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Australian Technology Park

ANNUAL REPORT 2013


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Australian Technology Park Sydney Limited 2 Locomotive St Suite 3220 Locomotive Workshop Eveleigh NSW 2015

02 MINISTER’S LETTER 03 CHARTER 04 FROM THE CHAIRMAN AND MANAGING DIRECTOR

Phone: (02) 9209 4220 Facsimile: (02) 9209 4222

06 CORPORATE GOVERNANCE

Office hours: 8.30am to 5.30pm Monday to Friday

08 INNOVATION

ISSN: 1445-7369

12 SUSTAINABILITY 14 COMMUNITY 16 HERITAGE 18 OPERATIONS 19 PROPERTY SERVICES 20 CONFERENCE AND EXHIBITION CENTRE 21 KOORI JOB READY 21 EVELEIGH MARKET 22 DIRECTOR’S REPORT 26 DIRECTOR’S DECLARATION 27 AUDITOR’S INDEPENDENCE DECLARATION 28 INDEPENDENT AUDITORS REPORT 32 FINANCIAL STATEMENTS AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


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The Hon. Brad Hazzard M.P. Minister for Planning and Infrastructure, Minister assisting the Premier on Infrastructure Governor Macquarie Tower Farrer Place Sydney

Dear Minister Hazzard, We are pleased to submit for presentation to the Parliament of NSW the Australian Technology Park Sydney Limited Annual Report for the year ending 30 June 2013. This report has been prepared in accordance with the NSW Annual Report (Statutory Bodies) Act 1984, the Annual Report (Statutory Bodies) Regulation 2010 and the Growth Centres (Development Corporations) Act 1974. Yours sincerely,

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Dr Colin Gellatly AO Chairman ATPSL

Sean O’Toole Managing Director ATPSL


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LOCATED ON A CAMPUS OF AROUND 14 HECTARES THAT WAS ONCE THE EVELEIGH RAILWAY YARDS, THE ADAPTIVE REUSE AND DEVELOPMENT OF NEW BUILDINGS AT ATP IS NOW THE CENTREPIECE OF THE REVITALISATION OF REDFERN.

CHARTER The Australian Technology Park (ATP) was established as an initiative of the University of New South Wales, the University of Sydney and the University of Technology (Sydney), with support from the NSW Government and the Federal Government. From July 2000, the Park was owned and managed by the Sydney Harbour Foreshore Authority, until it became a wholly-owned subsidiary of the Redfern-Waterloo Authority (RWA) in April 2005. In January 2012 when RWA concluded operations, responsibility for ATP was handed to the Sydney Metropolitan Development Authority, now UrbanGrowth NSW Development Corporation. Located on a campus of around 14 hectares that was once the Eveleigh Railway Yards, the adaptive reuse and development of new buildings at ATP is now the centrepiece of the revitalisation of Redfern. The purpose of ATP is to provide an environment for collaborative research, knowledge sharing and development where companies can forge alliances and access support for commercialisation. ATP’s first decade was one of significant technological and scientific innovation. Since 2005, an investment of more than $57 million has resulted in a new roads, infrastructure and commercial buildings.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

The aim is for the Park to be fully developed within the next ten years, with an ultimate workforce of more than 9,000 permanent employees, making the precinct the main driver of the area’s economic growth over the next decade. The Park is well on its way towards this goal and already has a current workforce of around 3,000 employees and is a regular venue for conferences and corporate events.


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WE ARE PLEASED TO PRESENT THE 2012/13 ANNUAL REPORT FOR AUSTRALIAN TECHNOLOGY PARK SYDNEY LTD.

FROM THE CHAIRMAN AND MANAGING DIRECTOR

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

WE AGAIN HAD A SUCCESSFUL YEAR RECORDING A NET SURPLUS OF $8.607M. This year income from the property services business grew reflecting higher than anticipated rental growth and tenant occupancy, which reached 100% in April. The conference and exhibition centre again attracted some large and high profile events, and our revenue from parking reflects the high level of activity and the success of both business units.

Looking forward we envisage a number of new and exciting challenges. In 2013/14 we will explore opportunities to develop the vacant development sites in the Park. We will also provide a strategic review of the conference and events business to prepare for the significant change to the market that will be experienced during and after the Sydney Exhibition Centre refurbishment.

Throughout the year we focused on sustainability, one of our key values. This is reflected in our nomination for a Green Globe Heritage award in 2013. Some of our major sustainability initiatives included increasing the NABERS performance of our main buildings, the introduction of a quarterly e-Waste collection service and our ability to offer conference centre clients carbon neutral events. Projects like these make commercial sense, improve our environmental performance and demonstrate our commitment to a sustainable future.

We have also started discussions with the National Centre of Indigenous Excellence on the transfer of the Koori Job Ready program, and with Carriageworks on the transfer of Eveleigh Market. These potential transfers will allow these now successful standalone programs to continue to grow under parent entities with more closely aligned objectives. This is something we expect to provide substantial advantages to all of the parties involved.

We also take our corporate social responsibilities seriously and continued our support of successful community programs including Eveleigh Market and the Koori Job Ready Aboriginal employment program. These are now established and successful programs with their strong recognition locally and in the wider Sydney region. We were also able to support a number of local community events and charities. In a very competitive environment the Conference Centre continued to perform well. Boosted by a very strong second half performance our revenue from events increased by $216,000 compared to last year. We also hosted a number of major events at the Park including; Salvation Army Christmas lunch, the Steadfast Annual Convention Gala Dinner, VM Ware Partner Exchange Conference and the World Congress on Families for 2013, and the CafĂŠ Biz exhibition. In 2012/13 our capital investment program was over $4 million. This included a major improvement to the Locomotive Workshops and resulted in further uplift in the presentation of the Park. This will have a very positive impact on the amenity now and into the future.

Once again we would like to extend our appreciation to our staff, our commercial tenants and our conference centre customers for their commitment and ongoing support of ATP.

Dr Colin Gellatly AO Chairman ATPSL

Sean O’Toole Managing Director ATPSL


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AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

THROUGHOUT THE YEAR WE FOCUSED ON SUSTAINABILITY, ONE OF OUR KEY VALUES. THIS IS REFLECTED IN OUR NOMINATION FOR A GREEN GLOBE HERITAGE AWARD IN 2013.


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CORPORATE GOVERNANCE

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

-Australian Technology Park Sydney Ltd (ATPSL) is a not-for-profit company and wholly-owned subsidiary of the New South Wales Government’s UrbanGrowth NSW Development Corporation (UGDC). It is a company limited by guarantee and is responsible for the day-to-day management of the ATP in accordance with its charter and constitution. The ATPSL Board of Directors is responsible for corporate governance including setting the strategic direction, establishing goals for management and monitoring the achievement of these goals. The Board meets bi-monthly with the senior management team.

