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Public Safety Business Agency

Purpose of the report This annual report provides information about the Public Safety Business Agency’s financial and non-financial performance for 2013-14. Public availability of report This annual report can be obtained in paper form by calling 13 QGOV (13 7468) or online at www.psba.qld.gov.au or www.parliament.qld.gov.au/work-of-assembly/tabled-papers/online-tabled-papers/annual-reports. Enquiries and further information For enquiries or further information about this annual report, please contact the Director, Planning, Strategy Division, Public Safety Business Agency, telephone number (07) 3364 6195 or email [email protected]. Feedback Feedback is important for improving the value of future reports. We welcome your comments about this annual report which can be made through the Get Involved website: www.qld.gov.au/annualreportfeedback. Other languages and formats

The Queensland Government is committed to providing accessible services to Queenslanders of all cultural and linguistic backgrounds. If you have difficulty understanding this publication and need a translator, please call the Translating and Interpreting Service (TIS National) on telephone number 131 450 and an interpreter will be arranged to communicate the report to you.

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CC BY Licence Summary Statement In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to the State of Queensland Public Safety Business Agency. To view a copy of this licence, visit: www.creativecommons.org/licenses/by/3.0/au/deed.en. Attribution Content from this annual report should be attributed as: The State of Queensland Public Safety Business Agency 2013–14 Annual Report. ISSN: 2204-017X Queensland Fire and Emergency Services

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Public Safety Business Agency 2013-14 Annual Report

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Contents

Letter of compliance ....................................................................................................................... 2

Contents ......................................................................................................................................... 3

Chief Executive Officer’s message ................................................................................................. 4

OVERVIEW ....................................................................................................................................... 5

Public safety portfolio overview ...................................................................................................... 5

Machinery-of-government changes ................................................................................................ 6

Renewal agenda ............................................................................................................................. 7

Public safety portfolio committees .................................................................................................. 8

About the Public Safety Business Agency ...................................................................................... 10

Organisation structure .................................................................................................................... 14

PERFORMANCE .............................................................................................................................. 15

Key performance measures............................................................................................................ 15

Achievements ................................................................................................................................. 16

CORPORATE GOVERNANCE ........................................................................................................ 30

Executive management .................................................................................................................. 30

Boards and committees .................................................................................................................. 31

Ethics and Code of Conduct ........................................................................................................... 33

Risk management and accountability ............................................................................................. 34

Human resources ........................................................................................................................... 37

FINANCIAL SUMMARY ................................................................................................................... 40

Summary of financial performance ................................................................................................. 40

Summary of financial positon .......................................................................................................... 41

FINANCIAL STATEMENTS ............................................................................................................. 42

APPENDICES ................................................................................................................................... 103

Acronyms ........................................................................................................................................ 103

Compliance checklist ...................................................................................................................... 104

Contacts and key locations ............................................................................................................. 106 Content on consultancies, overseas travel and the Queensland Cultural Diversity Policy has been published on the Queensland Government Open Data Portal (www.qld.gov.au/data).


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OVERVIEW

Public safety portfolio overview The Public Safety Business Agency (PSBA) forms part of the public safety portfolio. In November 2012, the Queensland Government commissioned the Police and Community Safety Review (PACSR) to examine how the Queensland Police Service (QPS) and the Department of Community Safety (DCS) delivered their services. The review sought to provide a foundation for public safety agencies that would: facilitate better processes and outcomes for staff and volunteers provide a more sustainable approach to delivering quality public safety outcomes for all

Queenslanders.

The PACSR report was released in September 2013. It recommended: streamlining the structures of emergency service agencies improving coordination and interoperability between and within agencies employing technology to improve operational response capability and productivity.

The review also recommended the establishment of a new public safety portfolio under the Minister for Police, Fire and Emergency Services. The resulting public safety portfolio consists of the Office of the Inspector-General Emergency Management (IGEM); PSBA; Queensland Fire and Emergency Services (QFES); and QPS. The new portfolio structure is designed to support an integrated and collaborative approach to service delivery.

The Office of the Inspector-General Emergency Management The Office of the IGEM will be formally established as a public service office on 1 July 2014 under amendments to the Disaster Management Act 2003. The Office of the IGEM provides assurance and advice that enables confidence in Queensland’s emergency management arrangements. The Inspector-General was appointed on 11 October 2013 and through interim administrative arrangements the role was created within QFES until the office is formally established. The Office of the IGEM’s responsibilities and activities were undertaken within QFES in 2013-14. It administers Part 1A of the Disaster Management Act 2003. Public Safety Business Agency PSBA was established on 1 November 2013 under the Public Service Act 2008 with the renaming of DCS (Public Service Departmental Arrangements Notice (No.8) 2013). On 21 May 2014, with the assent of the Public Safety Business Agency Act 2014, PSBA was established as a public service office.


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PSBA provides strategic and corporate services to Queensland’s public safety agencies – the Office of the IGEM, QFES and QPS - allowing them to concentrate on frontline service delivery. It also performs operational functions including government air services and State Government Security. From 1 July 2014, PSBA functions will include administration of the Blue Card scheme (Working with Children suitability checks was previously a function of the Commission for Children and Young People and Child Guardian). PSBA administers the: Public Safety Business Agency Act 2014 State Buildings Protective Security Act 1983. Queensland Fire and Emergency Services QFES was established on 1 November 2013 under the Public Service Act 2008 (Public Service Departmental Arrangements Notice (No. 8) 2013). QFES incorporates parts of two divisions of the former DCS - the Queensland Fire and Rescue Service (QFRS) and Emergency Management Queensland (EMQ). QFES is the primary provider of fire and rescue, emergency management and disaster mitigation programs and services throughout Queensland, and includes Fire and Rescue, Emergency Management, Rural Fire Service Queensland (RFSQ) and the State Emergency Service (SES). QFES also supports other volunteer groups providing emergency response to Queensland communities. It is the role of QFES to provide leadership, mitigation planning and a responsive service to the community. QFES aims to protect person, property and the environment through the continued delivery of emergency services, awareness programs, response capability and capacity, and incident response and recovery for a safer Queensland. QFES administers the: Disaster Management Act 2003 Fire and Emergency Services Act 1990. Queensland Police Service The Police Department was initially established by the Police Act of 1863 which took effect on 1 January 1864. The QPS upholds the law by working with the community to stop crime and make Queensland safer. The QPS is responsible for service delivery 24 hours - seven days a week, focussed on preserving peace and good order, protecting the community, preventing and detecting crime, administering the law fairly and efficiently and bringing offenders to justice. This is achieved by using technology and innovative strategies to enable a mobile, flexible and agile delivery of services to address community needs. The following legislation is administered by the QPS: Australian Crime Commission (Queensland) Act 2003 Child Protection (Offender Prohibition Order) Act 2008 Child Protection (Offender Reporting) Act 2004 G20 (Safety and Security) Act 2013 Police Powers and Responsibilities Act 2000 Police Service Administration Act 1990 Public Safety Preservation Act 1986 Queensland Police Welfare Club Act 1970 Summary Offences Act 2005 Terrorism (Preventative Detention) Act 2005 Weapons Act 1990.

Machinery-of-government changes Further machinery-of-government changes during 2013-14 included: transfer of the Queensland Ambulance Service (QAS) from DCS to the Department of Health on

1 October 2013 transfer of Queensland Corrective Services (QCS) from DCS to the Department of Justice and

Attorney-General (DJAG) on 1 November 2013 transfer of the Prostitution Licensing Authority from QPS to DJAG on 1 November 2013


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transfer of the administration of the Natural Disaster Resilience Program and the Natural Disaster Relief and Recovery Arrangements, and full responsibility for the Get Ready Queensland initiative and associated functions from DCS to the Department of Local Government, Community Recovery and Resilience on 1 November 2013

transfer of responsibility for the Government Air Wing, Department of the Premier and Cabinet (DPC); the Community Helicopter Provider (CHP) Network, Department of Health; Emergency Management Queensland Helicopter Rescue; and the QPS Air Wing to PSBA on 1 November 2013

transfer of State Government Security from the Department of Housing and Public Works (DHPW) to PSBA on 1 January 2014.

From 1 July 2014, the coordination and management of QPS housing will transfer to DHPW. Legislation changes in 2013-14 The following legislation was administered by the former DCS during 2013-14; however, due to machinery-of-government arrangements transferred to another agency: Disaster Management Act 2003 transferred to QFES and the Office of the IGEM Ambulance Service Act 1991 transferred to the Department of Health Corrective Services Act 2006 and Parole Orders (Transfer) Act 1984 transferred to DJAG. The Prostitution Act 1999 was administered by QPS in 2013-14; however, due to machinery-of-government arrangements transferred to DJAG. Legislation changes in 2014-15 The Working with Children (Risk Management and Screening) Act 2000 will be administered by PSBA from 1 July 2014.

Renewal agenda The Queensland public sector is undergoing a transformational program – Queensland’s Renewal Program. The Renewal Program sets out the state’s strategy for delivering whole-of-government and agency specific renewal initiatives. PSBA has established a Renewal Office within the Office of the Chief Executive Officer to coordinate the renewal activities across the public safety portfolio. In addition, a Public Safety Portfolio Renewal Committee, which includes representatives from each public safety portfolio agency, has been established to: provide strategic direction in relation to renewal and contestability across the portfolio prioritise and review renewal business cases and submissions to the Queensland Government

Renewal Oversight Committee and the Queensland Government’s Public Sector Renewal Board monitor implementation of renewal and contestability initiatives. For further information regarding the committee refer to Public safety portfolio committees on page 8. As part of the Renewal Agenda of the Queensland Government, all agencies in the public safety portfolio submitted renewal plans to DPC at the end of 2013. These renewal plans were mainly built around the Queensland Commission of Audit (QCoA) findings and recommendations (2013) (www.commissionofaudit.qld.gov.au/). As significant overlap exists between the QCoA and PACSR, the majority of QCoA recommendations are being delivered via PACSR. A large component of the renewal plans have been completed by implementing the findings and recommendations associated with PACSR and The Malone Review into Rural Fire Services in Queensland.


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PSBA, QFES and QPS each have their own detailed renewal agendas which link to each other but are focused on the specific agencies. The Office of the IGEM is a new agency established as an outcome of PACSR from 1 July 2014. The Office of the IGEM is developing outcomes based standards and assurance programs that will support a renewal approach across the emergency management sector. The Public Safety Portfolio Renewal Committee monitors the individual renewal agendas while regular interaction with the Public Sector Renewal Board provides strategic guidance and direction in the broader government renewal context. The QPS renewal agenda is well developed with PSBA and QFES in the process of developing and refining their renewal agendas. For further information regarding PACSR refer to External accountability on page 34.

Public safety portfolio committees Within the public safety portfolio, each agency has its own corporate governance structure (refer page 31). In addition, there are two portfolio-wide corporate governance bodies – the Public Safety Portfolio Innovation Committee, which promotes innovative ideas, and the Public Safety Portfolio Audit and Risk Committee, which manages risk and ensures the portfolio’s operations are carried out efficiently, effectively and economically. There are two other high level committees that support coordination and collaboration across the portfolio – the Public Safety Executive Coordinating Committee and the Public Safety Portfolio Renewal Committee. These portfolio committees were established following the machinery-of-government changes in November 2013. Public Safety Portfolio Innovation Committee The Public Safety Portfolio Innovation Committee is a portfolio-wide committee that makes decisions regarding innovative ideas and initiatives. It conducts an initial assessment of innovative ideas to determine the size of the opportunity (potential return on investment) and level of confidence in the solution. Where there is confidence that an idea represents a good opportunity, the committee can approve funding of innovation trials, assessments and associated research from an annual innovation fund allocated to help foster and grow the idea. The committee will hold its inaugural meeting on 1 August 2014 and will meet quarterly. Committee members Kelvin Anderson, Chief Executive Officer, PSBA (Chair) Commissioner of Police represented by Stephan Gollschewski, Deputy Commissioner,

Strategy, Policy and Performance, QPS Commissioner, QFES represented by Ian Mitchell, Deputy Commissioner, Operational

Capability and Performance, QFES Iain MacKenzie, Inspector-General Emergency Management


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Public Safety Portfolio Audit and Risk Committee The Public Safety Portfolio Audit and Risk Committee governs audit and risk matters for the public safety portfolio agencies. The committee provides independent assurance and assistance through prompt and constructive reports directly to each accountable officer in the portfolio, particularly when issues identified present material risk or threat to the portfolio. The committee is chaired by an independent external expert appointed to the role. Each public safety portfolio agency is represented by one member. The committee held its first meeting on 15 May 2014 and meets quarterly. As at 30 June 2014, the committee had met on two occasions. The independent external member was appointed in May 2014 and received $2,062.50 in remuneration for services provided in 2013-14. There were no other on-costs. Committee members Graham Carpenter, Consultant (Chair) (external member) Ian Stewart, Commissioner, QPS Lee Johnson, Commissioner, QFES Iain MacKenzie, Inspector-General Emergency Management Pat Vidgen, Deputy Chief Executive Officer, PSBA Achievements include: Endorsed the:

- Public Safety Portfolio Audit and Risk Committee Charter and structure - Internal Audit Charter and Co-sourcing Model - strategic and operational plans for Internal Audit - risk management framework and plan - Internal Audit reports.

Other Committees

Public Safety Executive Coordinating Committee The Public Safety Executive Coordinating Committee helps guide the public safety portfolio, particularly in the areas of strategy, policy and service delivery, to ensure the portfolio continues to deliver the outcomes and benefits required by the state. The committee will hold its inaugural meeting on 28 July 2014. The committee’s Terms of Reference, including the position of Chair and frequency of meetings, will be considered at this meeting. Committee members Kelvin Anderson, Chief Executive Officer, PSBA Pat Vidgen, Deputy Chief Executive Officer, PSBA Ian Stewart, Commissioner, QPS Lee Johnson, Commissioner, QFES Iain MacKenzie, Inspector-General Emergency Management


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Public Safety Portfolio Renewal Committee The Public Safety Portfolio Renewal Committee is a high level portfolio-wide committee established to provide strategic direction in relation to renewal and contestability across the portfolio. In addition, the committee prioritises and reviews renewal business cases and submissions to the Queensland Government Renewal Oversight Committee and the Queensland Government’s Public Sector Renewal Board, and monitors implementation of renewal and contestability initiatives. The committee held its inaugural meeting on 7 May 2014 and will hold its second meeting on 12 August 2014. The committee meets quarterly. Committee members The Honourable Jack Dempsey MP, Minister for Police, Fire and Emergency Services (Chair) Kelvin Anderson, Chief Executive Officer, PSBA Ian Stewart, Commissioner, QPS Lee Johnson, Commissioner, QFES Iain MacKenzie, Inspector-General Emergency Management Neil McGregor, Director, Commission of Audit Implementation Team (delegate from DPC) Leigh Pickering, Acting Assistant Under Treasurer, Budget Portfolios Division (delegate from

Queensland Treasury and Trade (QTT)) Peter McKay, Deputy Commissioner, Workforce Renewal and Operations (delegate from the

Public Service Commission) Achievements include: Established the committee’s operating principles.

About the Public Safety Business Agency The PSBA was established on 1 November 2013 under the Public Service Act 2008 with the renaming of DCS (Public Service Departmental Arrangements Notice (No. 8) 2013). On 21 May 2014, with the assent of the Public Safety Business Agency Act 2014, PSBA was established as a public service office. PSBA provides strategic and corporate services such as finance, human resources, information and communications technology (ICT), ministerial and executive services, and media and business strategy to Queensland’s public safety agencies – the Office of the IGEM, QFES and the QPS - allowing them to concentrate on frontline service delivery. It also performs operational functions including government air services and State Government Security and continues to support the ICT functions of the QAS within the Department of Health. The PSBA’s vision, outlined in its Strategic Plan 2014-2018, is a safe and secure Queensland. Its purpose is to provide high quality and sustainable executive, corporate and business services and enable the public safety portfolio to deliver the best public safety services in the nation. Under the Public Safety Business Agency Act 2014, the main functions of PSBA include: to provide support services to public safety entities to hold and maintain infrastructure, fleet and communication technology assets for public safety

entities to develop, in consultation with each public safety entity, performance measures that apply to the

entity in carrying out the entity’s functions to review, assess and report on the performance of public safety entities against their

performance measures.


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Objectives The Queensland Government is committed to achieving future prosperity through the delivery of the following objectives for the Queensland community: grow a four pillar economy lower the cost of living invest in better infrastructure and use better planning revitalise frontline services restore accountability in government. The PSBA objectives are to: ensure a more effective and sustainable approach to delivering public safety outcomes allow frontline staff to focus on delivering professional public safety services to the community enhance the Queensland community’s ability to access public safety services, when and where

they need them ensure Queenslanders get the best quality public safety services improve the public safety portfolio’s efficiency to ensure Queenslanders get value-for-money

public safety services increase interoperability and eliminate duplication and waste within and between the public

safety agencies provide transparency and accountability to government and the community promote innovation and cultural change. PSBA achieves its objectives through a range of strategies that also contribute to the government’s objectives, particularly revitalising frontline services. PSBA strategies are to: use evidence to align resources to relative need deliver high quality corporate and business support services enhance access to services and information through the One-Stop Shop approach develop a robust performance management system facilitate contestability, efficiency reviews and renewal integrate systems and processes across the public safety portfolio link resource data with services provided and outcomes achieved, to show how value is created foster innovation through the ideas, decisions, actions system (known as IDA) and undertake a

program of cultural renewal. Values PSBA is characterised by: respect for ethical standards a strong service culture focused on implementing better ways of working continuous improvement informed by contestability, innovation and performance benchmarking.


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These characteristics align with the Queensland Public Service values.

Know your

customers Deliver what

matters Make decisions

with empathy

Challenge the norm and suggest solutions

Encourage and embrace new ideas

Work across boundaries

Expect greatness

Lead and set clear expectations

Seek, provide and act on feedback

Own your actions, successes and mistakes

Take calculated risks

Act with transparency

Lead, empower and trust

Play to everyone’s strengths

Develop yourself and those around you

Strategic risks and challenges PSBA’s key challenge is ensuring services are effective, sustainable and affordable in light of demand and resource pressures that include: a growing and ageing population, predominantly based in the south-east corner of the state community expectations the ongoing possibility of natural disasters in Queensland. In light of this challenge, public sector agencies like PSBA must move away from traditional service delivery models, toward more flexible, agile and economical ways of working. 2014-15 Outlook During 2014-15, the PSBA will continue to progress recommendations from the QCoA and PACSR including: maintaining an emphasis on improving the performance and efficiency of a broad range of

corporate services embedding renewal and innovation within a new governance model that facilitates engagement

and alignment with portfolio partners supporting workforce modernisation and more flexible and efficient planning and resource

allocation within the portfolio, including developing cost attribution and resourcing models participating in whole-of-government activities aimed at consolidating capital stock and assets,

as well as forward planning for infrastructure and asset requirements. From 1 July 2014, PSBA functions will include administration of the Blue Card scheme (Working with Children suitability checks was previously a function of the Commission for Children and Young People and Child Guardian). Legislation administered and machinery-of-government changes For details of legislation administered by PSBA and machinery-of-Government changes, refer to the Public safety portfolio overview on page 5. Locations A list of contacts and key locations for PSBA is available on page 106.


