This annual report will be presented to parliament to meet the statutory reporting requirements of the Urban Renewal act 1995 and the requirements of Premier and Cabinet circular PC013 annual reporting.
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 Executive
Last year we released our Strategic Plan 2020-23, a three-year strategy designed to guide Renewal SA’s focus on leading a thriving property sector here in South Australia, developing a strong project pipeline, and building lasting partnerships within government and with the private sector.
I am pleased to share that our people have committed themselves fully to this strategy, and the result is evident in the significant achievements we have realised across our organisation during 2020-21.
Major development opportunities were delivered to the private sector, including Forestville, Oakden, the Entrepreneur and Innovation Centre at Lot Fourteen, Affordable Housing EOI, Woodville St Clair, and multiple opportunities at Bowden.
A city-defining opportunity to develop the former Gasworks site at Bowden was announced and significant work was undertaken to plan and gain approvals for development of approximately 60 hectares of land at Aldinga.
Renewal SA’s projects and land sales unlocked an estimated $350 million of private sector capital expenditure and are estimated to have contributed in excess of $310 million in Gross State Product and supported in excess of 2,200 jobs. This included the sale and future development of 16.7 hectares of industrial land.
We remain committed to accelerating development that increases the supply of affordable housing, and we are proud to have delivered more than 200 affordable housing opportunities for South Australians this financial year, and a pipeline of more than 700.
We entered into an agreement for Fort Largs, which will create 335 homes for up to 800 residents and ensure the reuse of the state heritage-listed Drill Hall, Barracks Building and the Fort. We also announced our partnership with SA Housing Authority to deliver the Seaton Demonstration Project and began work to deliver 101 new homes.
Our residential development projects have achieved record performances off the back of a buoyant property market. Bowden achieved its best annual sales since establishment, Playford Alive achieved its best annual sales since 2013-14 and Woodville West had its best year since 2017-18 enabling the early close-out of this project.
The importance of the property sector and the role it plays in our economy has underpinned every decision and initiative over the course of 2020-21. As the State’s development agency, a focus on community has remained equally important as we work to improve the lives of all South Australians now and into the future.
Internally, our team continue to drive to be easier to do business with and more agile in decision making. This has led to a program of system transformation and process improvement.
As we work in partnership with the private development and investment sectors and across government, we will continue to seek economic impact for South Australia.
We are striving to achieve our bold and aspirational ambitions by continuing to grow our pipeline of future projects, unlock new opportunities and deliver city shaping projects.
Collectively with the Treasurer and our Board, we are proud to provide this summary of our achievements in 2020-21 which strongly reflect our efforts to drive the economic and social growth of South Australia, through property and projects.
Chris Menz
Chief Executive
Renewal SA
About the agency
Our strategic focus
As the government’s urban development agency, we are charged with leading and coordinating development and urban renewal activity to ensure South Australia’s future employment and housing needs are met through well-planned, affordable and vibrant 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 housing needs of South Australians.
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.
We focus on property development that builds new industries, infrastructure and communities while driving economic activity, attracting investment, and enhancing the liveability and land values in South Australia.
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 Renewal SA 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 development of the State
- acquire, hold, manage, lease and dispose of land, improvements in property.
Changes to the agency
During the 2020-21 financial year there were no significant changes to Renewal SA’s structure and objectives due to machinery of government changes.
To support the delivery of the Renewal SA Strategic Plan 2020-23, the organisational structure was reviewed and some structural changes were made to reinforce a focus on developing a pipeline of projects and ensuring there were adequate resources available to support delivery on key priority areas.
Our Minister
During the 2020-21 financial year the Urban Renewal Authority, trading as Renewal SA, was within the portfolio responsibilities of the Minister for Transport, Infrastructure and Local Government, Hon Stephan Knoll MP until 28 July 2020, and then moved to the Treasurer, the Hon Rob Lucas MLC’s portfolio.
Our Executive Team
The Chief Executive currently reports to the Treasurer 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 2021, Renewal SA’s Executive Team comprised:
- Chris Menz, Chief Executive
- Todd Perry, General Manager, Property and Project Delivery
- Tony Cole, General Manager, Major Projects and Pipeline
- Braden Naylor, A/General Manager, Commercial and Corporate
- Vy Collins, Senior Director, People and Culture.
Damian De Luca was General Manager, Corporate Services until March 2021.
The agency's performance
Performance at a glance
Renewal SA’s success in achieving impact in South Australia is being attained by generating value from the government’s real property holdings, investing in our people, creating a strong investment pipeline, building mutually beneficial partnerships and delivering ‘best in class’ on our projects.
