This annual report is to be presented to Parliament to meet the statutory reporting requirements of the Urban Renewal Act 1995.
This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.
Submitted on behalf of the Urban Renewal Authority (trading as Renewal SA) by:
Mark Devine
A/Chief Executive of Renewal SA
Renewal SA is a critical delivery agency that initiates, supports, undertakes and promotes strategic property based initiatives aligned to the Government’s policy objectives. Renewal SA continues to support the government’s growth agenda for the state through a focus on property development that build’s new industries, infrastructure and communities.
As the state government’s leading urban development agency, Renewal SA has delivered continued progress on flagship developments:
From a financial perspective, the underlying operating result for 2018-19 before non-cash valuation adjustments was a profit of $13.2 million which is $1.7 million better for the Urban Renewal Authority than budget before valuation adjustments. Land sales of $66.8 million were achieved across our projects. Capital expenditure of $108.8 million was invested into activities ranging from civil works, building refurbishment, environmental remediation and road construction, creating significant employment and contracting opportunities for the local property development sector.
The majority of this capital investment ($72 million) supported further development at Lot Fourteen to transform the former Royal Adelaide Hospital site into a neighbourhood of ideas, entrepreneurship, research, art and culture. Significant progress has been made this financial year in refurbishing heritage buildings on Frome Road and North Terrace and undertaking the major demolition program to remove obsolete hospital structures.
The strategic guidance provided by the Urban Renewal Authority Board of Management has been integral to Renewal SA’s success. I wish to acknowledge that after serving seven years in the role, Bronwyn Pike will conclude her term as Presiding Member on 30 July 2019. Board Members Phil Baker, David McArdle and Terry Groom will also conclude their terms in July 2019. I would like to again thank the each of them for the valuable contribution they have made to Renewal SA over the years. I also want to acknowledge the important contribution made to the Board by the late Geoff Knight, who continued to attend meetings until August 2018. Following these significant departures, the State Government has announced the appointment of Anne Skipper, Phil Rundle and Kimberley Gillan to the Board of Management, effective from 1 August 2019. Current Board member Con Tragakis will succeed Bronwyn Pike as the new Presiding Member. The Board will continue to benefit from the experience of two other continuing members, Jim McDowell and Helen Fulcher. These new appointments bring to Renewal SA considerable local experience and strategic knowledge of the residential, retail and commercial property sectors in South Australia.
The state government has a clear growth agenda for South Australia, and Renewal SA will continue to play a critical role in stimulating public and private sector investment in real property to drive economic growth and deliver projects of public interest.
Mark Devine
A/Chief Executive
Our strategic focus
The Urban Renewal Authority was established under the Urban Renewal Act 1995 with the primary purpose to initiate, undertake, promote and support strategic urban development activity to help deliver key strategic priorities of the South Australian Government, particularly the new urban development directions outlined in the 30 Year Plan for Greater Adelaide.
Renewal SA is responsible for leading and coordinating urban renewal activity to ensure that the state’s future employment and housing needs are met through well planned, affordable and vibrant urban development located near transport, employment, education and other services.
Our values convey how we work with each other, our customers and our stakeholders.
They provide a framework for making sound decisions and actions that ultimately affect the quality of service we deliver to the South Australian community.
The following values are integral to guiding the implementation of our Strategic Plan.
The key functions of Renewal SA as outlined in the Urban Renewal Act 1995 are to:
The Government of South Australia is committed to change that creates more jobs, lower costs for families and businesses and better government services.
Renewal SA has a targeted and tangible contribution towards the government’s objectives through:
Lot Fourteen
Lot Fourteen is being transformed into a world-class neighbourhood for innovation, entrepreneurship and research in technology and creative industries. Renewal SA has worked closely on Lot Fourteen with other key agencies including the Department of the Premier and Cabinet and the Department for Innovation and Skills. These agencies led by Premier Steven Marshall as the lead Minister for Lot Fourteen, have delivered the significant progress now evident on the site.
For its part, Renewal SA has undertaken one of Australia’s largest demolition programs over the past 12 months to remove redundant hospital buildings from Lot Fourteen, while also refurbishing and retaining the magnificent heritage buildings fronting Frome Road and North Terrace. Stage 1 of the demolition program involved the demolition of the 1960s-era East Wing building near the Adelaide Botanic Garden and was completed during the year. Stages 2 and 3 are now underway to create more space for future development activity.
