cost per hour of service as its efficiency indicator, calculated separately for each output.

Output 1 Output 2 Total Hours of service 8700 6573 15273 Total cost of service $754,473 $609,326 $1,363,799 Less grant funds conveyed $10,000 $4,090 $14,090 Adjusted total cost of service $744,473 $605,236 $1,349,709 Service cost per hour $85.57 $92.08 $88.37 Comparative Efficiency Indicator figures for previous year

Output 1 Output 2 Total Hours of service 7803 7660 15463 Total cost of service $639,171 $826,784 $1,465,955 Less grant funds conveyed $60,046 $115,784 $14,090 Adjusted total cost of service $579,125 $711,000 $1,290,125 Service cost per hour $74.22 $92.82 $83.43 The overall cost per hour has increased by 5.92%, with a slight reduction in cost per hour for Facilitation services and an increase of $11.35 per hour for Information Services.

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Output Measures (Unaudited) The following measures are used to assess the degree to which the Commission has successfully produced the outputs for which resources have been allocated.

Output 1 – Information and Promotion Services

2001-02

Budget 2001-02

Actual Reasons for significant variation

Quantity Hours of regional development service Program of grants conveyed

8700 1

8700 1

Quality Degree to which clients judge (by survey) that the Commission has achieved its outcome

80%

73.7%

Timeliness Agreed timeframes are met to the satisfaction of clients

75%

85%

Cost Service cost per hour Grant funds conveyed

$75.51 $20,000

$85.57 $10,000

Experience IT! project in development stage, involving high cost and low service output.

Grants program suspended

Output 2 – Facilitation Services 2001-02

Budget 2001-02

Actual Reasons for significant variation

Quantity Hours of regional development service Program of grants conveyed

8070 1

6573 1

6% swing towards Output 1 in staff time allocation; Central South Action Plan and Wheatbelt Crew projects delayed to 2002/03; No consultant hours purchased. N/A

Quality Degree to which clients judge (by survey) that the Commissions has achieved its outcome

80%

73.7%

Timeliness Agreed timeframes are met to the satisfaction of clients

75%

85%

Cost Service cost per hour Grant funds conveyed

$98.51 $67,000

$92.08 $4,090

No consultant hours purchased; Grants program suspended

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APPENDIX THREE – FINANCIAL STATEMENTS

CERTIFICATION OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2002

The accompanying financial statements of the Wheatbelt Development Commission have been prepared in compliance with the provisions of the Financial Administration and Audit Act 1985 from proper accounts and records to present fairly the financial transactions for the financial year ended 30th June 2002 and the financial position as at 30th June 2002.

At the date of signing we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.

Dawn Timmerman David Singe Principal Accounting Officer Director & Member of the Board Date: 27th August 2002 Date: 27th August 2002

Cr Michael Bates Chairman of the Board Date: 27th August 2002

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STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 30 June 2002

Note 2002 2001COST OF SERVICES ($) ($)

Expenses from ordinary activities

Employee expenses 2 825,634 756,700Supplies and Services 3 86,499 91,691Depreciation expense 4 41,513 45,687Administration expenses 5 298,026 310,386Accommodation expense 6 75,759 80,722Grants and Subsidies 7 24,090 175,830Capital User Charge 8 12,276 -Net loss on disposal of non-current assets 9 - 4,939

Total Cost of Services 1,363,797 1,465,955

Revenues from ordinary activities

Grants received 10 65,703 83,000Other revenue 11 38,454 54,799Net profit on disposal of non-current assets 12 1,876 -

Total Revenue from Ordinary Activities 106,033 137,799

NET COST OF SERVICES 1,257,764 1,328,156

REVENUES FROM GOVERNMENT

Output Appropriation * 13 1,224,000 1,517,000Resources received free of charge 13 12,067 11,333

Total Revenues from Government 1,236,067 1,528,333

CHANGE IN NET ASSETS (21,697) 200,177

(21,697) 200,177

*Appropriation included capital in 2001The Statement of Financial Performance should be read in conjunction with the accompanying notes.

TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM TRANSACTIONS WITH WA STATE GOVERNMENT AS OWNERS

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STATEMENT OF FINANCIAL POSITIONas at 30 June 2002

Note 2002 2001($) ($)

Current AssetsCash assets 370,805 118,729Restricted cash assets 14 19,513 265,429Receivables 15 34,843 36,362Amounts receivable for outputs 16 41,000 -Other assets 17 21,285 20,858

Total Current Assets 487,446 441,378

Non-Current AssetsProperty, equipment and vehicles 18 78,303 81,377Prepayments 19 32,163 45,594Amounts receivable for outputs 16 27,000 -

Total non-current assets 137,466 126,971

Total Assets 624,912 568,349

Current LiabilitiesPayables 20 58,928 31,127Provisions 21 122,784 92,070Other liabilities 22 41,444 62,424

Total current liabilities 223,156 185,621

NON-CURRENT LIABILITIESProvisions 33,059 48,334

Total non-current liabilities 33,059 48,334

Total Liabilities 256,215 233,955

NET ASSETS 368,697 334,394

Equity 23

Contributed Equity 56,000Accumulated Surplus 312,697 334,394

TOTAL EQUITY 368,697 334,394

The Statement of Financial Position should be read in conjunction with the accompanying notes.

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STATEMENT OF CASH FLOWSfor the year ended 30 June 2002

2002 2001($) ($)

Inflows Inflows(Outflows) (Outflows)

CASH FLOWS FROM GOVERNMENT

Output appropriations 1,156,000 1,217,000Capital contributions (2001 appropriation) 56,000 300,000Holding account draw downs - -

Net cash provided by Government 1,212,000 1,517,000

Utilised as followsCASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee costs (775,599) (716,980)Supplies and services (407,668) (478,029)Grants and donations (24,090) (175,830)Capital user charge (12,276) -GST payments on purchases (46,693) (68,703)Write offs (38) -

Receipts

Grants received 23,613 80,500GST receipts on sales 7,942 7,626GST receipts from taxation authority 37,687 57,276Other receipts 27,845 34,731

Net cash used in operating activities (1,169,277) (1,259,409)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for purchase of property, plant and equipment (39,260) (36,553)Proceeds from sale of equipment 2,697Net cash paid for other investing activities - (49,778)

Net cash used in investing activities (36,563) (86,331)

Net increase in cash held 6,160 171,260

Cash assets at the beginning of the financial year 384,158 212,898

CASH ASSETS AT THE END OF THE FINANCIAL YEAR 390,318 384,158

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

Note

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NOTES TO THE FINANCIAL STATEMENTSfor the year ended 30 June 2002

1 Significant Accounting policies

General Statement

(a) Output Appropriations

(b) Contributed Equity

(c) Grants and Other Contributions Revenue

Output Appropriations are recognised as revenues in the period in which the Commission gains control of theappropriated funds. The Commission gains control of appropriated funds at the time those funds aredeposited into the Commission's bank account or credited to the holding account held at the Department ofTreasury and Finance.

Under UIG 38 “Contributions by Owners Made to Wholly-Owned Public Sector Entities" transfers in the natureof equity contributions must be designated by the Government (owners) as contributions by owners (at thetime of, or prior to transfer) before such transfers can be recognised as equity contributions in the financialstatements. Capital contibutions (appropriations) have been designated as contributions by owners and havebeen credited directly to Contributed Equity in the Statement of Financial Position. All other transfers havebeen recognised in the Statement of Financial Performance. Prior to the current reporting period, capitalappropriations were recognised as revenue in the Statement of Financial Performance. Capitalappropriations which are repayable to the Treasurer are recognised as liabilities.

Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when theCommission obtains control over the assets comprising the contributions. Control is normally obtained upontheir receipt. Contributions are recognised at their fair value. Contributions of services are only recognisedwhen a fair value can be reliably determined and the services would be purchased if not donated.

The following accounting policies have been adopted in the preparation of the financial statements. Unlessotherwise stated, these policies are consistent with those adopted in the previous year.

