Annual Report 2019–20

This annual report will 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:

Chris Menz
Chief Executive of Renewal SA

From the Chief ExecutiveAbout the agencyAgency performanceFinancial performanceRisk managementPublic complaintsFinancial statements

From the Chief Executive

About the agency

Our strategic focus (2019–20 financial year)

Legislation administered by the agency

Agency performance

'Growth State: Our Plan for Prosperity' is the government’s economic plan for the state.

Agency contribution to whole-of-government objectives

Renewal SA is aligned to, and supports, the Government of South Australia’s Growth State agenda which aims to stimulate the economy and population of the state.

The state government is delivering long-term benefits for the state by investing in projects that drive economic activity and growth, boost productivity and enhance liveability and land values.

Renewal SA plays a leading role by providing strategic opportunities for industrial and commercial development on designated employment lands to support social and economic growth and job creation.

Through our pipeline of development projects, partnerships with the private sector, and by supporting innovation in key industry sectors such as defence, space, energy and hi-tech, Renewal SA is attracting local, national and international investment and contributing to the growth of South Australia.

Renewal SA is guided by the government’s 30-Year Plan for Greater Adelaide and has a role to play in delivering:

  • The 20-Year State Infrastructure Strategy, which sets the long-term direction and priorities for infrastructure development in South Australia; and
  • the Our Housing Future 2020-2030 strategy which is delivering a better housing future by coordinating activity and opportunities across the housing sector to deliver 20,000 housing outcomes by 2030.

Performance at a glance: project highlights for 2019–20 financial year

Renewal SA’s projects span the Greater Adelaide region, and include residential, commercial, industrial and mixed-use developments. Together with the critical contribution of the development industry, community and government partners, Renewal SA is delivering these projects for all South Australians.

Lot Fourteen

Renewal SA is working closely with the Department of Premier and Cabinet and the State Government as the commercial advisor and master developer of Lot Fourteen, to create an innovation precinct that leverages South Australia’s abilities in space, defence, hi-tech and creative industries. Lot Fourteen is accelerating global interaction and investment, creating high-value jobs and driving economic growth and future prosperity for South Australia. Led by Premier Steven Marshall through the Department of Premier and Cabinet State Project Lead, Renewal SA has delivered substantial development progress at Lot Fourteen.

During the 2019-20 financial year, Renewal SA completed an $80 million capital works program. This included the North Terrace public realm upgrade works; significant adaptive re-use of 16,000m2 of lettable space across six heritage buildings, and major demolition and infrastructure projects as key enabling works to allow new development to commence.

Lot Fourteen welcomed new tenants to the site including the 140 work-space Stone & Chalk start-up hub, the Australian Space Agency and SmartSat Cooperative Research Centre, University of Adelaide Australian Institute for Machine Learning, MIT bigdata Living Lab and the Australian Cyber Collaboration Centre.

Lot Fourteen became the first registered WELL Community pilot project in the southern hemisphere focused on the health and wellbeing of tenants and visitors and has achieved a 6-Star Green Star rating for Communities Design and Heritage Buildings.

Tonsley Innovation District

Over 1,700 people are now employed at the Tonsley Innovation District, which is 70% more than when Mitsubishi announced their closure in 2008. There are now over 35 businesses established on the site, 290 co-working members, and 8,000 students studying at Tonsley each year.

During the 2019-20 financial year, construction commenced on Autism SA’s head office as well as on the Australian Gas Infrastructure Group’s Hydrogen Park SA (HyP SA), Australia’s first hydrogen production and distribution facility. Mobile x-ray imaging company Micro-X, Flinders University and Rockwell Automation have now established operations in the Main Assembly Building (MAB).

One of Australia’s largest rooftop solar arrays, the Tonsley District Energy and Recycled Water Scheme, reached a major milestone with the completion of the solar PV installation on the roof of the MAB. Over 7,000 solar panels are now generating around 2.4 MW on site to deliver clean, competitively priced energy to Tonsley’s tenants and residents via smart renewable technology.

