department of tourism, major events, small business and ...tourism and events development 2, 3, 4 45...

Great state. Great opportunity.

Stat

e Bu

dget

201

4-15

Service Delivery StatementsDepartment of Tourism, Major Events, Small Business

and the Commonwealth Games

2014–15 State Budget Papers1. Budget Speech

2. Budget Strategy and Outlook

3. Capital Statement

4. Budget Measures

5. Service Delivery Statements

Appropriation Bills

Concessions Statement

The suite of Budget Papers is similar to that published in 2013-14.

The Budget Papers are available online at www.budget.qld.gov.au

© Crown copyright All rights reservedQueensland Government 2014

Excerpts from this publication may be reproduced, with appropriate acknowledgement, as permitted under the Copyright Act.

Service Delivery Statements

ISSN 1445-4890 (Print)ISSN 1445-4904 (Online)

2014-15 Queensland State Budget - Service Delivery Statements - Minister for Tourism, Major Events, Small Business and the Commonwealth Games

Department of Tourism, Major Events, Small Business and the

Commonwealth Games Summary of portfolio budgets

Page Agency

2013-14 Adjusted

Budget $’000

2013-14 Est. Actual

$’000

2014-15 Budget

$’000

2 Department of Tourism, Major Events, Small Business and the Commonwealth Games – controlled 99,607 95,116 107,441

Department of Tourism, Major Events, Small

Business and the Commonwealth Games – administered 108,472 107,166 119,393

26 Gold Coast 2018 Commonwealth Games

Corporation 16,515 16,999 29,154 34 Tourism and Events Queensland 118,860 123,612 98,675 Notes: 1. Explanations of variances are provided in the financial statements.

2014-15 Queensland State Budget - Service Delivery Statements - Minister for Tourism, Major Events, Small Business and the Commonwealth Games 1

PORTFOLIO OVERVIEW

Ministerial and portfolio responsibilities The table below represents the agencies and services which are the responsibility of the Minister for Tourism, Major Events, Small Business and the Commonwealth Games:

Minister for Tourism, Major Events, Small Business and the Commonwealth Games

The Honourable Jann Stuckey MP

Assistant Minister for Tourism Gavin King, MP

Department of Tourism, Major Events, Small Business and the Commonwealth Games

Director-General: Dr Richard Eden

Service Area 1: Tourism and Events Development

Service Area 2: Business to Government Services

Gold Coast 2018 Commonwealth Games Corporation CEO: Mark Peters

Objective: To plan, organise and deliver the Commonwealth Games, in conjunction with the Australian Commonwealth Games Association and Commonwealth Games Federation.

Tourism and Events Queensland CEO: Leanne Coddington

Objective: Tourism and Events Queensland is the Queensland Government’s lead marketing, experience and destination development, and major events agency, representing the state’s tourism and events industries.

Additional information about these agencies can be sourced from: � www.dtesb.qld.gov.au � www.gc2018.com � www.tourismeventsqueensland.com.au

2014-15 Queensland State Budget - Service Delivery Statements – Department of Tourism, Major Events, Small Business and the Commonwealth Games 2

RESOURCES AND PERFORMANCE

DEPARTMENTAL OVERVIEW

Strategic direction

The Department of Tourism, Major Events, Small Business and the Commonwealth Games vision is to provide leadership in making Queensland a highly attractive destination for tourists, investment and events, supported by strong, capable and responsive small businesses. The following strategic objectives support this vision: � grow priority markets � deliver a successful Commonwealth Games � enable new products and experiences � competitive small businesses � easier to do business � an agile, high performing and engaged organisation. These objectives contribute to the Government’s objectives for the community to: � grow a four pillar economy—through actions aimed at increasing annual overnight visitor

expenditure from $15 billion in 2010 to $30 billion in 2020 � invest in better infrastructure and planning—through investment attraction strategies, and by

ensuring the Commonwealth Games provides a lasting legacy for Queensland � revitalise front-line services—through continued improvement to business’ ability to transact

online with Government through the business and industry portal. The department works in close partnership with industry and our portfolio partners to achieve our objectives, taking into account external factors such as strong international and interstate competition for tourism and major events and changing business and consumer behaviours and expectations. During 2014-15, the department will: � deliver the third DestinationQ forum on the Sunshine Coast in September 2014 � implement the actions outlined in the Destination Success Action Plan January 2013-June 2015 � attract investment into new and revitalised tourism infrastructure to develop Queensland

tourism destinations � manage the Attracting Aviation Investment Fund to secure new visitors to Queensland � support drive tourism as part of the Queensland Drive Tourism Strategy 2013-15 � continue to develop the Business and Industry Portal to deliver on the Government’s

One-Stop Shop Plan 2013-18 � commence implementation of the Gold Coast 2018 Commonwealth Games (GC2018) Forward

Procurement Plan and GC2018 Business Development Framework � develop and implement the Evaluation and Monitoring Framework to support Embracing our

Games Legacy: Queensland’s legacy for the Gold Coast 2018 Commonwealth Games ™ � lead Queensland Government representation at Glasgow 2014 Commonwealth Games,

including promoting trade and tourism benefits of GC2018 � host the ICC Cricket World Cup and 2015 Asian Cup to leverage benefits for Queensland. � publish a public report of progress towards GC2018.


During 2013-14 key achievements for the department included: � delivered the second annual DestinationQ forum on the Gold Coast on 27-28 August 2013 � launched Destination Success, the 20-year plan for tourism, which was formed on outcomes of

the 2013 DestinationQ forum � in conjunction with the Department of State Development, Infrastructure and Planning,

finalised the GC2018 Venues Delivery Program, completed the redevelopment of the Gold Coast Aquatic Centre and commenced development of the Commonwealth Games Village

� launched Embracing our Games legacy: Queensland’s legacy for the GC2018 and established the Embracing 2018 Advisory Committee

� finalised the GC2018 Procurement Framework and Business Development Framework to reduce red tape for suppliers, create efficiencies for government, help maximise the opportunities and provide support to local businesses

� published the GC2018 Forward Procurement Plan � in conjunction with Gold Coast 2018 Commonwealth Games Corporation, successfully

coordinated the Commonwealth Games Federation Coordination Commission visit which was satisfied with Games preparations and impressed with progress in a range of areas

� actioned key items within the Queensland Small Business Strategy and Action Plan 2013-2015 � delivered Queensland Small Business Week in July 2013 with 4,500 business people

participating in 91 activities and events across the state � developed a central strategy for business related services across the Queensland Government

to support the business and industry portal of the Queensland Government’s One-Stop Shop � launched new online tendering support resources for small businesses in March 2014

including a ‘fit to supply’ diagnostic tool to help businesses determine their supplier capability and an enhanced search function to assist companies to identify open tender opportunities from the “Q-Tender” website

� delivered over 100 Mentoring for Growth panel sessions, with expert business mentors donating around 800 hours of their time to the program

� delivered the Next Generation Tourism Planning Guideline to support the State Planning Policy

� partnered with the Department of National Parks, Recreation, Sport and Racing in running a state-wide EOI process for ecotourism investment opportunities

� completed Stage one Expression of Interest for the Obi Obi Zipline ecotourism opportunity � launched the Queensland Camping Options Toolkit to help local governments effectively

manage camping in their regions � implemented new tourism signage guidelines and online application process for commercial

tourism signage � supported new airline routes to the Sunshine Coast from Auckland and the Gold Coast from

Kuala Lumpur, and the A380 aircraft upgrade by Emirates between Dubai/Brisbane/Auckland under the Attracting Aviation Investment Fund

� delivered 16 tourism investment attraction initiatives and provided case management assistance to 48 tourism investment proponents

� updated and released the Guide to Hotel Investment in Brisbane, in conjunction with the Brisbane City Council

� established a standing offer arrangement for purchasing a whole-of-government customer relationship management platform

� continued the development and delivery of specialist webinars for business and industry, including: - co-delivered over 19 webinars with Chamber of Commerce and Industry Queensland; - delivered 6 specialist topics to assist Small and Medium Enterprises tender for

government business, particularly for Commonwealth Games procurement activities and Tourism Investment; and

- access to Webinar recordings, supporting resource materials and webisodes (short sharp three to five minute clips of webinars) through the Business and Industry Portal.


Departmental Budget Summary

The table below shows the total resources available in 2014-15 from all sources and summarises how resources will be applied by service area and by controlled and administered classifications.


2013-14 Adjusted

Budget $’000

2013-14 Est. Actual

$’000

2014-15 Budget

$’000

CONTROLLED Income Appropriation revenue Deferred from previous year/s 3,164 3,314 16,409 Balance of service appropriation 96,443 71,402 70,432 Other revenue .. 20,400 20,600 Total income 99,607 95,116 107,441 Expenses Tourism and Events Development 92,754 86,402 99,737 Business to Government Services 6,853 8,714 7,704 Total expenses 99,607 95,116 107,441

Operating surplus/deficit .. .. .. Net assets (24) 2,591 18,315 ADMINISTERED Revenue Commonwealth revenue .. .. .. Appropriation revenue 108,472 107,166 119,393 Other administered revenue .. .. .. Total revenue 108,472 107,166 119,393 Expenses Transfers to government .. .. .. Administered expenses 108,472 107,166 119,393 Total expenses 108,472 107,166 119,393 Net assets .. .. ..