The financial statements constitute a general purpose financial report which has been prepared inaccordance with Australian Accounting Standards, Statements of Accounting Concepts and otherauthoritative pronouncements of the Australian Accounting Standards Board, and Urgent Issues Group (UIG)Consensus Views as applied by the Treasurer’s Instructions. Several of these are modified by theTreasurer’s Instructions to vary the application, disclosure, format and wording. The Financial Administrationand Audit Act and the Treasurer’s Instructions are legislative provisions governing the preparation of financialstatements and take precedence over Australian Accounting Standards, Statements of Accounting Conceptsand other authoritative pronouncements of the Australian Accounting Standards Board, and UIG ConsensusViews. The modifications are intended to fulfil the requirements of general application to the public sector,together with the need for greater disclosure and also to satisfy accountability requirements.

If any such modification has a material or significant financial effect upon the reported results, details of thatmodification and where practicable, the resulting financial effect is disclosed in individual notes to thesefinancial statements.

The statements have been prepared on the accrual basis of accounting using the historical cost convention.

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1 (d) Revenue Recognition

(e) Acquisition of Assets

(f) Depreciation of non-current assets

Computing Equipment and software 2 to 7 Years Office Equipment 3 to 6 YearsVehicles 5 years

(g) Leases

(h) Cash

(i) Receivables

Revenue from sale of goods and disposal of other assets and the rendering of services is recognised whenthe Commission has passed control of the goods or other assets or delivery of the service to the client.

The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of theassets given up or liabilities undertaken at the date of acquisition plus incidental costs directly attributable tothe acquisition. Assets acquired at no cost or for nominal consideration, are initially recognised at their fairvalue at the date of acquisition.

The Commission has entered into a number of operating lease arrangements for office buildings and vehicleswhere the lessors effectively retain all of the risks and benefits incident to ownership of the items held underthe operating leases. Equal instalments of the lease payments are charged to the Statement of FinancialPerformance over the lease term, as this is representative of the pattern of benefits to be derived from theleased property.

For the purpose of the Statement of Cash Flows, cash includes cash assets and restricted cash assets.These include short-term deposits that are readily convertible to cash on hand and are subject to insignificantrisk of changes in value.

(j) Intangible assets and expenditure carried forward - Software

Significant costs associated with the acquisition or development of computer software are capitalised andamortised on a straight line basis over the periods of the expected benefit, which varies from three to fiveyears.

All non-current assets having a limited useful life are systematically depreciated over their useful lives in amanner which reflects the consumption of their future economic benefits. Depreciation is calculated on thestraight line basis, using rates which are reviewed annually. Useful lives for each class of depreciable assetsare:

Receivables are recognised at the amounts receivable as they are due for settlement no more than 30 daysfrom the date of recognition. Collectability of receivables is reviewed on an ongoing basis. Debts which areknown to be uncollectable are written off.

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(k) Payables

(l) Employee Entitlements

Annual Leave

Long Service Leave

Superannuation

Payables, including accruals not yet billed, are recognised when the Commission becomes obliged to makefuture payments as a result of a purchase of assets or services. Accounts payable are generally settledwithin 30 days.

The Pension Scheme and the pre-transfer benefit for employees who transferred to the Gold StateSuperannuation Scheme are unfunded and the liability for future payments are provided for at reporting date.

The liabilities for superannuation charges under the Gold State Superannuation Scheme and West StateSuperannuation Scheme are extinguished by payment of employer contributions to the GovernmentEmployees Superannuation Board.

A liability for long service leave is recognised, and is measured as the present value of expected futurepayments to be made, in respect of services provided by employees up to the reporting date. Considerationis given, when assessing expected future payments, to expected future wage and salary levels includingrelevant on costs, the probability of individual employees remaining with the Commission until the full leaveentitlement has accrued, and period of service. Expected future payments are discounted using applicableinterest rates to obtain the estimated future cash outflows.

This method of measurement of the liability is consistent with the requirements of Australian AccountingStandard AAS30 "Accounting for Employee entitlements".

The note disclosure required by paragraph 51(e) of AAS 30 (being the employer’s share of the differencebetween employees’ accrued superannuation benefits and the attributable net market value of plan assets)has not been provided. State scheme deficiencies are recognised by the State in its whole of governmentreporting. The Government Employees Superannuation Board’s records are not structured to provide theinformation for the Commission. Accordingly, deriving the information for the Commission is impracticalunder current arrangements, and thus any benefits thereof would be exceeded by the cost of obtaining theinformation.