Residents have begun moving into terrace homes and apartments at Peet’s residential development, Tonsley Village. A total of 34 homes have been handed over while 48 are under construction in addition to two apartment buildings.  These are helping to realise the vision for Tonsley Innovation District as a vibrant, mixed-use precinct.

Port Adelaide

The focus for the 2019-20 financial year has been the successful management of multiple developers delivering the construction of residential and commercial developments around the Port Adelaide Inner Harbour. These ventures will result in 1,150 homes, 2,000 people living and recreating, and 1,000 new workers in the port in addition to the hundreds of construction jobs.

Fletcher’s Slip, an 8-year project by Cedar Woods, which will deliver 500 dwellings, commenced in earnest with demolition and ground remediation nearing completion across half of their total development area. Dock One, an 8-year 650 dwelling project by Starfish Developments, commenced construction following the settlement of Stage 1 in July 2019, with the first residents moving in during August 2020.

A preferred proponent has been secured for the development of the former Incitec Pivot Site at Port Approach North into a mixed use commercial and light industrial precinct following an Expression of Interest process.

In November 2019, the City of Adelaide Clipper Ship and barge were successfully relocated from Dock One to Dock Two, the first step in establishing a maritime heritage tourism precinct at Dock Two and enabling the development of Dock One by Starfish Developments.

Other development commencements of note during the 2019-20 financial year period include the commencement of the Colac Hotel redevelopment on St Vincent Street by Dominion Homes, The Globe Hotel redevelopment on St Vincent Street by the Ginos Group, Hexagon townhouse development on Divett Street, and the completion of Stage 1 of the Port Adelaide Plaza redevelopment by the Precision Group. The 2019-20 financial year also saw the commencement of fit-out works at the former TAFE SA Port Adelaide Campus building on Mundy Street for 250 employees of the Naval Group. Development approvals of note for the same period include the 180-room Rydges on McLaren Parade and the reuse of the 7-storey former Department of Marine and Harbours Building on St Vincent Street into a hotel by Starfish Developments, which are all strong indicators of positive growth and renewal of the Port.

Festival Plaza

The Festival Plaza Redevelopment consists of three separate major capital projects being undertaken in and around the site of the former Hajek Plaza:

  • upgrades to the Festival Plaza Public Realm and the Adelaide Festival Centre’s façade and lobbies
  • Walker Corporation’s integrated car park, office accommodation and retail building development
  • SkyCity’s new six-star hotel and upgrade of its premises within the Adelaide Railway Station building.

Renewal SA continues to work closely in partnership with the Department for Infrastructure and Transport, Walker Corporation, SkyCity Casino and the Adelaide Festival Centre to deliver a unique, world-class hub for the arts, culture, tourism, entertainment and commercial sectors.

During the 2019-20 financial year, revised designs for the Festival Plaza Public Realm received all required endorsements, statutory approvals and funding, enabling construction of the first stages to commence in June 2020. As part of the Festival Plaza Public Realm works, Renewal SA commissioned a significant public artwork to be installed in the ceiling of the new Station Entry which will connect the Adelaide Railway Station to the Riverbank Footbridge.

Substantial progress was made by SkyCity Casino on construction of its new building and redevelopment of existing premises. Separately, Walker Corporation completed demolition, excavation and piling works enabling construction works to commence on the delivery of a 5-level car park with 1560 spaces, which is the first element of its integrated development.

 

Adelaide Railway Station

Work commenced in April 2020 on the comprehensive restoration of the western façade of the Adelaide Railway Station building, including the large arched windows. These works will protect the structural integrity of this State heritage-listed building.

The transformation of the retail offering within the Adelaide Railway Station made significant progress with the opening of SkyCity’s new $6 million bar and dining venue, The Guardsman, and the opening of new small retailers within the public concourse and access ramp.

Agreements have been established with the Department of Infrastructure and Transport and SkyCity Casino to effect the creation of 700 square metres of new retail tenancy spaces within the station’s public concourse.