Budget Measures Summary1

The table shows a summary of Budget measures relating to the department since the 2013-14 Budget. Further details are contained in Budget Paper No. 4.

Name of Department 2013-14 $’000

2014-15 $’000

2015-16 $’000

2016-17 $’000

2017-18 $’000

Revenue measures Administered .. .. .. .. .. Departmental .. .. .. .. .. Expense measures Administered .. 14,500 4,700 4,700 .. Departmental 10,000 .. .. .. .. Capital measures Administered .. .. .. .. .. Departmental .. .. .. .. .. Notes: 1. The totals reconcile with Budget Paper 4.


Staffing1

Service Areas Notes 2013-14

Adjusted Budget

2013-14 Est. Actual

2014-15 Budget

Tourism and Events Development 2, 3, 4 45 50 60 Business to Government Services 2, 3 62 63 61

TOTAL 107 113 121 Notes: 1. Full-time equivalents (FTEs) as at 30 June. 2. Corporate FTEs are allocated across the service to which they relate. 3. The department participates in a partnership arrangement from which it receives other corporate

services. 4. Small growth attributed to the Gold Coast 2018 Commonwealth Games activities increasing. This will

continue to occur until the program ceases post the 2018 event.


SERVICE PERFORMANCE

Services Our service areas are: Tourism and Events Development Tourism and Events Development service area promotes sustainable industry growth by delivering a strategic, whole-of-Government approach to the future of tourism. It works across Government to improve the planning and approval processes for new tourism industry projects. The service area helps ensure industry has opportunities to invest in our State’s tourism activities, supporting the Government’s objectives for the community to grow tourism as one of the four pillars of the economy and invest in better infrastructure and better planning for our State. Initiatives such as an ecotourism investment model and the Attracting Aviation Investment Fund showcase Queensland as an investment destination attracting investment into our State’s tourism products. This service area also focuses on developing future events for Queensland to ensure our State’s tourism industry and economy benefit from the boost that major events provide. It also works in partnership with the Gold Coast 2018 Commonwealth Games Corporation to plan and prepare for the Commonwealth Games. The department delivers its Tourism and Events Development service in close partnership with Tourism and Events Queensland to ensure events attraction and tourism marketing help grow tourism and to double annual overnight visitor expenditure from $15 billion to $30 billion by 2020. Business to Government Services This service area ensures the government can effectively provide information and services to business, encourage small business growth and foster a diverse economic base for Queensland. Aligned with the department’s objectives to provide a stronger digital and online presence, it promotes engagement by businesses with its interactive online services. This not only improves accessibility to whole of Government business information and services but encourages more effective service delivery by having feedback mechanisms directly connected to our existing services. Small businesses represent over 96% of businesses State-wide and employ almost half of all private sector workers. These businesses are essential for a vibrant Queensland economy. Client satisfaction with Government’s services is measured to ensure we continue to meet business and industry needs.


Red tape reduction In 2013-14 the department further improved services for businesses via the Queensland Government’s Business and Industry Portal (BIP) by releasing new online support resources to reduce red tape and assist small businesses in tendering for government procurement opportunities. The online tendering resources included: � guides for helping small businesses develop competitive tender responses and help them

through the process of supplying to government � a ‘fit to supply’ diagnostic tool to help businesses determine their supplier capability and a list

of key resources to help enhance supplier capabilities � a specialised search function for the ‘Q-Tender’ database of government open tender

opportunities. Resources were developed by the department in collaboration with the Department of Housing and Public Works and the Department of State Development, Infrastructure and Planning; and used experience from the London 2012 Olympic Games and the Glasgow 2014 Commonwealth Games in equipping small and medium sized businesses to tender for commercial contracts. In 2014-15, the department will further progress our ongoing work to reduce red tape through the use of SmartForms technology. This will involve the transformation of manual paper-based business forms to online transactions saving businesses both time and money. 2014-15 Service Summary1

Sources of Revenue

Service area Total cost $’000

State Contribution

$’000

User Charges and

Fees $’000

C’wealth Revenue

$’000

Other Revenue

$’000 Tourism and Events Development 99,737 79,137 .. .. 20,600 Business to Government Services 7,704 7,704 .. .. .. TOTAL 107,441 86,841 .. .. 20,600 Notes: 1. Explanations of variances are provided in the financial statements.


Performance Statement Department of Tourism, Major Events, Small Business and the Commonwealth Games

Notes 2013-14 Target/Est.

2013-14 Est. Actual

2014-15 Target/Est.

Tourism and Events Development

Service standards Amount of additional capital attracted into tourism investment $25 million $25 million $25 million Percentage of applications for the Attracting Aviation Investment Fund evaluated within nine working days 1 90% 100% 90% Percentage of cross-agency tourism project milestones delivered on schedule and on budget 80% 80% 80% Level of Commonwealth Games Federation’s satisfaction with preparedness for the Commonwealth Games Satisfied Satisfied Satisfied State contribution ($000) Other revenue ($000) Total cost ($000)

5, 8, 11 6, 9

7, 10, 12

92,754 ..

92,754

66,002 20,400 86,402

79,137 20,600 99,737

Business to Government Services

Service standards Estimated value of efficiency savings by businesses assisted 2, 3 $60 million $12 million $12 million Estimated value of costs avoided by businesses 3, 4 $110 million $ 80 million $70 million Percentage of overall customer satisfaction with the usefulness of online services 80% 83% 80% State contribution ($000) Other revenue ($000) Total cost ($000)

6,853 ..

6,853

8,714 ..

8,714

7,704 ..

7,704 Notes: 1. Strict procedures are in place under the Attracting Aviation Investment Fund Operational Framework to

ensure timeframes are met. During this period no applications required further data to be provided or in-depth analysis to be undertaken and hence 100% of applications considered were processed within nine working days.


2. The original targets reflected business grants, licencing and regulation information when only a small proportion of the services were delivered online. These services have now been transitioned to a fully online self-service environment and the targets have now been revised downwards to reflect this environment. The reduced unit benefit/saving will be partially offset in cost avoided by businesses due to the significant increases in the volume of activity.

3. The previous methodology for calculating benefits/savings to business is being re-examined to ensure it is still appropriate and inclusive of online delivery. This review will also consider if it is still appropriate to measure efficiency and costs avoided separately, or to develop a combined measure.

4. This measure relies on customer-reported value of services delivered online. The value attributed typically varies with consumption, business sentiment, business conditions and portal brand recognition. The target has been revised down due to customers already operating online and the dramatic reduction in costs already been achieved.

5. The reduction between 2013-14 Target/Estimate and 2013-14 Estimated Actual principally relates to the 2018 Gold Coast Commonwealth Games (GC2018) being contributed directly from the City of Gold Coast Council, rather than as appropriation revenue for services. Also contributing to the reduction is the realignment of funding to match anticipated cashflows for the Gold Coast Show Relocation, Attracting Aviation Investment Fund (AAIF), DestinationQ (DQ) and the GC2018. This is partially offset by funding for development of the Theme Park Capital of Australia advertising campaign.

6. The increase between 2013-14 Target/Estimate and 2013-14 Estimated Actual principally relates to revenue from the City of Gold Coast Council for the GC2018.

7. The reduction between 2013-14 Target/Estimate and 2013-14 Estimated Actual relates to the realignment of funding to match anticipated cashflows for the Gold Coast Show Relocation, Attracting Aviation Investment Fund (AAIF), DQ and the GC2018. This is partially offset by funding for development of the Theme Park Capital of Australia advertising campaign.

8. The reduction between 2013-14 Target/Estimate and 2014-15 Target/Estimate principally relates to the GC2018 being contributed directly from the City of Gold Coast Council, rather than as appropriation revenue for services. The reallocation of controlled funding for the Gold Coast 2018 Commonwealth Games Corporation from controlled to administered contributes to the reduction. This is partially offset by an increase due to the realignment of funding to match anticipated cashflows for projects including the Gold Coast Show Relocation, AAIF, DQ, GC2018 and increased funding for the AFC 2015 Asian Cup.

9. The increase between 2013-14 Target/Estimate and 2014-15 Target/Estimate principally relates to revenue from the City of Gold Coast Council for the GC2018.

10. The increase between 2013-14 Target/Estimate and 2014-15 Target/Estimate principally relates to the realignment of funding to match anticipated cashflows for projects including the Gold Coast Show Relocation, AAIF, DQ, GC2018 and increased funding for the AFC 2015 Asian Cup.

11. The increase between 2013-14 Estimated Actual and 2014-15 Target/Estimate is due to the realignment of funding to match anticipated cashflows for the Gold Coast Show Relocation, AAIF, DQ, GC2018 and increased funding for the AFC 2015 Asian Cup.

