Annual Report 2021–22
This annual report will be presented to Parliament to meet the statutory reporting requirements of the Urban Renewal Act 1995, Public Sector Act 2009 and the requirements of Premier and Cabinet Circular 013 – Annual Reporting Requirements.
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:
Stephen Hains
Presiding Member, Urban Renewal Authority Board of Management
From the Chief Executive
This year we made significant strides towards the second-year goals in our Strategic Plan (2020-23). Renewal SA continued demonstrating our value as the South Australian Government’s property development arm.
Through the year, our Strategic Plan (2020-23) continued to be our blueprint for driving economic growth through our people, our pipeline of development opportunities, our partnerships across government and the private sector, and our active renewal projects.
Our efforts remain focused on quality infill developments; city-shaping projects; greenfield land supply; industrial and commercial land; the provision of support to other government agencies; affordable housing and regional renewal.
In the 2021–22 financial year, Renewal SA’s projects and land sales unlocked an estimated $500 million of private sector capital expenditure and contributed in excess of an estimated $400 million in Gross State Product. Our projects also supported more than 2,500 jobs and more than 300 affordable housing outcomes.
Partnerships continue to be fundamental to our success.
Over the past year, we have entered into multiple agreements with private industry to develop land at Oakden, Forestville, St Clair and Bowden and help grow the supply of affordable housing in liveable neighbourhoods close to services and amenities.
Renewal SA also released several major development opportunities to the private sector, including those at Aldinga (a project that will now proceed with a preserved rail corridor), the former Brompton Gasworks site and Tonsley Innovation District to drive investment in South Australia and create new places and spaces where communities and businesses can thrive.
Through its usual activities, the organisation also sold approximately 22.5 hectares of industrial land in Adelaide’s north and west to support ongoing growth in the defence, food and logistics sectors, cementing our position as one of the state’s largest suppliers of employment land.
Our civic projects – including the heritage restoration of the Adelaide Railway Station and the launch of the reimagined Festival Plaza – have attracted significant attention and helped to enhance the city experience greatly. The new northern entrance to the station, delivered in partnership with the Department for Infrastructure and Transport, won the prestigious 2022 City of Adelaide Prize in June 2022 and Festival Plaza has attracted more than 50,000 visitors since its launch in March 2022.
In addition to the above, we began community engagement on a proposed new residential community in Prospect, sold the final residential allotment at The Square at Woodville West and completed delivery of the Lightsview project. We also commenced works at the Seaton Demonstration Project on behalf of the SA Housing Authority to bring about a reimagined neighbourhood on former Housing Trust land.
Organisation and Leadership
We represent an industry tied to the land and we know that each of our projects is located on land that has been nurtured by First Nations peoples for thousands of years.
It was with enormous pride that we appointed our first Manager of Reconciliation and Cultural Heritage in September 2021 and launched our Innovate Reconciliation Action Plan (RAP). This RAP outlines a series of actions and deliverables that will help us take our commitment to reconciliation from aspiration to reality.
As part of our commitment to growing our people and motivating them to perform at their best, 20% of our workforce attained internal promotions or moved into new roles, enabling career progression and important professional development.
It has certainly been a year of achievement, underpinned by enormous hard work and change.
Throughout the 2021–22 financial year, along with the sectors we represent and partner with, Renewal SA faced considerable challenges and opportunities associated with the growth of industrial sectors, housing affordability, supply chain and cost escalation, growth in regions, and the future growth of our city.
We know that there is much more to do in the urban property landscape, and we remain committed to unlocking more opportunities to drive the state’s prosperity and supporting our industry to address the challenges associated with enabling jobs, housing supply and affordability, and regional growth.
Together with the Minister for Housing and Urban Development, the Hon. Nick Champion, and the Urban Renewal Authority Board, I am proud to present our annual report for the 2021–2022 financial year. We look forward to continuing to improve the lives of all South Australians through property and projects now and into the future.
Chris Menz
Chief Executive
Renewal SA
About the agency
Our strategic focus
As the South Australian Government’s urban development agency, we lead and coordinate development and urban renewal activity to ensure South Australia’s future employment and housing needs are met through well-planned, affordable urban developments.
Our role is to unlock and develop land in strategic locations in partnership with the private sector and other government agencies in order to address the current and future needs of South Australians.
We focus on property development that builds new industries, infrastructure and communities while driving economic activity, attracting investment, and enhancing liveability in South Australia.
Our Purpose and Mission
Renewal SA’s purpose is to improve the lives of South Australians now and into the future by leading, supporting and driving investment and growth through property and projects.