This entitlement is recognised at current remuneration rates and is measured at the amount unpaid at thereporting date in respect to employees' service up to that date.

Staff may contribute to the Superannuation and Family Benefits Act scheme, a defined benefits pensionscheme now closed to new members, or to the Gold State Superannuation Scheme, a defined benefit andlump sum scheme now also closed to new members. All staff who do not contribute to either of theseschemes become non-contributory members of the West State Superannuation Scheme, an accumulationfund complying with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992.All of these schemes are administered by the Government Employees Superannuation Board (GESB).

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(m) Accrued Salaries

(n) Resources Received Free of Charge or for Nominal Value

(o) Comparative Figures

(p) Rounding

2002 20012 Employee expenses $ $

Wages and salaries 645,670 590,150Superannuation 62,066 67,300Long Service Leave 13,505 23,887Annual Leave 54,637 41,892Other Related Expenses 49,756 33,471

825,634 756,700

3 Supplies and Services

Consultants 40,163 24,811Project supplies and services 27,194 51,818Advertising and promotion 12,973 8,405Travel - Interstate and overseas 6,169 6,657

86,499 91,691

4 Depreciation expense

Office Equipment 12,973 11,444 Computer Equipment 27,667 33,247 Vehicles 873 996

41,513 45,687

Comparative figures are, where appropriate, reclassified so as to be comparable with the figures presented inthe current financial year.

Resources received free of charge or for nominal value which can be reliably measured are recognised as revenues, and as assets or expenses as appropriate at fair value.

Amounts in the financial statements have been rounded to the nearest dollar.

The Commission introduced a more accurate method of recording the expense for the provision of annual leave in the 2001/02 year. The comparative figures for annual leave and wages and salaries for 2001 have been adjusted to reflect this change.

Accrued salaries (Refer to note 22) represent the amount due to staff but unpaid at the end of the financialyear, as the end of the last pay period for that financial year does not coincide with the end of the financialyear. The Commission considers the carrying amount approximates net fair value.

45


NOTES TO THE FINANCIAL STATEMENTS 2002 2001for the year ended 30 June 2002 $ $

5 Administration expense

Communication 46,599 42,700Consumables 45,913 54,427Maintenance 10,341 13,196Meeting Expenses 8,666 9,171Other Staff Costs 60,107 62,243Operating Lease - Vehicles 42,013 37,478Other Administration Expense 84,387 91,171

298,026 310,386

6 Accommodation expense

Lease/rental 48,354 47,801Repairs and maintenance 15,375 24,093Other accommodation expense 12,030 8,828

75,759 80,722

7 Grants and subsidies expense

Capital Grants

Yarra Yarra Catchment Management Group Inc. - 19,730

Recurrent Grants

Shire of Brookton 15,000 -Avon Working Group 5,000 -Shire of Chittering 5,000 5,000

Shire of Wickepin (910) 5,000Regional Branding Group Inc. - 10,000Avon Community Development Foundation - 10,000Shire of Mukinbudin - 4,100Great Southern Arts Centre Inc. - 5,000Shire of Pingelly - 5,000

Eden Valley Biodynamic Produce - 6,770 Upper Great Southern Oil Mallee Assoc. - 4,940 Dalwallinu Acacia Symposium - 5,000 Shire of Dandaragan - 5,190

Shire of Gingin - 5,000Gingin Coast Tourism Assoc. Inc. - 5,000Department of Agriculture - 10,000University of Western Australia - 50,000Department of Transport - 20,000Miscellaneous small grants - 100

24,090 156,100

Total Grants expense 24,090 175,830

46



8 Capital User Charge 12,276 -

9 Net loss on disposal of non-current assets

Items incorrectly capitalised expensed in current year - 2,899Computers and office equipment scrapped (inoperable) - 2,040