12. The increase between 2013-14 Estimated Actual and 2014-15 Target/Estimate is due to the realignment of funding to match anticipated cashflows for the Gold Coast Show Relocation, AAIF, DQ, GC2018 and increased funding for the AFC 2015 Asian Cup.


Administered Items Administered activities are those undertaken by departments on behalf of the Government. The Department of Tourism, Major Events, Small Business and the Commonwealth Games administers funds on behalf of the State which includes the provision of funding to Tourism and Events Queensland and the Gold Coast 2018 Commonwealth Games Corporation. Tourism and Events Queensland is the Queensland Government’s lead marketing, experience development and major events agency, representing the state’s tourism and events industries. Gold Coast 2018 Commonwealth Games Corporation’s purpose is to plan, organise and deliver the Commonwealth Games, in conjunction with the Australian Commonwealth Games Association (ACGA) and the Commonwealth Games Federation (CGF). Financial statements and variance explanations in relation to Administered Items appear in the Departmental Financial Statements.


CAPITAL

Capital program The capital program for the Department of Tourism, Major Events, Small Business and the Commonwealth Games (DTESB) in 2014-15 includes $51.6 million for the development and construction of venues for the Gold Coast 2018 Commonwealth Games and $11 million in capital grants for the construction of new facilities for the Gold Coast Show. Property, Plant and Equipment The capital purchases for the department in 2014-15 include $15.7 million for the development and construction of Gold Coast 2018 Commonwealth Games venues, including: � $14.9 million is allocated towards the Queensland State Velodrome for track cycling � $0.8 million is allocated towards the Belmont Shooting Centre for shooting (clay, target, full

bore, pistol and small bore). Capital Grants The capital grants for the department in 2014-15 include $11 million for construction of new facilities for the Gold Coast Show and $35.9M for the development and construction of Gold Coast 2018 Commonwealth Games venues, including: � $11 million is allocated for capital grants to the Gold Coast Turf Club for the development and

construction of the relocated Gold Coast Showgrounds � $18.7 million is allocated as capital grants for the Carrara Sports and Leisure Centre � $12.6 million is allocated as capital grants for the Coomera Sports and Leisure Centre � $1.2 million is allocated as capital grants for the Runaway Bay Sports Centre � $0.1 million is allocated as capital grants for the Gold Coast Aquatic Centre � $3.3 million is allocated as capital grants for other venues.

Capital budget statement


Notes

2013-14 Adjusted

Budget $’000

2013-14 Est. Actual

$’000

2014-15 Budget

$’000

Capital Purchases1 Total land, buildings and infrastructure .. .. .. Total plant and equipment .. 1,227 15,724 Total other capital .. 46,173 46,865 Total Capital Purchases .. 47,400 62,589 Notes: 1. For more detail on the agency’s capital acquisitions please refer to Budget Paper 3.


BUDGETED FINANCIAL STATEMENTS

ANALYSIS OF BUDGETED FINANCIAL STATEMENTS

An analysis of the department’s budgeted financial statements, as reflected in the department’s financial statements, is provided below. Departmental income statement Total expenses are estimated to be $107.4 million in 2014-15, an increase of $12.3 million from the 2013-14 financial year. The increase is mainly due to additional funding in 2014-15 for the 2018 Gold Coast Commonwealth Games and increased funding for the AFC 2015 Asian Cup and the Attracting Aviation Investment Fund. This is partially offset by a reduction as a result of the reclassification of payments to the Gold Coast 2018 Commonwealth Games Corporation from 1 July 2014 from controlled to administered. The variation in funding over the forward estimates is the result of increased activity associated with preparations for the 2018 Gold Coast Commonwealth Games primarily relating to the development and construction of venues. Chart: Total departmental expenses across the Forward Estimates period

Departmental balance sheet The department’s major assets are in property, plant and equipment with $17.2 million in 2014-15 with this expected to increase to $79 million by 2017-18 for the development and construction of State owned venues for the 2018 Gold Coast Commonwealth Games. The department’s main liabilities relate to payables for long service leave and annual leave levies which are estimated to be $1.5 million by 2017-18.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2013-14 2014-15 2015-16 2016-17 2017-18

$ '0

00

Financial Year

Total Departmental Expenses

Total Expenses


CONTROLLED INCOME STATEMENT

Department of Tourism, Major Events, Small Business and the Commonwealth Games Notes

2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000 Income

Appropriation revenue 1, 6, 11 99,607 74,716 86,841 Taxes .. .. .. User charges and fees .. .. .. Royalties and land rents .. .. .. Grants and other contributions .. .. .. Interest .. .. .. Other revenue 2, 7 .. 20,400 20,600 Gains on sale/revaluation of assets .. .. ..

Total income 99,607 95,116 107,441 Expenses

Employee expenses 3, 8, 12 11,774 12,130 13,283 Supplies and services: - Outsourced service delivery .. .. .. - Other supplies and services 4, 9, 13 11,922 10,340 29,968 Grants and subsidies 5, 10 ,14 71,884 68,619 60,603 Depreciation and amortisation 12 12 7 Finance/borrowing costs .. .. .. Other expenses 4,015 4,015 3,580 Losses on sale/revaluation assets .. .. ..

Total expenses 99,607 95,116 107,441 OPERATING SURPLUS/(DEFICIT) .. .. ..


CONTROLLED STATEMENT OF CHANGES IN EQUITY


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000

Net effect of the changes in accounting policies and prior year adjustments .. .. .. Increase/(decrease) in asset revaluation reserve .. .. .. Net amount of all revenue and expense adjustments direct to equity not disclosed above .. .. .. Net income recognised directly in equity .. .. .. Surplus/(deficit) for the period .. .. .. Total recognised income and expense for the period .. .. .. Equity injection/(withdrawal) 15, 16 .. 1,227 15,724 Equity adjustments (inc. MoG transfers) .. .. .. Total movement in equity for period .. 1,227 15,724


CONTROLLED BALANCE SHEET


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000

CURRENT ASSETS Cash assets 884 1,267 1,256 Receivables 17, 21 794 1,258 1,303 Other financial assets .. .. .. Inventories .. .. .. Other 22, 26 51 51 ..

Non-financial assets held for sale .. .. .. Total current assets 1,729 2,576 2,559

NON-CURRENT ASSETS Receivables .. .. .. Other financial assets .. .. .. Property, plant and equipment 18, 23, 27 7 1,517 17,234 Intangibles .. .. .. Other .. .. ..

Total non-current assets 7 1,517 17,234 TOTAL ASSETS 1,736 4,093 19,793

CURRENT LIABILITIES Payables 691 890 935 Accrued employee benefits 19, 24 1,069 612 543 Interest-bearing liabilities and derivatives .. .. .. Provisions .. .. .. Other .. .. ..

Total current liabilities 1,760 1,502 1,478

NON-CURRENT LIABILITIES Payables .. .. .. Accrued employee benefits .. .. .. Interest-bearing liabilities and derivatives .. .. .. Provisions .. .. .. Other .. .. ..

Total non-current liabilities .. .. ..

TOTAL LIABILITIES 1,760 1,502 1,478 NET ASSETS/(LIABILITIES) (24) 2,591 18,315

EQUITY Capital/contributed equity 20, 25, 28 (37) 2,460 18,184 Accumulated surplus/(accumulated deficit) 13 131 131 Reserves:

- Asset revaluation surplus .. .. .. - Other (specify) .. .. ..

TOTAL EQUITY (24) 2,591 18,315


CONTROLLED CASH FLOW STATEMENT


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000

CASH FLOWS FROM OPERATING ACTIVITIES Inflows

Appropriation receipts 29, 36, 44 99,607 75,050 86,841 User charges and fees .. .. .. Royalties and land rent receipts .. .. .. Grants and other contributions .. .. .. Interest received .. .. .. Taxes .. .. .. Other 30, 37 .. 21,200 20,580

Outflows Employee costs 38, 45 (11,670) (11,976) (13,377) Supplies and services 31, 39, 46 (15,750) (13,866) (33,311) Grants and subsidies 32, 40, 47 (71,884) (68,619) (60,603) Borrowing costs .. .. .. Other 33, 41 (849) (165) (141)

Net cash provided by/(used in) operating activities (546) 1,624 (11)

CASH FLOWS FROM INVESTING ACTIVITIES Inflows

Sales of non-financial assets .. .. .. Investments redeemed .. .. .. Loans and advances redeemed .. .. ..

Outflows Payments for non-financial assets 34, 42, 48 .. (1,227) (15,724) Payments for investments .. .. .. Loans and advances made .. .. ..

Net cash provided by/(used in) investing activities .. (1,227) (15,724)

CASH FLOWS FROM FINANCING ACTIVITIES Inflows

Borrowings .. .. .. Equity injections 35, 43, 49 .. 1,227 15,724

Outflows Borrowing redemptions .. .. .. Finance lease payments .. .. .. Equity withdrawals .. .. ..