Our Values
Our values are in line with the South Australian public sector values. They guide our behaviours and practices and apply to everyone at Renewal SA, regardless of position, expertise or location.
Renewal SA’s values reflect our commitment to the ever-changing needs of South Australians, and the role of government in helping to foster the State’s prosperity and wellbeing.
Respect – We all have something to offer at Renewal SA, and that means every member of our team is valued and respected
Trust – We’ve got each other’s backs at Renewal SA. We share information and trust our colleagues are making decisions with the best intent and endeavour
Honesty and Integrity – We are all responsible for creating a positive workplace at Renewal SA – every word, action and behaviour matters
Courage and Tenacity – At Renewal SA we understand that a win for one of us is a win for all of us – and that means we never give up
Collaboration and Engagement – At Renewal SA we believe a collaborative approach delivers the best results and that’s why we’re focused on creating solutions together
Service – We come to work at Renewal SA every day to deliver for the people of South Australia. We proudly serve our Government and our community
Professionalism – A culture of excellence means we hold ourselves to the highest standard at Renewal SA and we’re always looking for ways to do things better
Sustainability – South Australians are at the heart of everything we do at Renewal SA and that means all decisions are made in the best interests of both current and future generations.
Our functions, objectives and deliverables
Renewal SA is the South Australian Government’s leading urban development agency. We coordinate, develop and deliver projects and initiatives through our people and collaborative partnerships to benefit all South Australians
Our Strategic Plan (2020-23) aligns our work to four strategic pillars and associated goals:
People – Renewal SA is an inclusive and dynamic working environment that drives high levels of engagement, market-leading capability, and results-driven performance.
Partnerships – Renewal SA’s strong and collaborative partnerships unlock new opportunities and produces exceptional market-leading results for the State.
Pipeline – We are constantly initiating and contributing to a strong pipeline of development opportunities that enable growth and attract additional investment for the State.
Projects – Alongside our partners, Renewal SA leads the market to deliver economic, social and environmental benefits through excellence in project delivery.
The key functions of Renewal SA as outlined in the Urban Renewal Act 1995 are to:
- initiate, undertake, support and promote residential, commercial and industrial development in the public interest
- acquire, assemble and use land and other assets in strategic locations for urban renewal
- promote community understanding of, and support for, urban renewal by working with government agencies, local government, community groups and organisations involved in development
- undertake preliminary works (including the remediation of land) to prepare land for development and other functions such as planning and coordination
- encourage, facilitate and support public and private sector investment and participation in the development of the State
- acquire, hold, manage, lease and dispose of land, improvements in property.
Changes to the agency
During the 2021-22 financial year, Renewal SA introduced the new role of General Manager, Business and Systems Transformation, in response to a pressing internal need to update processes that were no longer fit-for-purpose and assist the organisation to be more agile and equipped to deliver on its ambitions in the Strategic Plan (2020–23).
This role commenced on 22 October 2021 for an initial 18-month period.
Beyond this, there were no further changes to the agency’s structure and objectives as a result of internal reviews or machinery of government changes.
Our Minister
The Urban Renewal Authority, trading as Renewal SA began the 2021-22 financial year within the portfolio responsibilities of the Treasurer, the Hon Rob Lucas MLC’s portfolio. In March 2022, it moved to the Hon Nick Champion MP, Minister for Housing and Urban Development.
Our Executive team
The Chief Executive currently reports to the Minister for Housing and Urban Development and the Urban Renewal Board of Management and oversees the day-to-day operations of our organisation, together with the Executive team.
As at 30 June 2022, Renewal SA’s Executive Team comprised:
- Chris Menz, Chief Executive
- Michael Wood, General Manager, Commercial and Corporate
- Todd Perry, General Manager, Property and Project Delivery
- Tony Cole, General Manager, Major Projects and Pipeline
- Christine Steele, General Manager, Business and Systems Transformation
- Vy Collins, Senior Director, People and Culture.
Braden Naylor, was Acting General Manager, Commercial and Corporate, until February 2022.
Legislation administered by the agency
Key legislation and governance requirements
Pursuant to section 9 of the Urban Renewal Act 1995, the following Ministerial Directions were implemented:
- Aldinga Rail Corridor – Land Preservation
- Lot Fourteen – Project management of the refurbishment of the Eleanor Harrald and Hanson Buildings.
Other related agencies (within the Minister’s area/s of responsibility)
- Department of Trade and Investment
- Planning and Land Use Services.
The agency's performance
Performance at a glance
Throughout the 2021-22 financial year Renewal SA continued to drive long-term economic growth in South Australia through property development and urban renewal projects of scale.