We are committed to putting our people, customers and our partners at the heart of everything we do.
Renewal SA has a portfolio covering over 3,370 hectares of land and delivers significant revenue to South Australia of more than $100 million of income each financial year to the State through:
- seven residential trading projects: Bowden, Playford Alive, Tonsley, The Square Woodville West, Lightsview, Our Port, Eyre – Penfield
- three innovation precincts: Lot Fourteen, Tonsley Innovation District and Technology Park
- three civic projects: Adelaide Railway Station, Festival Plaza and Adelaide Riverbank
- six industrial/employment land projects: Northern Lefevre Peninsula, Edinburgh Parks, Elizabeth South, Gillman, Osborne North, East Grand Trunkway
- management of $78 million in property assets
- sale of government land that has been declared surplus, which this financial year equated to revenue of $6 million.
Our activities both seek to drive the property market in South Australia and respond to the opportunities it presents. Our people have a strong understanding of this balance of being responsive and identifying and demonstrating opportunities for growth.
During 2020-21, we delivered major opportunities to the private sector including
- multiple development opportunities in Bowden, including Nightingale apartments
- development of 52 hectares Oakden
- the Entrepreneur and Innovation Centre at Lot Fourteen on behalf of Department of Premier and Cabinet
- proposals sought through an Affordable Housing EOI
- development at Woodville St Clair
- a mixed-use development of 3 hectares Forestville.
Significant work was also undertaken to plan and gain approvals for development of approximately 60 hectares of land at Aldinga, 2.3 hectares on Churchill Road at Prospect, and a city-defining opportunity to develop the former Gasworks site at Bowden.
We also announced our partnership with SA Housing Authority to deliver the Seaton Demonstration Project and began work to deliver 101 new homes.
Agency response to Covid-19
Renewal SA supported our commercial tenants leasing Renewal SA-managed properties by offering the opportunity to receive rent relief for their tenancy.
During the financial year we managed more than 110 individual requests for support and provided rent relief in the order of $2.5 million to reduce the impact of COVID-19 pandemic restrictions on our leased properties.
Within Renewal SA, our Preparedness Co-ordinating Group continued to oversee a response to the COVID-19 pandemic. Our internal efforts focussed on the safety and wellbeing of staff as part of the workforce response to COVID-19, delivering effective and timely communication, and using employee engagement tools to seek relevant feedback. Measures to safeguard our employees were implemented, monitored and enhanced as required.
Our organisational response to the COVID-19 pandemic is supported by our result in the 2021 I Work for SA – Your Voice Survey. The survey results highlighted that out of the 118 respondents (89% of total workforce):
- 87% believed that we provided sufficient resources and arrangements to help them feel safe (+10% variance from SA Public Sector overall score)
- 86% were satisfied with the communications they received from senior managers about changes impacting their work (+20% variance from SA Public Sector score)
- 81% felt that their work group went the extra mile to support each other (+7% variance from SA Public Sector overall score).
Agency contribution to whole of government objectives
Renewal SA is aligned to, and supports, the Government of South Australia’s Growth State agenda, a government commitment to grow and accelerate the economy through partnerships between the public sector and industry.
We support this by identifying, prioritising and leading projects and initiatives that will stimulate the economy and create jobs for South Australians.
Moreover, Renewal SA is guided by the government’s 30-Year Plan for Greater Adelaide and participates in the delivery of The 20-Year State Infrastructure Strategy, which sets the long-term direction and priorities for infrastructure development in South Australia. Our activities are driven by 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.
More jobs
Renewal SA is delivering more jobs for South Australians and driving social and economic growth for the state by facilitating the supply of strategically located commercial and industrial land.
Renewal SA’s projects unlocked an estimated $200 million of private sector capital expenditure and are estimated to have contributed in excess of $210 million in Gross State Product and supported in excess of 1,500 jobs across the 2020-21 financial year.
In addition, the sale of 16.7 hectares of industrial land and its future development is expected to deliver at least 700 jobs and $100 million in Gross State Product during the financial year. By focusing on a strong pipeline of development opportunities, we will continue to help to attract future investment and property-based jobs further impacting the lives of those living in South Australia.
Our Works Program delivers economic outcomes through work experience and employment opportunities in Renewal SA-managed contracts. It provides engagement, training and employment programs in partnership with registered training organisations while building capacity in organisations and within communities.
In 2020-21, 165 participants engaged in training programs and 38 of these participants gained employment.