During 2018-19, approximately 70 per cent of available commercial space within these heritage buildings was committed or is in negotiation with prospective tenants aligned to Lot Fourteen’s target industry sectors. This included providing accommodation for the Office of the South Australian Chief Entrepreneur and the Defence and Space Landing Pad. Major progress was made in the construction of new headquarters for the Australian Space Agency. By June 2019, there were approximately 250 people working in the Lot Fourteen neighbourhood.
The Adelaide City Deal was announced during the year with the following Commonwealth commitments in relation to Lot Fourteen:
Renewal SA is also coordinating the delivery of the Lot Fourteen Master Plan to maximise connectivity to the Botanic Garden and the East End to allow greater public access across the entire site from North Terrace to the River Torrens.
Tonsley Innovation District
To the south, Renewal SA continues with the redevelopment of the 61-hectare former Mitsubishi Motors manufacturing site, transforming it into the award winning Tonsley Innovation District. This key South Australian Government project is pivotal to facilitating growth in the high value manufacturing sector.
Tonsley brings together leading-edge research and education institutions and established businesses like SAGE Automation and Micro X, in addition to start-ups, business incubators and accelerators who connect and collaborate in Australia’s leading innovation district.
The Tonsley project progressed significantly in 2018-19, including commencement of several new developments, securing a number of new tenants and delivering further on the innovation district model, transforming this site into an active and collaborative business and residential community.
Committed and commenced developments include development of Tenancy 8 and 9, the Boiler House adaptive reuse and neighbouring retail development, relocation of Bedford Medical Centre, a short-stay hotel and mixed-use development and development of a multi-deck car park progressing Tonsley’s transport and parking strategy.
In 2018-19 Tonsley has helped expedite business growth with several existing tenants securing additional space at Tonsley to accommodate their growing operations. Micro-X has doubled its assembly line space and secured accommodation in to manufacture cutting-edge carbon nanotube x-ray tubes. AZZO have also acquired additional space and negotiations are ongoing with the SAGE Group to expand at Tonsley. Meanwhile global giant, Tesla, joined the Tonsley business community and set up their Asia Pacific service and maintenance hub, the first of its kind outside of the United States.
The Peet residential development, Tonsley Village, also progressed well during 2018-19 with many apartments and terrace homes sold and under construction and the first residents now living on site. One of these residents also works at Tonsley and is an apprentice at TAFE SA on-site, demonstrating the potential for Tonsley to deliver on new live, work and play standards.
The innovative Tonsley District Energy Scheme was executed with Enwave Australia in 2018-19, which will see a large solar PV installation on the Main Assembly Building (MAB) and TAFE SA roofs, along with battery storage and smart metering technologies. On top of that, the Australian Gas Infrastructure Group continues their work on the Australian-first hydrogen production and distribution facility at Tonsley.
Technology Park Adelaide
About 12 kilometres north of the city is a similar size innovation precinct also under the stewardship of Renewal SA — Technology Park Adelaide. Technology Park Adelaide is a vibrant world-class business community of innovative, high tech organisations.
Anchored by global companies such as Codan, Daronmont Technologies, Lockheed Martin, Ellex Medical Lasers, Saab Australia and Tindo Solar, the park is now home to over 100 companies.
With an established hub of defence and aerospace, advanced electronics, health, training, consulting, and information communication technology companies, Technology Park Adelaide provides a thriving environment for business collaboration and networking located on 65 hectares adjacent to the world-class Mawson Lakes residential development.
Lot Fourteen, Tonsley Innovation District and Technology Park are the backbone of innovation in South Australia, offering opportunities for innovative and entrepreneurial businesses in future industries to collaborate and thrive.
Residential and mixed-use
During 2018-19, Renewal SA continued to invest heavily in the development of not only Lot Fourteen and the Tonsley Innovation District, but its other flagship projects at Bowden, Port Adelaide, Playford Alive and Woodville West.
While Renewal SA’s urban development activity over the past 12 months delivered real economic and employment results for the state’s construction-related businesses, the significant investment undertaken successfully leverages new private sector investment (such as residential construction at Bowden, Playford Alive, Woodville West and Tonsley Innovation District).
During the year, significant planning and work has been undertaken toward the rejuvenation of the Bowden Heritage Precinct. The redevelopment of the former Brompton Gasworks site is the next step in transforming this former six-hectare industrial area into a great place to live, work and shop. Demolition of obsolete and non-heritage structures started in late August 2018 and continued through to February 2019, with remediation now the focus.