Financial Reporting and Internal Controls ATPSLs auditing activities are overseen by an Audit & Risk Management Committee. This Committee assesses the integrity of business operations and the adequacy and appropriateness of internal policies, controls and processes. The Audit & Risk Management Committee acts independently and is responsible for:

----

---

reviewing financial reports and accounting practices overseeing the internal and external audit programs reviewing the implementation of audit recommendations and actions reviewing investigations into any breaches of conduct and professional ethics identifying and monitoring major risks and risk management strategies providing assurance to the Board that controls, policies and audits are functioning effectively.

Business Plan The ATPSL Business Plan establishes financial performance targets for each business unit. ATPSLs result for 2012-13 is a profit of $8.607 million against a budgeted profit of $4.844 million. The investment property balance at year ended 30 June 2013 is $72.143 million, reflecting a net increase of $2.856 million from 2012. ATPSL has continued to grow. Consistent consolidation and restructuring within the organisation continues to deliver significant profits and positive cash flows.


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The ATP staff Code of Conduct and policies are in accordance with the principles of ethical decision-making. A copy of the Code of Conduct is provided to new employees. It enforces the key values of integrity, diligence, value for money and accountability which are expected from all staff, consultants and contractors. Our polices and practices seek a ‘beyond compliance’ outcome that is performance-driven.

Chair - Dr Col Gellatly

Mr Michael Collins

Mr Richard Johnson MBE

Ms Lucy Turnbull

Mr John Mulally

Mr Sean O’Toole*

Work Health and Safety ATPSL upholds the highest standards of work health and safety to ensure the wellbeing of staff and those we do business with including our tenants, visitors, suppliers and contractors. Our operations are managed in accordance with a Work Health Safety and Environmental Plan which is audited twice a year and monitored bi-monthly by the Board. A work health and safety consultative team that meets monthly and we continue to develop systems and improvements that will improve safety of our staff and visitors.

ATPSL BOARD DIRECTORS

Values

Procurement The company implements a Procurement Policy to ensure work and services are appointed in respect of the principles and guidelines required by NSW Government. The key principles underpinning the Procurement Policy are: -----

Value for money Efficiency and effectiveness Probity and equity Effective competition.

Privacy Management Policy

The General Manager is the company’s Privacy Officer and the person to be contacted on all privacy matters. The complete Privacy Management Policy is available to key stakeholders and the public.

Mr Roy Wakelin-King**

*Managing Director since 1 January 2013 **Managing Director to 31 December 2012

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

A Privacy Management Policy applies to our operations and meets the requirements of the Privacy and Personal Information Protection Act 1998. In the course of our activities we must collect and maintain a limited amount of personal information on our clients, tenants and service providers. All staff are required to familiarise themselves with the Policy and apply it to their own work practices.


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THE VISION FOR A TECHNOLOGY PRECINCT LEADING THE WAY IN INNOVATION, SUSTAINABILITY AND COMMUNITY THAT EMBRACES THE HERITAGE SETTING IS PART OF OUR CORPORATE BRAND. THIS HELPS US BALANCE OUR COMMERCIAL OBJECTIVES WITH THE DEMANDS OF WORKING WITHIN A WIDER, ESTABLISHED COMMUNITY. SOME OF OUR RESULTS IN THESE AREAS OVER THE PAST YEAR ARE PRESENTED BELOW. Smart Services CRC For Warren Bradey, CEO of Smart Services Cooperative Research Centre (CRC), the fit between his organisation and the Australian Technology Park couldn’t be closer. Smart Services CRC is a user-inspired research and development partnership where industry and academic partners collaborate on innovations in the services sector. With a focus on the high growth areas of media, finance and government, the CRC develops digital, education and training products in short timeframes. The CRC’s services innovation foundry provides a space for software engineers to fast track interesting research and product ideas.

INNOVATION

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

“By and large, what we do is develop new ideas from exciting new research and transfer them to partners to commercialise or to spin-off companies such as award-winning businesses like TableTop and iSee. We incubate them here and then move them out once they grow,” said Bradey. Smart Services CRC has been located in the Park since 2001 when it was part of the previous Smart Internet Technology CRC. The organisation has its head office in Bay 8 and a lab environment located immediately above its main office. “One of the big advantages of ATP is the fact that since the beginning it has attracted early start businesses. This has created an environment where ideas and opportunities are happening and many businesses are in the growth phase,” he said. “It brings like-minded people together, which is great for sharing ideas. For us, there are other companies in the technology space. We share the same problems and come up with solutions together,” he said. Having been at the park for many years, Bradey said the culture and facilities at Australian Technology Park are good fit for small companies just starting out. “I think the Park provides a really great opportunity for small start-ups. They don’t have to take a large space, but they can be close to other companies in a similar growth phase. It’s a lot easier to collaborate with those with a similar mindset and who are facing the same problems.”


AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

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“ BEING BASED AT AUSTRALIAN TECHNOLOGY PARK HAS PROVIDED ACCESS TO A VARIETY OF STAKEHOLDERS IN THE ENTREPRENEURIAL INNOVATION ECOSYSTEM” Professor John Parker, CEO Saluda Medical

Saluda Medical Saluda Medical is one of five NICTA start-up companies to spinout of the Australian Technology Park. Established as an Implant Systems Research Group of NICTA in 2008, Saluda Medical is developing a medical implant to treat chronic back pain through spinal cord stimulation. The company received its first $5 million in private investment in February 2013 and is continuing research and development to bring the unique product to market. Saluda’s device – the Implanted Neural Sensing and Stimulation (INS2) product – stimulates and senses nerve response. Using electrodes placed along the spinal cord, the implant relieves chronic back pain by blocking pain signals to the brain. The stimulation from the electrodes also creates an associated sensation called paraethesia (tingling sensation), which can be controlled by the stimulation. Unlike other pain management devices, Saluda’s small implant measures nerve response and delivers the correct stimulation level. For Saluda Medical’s CEO, Professor John Parker, after many years of early research, 2013 has been an exciting year of growth. The opportunity to work close by other growing start-ups at Australian Technology Park and at NICTA has been beneficial in many ways.

“More broadly, NICTA also values the proximity to the entrepreneurial culture embodied by the tech startups, CRCs and innovators at the Park,” he said. The Saluda Medical premises at the Australian Technology Park comprise an office environment for the ICT research as well as a wet laboratory for testing the technologies developed.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

“Being based at Australian Technology Park has provided access to a variety of stakeholders in the entrepreneurial innovation ecosystem. Our team is comprised of a multi-disciplinary group of research and business professionals from the bio-medical, computer science and engineering fields, which is also reflective of the cross-section of talent available at the Park across a variety of bio-medical start-ups,” Professor Parker said.


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ATPSL IS SERIOUS ABOUT SUSTAINABILITY. WE EMPLOY A RANGE OF INITIATIVES TO REDUCE THE IMPACT OF THE PARK’S ACTIVITY ON THE ENVIRONMENT AND LOCAL COMMUNITY. Our Sustainability Strategy was prepared in consultation with the NSW Office of Environment & Heritage and is being implemented with the support of our staff, tenants and other stakeholders. Our sustainability goals are to

SUSTAINABILITY

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

1. Establish an ongoing sustainability commitment through our vision and actions 2. Gather baseline reporting data on utilities, waste, consumables and buildings 3. Establish and meet corporate sustainability targets 4. Prevent environmental harm 5. Achieve international environmental best practice 6. Obtain engagement from our staff, tenants, clients and contractors.