Lower costs
Renewal SA drives affordable housing across all projects and lands owned by Renewal SA, our partner projects that are delivered under development agreements, through joint ventures and with the community housing sector.
We are committed to accelerating development that increases the supply of affordable housing for sale to a mix of low and moderate-income homebuyers. This financial year Renewal SA delivered more than 200 affordable housing opportunities to the market, and a pipeline of a further over 700.
During 2020-21, the evaluation and shortlist of affordable housing projects submitted through an EOI, in partnership with SA Housing Authority was completed. Shortlisted projects have the potential to deliver 170 affordable homes.
Better services
Renewal SA facilitates the development of inclusive and connected communities. We are also committed to developing places that demonstrate good design, create quality public spaces and services, and enhance South Australian lifestyle.
Our contribution to better services for South Australians is evident through our continued delivery of projects including upgrade of Festival Plaza and the rejuvenation of the Adelaide Railway Station and surrounding public realm; planning for Adelaide Riverbank; and the development of innovation hubs, Tonsley Innovation District, Technology Park and Lot Fourteen.
The delivery of the Entrepreneur and Innovation Centre at Lot Fourteen, on behalf of Department of Premier and Cabinet, will be home to an Innovation Hub which will facilitate interaction between industry, research and entrepreneurs in a purpose-designed building.
We provide advice and work with other government agencies to facilitate the sale and/or redevelopment of government land and assets, ensuring the best management and use of government real estate. Where required, we play a strategic role in planning for those sites ensuring that they meet the current and future needs of their communities.
In 2020-21 we entered into an agreement for Fort Largs which will create 335 homes for up to 800 residents and ensure the reuse of the state heritage-listed Drill Hall and Barracks Building and the Fort.
We also began land division planning for the Seaton Stage 1 redevelopment project which will deliver 101 new homes and a new landscaped reserve.
Agency specific objectives and performance
In 2020, we launched our Renewal SA 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 is formulated on a foundation of four pillars — people, pipeline, partnerships, and projects. These pillars underpin our three-year organisational goals and initiatives, all of which are designed to support ambitious outcomes. They are critical to our success and are the reference points against which we benchmark and measure progress.
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. |
|
| Renewal SA enables our people to reach their potential and develops future capabilities for the business. |
|
| 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. |
|
| 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 is committed to diversity and inclusion and seeks to embrace diversity of thought to drive creativity, innovation, and performance in an inclusive environment.
Our inaugural Diversity and Inclusion Strategy was developed during 2020-21. As part of this Strategy, we will seek to diversify the workforce to better understand the needs of our internal and external customers, assisting in delivering projects with high level impact to the South Australian community.
As at 30 June 2021 our workforce comprised of:
- 52% females
- 35% females in leadership roles (defined as reporting to the Chief Executive and General Managers), compared to 29% as at 30 June 2020
- 0.78% of the workforce identifying as being Aboriginal or Torres Strait Islander heritage
- 10.93% of employees that were born in another country.
Additionally, there was a 233% increase in the number of employees who completed training in Aboriginal Cultural Awareness Training, compared to the 12-month period ending 30 June 2020.
Aboriginal workforce participation
To support the delivery of our strategic objectives and Reconciliation Action Plan, a Manager Reconciliation and Cultural Heritage role was created. This role will ensure that the agency actively engages and works collaboratively with local Aboriginal communities.The recruitment for this critical role was successfully finalised, with the appointee commencing in September 2021. This appointment represents a 100% increase to Aboriginal workforce participation within Renewal SA.
Skilling SA
We contributed to the Skilling SA Public Sector Project. This project supports increased traineeship and apprenticeship opportunities in the SA Government, creating a pipeline of talent with transferable skills across the public and private sectors. A trainee was recruited in the reporting period and commenced their traineeship within the agency in July 2021.
Agency performance management and development systems
A key focus during 2020-21 was establishment of a new performance and development framework.
