Department of Environment and Science Great Barrier Reef Joint Field Management Program special purpose financial report for the year ended 30 June 2019.

Statement of income and expenses

Statement of assets and liabilities

Notes to and forming part of the Special Purpose Financial Report

Section 1: About the program and this financial report

Basis of financial report preparation

GENERAL INFORMATION

This special purpose financial report covers the Joint Field Management Program for the Great Barrier Reef World Heritage Area for the financial year 1 July 2018 to 30 June 2019.

The Great Barrier Reef Marine Park Authority is an Australian Government Statutory Authority that manages the contributions for this program.

On release of the Public Service Departmental Arrangements Notice (No. 3) dated 12 December 2017, the Great Barrier Reef Marine Park Authority was transferred from the former Department of National Parks, Sport and Racing to the Department of Environment and Science (the Department).

The head office of business is:

Department of Environment and Science
Level 32
1 William St
BRISBANE QLD 4000

The principal place of business:

Joint Field Management Program for
The Great Barrier Reef Marine Park Authority and Queensland Parks and Wildlife Service
280 Flinders Street
TOWNSVILLE QLD 4810

For information in relation to the Great Barrier Reef Marine Park Authority financial report please call (07) 3330 5838, email info [at] des.qld.gov.au or visit the Authority’s website at http://www.gbrmpa.gov.au.

PURPOSE AND PRINCIPAL ACTIVITIES

Through the Great Barrier Reef Intergovernmental Agreement 2015 the Commonwealth and Queensland Governments have agreed to co-operatively plan, fund and deliver an integrated, strategically planned, and co-ordinated program of field management of marine and national parks within the Great Barrier Reef World Heritage Area.

The Joint Field Management Program (the Program) will be directed at achieving the following outcomes:

• protection and conservation of the natural and cultural resources, including Outstanding Universal Values;
• protection of key vulnerable species, their habitats and ecosystems;
• effective compliance with relevant Commonwealth and Queensland laws related to protection and management of the environmental and cultural values, including through education and understanding;
• effective permitting systems and associated operational policies under relevant Commonwealth and Queensland laws related to protection and management of the environmental and cultural values;
• ecologically sustainable public use;
• understanding and enjoyment of Great Barrier Reef World Heritage Area natural and cultural resources and values by the public;
• effective engagement with Traditional Owners in management;
• increasing the effectiveness of the program and the efficient use of resources through the use of technology, analysis of data and the monitoring of trends, including for scientific, biological, recreational and commercial matters; and
• capacity to respond to environmental incidents, including through coordinated clean up and rehabilitation programs.

Pursuant to the Great Barrier Reef Intergovernmental Agreement 2015, the Commonwealth and Queensland Governments agree to provide ongoing base funding (recurrent and capital) for this Joint Field Management Program shared on a 50:50 basis. The contributions by both parties will be administered by the Great Barrier Reef Marine Park Authority.

The Authority then provides a grant to the Department to deliver its components of the Joint Field Management Program. To the extent that the Department does not spend the grant in the financial year to which it is allocated, the monies are to be reallocated in the next financial year by the Joint Field Management Program Strategy Group.

COMPLIANCE WITH PRESCRIBED REQUIREMENTS

The Department of Environment and Science (the Department), a not-for-profit entity, has prepared this special purpose financial report in accordance with the Treasurer’s determination whereby compliance with certain provisions of the Financial and Performance Management Standard 2009 issued under the Financial Accountability Act 2009 was exempt. These financial statements have been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations and the disclosure requirements of AASB 101 Presentation of Financial Statements, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors and AASSB 1054 Australian Additional Disclosures. As there are limited intended users of this report, the format and content is appropriate to meet the information needs of the specific users.

Cash

The cash balance represents the cash receipts not spent as at 30 June 2019. This amount forms part of the Program’s cash balance.

Receivables

Trade debtors are recognised at the amounts due at the time of sale or service delivery. Settlement of these amounts is required within 14-30 days from invoice date. The collectability of receivables is assessed periodically with provision being made for impairment. All known bad debts were written-off as at 30 June 2019.

Payables

Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the nominal amount. Amounts owing are unsecured and are generally settled on 30-day terms.

PRESENTATION

Currency and Rounding

Amounts included in the financial report is in Australian dollars and rounded to the nearest $1,000, or, where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required.

Comparatives

Comparative information reflects the audited 2017-18 financial report.

Comparative information has been restated where necessary to be consistent with the disclosure in the current period.

AUTHORISATION OF FINANCIAL REPORT FOR ISSUE

The financial report is authorised for issue by the Acting Executive Director, Great Barrier Reef, Marine, Coastal and Islands and the Chief Finance Officer at the date of signing the Management Certificate.

THE REPORTING PROGRAM

The financial report includes the value of all revenues, expenses, assets and liabilities of the program, managed by the Department on behalf of the Queensland Government.