At the Port, private developers Cedar Woods and Starfish Developments continued to deliver on the plans for their respective Fletcher’s Slip/North West and Dock One/Port Approach (South) precincts.
In August 2018, Starfish Developments was appointed to unlock the waterfront Dock One area, making way for 650 new homes, a new pedestrian bridge spanning Dock One, the adaptive reuse of the six-storey former Department of Marine and Harbours Building a new community garden and generating in excess of $200 million in private investment.
Cedar Woods has commenced construction of stages 1 and 2, the first of four stages totalling approximately 15 hectares. When complete, the four stages will include 500 dwellings, adaptive reuse of the Fletcher’s Slip State Heritage Place, more than 20 per cent public open space, affordable homes, and second-road access to the existing New Port Quays
development to Semaphore Road.
This activity was further supported by Renewal SA releasing to the market one of the area’s last significant land parcels, Port Approach North, through an expression of interest process in June 2019. The relocation of Incitec Pivot from the Port Approach North precinct to outer Port Adelaide has provided the opportunity to release this land for redevelopment.
Commercial and industrial land
During the year, Renewal SA continued to supply strategically-located commercial and industrial land to support South Australia’s economic and employment growth, including Edinburgh Park, Northern Adelaide Food Park and Seaford Industry Park.
In addition to land held for other identified projects, Renewal SA manages a portfolio of 2,865 hectares of commercial and industrial land on behalf of the Government of South Australia, including 728 hectares within designated industrial projects.
A total of 111.6 hectares of commercial and industrial land valued at $16.736 million was sold in 2018-19 including parcels of land at Gillman, Mawson Lakes, Osborne, Seaford and Wingfield for employment-generating outcomes (totalling 13.9 hectares) and in Bowering Hill for rural living outcomes (totalling 97.7 hectares).
These sales generated hundreds of jobs and tens of millions of dollars of new private sector investment in the State’s commercial and industrial sectors.
Community participation
The past year also saw another excellence performance from Renewal SA’s Works Program. This community-based initiative is now in its tenth year and extends the benefits of the agency’s urban renewal activities by creating employment, work experience and training placements.
These opportunities were directly linked to the $100 million in contracts awarded by Renewal SA to the private sector. During the 12-month reporting period, the Works Program provided 241 people with pathways to employment through education, engagement, training and work experience across Renewal SA’s flagship projects and communities.
Renewal SA engages with organisations and the community to place people at the centre of urban planning and design. Almost 58,000 people were engaged across all of our project activity through face-to-face community forums, newsletters, electronic mail or online tools.
During the 2018-19 financial year Renewal SA led a number of activities across its flagship projects to drive visitation, engagement and future private investment. More than 10,000 visitors were attracted to the Tonsley Innovation District through a major partnership event with Science Alive. Five thousand members of the local community attended the Playford Alive Fun Day in November 2018 as an indication that the community spirit is truly alive.
The Port attracted more than 80,000 people gefting their skates on at the local Winterfest activation in July 2018, while a further 35,000 people visited Lot Fourteen through a range of Renewal SA and externally-led activations and events.
Infrastructure and planning activity
During the 2018-19 financial year, Renewal SA also progressed the following significant ongoing programs:
Corporate performance
The following sections provide a summary of Renewal SA’s operational performance in regard to employment opportunity programs; performance management and
development systems; work health, safety and return-to-work programs.
Employment opportunity programs
Program name | Performance |
---|---|
Disability Access and Inclusion Plan | Support for employees with a disability is ongoing, in line with Renewal SA’s Disability Access and Inclusion Plan. Where applicable, staff are encouraged to access special leave to manage any disability. |
Renewal SA Graduate Program | In March 2018, the organisation finalised its two-year graduate program. Four graduates successfully attained employment within and outside the public sector whilst another four successfully attained further employment within Renewal SA. |
Agency performance management and development systems
Performance management and development system | Performance |
---|---|
Partnering for performance program (PPP) | Renewal SA’s PPP reinforces the importance of values, behaviours and clarity of roles, responsibilities and accountabilities. The program provides staff with the opportunity to discuss a development plan to assist with individual career aspirations.
One hundred per cent of Renewal SA eligible employees reported participating in the program, compared to the South Australian Public Sector average of 48.9 per cent (for the reporting period to June 2018). A Learning and Development Calendar was also implemented to capture and complement the development aspirations of staff. |
Executive employment in the agency
Executive classification | Number of executives |
---|---|
Executive | 4 |
Executive Employment data from previous years is available on Data.SA.