A key objective of the implementation of the new framework included all employees establishing performance plans, and associated development plans aligned to the Renewal SA Strategic Plan 2020-23. This ensured that all employees line-of-sight to the strategic objectives of our agency and their contribution to delivery on this plan, enhancing employee engagement and accountability.
| Performance management and development system | Performance |
|---|---|
| Performance plans are facilitated and documented through our Performance Development Conversations (PDC) framework. The formal performance conversation process is biannual. | As at 30 June 2021, 85% of our employees had a performance and development conversation and plan created in the past six months. This figure includes new starters in the organisation (i.e. those that had commenced within 90 days as at 30 June 2021). With the exclusion of new starters, 93% of employees had a performance development conversation and plan created in the same period. |
Work Health, Safety and Return to Work Programs
| Program name | Performance |
|---|---|
| Work Health and Safety Program | Our Work Health and Safety (WHS) program is based on the Work, Health and Safety Act 2012 (SA) and Regulations. In 2020-21 we:
One Return to Work Claim was recorded in the financial year across all locations within Renewal SA. |
| Wellbeing Program | Our Wellbeing program recognises and values the benefits of worker wellbeing and wellness. We offer holistic worker wellness programs focusing on mental health, physical health and the emotional and social aspects of worker wellness.
In addition to the Mental Health First Aid training, we maintain a fully trained complement of Mental Health First Aiders in the workplace. |
| 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 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 effective return to work of injured employees. |
| Workplace injury claims | Current year 2020-21 | Past year 2019-20 | % change (+/-) |
|---|---|---|---|
| Total new workplace injury claims | 1 | 1 | 0% |
| 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 2020-21 | Past year 2019-20 | % 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 2020-21 | Past year 2019-20 | % change (+/-) |
|---|---|---|---|
| Total gross workers compensation expenditure ($) | $3,944 | $841 | +369% |
| Income support payments (gross) ($) | 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* | 21 |
*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
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.
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 performance
Financial performance at a glance
The following is a summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2020-21 are attached to this report.
The Comprehensive Result is a loss of $6.7 million, which is an improvement of $105.6 million on the previous financial year. The Comprehensive Result is impacted by one-off valuation adjustments and financing costs resulting from the level of borrowings determined by the South Australian Government for Renewal SA.
The buoyant property market has led to strong sales performance for the year, particularly in our residential development projects. Notably, in 2020‑21, the Bowden project achieved its best annual sales since its establishment. Additionally, the Playford project achieved its best sales year since 2013-14 and Woodville West had its best sales year since 2017‑18. Property carrying values have also increased by $4.1 million, representing a significant improvement on the write downs reported in recent years.
The Statement of Financial Position shows a return to a positive Net Asset and Equity position, representing a $50.7 million improvement on the negative Net Asset position reported for the last financial year. The government provided additional equity contributions during the financial year of $58.7 million. A further $32.0 million of new equity contributions is budgeted to be received from the government in the 2021-22 financial year, which will further improve the Net Asset position.
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 2021 are attached to this report.
| STATEMENT OF COMPREHENSIVE INCOME | 2020-21 ACTUAL $000S | 2019-20 ACTUAL $000S |
| Revenue from sales | $69,115 | $62,567 |
| Less: cost of sales | ($47,545) | ($36,489) |
| Gross profit on sales | $21,570 | $26,078 |
| Other income | $34,649 | $55,070 |
| Operating expenses | ($58,073) | ($67,346) |
| Underlying operating result | ($1,853) | $13,152 |
| Borrowing costs | ($8,928) | ($20,580) |
| Revaluation loss from early termination of loans | - | ($68,776) |
| Net gain/(loss) from changes in asset values | $4,063 | $36,761 |
| Comprehensive Result | ($6,719) | ($112,315) |
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 $10,000 each
| Consultancies | Purpose | Actual Payment ($) |
|---|---|---|
| 26 consultants engaged | Various | 108,911 |
Consultancies with a contract value above $10,000 each