2013 Achievements Locomotive Workshop The Locomotive Workshop Building was adapted for re-use as office accommodation and a conference centre in the mid 1990s. The building is over 130 years old, and by today’s standards would have been demolished and replaced twice in that period. By retaining its original form and making it more energy efficient rather than replacing it, we have minimised significant adverse energy and construction impacts on the environment. Through its ‘embodied energy’, the Locomotive Workshop Building is testament to the principle that ‘the greenest building is one that already exists’. National Australian Built Environment Rating System (NABERS) star ratings for the Locomotive Workshop Building improved from -½ star in 2010 to 3½ stars in 2012. This has been achieved by optimising delivery of mechanical services only when they are needed and, to a lesser extent, through the purchase of green power. Fundamental to our strategy is the principle for supply of utilities that ‘there is nothing more efficient than off’. Sustainability projects comprise an important part of our capital works program and will help us reach our NABERS target for the Locomotive Workshop of 4½ stars.

Biomedical Building The Biomedical building improved from a -1½ stars NABERS rating in 2010 to 3 stars in 2012, while the NICTA building has been lifted from 4½ to 5½ stars. Resource efficiency initiatives are ongoing in each of these buildings. Simple initiatives such as ensuring tenancies’ doors remain closed, using proximity sensors to control meeting room lights, and installing waterless urinals have made a measurable impact on the building’s resource efficiency performance. During the year, we introduced a ‘utilities management dashboard’ that gives real-time visibility of energy consumption in specific zones and has enabled us to identify inefficiencies and address them on a daily basis.

Sustainability and Innovation Committee Our Sustainability and Innovation Committee provides a forum to engage with tenants on sustainability initiatives. In August 2012 we introduced a ‘free’ quarterly e-Waste collection service. This service has collected over two tonnes of redundant electronic equipment which has been diverted from landfill to charity, or to more responsible recycling programs. The committee is also a forum for sharing experiences and stimulating new initiatives, like the introduction of car sharing vehicles to ATP. Our car share initiative means that with access to shared vehicles employees have convenient access to a car during the day if required, even if they decide to walk, cycle or commute to work using public transport

Carbon Neutral Events Through our event marketing team, we encourage clients using the conference facilities to host carbon neutral events. We offer a simple certified mechanism that operates through ‘Climate Friendly’ (www. climatefriendly.com). This allows event clients to offset the carbon emissions created by their events by investing in accredited global carbon reduction projects.


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OUR SUSTAINABILITY TARGETS / PERFORMANCE 2011/12 Target Reduction 15%

30%

34%

2019/20 Target Reduction 15%

30%

ELECTRICITY

54%

GAS

Reduction achieved by 2012/13 (Comparison with 2009/10 base year) 15%

25%

24%

30%

50%

35%

WASTE TO LANDFILL

WATER

85%

95%

98%

RECYCLED PAPER USE

AVERAGE TRAVEL TO/FROM WORK

NICTA

LOCOMOTIVE

2010

2010

Research undertaken by Roy Morgan Research in January 2013 yielded the following comparison between ATP and the Australian average* for mode of travel to/from work:

2011

2011

2012

2012

2012*

2012*

BIOMED

IBC

2010

2012

2011

2012*

2012 2012* *With green power

*Australian Bureau of Statistics Census 2011 Australian Average

By car or motorcycle

79%

National Average

34% Australian Technology Park

By walking or bicycle

8.9% National 66% Australian Average Technology Park

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

NABERS STAR RATINGS


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COMMUNITY

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

ATP VALUES ITS ROLE WITHIN THE LOCAL COMMUNITY AND SEEKS TO BE INVOLVED IN A NUMBER OF WAYS. IN ADDITION TO OUR MANAGEMENT OF EVELEIGH MARKET AND KOORI JOB READY PROGRAMS OUR COMMUNITY INVOLVEMENT HIGHLIGHTS FROM 2012-2013 INCLUDE:

Roll Up Redfern

Souths Cares

In 2013 we continued our support of the Redfern community by joining the Roll Up Redfern group. This initiative aims to continue the revitalisation of Redfern, Waterloo, Darlington and Eveleigh through community projects and branding initiatives. ATP embraced the group’s branding by installing banners throughout the Park, and promoting the campaign through social media channels and our partnerships with a number of Redfern ambassadors.

Since 2009 ATP has been a proud sponsor of Souths Cares, the charity arm of the South Sydney Rabbitohs. Souths Cares supports and encourages youth to achieve their goals through education, training and employment. This important initiative is aligned with our focus on social responsibility and our commitment to the local and wider Sydney community. In 2012-2013 ATP and Souths Cares collaborated on several projects including:

Social media ATPSL has a social media management strategy. It is focused on building a positive online presence and the objectives of the strategy are to support innovation and community initiatives, and to connect with tenants, partners and the general public. We communicate across many social media platforms including online forums, social networking, micro blogging, wikis, photographs and videos. We have hundreds of followers across these different platforms.

- The ATP Redfern Harmony 9s Rugby League Tournament - Return to Redfern South Sydney Rabbitohs match at Redfern Oval - Souths Cares Teachers’ Aide Program for local schools - Souths Cares Healthy and Active Lifestyle program - Indigenous Leadership Schools to Work Transition program “Nanga Mai Marri” (Dream Big)


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SOUTHS CARES SUPPORTS AND ENCOURAGES YOUTH TO ACHIEVE THEIR GOALS THROUGH EDUCATION, TRAINING AND EMPLOYMENT. AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


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ATP IS A SITE OF CULTURAL HERITAGE FOR SYDNEY AND NSW. THE HISTORIC EVELEIGH RAILWAY YARDS WAS ONCE AUSTRALIA’S LARGEST INDUSTRIAL COMPLEX. We are committed to our responsibility of preserving the history of the Park and its many heritage-listed assets. We do this by employing practices that reduce environmental impact and promote the rich history of the site. The site is heritage listed and includes three showcase heritage buildings: the Locomotive Workshops, the National Innovation Centre (former Engine Shop) and the International Business Centre (former Works Manager’s Office). There is also a large collection of historic industrial machinery from the era of steam locomotion.

HERITAGE

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

In preserving these historic assets, we work closely with specialist heritage consultants and enthusiasts to ensure appropriate measures are taken to care for and promote the heritage of the precinct. Central to this priority are the Heritage Asset Management Strategy and Draft Conservation Management Plan.

Heritage Asset Management Strategy (HAMS) A Heritage Asset Management Strategy was compiled in October 2008 to comply with the requirements of the State Agency Heritage Guide, issued under Section 170A of the NSW Heritage Act 1977. At the same time, a Heritage and Conservation Section 170 Register was prepared. The HAMS and the Sector 170 Register were updated in 2010 and again during 2012-2013. The HAMS sets out a range of ongoing heritage management responsibilities as well as the specific projects that are required to enhance heritage values and ensure they are managed well over time.