This last year also saw design, planning and procurement activity for a program of works in and around the Adelaide Railway Station, which will uplift the heritage features of the building and complement the new and improved retail offering. This program of works, to be delivered between October 2020 and June 2022, will include upgrades to the North Terrace shop-front and public realm, restoration works within the heritage ramp and public concourse, and the installation of internal and external architectural lighting.

Adelaide Riverbank

Working in partnership with the City of Adelaide and the State Planning Commission, Renewal SA is leading the delivery of a new Precinct Plan for the Adelaide Riverbank on behalf of the Capital City Committee. The Precinct Plan will:

  • document development to date within the precinct
  • articulate a vision, purpose and identity for the precinct that is shared across local and state government
  • establish a shared framework for future development within the precinct
  • identify and prioritise development and investment opportunities.

Renewal SA continues to support the Riverbank Entertainment Precinct Advisory Committee in the coordination of development, activation and marketing of the precinct.

Commercial and Industrial Land

Renewal SA provides opportunities for industrial and commercial development on designated employment lands to support South Australia’s economic and employment growth.

Significant landholdings at Osborne and Edinburgh Parks support the growth of South Australia’s defence sector and we continue to work closely with the Commonwealth Department of Defence to ensure the requirements of the Navy, Army and Air Force can be accommodated in these locations. During the 2019-20 financial year, we completed the Northern LeFevre Peninsula Master Plan, which provides a long-term vision for a naval industry hub at Osborne with facilities and services required to support expansions of defence and port-related industries, and the resulting workforce.

Over the last three years, Renewal SA has transferred 29.61 hectares of land to facilitate the expanded Osborne Naval Shipyard and sold or leased a further 7.525 hectares to defence-related businesses to support the shipyard construction and operations.  During the 2019-20 financial year, the Osborne Naval Shipyard (including land sold/leased by Renewal SA) has seen significant construction activity, and it is expected that ongoing development of this land will lead to over 1,100 jobs in the precinct.

Grand Trunkway Estate offers potential purchasers master-planned industrial allotments at the western edge of the Northern Economic Corridor. Following solid interest during the 2019-20 financial year, which included the sale of an additional allotment (generating revenue of $1.15 million) and construction commencing on a previously sold allotment within the estate, Renewal SA has completed further work to release an additional 3 allotments to the market.

Strategically-located commercial and industrial land continues to sell at Technology Park. Highlights this year include the sale of 3.8 hectares to Commercial & General to accommodate a new Raytheon development.  Pelligra Group also purchased 6.6 hectares at Edinburgh Parks to accommodate the Auscold Logistics development.

Other activities

Environmental Services

The Environmental Services Group are a team of highly skilled experts who provide guidance and direction on all environmental matters associated with acquisition, development, management and divestment of land to all divisions of Renewal SA and other government agencies.

This year, the team has successfully negotiated the remediation strategy and associated costs for the SAHMRI2 development on behalf of Department for Treasury and Finance, which saved the government a significant amount of money in remediation costs.

The team actively works on the Tonsley, Port Adelaide and Bowden projects and leads the way in ensuring that these contaminated sites are assessed and remediated allowing development to occur in a sustainable and pragmatic way.

Renewal SA’s soil recycling facility at Port Adelaide has experienced an increase in demand for the disposal of soil, due to securing the contaminated soil from the SAHMRI2 project and is undergoing an expansion to manage a larger volume of soil. In the 2019-20 financial year, work began on the construction of two additional structures for the storage of low-level contaminated soil.

Works Program

The Renewal SA Works Program delivers economic outcomes through employment and work experience opportunities in Renewal SA-managed contracts, engagement, training and employment programs in partnership with registered training organisations, and by building capacity in organisations and within communities.

Through the inclusion of economic development clauses (EDCs) in Renewal SA contracts, Renewal SA’s contractors provided 40 work experience placements and 11 paid employment positions in the 2019-20 financial year.

In addition to delivering opportunities through live training site and pre-employment programs, there has been greater capacity to engage new groups in learning, such as through our Children’s University sponsorship, Tonsley school holiday workshops and STEM Works @Tonsley tours.