Renewal SA currently manages a portfolio comprising more than 3,358 hectares of land that generates in excess of $140 million of income each financial year for the South Australian Government.
Our major projects include:
- thirteen residential developments, including Bowden, Playford Alive, Tonsley Village, Oakden, Lightsview, Forestville, The Square at Woodville West, Our Port, Prospect, St Clair, Eyre at Penfield, Kent Town and the Seaton Demonstration Project
- three innovation precincts, including Lot Fourteen, Tonsley Innovation District and Technology Park Adelaide
- three civic projects, including Adelaide Railway Station, Festival Plaza and Adelaide Riverbank
- six industrial/employment land projects, including those at Northern Lefevre Peninsula, Edinburgh Parks, Elizabeth South, Gillman, Osborne North and East Grand Trunkway.
Renewal SA manages a total of $105 million in investment property assets and as part of its role, continues to generate further revenue for the state of South Australia by transacting on government land and assets that has been declared surplus by the state. This financial year, surplus land sales managed through Renewal SA equated to $34.6 million in additional revenue.
Our ongoing activities also seek to contribute to providing consistent land supply for residential, industrial and commercial projects, responding to emerging market opportunities and trends as they arise, and delivering major development opportunities for the private sector.
During 2021-22, we undertook the following:
- launched two new Green Star rated townhouse projects at Bowden, including Tapestry at Bowden (5 Star Green Star) and Tribeca Bowden (6 Star Green Star)
- secured a national developer for the construction of 1,500 homes at Oakden
- released 60 hectares of land in Aldinga for the development of a sustainable, master-planned community (now proceeding with a preserved rail corridor)
- finalised the draft master plan for the creation of a new residential development in Prospect
- facilitated increased affordable housing outcomes at the upcoming redevelopment of the Royal Hotel site in Kent Town, in partnership with Flagship Group
- undertook a national process to identify a preferred proponent for the redevelopment of the former Gasworks site at Brompton (part of the Bowden development)
- renegotiated the Festival Plaza project with various partners and launched the largest section of Festival Plaza’s revitalised public realm including commencing a short-term curated activation program of the new public space
- secured a development partner for the transformation of the former Le Cornu site at Forestville into a new community-focused, mixed-use development including delivery of 300 homes
- completed the heritage restoration and uplift of Adelaide Railway Station
- sold the final residential allotment of the 450-home development at The Square at Woodville West
- opened a new display village at Playford Alive showcasing homes from eight builders
- helped drive delivery of Australian Space Park alongside the Department of Trade and Investment
- sold 3.7 hectares in St Clair for the development of high-quality terraces and apartments
- sold approximately 22.5 hectares of industrial land to support ongoing growth in the defence, food and logistics sector
- leased approximately 45 hectares of industrial land to ANI to allow the Australian Government to investigate an expansion of the Osborne Naval Shipyard to accommodate future AUKUS projects, including the potential construction of nuclear-powered submarines
- secured approximately 16 hectares of land, immediately adjacent to RAAF Edinburgh to facilitate delivery of the Deep Maintenance and Modification Facility which will enable the Department of Defence to service aircraft in South Australia
- delivered new infrastructure and public realm to support existing tenants and enable the future delivery of the Entrepreneur and Innovation Centre, Tarrkarri (Centre for First Nations Cultures) and the Digital Technologies Academy.
Agency response to Covid-19
Our response to the COVID-19 pandemic changed rapidly throughout the financial year to support vulnerable people within Renewal SA workplaces and in the South Australian community.
A dedicated Renewal SA COVID-19 Preparedness Co-ordinating Group met regularly to oversee a response to the COVID-19 pandemic and implement workplace controls across Renewal SA workplaces to meet the regularly updated SA Health COVID-19 guidelines and ensure business continuity.
Effective and timely communication with employees was a focus during the regular changes to the SA Health workplace guideline implemented to ensure the safety and wellbeing of employees. This was not limited to physical health and included the mental health and wellbeing of employees. COVID-19 controls were implemented, monitored and enhanced as required.
| Agency COVID-19 statistics | Current year 2021-21 | Past year 2020-21 | % change (+/-) |
|---|---|---|---|
| Staff reports of positive COVID-19 infection | 61 | 0 | +100% |
| Staff reports of Close Contact | 68 | 0 | +100% |
| Potential positive COVID-19 reports due to workplace transmission | 1 | 0 | +100% |
Agency contribution to whole of government objectives
Renewal SA supports the South Australian Government’s vision to make housing more accessible for first time homeowners in South Australia; bolster the trades sector and reverse the state’s labour skills shortage; stimulate jobs and private investment in our state; and secure the long-term liveability and economic prosperity of South Australia.