Conservation Management Plan (CMP) A draft Conservation Management Plan has been prepared for the ATP site in accordance with the NSW Heritage Office guidelines and the principles of the Burra Charter. A public information session was held in June and the draft CMP was exhibited in June and July 2012. Feedback from consultation is being incorporated into the plan which is expected to be completed for formal approval of the Heritage Council in 2013/14.

Heritage Volunteer Workforce Our work on heritage is supported by a team of dedicated and passionate heritage volunteers. In 2012-2013 our volunteers continued their outstanding work to detail, record and manage heritage assets in the Locomotive Workshop and Biomedical Buildings. Notable achievements this year include works in the Pump House (pictured), and our update of the Section 170 Register of heritage assets. Our volunteers also ran a series of heritage interpretation sessions for visitors during the year, which highlight the link between the site’s industrial past and today’s technology-based use. The work of our volunteers is highly valued and ongoing and we look forward to more years of valuable contribution.


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AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

OUR WORK ON HERITAGE IS SUPPORTED BY A TEAM OF DEDICATED AND PASSIONATE HERITAGE VOLUNTEERS. THE WORK OF OUR VOLUNTEERS IS HIGHLY VALUED AND ONGOING AND WE LOOK FORWARD TO MORE YEARS OF VALUABLE CONTRIBUTION.


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ATPSL Management Structure EXECUTIVE MANAGEMENT

PROPERTY SERVICES

FINANCE & CORPORATE SERVICES

CONFERENCE & EXHIBITION CENTRE

EVELEIGH MARKET

KOORI JOB READY

Key Business Objectives

People & Business

- - - -

- Communicate effectively and consistently - Maintain strong leadership, recruitment and retention - Support a safe and health workplace - Ensure a strong corporate governance - Promote and facilitate environmental awareness - Encourage business growth and improvement

Customers & Stakeholders Invest in Company’s objectives Provide high quality service Effectively communicate with stakeholders - Liaise with the community

Financial - - - - -

Consolidate financial profitability Increase revenue returns Implement savings initiatives Examine capital investment options Improve asset utilisation

ATPSL Year to Year Comparison

OPERATIONS

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

30,000

25,000

Total Revenue

20,000

Property Revenue Conference Centre Revenue

15,000

Operating Costs Employee Related Expenses

10,000

Cost of Sales 5,000

Profit before Non Operating costs Capital Spend

0 2009

2010

2011

2012

2013

Key Notes 1. Profit before non-operating costs for 2012-13 was $8.9 million up from $5.4 million in 2011/12 and the best result since 2009/10. 2. Both the Property Services and Conference Centre business units experienced strong revenue growth of 9% and 4% respectively contributing to overall revenue growth of 8%. 3. The Koori Job Ready and Eveleigh Markets programs returned a materially better result than last year improving their net operating results by in excess of $200,000 and just less than $100,000 respectively.

4. During the year the net cash position (cash less borrowings) moved to $2.3 million positive, the first net positive position since the construction of the NICTA building during the 2006/2007 financial year. 5. In excess of $4 million dollars was invested in property plant and equipment additions. 6. A $5 million dollar debt pay down was made which reflects the strong cash flows generated during the year. A further $5 million dollar repayment is scheduled for the 2013/14 year.


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Executive Management Team Sean O’Toole Managing Director since January 2013 Chris Saunders General Manager Ruby Chronis Director, Sales & Marketing Graham Stevens Director, Property Services Roula Zivlas Director of Finance and Corporate Services Ariana Aljinovic Executive Manager – Eveleigh Market Andrew Constantinidis Program Manager – Koori Job Ready The Executives are responsible for: - The day to day management of ATPSL - Encouraging innovative technology - Ensuring continued development of the built environment - Preserving and enhancing the Park’s heritage status. The responsibilities of the Executives are carried out in accordance with the following objectives:

2012-2013 Highlights

The Property Services team responsibilities include:

In 2012-2013 gross revenue from Property Services exceeded budget by $500K and reached over $17 million. By April 2013, there were no vacancies, and monthly arrears are now negligible.

- achieving commercial rentals on all tenancies; - minimising vacancies; - maximising net income; - ensuring compliance with all relevant legislation; - ensuring all physical assets are properly maintained; - arranging necessary upgrades and refurbishments; and - ensuring maximum capital value of the property assets.

A new Property Management System was implemented to improve efficiencies in managing assets, property and tenants. Additionally, a web-based contractor induction system was implemented for work health and safety. Contractors working onsite access the online system to complete a safety induction about the Park. In 2012-2013 the following projects were completed as part of our capital works program: - external wayfinding signage, including interactive signs and media screens - paved walkways on Locomotive Street and Central Avenue - replacement of roof skylights in the Locomotive Workshop - second stage of the Locomotive Workshop heritage façade - upgrade to washrooms in Bay 4 Locomotive Workshop - installation of lighting sensors in common areas of the Locomotive Workshop - replanting of Locomotive Street gardens - refurbishment of heritage accumulators in Locomotive Street - second stage upgrade of the amenities in the IBC building - the establishement of a Disaster Recovery Room in the IBC Building.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

- To revitalise surplus government land through the creation of a dynamic innovation and technology precinct. - To capitalise on the economic and cultural potential of the Park as a place for the growing population of Sydney to visit and work. - To balance the economic return, vibrancy and diversity of the Redfern and Waterloo communities. - As custodians, to promote a sense of community ownership through preservation and interpretation of the natural, built and heritage significance of the site.

PROPERTY SERVICES


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CONFERENCE AND EVENTS CENTRE The Conference and Exhibition Centre at ATP is one of Sydney’s most unique event venues, combining rich cultural heritage with innovation and state-of-the-art facilities. The Centre’s reputation is built on hosting hi-tech corporate, government, public and private events with an industrial heritage edge. The professional conferencing team strives for excellence in turning ordinary to extraordinary.