Overall, in the 2019-20 financial year, the Works Program provided 387 people with pathways to employment through education, training, engagement and work experience, across all Renewal SA projects: Playford Alive, Bowden, the Square at Woodville West, Our Port, Lot Fourteen and Tonsley Innovation District.

Planning & Design

The Planning and Design team plays an important role in contributing to the pipeline of development opportunities that enable growth and attract additional investment for the state. During the 2019-20 financial year, the Oakden/Gilles Plains Structure Plan, Stakeholder Consultation Report and Draft Development Plan Amendment were completed; at Aldinga, the Draft Structure Plan was completed and land was sold to facilitate the delivery of the R-12 School; and the Draft Development Plan Amendment for the New Castalloy site was prepared.

The team provides support and advice across all Renewal SA projects. Their expertise is recognised and valued across government and staff were consulted on the development of various local and state government development strategies and projects. Support and advocacy were provided throughout the 2019-20 financial year through membership on steering and reference groups on key projects across government.

Preparation of the Development Plan Amendment and coordination of concepts for staged public realm delivery at Lot Fourteen, and initial scoping studies for the Entrepreneur and Innovation Centre and International Centre for Food, Hospitality and Tourism Studies were delivered.  Preparation of stage plans, product development and project reviews were also undertaken at Bowden and Woodville West.

Reconciliation Action Plan

Renewal SA readily recognises and accepts the opportunity and responsibility to be part of Reconciliation process. As the South Australian Government’s urban authority, Renewal SA has the capacity to take meaningful steps across our range of projects, programs and other activities to enhance how we respectfully acknowledge and engage with our key Aboriginal and Torres Strait Islander partners and stakeholders.  In the 2019-20 financial year Renewal SA established a Reconciliation Action Plan Steering Committee and launched the agency’s first Reconciliation Action Plan.

Corporate performance

The following sections provide a summary of Renewal SA’s operational performance in regards to employment opportunity programs; performance management and
development systems; work health, safety and return-to-work programs.

Organisational review and restructure

During 2019-20 financial year, Renewal SA undertook a review of the organisational structure to ensure that we have the right functions and capability to lead, support and drive investment and growth through property and projects. A proposed restructure was announced in June 2020 and was confirmed in July 2020.

Renewal SA is now structured around three divisions – Corporate Services, Major Projects and Pipeline, and Projects Delivery and Projects. These divisions are supported by Office for the Chief Executive; People and Culture; and Strategy, Marketing and Communications.

Awards

In August 2019, the master plan and protocols for the development of Lot Fourteen’s public realm won an Award of Excellence in the annual Australian Institute of Landscape Architects Awards for South Australia.

In November 2019, Tonsley Innovation District won the top prize for the Commercial Landscape ($500,000-$1,000,000) category in the Master Landscapers of South Australia Awards for the Lounge Forest, its latest landscaped outdoor area built by LCS Landscapes.

Operational Performance

The following sections provide a summary of Renewal SA’s operational performance in regard to performance management and development systems, work health and safety and return to work programs.

Work health, safety and return to work programs

Program name Performance
Work Health and Safety Program Renewal SA follows a risk management approach to its safety program, with extensive consultation through employee and management representation on our WHS committee.
Wellness Program Renewal SA offers a holistic wellness program, focusing on health, mental health and the prevention of violence.

In relation to health and mental health, we adopt a preventative approach, with offerings such as skin screenings, influenza vaccinations, and the promotion of physical activities through programs like the Corporate Cup.

To promote workplace mental health, we maintain a fully trained complement of Mental Health First Aiders.

Teamgage, an employee engagement tool, was also introduced this financial year. Feedback on workplace safety, health and wellbeing is sought through this tool.

As a White Ribbon accredited workplace, Renewal SA stands firm against domestic violence, gender-based violence and inequality.

As a result of the COVID-19 pandemic, we have introduced measures across our agency to safeguard our staff. We have introduced a Preparedness Coordinating Committee to oversee our COVID-19 response.