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Partners PSBA works closely with its portfolio partners – the Office of the IGEM, QFES and the QPS. PSBA also has strong relationships with its partners across government. School Watch Program The School Watch Program is a partnership between PSBA’s State Government Security, Education Queensland and the QPS. The program aims to reduce vandalism, theft and arson in Queensland schools through the use of a dedicated School Watch number (13 17 88) which is available 24 hours a day to report suspicious behaviour or incidents at schools. State Government Security has the potential to respond directly to those School Watch calls through its mobile patrols, which operate outside of normal business hours, seven days a week, within the Brisbane, Logan and Moreton Bay regions. Blue Card Services One of the roles of Blue Card Services is to carry out the Working with Children Check which is an ongoing assessment of a person's eligibility to work or volunteer with children. It involves a check of a person's national criminal history and other disciplinary and police information. Blue Card Services, which will transition to PSBA on 1 July 2014, works closely with the QPS, and the Office of the Director of Public Prosecutions and QCS within DJAG to source the information for the Working with Children Check.


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Organisation structure (as at 30 June 2014)


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PERFORMANCE

Key performance measures PSBA was established on 1 November 2013. The table below provides an overview of the key performance measures for PSBA for 2014-15.

Notes: 1. New service standard in the 2014-15 Service Delivery Statement. 2. This service standard will be measured as part of an annual client survey of PSBA clients.

‘Clients’ are the Office of the IGEM, QFES and QPS. It represents the proportion of staff of the client agencies who had contact with the PSBA and were satisfied or very satisfied.

3. Data is not available/not applicable. 4. On 1 July 2014, administration of blue cards will transfer from the Commission for Children and

Young People and Child Guardian to the PSBA. The 2013-14 Actual is reported in the Department of Communities, Child Safety and Disability Services 2013-14 Annual Report.

5. This service standard measures the cost of delivering PSBA corporate and strategic services for 2014-15 by dividing PSBA recurrent expenditure by the population of Queensland (source: Australian Bureau of Statistics 3101.0 Australian Demographic Statistics December Quarter 2013 report).

Executive, Corporate and Business Services

Performance Measure Notes 2013-14 Target/ Estimate

2013-14 Actual

Client satisfaction 1, 2, 3 New measure

-

Average processing times (days) of blue card applications where there is no criminal history

3, 4 - -

Cost of Public Safety Business Agency services per person

1, 3, 5 New measure

-


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Achievements Police and Community Safety Review PSBA was formed on 1 November 2013 as a result of a key recommendation of PACSR. PSBA has been staffed by merging the corporate and business support areas of the former DCS and QPS to deliver seamless and efficient corporate support to frontline staff. The agency helps frontline emergency services by ensuring staff and volunteers can focus on assisting Queenslanders in their times of need and to ensure Queensland is the safest place to live and raise a family. Public Safety Business Agency Act 2014 The Public Safety Business Agency Act 2014 was assented to on 21 May 2014. Amongst other things, the Act: establishes the new Fire and Emergency Services Act 1990, to replace the Fire and Rescue

Act 1990 transfers the provisions of the Disaster Management Act 2003 that relate to the State Emergency

Service (SES) and Emergency Service Units to the Fire and Emergency Services Act 1990 defines PSBA’s functions creates the position of Inspector-General Emergency Management. The Inspector-General will

ensure disaster responses in Queensland are better coordinated by regularly reviewing, assessing and reporting to government with respect to the preparation for, and management of, disasters.

Public Safety Business Agency planning Following the establishment of PSBA, the Public Safety Business Agency Strategic Plan 2014-2018 was developed. The strategic plan outlines the agency’s objectives, the strategies that will be implemented to achieve the objectives and the performance indicators that will be used to determine whether the objectives have been achieved. The plan also includes the agency’s strategic risks and challenges. An overview of the key performance measures for PSBA for 2014-15 can be found on page 15. Ideas, decisions and actions PSBA has developed and implemented a governance system built around promoting ideas, getting decisions and taking action, known as IDA. IDA is the management process by which good ideas are supported and developed into outcomes. IDA also includes performance measures and key controls to ensure PSBA continues to meet its legislated obligations. Red tape reduction Identifying opportunities to reduce red tape will be a focus of PSBA in 2014-15. In particular, PSBA will examine options to reduce red tape in the Blue Card application process, while maintaining safeguards for children and young people. Support to Tropical Cyclone Ita and alleged abduction in Childers In April 2014, Tropical Cyclone Ita caused significant damage to the Cooktown and Hope Vale areas and lesser damage to the wider area. The Category 4 cyclone prompted a state-wide response with staff and volunteers from the public safety portfolio deployed from all around Queensland to assist crews and residents in the far north. Numerous teams across PSBA were also activated in support of the State Disaster Coordination Centre (SDCC) and went above and beyond their normal duties to ensure the PSBA vision of a safe and secure Queensland was the paramount focus. The PSBA Media Branch was responsible for co-ordinating the whole-of-government messaging during the event, managing staff from numerous government departments to fill a 24/7 roster which collated, distilled and delivered key messages at set intervals and on-demand during the emergency.


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In addition, PSBA continued business as usual operations, which included the highest level of response in the QPS field – a child abduction alert. In this case, the Childers child abduction captured as much media attention as Tropical Cyclone Ita and led to resources being deployed on multiple fronts. Public Safety Portfolio Innovation Office The Public Safety Portfolio Innovation Office, created in November 2013, has run innovation forums across the portfolio and provided opportunities to generate, discuss and grow ideas through social media and other networking groups such as the PSBA Innovation Space on Yammer. The Innovation Office undertakes an initial assessment of ideas and provides assistance in developing them for presentation to the Public Safety Portfolio Innovation Committee. Innovation proposals are considered by the committee, which makes decisions regarding innovative ideas and initiatives and can approve funding of innovation trials, assessments and associated research from an annual innovation fund. For further information about the committee refer to Public safety portfolio committees on page 8. Media and social media campaigns During the year, the PSBA Media Branch managed a number of media and social media campaigns on behalf of the QPS and QFES, including: Go too far lose your car: launched in November 2013, the campaign was developed to crack

down on hooning. Following the campaign, 87% of 17-25 year olds stated it is not worth it to hoon

Become your neighbourhood crime fighter: launched on 27 March 2014 for four weeks, Neighbourhood Watch Queensland went digital, encouraging community members to get involved wherever they are, whenever they want to. The campaign inspired community members to join Neighbourhood Watch Queensland online, get their neighbours involved and fight crime together. For the first time, the QPS used electronic direct mail as a way to support the campaign and increase membership numbers. As at 30 June 2014, the various Neighbourhood Watch blogs had over 120,000 visits, 3,900 published posts, 170 community authors, 55 QPS authors and over 2,600 community members have joined as online members

You only party once with police: the QPS reached out to young people likely to be affected by the new out-of-control events legislation passed in February 2014. Translated from the language of social media, the slogan “#YOPO with the POPO” reads as ‘You only party once with police’. #YOPO with the POPO was posted on Facebook, Twitter and myPolice news and blog sites in March 2014

Disaster preparedness campaign: the campaign urged Queenslanders to prepare their homes for Queensland’s wild summer weather

If It’s Flooded, Forget It: the campaign encouraged motorists and other members of the community to heed warnings and avoid flooded roads and other areas

PREPARE.ACT.SURVIVE.: the campaign enabled residents to prepare for the bushfire season and equips them with the knowledge they need to take appropriate action to survive during a bushfire

Winter Fire Safety: the campaign reminded homeowners to take simple steps to ensure their family’s safety during the colder months including developing a fire escape plan.

Social media and web analysis service provider PSBA worked closely with QPS Community Contact Command and the G20 Group to establish an externally hosted social media analytics platform managed service. The contract was signed in December 2013 enabling the service to be established in time to support G20 events.


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Sponsorship Key sponsorships worth $2.28 million annually in cash and in-kind during 2013-14 included NRMA Insurance, Rio Tinto, Origin Energy, Queensland Gas Corporation, Energex, QSuper and the Queensland Police Credit Union. PSBA seeks and receives sponsorships to expand the resource base in order to add value to appropriate government and community services, events and initiatives. Rio Tinto’s commitment of $10 million over ten years to the Queensland Government Air (QGAir) rescue service has provided increased aircraft fuel capacity and rescue winching capability as well as the purchase of night vision goggles to enhance community safety. The SES and Rural Fire Service Queensland receive support through substantial equipment programs with NRMA Insurance, Energex, Origin Energy and Queensland Gas Corporation to build capacity at a local level throughout the state. Sponsorship programs have provided opportunities to make contact with a specific target audience, deliver community initiatives/campaigns and develop important stakeholder relationships. PSBA developed strategic partnerships with NRMA Insurance, Suncorp, Commonwealth Bank of Australia, Bunnings and IGA to deliver the Get Ready Queensland campaign which promoted vital storm/cyclone preparation messages to the Queensland community. Media engagement The PSBA Media Branch coordinated the establishment of a High Level Media Working Group during the year to build a strong partnership between the Queensland Government and media agencies. This working group was formed to ensure the public is appropriately informed during major incidents and was the fulfilment of a PACSR recommendation. Queensland Government Air In line with the machinery-of-government arrangements, on 1 November 2013, Emergency Management Queensland Helicopter Rescue helicopters and police and government fixed wing aircraft merged as QGAir within PSBA. The service provides transport and incident response to support government services to the community. QGAir also manages contract arrangements with Community Helicopter Providers (CHPs) and the commercial helicopter provider in the Torres Strait. The decision to establish QGAir occurred following an extensive examination by the Queensland Government of the most effective and efficient way to operate government fixed wing and helicopter aviation services. The new model of operation will formally come into effect on 1 July 2014. Fixed Wing Aviation Services QGAir operates two aircraft in support of organ retrieval for Donate Life Queensland and government dignitary and personnel transport – a Hawker Jet and Kingair Turbo Prop (services formerly provided by the Government Air Wing). During 2013-14, a total of 558 flight hours were flown by these two aircraft. QGAir also has six fixed wing aircraft to support public safety incident and transport operations (services formerly provided by the Police Air Wing). Two are based in Brisbane, two in Cairns and one each in Mt Isa and the Torres Strait. These aircraft provide rapid deployment of police and equipment across the state and facilitate the movement of prisoners, mental health patients and police intrastate and interstate.


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From 1 July 2013 to 30 June 2014, QGAir: operated 1,951 flight hours travelled 669,717 kilometres carried 24,464 kilograms of freight transported 10,625 passengers including 1,870 prisoners assisted with search and rescue operations supported Queensland Government emergency operations during natural disasters. Emergency Helicopter Network The Emergency Helicopter Network consists of the QGAir rescue service, the CHPs across Queensland and a contract service in the Torres Strait. Queensland Government Air rescue service

The QGAir rescue service operates 24 hours a day, seven days a week from bases located at Brisbane, Townsville and Cairns with a fleet of five aircraft. QGAir is fully operational across all bases with access to Night Vision Goggle capability which greatly enhances safety and night search capabilities.

During 2013-14, a total of 3,137 engine hours were expended by QGAir helicopter aircraft during the performance of 1,572 operational tasks, including Tropical Cyclone Ita relief operations and other necessary flying activities such as training.

Responsibility for Emergency Management Queensland Helicopter Rescue transferred to PSBA on 1 November 2013.

Community Helicopter Providers

CHPs are an integral component of the state’s Emergency Helicopter Network and provide vital aerial support to aeromedical operations, search and rescue operations, law enforcement, counter disaster operations, and fire suppression and surveillance operations.

The three approved CHPs are: CareFlight (Qld) with bases at Gold Coast, Toowoomba, Sunshine Coast and Bundaberg

airports Capricorn Helicopter Rescue Service based at Rockhampton airport Central Queensland Helicopter Rescue Service based at Mackay airport.

In 2013-14, CHPs provided 3,682 engine hours aerial support.

Responsibility for administration of agreements for CHPs transferred to PSBA from the Department of Health on 1 November 2013.

PSBA is working with the CHPs to enter into new agreements with the State Government to strengthen their partnership and enable them to continue to deliver their services to Queenslanders into the future.


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Contract Service Australian Helicopters Pty Ltd (AHPL) is contracted to provide emergency helicopter services to remote communities in the Torres Strait and Northern Cape York from its base on Horn Island. Improved emergency helicopter services will be provided to these communities following the extension of an agreement with AHPL and the commitment of funding to 30 June 2016 including the implementation of night vision capability. This will ensure the residents of Far North Queensland communities continue to benefit from the service.

Responsibility for administration of the contracted service transferred to PSBA from the Department of Health on 1 November 2013.

Fee for service The Queensland Government has an agreement with North Queensland Helicopter Rescue Service, an organisation independent of the Emergency Helicopter Network which operates out of Mount Isa. State government agencies support the North Queensland Helicopter Rescue Service by chartering its services on a user pays basis as required. State Government Security On 1 January 2014, responsibility for the administration of State Government Security was transferred from DHPW to PSBA. State Government Security incorporates the State Government Protective Security Service and operates under the State Buildings Protective Security Act 1983 and the State Buildings Protective Security Regulation 2008. The service has provided protective security services to the people and property assets of the Queensland Government for more than 60 years. It employs approximately 300 officers across the state and protects important government assets including schools, parklands, courthouses and government offices. It also delivers a wide range of security services including: on site security of government property assets an alarm monitoring and response service mobile patrolling of property assets government identification card production security assessments and technical advice. Blue Card Services The Blue Card System is a key prevention and monitoring system of people working with children and young people in Queensland. It provides a vital contribution to the creation of safe and supportive environments for children and young people when receiving services and participating in activities such as child care, education, sport and cultural activities. The system considers past, present and future risks of harm to children and involves initial screening to determine a person’s eligibility to work with children and young people; ongoing monitoring of all applicants and card holders; and the requirement of organisations to develop, implement and maintain child and youth focussed risk management strategies. Responsibility for the Blue Card System will transition from the Commission for Children and Young People and Child Guardian to PSBA on 1 July 2014. Strategic and operational planning Planning is an integral part of the Queensland Government’s Performance Management Framework and is recognised as the starting point in any strategic management cycle. To ensure robust planning and risk management processes are implemented and PSBA meets its legal requirements, the Public Safety Business Agency Guide to Strategic and Operational Planning and Operational Risk Management 2014-15 was developed. This guide provides PSBA members with information and guidance on planning and operational risk management processes including the requirements for each level of planning.


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Demand and resource modelling Implementation of QCoA recommendation 101 and PACSR recommendations 68 and 113 relies on improving resource planning and allocation processes across the public safety portfolio. In 2013-14, PSBA designed a Police Demand and Resource Model (PDRM) in consultation with the QPS that provides an evidence-base to inform senior executive decision making around police-related resource allocation. The PDRM is a tool for use by the QPS and the PSBA to understand the impact of demand on service delivery. It incorporates a wide range of historic and socio-demographic factors identified by research as influencing demand for police services. These factors are projected to show relative need and potential resource allocations. Work has commenced to scope further stages to include enhancements to the police model and the development of similar models for QFES and PSBA. Public safety portfolio legislation The PSBA Legislation Branch is responsible for legislation administered by the public safety portfolio agencies including Police Powers and Responsibilities Act 2000, Police Service Administration Act 1990, Fire and Emergency Services Act 1990 and the Disaster Management Act 2003. The Legislation Branch also consults with key stakeholder groups including those government departments directly affected by changing legislation, DPC and the Office of the Queensland Parliamentary Counsel, to ensure the policy and legislative development process provides the best outcomes. It also supports the Minister for Police, Fire and Emergency Services during the Cabinet and Parliamentary processes and assists its portfolio partners during the parliamentary portfolio committee’s consideration of proposed legislation. During 2013-14, the Legislation Branch steered a wide range of child protection amendments through government and committee processes, undertook a review of the Police Powers and Responsibilities Act 2000, drafted regulations to implement government policy in relation to the Emergency Management Levy and developed the Public Safety Business Agency Act 2014. Child protection On 4 June 2014, the Queensland Parliament passed the Child Protection (Offender Reporting) and Other Legislation Amendment Bill 2014. The Bill meets the government’s commitment to introduce more stringent monitoring of sex offenders and tougher conditions for offenders who make up the Queensland component of the National Child Offender System. Accordingly, child sex offenders will be required to report their details to police once every three months, rather than annually. Those offenders who pose a significant risk to children and the community will be subject to additional reporting at the discretion of the Police Commissioner. The frequency at which an offender will be required to report will be linked to the risk that particular offender poses to the lives or sexual safety of children. Other amendments to the Child Protection (Offender Reporting) Act 2004 extend the types of personal information offenders are required to report to police and reduce the timeframes in which changes are to be made. Reporting times associated with travel within and outside of Queensland have also been reduced, closing the window of opportunity offenders have to operate before police can act. Significantly, the Bill defines when contact with a child must be reported. This new definition will remove the ambiguity associated with the previous term ‘unsupervised contact’. Any ‘reportable contact’ with a child must be reported within 24 hours of the contact occurring, regardless of whether the offender is in Queensland at the time of the contact.


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Exclusionary provisions for juvenile child sex offenders have been narrowed to child exploitation offences. However, the Police Commissioner will have the capacity to suspend the reporting obligations of juvenile child sex offenders in circumstances where the offender does not pose a risk to the lives or sexual safety of children. The Bill also provides police with new powers to enter the residence of a reportable offender for the purpose of verifying the information required to be reported under the Child Protection (Offender Reporting) Act 2014 and to take DNA from any offender who has not had his/her DNA taken in Queensland. DNA taken in Queensland will no longer have to be destroyed after an offender has completed his/her period of reporting. It is expected the legislation will be proclaimed in September 2014. Out-of-control events Out-of-control events legislation, under the Police Powers and Responsibilities Act 2000, commenced on 19 February 2014. The legislation provides police with additional powers to assist in the management of out-of-control parties and events and punishes organisers of out-of-control parties, or persons who cause these events to become out-of-control. Since its implementation on 19 February 2014 to 30 June 2014, there were 25 events for which out-of-control event powers have been authorised by police. Land use planning Land use planning contributes to natural hazard risk reduction and consequently improves community safety and resilience. The key focus is on risk reduction at the interface between communities and the natural hazard, and integrating risk reduction into the land use planning process. To support this, PSBA is contributing to the development of bushfire mitigation guidance to assist with implementation of the natural hazards component of the new State Planning Policy released in December 2013. Additionally, PSBA coordinates advice from the QFES and QPS regarding emergency response and service requirements for major projects on request from the Departments of State Development, Infrastructure and Planning, and Environment and Heritage Protection. The state-wide bushfire hazard mapping developed by PSBA is also used to guide major project assessment. In 2013-14, PSBA reviewed and provided advice on 32 Environmental Impact Statements and various small scale development projects on request where bushfire hazard was of concern. Surveys The PSBA aims to continuously improve organisational performance to better meet the public safety portfolio’s objectives. To deliver value to clients, stakeholders and the community, the PSBA embraces a performance management culture. Surveys are an important mechanism for seeking feedback from key stakeholders. During 2013-14, PSBA commenced the preparation of a number of surveys including the PSBA Client Satisfaction survey, the Emergency Services Volunteer survey and the Crime Victims survey. The PSBA also coordinated the ongoing National Survey of Community Satisfaction with Policing. Information gathered through these surveys will be used in agency performance management frameworks to guide service delivery enhancements, and satisfaction results will be incorporated into agency performance reporting. The PSBA will continue to work with its partner agencies to develop more meaningful performance measures in line with good practice guidelines.