Outstanding events of 2012-2013

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Salvation Army Christmas Day (December 2013) The festive spirit was shining in the Exhibition Hall on Christmas Day as ATP hosted and sponsored the annual Salvation Army Christmas Lunch. Over four hours, guests were served traditional Christmas fare of ham, turkey, roast vegetables and pudding, all provided by businesses and the general public. Donated hampers filled with festive goodies were also handed out. A special kids corner kept the little ones entertained for the day with face painting, a BBQ, photo booth and Wii games. Santa also made a special appearance after lunch and gave presents to all the kids. The Salvation Army hosts Christmas lunches all around the country

every year, hundreds of volunteers drop in to lend a helping hand and spend their day with people who would otherwise be alone. VMWare Partner Exchange Conference 2013 (May 2013) More than 500 people attended the VMware Partner Exchange annual conference. This event takes place every year in different regions all around the world giving VMware partners and associates a glimpse on next-generation VMware products and programs VMware Partner Exchange is the annual global partner conference dedicated to enabling partners for success in selling and deploying VMware solutions, products and services. The IT component on the park was critical in supporting this event which was a huge success. World Congress of Families 2013 (May 2013) The World Congress of Families event is a time of intense teaching, learning, networking and exchange as those who seek to strengthen and promote the natural family tackle some of the most complex issues affecting family life today. Sydney’s bid to host WCF VII was supported by more than 80 organisations and businesses in Australia and New Zealand. The Local Organising Committee comprises representatives of many of these organisations,

working collaboratively to advance the cause of the natural family. WCF VII Sydney 2013 was a challenging program bringing together many of the world’s leading pro-family advocates, policy makers and academics, business leaders and professionals, educators and students, media and popular culture figures and many parents - Inspiring people from all walks of life to consider and implement strategies to help strengthen the natural family, the economy and civil society. Steadfast 15th Annual Convention Gala Dinners (April 2013) Held over two nights with 1,400 people each evening, the Steadfast Group’s annual gala dinner for its network of insurance brokers across Australia and New Zealand was one of our biggest events of the year. Oztek (March 2013) This public event is a major international expo that, since its inception in 1999, has done more to highlight the adventure and excitement inherent in diving than any other show. Hundreds of people attend every 2 years which has become a major diving expo in Sydney.


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EVELEIGH MARKET ATP continued to support and manage the weekly Eveleigh Farmers’ Market and monthly Artisans’ Market from its location at the Blacksmith’s Workshop in Wilson Street. Both markets are well supported by the local community and attract over 70 stallholders on average. Over the year, the Farmers’ market had an average weekly attendance of over 3,000 people, while the Artisans’ market attracted over 1,500 each month demonstrating that these events are supported by the local community.

Highlights In December 2012 Christmas Banner Competition received eleven entrants with Darlinghurst Primary School winning the top prize. Darlington Primary School won the People’s Choice Award and Life for Koori Kids was Runner’s Up. In March 2013, we celebrated the fourth birthday of the Eveleigh Farmers’ Market with special celebrations including a canine competition, kiddie’s farm and face painting.

THE CONFERENCE AND EXHIBITION CENTRE AT ATP IS ONE OF SYDNEY’S MOST UNIQUE EVENT VENUES, COMBINING RICH CULTURAL HERITAGE WITH INNOVATION AND STATE-OF-THEART FACILITIES

KOORI JOB READY Since July 2011, ATP has managed Koori Job Ready, a leading Aboriginal recruitment, training and job placement program servicing the construction and hospitality industries. Koori Job Ready was originally an initiative of the former RedfernWaterloo Authority (now disbanded), but it now sits under the ATPSL umbrella. Our support of Koori Job Ready is part of our strong commitment to community development, both locally and Sydneywide. Koori Job Ready provides benefits for both the Aboriginal community and the construction and catering industries, as graduates are equipped with the immediate skills they need to work.

Eveleigh Market once again hosted ‘Awesome Clay’. This special event featured ten ceramicists from the Australian Ceramics Association performing demonstrations and showcasing their wares. In 2013 the Eveleigh Market program achieved a close to break-even result representing with revenue 6% higher than budget.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

In 2013 the Koori Job Ready program achieved a profit of close to $100,000 a significant improvement on the 2012 result which was loss. Revenue and profit continue to trend upwards.

In June 2013, the Eveleigh Market hosted the first ‘Eveleigh Uncorked’ event. This wine and cheese fair attracted over 4,500 visitors and received media coverage in The Shout, Broadsheet, Daily Telegraph, Master Chef and Good Food Magazine.


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THE DIRECTORS OF ATPSL (“THE COMPANY”) PRESENT THEIR REPORT TOGETHER WITH THE FINANCIAL REPORT OF THE COMPANY FOR THE YEAR ENDED 30 JUNE 2013 AND THE AUDITOR’S REPORT THEREON.

Directors The Directors of the Company at any time during or since the end of the financial year are:

Dr Colin Gellatly AO Chairman

DIRECTORS REPORT

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

B Ag Ec 9 (Hons) UNE, M Comm (Hons) UNSW, Ph D NC State, FIPAA Dr Col Gellatly AO was Chairperson of the Redfern-Waterloo Authority, as of 1 July 2007. Dr Gellatly AO is the former DirectorGeneral of the Premier’s Department, a role which he held since being appointed in 1994. He has held a number of senior management positions within the NSW public service, including as Director General of the Department of Land and Water Conservation. Over the past 3 years he has been Chair of Pillar Corporation, a member of the Board of State Water Corporation, a member of the UNE Council, member of Board of the NSW Rugby League. Dr Gellatly AO has a degree in Agricultural Economics from the University of New England, a Master of Commerce from the University of NSW and a PhD from North Carolina state University.

Sean O’Toole Managing Director from 1 January 2013 Dip T&CP, Dip Env Studies, FAICD, FRAPI Mr O’Toole has been the Managing Director of ATPSL since January 2013. Mr O’Toole is also the Chief Executive of UrbanGrowth NSW (formerly Landcom), a role he has held since 1996. Prior to joining UrbanGrowth NSW he held senior positions in urban planning at both state and local government levels. He is a member of the Australian Property Institute, a Fellow of the Australian Institute of Company Directors, and has qualifications in real estate valuation, town planning and environmental management.

Roy Wakelin-King AM Managing Director to 31 December 2012 BPS (UNE) GDP Bus (UTS) Roy Wakelin-King AM was Managing Director and Company Secretary of ATPSL between 16th February 2009 and 31 December 2012. Prior to this, Roy was the Deputy Director General of the Office of Public Works & Services with the NSW Department of Commerce. Roy was also CEO of the World Youth Day Coordination Authority which coordinated the delivery of Government services for the highly successful World Youth Day 2008. Roy has been an Executive Director within the NSW Ministry of Transport in the position of Director-Transport Operations Division. This role involved the leadership and management of a multi-discipline division that coordinated the delivery of essential public transport services to the public of NSW. Roy has extensive experience in both operations and project leadership, particularly in the fields of transport and logistics. His experience includes a short Army career as a commissioned officer followed by a series of senior project and operational appointments within the NSW Government.

Mr Michael Collins FRICS Mike Collins is a Sydney property practitioner and runs his own property advisory company. He has been involved in property economics, real estate valuation, property consultancy and asset management for over 40 years, and is professionally qualified in property economics and valuation. Mike has served on numerous NSW Government boards and is a former chairman of the Barangaroo Delivery Authority, Sydney Harbour Foreshore Authority, NSW Heritage Council and the NSW Land and Housing Supply Task Force. He is also a former National and NSW President of the Australian Property Institute.