Return to Work Program We provide care and support for both compensable injuries and non-compensable injuries. We proactively liaise with our Return to Work Service Provider and consistently maintain a 100%  performance rating for ensuring all Return to Work claims are assessed within two business days of the date the employer was notified of the injury and that a determination on a Return to Work claim is made within ten business days.

Workplace injury claims Current year 2019-20 Past year 2018-19 % change (+/-)
Total new workplace injury claims 1 2 -50%
Fatalities 0 0 0%
Seriously injured workers* 0 0 0%
Significant injuries (where lost time exceeds a working week, expressed as frequency rate per 1000 FTE) 0 3.33 -100%

*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5)

Work health and safety regulations Current year 2019-20 Past year 2018-19 % 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** Current year 2019-20 Past year 2018-19 % change (+/-)
Total gross workers compensation expenditure ($) $841 $41,408 -95%
Income support payments (gross) ($) 0 $20,104 -100%

**Before third party recovery.

Data for previous years is available at: https://data.sa.gov.au/data/dataset/renewal-sa-work-health-and-safety-and-return-to-work-performance

Executive employment in the agency

Executive classification Number of executives
Chief Executive 1
Executives* 18

*In accordance with the workforce information data definition Office of the Commissioner for Public Sector Employment, an Executive is an employee who receives:

  • A total salary equivalent to $121,224 per annum or more; or
  • Receives a Total Remuneration Package Value type contract equivalent to $151,645 per annum or more; and
  • Has professional or managerial ‘executive’ responsibilities

Four of the Executives reported above are in the Executive team supporting the Chief Executive. The remainder of the Executives reported are high level senior professionals that are responsible for the delivery of key outcomes e.g. project directors, or leaders of functional business units.

The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.

Financial performance

Financial performance at a glance

The reported Comprehensive Result is a loss of $112.3 million, which is an improvement of $94 million on the previous financial year. The comprehensive result has been materially impacted by valuation adjustments and one-off transactions with government which together total $112.2 million. The ‘ordinary’ result excluding valuation adjustments, and extraordinary transactions is a small loss of $83,000, which is better than budget for ordinary activities by approximately $2 million.

The reported Comprehensive Result was impacted by the following one-off items:

  • A portfolio of properties was transferred to TAFE SA during the year, for their book carrying value of $601 million. The proceeds from the transfer were applied to reduce borrowings, including the novation of $400 million of fixed interest loans to the Treasurer. These loans were revalued to reflect their market value, immediately prior to their transfer to the Treasurer, resulting in a reported cost for Renewal SA of $68.8 million.
  • A payment of $6.7 million was made to the then Department for Planning, Transport and Infrastructure (DPTI) as reimbursement for costs incurred as part of the Festival Plaza redevelopment.
  • Net asset valuation adjustments of $36.8 million were reported in the financial year. The most significant adjustment related to the Adelaide Railway Station, that value of which was reduced by $27.5 million as a result of the formalisation of rent-free arrangements for the space occupied by DPTI.

The Statement of Financial Position shows a Net Asset and Total Equity of negative $50.7 million as at 30 June 2020. This is an improvement of $13.2 million on the previous financial year. The negative net asset position results primarily from the Government’s decision, in the previous financial year, to provide contributions to the capital cost of Renewal SA’s development projects as equity rather than grant funding. A going concern issue does not exist given that Renewal SA’s forecast cash flows are positive moving forward, with gearing expected to reduce each year over the forward estimates.

It should 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 2020 are attached to this report.

Statement of comprehensive income
2019-20 actual $000s
2018-19 actual $000s
Revenue from sales
$62,567
$66,755
Less: cost of sales
($36,489)
($41,195)
Gross profit on sales
$26,078
$25,560
Other income
$55,070
$95,137
Operating expenses
($60,651)
($66,837)
Borrowing costs (excluding early termination costs)
($20,580)
($40,683)
Underlying operating result
($83)
$13,177
Net gain/(loss) from changes in asset values
($36,761)
($219,500)
Revaluation loss from early termination of loans
($68,776)
-
Payment to DPTI towards Festival Plaza costs
($6,695)
-
Comprehensive Result
($112,315)
($206,323)
Statement of financial position
2019-20 Actual $000s
2018-19 Actual $000s
Current assets
$94,264
$98,528
Non-current assets
$269,175
$896,613
Total assets
$363,437
$995,141
Current liabilities
$300,766
$399,507
Non-current liabilities
$113,352
$659,582
Total liabilities
$414,118
$1,059,089
Net assets
($50,681)
($63,948)
Equity
($50,681)
($63,948)