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Queensland Retail Loss and Crime Committee In March 2014, the Queensland Retail Loss and Crime Committee (RLCC) was formed as a joint initiative of the PSBA, QPS, DJAG and the National Retail Association (NRA). The committee held its inaugural meeting in June 2014, chaired by a PSBA representative. The committee provides a forum for the Queensland Government and the retail sector to facilitate greater cooperative effort between state law enforcement officials and retailers in targeting organised crime in retail theft through the delivery of high level strategy and annual action plans. The RLCC held its inaugural meeting in June 2014 and will meet quarterly. Queensland youth strategy The Queensland Youth Strategy connecting young Queenslanders 2013 was released on 30 June 2013. The strategy is a whole-of-government initiative which aims to provide young people with connections and support so they can achieve their full potential and lead happy and productive lives. Key achievements for the public safety portfolio for 2013-14 included: the Queensland Police-Citizens Youth Welfare Association (commonly known as PCYC) in

partnership with the QFES and QPS, delivered a range of crime prevention and youth development initiatives, including the PCYC Emergency Services Cadet Program

School Based Police Officer and Adopt-a-Cop programs continued to operate in various schools throughout the state

QFES utilised online tools such as Facebook to provide information including safety tips to young people about weather and natural disasters

opportunities for young people to volunteer were promoted through the SES and Rural Fire Service Queensland.

Policy development During 2013-14, the PSBA Policy Branch coordinated policy development across the public safety portfolio and provided input on behalf of the portfolio to whole-of-government policy matters including the: establishment of the Queensland Fixated Threat Assessment Centre (QFTAC). The centre

facilitates interventions for fixated persons within Queensland, many of whom have an untreated mental illness, and undertakes assessment of the risk these individuals pose towards Public Office Holders (POHs). The QFTAC facilitates interventions for these fixated persons with a view to reducing the risk these persons pose towards POHs, the places in which they work and the prominent organisations and events in which they are involved

transportation of mental health patients. An agreement was signed in June 2014 outlining the processes that QPS, the Department of Health including the QAS, and Queensland Hospital and Health Services, will undertake when transporting mental health patients

provision of support to victims of crime and their families. Under a Memorandum of Understanding, on advice from the Department of Health, QPS engages with victims of crimes, committed by clients of mental health services, with a view to linking these victims with support services.

Bushfire Risk Planning Project Funded under the Natural Disaster Resilience Program for 2013-14, the Bushfire Risk Planning Project delivered the Bushfire Hazards mapping tool and subsequent report: A new methodology for State-wide mapping of bushfire prone areas in Queensland (www.communitysafety.qld.gov.au/Data/Bushfire_Prone_Area_Mapping_Report_5_Feb_2014_Low_Res.pdf). This project was undertaken in conjunction with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and provides hazard mapping based on a scientifically developed methodology, in response to the new single State Planning Policy, which was released in December 2013 (www.dsdip.qld.gov.au/about-planning/spp-mapping-online-system.html).


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This mapping will help local governments, rural fire brigades and other land management agencies identify locations that may be threatened by severe bushfires and develop plans for mitigating the potential impacts of future bushfires. National Police and Emergency Management Policy forums The PSBA Engagement Branch coordinates Queensland’s involvement in multi-jurisdictional Police and Emergency Management Policy forums. During 2013-14, the Engagement Branch coordinated information and prepared briefings and reports for senior officials as follows: Minister for Police, Fire and Emergency Services:

- Standing Council on Police and Emergency Management - Inter-Governmental Committee of the Australian Crime Commission

Commissioner, QPS - National Police Senior Officer Group (now known as National Policing Senior Officers Group) - Australia New Zealand Policing Advisory Agency - Australian Institute of Police Management - National Crime Statistics Unit - Australia New Zealand Council of Police Professionalism - Australia New Zealand Police Commissioners’ Forum - CrimTrac Board

Chief Executive Officer, PSBA - Australia-New Zealand Emergency Management Committee (ANZEMC) - Capability Development Sub-Committee.

The Engagement Branch also liaised with key stakeholders and other agencies to maintain Queensland’s profile and interests in these key forums.

Fraud Control Policy and Plan The PSBA’s Ethical Standards Unit developed the PSBA’s Fraud Control Policy and Plan. The policy and plan was adopted by the Office of the IGEM and QFES. The policy and plan was instituted following the Queensland Audit Office’s (QAO) sector wide review to improve departments’ Fraud Management Frameworks. The aim of the policy and plan is to minimise fraud risk and assist agencies in responding appropriately to allegations of fraud. Capital initiatives Significant capital initiatives delivered by PSBA on behalf of QFES and QPS during 2013-14 included: a new fire and rescue station at Brassall; replacement auxiliary fire and rescue stations at Millaa

Millaa and Clifton; and a replacement permanent-auxiliary fire and rescue station at Mareeba commenced construction of the replacement auxiliary fire and rescue stations at Ingham and

Pomona delivered 27 new and replacement urban fire appliances and 47 replacement rural fire

appliances, including the new Scientific Branch appliance delivered 29 floodboats to SES groups new modular police watchhouses at Burketown and Richmond upgraded closed circuit cameras (CCTV) at Beenleigh watchhouse upgraded facilities at Boondall and Broadbeach police stations replacement police station at West End replacement of 576 police vehicles specialist fit-out of 355 police vehicles for deployment during the G20 events


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replacement of six rigid inflatable boats and six jet skis one of three new catamarans was delivered to Brisbane in June 2014 and is undergoing testing

and sea trials before being placed into service in Cairns in late August 2014. The remaining two new catamarans are expected to be delivered to Brisbane to undergo testing, sea trials and training in October 2014 and December 2014 respectively before being placed into service in Townsville and the Whitsundays.

In 2014-15, QFES will continue to be responsible for delivering its minor works and planned building maintenance. PSBA will support QFES’ operational capability with the delivery of its capital program (major and medium), unplanned building maintenance, land and building acquisition and disposal program, vehicle replacement and growth programs, and vehicle maintenance programs (planned and unplanned). Commencing 1 July 2014, PSBA will deliver most new and ongoing capital initiatives on behalf of QPS including police accommodation facilities, motor vehicles, vessels and information technology. QPS will continue to be responsible for delivering specific operational equipment. Procurement Service Group During the year the PSBA Procurement Service Group, working with and on behalf of its portfolio partners, delivered a number of strategic procurement activities, and supported its portfolio partners with contracts and supply arrangements. Achievements for 2013-14 include establishment of: a Panel Arrangement for the supply of SES personal protective clothing, wet/cold weather

clothing and hats/caps for SES volunteers. This arrangement was awarded in December 2013 with a panel of four vendors and has been established for an initial term of two years

a Standing Offer Arrangement for the manufacture and supply of decontamination trailers. The supply of this critical item of equipment will significantly improve the mobility and capability of QFES in this area and enables the existing decontamination tents to be phased out from service. The arrangement was awarded in December 2013 to a local manufacturer and has been established for an initial period of three years with options to extend as appropriate

a Managed Service for motor vehicle impoundment services in May 2014. The Managed Service provides the full breadth of vehicle towing, storage and disposal services and is being progressively rolled out across the state enabling the QPS to enforce the Police Powers and Responsibilities (Motor Vehicle Impoundment) and Other Legislation Amendment Act 2013. A Managed Service of this nature has not previously been established within Australia

a contract for the design, manufacture, supply, installation and commissioning of point-to-point and fixed speed camera solutions within the Legacy Way tunnel. The procurement approach enabled existing infrastructure designs and lessons learned from previous tunnel installations to be leveraged, thereby reducing the need for significant new development or rework. The resultant contract facilitated close collaboration between the successful vendor and the Legacy Way tunnel prime contractor, ensuring timely delivery of the solution.

Regional College of Disaster Management Queensland’s mitigation, preparedness, response and recovery continued to be enhanced in 2013-14 with the signing of a two year partnership with the Australian Emergency Management Institute. Disaster management training delivered through the Regional College of Disaster Management provides a professional development pathway for eligible disaster management stakeholders with a role in Queensland’s disaster management arrangements. Delivery of the Advanced Diploma of Public Safety (Emergency Management) commenced on 23 June 2014 with 24 people from across local and state governments and non-government organisations beginning their studies. The Advanced Diploma covers a range of subjects including building community relationships, managing multi-agency response, developing emergency management exercises, and organising public safety awareness programs to help build strong, prepared, resilient communities.


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Delivery of the Graduate Certificate will commence in December 2014 and will focus on high-level leadership knowledge and skills for application across preparation, prevention, response and recovery phases of disaster management. Specialised training will be delivered at venues in Cairns, Brisbane and Rockhampton. Training provided through the Regional College of Disaster Management complements the training currently provided through the Queensland Disaster Management Training Framework. Increasing frontline resources During 2013-14, the QPS and PSBA continued to work towards delivering the government’s commitment for an additional 1,100 new police officers by July 2016. Approximately 850 new police officers were sworn-in, resulting in a net increase of around 520 police officers for 2013-14. For 2012-13 and 2013-14, there has been a total net increase of over 800 police officers. The QPS and PSBA are also working to move up to 200 police from behind desks to frontline by June 2016. A total of 100 positions have been reallocated to the frontline in the period 2012-13 to 2013-14, with a further 100 positions to be moved by 30 June 2016. Human Resources Information Solution The Human Resources Information Solution (HRIS) program will replace the existing payroll systems for PSBA, QFES, QAS within the Department of Health and QCS within DJAG, with an integrated core human resource, payroll and human capital management solution. The primary benefit of the program will be system continuity that will reduce the risk of human resource and payroll systems failing. The HRIS program outcomes are to achieve operational efficiencies through standardised and automated business processes and strategic capability to support planning and workforce management. Public Safety Network The Public Safety Network (PSN) is a secure data network service used by the QPS, PSBA and DJAG including Queensland correctional facilities. This one network provides inter-agency communications and reduces costs as agencies share network infrastructure and data links. Staff can connect to their agency network from over 800 PSN sites across Queensland; for example, police prosecutors can access QPS information directly from within a courthouse. The PSN supports real time operational services such as voice, radio, video conferencing and the Government Wireless Network (GWN). It also plays a crucial role in providing communication services for agency disaster responses. PSN allows the QPS to stream live video directly from disaster areas to police communication centres. Portable satellite communications facilities allow communications to be established within disaster sites where traditional network services are not available.


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Government Wireless Network The GWN is a new integrated digital wireless network improving communications, safety and security for Queensland’s public safety agencies and emergency workers. The network will deliver enhanced digital radio voice and narrowband data communications for the QFES, QPS and QAS. The technology will allow the police and emergency services to share information instantly and enable coordination between multiple agencies during significant events. The technology includes noise cancelling and speech clarity features that filter background noise to help ensure every word is heard during transmission, ensuring the personal safety of police and emergency services personnel is not comprised. In addition, the GWN portable and mobile radios are equipped with GPS-enabled duress alarms to further improve the personal safety of police and emergency workers. The GWN will be implemented to support the G20 meetings in Cairns and Brisbane in late 2014 with widespread deployment across South East Queensland expected to be completed by 2016. Mobile Data Strategy During 2013-14, more than 800 QPS frontline officers were issued with iPhones and iPads, giving them better access to information. These devices can save each police officer up to 30 minutes per shift in desk time. The technology provides a platform for myriad functions and, in the future, will include applications such as fingerprint and facial recognition technology. The system, known as QLiTE, has been deployed to officers from Far North Queensland (Thursday Island) to Surfers Paradise and remote patrols in the north west of the state. A further 1,250 devices are expected to be rolled out in time for the G20 Leaders’ Summit in November 2014. The QPS QLiTE Mobile Pilot team has won multiple awards. The first two awards were the major CeBIT award of Overall Excellence in eGovernment and the Applications Development Sub-Category award for the QLiTE Mobile Pilot at the 2014 Australian Government Information Management ICT Awards held in May 2014. Further recognition was achieved at the June 2014 iAwards where the Minister for Science, Information Technology, Innovation and the Arts presented the State Award Winner ‘Government’ category to QPS for its achievements with QLiTE. The use of mobile technologies is driving a radical transformation of frontline policing operations and the pilot of the QLiTE product is the first initiative enabling the QPS to begin this transformation. This first generation of QLiTE provides QPS with the ability to perform on-demand information searches and capture in-field information using mobile devices. Queensland Police Service e-Rostering The QPS e-Rostering project will provide real time data on staffing levels and deployment. e-Rostering will enable more detailed analysis of where employee expenses are being incurred. The project outcome is to achieve operational efficiencies through standardised and automated business processes. The following main deliverables were achieved in 2013-14: completion of a full business case the Current State and Future State business process documents were reviewed and accepted by

the key stakeholders and the business focus and specialist groups the Business Requirements Specifications were reviewed and accepted by the business focus

group.


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Emergency Vehicle Priority Emergency Vehicle Priority (EVP) technology was trialled in early 2013 with 50 EVP-intersections on the Gold Coast providing ten QAS and ten QFES vehicles with green lights during emergency response situations. As an ambulance or fire appliance approaches a set of traffic lights with its emergency beacons on, EVP requests the traffic management system to give a green light, which it does when it is safe to do so. The system is designed to minimise the disruption to traffic and seeks to return to normal traffic conditions as quickly as possible after the emergency vehicle has passed. Analysis of data collected during the trial showed a 10-20% improvement in travel times along the main routes used. As at 30 June 2014, there were 165 EVP-enabled intersections on the Gold Coast providing 19 QAS and 18 QFES vehicles with green lights during emergency response situations. In June 2014, EVP was enabled in the Bundaberg area, with 32 EVP-enabled intersections providing 13 QAS and seven QFES vehicles with green lights during emergency response situations. EVP won the National and Queensland 2013 iAward in the Service Domain – Government Category for outstanding ICT innovation dedicated to improved government service delivery to the community. It is planned to implement EVP in other locations throughout 2014-15 including continued expansion across the Gold Coast, Townsville, Logan, and parts of northern Brisbane. Plans to trial EVP in ten QPS vehicles on the Gold Coast in early 2015 are well underway. Information and Communications Technology Audit The public safety portfolio is proactively responding to the findings of the 2013 whole-of-government Information and Communications Technology (ICT) Audit and subsequent strategy and action plan. Key initiatives under the ICT strategy and action plan relating to the portfolio include: replacing the payroll system for QAS, QCS, QFES and PSBA development of an ICT ‘As A Service’ roadmap for the portfolio development of an ICT workforce transformation plan for PSBA supporting the Department of Science, Information Technology, Innovation and the Arts in

transitioning to a digital economy. Significant initiatives to improve community safety outcomes are also underway, including: an information exchange project that will increase information sharing between local and state

agencies increasing situational awareness during disaster situations expansion of the mobility services program to reduce administrative overhead on police officers

enabling them to spend more time at the frontline investigations into extending the use of satellite technologies to provide access to

communications in remote and rural areas enabling responders to perform their roles in a safe and controlled manner.

2014 G20 events Brisbane will host the G20 Leaders’ Summit in November 2014 and Cairns will host the G20 Finance Ministers’ and Central Bank Governors’ meeting in September 2014. Up to 35 Internationally Protected Persons, 4,000 delegates and 3,000 media representatives are expected to attend the Leader’s Summit in Brisbane and up to 2,000 delegates and media representatives are involved in the Finance Ministers’ and Central Bank Governors’ meeting. A number of ICT systems have been implemented in preparation for the policing requirements for the G20 meetings including: ICT fit out of the purpose built Police Operations Centre and Joint Intelligence Group facility with

heavy reliance on technology and critical integration with other government agencies for a co-ordinated approach

specific solutions to handle policing operations of such a large event, including logistics, secure event management and asset management


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purpose built solution for intelligence gathering and analysis network security hardened environment for core infrastructure, data and systems secure integration with existing key solutions in operation within QPS use of mobile technology to allow greater efficiency and access to critical operational information. To increase cyber security, the following were achieved in 2013-14: implementation of system hardening mitigation strategies to minimise the likelihood of a

successful cyber incident upgrade of the Network Operations Centre to increase the ability to manage cyber-attacks upgrade of less secure operating systems and applications across the public safety portfolio

network active participation in whole-of-government activities through the Queensland Government Chief

Information Office to minimise the likelihood of a successful cyber-attack against the public safety portfolio’s websites and interfaces.


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CORPORATE GOVERNANCE

Executive management Board of Management profiles

Kelvin Anderson PSM, BA, Executive Fellow, ANZSOG Chief Executive Officer Kelvin was appointed as the Chief Executive Officer of PSBA on 1 November 2013. As Chief Executive Officer, Kelvin is responsible for leading the agency to ensure a safe and secure Queensland. Kelvin sets the direction for the agency to provide high quality and sustainable executive, corporate and business services and enable the portfolio to deliver the best public safety services in the nation. During Kelvin’s 30 year career in the public service, he has held the positions of Director-General of the former DCS, Commissioner, QCS and Commissioner of Corrections in Victoria. Kelvin was awarded the Public Service Medal in the Queen’s Birthday Honours list in 2008 for Outstanding Contribution to Correctional Services. He holds a Bachelor of Arts, has completed the Executive Fellows program with the Australia and New Zealand School of Government and participated in the Leading Australia’s Future in Asia Program. Pat Vidgen Deputy Chief Executive Officer In January 2014, Pat commenced in the role of Deputy Chief Executive Officer within PSBA. In this role, Pat is responsible for supporting the delivery of outcomes for portfolio partner agencies through executive oversight of Information Technology, Business Services, Human Resources, Operations including State Government Security and Blue Card Services from 1 July 2014, and QGAir. In addition, Pat oversees the continued support of ICT functions to QAS within the Department of Health. Prior to his appointment to the PSBA, Pat worked in DPC where he held senior positions in the areas of Constitutional and Administrative Law Services, Security Planning and Coordination and State Affairs. In 2007 he was appointed to the role of Deputy Director-General, Governance where he was responsible for managing the delivery of corporate and executive services. Rod Wilson General Manager, Business Services Division The General Manager, Business Services Division is responsible for leading and managing the delivery of financial, built and fleet assets, and procurement services to the public safety portfolio agencies, selected non-profit organisations and commercial partners. In November 2013, Rod transitioned from the QPS to PSBA to take up the role of General Manager. Rod has approximately 25 years’ experience in a variety of private sector and government finance and senior corporate service management roles and is a member of the Institute of Public Accountants and a graduate of the Australian Institute of Company Directors. Rod has worked extensively on the implementation of a number of significant whole-of-government reforms and has played significant leadership roles in the start up of new government entities. Rod sees his primary objective as leading and delivering high quality business services in support of strategic and operational service delivery.


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Board of Management profiles (cont’d)

Fiona Rafter Executive Director, Ministerial and Executive Services The Executive Director, Ministerial and Executive Services is responsible for leading and managing the provision of legal services and internal audit services to the PSBA and its portfolio partners. The Executive Director oversees the Ethical Standards Unit and Information Management Unit which includes the management of Right to Information and Information Privacy applications for PSBA and its portfolio partners. The Executive Director also leads the provision of executive services to the Chief Executive Officer and Cabinet, Parliamentary and executive services to the Minister. Fiona was admitted as a solicitor in 1988 and has practised in the private and public sectors. Appointed as an Executive Director in 2006, she has undertaken various leadership roles across public safety agencies before commencing in the PSBA in November 2013. Fiona holds an Executive Masters of Public Administration and is currently completing her Masters in Law at the University of Queensland. Bruce Moy Executive Director, Strategy Bruce was appointed in November 2013 as Executive Director, Strategy. Prior to this, Bruce was a member of the QPS executive leadership team for nine years where he was responsible for the delivery of strategic and executive services. Bruce is responsible for strategic policy; legislation; strategic and operational planning; budget submissions and papers; PSBA corporate governance; performance reviews and reporting; national forums; the National Drug Strategy; intergovernmental relations; land use planning; evaluation brokerage; and risk and capability assessment. Bruce is leading the Division to improve business practices and processes, cross-agency coordination, service delivery outcomes and efficiency, and alignment with whole-of-government policies, priorities and direction. Bruce initially joined the QPS as a cadet in 1988 and was promoted to the rank of Inspector in 1999 before moving into a civilian policy role in 2001. Bruce holds a Master of Public Administration from the University of Queensland and a Bachelor of Business from the Queensland University of Technology. He has been awarded the QPS Medal, 25 year clasp, and the Commissioner’s Award for Meritorious Service.