Net cash provided by/(used in) financing activities .. 1,227 15,724

Net increase/(decrease) in cash held (546) 1,624 (11) Cash at the beginning of financial year 1,430 (357) 1,267 Cash transfers from restructure .. .. ..

Cash at the end of financial year 884 1,267 1,256


ADMINISTERED INCOME STATEMENT


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000 Income

Appropriation revenue 50, 52, 54 108,472 107,166 119,393 Taxes .. .. .. User charges and fees .. .. .. Royalties and land rents .. .. .. Grants and other contributions .. .. .. Interest .. .. .. Other revenue .. .. .. Gains on sale/revaluation of assets .. .. ..


Employee expenses .. .. .. Supplies and services: - Outsourced service delivery .. .. .. - Other supplies and services .. .. .. Grants and subsidies 51, 53, 55 108,472 107,166 119,393 Depreciation and amortisation .. .. .. Finance/borrowing costs .. .. .. Other expenses .. .. .. Losses on sale/revaluation assets .. .. .. Transfers of Administered Revenue to Government .. .. ..

Total expenses 108,472 107,166 119,393 OPERATING SURPLUS/(DEFICIT) .. .. ..


ADMINISTERED BALANCE SHEET


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000

CURRENT ASSETS Cash assets .. .. .. Receivables .. .. .. Other financial assets .. .. .. Inventories .. .. .. Other .. .. ..

Non-financial assets held for sale .. .. .. Total current assets .. .. .. NON-CURRENT ASSETS

Receivables .. .. .. Other financial assets .. .. .. Property, plant and equipment .. .. .. Intangibles .. .. .. Other .. .. ..

Total non-current assets .. .. ..

TOTAL ASSETS .. .. ..

CURRENT LIABILITIES Payables .. .. .. Transfers to Government Payable .. .. .. Accrued employee benefits .. .. .. Interest-bearing liabilities and derivatives .. .. .. Provisions .. .. .. Other .. .. ..

Total current liabilities .. .. .. NON-CURRENT LIABILITIES

Payables .. .. .. Accrued employee benefits .. .. .. Interest-bearing liabilities and derivatives .. .. .. Provisions .. .. .. Other .. .. ..

Total non-current liabilities .. .. ..

TOTAL LIABILITIES .. .. .. NET ASSETS/(LIABILITIES) .. .. ..

EQUITY Capital/contributed equity .. .. .. Accumulated surplus/(accumulated deficit) .. .. .. Reserves:


TOTAL EQUITY .. .. ..


ADMINISTERED CASH FLOW STATEMENT


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000


Appropriation receipts 56, 58, 60 108,472 113,848 119,393 User charges and fees .. .. .. Royalties and land rent receipts .. .. .. Grants and other contributions .. .. .. Interest received .. .. .. Taxes .. .. .. Other .. .. ..

Outflows Employee costs .. .. .. Supplies and services .. .. .. Grants and subsidies 57, 59, 61 (108,472) (113,848) (119,393) Borrowing costs .. .. .. Other .. .. .. Transfers to Government .. .. ..

Net cash provided by/(used in) operating activities .. .. ..



Outflows Payments for non-financial assets .. .. .. Payments for investments .. .. .. Loans and advances made .. .. ..

Net cash provided by/(used in) investing activities .. .. ..


Borrowings .. .. .. Equity injections .. .. ..


Net cash provided by/(used in) financing activities .. .. .. Net increase/(decrease) in cash held .. .. .. Cash at the beginning of financial year .. .. .. Cash transfers from restructure .. .. ..

Cash at the end of financial year .. .. ..


EXPLANATION OF VARIANCES IN THE FINANCIAL STATEMENTS From 1 July 2014 departments (excluding commercialised business units) will no longer be liable for payroll tax. To provide comparable cost forecasts across all periods, the 2013-14 Adjusted Budget and the 2013-14 Estimated Actual have been recast to reflect the removal of payroll tax from Employee expenses and an associated reduction has been made to Appropriation revenue. The 2013-14 Adjusted Budget Appropriation revenue and Employee expenses have been reduced by $0.385 million. The 2013-14 Estimated Actual Appropriation revenue and Employee expenses have been reduced by $0.399 million.

Income statement Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 1. The reduction principally relates to the revenue for GC2018 being contributed directly from the City of

Gold Coast Council, rather than as appropriation revenue for services. Also contributing to the reduction is the realignment of funding to match anticipated cashflows for the Gold Coast Show Relocation, Attracting Aviation Investment Fund (AAIF), DestinationQ (DQ) and the GC2018. This is partially offset by funding for development of the Theme Park Capital of Australia advertising campaign.

2. The increase principally relates to revenue from the City of Gold Coast Council for the GC2018. 3. The increase is principally due to the reallocation of expenses between employee expenses and supplies

and services for the expected growth occurring in the GC2018. 4. The reduction is mainly due to a realignment of expenses to match anticipated cashflows for the

GC2018 and DQ. 5. The reduction principally relates to a realignment of expenses to match anticipated cashflows for the

AAIF and the Gold Coast Show Relocation. This is partially offset by funding for development of the Theme Park Capital of Australia advertising campaign.

Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 6. The reduction principally relates to the GC2018 being contributed directly from the City of Gold Coast

Council, rather than as appropriation revenue for services. The reallocation of controlled funding for the Gold Coast 2018 Commonwealth Games Corporation from controlled to administered contributes to the reduction. This is partially offset by an increase due to the realignment of funding to match anticipated cashflows for projects including the Gold Coast Show Relocation, AAIF, DQ, GC2018 and increased funding for the AFC 2015 Asian Cup.

7. The increase relates to revenue from the City of Gold Coast Council for the GC2018. 8. The increase is principally due to the reallocation of expenses between employee expenses and supplies

and services for the expected growth occurring in the GC2018. 9. The increase relates to the realignment of expenses to match anticipated cashflows for DQ and

increased activity for the GC2018. This is partially offset by a reduction in expenses following reallocation of expenses between employee expenses and supplies and services for the expected growth occurring in the GC2018.

10. The reduction principally relates to a reduction in expenses following reallocation of controlled funding for the Gold Coast 2018 Commonwealth Games Corporation from controlled to administered. This is partially offset by an increase due to the realignment of funding to match anticipated cashflows for projects including the Gold Coast Show Relocation, AAIF, increased funding for the AFC 2015 Asian Cup and GC2018.

Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 11. The increase is due to the realignment of funding to match anticipated cashflows for the Gold Coast

Show Relocation, AAIF, DQ, GC2018 and increased funding for the AFC 2015 Asian Cup. 12. The increase is principally due to the reallocation of expenses between employee expenses and supplies

and services for the expected growth occurring in the GC2018. 13. The increase relates to realignment of funding to match anticipated cashflows for DQ and GC2018. 14. The reduction principally relates to the reallocation of controlled funding for the Gold Coast 2018

Commonwealth Games Corporation from controlled to administered. This is partially offset by an increase due to the realignment of funding to match anticipated cashflows for projects including the Gold Coast Show Relocation, AAIF and increased funding for the AFC 2015 Asian Cup.


Statement of Changes in Equity Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 15. The increase relates to funding for GC2018 venues works sites, Queensland State Velodrome and the

Belmont Shooting Centre. Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 16. The increase relates to funding for GC2018 venues works sites, Queensland State Velodrome and the

Belmont Shooting Centre.

Balance sheet Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 17. The increase relates to Receivables from the Annual Leave Central scheme and Input Tax Credits from

the Australian Taxation Office. 18. The increase relates to funding for GC2018 venues works sites, Queensland State Velodrome and the

Belmont Shooting Centre. 19. The reduction principally relates to payables for Long Service Leave and Annual Leave Central Scheme. 20. The increase primarily relates to re-profiling for GC2018 Games Venues Construction and a swap from

Equity for Metricon Stadium. Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 21. The increase relates to Receivables from the Annual Leave Central scheme and Input Tax Credits from

the Australian Taxation Office. 22. The reduction reflects prepayments for software maintenance support licenses relating to multiple

financial years. 23. The increase relates to funding for GC2018 venues works sites, Queensland State Velodrome and the

Belmont Shooting Centre. 24. The reduction principally relates to payables for Long Service Leave and Annual Leave Central Scheme. 25. The increase primarily relates to re-profiling for GC2018 Games Venues Construction and a swap from

Equity for Metricon Stadium. Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 26. The reduction reflects prepayments for software maintenance support licenses relating to multiple

financial years. 27. The increase relates to funding for GC2018 venues works sites, Queensland State Velodrome and the

Belmont Shooting Centre. 28. The increase primarily relates to re-profiling for GC2018 Games Venues Construction and a swap from

Equity for Metricon Stadium.

Cash flow statement Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 29. The reduction principally relates to the GC2018 being contributed directly from the City of Gold Coast

Council, rather than as appropriation revenue for services. Also contributing to the reduction is the realignment of funding to match anticipated cashflows for the Gold Coast Show Relocation, AAIF, DQ and GC2018. This is partially offset by funding for development of the Theme Park Capital of Australia advertising campaign.