Consultants disclosure

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 Purpose Actual Payment ($)
30 consultants engaged Various 109,124

 

Consultancies with a contract value above $10,000 each

Consultancies Purpose Actual Payment ($)
AECOM Australia Pty Ltd Environmental due diligence 33,719
Baukultur Pty Ltd Lot Fourteen – Entrepreneur & Innovation Centre Reference Scheme 137,000
D Squared Consulting Pty Ltd Women’s Health Centre Building Green Star Rating 13,040
Deloitte Access Economics Lot Fourteen – Economic Development Strategy 94,094
Doug and Wolf Lot Fourteen – Innovation Centre Architectural Visualisation 11,400
Flightpath Architects Pty Ltd Adelaide Railway Station – Heritage Advice and Heritage Impact Statements 28,224
Fyfe Pty Ltd Aldinga Structure Plan 63,083
Guildhouse Incorporated Lot Fourteen – Public Art and Culture Strategy 11,015
Hannan Duck & Partners Renewal SA – Strategic Plan 2019-2022 19,000
Holmes Dyer New Castalloy – Development Plan 37,000
Integrated Heritage Services Aldinga Cultural Heritage Survey 18,661
John Wardle Architects Lot Fourteen – Innovation Centre – Scoping Study, Brief and Preliminary Concept 462,500
MacroPlan Holdings Pty Ltd Lot Fourteen – Retail Market Assessment 10,500
Mott MacDonald Project Management Support – Women’s Health Centre Refurbishment 33,156
Point of View Design Pty Ltd Adelaide Railway Station – Lighting Design 43,078
Price Waterhouse Coopers Accounting Advice – Lease Accounting 18,360
Right Angle Studio Lot Fourteen – Place Vision and Strategy 55,728
Right Angle Studio Lot Fourteen – Retail Vision and Strategy 41,199
Senversa Pty Ltd Soil Assessment 44,222
The Buchan Group Melbourne Pty Ltd North Terrace Frontage Enhancement Works 135,322
TOTAL
1,310,301

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.

The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.

The website also provides details of across government contracts.

Risk management

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 Finance, Risk and Audit Committee and the Board of Management.

The Urban Renewal Authority Board of Management has an established Finance, Risk and Audit Committee whose principal functions are to:

  • assess the quality of financial reporting and the effectiveness of internal controls
  • oversee the administration of the Risk Management Framework
  • maintain an effective and efficient internal control environment
  • advise the Board on procedures and ways of working within Renewal SA to align these with the organisation’s overall strategic direction
  • oversee financial performance.

The Finance, Risk and Audit Committee comprises members of the Board of Management, supplemented by an independent member.

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 Finance Risk and Committee with all findings reported to the Committee.

Fraud detected in the agency

Nil.

NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

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:

  • Training for all staff in fraud and corruption control is conducted every 3 years;
  • Induction is provided to all new starters and includes information on fraud and corruption as well as obligations for employees;
  • All offers of gifts or benefits (whether or not accepted) are centrally recorded and reported to the Executive and the Finance, Risk and Audit Committee;
  • Employees are required to conduct risk assessments, as appropriate, at an enterprise, program, project, operational and transactional level; and
  • An annual assurance program is undertaken, whereby all Directors and Executives sign statements of compliance regarding fraud and risk management and any breaches are reported to the Finance, Risk and Audit Committee.

Data for previous years is available at: https://data.sa.gov.au/data/dataset/f3ab015c-866c-450b-a74c-e52b2e8a7222

Public complaints

Number of public complaints reported

No categories of complaints were received by, or made against, Renewal SA for the 2019-20 financial year.