| Consultancies | Purpose | Actual Payment ($) |
|---|---|---|
| Agon Environmental | Stockpile sampling | 14,770 |
| Baukultur Pty Ltd | Riverbank Strategic Precinct Plan | 107,240 |
| Bluesphere Environmental | Site investigations | 66,171 |
| Doug and Wolf | Lot Fourteen – Architecture Visualisation – Innovation Centre | 10,060 |
| Fyfe Pty Ltd | Aldinga: Structure Plan & Development Planning Application | 19,700 |
| GTA Consultants | Bowden: Car Parking Study | 38,200 |
| Holmes Dyer | New Castalloy: Code Amendment Investigations | 63,083 |
| Integrated Heritage Services | Oakden: Cultural Heritage Surve | 15,674 |
| Johnsons MME | Garden Island: Emissions Reduction Fund Audit | 13,460 |
| KPMG | Leadership Workshop and Advisory | 28,718 |
| KPMG | Values and behaviours workshop | 65,095 |
| KPMG | Enterprise Risk Management Review | 24,945 |
| KPMG | Lot Fourteen: Due Diligence Services – Innovation Centre | 30,000 |
| KPMG | Governance Model Options study | 40,999 |
| Land & Water Consulting | Suitability of Use Assessment | 17,583 |
| Mark Neill | Information Security Review & Updates | 15,600 |
| Objective Corporation Limited | Objective Auto Discovery Solution | 21,250 |
| Price Waterhouse Coopers | Renewal SA Strategy Development | 28,930 |
| Price Waterhouse Coopers | Accounting Advice: Long Term Leases | 18,870 |
| Price Waterhouse Coopers | Business Continuity Plan | 14,790 |
| Rider Levett Bucknall SA | Lot Fourteen: Cost Management – Innovation Hub | 66,550 |
| Rider Levett Bucknall SA | Lot Fourteen: Cost Management – International Centre for Food, Hospitality & Tourism | 25,000 |
| Robert Bird Group | Dock One: Concept Design – Pedestrian Bridge | 43,459 |
| Stillwell Mgt Consultants | Human Resources Management Consulting Advice | 37,975 |
| Thriving People Consulting | Culture and Capability Assessment and People and Culture Strategy | 24,500 |
| Uniquity | Human Resources & Organisation Change Matter Advice | 20,500 |
| Woods Bagot | Lot Fourteen: International Centre – Lot C Vision | 30,000 |
| Woods Bagot | Lot Fourteen: Site Analysis & Design – International Centre for Food, Hospitality & Tourism * | 331,750 |
| WT Partnership | Cost Estimation | 14,050 |
| TOTAL | 1,201,940 | |
*externally funded through the Adelaide City Deal.
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 framework currently in place. 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. It also ensures that risks are identified, assessed and assigned to risk owners with risk treatment and mitigating strategies required.
There is also appropriate risk reporting in place 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.
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.
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 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 such as:
- training for all staff in fraud and corruption control is conducted every three 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
- 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.
Fraud detected in the agency
There were zero instances of fraud detected in the agency in the reporting period
Data for previous years is available at: https://data.sa.gov.au/data/dataset/fraud-detected
Public complaints
Number of public complaints reported
No specific categories of formal complaints were received by, or made against, Renewal SA for the 2020-21 financial year.
The total number of enquiries between 1 July 2020 – 30 June 2021 was 340.
Service improvements
Renewal SA has considered our processes for receiving and managing enquiries and complaints. No specific service improvements were deemed to be required as part of the management of these enquiries, nor as a result of the enquiries received.
Further information
For further up-to-date information regarding Renewal SA and its activities, please refer to renewalsa.sa.gov.au
Financial statements
Statement of comprehensive income
For the year ended 30 June 2021
| Note No. | 2021 $’000 | 2020 $’000 | |
|---|---|---|---|
INCOME | |||
| Revenue from sales | 4 | 69,115 | 62,567 |
| Less: cost of sales | 4 | 47,545 | 36,489 |
| Gross profit from sales | 21,570 | 26,078 | |
| Share of net profit in joint ventures | 5 | 1,668 | 844 |
| Revenues from SA Government | 6 | 6,961 | 6,267 |
| Interest revenues | 7 | 477 | 711 |
| Property income | 8 | 22,872 | 45,493 |
| Other revenues | 9 | 2,670 | 1,755 |
| Net gain from disposal of non-current assets | 10 | 1 | – |
| Total other income | 38,712 | 55,070 | |
| Total income | 60,282 | 81,148 | |
EXPENSES | |||
| Employee benefits expenses | 13 | 14,079 | 14,573 |
| Operating expenditure | 15 | 41,015 | 49,559 |
| Bad and doubtful debts expense | 19 | (137) | 1,311 |
| Borrowing costs | 16 | 8,928 | 89,356 |
| Depreciation and amortisation | 22 | 3,116 | 1,903 |
| Net loss from changes in value of non-current assets/provision for development expenditure | 23 | – | 36,761 |
| Total expenses | 67,001 | 193,463 | |