Mr John Mulally BA LLB (Hons) John has 40 years experience as a lawyer specialising in major property and infrastructure projects. He has acted for major Australian and off-shore developers and investors, Australian and State Government instrumentalities and off-shore Governments. This has included the acquisition, development and sale of major projects in all capital cities of


23

Australia as well as in Vanuatu, Jakarta, Bangkok, Singapore, Tokyo, London, Paris, St Petersburg, Kiev, Moscow and New York. He has also advised on major energy projects in Australia and off-shore. He is currently advising on major infrastructure and renewable energy projects in China and Africa. His role in these projects deals with the funding structure, legal requirements and the integration of the commercial with the legal outcomes required to achieve project development.

Mr Richard Johnson MBE M Phil (UCL) B.Arch Hons 1 (UNSW) FRAIA Richard Johnson is an award winning architect and a director of Johnson Pilton Walker Architects. He was awarded the 2008 RAIA Gold Medal for his exceptional body of work and his contribution to the profession. He is a Professor in the Faculty of the Built Environment at UNSW, A Fellow of the Australian Institute of Architects and a member of the Design Institute of Australia. He advises the Sydney Opera House Trust on the future of the building and is a member of the City of Sydney Design Advisory Panel. He serves on the Boards of the RWA, the ATP and the Australian Architects Association. Mr Johnson holds a Bachelor of Architecture from UNSW and a Masters of Philosophy (Town Planning) from University College London. In 1976 he was made a member of the Order of the British Empire for services to Architecture.

Ms Lucy Hughes Turnbull AO LLB (Sydney), MBA (UNSW)

THE NET SURPLUS FROM ORDINARY ACTIVITIES FOR THE YEAR AMOUNTED TO $8.607M. THIS IS AN INCREASE OF $3.267M COMPARED TO PRIOR YEAR (2012: $5.340M).

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Lucy Turnbull AO is an urbanist, businesswoman and philanthropist with longstanding interest in cities, and technological and social innovation. She chairs the Committee for Sydney and is Chairman of Prima BioMed Limited, an ASX- listed biomedical company undertaking clinical development for an immuno-therapeutic cancer treatment. She is a director of Sealink Travel Group Limited. She was the first female Lord Mayor of the City of Sydney from 2003-4. In 2011 she became an Officer of the Order of Australia for distinguished service to the community, local government and business. In 2012 she was awarded an honorary Doctorate of Business by the University of NSW.


24

Company Secretary

Company Particulars

Conference and exhibition centre

The Company Secretary up until 31 December 2012 was Mr Roy WakelinKing. On 1 January 2013 Mr Chris Saunders, General Manager of ATPSL was appointed Company Secretary.

ATPSL is a public not-for-profit company limited by Guarantee and incorporated in Australia. The address of the registered office is:

Conference Centre revenue increased by $216k during the current year as compared to 2011/12. This increase is welcome, but reflects the current competitive events market. The strong performance in the second half of the year targeted major local and national events, which included trade shows, multi-day conferences, special events, gala dinners, launches entertainment and media events. In the year ending 30 June 2013 the centre hosted a number of major events during the year including Salvation Army Christmas Day, Steadfast 15th annual convention gala dinner, VM Ware Partner Exchange Conference, World Congress of Families 2013 and Café Biz.

Mr Christopher Saunders BSc (UNSW), Master of Commerce (UNSW) Christopher Saunders is General Manager of ATPSL and was appointed Company Secretary from 1 January 2013. He has been General Manager of ATPSL since 2008 and prior to that was Executive Manager Human Resources at the City of Sydney Council. Chris has considerable experience in human resources, property management and senior executive positions.

Meeting of Directors The number of meetings of the Company’s Board of Directors during the year ending 30 June 2013 and the number of meetings attended by each Director is set out below. Board Meetings Director

Attended Held

Dr Colin Gellatly AO

5

0

Ms Lucy Turnbull AO

4

5

Mr Mike Collins

5

5

Mr John Mulally

4

5

Mr Richard Johnson MBE

5

5

Mr Roy Wakelin-King AM*

3

3

Mr Sean O’Toole**

2

2

*(to 31 December 2012) **(from 1 January 2013)

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

The Company’s Audit and Risk Management Committee (ARMC) is conducted in accordance with the NSW Government Treasury Policy Paper 09/05. The number of ARMC meetings held and attended by members last year is set out below. ARMC Meetings Committee Member

Attended Held

Ms Bonnie Boezman, AO

4

4

Ms Victoria Weeks

4

4

Australian Technology Park Sydney Limited Suite 3220 Locomotive Workshop 2 Locomotive Street Eveleigh NSW 2015

Principal Activity The Company operates a 13.5 hectare technology park on the site of the heritage listed Eveleigh Railway workshops. The principal activity during the financial year was to manage the operations of ATPSL in accordance with its Constitution. This includes promoting innovation through the management of leases to technology and scientific research organisations and related businesses; the provision of convention and exhibition facilities; and the maintenance and capital investment in the park and its services and infrastructure. The company also manages Eveleigh Market and an Aboriginal employment program, known as Koori Job Ready which are local social and community initiatives. These activities contribute to the objects set out in the ATPSL Constitution.

Objectives The long term objectives of the Company are set out in its Constitution and relate to the maintenance and operation of a science and technology park that links businesses and encourages innovation, education and training. This is primarily achieved in the short term through the leasing of space to businesses in accordance with a defined set of entry criteria, and managing and operating a conference centre within the Park.

Property management and development Over the last year, the property services team has reduced outgoings and increased revenue from rentals. Today the tenancy mix is a good balance between large, medium and small information technology and scientific research tenants as well as blue chip and start-up businesses. New firms continue to make a positive contribution towards a vibrant innovative and technology based community. The leasing market for the ATPSL has steadily improved and occupancy rates reached 100% from April 2013.

Social and community programs Eveleigh Market comprise the Eveleigh Farmers’ Market is held every Saturday and is complemented by an Artisans’ Market which is held on the first Sunday of each month. Koori Job Ready is the Company’s Aboriginal employment program and is now well established in Redfern. The program delivers co-ordinated recruitment, training and mentoring programs for Aboriginal and Torres Strait Islander people. This year efforts have focussed on improving the retention rates of trainees, placing them in construction and hospitality jobs and building stronger brand recognition.

Review and Result of Operations The key financial indicators of performance used by the company are summarised below. The net surplus from ordinary activities for the year amounted to $8.607m. This is an increase of $3.267m compared to prior year (2012: $5.340m). The Investment Property balance at year ended 30 June 2013 is $72.143m. A nett increase of $2.856m from 2012). Property, plant and equipment increased from $53.077m in 2012 to $59.188m in 2013 (a nett increase of $6.111m). The Company has a positive cash balance of $27.3m at 30 June 2013. Over the year capital works expenditure of $4.091m included works to the Locomotive Workshop façade, Locomotive Workshop skylights, paved walkways in the grounds and refurbishment of the heritage accumulators outside the Locomotive Workshop. These works add to site amenity and improve the campus environment.


25

Debt Position

Likely Developments

There is a loan agreement between the Company and UGDC (parent). At 30 June 2013 the loan balance is $25.006m, this is down from $29.996m in June 2012. A repayment of $5m was made in December 2012 in accordance with Board approved debt reduction strategy and a future $5m will be repaid in 2013/14.