The total number of enquiries between 1 July 2019 – 30 June 2020 was 230.  As a result of these enquiries, no specific service improvements were required to be implemented by Renewal SA as part of the result or action as a result of the enquiry.

Further information

For further up-to-date information regarding Renewal SA and its activities, please refer to renewalsa.sa.gov.au

Financial statements

For the year ended 30 June 2020

Statement of comprehensive income

For the year ended 30 June 2020

Note
No.
2020
$’000
2019
$’000

Income

Revenue from sales 9 62,567 66,755
Less: cost of sales 9 36,489 41,195
Gross profit from sales 26,078 25,560
Share of net profit in joint ventures 10 844 2,166
Revenues from SA Government 11 6,267 8,239
Interest revenues 12 711 975
Property income 13 45,493 81,141
Other revenues 14 1,755 2,216
Net gain from disposal of non-current assets 15 400
Total other income 55,070 95,137
Total income 81,148 120,697

Expenses

Employee benefits expenses 7 14,573 15,780
Operating expenditure 16 49,559 49,939
Bad and doubtful debts expense 20 1,311 600
Borrowing costs 17 89,356 40,683
Depreciation and amortisation 23 1,903 518
Net loss from changes in value of non-current assets/provision for development expenditure 24 36,761 219,500
Total expenses 193,463 327,020
Profit/Loss before income tax equivalent (112,315) (206,323)
Total comprehensive result (112,315) (206,323)

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.

Statement of financial position

As at 30 June 2020

Note
no.
2020
$’000
2019
$’000

Current assets

Cash and cash equivalents 19 11,236 21,083
Receivables 20 5,080 5,698
Inventories 21 74,702 68,402
Investment in joint ventures 10 3,246 3,345
Total current assets 94,264 98,528

Non-current assets

Receivables 20 13,142 8,615
Inventories 21 162,002 178,920
Investment properties 22 77,590 706,530
Property, plant and equipment 23 15,780 1,832
Investment in joint ventures 10 659 716
Total non-current assets 269,173 896,613
Total assets 363,437 995,141

Current liabilities

Payables 26 11,667 21,702
Unearned income 28 2,817 3,554
Financial liabilities 27 256,113 270,552
Provisions 29 27,137 101,300
Employee benefits 8 2,880 2,247
Other liabilities 30 152 152
Total current liabilities
300,766 399,507

Non-current liabilities

Payables 26 9,119 7,455
Unearned income 28 14,865 15,313
Financial liabilities 27 86,357 633,150
Provisions 29 48 37
Employee benefits 8 2,963 3,627
Total non-current liabilities 113,352 659,582
Total liabilities
414,118 1,059,089
Net assets (50,681) (63,948)

Equity

Contributed capital 509,188 381,857
Retained earnings (559,869) (445,805)
Total equity
(50,681) (63,948)

The total equity is attributable to the SA Government as owner.

  • Unrecognised contractual commitments: 33
  • Contingent assets and liabilities: 34

The above statement should be read in conjunction with the accompanying notes.

Statement of changes in equity

For the year ended 30 June 2020

Note
no.
Contributed capital
$’000
Retained earnings
$’000
Total
$’000
Balance 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 (1,798) (1,798)
Transactions with the SA Government in their capacity as owners:
  • Equity contribution
25,000 25,000
  • Net assets transferred from administrative restructure
3,812 3,812
  • Dividends paid
18 (10,945) (10,945)
Balance as at 30 June 2019
381,857 (445,805) (63,948)
Total comprehensive result for 2019-20 (112,315) (112,315)
Transactions with the SA Government in their capacity as owners:
  • Equity contribution
127,331 127,331
  • Dividends paid
18 (1,749) (1,749)
Balance as at 30 June 2020
509,188 (559,869) (50,681)

All changes in equity are attributable to the SA Government as owner.

The above statement should be read in conjunction with the accompanying notes.