Boards and committees The PSBA governance structure comprises the Board of Management and the Demand and Resource Committee. There are also two public safety portfolio decision making bodies: Public Safety Portfolio Innovation Committee Public Safety Portfolio Audit and Risk Committee.

Two other high level committees support coordination and collaboration across the portfolio but do not form part of the PSBA corporate governance decision making structure: Public Safety Executive Coordinating Committee Public Safety Portfolio Renewal Committee.


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A PSBA corporate governance framework known as IDA – ideas > decisions > actions – has been implemented to ensure PSBA can achieve its strategic goals and operational objectives, monitor and assess risk, and optimise performance.

Details about the public safety portfolio committees are available on page 8. Board of Management The Board of Management is the key governance group for PSBA. The Board provides leadership and direction on strategic and operational issues and supports the Chief Executive Officer as the accountable officer in achieving efficient, effective and financially responsible management of PSBA. The Board was formed following the machinery-of-government changes on 1 November 2013 that established the PSBA. The Board meets monthly unless otherwise determined by the Chair. Extraordinary meetings may be called at the discretion of the Chair. The Board held its first meeting on 28 February 2014. As at 30 June 2014, the Board had met on five scheduled occasions and conducted one extraordinary meeting. Board members Kelvin Anderson, Chief Executive Officer (Chair) Pat Vidgen, Deputy Chief Executive Officer Rod Wilson, General Manager, Business Services Division Fiona Rafter, Executive Director, Ministerial and Executive Services Bruce Moy, Executive Director, Strategy

Achievements include: Approved the:

- Terms of Reference governing the role and membership of the Board - Terms of Reference for the Demand and Resource Committee - Public Safety Business Agency Strategic Plan 2014-2018 - PSBA Operational Plan 2014-15 - Public Safety Business Agency Business Continuity Planning Policy and Guide - Public Safety Business Agency Guide to Strategic and Operational Planning and

Operational Risk Management 2014-15 - IDA Handbook.

Prioritised PSBA activities for 2014-15. Demand and Resource Committee The Demand and Resource Committee’s role is to make decisions regarding alignment of resources such as human, financial, physical assets and information technology, with demand for service. The committee was formed following the machinery-of-government changes on 1 November 2013 that established the PSBA. The committee meets monthly unless otherwise determined by the Chair. Extraordinary meetings may be called at the discretion of the Chair or through direction from the Chief Executive Officer. The committee held its first meeting on 13 March 2014. As at 30 June 2014, the committee had met on two occasions.


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Demand and Resource Committee (cont’d) Committee members Pat Vidgen, Deputy Chief Executive Officer (Chair) Rod Wilson, General Manager, Business Services Division Patsy Jones, Executive Director, Human Resources Jenson Spencer, Executive Director, Information Technology Peta Robertson, Executive Director, Operations Bruce Moy, Executive Director, Strategy

Achievements include: Approved:

- the Demand and Resource Committee Terms of Reference - a range of PSBA Information Security Management policies for implementation across the

public safety portfolio.

Ethics and Code of Conduct

Ethical Standards The Ethical Standards Unit is responsible for the assessment of allegations of corrupt conduct committed by employees in the Office of the IGEM, PSBA and QFES and referring such allegations to the Crime and Corruption Commission (formerly Crime and Misconduct Commission). The unit’s assessment of allegations of suspected corrupt conduct also involves assessing whether information provided by persons making complaints amounts to a public interest disclosure, pursuant to the Public Interest Disclosure Act 2010. The unit collects reportable data on disclosures and provides advice to managers on their obligations to support persons that have made a disclosure under the Act. The unit undertakes workplace investigations into serious allegations of corrupt conduct and misconduct and refers less serious allegations back to management to deal with.

Code of Conduct The agency operates under the Code of Conduct For the Queensland Public Service. The code contains the ethics principles for the public sector and their associated set of values prescribed in the Public Sector Ethics Act 1994. It also contains standards of conduct for each ethics principle. The ethics principles are: integrity and impartiality; promoting the public good; commitment to the system of government; and accountability and transparency. The code describes how we will conduct ourselves in delivering services to the Queensland community. As the provider of strategic and corporate services to the public safety portfolio agencies, PSBA assumed responsibility for public sector ethics and Code of Conduct training for the portfolio excluding QPS. PSBA first became an entity on 1 November 2013 with staff transitioning to PSBA up until 1 July 2014. Staff that transitioned to the PSBA were previously employed in a number of different organisations such as the former DCS including Emergency Management Queensland and QFES, QPS and State Government Security. A number of different public sector ethics and Code of Conduct processes were in place in these organisations. During 2014-15, it is intended to implement standardised public sector ethics and Code of Conduct training within the public safety portfolio, excluding QPS which retains responsibility in these areas for QPS employees. Existing online training tools will be adopted and made available to employees.


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Risk management and accountability

External accountability This section provides information about external agencies and processes which examined the operations of the former DCS and/or QPS during 2013-14 with findings/recommendations requiring consideration by PSBA. Police and Community Safety Review PACSR examined the QPS and DCS, which comprised the QAS, the Queensland Fire and Rescue Service, QCS and Emergency Management Queensland. On 10 September 2013, PACSR culminated in the public release of a report titled Sustaining the Unsustainable. The report made 127 recommendations and 77 findings of varying complexity. The report is available online at www.premiers.qld.gov.au/publications/categories/reports/police-community-safety.aspx. Responsibility for implementation of the recommendations and findings is allocated across seven Queensland Government agencies and departments. On 8 May 2014, authority for formal closure of PACSR recommendations and findings transitioned from the whole-of-government PACSR Implementation Steering Committee to the relevant Minister. The public safety portfolio was allocated 100 recommendations and 76 findings. An Implementation Team within PSBA was formed to oversee implementation of the accepted recommendations and findings within the portfolio. As at 30 June 2014, 54 recommendations and findings overseen by the public safety portfolio are complete, including some joint agency matters. Implemented recommendations and findings include: the creation of PSBA the establishment of QFES establishment of the Office of the IGEM to provide assurance and advice that enables confidence in

Queensland’s emergency management arrangements transfer of QAS to the Department of Health and QCS to DJAG co-location of the QPS Disaster Management Unit in the SDCC assent of the Public Safety Business Agency Act 2014 on 21 May 2014 to establish PSBA as a

public service office to perform the corporate and business support functions for the Office of the IGEM, QFES, QPS and PSBA.

The implementation of recommendations and findings is continuing. Queensland Audit Office The Queensland Audit Office (QAO) supports the role of the Auditor-General of Queensland in providing Parliament with an independent assessment of the financial management and performance activities of public sector entities. The QAO provides an independent audit service and reports to Parliament to enhance public sector accountability. QAO reports are available online at www.qao.qld.gov.au.


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During 2013-14, the following reports with significant findings or issues were tabled by the QAO in the Legislative Assembly relating to the former DCS and/or QPS and require consideration by PSBA: Report to Parliament 10: Contract management: renewal and transition. The audit’s objective

was to examine whether agencies were demonstrably achieving value for money from their goods and services contracts, and in their decisions to extend, renew or re-tender their contracts.

The QAO recommended that all departments: 1. develop and implement a contract management capability framework to ensure the

department has sufficient, appropriately skilled resources to manage contracts effectively. 2. develop and apply a risk/value matrix approach to:

- define expectations for effective contract management and establish supplier performance monitoring regimes to ensure value for money is realised with contracts

- allocate resources commensurate to the risk of contracts for efficient contract administration.

3. validate the value for money proposition of a contract before extending or renewing it by reviewing: - the original assessment of risk, demand and the supply market - the supplier’s performance.

4. implement a contract management lifecycle system to enable: - consistent monitoring of supplier performance - spend analysis - an early trigger to prepare for contract expiry.

In response to the recommendations, PSBA on behalf of the public safety portfolio: will be adopting the Capability Framework and training materials under development by the

Procurement Transformation Division (PTD) within DHPW. The framework and training materials are expected to be available in late 2014 (recommendation 1)

has commenced a project to implement the PTD Contract Management Framework and the whole-of-government Contract LifeCycle Management system (recommendations 1 and 4)

has adopted and is rolling out the value/risk matrix tool developed by PTD (recommendation 2)

is rolling out the PTD checklist, review template and fact sheet for contract renewals and extensions (recommendation 3).

Report to Parliament 18: Monitoring and reporting performance. The audit’s objective was to assess whether the core, general government and public sector departments included in the Service Delivery Statements (2013-14 State Budget Paper) are efficiently and effectively measuring, monitoring and reporting on their non-financial performance. The QAO recommended that: 1. departments apply a service logic approach to define their service areas so that they only

group services where they contribute to common objectives and outcomes. 2. QTT and DPC update their mandatory guidance to require:

- service standards that relate to whole-of-government objectives and outcomes to be reported at the ministerial portfolio or departmental level, not at the service standard level

- where a service area comprises multiple services, that each material service has a separate line item budget and at least one efficiency service standard and one effectiveness service standard.

3. departments be required to publish an audited performance statement in their annual report to complement their audited financial statements.

In response to the recommendations, PSBA will continue to work with its partner agencies within the public safety portfolio to improve the quality of performance information, with work already underway for improved measures of efficiency and effectiveness. The PSBA will ensure the portfolio complies with guidelines issued by DPC and QTT, including any changes to requirements resulting from the QAO’s audit.


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Internal audit The Internal Audit Unit is an independent unit that reports to the Executive Director, Ministerial and Executive Services and Chief Executive Officer. The unit provides independent advice across a wide range of disciplines including risk, assurance, information technology, finance, compliance and general consulting activities for the Office of the IGEM, PSBA and QFES. The work of the Internal Audit Unit is undertaken in accordance with the Institute of Internal Auditors standards and under an approved charter. In accordance with the Financial and Performance Management Standard 2009, an annual audit plan sets the direction for the unit for the year ahead and a strategic plan for four years ahead. The unit, as secretariat to the Public Safety Portfolio Audit and Risk Committee, ensures that all relevant guidelines, particularly QTT’s Audit Committee Guidelines Improving Accountability and Performance, are closely followed and that the function of the unit complies with these guidelines in all material respects. The unit assists management to achieve its objectives by using a systematic, disciplined approach to review and improve the effectiveness of risk management, and internal control and governance processes, improving the overall level of compliance and accountability. Under its charter, the unit can undertake a series of review types including compliance (effectiveness), performance (efficiency), financial management and information technology, to identify areas of risk and to improve outcomes. Systems are in place to ensure the effective, efficient and economic operation of the audit function. Achievements for 2013-14 include: completed the adjusted annual program of work as per the approved Interim Annual Audit Plan facilitated the establishment of the Public Safety Portfolio Audit and Risk Committee aligned the strategic focus of the internal audit function to assist PSBA to meet its key

objectives and strategies outlined in the Public Safety Business Agency Strategic Plan 2014-2018.

From 1 July 2014, QPS internal audit functions will be undertaken by the PSBA Internal Audit Unit.

Information systems and recordkeeping PSBA, as the provider of strategic and corporate services to Queensland’s public safety agencies, is responsible for recordkeeping and information systems across the portfolio. Following the machinery-of-government changes in 2013-14, planning is underway to organise and review corporate resources and approaches to support information systems and recordkeeping, such that an efficient and unified approach is taken across the public safety portfolio. Activities underway include a process to optimise and align retention and disposal business processes, and updating retention and disposal schedule documentation. Planning and scoping exercises are also underway with respect to deploying a single electronic content management system (eDRMS) across the portfolio. PSBA has an Instrument of Authorisation regarding access and disposal of public records in accordance with the Public Records Act 2002.


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Human resources

Workforce planning, attraction and performance The total number of full-time equivalent staff for PSBA as at 30 June 2014 was 833.5. An additional 1,573.1 full-time equivalent staff will transition to PSBA on 1 July 2014 as part of the machinery-of-government arrangements. PSBA first became an entity on 1 November 2013 with staff transitioning to PSBA up until 1 July 2014. As such, details relating to permanent separation rates, attraction and retention strategies, induction, staff development, performance management, talent management and recognition, flexible working arrangements, and industrial and employee relations for the period 1 July 2013 to 30 June 2014 are not available. Policy review A review was undertaken by PSBA Human Resources (HR) of the HR policies for staff members that transitioned to PSBA from across the public safety portfolio with a new set of PSBA HR policies to be created on 1 July 2014. The review further identified the need to redefine HR policies from prescriptive process statements to more principle based policies in line with the government’s red tape reduction strategies. Safety and wellbeing PSBA Safety and Wellbeing personnel attended training and planning workshops on Injury Management and Health, Safety and Wellbeing during 2013-14. These workshops assisted in establishing new teams and approaches to improve the support and assistance provided to the public safety portfolio agencies. New work programs and activities are being developed by PSBA HR and opportunities have been identified to share programs across the public safety portfolio to assist in the development of safety and injury management programs. Employee assistance The Employee Assistance Service helps prevent and manage mental health issues for employees across the public safety portfolio by providing advice, counselling and referral to external services for a full range of organisational and personal issues. Specialist officers are available to assist staff and include internal and external psychologists, social workers and trained Peer Support Officers. The QFES FireCare and EMQ Embrace Employee assistance programs have been merged and will be available to support QFES employees and PSBA employees located at Kedron on mental health and wellbeing issues. The city based Human Services Officers will support Brisbane City based PSBA employees. PSBA will continue to manage the Employee Assistance Service for the portfolio agencies. Health and fitness A new health and fitness team was established within PSBA HR in November 2013, consisting of employees from the QPS HealthStart Program and the former QFRS Fitness section, to support and assist staff within the public safety portfolio to improve their health and fitness. A broad range of programs and services were available in 2013-14 to assist staff to improve their fitness and health.


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QPS performance review and development process A fully revised performance review and development process, based on the QPS Leadership Framework and featuring Employee Self Service and reporting capability, will be delivered by PSBA to the QPS on 1 July 2014. This will coincide with the implementation of the employee capability frameworks, which apply to recruitment and selection processes as well as performance management. In addition, the QPS’s new Operational Capability Command will coordinate strategic performance reviews, and provide advice and support to operational performance reviews. 5MILE (5 minute intensive learning experience) PSBA, on behalf of QPS, introduced 5MILE in 2013-14 which reinforces, updates and refreshes the skills of an operational police officer. 5MILE is intended to address highly relevant, high risk or high volume issues and takes no longer than five minutes to complete. QPS alcohol and drug testing The PSBA continues to conduct alcohol and drug testing in support of the QPS’ commitment to enhance police wellbeing, safety and integrity within the workplace. As at 30 June 2014, 1,215 members had undergone a random alcohol breath test with nil positive results. Following critical incidents, 53 alcohol breath tests and 48 urine drug tests were conducted. While two positive drug results were detected, these were found to be because of medical treatment or lawful use of over the counter medication. Fatigue prevention and management The QPS uses expert advice on fatigue management and prevention in its education, policy, risk assessment, and operational planning. Approximately 1,600 police and supervisors have been trained in fatigue management. An online learning product for all members of the QPS was developed and released in June 2014, enabling employees to understand their fatigue risks and to minimise and manage them. PSBA will be rolling out further training in fatigue management across the state for the public safety portfolio agencies in 2014-15. QFES recruitment The PSBA closely monitors QFES staffing levels, the age profiles of operational staff and current and projected attrition rates. Lower than expected attrition rates have reduced the number of available positions for which QFES needs to recruit firefighters. One firefighter training course was conducted in 2013-14 with 16 recruit firefighters appointed. A firefighter training course is scheduled to commence in August 2014 with 32 recruit firefighters. The training course will be conducted by PSBA on behalf of QFES. QPS academies The PSBA manages the three QPS major training centres at Oxley Academy, Townsville Academy and the Driver Training Facility at Wacol. The QPS academies continue to play a vital role in ensuring the ongoing training and development of frontline police officers. Legal protection – civil liability Legislation passed by Queensland Parliament in February 2014 sees the State Government provide protection to its employees for civil claims made against them when doing their jobs. The legislation strengthens the different types of protection offered to Queensland Government employees including police and emergency workers. The legislation also covers public servants who work at desks or customer service counters.


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Under the Queensland Government Indemnity Guideline, government employees can receive an indemnity and legal assistance if they are involved in work-related criminal proceedings, inquiries and investigations. Employees will still be accountable for their actions and the government can recover funds from employees where they have not acted in good faith and have been grossly negligent. Working for Queensland survey The Queensland Government’s 2014 Working for Queensland survey was conducted in May 2014. The survey, sent to approximately 220,000 Queensland Government employees, explores employee perceptions of workplace climate including employee engagement, job satisfaction and leadership within the public service, in the hope of identifying better ways of working. Survey results are expected to be available in October 2014.

Early retirement, redundancy and retrenchment During the reporting period, no employees received redundancy packages. An employee who did not accept an offer of a redundancy was offered case management for a set period of time, where reasonable attempts were made to find an alternative employment placement. At the conclusion of this period, and where it was deemed that continued attempts of ongoing placement were no longer appropriate, the employee yet to be placed was terminated and paid a retrenchment package at a cost of $61,087.06.


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FINANCIAL SUMMARY

Summary of financial performance Statement of comprehensive income 2013-14

$’000

Total income from continuing operations

688,052

Total expenses from continuing operations

691,536

Other comprehensive income

13,190

Total comprehensive income

9,706

Statement of financial position

Total assets

811,229

Total liabilities

59,268

Net assets (equity)

751,961

As a result of the machinery-of-government changes and the transfer of functions from and to PSBA (refer to the Public safety portfolio overview), direct comparisons cannot be made between results in 2013-14 and 2012-13. Income and expenses from continuing operations The PSBA incurs expenditure to provide strategic and corporate services to the Office of the IGEM, QFES and QPS, allowing these partner agencies to continue to focus on frontline service delivery. The PSBA also performs operational functions including QGAir, State Government Security and, from 1 July 2014, Blue Card Services. The PSBA is funded to deliver the above services through parliamentary appropriations along with other revenue sources including advisory and consultancy services, commercial and community training, commercial contract services, federal government grants, donations and sponsorships, and fees for attendance at incidents. A revaluation decrement of $12.6 million was recognised in 2013-14 for land assets. This was due mainly to the devaluation of land at the Emergency Services Complex at Kedron as a result of volumetric constraints and restrictions to the developable area resulting from the construction works of the Airportlink tunnel.


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For 2013-14, the PSBA received income from continuing operations of $688.1 million and incurred total expenditure from continuing operations of $691.5 million. This was comprised of: Income appropriation revenue for services $420.2 million user charges and fees $77.9 million emergency management levies $130.4 million (representing revenue from this source for four

months) grants and other contributions $53.3 million other revenue $6 million gains on disposal and re-measurement of property, plant and equipment $0.3 million.

Expenses employee expenses $381.9 million supplies and services $175.8 million depreciation and amortisation $93.4 million grants and subsidies $15.7 million impairment losses $0.5 million finance and borrowing costs $0.6 million revaluation decrement $12.6 million other expenses $11.1 million.