In 2013/14 the Company will explore opportunities to develop the vacant development sites in the Park. It will also undertake a strategic review of the conference and events business to ensure it is prepared for the significant change to the events industry that will be experienced during and after the Sydney Exhibition Centre refurbishment. The focus will be on ensuring the park continues to satisfy its Constitutional objectives and manages these in light of NSW Government priorities.

Dividends The Company is a not for profit entity limited by guarantee in accordance with its Constitution. To this end it does not pay dividends and all surplus funds are reinvested in the Company.

Liability of Members In accordance with the Company’s constitution the liability of Members is limited in an amount not exceeding twenty dollars.

State of Affairs In the opinion of the Directors, there were no significant changes in the state of affairs of the Company that occurred during the financial year under review. On 1 January 2013, ATPSL’s sole member, the Sydney Metropolitan Development Authority (SMDA), was renamed UrbanGrowth NSW Development Corporation (UGDC).

Environmental Regulation The Company’s operations are subject to various environmental regulations under both Commonwealth and State legislation, which set the minimum requirements that the Company must meet. ATPSL has established and implemented a comprehensive and detailed comprehensive Environmental Management Plan for the ATP site.

Auditor’s Independence Declaration The auditor’s independence declaration is attached and forms part of the Directors’ Report for the year ended 30 June 2013.

Directors Benefits Since 30 June 2013, no Director has received, or has become entitled to receive a benefit because of a contract that the Director, a firm of which the Director is a member, or any entity in which the Director has a substantial financial interest has made (during the year ended 30 June 2013 or at any other time) with: a) the Company; b) an entity that the contact was made or when the Director received, or became entitled to receive, any benefit (if any)

Indemnification and Insurance of Officers and Auditors During or since the financial year, the Company has not indemnified, or made a relevant agreement for indemnifying, against liability of any present or former officer or auditor of the Company as contemplated by subsections 309A (1) and (2) of the Corporations Act 2001. During the financial year, the Company paid a premium under a contract of Directors and Officers Insurance. Disclosure of the nature of the liability and the amount of the premium is prohibited by the confidentiality clause of the contract of insurance.

Rounding Off The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the Financial Report and Directors’ Report have been rounded to the nearest thousand dollars, unless otherwise stated. This report is made by the in accordance with a resolution of the Directors made pursuant to S295(5) (a) of the Corporations Act 2001. Signed on behalf of the Directors,

Sean O’Toole Managing Director On 23 September 2013

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

The Company monitors compliance with environmental regulations, and the Directors are not aware of any significant breaches during the period covered by this report.

Also this year, the Company began discussions with the National Centre of Indigenous Excellence and Carriageworks to explore the potential transfer of the community programs we have established. This is likely to result in these activities transferring out of the Company in 2013/14.


26

DIRECTORS’ DECLARATION

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

In accordance with a resolution of the Board of Directors of Australian Technology Park Sydney Limited (‘ATPSL’) made pursuant to section 295(5) of the Corporations Act 2001 and section 41 of the Public Finance and Audit Act 1983, we hereby declare that: 1. The financial statements and notes as set out on the pages that follow:

a) comply with Accounting Standards, the Public Finance and Audit Act 1983 and Public Finance and Regulation 2010, the Corporations Act 2001 and other mandatory NSW Treasury accounting policies; and

b) g ive a true and fair view of the Company’s financial position as at 30 June 2013 and of its performance for the year ended on that date.

2. In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Dr Colin Gellatly AO Chairman ATPSL

Sean O’Toole Managing Director ATPSL

Sydney, dated 23 September 2013


27

AUDITOR’S INDEPENDENCE DECLARATION

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

28

INDEPENDENT AUDITOR’S REPORT


29

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


30

STATEMENT OF COMPREHENSIVE INCOME For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

*Restated

note

2013

2012

$’000

$’000

Expenses excluding losses

Operating expenses

Employee related

2(a)

(2,955)

(2,910)

Other operating expenses

2(b)

(12,719)

(14,880)

Depreciation and amortisation

2(c)

(2,831)

(2,243)

Finance costs

2(d)

(2,178)

(3,162)

Total expenses excluding losses

(20,683)

(23,195)

Revenue

Sale of services

3(a)

24,383

21,949

Investment revenue

3(b)

1,079

1,541

Grants

3(c)

600

600

Other revenue

3(d)

372

376

Total revenue

26,434

24,466

3(i)

2,856

4,069

Net result

8,607

5,340

Other comprehensive income

Items that will not be reclassified to net result

14(a)

4,845

1,668

Gain on revaluation of investment property

Net increase in property, plant and equipment revaluation surplus Total other comprehensive income

4,845

1,668

Total comprehensive income

13,452

7,008

* See note 20 for details regarding prior period errors and reclassification.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

The above statement should be read in conjunction with the accompanying notes.


STATEMENT OF FINANCIAL POSITION

31

For the year ended 30 June 2013

Restated

Restated

1 July

note

2013

*2012

*2011

$’000

$’000

$’000

ASSETS

Current assets

Cash and cash equivalents

4

27,358

27,323

29,532

Receivables

5

1,304

651

653

Other financial assets

6

505

470

437

Other - lease incentive asset

10

389

343

538

Total current assets

29,556

28,787

31,160

Non-current assets

Other financial assets

6

2,368

2,873

3,343

Property, plant and equipment

7

- Land and buildings

55,900

49,750

48,225

- Leasehold improvements

-

-

-

- Furniture and fittings

517

658

593

- Plant and equipment

1,891

880

1,175

- Motor vehicles

14

20

26

- Art and artefacts

5

5

5

- Work in progress

861

1,764

199

Total property, plant and equipment

59,188

53,077

50,223

Investment property

8

72,143

69,287

65,218

Intangible assets

9

149

117

66

10

1,406

1,463

1,806

Total non-current assets

135,254

126,817

120,656

Total assets

164,810

155,604

151,816

LIABILITIES

Current liabilities

Payables

11

5,448

5,594

4,242

Borrowings

12

5,505

5,470

437

Provisions

13

286

249

717

Total current liabilities

11,239

11,313

5,396

Non-current liabilities

Borrowings

12

28,669

33,832

43,987

Provisions

13

69

76

55

Other - lease incentive asset

16(b)

17,955

16,957

15,960

Total non-current liabilities

46,693

50,865

60,002

Total liabilities

57,932

62,178

65,398

NET ASSETS

106,878

93,426

86,418

EQUITY

Reserves

14 (a)

6,513

1,668

-

Accumulated funds

14 (b)

100,365

91,758

86,418

106,878

93,426

86,418

TOTAL EQUITY

* See note 20 for details regarding prior period errors and reclassification. The above statement should be read in conjunction with the accompanying notes.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Lease incentive liabilities

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013


32

STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

Attributable to owners of Australian Technology Park Sydney Limited Asset revaluation surplus $’000

 

Total $’000

Balance at 1 July 2012

2,665

103,024

105,689

Correction of prior period errors

(997)