Agency’s contribution during 2021–22:
- delivered 300+ affordable homes
- generated a pipeline of 820+ future affordable homes to be delivered over the next 5-8 years through our projects
- secured private investment for vibrant new residential developments at Bowden, Oakden and Forestville close to services and amenities
- released major development opportunities to the private sector at Aldinga (now proceeding with a preserved rail corridor) and the former Brompton gasworks site
- supported more than 2,500 FTEs across the construction and related industries
- facilitated 77 accredited training places, 23 traineeships/apprenticeships, 36 work experience placements and six paid employment positions for South Australians across Renewal SA’s flagship projects
- unlocked 22.5 hectares of employment land to support ongoing growth in the defence, food and logistics sectors
- unlocked an estimated $500 million of private sector capital expenditure
- generated an estimated $400 million in Gross State Product
- launched the largest section of Festival Plaza’s revitalised public realm as part of the $1 billion plaza redevelopment project with Walker Corporation and SkyCity Adelaide.
Agency specific objectives and performance
We have continued delivery of our Strategic Plan (2020-23), which guides our focus on driving economic growth in South Australia through property development and urban renewal projects of scale.
Our Strategic Plan (2020-23) is formulated on a foundation of four pillars — people, pipeline, partnerships and projects. These pillars underpin our three-year organisational goals and initiatives, all designed to support ambitious outcomes. They are critical to our success and are the reference points against which we benchmark and measure progress.
During 2021-22, we committed to and invested in a program of work to ensure that our business systems and processes were market leading to enable our people to (a) work more effectively and (b) better respond, more quickly, to the evolving needs of our partners and stakeholders. The Business and Systems Transformation project team has been established to drive this work and is working across the business to deliver significant improvements across the areas of people and organisation, technology and business, policy and processes.
The organisation has also implemented a new governance model to ensure that we have transparency on decision making internally, and structure ourselves to achieve the objectives and goals set out in our Strategic Plan (2020-23). The model supports and enables the successful delivery of our day-to-day work and provides a forum for strategic discussions to inform decision-making, capability building, and business transformation and innovation.
The table below outlines our achievements against our second-year objectives in our Strategic Plan (2020-23).
People
Three-Year Goal
Renewal SA is an inclusive and dynamic working environment that drives high levels of engagement, market-leading capability, and results-driven performance.
| Indicators | Performance |
|---|---|
| Renewal SA and its projects operate incident and injury free, and staff and contractors are engaged with a “safety is how we do business around here” mindset |
|
| Renewal SA has great people in the right positions, at the right time, and creates a positive employee experience so our people are proud to work here and want to stay |
|
| Renewal SA sets clear expectations and engages our people so they are motivated to perform at their best. |
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| Renewal SA enables our people to reach their potential and develops future capabilities for the business. |
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| Renewal SA recruits, retains and develops a diverse workforce that reflects the community that we serve, and embraces, respects and values the differences of our people. |
|
Partnerships
Three-Year Goal
Renewal SA’s strong and collaborative partnerships unlock new opportunities and produces exceptional market-leading results for the State.
| Indicators | Performance |
|---|---|
| Be the government ‘partner of choice’ for the public and private sector on property initiatives and projects. |
|
| Develop a Corporate Communications and Partnerships Plan to consult with community, industry and government, build relationships, drive collaboration and build reputation. |
|
| Develop a corporate brand platform to build trust and understanding. |
|
Pipeline
Three-Year Goal
We are constantly initiating and contributing to a strong pipeline of development opportunities that enable growth and attract additional investment for the State.
| Indicators | Performance |
|---|---|
| Renewal SA uses a structured business planning process that results in a tangible and achievable pipeline of opportunities |
|
| Renewal SA is the peak government agency for property and project delivery |
|
| Renewal SA delivers a pipeline of projects annually that leads the market and increases investment into South Australia and Gross State Product (GSP). |
|
| Project origination comes from across the entire organisation. Staff are engaged and active in the process; ‘pipeline is everyone’s responsibility’. |
|
Projects
Three-Year Goal
Alongside our partners, Renewal SA leads the market to deliver economic, social and environmental benefits through excellence in project delivery.
| Indicators | Performance |
|---|---|
| Renewal SA is a market leader in data analysis enabling the organisation to meet and exceed sales and revenue forecasts |
|
| Projects demonstrate excellence in delivery, management and completion/ handover |
|
| The Our Future Housing Strategy 2020-30 objectives and activities for Renewal SA are incorporated within the relevant projects and developments. |
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| All projects result in job growth. |
|
| Renewal SA leads and delivers on economic recovery initiatives relating to property. |
|
Corporate performance summary
Employment opportunity programs
Diversity and Inclusion
Renewal SA remains committed to fostering a diverse and inclusive workplace that enriches the environment we work in and enhances our ability to deliver great outcomes for South Australia. We support the evolution and advancement of dynamic professionals from diverse heritage.