The Office of the Commissioner for Public Sector Employment website provides further information on the breakdown of executive gender, salary and tenure by agency.
Work health, safety and return to work programs
Program name | Performance |
---|---|
Work Health Safety (WHS) program |
Renewal SA follows a risk management approach to its safety program, with extensive consultation through employee and management representation on our WHS committee. |
Health and Wellbeing program | Renewal SA’s health and wellbeing program continued to focus on mental health, equality and the prevention of gender based violence, both within and outside of the workplace.
Renewal SA has identified support mechanisms for staff impacted by domestic violence, and in 2018-19 implemented a Wellness Program that celebrates selected national and international days aligned with the organisation’s core values. Specific examples include International Women’s Day, R U OK? Day and International Day for the Elimination of Violence against Women. Renewal SA further offers a preventative health care program, which focuses on skin screening and influenza vaccinations, to provide staff with the option of accessing medical screening at work. |
White Ribbon Workplace program | The launch of Renewal SA’s Violence Against Women Strategy incorporated several actions to ensure Renewal SA continues to be a positive influence within the government as well as with key stakeholders on this topic. As a result of the strategy, Renewal SA has a better understanding of how violence against women affects our staff.
As an accredited White Ribbon workplace, Renewal SA in 2018-19 continued to build on existing workplace policies to support victims of domestic violence. |
Workplace injury claims | 2018-19 | 2017-18 | % change (+/-) |
---|---|---|---|
Total new workplace injury claims | 2 | 2 | 0% |
Fatalities | 0 | 0 | 0% |
Seriously injured workers | 0 | 0 | 0% |
Significant injuries (where lots time exceeds a working week, expressed as frequency rate per 1000 full-time equivalents [FTE]) | 3.33 | 3.27 | +1.8% |
*Number of claimants assessed during the reporting period as having a whole person impariment of 30% or more under the Return to Work Act 2014 (Part 2, Division 5).
Work health and safety regulations | 2018-19 | 2017-18 | % change (+/-) |
---|---|---|---|
Number of notifiable incidents (Work Health and Safety Act 2012, Part 3) | 0 | 0 | 0% |
Number of provisional improvement, improvement and prohibition notices (Work Health and Safety Act 2012, Sections 90, 191 and 195) | 0 | 0 | 0% |
Return to work costs** | 2018-19 | 2017-18 | % change (+/-) |
---|---|---|---|
Total gross workers compensation expenditure ($) | $41,408 | $57,464 | -38.7% |
Income support payments (gross) ($) | $20,104 | $3,911 | +80.5% |
**Before third party recovery.
Work Health and Safety and Return to Work Performance data from previous years is available on Data.SA.
The underlying operating result for the year ended 30 June 2019 is a profit of $13.2 million, excluding non-cash asset valuation adjustments. After these valuation adjustments, which aggregate to $219.5 million, the reported Comprehensive Result
is a loss of $206.3 million.
The asset valuation adjustments are principally driven by non-cash accounting adjustments that flow from the Government’s decision to provide capital funding for several development projects by way of equity contributions. In past years, capital funding for those projects was provided to Renewal SA as Community Service Obligation (CSO) payments.
As a result of the change in the character of the funding provided, this funding can no longer be included in the valuation of inventory assets as was the case in prior years. As a result, the carrying book values of the assets concerned have declined.
It is important to note that this change does not adversely impact Renewal SA’s future overall cash flow and financial viability in that the required cash funding continues to be provided to Renewal SA and has been included within the 2019-20 State Budget. The Statement of Financial Position shows a Net Asset and Total Equity of negative $63.9 million as at 30 June 2019. This is not reflective of a going concern issue given that Renewal SA’s expected future cash flow has not been adversely impacted. In the absence of the non-cash decline in asset values, the net asset position would be positive $155.5 million as at 30 June 2019.
It should also be noted that Renewal SA’s inventory assets are recorded at the lower of cost and net realisable value, in accordance with the Accounting Standard AASB 102 – Inventories. The net realisable value of Renewal SA’s inventory assets are estimated to be significantly higher than the reported book value.
A summary of the financial result is presented below. Full audited financial statements for the year ended 30 June 2019 are attached to this report.
The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.