- 4,93910 Grants received

WA Planning Commission 13,612 -Dept. Local Government and Regional Dev.- Indian Ocean Drive Study 20,000 -Central Coast Planning Coordinating Committee - Indian Ocean Drive 5,000 -Department of Local Government and Regional Development - RDS 27,091 -Regional Initiatives Fund - Department of Commerce and Trade - 73,000Department of Commerce and Trade - Community portal reengineering - 5,000Town of Northam - Contribution to Avon Economic Impact Study - 1,250Shire of Northam - Contribution to Avon Economic Impact Study - 1,250Toodyay Shire Council - Contribution to Avon Economic Impact Study - 1,250Shire of York - Contribution to Avon Economic Impact Study - 1,250

65,703 83,00011 Other revenue

GEHA rentals 13,009 14,245Recoup of expenses 25,445 40,554

38,454 54,79912

Loss on sale of trailer (421) -Profit on sale of sundry computer and office equipment 2,297 -

1,876 -13 Revenues from Government

Appropriation revenue received during the year 1,224,000 1,217,000

Capital Appropriations (b) - 300,000

1,224,000 1,517,000Resources received free of charge (c) Determined on the basis of the following estimates provided by agencies:Office of the Auditor General - audit services 10,000 9,500

2,067 1,833

12,067 11,333

Net profit on disposal of non-current assets

Department of Treasury and Finance - Commercial Property Branch

A capital user charge rate of 8% has been set by the Government for 2001/02 and represents the opportunitycost of capital invested in the net assets of the Authority used in the provision of outputs. The charge iscalculated on the net assets adjusted to take account of exempt assets. Payments are made to theDepartment of Treasury and Finance on a quarterly basis.

Output Appropriations (a)

47



13 Revenues from Government (Cont.)

2002 200114 Restricted Cash Assets $ $

Experience IT! - 227,678Regional Initiatives Fund 2,910 17,000Coast Road Impact Study 16,603 15,000Community Portal reengineering - 5,000Industry Relocation Funds - 407

Information and Services Development Funds - 344

19,513 265,429

15 Receivables

Accounts receivable 29,900 33,500GST receivable 4,943 2,862

34,843 36,362

16 Amounts receivable for outputs

Current 41,000 -Non-Current 27,000 -

68,000 -

This asset represents the non-cash component of output appropriations. It is restricted in that it can only beused for asset replacement or payment of leave liability.

(a) Output appropriations are accrual amounts as from 1 July 2001, reflecting the full price paid for outputspurchased by the Government. The appropriation revenue comprises a cash component and a receivable(asset). The receivable (holding account) comprises the depreciation expense for the year and any agreedincrease in leave liability during the year.

(b) Capital appropriations were revenue in 2001 (year ended 30 June 2001). From 1 July 2001, capitalappropriations, termed Capital Contributions, have been designated as contributions by owners and arecredited straight to equity in the Statement of Financial Position.

(c) Where assets or services have been received free of charge or for nominal consideration, the authorityrecognises revenues equivalent to the fair value of the assets and/or the fair value of those services that canbe reliably determined and which would have been purchased if not donated, and those fair values shall berecognised as assets or expenses, as applicable.

These funds represent the unexpended portion of grants received which are required to be used for specificprojects, and to which conditions are attached. Experience IT! funds were reclassified as unrestricted for the2002 year.

48



17 Other assets

Prepayments - current 7,853 7,943Prepayment -Merredin Office rent (refer non-current prepayments note) 13,432 12,915

21,285 20,85818 Property, equipment and vehicles

Vehicles at cost 5,536 5,000Accumulated depreciation (1,806) (2,612)

3,730 2,388 Office Equipment at cost 87,131 87,612 Accumulated depreciation (54,616) (49,633)

32,515 37,979 Computing Equipment at cost 123,282 146,151 Accumulated depreciation (81,224) (105,139)

42,058 41,012Total non-current fixed assets 78,303 81,379

2002 Computers VehiclesCarrying amount at the start of the year 41,012 2,388Additions 28,713 3,036Disposals - (400)Depreciation (27,667) (873)Write-off of assets - (421)

Carrying amount at the end of the year 42,058 3,730

19 Prepayments - Non-current 2002 2001$ $

32,163 45,594

20 Payables

Current - Creditors 58,928 31,127 21 Provisions

Current Annual leave 57,282 47,564 Long service leave 53,314 35,645

Superannuation on-costs 12,188 8,861

122,784 92,070

Reconciliations of the carrying amounts of property, equipment and vehicles at the beginning and end of thecurrent financial year are set out below.