30. The increase principally relates to revenue from the City of Gold Coast Council for the GC2018. 31. The reduction is mainly due to a realignment of expenses to match anticipated cashflows for the

GC2018 and DQ. 32. The reduction principally relates to a realignment of expenses to match anticipated cashflows for the

AAIF and the Gold Coast Show Relocation. This is partially offset by funding for development of the Theme Park Capital of Australia advertising campaign.

33. The decrease relates to a realignment of expenses in relation to the GC2018. 34. The increase relates to funding for GC2018 venues works sites, Queensland State Velodrome and the

Belmont Shooting Centre. 35. The increase relates to funding for GC2018 venues works sites, Queensland State Velodrome and the

Belmont Shooting Centre.


Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 36. The reduction principally relates to the GC2018 being contributed directly from the City of Gold Coast

Council, rather than as appropriation revenue for services. The reallocation of controlled funding for the Gold Coast 2018 Commonwealth Games Corporation from controlled to administered contributes to the reduction. This is partially offset by an increase due to the realignment of funding to match anticipated cashflows for projects including the Gold Coast Show Relocation, AAIF, DQ, GC2018 and increased funding for the AFC 2015 Asian Cup.

37. The increase relates to revenue from the City of Gold Coast Council for the GC2018. 38. The increase is principally due to the reallocation of expenses between employee expenses and supplies

and services for the expected growth occurring in the GC2018. 39. The increase relates to the realignment of expenses to match anticipated cashflows for DQ and

increased activity for the GC2018. This is partially offset by a reduction in expenses following reallocation of expenses between employee expenses and supplies and services for the expected growth occurring in the GC2018.

40. The reduction principally relates to a reduction in expenses following reallocation of controlled funding for the Gold Coast 2018 Commonwealth Games Corporation from controlled to administered. This is partially offset by an increase due to the realignment of funding to match anticipated cashflows for projects including the Gold Coast Show Relocation, AAIF, increased funding for the AFC 2015 Asian Cup and GC2018.

41. The reduction relates to a realignment of expenses to match anticipated payments in relation to the GC2018.

42. The increase relates to funding for GC2018 venues works sites, Queensland State Velodrome and the Belmont Shooting Centre.


Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 44. The increase is due to the realignment of funding to match anticipated cashflows for the Gold Coast

Show Relocation, AAIF, DQ, GC2018 and increased funding for the AFC 2015 Asian Cup. 45. The increase is principally due to the reallocation of expenses between employee expenses and supplies

and services for the expected growth occurring in the GC2018. 46. The increase relates to realignment of funding to match anticipated cashflows for DQ and GC2018. 47. The reduction principally relates to the reallocation of controlled funding for the Gold Coast 2018

Commonwealth Games Corporation from controlled to administered. This is partially offset by an increase due to the realignment of funding to match anticipated cashflows for projects including the Gold Coast Show Relocation, AAIF and increased funding for the AFC 2015 Asian Cup.



Administered income statement

Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 50. The reduction principally relates to the realignment of grant expenses for TEQ to match cashflows to

known commitments for business and regional events. 51. The reduction principally relates to the realignment of grant expenses for TEQ to match cashflows to

known commitments for business and regional events. Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 52. The increase principally relates to the reallocation of funding for the Gold Coast 2018 Commonwealth

Games Corporation from controlled to administered. Also included is an increase for V8 Supercars funding. This is partially offset by the cessation of deferred grant funding from 2012-13 for TEQ to match cashflows to known commitments for business and regional events taking place in 2013-14.

53. The increase principally relates to the reallocation of funding for the Gold Coast 2018 Commonwealth Games Corporation from controlled to administered. Also included is an increase for V8 Supercars funding. This is partially offset by the cessation of deferred grant funding from 2012-13 for TEQ to match cashflows to known commitments for business and regional events taking place in 2013-14.


Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 54. The increase principally relates to the reallocation of funding for the Gold Coast 2018 Commonwealth



Administered cash flow statement

Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 56. The increase principally relates to the realignment of grant expenses for TEQ to match cashflows to

known commitments for business and regional events. 57. The increase principally relates to the realignment of grant expenses for TEQ to match cashflows to

known commitments for business and regional events. Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 58. The increase principally relates to the reallocation of funding for the Gold Coast 2018 Commonwealth



Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 60. The increase principally relates to the reallocation of funding for the Gold Coast 2018 Commonwealth



2014-15 Queensland State Budget - Service Delivery Statements – Gold Coast 2018 Commonwealth Games Corporation 26

STATUTORY BODIES

GOLD COAST 2018 COMMONWEALTH GAMES CORPORATION

AGENCY OVERVIEW

Strategic direction The Gold Coast 2018 Commonwealth Games Corporation (GOLDOC) was established on 1 January 2012 under the Commonwealth Games Arrangements Act 2011. Its purpose is to plan, organise and deliver the Commonwealth Games, in conjunction with the Australian Commonwealth Games Association (ACGA) and the Commonwealth Games Federation (CGF). The Gold Coast will host the Commonwealth Games from the fourth to 15 April 2018. The Games will be a memorable and exciting celebration of sport and culture. The event will create an atmosphere that inspires achievement, harmony and a sense of unity with the Games vision “to stage a great Games in a great city leaving great memories and great benefits for all”. GOLDOCs objectives are:

� to attract the best athletes to compete in a technically excellent, world class, fun and friendly Commonwealth Games

� to launch the Commonwealth Games into a new decade with an inspiring, memorable and landmark event

� to help our partners make the most of the opportunities presented by the Games � to engage and harness the enthusiasm of our communities � to contribute to economic growth by working with our partners to promote Queensland

tourism, trade and investment � to present the Games in a creative way that will encourage comprehensive and positive

exposure and support. RESOURCES AND PERFORMANCE Over the next year, the Corporation will progress planning activities across all 41 Games functional areas with a focus on key areas including Security, Transport, Sport, Workforce, Venue Operations, Village, Overlay and Technology. These activities include: � validating our strategic plans for key functional areas as part of the official observer program

of the Glasgow 2014 Commonwealth Games � planning for and participating in the Glasgow 2014 Commonwealth Games closing ceremony

when the Commonwealth Games Federation flag is officially lowered and passed on to Gold Coast

� designing and implementing Commonwealth Games Federation requirements for key competition and non-competition venues, including the Commonwealth Games Village

� developing a ticketing and pricing strategy � implementing the sponsorship marketing plan that outlines the strategy to acquire and service

corporate sponsors from within Australia and overseas for the 2018 Commonwealth Games � continuing to implement a suite of corporate software solutions to meet the Corporation’s

needs


� implementing a long-term office accommodation strategy to meet the needs of the Corporation’s forecast workforce

� implementing the risk management framework that integrates with the practices of Games partners and key stakeholders.


STATEMENTS

Staffing

Gold Coast 2018 Commonwealth Games Corporation Notes

2013-14 Adjusted

Budget 2013-14

Est. Actual 2014-15 Budget

Number of FTEs 1 44 46 102 Notes: 1. Full-time equivalents (FTEs) as at 30 June.

Performance Statement

Gold Coast 2018 Commonwealth Games Corporation Notes 2013-14

Target/Est 2013-14

Est. Actual 2014-15

Target/Est

Service standards Commonwealth Games Federations satisfaction with preparedness for the Commonwealth Games

1

Satisfied

Satisfied

Level of target markets engagement in the Commonwealth Games 2 59% 50% Notes: 1. A level of satisfied reflects that the preparation for the Gold Coast 2018 Commonwealth Games is

meeting the anticipated milestones and compliance requirements established by the Commonwealth Games Federation. These obligations are outlined in the Host City Contract, Candidature City Files (Bid Book) and other agreements. Requirements covered include financial arrangements, timelines, programming and service standards. Also refer to this service standard under the Tourism and Events Development service area.

2. The target market is defined as all people over 18 years of age living on the Gold Coast, in Brisbane, within a four hour drive of the Gold Coast (excluding Brisbane and the Gold Coast), Sydney and Melbourne.


INCOME STATEMENT


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000 Income

User charges and fees .. .. .. Grants and other contributions 4,9 17,070 17,070 31,428 Interest 73 152 135 Other revenue .. .. .. Gains on sale/revaluation of assets 1,10 .. 908 ..


Employee expenses 5,11 5,567 4,969 11,236 Supplies and services: - Outsourced service delivery .. .. .. - Other supplies and services 2,6,12 7,583 11,491 16,928 Grants and subsidies .. .. .. Depreciation and amortisation 505 505 959 Finance/borrowing costs .. .. .. Other expenses 3,7 2,860 34 31 Losses on sale/revaluation of assets .. .. ..