Consultancies with a contract value below $10,000 each
Consultancies | Performance | Expenditure ($) |
---|---|---|
19 consultants engaged | Various | 76,225 |
Consultancies with a contract value above $10,000 each
Consultancies | Performance | Expenditure ($) |
---|---|---|
Deloitte Access Economics | Economic development consultancy | 166,360 |
Fyfe Pty Ltd | Development Structure Plan | 41,556 |
Guildhouse Inc | Public Art Strategy Services | 18,638 |
Hames Sharley | Retail Strategy Master Plan |
28,428 |
Hannan Duck and Partners | Strategic Plan | 39,000 |
Holmes Dyer |
Development Structure Plan | 19,415 |
JTVVO Solutions Pty Ltd | Development audit of conduits and conduit paths | 14,250 |
KPMG | Accounting advice | 15,208 |
Lucid Consulting Engineers (SA) Pty Ltd | Fire Services Master Plan | 15,862 |
Mott McDonald |
Project Management services |
20,160 |
PricewaterhouseCoopers | Accounting advice | 15,000 |
PricewaterhouseCoopers | Accounting advice | 15,000 |
PricewaterhouseCoopers | Business continuity planning and simulation | 11,220 |
PricewaterhouseCoopers | Goods and Services Tax advice | 15,000 |
Right Angle Studio |
Retail vision and strategy | 76,465 |
RSM Australia Pty Ltd | Emissions Reduction Fund audit | 53,960 |
The Buchan Group Melbourne Pty Ltd |
Development Concept Design | 28,000 |
TOTAL |
593,522 |
See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.
Risk and audit at a glance
Renewal SA has in place a robust risk management framework. The objective of this framework is to ensure an appropriate risk culture prevails with a high level of risk awareness throughout the organisation. The framework includes formalised risk management processes to manage risk in line with contemporary risk management standards whereby risks are identified, assessed and assigned to risk owners with risk treatment and mitigating strategies required.
There is also in place appropriate risk reporting to the Executive, the Audit and Risk Committee and the Board of Management.
The Urban Renewal Authority Board of Management has an established Audit and Risk Committee whose principal functions are to:
The Audit and Risk Committee comprises members of the Board of Management.
Renewal SA’s Internal Audit function is provided by the Department of Human Services Internal Audit team, under a Service Level Agreement. The Internal Audit work plan is reviewed and approved by the Audit and Risk Committee, with all findings reported to the Committee.
Strategies implemented to control and prevent fraud
Renewal SA’s fraud policies include a range of internal controls to ensure employees, volunteers, agents, contractors, sub-contractors and suppliers of goods and services are aware they must refrain from engaging in any activity that is, or could be perceived as, fraudulent or unethical.
Renewal SA has developed a fraud and corruption control strategy, which includes operational arrangements to improve awareness of obligations and to minimise the chance of fraud such as:
Whistle-blowers disclosure
Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Whistleblower Protection Act 1993: one.
Data for previous years is available at: https://data.sa.gov.au/data/dataset/245d5172-5781-460b-ad5a-243909eb44ad
Number of public complaints reported
No categories of complaints were received by, or made against, Renewal SA for the 2018–2019 financial year.
The total number of enquiries between 1 July 2018 and 30 June 2019 was 305 (three hundred and five). As a result of these enquires, no specific service improvements were required to be implemented by Renewal SA as part of the response or action as a result of the enquiry.
For the year ended 30 June 2019
For the year ended 30 June 2019
Note No. |
2019 $’000 |
2018 $’000 |
|
---|---|---|---|
Income |
|||
Revenue from sales | 9 | 66,755 | 87,033 |
Less: cost of sales | 9 | 41,195 | 48,938 |
Gross profit from sales | 25,560 | 38,095 | |
Share of net profit in joint ventures | 10 | 2,166 | 1,110 |
Revenues from SA Government | 11 | 8,239 | 9,111 |
Interest revenues | 12 | 975 | 288 |
Property income | 13 | 81,141 | 79,957 |
Other revenues | 14 | 2,216 | 20,635 |
Net gain from changes in value of non-current assets | 26 | – | 2,442 |
Net gain from disposal of non-current assets | 15 | 400 | 250 |
Total other income | 95,137 | 113,773 | |
Net gain from transferred functions | – | 325 | |
Total income | 120,697 | 152,193 | |
Expenses |
|||
Employee benefits expenses | 7 | 15,780 | 31,675 |
Operating expenditure | 16 | 49,939 | 50,550 |
Bad and doubtful debts expense | 22 | 600 | 325 |
Borrowing costs | 17 | 40,683 | 39,754 |
Depreciation and amortisation | 25 | 518 | 495 |
Net loss from changes in value of non-current assets | 26 | 219,500 | – |
Total expenses | 327,020 | 122,799 | |
Profit/Loss before income tax equivalent | (206,323) | 29,394 | |
Income tax equivalent | 19 | – | 8,819 |
Profit/Loss after income tax equivalent | (206,323) | 20,575 | |
Total comprehensive result | (206,323) | 20,575 |
The Profit/Loss After Income Tax Equivalent and Total Comprehensive Result are attributable to the SA Government as owner.