Refurbishment costs paid for Merredin office, in exchange for five year rent free lease, capitalised

37,9797,509

-

32,515

(12,973)-

Office Equipment

49



21 Provisions (Cont.)

Non-current Long service leave 26,221 41,830 Superannuation 6,838 6,504

33,059 48,334

Total employee entitlements 155,843 140,404

2002 200122 Other Liabilities $ $

Unearned income - Central Coast Road Impact Study - 35,000Accrued Expense - incomplete contracts not yet invoiced 11,846 -Accrued salaries and allowances 17,011 14,707Accrued superannuation 2,074 2,056Board Members' annual and sitting fees and allowances 10,513 10,661

41,444 62,424

23 Equity

Contributed Equity

Opening Balance - -Capital Contributions (a) 56,000 -

Closing Balance 56,000 -

Accumulated surplus Opening Balance 334,394 134,217 Change in net assets (21,697) 200,177

Closing Balance 312,697 334,394

The superannuation liability has been established from data supplied by the Government EmployeesSuperannuation Board. The Commission considers the carrying amount of employee entitlementsapproximates the net fair value.

Long Service Leave entitlements are calculated using the present value method. The following assumptionswere made in the calculations.

c) The average term to settlement for non-current long service leave is 3.26 years. The actual term tosettlement for each employee was used in the present value calculation.

Accrued salaries represents amounts owing for the 6 working days from 21 June 2002 to 28 June 2002, and allowances owing which accrued prior to 30 June.

(a) From 1 July 2001, capital appropriations, termed Capital Contributions, have been designated ascontributions by owners and are credited straight to equity in the Statement of Financial Position.

a) The assumed rate of increase in employee entitlements due to wage rate increases was 3%, with a further3% assumed for level increments.

b) The discount rate used was 5.831%, being the pro rata average of the 3 year and 10 year governmentbond rates as at 30 June 2002.

50



24 Notes to the Statement of Cash Flows

a) Reconciliation of Cash

Cash assets 370,805 118,729Restricted cash assets (refer to note 14) 19,513 265,429

390,318 384,158

b)

c)

Net cost of services 1,257,764 1,328,156

Non-cash items Depreciation expense (41,513) (45,687) Resources received free of charge (12,067) (11,333) Net profit on sale of assets 1,876 -

Net loss on disposal of assets - (4,939)

Increase/(Decrease) in assets:Current receivables (3,601) 10,152

Other current assets 427 (2,194)Other non-current assets (13,431) -

(Increase)/Decrease in Liabilities Current payables (27,801) (3,688)

Current provisions (30,714) (12,927)Other current liabilities 20,980 2,923Non-current provisions 15,275 (5,473)

Net GST payments 1,064 3,801Change in GST in receivables/payables 1,018 618

Net cash used in operating activities 1,169,277 1,259,409

25 Commitments for expenditure

a) Capital expenditure commitments

Experience IT! mobile unit construction 50,125 -

Cash at the end of the financial year as shown in the Statement of CashFlows is reconciled to the related items in the Statement of FinancialPosition as follows:

During the financial year, there were no assets/liabilitiestransferred/assumed from other government agencies that were notreflected in the Statement of Cash Flows.

Reconciliation of net cost of services to net cash flows used in operatingactivities

51



25 Commitments for expenditure (Cont.)

b) Non-cancellable operating lease commitments

Not later than one year 37,147 14,193Later than one and not later than five years 13,185 16,020

50,332 30,213c) Other expenditure commitments

Within 1 year :Indian Ocean Drive study 11,631 -Experience IT! Publication and marketing support services contract 13,500 -

25,131 -

26 Contingent Liabilities

The Wheatbelt Development Commission had no contingent liabilities at 30 June 2002.

27 Events occurring after reporting date

There were no events that occurred after 30 June 2002 that materially affected the financial statements.