Statement of cash flows

For the year ended 30 June 2020

Note
no.
2020
$’000
2019
$’000

Cash flows from operating activities

Cash inflows
Receipts from sales 63,876 67,452
Receipts from tenants (rent and recoveries) 44,926 80,088
Receipts from SA Government 6,267 26,301
Interest received 270 495
Recoveries and sundry receipts 806 4,672
Cash generated from operations
116,145 179,008
Cash outflows
Payments for land purchase and development (107,157) (104,168)
Payments in the course of operations for supplies and services (78,148) (71,218)
Interest paid (92,522) (41,044)
Income tax equivalent paid (4,519)
GST paid to the ATO (58,780) (4,787)
Cash used in operations
(336,607) (225,736)
Net cash used in operating activities 31 (220,462) (46,728)

Cash flows from investing activities

Cash inflows
Distributions of profit by joint ventures 1,000 1,000
Proceeds from the sale of investment properties 661,243 1,800
Cash generated from investing activities 661,243 2,800
Cash outflows
Purchase of plant and equipment (175) (476)
Cash used in investing activities (175) (476)
Net cash provided by investing activities 662,068 2,324

Cash flows from financing activities

Cash inflows
Equity contributions received from SA Government 127,331 25,000
Proceeds from borrowings 226,152 183,600
Cash generated from financing activities 353,483 208,600
Cash outflows
Repayment of borrowings (803,187) (174,218)
Dividends paid to SA Government (1,749) (10,945)
Cash used in financing activities (804,936) (185,163)
Net cash provided by/(used in) financing activities (451,453) 23,437
Net increase/(decrease) in cash held
(9,847) (20,967)
Cash at the beginning of the financial year
21,083 42,050
Cash at the end of the financial year 19 11,236 21,083

The above statement should be read in conjunction with the accompanying notes.

Certification of the financial statements

We certify that the attached general purpose financial statements for the Urban Renewal Authority (trading as Renewal SA):

  • comply with relevant Treasurer’s instructions issued under Section 41 of the Public Finance and Audit Act 1987, and relevant Australian Accounting Standards;
  • are in accordance with the accounts and records of the Urban Renewal Authority; and
  • present a true and fair view of the financial position of the Urban Renewal Authority as at 30 June 2020 and the results of its operations and cash flows for the financial year.

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)

C. Menz
Chief Executive

16 September 2020

(signed)

D. De Luca
General Manager

16 September 2020

(signed)

C. Tragakis
Presiding Member

16 September 2020

Independent Auditor’s Report

Government of South Australia
Auditor-General’s Department

Level 9, State Administration Centre,
200 Victoria Square, Adelaide  SA 5000

Tel: +618 8226 9640
Fax: +618 8226 9688

ABN 53 327 061 410

audgensa@audit.sa.gov.au
www.audit.sa.gov.au

To the Presiding Member
Urban Renewal Authority

Opinion

I have audited the financial report of Urban Renewal Authority for the financial year ended 30 June 2020.

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 2020, its financial performance and its cash flows for the year then ended in accordance with relevant Treasurer’s Instructions issued under the provisions of the Public Finance and Audit Act 1987 and Australian Accounting Standards.

The financial report comprises:

  • a Statement of Comprehensive Income for the year ended 30 June 2020
  • a Statement of Financial Position as at 30 June 2020
  • a Statement of Changes in Equity for the year ended 30 June 2020
  • a Statement of Cash Flows for the year ended 30 June 2020
  • notes, comprising significant accounting policies and other explanatory information
  • a Certificate from the Presiding Member, the Chief Executive, and the General Manager Corporate Services.

Basis for opinion

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 (including Independence Standards) have been met.

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

Responsibilities of the Chief Executive and the members of the Board for the financial report

The Chief Executive is responsible for the preparation of the financial report that gives a true and fair view in accordance with relevant 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.

Auditor’s responsibilities for the audit of the financial report

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 Urban Renewal Authority for the financial year ended 30 June 2020.

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. I also:

  • identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate  to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
  • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Urban Renewal Authority’s internal control
  • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Chief Executive
  • evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

My report refers only to the financial report described above and does not provide assurance over the 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 about, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during the audit.

 

(signed)

Andrew Richardson
Auditor-General

22 September 2020

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