| Profit/Loss before income tax equivalent | (6,719) | (112,315) | |
| Total comprehensive result | (6,719) | (112,315) | |
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
| Note no. | 2021 $’000 | 2020 $’000 | |
|---|---|---|---|
Current assets | |||
| Cash and cash equivalents | 18 | 12,403 | 11,236 |
| Receivables | 19 | 8,879 | 5,080 |
| Inventories | 20 | 65,271 | 74,702 |
| Investment in joint ventures | 5 | 1,588 | 3,246 |
| Total current assets | 88,141 | 94,264 | |
NON-CURRENT ASSETS | |||
| Receivables | 19 | 13,129 | 13,142 |
| Inventories | 20 | 255,578 | 162,002 |
| Investment properties | 21 | 83,765 | 77,590 |
| Property, plant and equipment | 22 | 12,326 | 15,780 |
| Investment in joint ventures | 5 | 485 | 659 |
| Total non-current assets | 365,283 | 269,173 | |
| Total assets | 453,424 | 363,437 | |
CURRENT LIABILITIES | |||
| Payables | 25 | 14,766 | 11,667 |
| Unearned income | 27 | 2,964 | 2,817 |
| Financial liabilities | 26 | 38,681 | 256,113 |
| Provisions | 28 | 26 | 27,137 |
| Employee benefits | 14 | 2,438 | 2,880 |
| Other liabilities | 29 | 896 | 152 |
| Total current liabilities | 59,771 | 300,766 | |
NON-CURRENT LIABILITIES | |||
| Payables | 25 | 1,967 | 9,119 |
| Unearned income | 27 | 13,576 | 14,865 |
| Financial liabilities | 26 | 375,411 | 86,357 |
| Provisions | 28 | 65 | 48 |
| Employee benefits | 14 | 2,559 | 2,963 |
| Total non-current liabilities | 393,578 | 113,352 | |
| Total liabilities | 453,349 | 414,118 | |
| Net assets | 75 | (50,681) | |
EQUITY | |||
| Contributed capital | 567,856 | 509,188 | |
| Retained earnings | (567,781) | (559,869) | |
| Total equity | 75 | (50,681) | |
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 2021
| Note no. | Contributed capital $’000 | Retained earnings $’000 | Total $’000 | |
|---|---|---|---|---|
| Balance 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: | ||||
| 127,331 | – | 127,331 | |
| – | – | – | |
| 17 | – | (1,749) | (1,749) |
| Balance as 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 | |
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 2021
| Note no. | 2021 $’000 | 2020 $’000 | |
|---|---|---|---|
CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Cash inflows | |||
| Receipts from sales | 69,878 | 63,876 | |
| Receipts from tenants (rent and recoveries) | 23,986 | 44,926 | |
| Receipts from SA Government | 6,911 | 6,267 | |
| Interest received | 10 | 270 | |
| Recoveries and sundry receipts | 2,420 | 806 | |
| GST recovered from the ATO | 5,678 | – | |
| Cash generated from operations | 108,883 | 116,145 | |
| Cash outflows | |||
| Payments for land purchase and development | (163,715) | (107,157) | |
| Payments in the course of operations for supplies and services | (64,242) | (78,148) | |
| Interest paid | (9,125) | (92,522) | |
| GST paid to the ATO | – | (58,780) | |
| Cash used in operations | (237,082) | (336,607) | |
| Net cash used in operating activities | 30 | (128,199) | (220,462) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Cash inflows | |||
| Distributions of profit by joint ventures | 3,500 | 1,000 | |
| Proceeds from the sale of plant and equipment | 1 | – | |
| Proceeds from the sale of investment properties | 1 | 661,243 | |
| Cash generated from investing activities | 3,501 | 661,243 | |
| Cash outflows | |||
| Purchase of property, plant and equipment | (6,601) | (175) | |
| Cash used in investing activities | (6,601) | (175) | |
| Net cash (Used in)/provided by investing activities | 3,109 | 662,068 | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Cash inflows | |||
| Equity contributions received from the SA Government | 58,668 | 127,331 | |
| Proceeds from borrowings | 348,050 | 226,152 | |
| Cash generated from financing activities | 406,718 | 353,483 | |
| Cash outflows | |||
| Repayment of borrowings | (273,050) | (803,187) | |
| Dividends paid to SA Government | (1,193) | (1,749) | |
| Cash used in financing activities | (274,483) | (804,936) | |
| Net cash provided by/(used in) financing activities | 132,475 | (451,453) | |
| Net increase/(decrease) in cash held | (1,167) | (9,847) | |
| Cash at the beginning of the financial year | 11,236 | 21,083 | |
| Cash at the end of the financial year | 18 | 12,403 | 11,236 |
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 2021 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 15 September 2021 | (signed)
B. Naylor 15 September 2021 | (signed)
C. Tragakis 15 September 2021 |
Independant 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
[email protected]
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 2021.
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 2021
- a Statement of Financial Position as at 30 June 2021
- a Statement of Changes in Equity for the year ended 30 June 2021
- a Statement of Cash Flows for the year ended 30 June 2021
- 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 2021.
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 2021