As at 30 June 2022 our workforce comprised:
- 53.6% females
- 33% females in leadership roles (defined as reporting to the Chief Executive and General Managers)
- 2.9% of the workforce identifying as being Aboriginal or Torres Strait Islander heritage
- 21.4% staff born outside of Australia.
Aboriginal Workforce Participation
In support of Renewal SA’s strategic objective to embed and progress our Reconciliation Action Plan, we appointed our first Manager of Reconciliation and Cultural Heritage in September 2021. This new position has helped us facilitate new pathways to working collaboratively with First Nation stakeholders.
Skilling SA
In July 2021 through to April 2022, Renewal SA hosted a trainee through the Skilling SA Public Sector project. The trainee was appointed as a Project Support Officer within the Renewal SA Works Program team and supported the team with administrative duties whilst studying towards their Certificate III in Business.
The Skilling SA project allowed the trainee to expand their knowledge and develop their expertise in a supportive and development-focused environment, whilst allowing the team to mentor a new employee and build internal capability.
Women in Property program
At Renewal SA, we are committed to providing opportunities for women to thrive in their careers and grow into leadership roles.
We recognise the importance of promoting and encouraging women to pursue a career in the property industry; creating a diverse, inclusive and psychologically safe environment where employees are all treated equally; providing more opportunities for women in senior leadership roles; and supporting and encouraging women to take a step up in their career.
Current initiatives include staff participation in the Property Council of Australia’s 500 Women in Property program and sponsorship of the Girls in Property program. We have recently implemented a leadership development program and are proud to share that 82% of participants are women.
Agency performance management and development systems
The Renewal SA performance and development framework remained a key focus during 2021-22.
A key objective of this framework has included the creation of performance plans for all employees and the alignment of associated development plans to the Strategic Plan (2020-23). This has ensured that all employees have line-of-sight to the strategic objectives of our agency and their contribution to the delivery of these objectives. In turn, this has enhanced employee engagement and accountability across the business.
| Performance management and development system | Performance |
|---|---|
| Performance plans are facilitated and documented through our Performance Development Conversations framework. The formal performance conversation process is biannual. | During the 2021-22 financial year, 100% of our eligible employees had a performance development conversation and a custom performance plan. |
Work health, safety and return to work programs
| Program name | Performance |
|---|---|
| Work Health and Safety framework | Our Work Health and Safety (WHS) framework is based on the Work, Health and Safety Act 2012 (SA) and the international standard for Safety Management systems ISO45001:2018.
In 2021-22 we:
No Return-to-Work Claims were recorded in the 2021-22 financial year across Renewal SA or its work sites. |
| Wellbeing Program | Our Wellbeing Program values the benefits of worker wellbeing and wellness, particularly during the changing working environment throughout the year. We offer holistic worker wellness programs focused on mental health, physical health, fatigue and the financial, emotional and social aspects of worker wellness.
In addition to the mandatory Mental Health First Aid requirements, we maintain a fully trained complement of Mental Health First Aiders in the workplace across Renewal SA work sites. |
| Return to Work Program | Renewal SA is committed to the effective management and care of any injured employees with either a compensable injury or non-compensable injury.
We work closely with our Injury Management and Return to Work service provider to ensure employees receive care and support in their return to the workplace following an injury. We consistently maintain 100% performance ratings for:
Renewal SA has a trained Return to Work Coordinator to coordinate the effective return to work of injured employees. |
| Workplace injury claims | Current year 2021-22 | Past year 2021-21 | % change (+/-) |
|---|---|---|---|
| Total new workplace injury claims | 0 | 1 | -100% |
| 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 | 0 | 0% |
*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 2021-22 | Past year 2021-22 | % 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 2021-22 | Past year 2021-22 | % change (+/-) |
|---|---|---|---|
| Total gross workers compensation expenditure ($) | $0 | $3,944 | -100% |
| Income support payments (gross) ($) | 0 | $0 | 0% |
**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* | 20 |
*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 $123,648 per annum or more; or
- Receives a Total Remuneration Package Value type contract equivalent to $154,678 per annum or more; and
- Has professional or managerial ‘executive’ responsibilities
Five 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 who are responsible for the delivery of key outcomes e.g. project directors or leaders of functional business units.