28 Explanatory Statement (i)

2002 2001 Variance Variance

$ $ $ %

Grants and Subsidies 24,090 (151,740) -86%Net Profit(Loss) Disposal of Assets 1,876 6,815 -138%Capital User charge 12,276 - 12,276 100%Other revenue 38,454 (16,345) -30%Grants Received 65,703 (17,297) -21%CF Capital Appropriation (300,000) -100%

Grants and subsidies expense

83,000

Details and reasons for significant variations between actual results and the corresponding item of thepreceding year are detailed below. Significant variations are considered to be those greater than 10% or$10,000.

Significant variations between actual revenues and expenditures for the financial year and revenues and expenditures for the immediately preceding financial year

54,799

The Crown Solicitor advised in April 2002 that the paying of grants was not within the statutory powers of theDevelopment Commission's under the Regional Development Act. No further grants were issued after thisdate.

175,830(4,939)

The Wheatbelt Development Commission had no finance lease commitments outstanding at the end of thefinancial year. All funds held as restricted cash were committed for expenditure within one year.

300,000

52



28 Explanatory Statement (Cont.)

(i)

Net Profit/Loss on disposal of fixed assets

Capital User Charge

Other Revenue

Grants Received

Consolidated Fund Capital AppropriationRefer to note 13(b)

(ii) Significant variations between estimates and actual results for the financial year.

Budget Actual Variation Variation

$ $ $ %Supplies and Services 139,000 (52,501) -38%Depreciation 68,000 (26,487) -39%Administration expenses 325,000 (26,974) -8%Grants and subsidies 87,000 (62,910) -72%Capital User Charge 23,000 (10,724) -47%Operating revenue 55,000 (16,546) -30%

Supplies and services

12,276

Significant variations between actual revenues and expenditures for the financial year and revenues and expenditures for the immediately preceding financial year

Details and reasons for significant variations between estimates and actual results are detailed below.Significant variations are considered to be those greater than 10% or $10,000. It should be noted that theexpense line items were reclassified during the current year, with the budgeted expenditure allocatedaccordingly

24,090

The revenue recognised by the Commission is generally for funds recouped for expenses borne by theCommission for joint projects. In 2000/01 the Commission received over $36,000 from the MerredinTelecentre as their contribution to the Merredin Regional Resource Centre. In 2001/02 $20,000 wasrecouped from the Shire of Chittering for the Economic Development Strategy conducted jointly by the Shireand the Commission. Other minor revenue items were consistent between the two years.

41,513

The Capital User Charge was introduced in 2001/02. No expense was recorded in 2000/01. The nominalexpense calculated by the Department of Treasury and Finance for 2000/01 was $19,000.

The Experience IT! project was delayed, and approximately $50,000 budgeted for services was not spent inthe current year. This project has been carried forward to the new financial year.

86,499

38,454

Grant funding attracted by the Commission varies significantly from year to year, depending upon the fundingprograms available and the projects undertaken. The Commission's inability to pass on grants to otheragencies after April of 2002 (on the advice of the Crown Solicitor) restricted the purposes for which grantscould be sought.

An accounting adjustment was made in 2000/01 to remove items incorrectly capitalised in the previous year.The Commission also wrote off two laptop computers which become inoperable during that year. In contrast,the Commission sold various computer and office equipment assets (which had a nil carrying value) by publicauction during the 2001/02 year, making a small profit.

298,026

53



(ii) Significant variations between estimates and actual results for the financial year (Cont.)

Depreciation

Grants and subsidies

Capital User Charge

Operating Revenue

29 Financial Instruments - Interest Rate Risk Exposure

2001 Weighted average Floating Non - Total effective interest 1 year 1 to 5 Over 5 interest

interest rate rate or less years years bearing % $ $ $ $ $ $Assets Cash resources - - - - - 370,805 370,805 Restricted cash resources - - - - - 19,513 19,513 Receivables - - - - - 102,843 102,843 Prepayments - - - - - 21,285 21,285 Total financial assets - - - - - 514,446 514,446

Liabilities Payables - - - - - 58,928 58,928 Total financial liabilities - - - - - 58,928 58,928

Net financial assets - - - - - 455,518 455,518

2001Financial assets - - - - - 441,378 441,378Financial liabilities - - - - - 58,205 58,205Net financial assets - - - - - 383,173 383,173

The Experience IT! project budget had anticipated $20,000 in sponsorship revenue at the time the Commission's 2001/02 budget was drafted. The sponsorship attraction aspect of the project was delayed due to legal issues, with sponsorship revenue now expected to be realised in the 2002/03 year.