Section 2: Notes about our financial performance

Revenue

USER CHARGES AND FEES

OTHER REVENUE

Expenses

EMPLOYEE EXPENSES

Employee benefits

Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits.

Workers' compensation insurance is a consequence of employing employees and is not counted in an employee's total remuneration package. Whilst this is not an employee benefit it is however recognised separately as an employee related expense. The Department pays a premium to WorkCover Queensland in respect of its obligations for employee compensation.

Wages, salaries and sick Leave

Wages and salaries due but unpaid at reporting date are recognised as liabilities at the current undiscounted salary rates expected to be wholly settled within the next 12 months. Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued which is expected to continue in future. Accordingly, no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

​Annual leave and long service leave

Under the Queensland Government's Annual Leave Central (ALCS) and Long Service Leave (LSL) Schemes, levies are made on the department to cover the cost of employees' annual leave (including leave loading and on-costs) and LSL. The levies are recognised as expense in the period in which they are payable. Amounts paid to employees for annual leave and LSL are claimed from the schemes quarterly in arrears. No provisions for annual leave and LSL are recognised in the department's financial statements as the liabilities are held on a whole-of-government basis and reported in those financial statements.

Superannuation

Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. The department's obligation is limited to its contribution to QSuper.

SUPPLIES AND SERVICES

OTHER EXPENSES

Section 3: Notes about our financial position

Receivables

Property, plant and equipment

Items of property, plant, and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial reporting purposes in the year of acquisition:

• Buildings $10,000
• Infrastructure $10,000
• Land $1,000
• Other (including heritage & cultural) $5,000

Items with lesser value are expensed in the year of acquisition. Property, plant and equipment acquisitions were $4.257m (FY 2018: $3.247m).

Building and infrastructure assets are comprehensively valued using a rolling revaluation program. The valuation is at fair value and is undertaken independently by the State Valuation Service, Department of Natural Resources, Mines and Energy.

Plant and equipment is valued at cost in accordance with Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector.

The non-current physical assets (excluding motor vehicles) are insured through the Queensland Government Insurance Fund. Motor vehicles are insured through commercial insurers.

Accrued employee expenses

Management certificate

This special purpose financial report has been prepared pursuant to:

• the Great Barrier Reef Intergovernmental Agreement 2015 between the Commonwealth and the Queensland Governments;
• the Memorandum of Understanding for Provision of Field Management Services for The Great Barrier Reef Marine Park and Queensland Marine and National Parks within the Great Barrier Reef World Heritage Area (2018-19) (dated 20 November 2018);
• the Great Barrier Reef Marine Park Authority; and
• the decisions of the Field Management Strategy Group outlined in the Field Management Annual Business Plan 2018-19 (dated 26 September 2018).

In accordance with these agreements, we certify that in our opinion:

1. the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and
2. the reports have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of the Department of Environment and Science in relation to the Great Barrier Reef Joint Field Management Program for the year ended 30 June 2019 and of the financial position of the program at the end of period; and
3. financial assistance received has been expended in accordance with the purposes for which it was given in the financial year.

Independent auditor's report

To the Director-General of Department of Environment and Science

Report on the audit of the financial report

Opinion

I have audited the accompanying special purpose financial report of the Great Barrier Reef Joint Field Management Program.

In my opinion, the special purpose financial report:

1. gives a true and fair view of the entity's statement of assets and liabilities as at 30 June 2019, and its financial performance for the year then ended
2. complies with the Great Barrier Reef Intergovernmental Agreement 2015 and the financial reporting framework described in Note A1-3.

The special purpose financial report comprises the statement of assets and liabilities as at 30 June 2019, the statement of income and expenses for the year then ended, notes to the financial statements including summaries of significant accounting policies and other explanatory information, and the management certificate.

Basis for opinion

I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the 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 entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards.

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

Emphasis of matter – basis of accounting

I draw attention to Note A1-3 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the financial reporting responsibilities of Department of Environment and Science under the Great Barrier Reef Intergovernmental Agreement 2015. As a result, the financial report may not be suitable for another purpose. My opinion is not modified in respect of this matter.

Responsibilities of the entity for the financial report

The department is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Great Barrier Reef Intergovernmental Agreement 2015 and the financial reporting framework described in Note A1-3, and for such internal control as the department determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In fulfilling this responsibility, the department determined that the basis of preparation described in Note A1-3 is appropriate to meet the requirements of the Great Barrier Reef Intergovernmental Agreement 2015.

The department is also responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

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 the 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 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 the 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 expressing an opinion on the effectiveness of the entity's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the entity.
• Conclude on the appropriateness of the entity'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 my opinion. I base my conclusions on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the 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.

I communicate with the department regarding, 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 my audit.