Summary of financial position PSBA was in a positive financial position at the end of the financial year. The total equity/net assets of the PSBA at the end of 2013-14 were $752 million. This was comprised of: Assets cash and cash equivalents $67.8 million receivables $30.2 million other current assets $2.3 million non-current assets classified as held for sale $1.6 million intangible assets $4.6 million property, plant and equipment $704.7 million. Liabilities payables $43.4 million other financial liabilities

- current $1.4 million - non-current $9.8 million

accrued employee benefits $1.6 million, other current liabilities $3.1 million.


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42

Public Safety Business Agency Notes to and forming part of the financial statements for the year ended 30 June 2014

Foreword The Public Safety Business Agency was established to provide strategic and corporate services to public safety agencies in Queensland allowing them to concentrate on frontline service delivery. It also performs operational functions including Government Air Services, State Government Security, and Blue Cards (Working with Children suitability checks). The department was established on 1 November 2013 under The Public Service Departmental Arrangements Notice (No. 8) 2013. The department was established on that date when the Department of Community Safety was renamed Public Safety Business Agency. The Public Safety Business Agency Act 2014 has established the agency as a public service office from 21 May 2014.The effective date for the redistribution of the public business of the department to the agency will be 1 July 2014. The agency is controlled by the State of Queensland which is the ultimate parent. The financial statements for the Public Safety Business Agency have been prepared in accordance with the Financial and Performance Management Standard 2009 and other requirements detailed in note 2(a). The financial statements have been prepared on the basis that the department was operating from 1 July 2013 and continued to operate with some of its functions being redistributed progressively, commencing 1 October 2013. The departmental functions were redistributed as follows: Function Transferred to Date of Transfer Queensland Ambulance Service Queensland Health 1 October 2013 Queensland Corrective Services Department of Justice and Attorney-

General 1 November 2013

Queensland Fire and Rescue Services

Queensland Fire and Emergency Services (part) and Public Safety Business Agency (part)

1 November 2013

Emergency Management Queensland

Queensland Fire and Emergency Services (part) and Public Safety Business Agency (part)

1 November 2013

Natural Disaster Relief and Recovery Arrangement, Natural Disaster Resilience Program, and Get Ready Queensland

Department of Local Government, Community Recovery and Resilience

1 November 2013

Additionally a number of functions from other agencies were transferred to the Public Service Business Agency as follows: Function Transferred From Date of Transfer Queensland Government Air Service

Department of the Premier and Cabinet 1 November 2013

State Government Security Department of Housing and Public Works

1 January 2014

Queensland Police Air Wing Queensland Police Service 1 November 2013 The financial statements report the agency’s assets, liabilities and equity as at 30 June 2014, and income and expenses for the period 1 July 2013 to 30 June 2014.


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The financial statements have been prepared to provide the following users with information relevant to the agency’s financial performance and its financial position: • Minister for Police, Fire and Emergency Services • Assistant Minister for Emergency Volunteers • Members of the Legislative Assembly of Queensland • Community organisations • Government and semi-government instrumentalities • Our partners.


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Public Safety Business AgencyStatement of Comprehensive Incomefor the period 1 July 2013 to 30 June 2014

Notes 2014 2013$'000 $'000

Appropriation revenue for services 3 420,175 1,242,008 User charges and fees 4 77,883 171,490 Emergency management levies 5 130,370 347,799 Grants and other contributions 6 53,326 36,417 Other revenue 7 6,034 24,306

Total Revenue 687,788 1,822,020

Gains on disposal/remeasurement of assets 8 264 1,954

688,052 1,823,974

Employee expenses 9 381,930 1,087,762 Supplies and services 11 175,759 457,388 Depreciation and amortisation 12 93,430 183,968 Grants and subsidies 13 15,699 29,983 Impairment losses 14 503 1,460 Finance / borrowing costs 15 564 235 Revaluation decrement 16 12,598 5,035 Other expenses 17 11,053 56,955

691,536 1,822,786

(3,484) 1,188

Other Comprehensive Income

Items that will not be reclassified subsequently to Operating Result:

Increase (decrease) in asset revaluation surplus 31 13,190 (46,482)

Total Items that will not be reclassified subsequently to Operating Result 13,190 (46,482)

Total Other Comprehensive Income 13,190 (46,482)

Total Comprehensive Income 9,706 (45,294)

The accompanying notes form part of these statements.

Operating Result from Continuing Operations

Total Expenses from Continuing Operations

Income from Continuing Operations

Total Income from Continuing Operations

Expenses from Continuing Operations


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Public Safety Business AgencyStatement of Financial Positionas at 30 June 2014

Notes 2014 2013$'000 $'000

Cash and cash equivalents 18 67,778 18,790 Receivables 19 30,173 199,411 Inventories 20 - 9,346 Biological assets 21 - 65 Other current assets 22 2,306 8,014 Other financial assets 23 - 24

100,257 235,650 Non-current assets classified as held for sale 24 1,605 2,715

101,862 238,365

Biological assets 21 - 258 Intangible assets 25 4,643 30,711 Property, plant and equipment 26 704,724 3,339,418

709,367 3,370,387

811,229 3,608,752

Payables 27 43,373 105,293 Other financial liabilities 28 1,378 - Accrued employee benefits 29 1,636 43,817 Other current liabilities 30 3,057 140

49,444 149,250

Other financial liabilities 28 9,824 - 9,824 -

59,268 149,250

751,961 3,459,503

Contributed equity 665,205 3,382,455 Accumulated surplus 58,400 48,181 Asset revaluation surplus 31 28,356 28,867

751,961 3,459,503


Total assets

Current liabilities

Total current liabilities

Non-current liabilities

Total equity

Total non-current liabilities

Total liabilities

Net assets

Equity

Current assets

Total current assets

Non-current assets

Total non-current assets


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Public Safety Business AgencyStatement of Changes in Equityfor the period 1 July 2013 to 30 June 2014

Accumulated

Surplus/Deficit

Asset Revaluation

Surplus

Contributed

Equity

TOTAL

(Note 31) $'000 $'000 $'000 $'000

Balance as at 1 July 2012 46,994 75,349 3,429,260 3,551,603

Operating result from continuing operations 1,188 - - 1,188

Increase/(decrease) in asset revaluation surplus - (46,482) - (46,482)

1,188 (46,482) - (45,294)

Appropriation equity withdrawals (Note 3) - - (106,025) (106,025) - - 59,426 59,426 - - (204) (204)

- - (46,805) (46,805)

Balance as at 30 June 2013 48,181 28,867 3,382,455 3,459,503

Balance as at 1 July 2013 48,181 28,867 3,382,455 3,459,503

Operating result from continuing operations (3,484) - - (3,484)

Increase/(decrease) in asset revaluation surplus - 13,190 - 13,190

(3,484) 13,190 - 9,706

Appropriation equity withdrawals (Note 3) - - (39,530) (39,530) - - 24,357 24,357

- - (2,702,080) (2,702,080) Transfers to retained surplus for assets transferred through machinery-of-government changes 13,702 (13,702) - -

13,702 (13,702) (2,717,250) (2,717,250)

Balance as at 30 June 2014 58,400 28,356 665,205 751,961


Total other comprehensive income

Assets transferred (to)/from other departments

Other comprehensive income

Transactions with owners as owners

Appropriation equity injections (Note 3)

Total Comprehensive Income for the Year

Net Transactions with Owners as Owners

Total Comprehensive Income for the Year

Net Transactions with Owners as Owners

Transactions with owners as owners

Appropriation equity injections (Note 3)Net transfers to/from other Queensland Government entities including machinery-of-government changes


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Public Safety Business AgencyStatement of Cash Flowsfor the period 1 July 2013 to 30 June 2014

Notes 2014 2013 $'000 $'000

Cash flows from operating activities

Inflows:

Service appropriation receipts 521,330 1,128,604

User charges and fees 77,095 157,960

Emergency management levies 129,824 346,666

Grants and other contributions 47,298 36,686

GST collected from customers 8,916 16,624

GST input tax credits from ATO 34,226 62,561

Interest receipts 476 1,297

Other 6,646 23,212

Outflows:

Employee expenses (398,537) (1,086,470)

Supplies and services (180,860) (438,868)

Grants and subsidies (15,699) (29,983)

GST paid to suppliers (30,352) (60,915)

GST remitted to ATO (8,345) (16,238)

Other (4,823) (16,014)

Net cash provided by (used in) operating activities 32 187,196 125,121

Cash flows from investing activities

Inflows: Sales of property, plant and equipment 2,491 8,492 Sales of investments 24 - Outflows: Payments for property, plant and equipment (64,824) (140,583) Payments for intangibles (546) (2,808)

Net cash provided by (used in) investing activities (62,855) (134,899)

Cash flows from financing activities

Inflows:Equity injections 24,357 57,553

Outflows: Borrowing redemptions (1,496) (3,248)

Equity withdrawals (39,530) (101,317)

Net cash provided by (used in) financing activities (16,669) (47,012)

Net increase/(decrease) in cash and cash equivalents 107,672 (56,789) Cash and cash equivalents at beginning of reporting period 18,789 75,579

(58,682) -

Cash and cash equivalents at end of financial year 18 67,778 18,790


Cash and cash equivalents transferred in/(out) through Machinery of Government


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Note 1: Objectives and principal activities of the department

Note 2: Summary of significant accounting policies

Note 3: Reconciliation of payments from consolidated fund to appropriation revenue for services recognised in Statement of Comprehensive Income

Reconciliation of payments from Consolidated Fund to equity adjustment recognised in contributed equity

Note 4: User charges and fees

Note 5: Emergency management levies

Note 6: Grants and other contributions

Note 7: Other revenues

Note 8: Gains

Note 9: Employee expenses

Note 10: Key management personnel and remuneration

Note 11: Supplies and services

Note 12: Depreciation and amortisation

Note 13: Grants and subsidies

Note 14: Impairment losses

Note 15: Finance/borrowing costs

Note 16: Revaluation Decrement

Note 17: Other expenses

Note 18: Cash and cash equivalents

Note 19: Receivables

Note 20: Inventories

Note 21: Biological assets

Note 22: Other current assets

Note 23: Other financial assets

Note 24: Non-current assets classified as held for sale

Note 25: Intangible assets

Note 26: Property, plant and equipment

Note 27: Payables

Note 28: Other financial liabilities

Note 29: Accrued employee benefits

Note 30: Other current liabilities

Note 31: Asset revaluation surplus by class

Note 32: Reconciliation of operating surplus to net cash from operating activities

Note 33: Commitments for expenditure

Note 34: Contingencies

Note 35: Parole boards

Note 36: Events occurring after balance date

Note 37: Financial instruments

Note 38: Schedule of administered items

Note 39: Trust transactions and balances


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1. Objectives and principal activities of the department

The Public Safety Business Agency (PSBA) was established on 1 November 2013 to provide strategic and corporate services to the Queensland Police Service (QPS), Queensland Fire and Emergency Services (QFES) and the Office of Inspector-General Emergency Management (IGEM), allowing them to concentrate on frontline service delivery. It also performs operational functions including Queensland Government Air Service, State Government Security, and Blue Cards (working with children suitability checks). Funding for the departmental services delivered by the department has come from parliamentary appropriations and the following revenue sources:

Advisory and consultancy services; Commercial and community training; Commercial contract services; Commonwealth grants; Contributions, including donations and sponsorships; and Fees for attendance at incidents.

2. Summary of significant accounting policies (a) Statement of compliance

The department has prepared these financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009. These financial statements are general purpose financial statements and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Queensland Treasury and Trade’s Minimum Reporting Requirements for the year ended 30 June 2014, published May 2014 and other authoritative pronouncements. The department has applied the Australian Accounting Standards and Interpretations that are applicable to not-for-profit entities, as the Public Safety Business Agency is a not-for-profit department. Unless otherwise stated, the financial statements have been prepared in accordance with the historical cost convention.

(b) The reporting entity

In the process of reporting the department as a single economic entity, all material transactions and balances internal to the department, have been eliminated. The major departmental services undertaken by the department are disclosed in note 2(z).

(c) Administered transactions and balances Where the department administers, but does not control, certain resources on behalf of the Government, it has responsibility and is accountable for administering related transactions and items. It does not have the discretion to deploy the resources for the achievement of the department's objectives. Administered transactions and balances are disclosed in note 38. These transactions and balances are not significant in comparison to the department’s overall financial performance/financial position.

(d) Trust and agency transactions and balances

The department may undertake certain trustee transactions on behalf of trust beneficiaries. As the department acts only in a custodial role in respect of these transactions and balances, they are not recognised in the financial statements, but are disclosed in note 39. Applicable audit arrangements are also shown in note 39.


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(e) Appropriation revenue for services

Appropriations provided under the Appropriation Act 2012 are recognised as revenue when received or receivable.

Where approved, appropriation revenue is recorded as receivable if amounts are not received at the end of the reporting period.

(f) User charges, fees and fines

User charges and fees controlled by the department are recognised as revenues when the related services are provided and can be measured reliably with a sufficient degree of certainty. This involves either invoicing for related goods/services and/or the recognition of accrued revenue. User charges and fees are controlled by the department where they can be deployed for the achievement of departmental objectives. Taxes, fees and fines collected but not controlled by the department are reported as administered revenue. Refer to note 38.

(g) Grants and other contributions

Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which the department obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements.

Contributed assets are recognised at their fair value. Contributions of services are recognised only when a fair value can be determined reliably and the services would have been purchased if they had not been donated.

(h) Special Payments

Special payments include ex gratia expenditure and other expenditure that the department is not contractually or legally obligated to make to other parties. In compliance with the Financial and Performance Management Standard 2009, the department maintains a register setting out details of all special payments greater than $5,000. The total of all special payments (including those of $5,000 or less) is disclosed separately within Other Expenses (Note 17). However, descriptions of the nature of special payments are only provided for special payments greater than $5,000.

(i) Cash and cash equivalents

For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions. It also includes investments with short periods to maturity that are readily convertible to cash on hand at the department's option and that are subject to a low risk of change in value.

(j) Receivables

Trade debtors are recognised at the amounts due at the time of sale or service delivery. Settlement of these amounts is generally required between 14 to 30 days from the invoice date. The collectability of receivables is assessed periodically with allowance being made for impairment. Additional information on impairment is contained in notes 14 and 19. All known bad debts were written off as at 30 June. Refer note 37 for an analysis of movements. Other debtors generally arise from transactions outside the usual operating activities of the department and are recognised at their assessed values. Settlement terms depend on the nature of the receivable. No interest is charged (other than for overdue emergency management levies) and no security is obtained.


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(k) Inventories

The cost of inventories is assigned on a weighted average basis and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition pursuant to AASB 102 Inventories except for training costs which are expensed as incurred.

Inventories held for internal consumption are valued at cost or weighted average cost and are those inventories which the department consumes in its normal course of business. The cost of inventories held for internal consumption is adjusted, where applicable, for any loss of service potential.

(l) Non-current assets classified as held for sale

Non-current assets held for sale, consist of those assets that management has determined are available for immediate sale in their present condition, and their sale is highly probable within the next twelve months. In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, when an asset is classified as held for sale, its value is measured at the lower of the asset's carrying amount and fair value less costs to sell. Any restatement of the asset's value to fair value less costs to sell (in compliance with AASB 5) is a nonrecurring valuation. Such assets are no longer amortised or depreciated upon being classified as held for sale.

(m) Acquisitions of assets

Actual cost is used for the initial recording of all acquisitions of assets controlled by the department. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects' fees and engineering design fees. However any training costs are expensed as incurred. Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from another Queensland department, are recognised at their fair value at the date of acquisition in accordance with AASB 116 Property, Plant and Equipment and Queensland Treasury and Trade’s Non-current Asset Policies for the Queensland Public Sector. Where assets are received free of charge from another Queensland department (whether as a result of machinery-of-Government or other involuntary transfer), the acquisition cost is recognised at the carrying amount in the books of the transferor immediately prior to the transfer together with any accumulated depreciation. Assets under construction are recorded as capital work in progress until the date of practical completion, at which time they are transferred to the appropriate asset class. Assets acquired for no cost or for nominal consideration, other than from an involuntary transfer from another Queensland Government entity, are recognised at their fair value at the date of acquisition in accordance with AASB 116 Property, Plant and Equipment.

(n) 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 in the financial statements in the year of acquisition:

Buildings and land improvements $10,000 Heritage and cultural $5,000 Land $1 Major plant and equipment $5,000 Plant and equipment $5,000


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(o) Revaluation of non-current physical assets and intangible assets

Land, buildings, infrastructure, major plant and equipment and heritage and cultural assets are measured at fair value in accordance with AASB 116 Property, Plant and Equipment, AASB 13 Fair Value Measurement and Queensland Treasury and Trade’s Non-Current Asset Policies for the Queensland Public Sector. These assets are reported at their revalued amounts, being the fair value at the date of valuation, less any subsequent accumulated depreciation and impairment losses where applicable.

In respect of the above mentioned asset classes, the cost of items acquired during the financial year has been judged by management of Public Safety Business Agency to materially represent their fair value at the end of the reporting period.

Plant and equipment, (that is not classified as major plant and equipment) is measured at cost in accordance with the Non-Current Asset Policies. The carrying amounts for such plant and equipment at cost should not materially differ from their fair value.

Intangible assets are measured at their historical cost, unless there is an active market for the assets concerned (in which case they are measured at fair value).

Property, plant and equipment classes measured at fair value (refer above) are revalued on an annual basis either by appraisals undertaken by an independent professional valuer or internal expert, or by the use of appropriate and relevant indices.

Revaluations using an independent professional valuer or internal expert appraisals are undertaken at least once every three years. However, if a particular asset class experiences significant and volatile changes in fair value, that class is subject to specific appraisal in the reporting period, where practicable, regardless of the timing of the last specific appraisal.

The fair values reported by the department are based on appropriate valuation techniques that maximise the use of available and relevant observable inputs and minimise the use of unobservable inputs (refer to Note 1(p)).

Where assets have not been specifically appraised in the reporting period, their previous valuations are materially kept up-to-date via the application of relevant indices. Public Safety Business Agency ensures that the application of such indices results in a valid estimation of the assets' fair values at reporting date. The State Valuation Service (SVS) supplies the indices used for land and residential buildings, the index used for non-residential buildings is the Building Price Index (BPI) and is supplied by Gray, Robinson, Cottrell Pty Ltd (GRC) Quantity Surveyors. Such indices are derived from market information available to SVS and GRC. SVS and GRC provide assurance of their robustness, validity and appropriateness for application to the relevant assets. Indices used are also tested for reasonableness by applying the indices to a sample of assets, comparing the results to similar assets that have been valued by an independent professional valuer, and analysing the trend of changes in values over time. Through this process, which is undertaken annually, management assesses and confirms the relevance and suitability of indices provided, based on the departments' own particular circumstances.

During the reporting period, the department reviewed all fair value methodologies in light of the new principles in AASB 13. Some minor adjustments were made to methodologies to take into account the more exit-oriented approach to fair value under AASB 13, as well as the availability of more observable data for certain assets (e.g. land and buildings). Such adjustments – in themselves - did not result in a material impact on the values for the affected Property Plant and Equipment classes.

Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that asset class.

On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.


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Materiality concepts under AASB 1031 Materiality are considered in determining whether the difference between the carrying amount and the fair value of an asset is material.