Total expenses 16,515 16,999 29,154 OPERATING SURPLUS/(DEFICIT) 8,13 628 1,131 2,409

STATEMENT OF CHANGES IN EQUITY


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000

Net effect of the changes in accounting policies and prior year adjustments .. .. .. Increase/(decrease) in asset revaluation reserve .. .. .. Net amount of all revenue and expense adjustments direct to equity not disclosed above .. .. .. Net income recognised directly in equity .. .. .. Surplus/(deficit) for the period 628 1,131 2,409 Total recognised income and expense for the period 628 1,131 2,409 Equity injection/(withdrawal) .. .. .. Equity adjustments (inc. MoG transfers) .. .. .. Total movement in equity for period 628 1,131 2,409


BALANCE SHEET


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000

CURRENT ASSETS Cash assets 14,21 1,227 3,918 1,498 Receivables 73 324 94 Other financial assets .. 384 384 Inventories .. .. .. Other 211 468 ..

Non-financial assets held for sale .. .. 93 Total current assets 1,511 5,094 2,069

NON-CURRENT ASSETS Receivables .. .. .. Other financial assets 15,18 .. 948 948 Property, plant and equipment 19,22 1,931 1,841 4,116 Intangibles .. .. .. Other .. .. ..

Total non-current assets 1,931 2,789 5,064

TOTAL ASSETS 3,442 7,883 7,133

CURRENT LIABILITIES Payables 16,23 926 4,154 1,292 Accrued employee benefits 386 435 134 Interest-bearing liabilities and derivatives .. .. .. Provisions .. .. .. Other .. .. ..


NON-CURRENT LIABILITIES Payables .. .. .. Accrued employee benefits 51 49 53 Interest-bearing liabilities and derivatives .. .. .. Provisions .. .. .. Other .. .. ..

Total non-current liabilities 51 49 53

TOTAL LIABILITIES 1,363 4,638 1,479

NET ASSETS/(LIABILITIES) 2,079 3,245 5,654

EQUITY Capital/contributed equity .. .. .. Accumulated surplus/(accumulated deficit) 2,079 3,245 5,654 Reserves:


TOTAL EQUITY 17,20,24 2,079 3,245 5,654


CASH FLOW STATEMENT


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000


User charges and fees (1) .. .. Grants and other contributions 26,30 17,070 17,070 31,428 Interest received 76 156 135 Taxes .. 2 .. Other (53) 448 324

Outflows Employee costs 27,31 (5,470) (4,772) (11,533) Supplies and services 25,28,32 (9,884) (8,946) (19,653) Grants and subsidies .. .. .. Borrowing costs .. .. .. Other 55 15 111

Net cash provided by/(used in) operating activities 1,793 3,973 812



Outflows Payments for non-financial assets 29,33 (1,060) (1,365) (3,232) Payments for investments .. .. .. Loans and advances made .. .. ..

Net cash provided by/(used in) investing activities (1,060) (1,365) (3,232)




Net cash provided by/(used in) financing activities .. .. ..

Net increase/(decrease) in cash held 733 2,608 (2,420) Cash at the beginning of financial year 494 1,310 3,918 Cash transfers from restructure .. .. .. Cash at the end of financial year 1,227 3,918 1,498


EXPLANATION OF VARIANCES IN THE FINANCIAL STATEMENTS Income statement Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 1. An increase due to an unrealised foreign exchange gain arising from the actual revaluation of hedged

derivatives undertaken in December 2013. 2. An increase in supplies and services mainly due to a reclassification of budgeted Commonwealth Games

Federation licence fees from other expenses. 3. A decrease in other expenses due to the reclassification of budgeted Commonwealth Games Federation

licence fees to supplies and services. Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 4. An increase in grants and other contributions due to additional activity required to meet the milestones

and compliance requirements set by the Commonwealth Games Federation. Major items for 2014-15 include progressing strategic, operational and functional area planning, venue design and master planning, office accommodation expansion and corporate systems implementation.

5. An increase in employee expenses due to additional staff numbers required to deliver the milestones and compliance requirements set by the Commonwealth Games Federation supported by internal corporate resourcing.

6. An increase in supplies and services associated with additional activity required to meet the milestones and compliance requirements set by the Commonwealth Games Federation and reclassification of budgeted Commonwealth Games Federation licence fees from other expenses. Major items for 2014-15 include progressing strategic, operational and functional area planning, venue design and master planning, office accommodation expansion and corporate systems implementation.

7. A decrease in other expenses due to the reclassification of budgeted Commonwealth Games Federation licence fees to supplies and services.

8. An increase in the operating surplus due to a greater allocation of operating expenditure to capital expenditure for corporate software solutions and office accommodation expansion.

Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 9. An increase in grants and other contributions due to additional activity required to meet the milestones

and compliance requirements set by the Commonwealth Games Federation. Major items for 2014-15 include progressing strategic, operational and functional area planning, venue design and master planning, office accommodation expansion and corporate systems implementation.

10. A decrease in revaluation of assets as this will be determined when hedged derivatives are re-valued in December 2014.

11. An increase in employee expenses due to additional staff numbers required to deliver the milestones and compliance requirements set by the Commonwealth Games Federation supported by internal corporate resourcing.

12. An increase in supplies and services associated with additional activity required to meet the milestones and compliance requirements set by the Commonwealth Games Federation. Major items for 2014-15 include progressing strategic, operational and functional area planning, venue design and master planning, office accommodation expansion and corporate systems implementation.

13. An increase in the operating surplus due to a greater allocation of operating expenditure to capital expenditure for corporate software solutions and office accommodation expansion.

Balance sheet Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 14. An increase in cash assets resulting from the timing of supplier payments planned for 2013-14 in

2014-15. 15. An increase in other financial assets due to the initial recognition of hedged derivatives in

December 2013. 16. An increase in payables commensurate with additional activity required to meet the milestones and

compliance requirements set by the Commonwealth Games Federation. 17. An increase in accumulated surplus due to a greater allocation of operating expenditure to capital

expenditure.


Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 18. An increase in other financial assets due to the initial recognition of hedged derivatives in

December 2013. 19. An increase in property, plant and equipment commensurate with budgeted capital expenditure for

systems and office accommodation offset by accumulated depreciation. 20. An increase in accumulated surplus due to a greater allocation of operating expenditure to capital

expenditure for corporate software solutions and office accommodation expansion. Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 21. A decrease in cash assets due to a large component of work programs planned for completion in June

2014 with payment released in 2014-15. 22. An increase in property, plant and equipment commensurate with budgeted capital expenditure for

systems and office accommodation offset by accumulated depreciation. 23. A decrease in payables commensurate with a large component of work programs planned for

completion in June 2014 and paid in 2014-15. The timing planned for these payments results in a larger 2013-14 payables balance.

24. An increase in accumulated surplus due to a greater allocation of operating expenditure to capital expenditure.

Cash flow statement Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 25. An increase in outflows for supplies and services mainly due to a reclassification of budgeted

Commonwealth Games Federation licence fees from other expenses. Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 26. An increase in inflows from grants and other contributions due to additional activity required to meet

the milestones and compliance requirements set by the Commonwealth Games Federation. Major items for 2014-15 include progressing the strategic, operational and functional area planning, venue design and master planning, office accommodation expansion and corporate systems implementation.

27. An increase in outflows for employee expenses due to additional staff numbers required to deliver the milestones and compliance requirements set by the Commonwealth Games Federation supported by internal corporate resourcing.

28. An increase in outflows for supplies and services associated with additional activity required to meet the milestones and compliance requirements set by the Commonwealth Games Federation. Major items for 2014-15 include progressing the strategic, operational functional area planning, venue design and master planning, office accommodation expansion and corporate systems implementation.

29. An increase in payments for non-financial assets due to an increase in budgeted property, plant and equipment for systems and office accommodation offset by accumulated depreciation.

Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 30. An increase in inflows from grants and other contributions due to additional activity required to meet

the milestones and compliance requirements set by the Commonwealth Games Federation. Major items for 2014-15 include progressing of strategic, operational and functional area planning, venue design and master planning, office accommodation expansion and corporate systems implementation.

31. An increase in outflows for employee expenses due to additional staff numbers required to deliver the milestones and compliance requirements set by the Commonwealth Games Federation supported by internal corporate resourcing.

32. An increase in outflows for supplies and services associated with additional activity required to meet the milestones and compliance requirements set by the Commonwealth Games Federation. Major items for 2014-15 include progressing the strategic, operational functional area planning, venue design and master planning, office accommodation expansion and corporate systems implementation.

33. An increase in payments for non-financial assets due to an increase in budgeted property, plant and equipment for systems and office accommodation offset by accumulated depreciation.