The above statement should be read in conjunction with the accompanying notes.
As at 30 June 2019
Note no. |
2019 $’000 |
2018 $’000 |
|
---|---|---|---|
Current assets |
|||
Cash and cash equivalents | 21 | 21,083 | 42,050 |
Receivables | 22 | 5,698 | 4,033 |
Inventories | 23 | 68,402 | 73,837 |
Investment in joint ventures | 10 | 3,345 | 2,736 |
Total current assets | 98,528 | 122,656 | |
Non-current assets |
|||
Receivables | 22 | 8,615 | 6,720 |
Inventories | 23 | 178,920 | 241,230 |
Investment properties | 24 | 706,530 | 716,160 |
Property, plant and equipment | 25 | 1,832 | 1,874 |
Investment in joint ventures | 10 | 716 | 159 |
Total non-current assets | 896,613 | 966,143 | |
Total assets | 995,141 | 1,088,799 | |
Current liabilities |
|||
Payables | 28 | 21,702 | 21,375 |
Unearned income | 30 | 3,554 | 6,287 |
Borrowings | 29 | 270,552 | 174,218 |
Provisions | 31 | 101,300 | 5,784 |
Employee benefits | 8 | 2,247 | 4,143 |
Other liabilities | 32 | 152 | 458 |
Total current liabilities |
399,507 | 212,265 | |
Non-current liabilities |
|||
Payables | 28 | 7,455 | 7,872 |
Unearned income | 30 | 15,313 | 15,530 |
Borrowings | 29 | 633,150 | 720,102 |
Provisions | 31 | 37 | 23 |
Employee benefits | 8 | 3,627 | 6,701 |
Total non-current liabilities | 659,582 | 750,228 | |
Total liabilities |
1,059,089 | 962,493 | |
Net assets | (63,948) | 126,306 | |
Equity |
|||
Contributed capital | 381,857 | 356,857 | |
Retained earnings | (445,805) | (230,551) | |
Total equity |
(63,948) | 126,306 |
The total equity is attributable to the SA Government as owner.
The above statement should be read in conjunction with the accompanying notes.
For the year ended 30 June 2019
Note no. |
Contributed capital $’000 |
Retained earnings $’000 |
Total $’000 |
|
---|---|---|---|---|
Balance at 30 June 2017 | 356,857 | (241,976) | 114,881 | |
Total comprehensive result for 2017-18 | – | 20,575 | 20,575 | |
Transactions with the SA Government in their capacity as owners: | ||||
|
20 | – | (9,150) | (9,150) |
Balance as at 30 June 2018 |
356,857 | (230,551) | 126,306 | |
Total comprehensive result for 2018-19 | – | (206,323) | (206,323) | |
Adjustment on adoption of new accounting standards | 34 | – | (1,798) | (1,798) |
Transactions with the SA Government in their capacity as owners: | ||||
|
25,000 | – | 25,000 | |
|
3 | – | 3,812 | 3,812 |
|
20 | – | (10,945) | (10,945) |
Balance as at 30 June 2018 |
381,857 | (445,805) | (63,948) |
All changes in equity are attributable to the SA Government as owner.
The above statement should be read in conjunction with the accompanying notes.