Cost savings were achieved across most areas of administration expense. The delay to the Experience IT!project has postponed approximately $10,000 in administrative expenses budgeted for this year.

$150,000 had been allocated to capital purchases for the Experience IT! project, with $30,000 budgeted forthe related depreciation. The delay in the project has resulted in the capital funds being carried forward to thenext financial year.

The Capital User Charge was introduced in 2001/02. The budget of $23,000 was based on the estimatedopening and closing asset positions for the year. Effective asset and cash management reduced the netasset position of the Commission at the end of each quarter, resulting in a significant saving in CUC.

Fixed interest rate maturities

Administration expenses

The Crown Solicitor advised in April 2002 that the paying of grants was not within the statutory powers of theDevelopment Commission's under the Regional Development Act. No further grants were issued after thisdate.

54



29 Financial Instruments - Interest Rate Risk Exposure (Cont.)

30 Remuneration and Retirement Benefits of Accountable Authority and Senior Officers

Remuneration of Members of the Accountable Authority 2002 2001$ $

0 - $10,000 7 9$10,000-$20,000 1 1

The total remuneration of the members of the Accountable Authority is: 45,773 37,120

Remuneration of Senior Officers

$120,000-$130,000 1$130,000-$140,000 1

134,577 126,844The total remuneration of senior officers is :

The carrying amount of financial assets and financial liabilities recorded in the financial statements are notmaterially different from their net fair values, determined in accordance with the accounting policies disclosedin note 1 to the financial statements.

The number of Senior Officers other than senior officers reported asmembers of the Accountable Authority, whose total of fees, salaries,superannuation and other benefits for the financial year, fall within thefollowing bands:

The superannuation included here represents the superannuation expenseincurred by the Authority in respect of Senior Officers other than seniorofficers reported as members of the Accountable Authority. No SeniorOfficers are members of the Pension Scheme.

The number of members of the Accountable Authority whose total of fees,salaries, superannuation and other benefits for the financial year, fallswithin the following bands are:

The superannuation included here represents the superannuation expenseincurred by the Authority in respect of members of the AccountableAuthority. No members of the Accountable Authroity are members of thePension Scheme.

55



31 Affiliated Bodies

7,940 -

29 Output information2002 2001 2002 2001

Employee Costs 440,695 384,939 396,804Supplies and Services 67,170 19,329 77,559Administration Expense 160,411 137,616 165,678Accommodation Expense 38,970 36,790 43,596Grants and Subsidies Expense 19,531 4,559 115,784Depreciation 21,375 20,138 24,694Interest and Capital User Charge 6,321 5,955 2,669

- -

Total cost of services 754,473 609,326 826,784

Revenues

Grants received 38,613 27,091 44,862Other operating revenue 30,785 7,669 29,619

762 1,114 -

Total Revenues 70,160 35,874 74,481

Net cost of services 684,313 573,452 752,303

Revenues from Government

Output appropriations 538,000 686,000 722,453Capital appropriations - - 17,837Resources received free of charge 6,214 5,854 6,125

Total revenues from Government 544,214 691,854 746,415

Change in net assets resulting from operations (140,099) 118,402 (5,888)

The Avon Industrial Park Advisory Board is a government affiliated body in that it received administrativesupport and all administrative funding from the Wheatbelt Development Commission. The Avon IndustrialPark Advisory Board is not subject to operational control by the Wheatbelt Development Commission. Theexpenses of the Board have been included in the financial statements as part of the Commission'soperations.

Net loss on disposal of non-currentassets

Net profit on disposal of non-currentassets

Avon Industrial Park Advisory Board

144,70937,12660,04620,993

-

14,132359,896

206,065

-

63,318

575,853

494,547

5,208

781,918

282,163

2,269

639,171

38,13825,180

Facilitation ServicesInformation and Promotion

56

Documents

WHEATBELT DEVELOPMENT COMMISSION