2014-15 Queensland State Budget - Service Delivery Statements – Tourism and Events Queensland 34

TOURISM AND EVENTS QUEENSLAND

AGENCY OVERVIEW

Strategic direction In December 2012, the Queensland Government created Tourism and Events Queensland (TEQ), bringing together the resources and expertise of Tourism Queensland and Events Queensland. TEQ was established to achieve economic and social benefits for the State through the marketing and promotion of tourism in Queensland, tourism experience and destination development, and securing major events to be held in Queensland. Tourism has been identified by the Government as one of the State’s four key economic pillars. Recognising that tourism and events are intrinsically linked, the creation of TEQ ensures a coordinated and strategic approach to maximise domestic and international visitor markets and support the Government’s goal to double annual overnight visitor expenditure from $15 billion to $30 billion by 2020. TEQ works collaboratively with other Government agencies and industry to: � drive growth in Queensland’s tourism and event industries � support the goal of achieving $30 billion in annual overnight visitor expenditure by 2020 � deliver economic and social benefits throughout the State. Over the past year, TEQ has implemented a rigorous new key performance indicator (KPI) framework around its activities. In 2013-14, TEQ also undertook a comprehensive strategic review, ensuring the future operational focus of the organisation is closely aligned to achieving industry growth targets. The review identified six areas of operational focus: marketing, tourism and events business attraction, commercial partnerships, destination and experience development, destination partnerships, and research, economics and insights. These focus areas are clearly aligned to strengthening destination partnerships and driving industry growth. In 2014-15, TEQ will continue to work closely with the Department of Tourism, Major Events, Small Business and the Commonwealth Games (DTESB) to deliver on the DestinationQ and Destination Success priorities. TEQ will also continue working collaboratively with each of the 13 regional tourism organisations (RTO) to develop and implement a new destination tourism plan. Each destination tourism plan will focus on bringing together key stakeholders in regions to deliver on the 2020 goal, ensuring each of Queensland’s destinations drive visitation and maximise tourism and event opportunities. TEQ operates in a competitive national and international environment in an industry where global economic conditions and other external shocks such as natural disasters may influence visitation trends and overnight visitor expenditure. TEQ is ready to adapt and reprioritise operations quickly in the event of an external shock or other changing circumstances. RESOURCES AND PERFORMANCE During 2014-15, TEQ will continue its strong focus on putting Queensland destinations at the heart of a tourism and events business structure. TEQ will also provide up to $4 million for Arts and Blockbuster events that provide demonstrable economic and cultural benefits to Queensland. Proposals will be assessed in accordance with TEQ's benefit assessment framework.


TEQ will continue to leverage 2013-14 successes in tourism and events, including: � working with RTO’s and industry to develop and embed the Destination Tourism Planning

(DTP) framework with agreed tourism and event priorities to 2020. The DTP framework will be underpinned by two key strategic documents created by TEQ in 2013-14, including the 2020 Strategic Marketing Plan and 2020 Events Strategy

� implementing a rigorous new KPI framework around marketing activities, including building consumer awareness, intention to travel and positive destination brand perceptions

� delivering on Destination Success priorities with a strong focus on implementing partnership agreements between DTESB, TEQ, the Queensland Tourism Industry Council

� undertaking a comprehensive strategic review which, in addition to identifying the six key operational focus areas outlined above also incorporated a targeted approach to international growth markets including strengthening Queensland’s presence in China, India and South-East Asia

� supporting a diverse portfolio of events. In 2012-13, investment in 44 major events drove event-specific travel attracting 688,000 visitors, delivering more than 1.08 million direct visitor nights and direct and incremental expenditure of $289 million

� growing Queensland’s major events calendar, including securing new arts and cultural events such as Opera on the Beach in Coolangatta in 2014 and the Australian Performing Arts Market in Brisbane for the years 2014, 2016 and 2018. New sporting events were also secured, including the 2017 UCI Mountain Bike and Trials Championships in Cairns, 2014 Mountain Bike Marathon National Championships in the Scenic Rim region, Lawn Bowls Australian Open from 2015-2019 on the Gold Coast and the Bundaberg Cup touch football tournament in the Bundaberg-North Burnett Region from 2015-2020

� continuing with a strong focus on commercial partnerships, including the $12 million, three-year Memorandum of Understanding with Qantas

� delivering on DestinationQ priorities, including working with DTESB to increase the aviation route capacity into Queensland in partnership with airlines and Queensland’s airports through the Attracting Aviation Investment Fund

� providing $7 million in financial support to the regional tourism organisation network to grow regional tourism, provide new experiences, and support the overall industry goal of $30 billion in overnight visitor expenditure by 2020. This support included $4 million to 13 regional tourism organisations as core grant funding. The remaining $3 million was made available through an incentivised, contestable grant which was leveraged with $2.7 million in partner contributions to deliver 22 marketing and development projects

� supporting 85 events in the regions in 2013-14 through the $3 million TEQ Regional Development Program

� creating the most comprehensive portfolio of supported regionals events of any state in Australia with more than $23 million invested across 1,068 events since 2001

� hosting Tourism Australia’s annual global Australian Tourism Exchange (ATE) trade event in Cairns in 2014. This is the first Australian regional centre to host this event and is expected to attract thousands of participants from across the world, including Australian tourism operators, key international buyer companies and international and Australian travel trade media.


STATEMENTS

Staffing1

Tourism and Events Queensland Notes 2013-14

Adjusted Budget

2013-14 Est. Actual

2014-15 Budget

148 148 140 Notes: 1. Full-time equivalents (FTEs) as at 1 April 2014.

Performance Statement

Tourism and Events Queensland Notes 2013-14 Target/Est.

2013-14 Est. Actual

2014-15 Target/Est.

Service standards Overnight visitor expenditure generated by major events within the TEQ portfolio

1, 2 $75 million $150 million $125 million

Direct and incremental spending generated by major events within the TEQ portfolio

1, 3 $166 million $200 million $180 million

Visitors to Queensland generated by major events within the TEQ portfolio

1, 4 265,000 128,000 128,000

Direct visitor nights generated by major events within the TEQ portfolio

1, 5 338,000 750,000 750,000

Publicity and promotional value generated by TEQ activities

$190 million $200 million $190 million

Value of cooperative investment in marketing campaigns $7 million $9.7 million $7 million Satisfaction with TEQ’s development programs 6 70% 80% 70%

Notes: 1. As noted in the 2013-14 Service Delivery Statements, the 2013-14 service standards and associated

Target/est. have been designed to improve performance reporting for the newly formed Tourism and Events Queensland, which was established in December 2012. As TEQ continues to refine its services and operations, further enhancements to performance reporting will be introduced. The target for these measures had been estimated based on available data at that time on event related visitor expenditure. The definition of a visitor has since been realigned to be consistent with accepted tourism definitions. Benchmarking for this measure will be available upon the completion of 2013-14.


2. This measure captures the overnight visitor expenditure from visitors who travelled more than 40 kilometres and spent at least one night away from their normal place of residence. 2013-14 was the first year this measure has been reported and the 2014-15 target increased accordingly based on the expected performance of the current event portfolio.

3. Direct and incremental spending measures the additional consumption demand created by an event. It includes spending: � that occurred only because of the event (i.e. direct – spending by event-related visitation only);

and � by visitors to an event which is incremental as it excludes spending associated with the event by

local residents. 4. This measure captures the number of interstate and international visitors who travelled specifically to

attend a major event within the TEQ portfolio. 2013-14 was the first year this measure has been reported and the 2014-15 target decreased to reflect direct unique visitors to Queensland. The original target number was based on historic total attendee data rather than direct unique visitors (an attendee may attend an event multiple times).

5. This measure captures the number of nights spent in Queensland by non-local residents (who travelled for the primary purpose of attending the event). The 2013-14 target has been significantly exceeded and the 2014-15 target increased to reflect the expected performance of the event portfolio.

6. This service standard remains the same as 2013-14 although there has been a minor change to the wording of this measure. The wording of this measure has been edited to acknowledge that participants may be broader than industry members. As per the Tourism and Events Queensland Act 2012, TEQ is focused on destination and experience development and will engage with a range of stakeholders.


INCOME STATEMENT

Tourism and Events Queensland Notes

2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000 Income

User charges and fees 1,10 7,000 9,744 7,000 Grants and other contributions 2,8 111,582 110,676 91,075 Interest 228 200 200 Other revenue 50 402 400 Gains on sale/revaluation of assets .. .. ..


Employee expenses 3,9 17,211 16,810 16,400 Supplies and services: - Outsourced service delivery .. .. .. - Other supplies and services 4,8,11 45,617 53,381 37,996 Grants and subsidies 5,8,12 54,452 49,878 42,400 Depreciation and amortisation 330 284 629 Finance/borrowing costs .. .. .. Other expenses 1,250 1,516 1,250 Losses on sale/revaluation of assets 6 .. 1,743 ..

Total expenses 118,860 123,612 98,675 OPERATING SURPLUS/(DEFICIT) 7 .. (2,590) ..

STATEMENT OF CHANGES IN EQUITY


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000

Net effect of the changes in accounting policies and prior year adjustments .. .. .. Increase/(decrease) in asset revaluation reserve .. .. .. Net amount of all revenue and expense adjustments direct to equity not disclosed above .. .. .. Net income recognised directly in equity .. .. .. Surplus/(deficit) for the period .. (2,590) .. Total recognised income and expense for the period .. (2,590) .. Equity injection/(withdrawal) .. .. .. Equity adjustments (inc. MoG transfers) .. .. .. Total movement in equity for period .. (2,590) ..