Separately identified components of assets are measured on the same basis as the assets to which they relate. Revaluation of land and buildings

The department’s land and buildings are divided into regions across the State and the valuation of these land and buildings is undertaken on a rolling program. The table below shows the program of revaluation:

Year Region2013-14 Northern, Far North and South West regions, Kedron

Park complex 2014-15 Brisbane Region, Cannon Hill Joint Station, Eagle

Farm Fire Workshop, South East Region, Whyte Island 2015-16 North Coast and Central regions

Annually, one or more regions are independently assessed for value by the department’s valuer, State Valuation Service (SVS), a unit of the Department of Natural Resources and Mines, such that each asset is independently valued over a three year cycle. The 2014 valuations were certified by the Manager Client Valuations, SVS. The department assessed the data provided by SVS. Assets with significant or unusual movements were referred back to SVS for review, resulting in a number of changes to the original valuation figures. Where necessary, consultation with local management was undertaken to resolve anomalies.

(p) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique. Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by the department include, but are not limited to, published sales data for land and general office buildings. Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Significant unobservable inputs used by the department include, but are not limited to, subjective adjustments made to observable data to take account of the characteristics of the department assets/liabilities, internal records of recent construction costs (and/or estimates of such costs) for assets' characteristics/functionality, and assessments of physical condition and remaining useful life. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use. All assets and liabilities of the department for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals: • level 1 – represents fair value measurements that reflect unadjusted quoted market prices in active

markets for identical assets and liabilities;

• level 2 – represents fair value measurements that are substantially derived from inputs (other than quoted prices included within level 1) that are observable, either directly or indirectly; and


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• level 3 – represents fair value measurements that are substantially derived from unobservable

inputs. None of the department’s valuations of assets or liabilities are eligible for categorisation into level 1 of the fair value. As 2013-14 is the first year of application of AASB 13 by Public Safety Business Agency, there were no transfers of assets between fair value hierarchy levels during the period. More specific fair value information about the department’s Property, Plant and Equipment is outlined in Note 26.

(q) Intangibles

Intangible assets with a cost or other value equal to or greater than $100,000 are recognised in the financial statements, items with a lesser value being expensed. Each intangible asset, less any anticipated residual value, is amortised over its estimated useful life to the department. The residual value is zero for all the department's intangible assets. It has been determined that there is not an active market for any of the department’s intangible assets. As such, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment losses. No intangible assets have been classified as held for sale or form part of a disposal group held for sale. Purchased software The purchase cost of this software has been capitalised and is being amortised on a straight-line basis over the period of the expected benefit to the department (refer note 25). Internally generated software Expenditure on research activities relating to internally generated intangible assets is recognised as an expense in the period in which it is incurred. Costs associated with the development of computer software have been capitalised and are amortised on a straight-line basis over the period of expected benefit to the department (refer note 25).

(r) Amortisation and depreciation of intangibles, property, plant and equipment

Land is not depreciated as it has unlimited useful life. All intangible assets of the department have finite useful lives and are amortised on a straight line basis. Property, plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revaluated amount of each asset, less its estimated residual value, progressively over its estimated useful life to the department. Assets under construction (work-in-progress) are not depreciated until they have reached their service delivery capacity. Service delivery capacity relates to when construction is complete and the asset is first put to use or is installed ready for use in accordance with its intended application. These assets are then reclassified to the relevant classes with property, plant and equipment. Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly. Heritage and cultural assets comprise principally buildings and art work. They are depreciated on a straight-line basis in order to write-off the value of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to the department. Expenditure that increases the originally assessed capacity or service potential of an asset and is in excess of the capitalisation threshold, is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the department.


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Major spares purchased specifically for particular assets are capitalised and depreciated on the same basis as the asset to which they relate. The depreciable amount of improvements to leasehold land is allocated progressively over the estimated useful lives of the improvements or the unexpired period of the lease, whichever is shorter. The unexpired period of leases includes any option period where the exercise of that option is probable. A review has been conducted on all assets to determine the current economic life to the entity. Any change to an asset's economic life was applied as at 30 June 2014. Items comprising the department’s technical library are expensed on acquisition. For each class of depreciable asset the following depreciation and amortisation rates were used:

Class Depreciation/

Amortisation rate % Buildings and Land Improvements 0.78 to 50.00 Heritage and Cultural 1.00 to 1.00 Land Nil Major Plant and Equipment 4.35 to 14.29 Plant and Equipment 1.67 to 33.33 Intangibles:

Software – Purchased 10.00 to 33.33 Software - Internally Generated 9.09 to 33.33 Intellectual Property 33.33 to 33.33

(s) Impairment of non-current assets

All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the department determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost. An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Refer also notes 25 and 26.

(t) Leases

A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership, and operating leases under which the lessor retains substantially all risks and benefits.

No non-current assets held by the department have been acquired by means of a finance lease.

Operating lease payments are representative of the pattern of benefits derived from the leased assets and accordingly, are expensed to the Statement of Comprehensive Income in the periods in which they are incurred.


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(u) Other financial assets Other financial assets are brought to account at the lower of cost and recoverable amount and are disclosed at the fair values indicated in note 23.

(v) Payables

Trade creditors are recognised at the amount to be paid for the goods and services received gross of applicable trade and other discounts, inclusive of Goods and Services Tax. Amounts owing are unsecured and are generally settled on 30-day terms.

(w) Financial instruments

Specific accounting policies relating to the financial instrument classes are disclosed elsewhere in these notes.

Recognition

Financial assets and financial liabilities are recognised in the Statement of Financial Position when the department becomes party to the contractual provisions of the financial instrument. Classification Financial instruments are classified and measured as follows: Cash and cash equivalents - held at fair value through profit or loss Receivables - held at amortised cost Payables - held at amortised cost Borrowings - held at amortised costs Borrowings payable are recognised at the face value of the principal outstanding, with interest or borrowing costs being expensed or added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise. The fair value of any loans is disclosed in note 28. Derivative transactions are entered into as a means of hedging against foreign exchange exposure and for no other purpose. The department enters into contracts with overseas suppliers. These contracts are subject to price risk. Price risk is reflected by price variation changes due to foreign currency movements. Only significant contracts between the department and suppliers are hedged to counteract potential adverse foreign currency fluctuations. Exposure to price risk on these transactions at balance date is, therefore mitigated. Transactions in foreign currencies are converted to local currency at the rate of the exchange ruling at the date of the transaction. Foreign currency monetary items that are outstanding at the reporting date are translated using the spot rate at the end of the period. The department is permitted to operate a bank overdraft to an approved limit. Under current Government arrangements, no interest is payable by the department on that overdraft. All other disclosures relating to the measurement basis and financial risk management of financial instruments held by the department are included in note 37.

(x) Employee benefits

Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits. Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee related expenses.


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Wages, salaries and sick leave Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at the current salary rates. As the department expects such liabilities to be wholly settled within 12 months of reporting date, the liabilities are recognised at undiscounted amounts. Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and 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 The Queensland Government’s Annual Leave Central Scheme (ALCS) became operational on 30 June 2008 for departments, commercialised business units and shared service providers. Under this scheme a levy is made on the department to cover the cost of employee’s annual leave (including leave loading and on-costs). The levies are expensed in the period in which they are payable. Amounts paid to employees for annual leave are claimed from the scheme quarterly in arrears. No provision for annual leave is recognised in the department’s financial statements, as the liability is held on a whole-of-Government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Long service leave

Under the Queensland Government’s long service leave scheme, a levy is made on the department to cover the cost of employees' long service leave. Levies are expensed in the period in which they are payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears. No provision for long service leave is recognised in the department’s financial statements, the liability being held on a whole-of-Government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Superannuation

Employer superannuation contributions are paid to QSuper, the superannuation plan 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. The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Time off in lieu of overtime (TOIL) and accrued time Liabilities for TOIL and accrued time are recognised in the Statement of Financial Position as the amount unpaid at reporting date in respect to all employee services and related on-costs such as payroll tax, workcover premiums, long service leave levies and employer superannuation contributions. As short-term employee entitlement liabilities, provisions for TOIL and accrued time are shown as current liabilities and are measured based on remuneration rates expected to be paid when the liabilities are settled. A liability for TOIL or accrued time is only recognised in the Statement of Financial Position where payment for that time vests in the employee. No liability is recorded in circumstances where the employee has no right to payment for the TOIL or accrued time.


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Key Management Personnel and remuneration Key management personnel and remuneration disclosures are made in accordance with section 5 of the Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury and Trade. Refer to Note 10 for the disclosures on key management personnel and remuneration.

(y) Finance/borrowing costs

Finance costs are recognised as an expense in the period in which they are incurred. Finance costs include:

- Interest on short-term and long-term borrowings; - Ancillary administration charges.

No borrowing costs are capitalised into qualifying assets.

(z) Major services of the department

From 1 July 2013 to 30 September 2013 services included:

Ambulance services – provided by the Queensland Ambulance Service (QAS)

QAS provided emergency and non-urgent patient care; routine pre-hospital patient care and casualty room services, patient transport, community education and awareness programs, community first aid training and a baby capsule hire service.

From 1 July 2013 to 31 October 2013 services included: Probation and parole – provided by Queensland Corrective Services (QCS)

These departmental services provide supervision and rehabilitation of offenders in the community. Probation and Parole ensures offenders are appropriately supervised and receive the control and treatment interventions they need to reintegrate successfully into the community and reduce their likelihood of re-offending.

Emergency management services – provided by Emergency Management Queensland (EMQ)

EMQ services focus on: the development of policy, process, systems, and advice to support and improve Queensland’s disaster management system; the management and support of the State Emergency Service (SES); and the operation of the Emergency Management Queensland Helicopter Rescue Service. EMQ administers State government grants support to Volunteer Marine Rescue (VMR) associations.

Custodial operations – provided by QCS

These departmental services provide community safety and crime prevention through the humane containment, supervision and rehabilitation of offenders in correctional centres throughout Queensland. A variety of programs and support services are provided to assist offenders to successfully reintegrate into the community upon their release.

Fire and rescue services – provided by the Queensland Fire and Rescue Service (QFRS) QFRS provided services in six service delivery areas – landscape fire services, structural fire

services, all hazards and rescue services, disaster management and community assistance services, community risk mitigation services and buildings and infrastructure fire safety services. It provided expert advice and services for environmental and hazard mitigation, community education, fire prevention, hazardous materials management, firefighting and rescue services including vehicle extrications, swift water rescue, confined space rescue, vertical rescue and urban search and rescue.


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As a result of the machinery-of-government changes effective from 1 November 2013 the Department of Community Safety was renamed and became the Public Safety Business Agency. At that time, the purpose of the agency also changed and it became responsible for providing strategic and corporate services to the Queensland Police Service (QPS), Queensland Fire and Emergency Services (QFES) incorporating the Office of Inspector-General Emergency Management (IGEM), allowing them to concentrate on frontline service delivery. It also performs operational functions including Queensland Government Air Service (QGAS) and State Government Security (SGS).

(aa) Insurance

The department’s non-current physical assets and other risks are insured through the Queensland Government Insurance Fund (QGIF) and other commercial insurance providers, premiums being paid on a risk assessment basis. In addition, the department pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.

(ab) Services received\provided free of charge or for nominal value

Contributions of services are recognised only if the services would have been purchased if they had not been donated and their value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and an expense. The Public Safety Business Agency was established to provide support services to the Queensland Police Service, Queensland Fire and Emergency Services and the office of the Inspector General Emergency Management. The agency is funded by appropriation and therefore does not provide those services on a fee-for-service basis. In that regard the services provided to the other agencies in the portfolio are provided below fair value. The financial statements for the recipient agencies reflect those adjustments.

(ac) Contributed equity

Non-reciprocal transfers of assets and liabilities between wholly owned Queensland State public sector entities as a result of machinery-of-Government changes are adjusted to ‘Contributed Equity’ in accordance with Urgent Issues Group Interpretation 1038 Contributions by Owners Made to Wholly Owned Public Sector Entities. Appropriation for equity adjustments is similarly designated.

(ad) Taxation

The department is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). FBT and GST are the only taxes accounted for by Public Safety Business Agency. As such, GST credits receivable from/payable to the Australian Taxation Office are recognised and accrued (refer note 19).

(ae) Issuance of financial statements

The financial statements are authorised for issue by the Chief Executive Officer and the Chief Finance Officer at the date of signing the Management Certificate.

(af) Accounting estimates and judgements The preparation of financial statements necessarily requires the determination and use of certain critical

accounting estimates, assumptions and management judgements that have a potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

(ag) Rounding and comparatives Amounts included in the financial statements are in Australian dollars and have been rounded to the

nearest $1,000 or, where the amount is $500 or less, to zero, unless disclosure of the full amount is


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specifically required. Sub-totals and totals may not add due to rounding, but the overall discrepancy is no greater than two thousand dollars. The reporting period covered by these financial statements is 1 July 2013 to 30 June 2014. Due to the machinery-of-Government changes, transactions and balances relating to functions transferred to\from other departments are included\not included from the dates specified below. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period. Machinery-of-Government changes effective 1 October 2013 transferred responsibilities for: • Queensland Ambulance Service from the Public Safety Business Agency to Queensland Health.

Machinery-of-Government changes effective 1 November 2013 transferred responsibilities for:

• Queensland Corrective Services from the Public Safety Business Agency to Department of Justice

and Attorney-General;

• Emergency Management Queensland from the Public Safety Business Agency to Queensland Fire and Emergency Services;

• Administration of the Natural Disaster Resilience Program and the Natural Disaster Relief and

Recovery Arrangements from the Public Safety Business Agency to the Department of Local Government, Community Recovery and Resilience

• Queensland Fire and Rescue Service from the Public Safety Business Agency to Queensland Fire and Emergency Services;

• Queensland Police Service Air Wing (excluding the aerial surveillance unit) from Queensland Police

Service to the Public Safety Business Agency;

• Queensland Government Air Service from the Department of Premier and Cabinet to the Public Safety Business Agency;

Machinery-of-Government changes effective 1 January 2014 transferred responsibilities for: • State Government Security from the Department of Housing and Public Works to the Public Safety

Business Agency.

(ah) Machinery of Government changes

As a result of changes detailed in note 2(ag), the following asset and liabilities were transferred to\from the department: Transfers from PSBA to other departments

Queensland Health

Department of Justice

and Attorney General

Queensland Fire and

Emergency Services

Department of Local

Government, Community Recovery

and Resilience

Total

Controlled $’000 $’000 $’000 $’000 $’000Assets Cash 12,232 35,117 6,313 7,852 61,514 Receivables 38,674 6,446 29,596 - 74,716 Inventory 4,049 3,651 1,575 - 9,275 Other Current Assets 10,558 14,746 6,094 - 31,398 Property Plant and Equipment and other non-current assets

409,532 2,193,153 32,469 - 2,635,154

Liabilities Payables 40,237 26,212 28,351 - 94,800 Net Assets 434,808 2,226,901 47,696 7,852 2,717,257


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Queensland

Health Department of Justice

and Attorney General

Queensland Fire and

Emergency Services

Department of Local

Government, Community Recovery

and Resilience

Total

Administered $’000 $’000 $’000 $’000 $’000 Assets Receivables - - 43 - 43 Liabilities Transfer to Government Payables

- - 43 - 43

Net Assets - - - - - Transfers to PSBA from other departments Transfers from: Queensland

Police Service

Department of Premier

and Cabinet

Department of Housing and Public

Works

Total

$’000 $’000 $’000 $’000 Controlled Assets Cash - 1,013 1,818 2,831 Receivables - - 5,945 5,945 Inventory - 101 - 101 Other Current Assets - 168 - 168 Property Plant and Equipment and other non-current assets 10,749 9,676 184 20,609 Liabilities Payables - - 3,151 3,151 Borrowings - 12,134 - 12,134 Net Assets 10,749 (1,176) 4,796 14,369 Revenue and expenses relating to the services for the full year, including transactions processed by the respective departments prior to the transfer were: Transfers from: Queensland

Police Service

Department of Premier

and Cabinet

Department of Housing and Public

Works

Total

$’000 $’000 $’000 $’000 Controlled Revenue 5,460 4,162 36,797 46,419 Expense 1,794 4,128 35,188 41,110 Revenue and expenses from the dates of transfer are reflected within these financial statements and separately disclosed within the Statement of comprehensive income by Major Departmental Services – Controlled

(ai) New and revised accounting standards and reporting requirements

The department did not voluntarily change any of its accounting policies during 2013-14. The only Australian Accounting Standard changes applicable for the first time as from 2013-14 that have had a significant impact on the department's financial statements are those arising from AASB 13 Fair Value Measurement, as explained below.


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AASB 13 Fair Value Measurement became effective from reporting periods beginning on or after 1 January 2013. AASB 13 sets out a new definition of 'fair value' as well as new principles to be applied when determining the fair value of assets and liabilities. The new requirements apply to all of the department's assets and liabilities (excluding leases) that are measured and/or disclosed at fair value or another measurement based on fair value. The impacts of AASB 13 relate to the fair value measurement methodologies used and financial statement disclosures made in respect of such assets and liabilities. The department reviewed its fair value methodologies (including instructions to valuers, data used and assumptions made) for all items of property, plant and equipment measured at fair value to assess whether those methodologies comply with AASB 13. To the extent that the previous methodologies were not in compliance with AASB 13, valuation methodologies were revised accordingly to be in line with AASB 13. The revised valuation methodologies have not resulted in material differences from the previous methodologies. AASB 13 has required an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities. For those fair value measurements of assets or liabilities that substantially are based on data that is not 'observable' (i.e. accessible outside the department), the amount of information disclosed has significantly increased. Note 2(p) explains some of the principles underpinning the additional fair value information disclosed. Most of this additional information is set out in note 26 Property Plant and Equipment. A revised version of AASB 119 Employee Benefits became effective for reporting periods beginning on or after 1 January 2013. As the department does not directly recognise any employee benefit liabilities (refer to Note 2(x)), the only implications for the department were the revised concept of 'termination benefits' and the revised recognition criteria for termination benefit liabilities. If termination benefits meet the AASB 119 timeframe criterion for 'short-term employee benefits', they will be measured according to the AASB 119 requirements for 'short-term employee benefits'. Otherwise, termination benefits need to be measured according to the AASB 119 requirements for 'other long-term employee benefits'. Under the revised standard, the recognition and measurement of 'other long-term employee benefits' are accounted for according to most of the requirements for defined benefit plans. The revised AASB 119 includes changed criteria for accounting for employee benefits as 'short-term employee benefits'. However, as Public Safety Business Agency is a member of the Queensland Government central schemes for annual leave and long service leave, this change in criteria has no impact on the department’s financial statements as the employer liability is held by the central scheme. The revised AASB 119 also includes changed requirements for the measurement of employer liabilities/assets arising from defined benefit plans, and the measurement and presentation of changes in such liabilities/assets. The department makes employer superannuation contributions only to the QSuper defined benefit plan, and the corresponding QSuper employer benefit obligation is held by the State. Therefore, those changes to AASB 119 will have no impact on the department. AASB 1053 Application of Tiers of Australian Accounting Standards became effective for reporting periods beginning on or after 1 July 2013. AASB 1053 establishes a differential reporting framework for those entities that prepare general purpose financial statements, consisting of two Tiers of reporting requirements – Australian Accounting Standards (commonly referred to as 'Tier 1'), and Australian Accounting Standards – Reduced Disclosure Requirements (commonly referred to as 'Tier 2'). Tier 1 requirements comprise the full range of AASB recognition, measurement, presentation and disclosure requirements that are currently applicable to reporting entities in Australia. The only difference between the Tier 1 and Tier 2 requirements is that Tier 2 requires fewer disclosures than Tier 1. Pursuant to AASB 1053, public sector entities like the department may adopt Tier 2 requirements for their general purpose financial statements. However, AASB 1053 acknowledges the power of a regulator to require application of the Tier 1 requirements. In the case of the department, Queensland Treasury and Trade is the regulator. Queensland Treasury and Trade has advised that its policy decision is to require adoption of Tier 1 reporting by all Queensland Government departments (including this department) and statutory bodies that are consolidated into the whole-of-Government financial statements. Therefore, the release of AASB 1053 and associated amending standards has had no impact on the department.