For the year ended 30 June 2019
Note no. |
2019 $’000 |
2018 $’000 |
|
---|---|---|---|
Cash flows from operating activities |
|||
Cash inflows | |||
Receipts from sales | 67,452 | 96,766 | |
Receipts from SA Government | 26,301 | 28,045 | |
Interest received | 495 | 286 | |
Receipts from tenants (rent and recoveries) | 80,088 | 102,160 | |
Recoveries and sundry receipts | 4,638 | 22,217 | |
Funds held in trust | – | 4 | |
Receipts for paid parental leave scheme | 33 | 43 | |
Cash generated from operations |
179,008 | 249,521 | |
Cash outflows | |||
Payments for land purchase and development | (104,168) | (49792) | |
Income tax equivalent paid | (4,519) | (4,300) | |
Land tax paid | (21,955) | (20,955) | |
Interest paid | (41,044) | (41,181) | |
Payments to suppliers | (26,835) | (36,399) | |
Payments for employee benefits payments | (22,099) | (33,826) | |
Payments of funds held in trust | (306) | – | |
Payments for paid parental leave scheme | (23) | (46) | |
GST paid to the ATO | (4,787) | (9,052) | |
Cash used in operations |
(225,736) | (195,551) | |
Net cash provided by/(used in) operating activities | 33 | (46,728) | 53,970 |
Cash flows from investing activities |
|||
Cash inflows | |||
Distributions of profit by joint ventures | 1,000 | 875 | |
Proceeds from the sale of investment properties | 1,800 | 2,100 | |
Cash generated from investing activities | 2,800 | 2,975 | |
Cash outflows | |||
Purchase of plant and equipment | (476) | (308) | |
Cash used in investing activities | (476) | (308) | |
Net cash provided by/(used in) investing activities | 2,324 | 2,667 | |
Cash flows from financing activities |
|||
Cash inflows | |||
Equity contributions received from SA Government | 25,000 | – | |
Proceeds from borrowings | 183,600 | 144,700 | |
Cash generated from financing activities | 208,600 | 144,700 | |
Cash outflows | |||
Repayment of borrowings | (174,218) | (161,281) | |
Dividends paid to SA Government | (10,945) | (9,150) | |
Cash used in financing activities | (185,163) | (170,431) | |
Net cash provided by/(used in) financing activities | 23,437 | (25,731) | |
Net increase/(decrease) in cash held |
(20,967) | 30,906 | |
Cash at the beginning of the financial year |
42,050 | 11,144 | |
Cash at the end of the financial year |
21 | 21,083 | 42,050 |
The above statement should be read in conjunction with the accompanying notes.
We certify that the attached general purpose financial statements for the Urban Renewal Authority (trading as Renewal SA):
Internal controls employed by the Urban Renewal Authority for the financial year over its financial reporting and its preparation of the general purpose financial statements have been effective throughout the financial year and there are reasonable grounds to believe the Urban Renewal Authority will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Urban Renewal Authority Audit and Risk Committee.
(signed) M Devine A/Chief Executive 10 September 2019 |
(signed) D De Luca General Manager 10 September 2019 |
(signed) C Tragakis Presiding Member 10 September 2019 |
To the Presiding Member
Urban Renewal Authority
As required by section 31(1)(b) of the Public Finance and Audit Act 1987 and section 27(4) of the Urban Renewal Act 1995, I have audited the financial report of the Urban Renewal Authority for the financial year ended 30 June 2019.
In my opinion, the accompanying financial report gives a true and fair view of the financial position of the Urban Renewal Authority as at 30 June 2019, its financial performance and its cash flows for the year then ended in accordance with the Treasurer’s instructions issued under the provisions of the Public Finance and Audit Act 1987 and Australian Accounting Standards.
The financial report comprises:
I conducted the audit in accordance with the Public Finance and Audit Act 1987 and Australian Auditing Standards. My responsibilities under those standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Financial Report’ section of my report.
I am independent of the Urban Renewal Authority. The Public Finance and Audit Act 1987 establishes the independence of the Auditor-General. In conducting the audit, the relevant ethical requirements of APES 110 Code of Ethics for Professional Accountants have been met.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my opinion.
The Chief Executive is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Treasurer’s instructions issued under the provisions of the Public Finance and Audit Act 1987 and Australian Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of the financial report that gives a true and fair view and that is free from material misstatement, whether due to fraud or error.
The members of the Board are responsible for overseeing the entity’s financial reporting process.
My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit.
My report refers only to the financial report described above and does not provide assurances over integrity of electronic publication by the entity on any website nor does it provide an opinion on other information which may have been hyperlinked to/from the report.
I communicate with the Chief Executive and members of the Board regarding, among other matters, the planned scope and timing of the audits and significant audit findings, including any significant deficiencies in internal control that I identify during the audit.
(signed)
Andrew Richardson
Auditor-General
17 September 2019