Data for previous years is available at: https://data.sa.gov.au/data/dataset/executive-employment-rsa
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 Performanance
Financial performance at a glance
The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2021-2022 are attached to this report.
The Comprehensive Result is a profit of $34.9 million, which is an improvement of $41.1 million on the previous financial year. A significant driver of the improved profit position over the prior year was the Oakden sale, which saw $81.1 million of sales and $37.1 million of gross profit being recognised in the current year, due the passing of control from Renewal SA to Villawood.
The Underlying Operating Result is a profit of $39.4 million. This result excludes the impact of one-off valuation adjustments and financing costs resulting from the level of borrowings determined by the South Australian Government for Renewal SA.
The continuation of the buoyant property market has led to strong sales performance for the year, particularly in our residential development projects notably at Playford Alive.
The Statement of Financial Position shows a positive Net Asset and Equity position of $71.0 million, representing a $71.0 million improvement on the minor Net Asset surplus reported for the last financial year. The government provided additional equity contributions during the financial year of $32.5 million, primarily for the Lot Fourteen and Tonsley projects.
It is noted that our 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 and the full audited financial statements for the year ended 30 June 2022 are attached to this report.
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 $10,000 each
| Consultancies | Purpose | Actual Payment ($) |
|---|---|---|
| 31 consultants engaged | Various | 117,743 |
Consultancies with a contract value above $10,000 each
| Consultancies | Purpose | Actual Payment ($) |
|---|---|---|
| Agon Environmental | Stockpile Sampling – Soilbank | 23,580 |
| Capisce QS Pty Ltd | Cost Estimate – Proposed Stress Ribbon Design – Port Adelaide | 12,000 |
| Ernst & Young | Due Diligence – Oakden | 36,000 |
| GPA Engineering Pty Ltd | Engineering Advice – Former Australia Renewable Fuels Infrastructure Site | 13,061 |
| Greencap – NAA Pty Ltd | Environmental Advice – Forestville | 122,770 |
| Greencap – NAA Pty Ltd | Environmental Advice – 63 Conyngham Street | 12,290 |
| Greenhill Engineers | Cost Analysis – Prospect Infrastructure | 11,537 |
| HAYMAKR | Market Research – Sydney and Melbourne First Home Buyers | 16,450 |
| Jodie Murphy | HR Consulting and Advice | 24,000 |
| Jones Lang LaSalle | Industrial Land Strategy | 44,900 |
| KPMG | Leadership Workshop and Strategic Planning | 12,398 |
| M L Smith Consulting | Policy Governance Advice | 28,635 |
| Metric Marketing Pty Ltd | Market Research and Reporting – WCH North Adelaide | 37,424 |
| Price Waterhouse Coopers | Accounting, Tax and Economic Impact Advice | 115,250 |
| Price Waterhouse Coopers | Bowden Economic Assessment | 46,350 |
| Price Waterhouse Coopers | Business Systems and Processes Review and Digital Strategy | 299,763 |
| Robert Bird Group Pty Ltd | Concept Design – Dock One Pedestrian Bridge | 19,326 |
| Stallard Meek – Flightpath | Feasibility – Adelaide Railway Station – Skybridge Removal and Eastern Balcony | 13,320 |
| Swanbury Penglase | Interior Architecture Advice – Adelaide Railway Station | 22,040 |
| Turner & Townsend | Project Management Framework Review | 59,500 |
| TOTAL |
970,594 | |
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 a robust Risk Management Policy and Framework in place 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. It also ensures that risks are identified, assessed and assigned to risk owners with risk treatment and mitigating strategies required.
The Urban Renewal Authority Board of Management has an established Finance, Risk and Audit Committee. The principal functions of this committee 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 committee comprises members of the Board of Management. The committee met on five occasions during 2021-22.
There is also appropriate risk reporting in place to the Executive, the Finance, Risk and Audit Committee and the Board of Management.
The Department of Human Services Internal Audit team provides Renewal SA’s Internal Audit function under a Service Level Agreement. The annual Internal Audit Work Plan is reviewed and approved by the Finance, Risk and Audit Committee, with all findings reported to the committee.
The Auditor General completed their annual audit of Renewal SA’s financial statements and internal controls for 2021/22 and raised no material concerns.
Strategies implemented to control and prevent fraud
Renewal SA’s two fraud policies – namely the Fraud and Corruption Prevention, Detection and Reporting Policy (for staff) and the Fraud and Corruption Prevention, Detection and Reporting Policy (for suppliers) include a range of internal controls to ensure employees, volunteers, agents, contractors, sub-contractors and suppliers of goods and services are aware that 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.