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The department is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from Queensland Treasury and Trade. Consequently, the department has not applied any Australian Accounting Standards and Interpretations that have been issued but are not yet effective. The department applies standards and interpretations in accordance with their respective commencement dates. At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards with future commencement dates are as set out below. AASB 1055 Budgetary Reporting applies from reporting periods beginning on or after 1 July 2014. The department will need to include in its 2014-15 financial statements the original budgeted figures from the Income Statement, Balance Sheet, Statement of Changes in Equity, and Cash Flow Statement as published in the 2014-15 Queensland Government's Service Delivery Statements. The budgeted figures will need to be presented consistently with the corresponding (actuals) financial statements, and will be accompanied by explanations of major variances between the actual amounts and the corresponding original budgeted figures. In addition, the department will need to include the original budgeted information for major classes of administered income and expenses, and major classes of administered assets and liabilities. This budgeted information will need to be presented consistently with the corresponding (actuals) administered information, and will be accompanied by explanations of major variances between the actual amounts and the corresponding budgeted financial information. The following new and revised standards apply as from reporting periods beginning on or after 1 January 2014 – • AASB 10 Consolidated Financial Statements; • AASB 11 Joint Arrangements; • AASB 12 Disclosure of Interests in Other Entities; • AASB 127 (revised) Separate Financial Statements; • AASB 128 (revised) Investments in Associates and Joint Ventures. • AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17] ; and • AASB 2013-8 Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities - Control and Structured Entities AASB 10 redefines and clarifies the concept of control of another entity, and is the basis for determining which entities should be consolidated into an entity’s financial statements. AASB 2013-8 applies the various principles in AASB 10 for determining whether a not-for-profit entity controls another entity.

AASB 11 deals with the concept of joint control and sets out new principles for determining the type of joint arrangement that exists, which in turn dictates the accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement. The department has assessed its arrangements with other entities to determine whether a joint arrangement exists in terms of AASB 11. Based on present arrangements, no joint arrangements exist. However, if a joint arrangement does arise in future, the department will need to follow the relevant accounting treatment specified in either AASB 11 or the revised AASB 128, depending on the nature of the joint arrangement.

AASB 9 Financial Instruments and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] will become effective for reporting periods beginning on or after 1 January 2017. The main impacts of these standards on the department are that they will change the requirements for the classification, measurement and disclosures associated with the department's financial assets. Under the new requirements, financial assets will be more simply classified according to whether they are measured at amortised cost or fair value. Pursuant to AASB 9, financial assets can only be measured at amortised cost if two conditions are met. One of these conditions is that the asset must be held within a business model whose objective is to hold assets in order to collect contractual cash flows. The other condition is that the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.


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The department has commenced reviewing the measurement of its financial assets against the new AASB 9 classification and measurement requirements. However, as the classification of financial assets at the date of initial application of AASB 9 will depend on the facts and circumstances existing at that date, the department's conclusions will not be confirmed until closer to that time. At this stage, and assuming no change in the types of transactions the department enters into, it is not expected that any of the department's financial assets will meet the criteria in AASB 9 to be measured at amortised cost. Therefore, as from the 2017-18 financial statements, all of the department's financial assets are expected to be required to be measured at fair value, and classified accordingly (instead of the measurement classifications presently used in Notes 2(w) and 37).The same classification will be used for net gains/losses recognised in the Statement of Comprehensive Income in respect of those financial assets. In the case of the department's current receivables, as they are short-term in nature, the carrying amount is expected to be a reasonable approximation of fair value. All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the department's activities, or have no material impact on the department.


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Public Safety Business AgencyNotes to and forming part of the financial statementsfor the period 1 July 2013 to 30 June 2014

2014 2013$'000 $'000

3.

Budgeted departmental services appropriation 1,326,797 1,291,107 Transfers to/ from other departments (866,587) - Treasurer's transfers 77 - Lapsed departmental services appropriation - (162,503) Unforseen expenditure 61,043 - Total departmental services receipts 521,330 1,128,604

Less: opening balance of departmental services revenue receivable (98,151) 15,253 Plus: closing balance of departmental services revenue receivable - 98,151 Less: Closing balance of appropriation revenue payable (3,004) -

Budgeted equity adjustment appropriation (83,353) (41,321) Transfers from/to other departments 67,980 - Lapsed equity adjustment (77) (2,443) Equity adjustment receipts (15,450) (43,764)

Plus: opening balance of equity adjustment payable 277 - Less: opening balance of equity adjustment receivable - (2,558) Less: closing balance of equity adjustment payable - (277) Equity adjustment recognised in contributed equity (15,173) (46,599)

4. User charges and fees

Aviation user charges 1,228 1,241 Fees for services 24,110 21,115 Public education 668 2,736 QAS patient transport fees and charges 24,483 95,831 QFRS operational fees and charges 10,388 27,081 Sale of services 17,006 23,486 Total 77,883 171,490

5. Emergency Management Levy

Gross emergency management levy revenue 132,921 354,606 Less: pensioner discount (2,551) (6,807) Net emergency management levy revenue 130,370 347,799

420,175 1,242,008

Reconciliation of payments from Consolidated Fund to appropriation revenue for services recognised in Statement of Comprehensive Income

Reconciliation of payments from Consolidated Fund to equity adjustment recognised in contributed equity (refer Statement of Changes in Equity)

Departmental services revenue recognised in Statement of Comprehensive Income

From 1 July 2013, the Urban Fire Levy was renamed to the Emergency Management Levy and its purpose broadened.


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2014 2013$'000 $'000

6. Grants and other contributions

Commonwealth receipts 2,350 2,381 Constituted local ambulance committee contributions 31 216 Donations - assets 1,377 2,126 Donations - other (9) 718 Energy grants credit scheme 85 270 Gambling Community Benefit Fund 185 914 Grants from State Government departments 3,300 4,875 Motor Accident Insurance Commission 6,820 17,508 Queensland Fire and Emergency Services 32,346 - Queensland Reconstruction Authority 356 3,366 Rural fire brigade contributions 75 436 Services received below fair value 5,313 2,014 Sponsorships 1,093 1,582 Other 3 10 Total 53,326 36,416

7. Other revenue

Asset adjustments/write-ons 12 3,211 Goods and services provided to prisoners 4,032 10,392 Impairment loss reversal - receivables 231 304 Insurance recoveries 219 5,483 Interest 476 1,297 Other regulatory fees 33 103 Property rental 431 1,550 Revaluation increment - 16 Sale of Government property 348 - Sale of livestock from closed Capricornia and Darling Downs Correctional Centre dairies - 487 Other 252 1,463 Total 6,034 24,306

8.

Gain on disposal of property, plant and equipment 264 1,954 Total 264 1,954

9. Employee expenses

Employee benefitsWages and salaries 283,688 791,828 Employer superannuation contributions * 31,918 87,591 Long service leave levy * 6,448 18,496 Annual leave levy * 31,855 89,001 Other employee benefits 180 12,280

Employee related expensesWorkers' compensation premium * 8,460 26,156 Payroll tax expense * 15,829 44,294 Fringe benefits tax expense 466 1,254 Training expenses 2,651 6,012 Other employee related expenses 435 10,850 Total 381,930 1,087,762

2014 2013Number of employees: 816 10,655

* Refer to Note 2 (x).

The number of employees including both full-time employees and part-time employees measured on a full-time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)) is:

Gains on disposal/remeasurement of assets


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2014 2013$'000 $'000

11. Supplies and services

Aircraft related costs 11,008 11,202Bank charges 24 49Communication expenses 8,606 20,956Computer expenses 5,938 15,126Consultancies and contractors 17,390 16,329Cost of goods and services provided to prisoners 3,646 9,360Farm and industry expenses 1,385 5,959Emergency management levy administration fees 1,838 5,065Maintenance and repairs 18,947 60,136Management fees 20,840 62,320Marketing expenses 211 909Materials and consumables 3,178 13,744Motor vehicle expenses 12,521 42,844Offender expenses 10,834 30,886Operating lease rentals 7,431 14,733Operational and other equipment purchases 9,768 38,700Property expenses 15,814 49,089Public education expenses 58 274Shared service provider expenses 14,676 26,079Temporary assistance - staff agency 377 403Travel and accommodation 4,562 12,760Other 6,706 20,465Total 175,759 457,388

12. Depreciation and amortisation

Depreciation and amortisation were incurred in respect of:Buildings and land improvements 47,050 112,271 Heritage and cultural assets 27 51 Major plant and equipment 17,247 15,668 Plant and equipment 24,166 49,734 Software purchased 439 392 Software internally generated 4,501 5,852 Total 93,430 183,968

13. Grants and subsidies

State GovernmentDepartment of Communities - 696 Department of Environment and Resource Management - 16 Department of Natural Resources and Mines - 40 Department of Science, Information Technology, Innovation and the Arts 325 106 Queensland Treasury and Trade * 614 1,887 Queensland Reconstruction Authority - 24

Other Air sea rescue, coast guard and life saving organisations 5,540 7,967 Local authorities 4,851 14,810 State emergency services 18 51 State prisoner aid 3,103 1,860 Volunteer rural fire brigades 216 881 Other organisations * 1,032 1,645 Total 15,699 29,983

* In 2013 the amount paid to Queensland Treasury and Trade was incorrectly classified as payments to Other organisations. Comparative information for 2013 has been restated by transferring $1.887M from Other organisations to State Government - Queensland Treasury and Trade. This reclassification had no impact on the comparative 2013 operating result or equity.


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2014 2013$'000 $'000

14. Impairment losses

Bad debts written off 503 1,460 Total 503 1,460

15. Finance/borrowing costs

Interest 564 234 Borrowing fees and charges - 1 Total 564 235

16. Revaluation decrement

Revaluation decrement - land 12,598 5,035 Total 12,598 5,035

17. Other expenses

Donations/gifts/sponsorships 43 10 External audit fees * 234 261 Goods and services provided below fair value 5,313 1,642 Insurance premiums - other 123 91 Insurance premiums - QGIF 3,082 7,100 Loss on disposal of intangibles - 32 Loss on disposal of property, plant and equipment 2,091 42,324 Other 136 483 Losses:

Public property 3 45 Public monies 1 1

Special payments:Ex-gratia payments 1 143 Compensation payments 26 4,823

Total 11,053 56,955

18. Cash and cash equivalents

Cash at bank 67,775 18,738 Imprest accounts 3 52 Total 67,778 18,790

Departmental bank accounts grouped within the whole-of-Government set-off arrangement with the Queensland Treasury Corporation do not earn interest on surplus funds. Interest earned on the aggregate set-off arrangement balance accrues to the Consolidated Fund.

* Total external audit fees relating to the 2013-14 financial year are estimated to be $0.505M GST excl. (2013: $0.535M). There are no non-audit services included in this amount.


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2014 2013$'000 $'000

19. Receivables

Trade debtors:Emergency management, fire and rescue levy - 18,811 User charges 6,620 39,709 Less: Allowance for impairment (14) (3,165)

6,606 55,355

GST receivable 1,058 8,063 GST payable (213) (514)

845 7,549

Annual leave reimbursements 1,014 25,735 Appropriation revenue for services - 98,151 Long service leave reimbursements 240 3,674 Motor Accident Insurance Commission 180 1,520 Queensland Reconstruction Authority - 252 Accrued revenue 21,224 5,715 Sundry receivable 64 1,460 Total 30,173 199,411

20. Inventories

Supplies and consumablesAmbulance spare parts - 69 Bedding - 135 Bulk fuel - 255 Equipment - 453 General Inventories - - Patient care supplies - 2,169 Stationery stocks and stores - 168 Tarpaulins - 30 Uniforms/clothing - 3,832

- 7,111 Inventory held for saleAgricultural produce - 196 Canteen - 591 Finished goods - 662 Raw materials - 552 Work in progress - 234

- 2,235

Total - 9,346

21. Biological assets

CurrentLivestock - 65 Total - 65

Non-currentLivestock - 258 Total - 258

Refer to note 37 (c) Financial Instruments (Credit Risk Exposure) for an analysis of movements in the allowance for impairment loss.


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2014 2013$'000 $'000

22. Other current assets

Prepayments - general 2,210 7,967 Advances - travel and other - 5 Other current assets 96 42 Total 2,306 8,014

23. Other financial assets

CurrentShares - at cost - 24 Total - 24

*

24. Non-current assets classified as held for sale

Land 1,410 2,265 Buildings and land improvements 195 450 Total 1,605 2,715

25. Intangible assets

Intellectual property - at costGross 410 576 Less accumulated amortisation (410) (576)

- -

Software purchased - at costGross 5,230 6,195 Less accumulated amortisation (4,951) (5,355)

279 840

Software internally generated - at costGross 27,815 61,878 Less accumulated amortisation (23,451) (39,864)

4,364 22,014

Work in progress - at cost - 7,857

Total 4,643 30,711

The department has one intangible asset with a value of $0.32M (2013 $0.32M) which is inactive.

The department through Darling Downs Correctional Centre held 23,568 shares at face value of $1 in Dairy Farmers Milk Co-operative Limited, at 1 July 2013. This was established under a share restructure proposal approved by members in May 1993. These were sold in 2013/14.

Land and buildings at Arana Hills, Clifton and Highfields have been declared surplus to requirements. The disposal of these properties is currently being negotiated with prospective buyers.

The department has intangible assets with a gross cost of $9.97M (2013 $9.8M) and a written down value of zero still being used in the provision of services.

Note 2 (l) explains the accounting treatment of non-current assets held for sale.


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2014 2013$'000 $'000

26. Property, plant and equipment

Land - at fair valueGross 154,168 413,332

154,168 413,332 Buildings and land improvements - at fair value

Gross 469,528 3,853,358 Less accumulated depreciation (239,076) (1,364,315)

230,452 2,489,043 Heritage and cultural assets - at fair value

Gross 2,009 4,316 Less accumulated depreciation (1,793) (3,948)

216 368 Major plant and equipment - at fair value


164,380 155,603Plant and equipment - at cost


93,500 204,138

Work in progress - at cost 62,008 76,934

Total property, plant and equipment 704,724 3,339,418

Land

Buildings

Land and buildings are revalued to ensure that they are reported at fair value. The revaluations assessed and accepted by management incorporate the results from the independent three year rolling revaluation program, with indexation of the assets not subject to independent revaluations each year. This ensures that all assets are simultaneously revalued, and materially reflect their fair value at balance date.

Independent revaluations were performed for land and buildings in the Northern, Far Northern and South West regions, and the Kedron Park Complex as at 30 June 2014 by the State Valuation Services a division of the Department of Natural Resources and Mines. Assets independently revalued in the two previous years were indexed to ensure that they are valued on the same basis and materially reflect their fair values. The results of indexations are compared to the results of independent revaluations performed in the year to ensure the results are reasonable. This methodology has been used to support management’s acceptance of the revaluations performed for the last two years.

At 30 June 2014, management determined the fair value of land by combining the results from the independent revaluations of assets revalued in the current year, and applying indices to the remaining land assets not independently revalued in the current year.

State Valuation Services conducts the independent revaluation of assets under the three year rolling revaluation program. Values were effective as at 30 June 2014. The process involves physical inspection and reference to recent market transactions for local land sales.

Land not subject to market valuations was revalued using indices supplied by the Department of Natural Resources and Mines based on individual factor changes for each property as derived from a review of market transactions and having regard to the review of land values undertaken for local government locations.

At 30 June 2014, management determined the fair value of buildings by combining the results from the independent revaluation of buildings revalued in the current year and by applying indices to the remaining building assets not independently revalued in the current year.

State Valuation Services conducted their independent revaluation of assets under the three year rolling revaluation program. Values were effective as at 30 June 2014. The process involved physical inspection and was based on depreciated current replacement cost, unless a market price in an active and liquid market existed.

Buildings not subject to independent revaluation were revalued using appropriate indices. Residential buildings were revalued using an index provided by SVS. The commercial building assets were revalued using an index provided by Gray Robinson Cottrell Pty Ltd using the building price index based on the process formerly used by the Department of Housing and Public Works.


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Heritage and Cultural Assets

Major Plant and Equipment

Plant and Equipment

Assets where current use is not highest and best use

Plant and equipment and leasehold improvements are valued at cost in accordance with Queensland Treasury and Trade’s Non-current Asset Accounting Policies for the Queensland Public Sector.

The Department has 106 blocks of land throughout the State on which fire stations are constructed. SVS has advised the highest and best use for each parcel of land, which includes residential, commercial and multi-use. The department is not prevented from selling these parcels of land to developers where they are not required to provide services to the community. Therefore, the fair value of these properties reflects the estimated selling price, as is, on the property market.

These indices were determined to be the most appropriate when considering the department’s building types and were accepted and applied by management on the basis they resulted in a materially accurate representation of the fair value of buildings as at 30 June 2014.

The department has plant and equipment with a gross cost of $20.89M (2013 $113.78M) that has been written down to residual value of $3.92M still being used in the provision of services.

The department has 17 assets with a gross cost of $3.24M (2013 $169.13M) which are temporarily idle, and 20 assets with a gross cost of $9.91M (2013 $26.56M) which are inactive.

The department has plant and equipment with a gross cost of $81.89M (2013 $79.78M) and a written down value of zero still being used in the provision of services.

A small number of building assets are recorded in the heritage and cultural asset class for the department. A commercial building index, supplied by the Department of Natural Resources and Mines, was applied to the heritage and cultural asset values. These assets were revalued using the Queensland Government’s Office of Economic and Statistical Research Asset Revaluation Index: Non-Residential Construction, Queensland. This index was determined to be the most appropriate when considering the department’s heritage and cultural building types and was accepted by management on the basis it resulted in a materially accurate representation of the fair value of the buildings as at 30 June 2014.

At 30 June 2014, an independent valuation of fixed wing aircraft was performed by JD Dodds, plant and machinery valuers, whilst the Agusta helicopters were valued by Heliflite Pty Ltd and the Bell Helicopters by Hawker Pacific Australia. These values reflect prices to purchase similar equipment in a similar condition.