BALANCE SHEET


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000

CURRENT ASSETS Cash assets 2,082 2,607 2,807 Receivables 13 7,834 6,500 5,248 Other financial assets 14 931 .. .. Inventories .. .. .. Other 93 122 125

Non-financial assets held for sale .. .. .. Total current assets 10,940 9,229 8,180

NON-CURRENT ASSETS Receivables .. .. .. Other financial assets 15 .. 1,608 1,608 Property, plant and equipment 1,270 1,966 1,737 Intangibles .. .. .. Other .. .. ..

Total non-current assets 1,270 3,574 3,345 TOTAL ASSETS 12,210 12,803 11,525

CURRENT LIABILITIES Payables 16 4,378 6,549 5,225 Accrued employee benefits 2,698 2,112 2,148 Interest-bearing liabilities and derivatives 58 .. .. Provisions .. .. .. Other 745 282 282


NON-CURRENT LIABILITIES Payables 275 225 225 Accrued employee benefits 623 482 492 Interest-bearing liabilities and derivatives 92 .. .. Provisions .. .. .. Other .. .. ..

Total non-current liabilities 990 707 717

TOTAL LIABILITIES 8,869 9,650 8,372 NET ASSETS/(LIABILITIES) 3,341 3,153 3,153

EQUITY Capital/contributed equity 9,557 12,908 12,908 Accumulated surplus/(accumulated deficit) (6,216) (9,755) (9,755) Reserves:


TOTAL EQUITY 3,341 3,153 3,153


CASH FLOW STATEMENT


2013-14 Adjusted

Budget $’000

2013-14 Est. Act.

$’000

2014-15 Budget

$’000


User charges and fees 17 10,772 13,333 8,262 Grants and other contributions 18,22 111,582 110,676 91,075 Interest received 230 202 202 Taxes (50) .. .. Other 88 390 388

Outflows Employee costs (17,165) (16,764) (16,354) Supplies and services 19,22 (51,089) (58,853) (39,423) Grants and subsidies 20,22 (54,452) (49,878) (42,400) Borrowing costs .. .. .. Other (1,150) (1,416) (1,150)

Net cash provided by/(used in) operating activities (1,234) (2,310) 600



Outflows Payments for non-financial assets 21 (183) (1,500) (400) Payments for investments .. .. .. Loans and advances made .. .. ..

Net cash provided by/(used in) investing activities (183) (1,500) (400)




Net cash provided by/(used in) financing activities .. .. ..

Net increase/(decrease) in cash held (1,417) (3,810) 200 Cash at the beginning of financial year 3,499 6,417 2,607 Cash transfers from restructure .. .. .. Cash at the end of financial year 2,082 2,607 2,807


EXPLANATION OF VARIANCES IN THE FINANCIAL STATEMENTS Income statement Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 1. The increase reflects additional revenues generated through cooperative participation by industry in

jointly managed marketing campaigns. 2. The decrease is principally explained by the lower than estimated deferral of grant funding from

2012-13 to 2013-14 to match the timing of anticipated program activity. 3. The reduction reflects a small number of vacancies in budgeted positions. 4. The increase is due to the reclassification of some event related expenditures between grants and

subsidies and supplies and services and additional marketing expenditure in line with additional income generated through cooperative participation by industry in jointly managed marketing campaigns.

5. The decrease is due to the reclassification of some event related expenditures between grants and subsidies and supplies and services.

6. The unbudgeted expenditure relates to the impairment of investment assets, namely the Asia Pacific Screen Awards Ltd and Gold Coast Events Co. Pty Ltd, recognised as a non-cash expense as required by Australian Accounting Standards.

7. The operating deficit for the 2013-14 Estimated actual is due to a non-cash expense entry to recognise the impairment of investment assets, namely the Asia Pacific Screen Awards Ltd and Gold Coast Events Co. Pty Ltd, in addition to a small amount of expenditure incurred in 2013-14 relating to event activity where the associated grant revenue was recognised in a prior financial year as required by Australian Accounting Standards.

Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 8. The decrease primarily reflects the deferral of grant funding included in the 2013-14 Adjusted budget to

match the timing of anticipated program activity. 9. The decrease reflects the reduction in the number of employees.

Major variations between 2013-14 Estimated actual and the 2014-15 Budget include: 10. The decrease is due to the reduction in cooperative income from jointly managed marketing campaigns

in line with the 2014-15 Budget for grant funding. 11. The decrease is due to the deferral of grant funding included in 2013-14 Estimated actual in addition to

the reduction in marketing expenditure as a result of reduced cooperative income from jointly managed marketing campaigns in line with the 2014-15 Budget for grant funding.

12. The decrease is due to the deferral of grant funding included in 2013-14 Estimated actual to match the timing of anticipated program activity.

Balance sheet Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 13. Decrease in receivables reflects the reduction in deferred grant funding. 14. Current other financial asset represents foreign currency hedges. 15. Non-current other financial asset represents an investment in Gold Coast Events Management Ltd, a

wholly owned subsidiary. 16. Increase in payables reflects the increased level of activity expected in May and June 2014 where

payments will not be due until the 2014-15 financial year.

Cash flow statement Major variations between 2013-14 Adjusted budget and 2013-14 Estimated actual include: 17. The increase reflects additional revenues generated through cooperative participation by industry in

jointly managed marketing campaigns. 18. The decrease is principally explained by the lower than estimated deferral of grant funding from

2012-13 to 2013-14 to match the timing of anticipated program activity. 19. The increase is due to the reclassification of some event related expenditures between grants and

subsidies and supplies and services and additional marketing expenditure in line with additional income generated through cooperative participation by industry in jointly managed marketing campaigns.

20. The decrease is due to the reclassification of some event related expenditures between grants and subsidies and supplies and services.

21. The increase represents payments for property, plant and equipment including office fit-out.


Major variations between 2013-14 Adjusted budget and 2014-15 Budget include: 22. The decrease reflects the deferral of grant funding included in the 2013-14 Adjusted budget to match

the timing of anticipated program activity.

GLOSSARY OF TERMS

Accrual Accounting — Recognition of economic events and other financial transactions involving revenue, expenses, assets, liabilities and equity as they occur and reporting in financial statements in the period to which they relate, rather than when a flow of cash occurs.

Administered Items — Assets, liabilities, revenues and expenses an entity administers, without discretion, on behalf of the Government.

Agency/Entity — Used generically to refer to the various organisational units within Government that deliver services or otherwise service Government objectives. The term can include departments, commercialised business units, statutory bodies or other organisations established by Executive decision.

Appropriation — Funds issued by the Treasurer, under Parliamentary authority, to agencies during a financial year for: � delivery of agreed services � administered items � adjustment of the Government’s equity in agencies, including

acquiring of capital.

Balance Sheet — A financial statement that reports the assets, liabilities and equity of an entity as at a particular date.

Capital — A term used to refer to an entity’s stock of assets and the capital grants it makes to other agencies. Assets include property, plant and equipment, intangible items and inventories that an entity owns/controls and uses in the delivery of services.

Cash Flow Statement

— A financial statement reporting the cash inflows and outflows for an entity’s operating, investing and financing activities in a particular period.

Controlled Items — Assets, liabilities, revenues and expenses that are controlled by departments. These relate directly to the departmental operational objectives and arise at the discretion and direction of that department.

Depreciation — The periodic allocation of the cost of physical assets, representing the amount of the asset consumed during a specified time.

Equity — Equity is the residual interest in the assets of the entity after deduction of its liabilities. It usually comprises the entity’s accumulated surpluses/losses, capital injections and any reserves.

Equity Injection — An increase in the investment of the Government in a public sector agency.

Financial Statements

— Collective description of the Income Statement, the Balance Sheet and the Cash Flow Statement for an entity’s controlled and administered activities.

Income Statement — A financial statement highlighting the accounting surplus or deficit of an entity. It provides an indication of whether the entity has sufficient revenue to meet expenses in the current year, including non-cash costs such as depreciation.

Outcomes — Whole-of-government outcomes are intended to cover all dimensions of community well being. They express the current needs and future aspirations of communities, within a social, economic and environment context.

Own-Source Revenue

— Revenue that is generated by an agency, generally through the sale of goods and services, but it may also include some Commonwealth funding.

Priorities — Key policy areas that will be the focus of Government activity.

Services — The actions or activities (including policy development) of an agency which contribute to the achievement of the agency’s objectives.

For a more detailed Glossary of Terms, please refer to the Reader’s Guide available on the Budget website at www.budget.qld.gov.au.

State Budget 2014-15 Service Delivery Statements www.budget.qld.gov.au

State Budget 2014–15 Service Delivery Statements www.budget.qld.gov.au

department of tourism, major events, small business and ...tourism and events development 2, 3, 4 45...

Documents