The strategy encompasses:
- training for all staff in fraud and corruption control every three years
- provision of information on fraud and corruption and employee obligations to all new starters
- maintenance of a central record of all offers of gifts or benefits made to staff (whether or not accepted), which are reported to the Executive and the Finance, Risk and Audit Committee
- regular risk assessments undertaken by staff, as appropriate, at an enterprise, program, project, operational and transactional level
- implementation of an annual assurance program, whereby all Directors and Executives provide statements of compliance regarding fraud and risk management, with any breach reported to the Finance, Risk and Audit Committee.
Fraud detected in the agency
There were no actual (or reasonably suspected) incidents of fraud at Renewal SA for the 2021-22 financial year.
Data for previous years is available at: https://data.sa.gov.au/data/dataset/fraud-detected
Public interest disclosure
Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:
0
Data for previous years is available at: https://data.sa.gov.au/data/dataset/whistleblowers-disclosure
Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.
Public complaints
Number of public complaints reported
No specific categories of complaints were received by, or made against, Renewal SA for the 2021-22 financial year.
The total number of enquiries during 2021-22 was 392.
Service Improvements
Renewal SA has considered its processes for receiving and managing enquires and complaints.
Renewal SA is developing a Complaints and Feedback Policy to manage complaints and feedback in a responsive and effective way.
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 2022
Statement of comprehensive income
For the year ended 30 June 2022
| Note No. |
2022 $’000 |
2021 $’000 |
|
|---|---|---|---|
Income |
|||
| Revenue from sales | 4 | 149,020 | 69,115 |
| Less: cost of sales | 4 | 89,683 | 47,545 |
| Gross profit from sales | 59,337 | 21,570 | |
| Share of net profit in joint ventures | 5 | 3,046 | 1,668 |
| Revenues from SA Government | 6 | 7,694 | 6,961 |
| Interest revenues | 7 | 6,877 | 477 |
| Property income | 8 | 25,753 | 22,872 |
| Other revenues | 9 | 4,959 | 2,670 |
| Net gain from changes in value of non-current assets | 23 | 16,016 | 4,063 |
| Net gain from disposal of non-current assets | 10 | – | 1 |
| Total other income | 64,342 | 38,712 | |
| Total income | 123,679 | 60,282 | |
Expenses |
|||
| Employee benefits expenses | 13 | 15,747 | 14,079 |
| Operating expenditure | 15 | 49,769 | 41,015 |
| Bad and doubtful debts expense | 19 | (105) | (137) |
| Borrowing costs | 16 | 5,651 | 8,928 |
| Depreciation and amortisation | 22 | 2,794 | 3,116 |
| Net loss from disposal of non-current assets | 10 | 2 | – |
| Total expenses | 73,858 | 67,001 | |
| Profit/Loss before income tax equivalent | 49,821 | (6,719) | |
| Less: Income tax equivalent | 14,946 | – | |
| Profit/Loss after income tax equivalent | 34,875 | (6,719) | |
| Total comprehensive result | 34,875 | (6,719) | |
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 2022
| Note no. |
2022 $’000 |
2021 $’000 |
|
|---|---|---|---|
Current assets |
|||
| Cash and cash equivalents | 18 | 14,491 | 12,403 |
| Receivables | 19 | 19,500 | 8,879 |
| Inventories | 20 | 108,802 | 65,271 |
| Investment in joint ventures | 5 | 219 | 1,588 |
| Total current assets | 143,012 | 88,141 | |
Non-current assets |
|||
| Receivables | 19 | 83,048 | 13,129 |
| Inventories | 20 | 182,057 | 255,578 |
| Investment properties | 21 | 105,035 | 83,765 |
| Property, plant and equipment | 22 | 17,134 | 12,326 |
| Investment in joint ventures | 5 | – | 485 |
| Total non-current assets | 387,274 | 365,283 | |
| Total assets | 530,286 | 453,424 | |
Current liabilities |
|||
| Payables | 25 | 13,139 | 14,766 |
| Unearned income | 27 | 11,723 | 2,964 |
| Financial liabilities | 26 | 146,266 | 38,681 |
| Provisions | 28 | 16,694 | 26 |
| Employee benefits | 14 | 2,070 | 2,438 |
| Other liabilities | 29 | 746 | 896 |
| Total current liabilities |
190,638 | 59,771 | |
Non-current liabilities |
|||
| Payables | 25 | 163 | 1,967 |
| Unearned income | 27 | 13,569 | 13,576 |
| Financial liabilities | 26 | 252,296 | 375,411 |
| Provisions | 28 | 155 | 65 |
| Employee benefits | 14 | 2,418 | 2,559 |
| Total non-current liabilities | 268,601 | 393,578 | |
| Total liabilities |
459,239 | 453,349 | |
| Net assets | 71,047 | 75 | |
Equity |
|||
| Contributed capital | 608,007 | 567,856 | |
| Retained earnings | (536,960) | (567,781) | |
| Total equity |
71,047 | 75 | |
The total equity is attributable to the SA Government as owner.