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2014 2013$'000 $'000

27. Payables

Trade creditors 43,181 102,025 Tax liabilities (220) 2,877 Equity injection payable - 277 Sundry payables 412 114 Total 43,373 105,293

28. Other financial liabilities(Refer Note 37)

CurrentQueensland Treasury Corporation borrowings 1,378 - Total 1,378 -

Non-currentQueensland Treasury Corporation borrowings 9,824 - Total 9,824 -

29. Accrued employee benefits(Refer Note 2(x))

Accrued time - 4,263 Annual leave levy payable 1,280 27,881 Long service leave levy payable 120 4,634 Wages and related costs outstanding 228 6,515 Other employee benefits 8 524 Total 1,636 43,817

30. Other current liabilities

Unearned appropriation revenue for services 3,004 - Unearned revenue 53 140 Total 3,057 140


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2014 2013$'000 $'000

32. Reconciliation of operating surplus/(deficit) to net cash from operating activities

Operating surplus/(deficit) (3,484) 1,188 Non-cash items:

Depreciation expense 88,490 177,724 Amortisation expense 4,940 6,244 Loss on disposal of intangibles - 32 Loss on disposal of property, plant and equipment 2,091 42,324 Gain on sale of property, plant and equipment (265) (1,954) Gain on impairment reversal - - Losses - public property 3 45 Non-current asset donations (1,115) (2,126) Revaluation decrement 12,598 5,035 Revaluation increment - (17) Shares transferred in - - Assets written on (274) (3,211) Assets written off - - Accrued interest expense on loan 564 235

107,031 224,329 Change in assets and liabilities:

Adjustment to assets and liabilities due to machinery-of-government changes - (Increase)/decrease in assetsNet receivables 94,731 (111,049) Inventories 174 1,664 Biological Assets (169) 520 Other Current Assets (25,149) 9,750 GST receivable 6,704 4,113

76,290 (95,003) Increase/(decrease) in liabilitiesAccrued employee benefits (12,191) (166) Accounts payable (193) 10,071 Unearned revenue 19,744 (15,297)

7,359 (5,392)

Net cash from operating activities 187,196 125,121


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33. Commitments for expenditure (a) Non-cancellable operating lease

The operating leases referred to in the table below relate to the leasing of land, buildings and

miscellaneous plant and equipment and are inclusive of anticipated GST and are payable as follows:.

2014 2013$’000 $’000

Payable: Not later than one year 4,133 18,167Later than one year and not later than five years 6,666 23,807Later than five years 2,180 15,434 12,979 57,408

Operating leases are entered into as a means of acquiring access to accommodation and storage facilities. Lease payments were generally fixed, but with inflation escalation clauses on which contingent rentals were determined.

(b) Capital expenditure commitments

Material classes of capital expenditure commitments inclusive of anticipated GST, contracted for at reporting date but not recognised in the accounts are payable as follows:

2014 2013 $’000 $’000 Ambulance stations - 7,787 Ambulances - 10,643 Correctional centres - 33,081 Fire stations 964 4,979 Fire appliances 7,034 2,534 Plant and equipment for correctional centres - 421 Software - 37 Computer hardware 157 490 Other capital - 9,437 8,155 69,409

2014 2013

$’000 $’000

Payable: Not later than one year 8,155 65,175 Later than one year and not later than five years - 4,234 8,155 69,409


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(c) Grants and subsidy commitments

As at 30 June 2014, approval has been given in accordance with formal agreements to pay the following grants and subsidies inclusive of anticipated GST, provided certain criteria are met:

2014 2013

$’000 $’000 Royal Life Saving Society of Queensland Surf Life Saving Queensland Grants to local government Natural Disaster Mitigation Program Australian Volunteer Coast Guard Association Volunteer Marine Rescue Assoc. Queensland Other

-------

69 8,425

13,18315,746

224224

3,276 - 41,147 2014 2013 $’000 $’000

Payable: Not later than one year - 35,826Later than one year and not later than five years - 5,321Later than five years -

- 41,147(d) Other expense commitments

Other expenditure committed inclusive of anticipated GST, at the end of the period but not recognised in the accounts are as follows:

2014 2013 $’000 $’000 Payable: Not later than one year 7,050 118,752 Later than one year and not later than five years 1,098 268,677 8,148 387,429

34. Contingencies

(a) Litigation in progress

The department may receive notification of cases that are not yet subject to court action. These cases may result in subsequent litigation. In such cases it is not always possible to make an estimate of the probable outcomes of these actions, or their financial effect.

At 30 June 2014, the following cases were filed in courts naming the State of Queensland acting through the department as defendant:

2014 2013Personal injury claims - 49 Anti-discrimination claims - 5 Other litigation - 4

Effective 1 July 2001, the department joined the Queensland Government Insurance Fund (QGIF). Under the QGIF, the department would be able to claim back, less a $10,000 deductible, the amount paid to successful litigants. This includes any cases that existed as at 1 July 2001 and cases that have arisen since that date.


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(b) Financial Guarantees

The department has no guarantees operable at 30 June 2014.

(c) Native title claims over departmental land

As at 30 June 2014, 22 native title claims have been received in respect of departmental land. These claims relate to potential areas of interest located within the following registered claimant application areas: Northern Cape York Group; Wangkangurru/ Yarlunyandi; Western Yalanji #4; Yulluna People #3; Mapoon ILUA; Wuthathi Kuuku and Northern Kaanju People; Wuthathi People; Northern Cape York Claim #1; Gunggari People #3; Djiru People; Gudjala People #1 and #2; Gugu Badhun People; Guggandji People; Ewamian People #2 and #3; Qantac Pty Ltd Non Claimant application; Mamu People; Barada Kabalbara Yetimarala People; Brown River People #2; Yuwibara People; Kabi Kabi First Nation; Widi People of the Nebo Estate; Wuthathi People #2. At reporting date it is not possible to make an estimate of any probable outcome of these claims, or any financial effects.

(d) Natural disaster relief and recovery arrangements (NDRRA) The department currently has a number of claims lodged with the Queensland Reconstruction Authority

for reimbursement under the NDRRA regime. Those claims have yet to be finalised and it is therefore not possible to reliably measure any associated revenue at balance date.

35. Parole boards

The outlays of the following statutory authorities established under the Corrective Services Act 2006 have been included within the financial statements:

Queensland Parole Board Southern Queensland Regional Parole Board Central and Northern Queensland Regional Parole Board Expenditure incurred under the above arrangements for the period from 1 July 2013 to 31 October 2013

totalled $0.986M ($2.80M 2013 full year).

36. Events occurring after balance date

Legislation facilitating the transfer of corporate services and other functions of the Queensland Police Service to PSBA was passed in May 2014 with an effective date of transfer being 1 July 2014.

Based on the information available, management is not aware of any other event occurring after balance

date that could have a material impact on the information disclosed in these financial statements.


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37. Financial instruments

(a) Categorisation of financial instruments

The department has the following categories of financial assets and financial liabilities:

Category Note 2014 2013 Financial assets $'000 $'000 Cash and cash equivalents 18 67,778 18,790 Receivables 19 30,173 199,411 Total 97,951 218,201

Financial liabilities Financial liabilities measured at amortised cost:

Payables 27 43,373 105,293 Accrued employee benefits 29 1,636 43,817 Other financial liabilities 28 11,202 - Total 56,211 149,110

(b) Financial risk management The Public Safety Business Agency’s activities expose it to a variety of financial risks - interest rate risk, credit risk, liquidity risk and market risk. Financial risk management is implemented pursuant to Government and departmental policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the department. All financial risk is managed by the Business Services Division of PSBA under policies approved by the department. The department provides written principles for overall risk management, as well as policies covering specific areas. The department measures risk exposure using a variety of methods as follows –

Risk Exposure Measurement method

Credit risk Ageing analysis, earnings at risk

Liquidity risk Sensitivity analysis

Market risk Interest rate Sensitivity analysis

(c) Credit risk exposure Credit risk exposure refers to the situation where the department may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation. The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is the gross carrying amount of those assets inclusive of any provisions for impairment. The following table represents the department's maximum exposure to credit risk based on contractual amounts net of any allowances:


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Maximum Exposure to Credit Risk Category

Note

2014$'000

2013 $'000

Financial assets Cash and cash equivalents 18 67,778 18,790 Receivables 19 30,173 199,411 Shares 23 - 24 Total financial assets subject to credit risk 97,951 218,225

Financial Assets No collateral is held as security and no credit enhancements relate to financial assets held by the department. The department manages credit risk through the use of a credit management strategy. This strategy aims to reduce the exposure to credit default by ensuring that the department invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis. No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position. The allowance for impairment reflects the occurrence of loss events. The most readily identifiable loss event is where a debtor is overdue in paying a debt to the department, according to the due date (normally terms of 30 days). Economic changes impacting the department's debtors, and relevant industry data, also form part of the department's documented risk analysis. If no loss events have arisen in respect of a particular debtor or group of debtors, no allowance for impairment is made in respect of that debt/group of debtors. If the department determines that an amount owing by such a debtor does become uncollectible (after appropriate range of debt recovery actions), that amount is recognised as a Bad Debt expense and written-off directly against Receivables. In other cases where a debt becomes uncollectible but the uncollectible amount exceeds the amount already allowed for impairment of that debt, the excess is recognised directly as a Bad Debt expense and written-off directly against Receivables.

Impairment loss expense for the current year regarding the department's receivables is $0.503M.

Ageing of past due but not impaired as well as impaired financial assets are disclosed in the following tables: 2014 Financial Assets Past Due But Not Impaired Less than 30

Days 30-60 Days

61-90 Days

More than 90 Days

Total

$’000 $’000 $’000 $’000 $’000Receivables 30,113 26 -5 39 30,173 Total 30,113 26 -5 39 30,173

2014 Individually Impaired Financial Assets Overdue Less than 30

Days 30-60 Days

61-90 Days

More than 90 Days

Total

$’000 $’000 $’000 $’000 $’000Receivables (Gross) - - - 14 14 Allowance for impairment - - - (14) (14) Total Amount - - - - -


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2013 Financial Assets Past Due But Not Impaired Financial Assets Less than 30

Days 30-60 Days

61-90 Days

More than 90 Days

Total

$’000 $’000 $’000 $’000 $’000Receivables 18,323 7,439 7,011 7,419 40,192 Shares 24 24 Total 18,347 7,439 7,011 7,419 40,216

2013 Individually Impaired Financial Assets Financial Assets Less than 30

Days 30-60 Days

61-90 Days

More than 90 Days

Total

$’000 $’000 $’000 $’000 $’000Receivables (Gross) - - - 3,165 3,165 Allowance for impairment - - - (3,165) (3,165) Total - - - - -

Movement in Allowance for Impairment 2014 2013 $’000 $’000 Balance at 1 July 3,165 3,467 Increase/decrease in allowance recognised in operating result

(296) 924

Amounts written-off during the year 205 (1,460)

Amounts recovered during the year -

234 Machinery of Government Transfers (3,060) -

Balance at 30 June 14

3,165 (d) Liquidity risk Liquidity risk refers to the situation where the department may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The department is exposed to liquidity risk in respect of its payables and borrowings from Queensland Treasury Corporation for capital works. The borrowings are based on the Queensland Government's gazetted floating rate.

The department manages liquidity risk through the use of a liquidity management strategy. This strategy aims to reduce the exposure to liquidity risk by ensuring the department has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities. The following table sets out the liquidity risk of financial liabilities held by the department. It represents the contractual maturity of financial liabilities, calculated based on undiscounted cash flows relating to the liabilities at reporting date. The undiscounted cash flows in these tables differ from the amounts included in the Statement of Financial Position that are based on discounted cash flows.


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2014 Payable in Total Note

< 1 year

$'000 1 - 5 years

$'000 > 5 years

$'000 $'000 Financial Liabilities Payables 27 43,373 - - 43,373 Accrued employee benefits

29 1,636 - - 1,636

QTC borrowing 1,995 10,295 - 12,290 Total 47,004 10,295 - 57,299

2013 Payable in Total Note

< 1 year

$'000 1 - 5 years

$'000 > 5 years

$'000 $'000 Financial Liabilities Payables 27 105,293 - - 105,293 Accrued employee benefits

29 43,817 - - 43,817

QTC borrowing - - - - Total 149,110 - - 149,110

(e) Market risk

The department does not trade in foreign currency and is not materially exposed to commodity price changes. The department is exposed to interest rate risk through its finance leases, borrowings from Queensland Treasury Corporation and cash deposited in interest bearing accounts. The department does not undertake any hedging in relation to interest risk and manages its risk as per the department's liquidity risk management strategy articulated in the department's Financial Management Practice Manual. (f) Interest rate sensitivity analysis

The following interest rate sensitivity analysis depicts the outcome on net income if interest rates changed by +/- 1% from the year end rates applicable to the department's financial assets and liabilities. With all other variables held constant, the department would have a surplus\ (deficit) and equity increase/(decrease) of $0.112M (2013: $nil). This is mainly attributable to the department's exposure to variable interest rates on its borrowings from Queensland Treasury Corporation.

Financial instruments Carrying amount $’000

2014 Interest rate risk -1% +1%

Profit Equity Profit Equity $’000 $’000 $’000 $’000

QTC borrowings 11,202 112 112 112 112 Potential impact 112 112 112 112

Financial instruments Carrying amount

2013 Interest rate risk -1% +1%

Profit Equity Profit Equity QTC borrowings - - - - - Potential impact - - - - -

(g) Fair value The department does not recognise any financial assets or financial liabilities at fair value. The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment.


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38. Schedule of administered items

The agency managed the collection of fines imposed in relation to breaches of the fire safety legislation from 1 July 2013 to 31 October 2013. From 1 November 2013 the responsibility passed to Queensland Fire and Emergency Services as part of a Machinery-of- Government change. The reported amounts below cover the period for which the agency was responsible for the administration.

2014 2013

$’000 $’000 Administered revenues On-the-spot fines (4) 94 Total administered revenues (4) 94 Administered expenses Transfer of administered revenue to government (4) 94 Total administered expenses (4) 94 Operating Surplus - - Administered assets Receivables - 79 Total current assets - 79 Administered liabilities Transfer to Government Payable - 79 Total current liabilities - 79 Net administered assets - Administered equity Non-appropriated - - Total administered equity - -

39. Trust transactions and balances

The Queensland Ambulance Service, in a trustee capacity, provides administrative support to manage transactions and balances for the Kenneth James McPherson Education and Research Foundation. The Foundation was formed to promote research and education for the improvement of patient treatment in pre-hospital care.

Patrick Hoiberg, Chartered Accountant, is the auditor for the Kenneth James McPherson Education and Research Foundation. The Queensland Ambulance Service was transferred to Queensland Health as part of Machinery-of-Government changes on 1 October 2013. Therefore due to the non-material amounts, the reported financial results for the foundation for the 3 months from 1 July 2013 to 30 September 2013 are not reported in these financial statements.

Kenneth James McPherson Education and Research Foundation

2013

Year ended 30 June $’000

Income 81

Expenses 41

Net operating result 40

Assets 138

Liabilities 20

Net assets 118


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Queensland Volunteer Rural Fire Brigades Donations Fund Queensland Fire and Rescue Services, a division of the former Department of Community Safety (now PSBA) was transferred to Queensland Fire and Emergency Services as part of Machinery-of-Government changes on 1 November 2013. Therefore due to the non-material amounts, the reported financial results for the fund for the 4 months from 1 July 2013 to 31 October 2013 are not reported in these financial statements. Prisoner Trust Fund Queensland Corrective Services administers but does not control, money held in trust on behalf of offenders in custody. As the department performs only a custodial role in respect of these transactions and balances, they are not recognised in the financial statements but are disclosed in these notes as information for financial statements users. Queensland Corrective Services was transferred from the department to the Department of Justice and the Attorney General on 1 November 2013. Therefore the reported results below cover the period 1 July 2013 to 31 October 2013

The Queensland Auditor-General has audited the department’s trust transactions for the reporting

period. Prisoners trust fund

2014 2013 $’000 $’000

Trust revenue and expenses Revenues Prisoner remuneration 3,134 8,963 Other receipts 4,446 11,750

Total 7,580 20,713

Expenses Prisoner expense payments 7,098 18,685 Prisoner discharge payments 736 2,078

Total 7,834 20,763

Trust assets and liabilities Current Assets Cash - 2,382 Receivables - 338

Total trust assets - 2,720

Current Liabilities Payables – offenders - 1,290 Payables – other - 1,430

Total trust liabilities - 2,720


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100


101


102

APPENDICES

Acronyms

AHPL Australian Helicopters Pty Ltd

ARRs Annual report requirements for Queensland Government agencies

CHP Community Helicopter Provider

DCS Department of Community Safety

DHPW Department of Housing and Public Works

DJAG Department of Justice and Attorney-General

DPC Department of the Premier and Cabinet

EVP Emergency Vehicle Priority

GWN Government Wireless Network

HRIS Human Resources Information Solution

ICT Information and communications technology

IGEM Inspector-General Emergency Management

PACSR Police and Community Safety Review

PCYC Queensland Police-Citizens Youth Welfare Association (commonly known as PCYC)

PDRM Police Demand and Resource Model

POH Public Office Holder

PSBA Public Safety Business Agency

PSN Public Safety Network

QAO Queensland Audit Office

QAS Queensland Ambulance Service

QCoA Queensland Commission of Audit

QCS Queensland Corrective Services

QFES Queensland Fire and Emergency Services

QFTAC Queensland Fixated Threat Assessment Centre

QPS Queensland Police Service

QTT Queensland Treasury and Trade

SDCC State Disaster Coordination Centre

SES State Emergency Service


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Compliance checklist

Summary of requirement Basis for requirement Annual report reference

Letter of compliance

A letter of compliance from the accountable officer or statutory body to the relevant Minister

ARRs – section 8 2

Accessibility Table of contents

Glossary

ARRs – section 10.1 3

n/a

Public availability ARRs – section 10.2 1

Interpreter service statement Queensland Government Language Services Policy

ARRs – section 10.3

1

Copyright notice Copyright Act 1968


1

Information licensing Queensland Government Enterprise Architecture – Information licensing


1

General information

Introductory Information ARRs – section 11.1

10-14

Agency role and main functions ARRs – section 11.2 5-6, 10-14, 106

Operating environment ARRs – section 11.3 5, 12

Machinery of Government changes ARRs – section 11.4 6-7

Non-financial performance

Government’s objectives for the community ARRs – section 12.1 11

Other whole-of-government plans/specific initiatives


Agency objectives and performance indicators

ARRs – section 12.3 11, 15

Agency service areas and service standards ARRs – section 12.4 15

Financial performance

Summary of financial performance ARRs – section 13.1 40

Governance – management and structure

Organisational structure ARRs – section 14.1 14

Executive management ARRs – section 14.2 30-33

Related entities ARRs – section 14.3 n/a

Government bodies ARRs – section 14.4 n/a

Public Sector Ethics Act 1994 Public Sector Ethics Act 1994

(section 23 and Schedule)


33

Governance – risk management and accountability

Risk management ARRs – section 15.1 9

External accountability ARRs – section 15.2 34-35

Audit Committee ARRs – section 15.3 9

Internal Audit ARRs – section 15.4 36


104

Summary of requirement Basis for requirement Annual report reference

Public Sector Renewal ARRs – section 15.5 7-8

Information systems and recordkeeping ARRs – section 15.6 36

Governance – human resources

Workforce planning, attraction and performance


Early retirement, redundancy and retrenchment

Directive No.11/12 Early Retirement, Redundancy and Retrenchment


39

Open Data Open Data ARRs – section 17 3

Financial statements

Certification of financial statements FAA – section 62

FPMS – sections 42, 43 and 50


100

Independent Auditor’s Report FAA – section 62

FPMS – section 50


101-102

Remuneration disclosures Financial Reporting Requirements for Queensland Government Agencies


72-75


105

Contacts and key locations Central offices Emergency Services Complex Cnr Park and Kedron Park Roads Kedron Qld 4031

Queensland Police Headquarters 200 Roma Street Brisbane Qld 4000

Level 24 State Law Building 50 Ann Street Brisbane Qld 4000

Mailing address: GPO Box 9879 Brisbane Qld 4001

Telephone No.: 13 QGOV (13 74 68)

PSBA has offices located throughout Queensland. You can locate or contact your nearest office by calling 13 QGOV (13 74 68).


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Public Safety Business Agency2013–2014 Annual Report www.psba.qld.gov.au

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