- Unrecognised contractual commitments: 31
- Contingent assets and liabilities: 32
The above statement should be read in conjunction with the accompanying notes.
Statement of changes in equity
For the year ended 30 June 2022
| Note no. |
Contributed capital $’000 |
Retained earnings $’000 |
Total $’000 |
|
|---|---|---|---|---|
| Balance at 30 June 2020 | 509,188 | (559,869) | (50,681) | |
| Total comprehensive result for 2020-21 | – | (6,719) | (6,719) | |
| Transactions with the SA Government in their capacity as owners: | ||||
|
58,668 | – | 58,668 | |
|
– | – | – | |
|
17 | – | (1,193) | (1,193) |
| Balance as at 30 June 2021 |
567,856 | (567,781) | 75 | |
| Total comprehensive result for 2021-22 | – | 34,875 | 34,875 | |
| Transactions with the SA Government in their capacity as owners: | ||||
|
40,151 | – | 40,151 | |
|
17 | – | (4,054) | (4,054) |
| Balance as at 30 June 2022 |
608,007 | (536,960) | 71,047 | |
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 2022
| Note no. |
2022 $’000 |
2021 $’000 |
|
|---|---|---|---|
Cash flows from operating activities |
|||
| Cash inflows | |||
| Receipts from sales | 74,046 | 69,878 | |
| Receipts from tenants (rent and recoveries) | 30,136 | 23,986 | |
| Receipts from SA Government | 9,347 | 6,911 | |
| Interest received | – | 10 | |
| Recoveries and sundry receipts | 3,515 | 2,420 | |
| GST recovered from the ATO | 10,238 | 5,678 | |
| Cash generated from operations |
127,283 | 108,883 | |
| Cash outflows | |||
| Payments for land purchase and development | (61,578) | (163,715) | |
| Payments in the course of operations for supplies and services | (69,713) | (64,242) | |
| Interest paid | (5,306) | (9,125) | |
| Cash used in operations | (136,597) | (237,082) | |
| Net cash used in operating activities | 30 | (9,314) | (128,199) |
Cash flows from investing activities |
|||
| Cash inflows | |||
| Distributions of profit by joint ventures | 4,900 | 3,500 | |
| Proceeds from the sale of plant and equipment | – | 1 | |
| Proceeds from the sale of investment properties | 1,400 | 1 | |
| Cash generated from investing activities | 6,300 | 3,501 | |
| Cash outflows | |||
| Purchase of investment property | (9,019) | – | |
| Purchase of property, plant and equipment | (1,976) | (6,610) | |
| Cash used in investing activities | (10,995) | (6,601) | |
| Net cash (Used in)/provided by investing activities | (4,695) | (3,109) | |
Cash flows from financing activities |
|||
| Cash inflows | |||
| Equity contributions received from the SA Government | 40,151 | 58,668 | |
| Proceeds from borrowings | 6,401 | 348,050 | |
| Cash generated from financing activities | 46,552 | 406,718 | |
| Cash outflows | |||
| Repayment of borrowings | (26,401) | (273,050) | |
| Dividends paid to SA Government | (4,054) | (1,193) | |
| Cash used in financing activities | (30,455) | (274,243) | |
| Net cash provided by/(used in) financing activities | 16,097 | 132,475 | |
| Net increase/(decrease) in cash held |
(2,088) | (1,167) | |
| Cash at the beginning of the financial year |
12,403 | 11,236 | |
| Cash at the end of the financial year | 18 | 14,491 | 12,403 |
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 2022 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 13 September 2022 |
(signed)
M. Wood 13 September 2022 |
(signed)
S. Hains 13 September 2021 |
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 2022.
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 2022, 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 2022
- a Statement of Financial Position as at 30 June 2022
- a Statement of Changes in Equity for the year ended 30 June 2022
- a Statement of Cash Flows for the year ended 30 June 2022
- 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 2022.
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
- conclude on the appropriateness of the Chief Executive’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify the opinion. My conclusion is based on the audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause an entity to cease to continue as a going concern
- 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
16 September 2022