(11,266)

(12,263)

Restated total equity at 1 July 2012

1,668

91,758

93,426

-

8,607

8,607

Net result Other comprehensive income Net increase in property, plant and equipment revaluation surplus

4,845

-

4,845

Total other comprehensive income

4,845

-

4,845

Total comprehensive income

4,845

8,607

13,452

-

-

-

6,513

100,365

106,878

Transactions with owners Balance at 30 June 2013

Balance at 1 July 2011

-

97,923

97,923

Correction of prior period errors

-

(11,505)

(11,505)

Restated total equity at 1 July 2011

-

86,418

86,418

Net result

-

5,340

5,340

Other comprehensive income

1,668

-

1,668

Total other comprehensive income

1,668

-

1,668

Total comprehensive income

1,668

5,340

7,008

Net increase in property, plant and equipment revaluation surplus

Transactions with owners Balance at 30 June 2012 The above statement should be read in conjunction with the accompanying notes.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Accumulated funds $’000

-

-

-

1,668

91,758

93,426


STATEMENT OF CASH FLOWS

33

For the year ended 30 June 2013 note

2013

2012

$’000

$’000

inflow/

inflow/

(outflow)

(outflow)

Cash flows from operating activities

Payments

Employees related

(2,891)

(2,768)

Finance costs

(2,178)

(3,376)

Other

(14,359)

(15,318)

Total payments

(19,428)

(21,462)

Receipts

Sales of services

27,039

25,716

Interest received

1,081

1,540

Grants

600

600

Total receipts

28,720

27,856

Net cash flows from operating activities

15

9,292

6,394

Cash flows from investing activities

Purchases of property, plant and equipment

(4,129)

(3,481)

Net cash flows from investing activities

(4,129)

(3,481)

Cash flows from financing activities

Repayment of borrowings to parent entity

(5,128)

(5,122)

Net cash flows from financing activities

(5,128)

(5,122)

Net increase/(decrease) in cash and cash equivalents

35

(2,209)

Opening cash and cash equivalents

4

27,323

29,532

Closing cash and cash equivalents

4

27,358

27,323

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

The above statement should be read in conjunction with the accompanying notes.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


34

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

1 Summary of significant accounting policies (a) Reporting entity Australian Technology Park Sydney Limited (the Company) is a not for profit Company limited by guarantee which is a wholly owned subsidiary of UrbanGrowth NSW Development Corporation (“UGDC” or the “Authority”) a Statutory Body constituted by the Growth Centres (Development Corporations) Act 1974 on 17 December 2010 to promote the development of land identified as potential urban renewal precincts including Redfern-Waterloo and Granville and other precincts to be identified in the future. The reporting entity is consolidated as part of the NSW Total State Sector Accounts, as per Note 1(a) of the Financial Reporting Code. As of 1 January 2013 the Sydney Metropolitan Development Authority (SMDA) was re-named UrbanGrowth NSW Development Corporation (UGDC).

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

The Company is responsible for the day-to-day management of the Australian Technology Park Sydney Limited (ATPSL) located at Eveleigh in Sydney, NSW in accordance with its constitution. This includes the operations of the Park to establish a technology and scientific research precinct, being property management and development and the provision of convention and exhibition facilities, the Eveleigh Market and the Koori Job Ready Aboriginal Employment Program.

(b) Basis of preparation

(e) Insurance

The Company’s financial statements are general purpose financial statements which have been prepared in accordance with applicable Australian Accounting Standards (which include Australian Accounting Interpretations) and the requirements of the Public Finance and Audit Act 1983, Public Finance and Audit Regulation 2010, Corporations Act 2001 and the Financial Reporting Directions published in the Financial Reporting Code for NSW General Government Sector Entities or issued by the Treasurer.

The Company’s insurance activities are conducted through the NSW Treasury Managed Fund scheme of self insurance for Government entities. The expense (premium) is determined by the Fund Manager based on past claim experience.

The financial statements have been prepared under the historical cost convention and on an accrual accounting basis, except for: --

on-current physical assets n measured at fair value;

--

i nvestment properties measured at fair value

In the application of the Company’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are primarily based on historical experience. All judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the parent entity.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

The financial statements for the year ended 30 June 2013 were authorised for issue by the Board on 23September 2013.

(c) Statement of compliance The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations. (d) Finance costs Finance costs are expensed in the period in which they are incurred in accordance with the Treasurer’s Mandate to not–forprofit general government sector agencies.

(f) Taxes (i) Accounting for the Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except when the GST incurred on a purchase of goods and services is not recoverable from the Australian Taxation Office, is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables are stated with the amount of GST included. Cash flows are included in the statement of cash flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the Australian Taxation Office, are classified as operating cash flows. (ii) Income tax On 16 February 2005, a private ruling was made in favour of the Company, where it was deemed that Section 24AM of Income Tax Assessment Act 1936 applies to exempt the Company’s income from the imposition of income tax. The ruling has been reconfirmed several times since 2005, with a further extension to 30 June 2015 approved by the Australian Taxation Office in a private ruling advice dated 2 March 2010 and 29 June 2011. (g) Revenue recognition Revenue is measured at the fair value of the consideration or contribution received or receivable. Amounts disclosed as revenue are net of allowances, rebates and amounts collected on behalf of third parties. The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company’s activities as described below. Revenue is recognised for the major business activities as follows:


35

(h) Expenditure

Grants are recognised as income when the Company obtains control over the assets comprising appropriations/ contributions. Control over appropriations/ contributions is normally obtained upon the receipt of cash.

All expenses incurred on an accrual basis are recognised as expenditure for the year to the extent that the Company has benefited by receiving goods or services and the expenditure can be reliably measured.

Unspent Grant Income is recognised as liabilities rather than income, as the authority to spend money lapses and the unspent amount must be repaid. The liability is disclosed as ‘Current liabilities - Other’. The amount will be repaid and the liability extinguished next year.

--

(ii) Rendering of services Revenue from a contract to provide services is recognised by reference to the stage of the completion (based on hours incurred to date) of the contract. (iii) Investment revenue Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. Investment income comprises interest income on funds invested with financial institutions. In addition, any changes in fair value of financial assets held with the NSW Treasury Corporation’s Hour-Glass facilities represented by a number of units of a management investment pool at fair value through profit and loss. Rental revenue from operating leases is recognised in accordance with AASB 117 Leases on a straight line basis over the lease term. The lease payments received in advance are recorded as a liability and recognised as revenue over the lease term.

Employee benefits expenses

Employee benefits expenses include salaries and wages for the period, workers compensation insurance premium for the period, 9% defined superannuation contribution incurred for employees under defined contribution scheme. Annual leave and long service leave expenses are charged as stated in Note 13. (i) Assets i) Acquisition of assets The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Company. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable the amount attributed to that asset when initially recognised in accordance with the measurements requirements of other Australian Accounting Standards. Assets acquired at no cost or for nominal consideration are initially recognised at their fair value at the date of acquisition. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arms length transaction.

(iv) Other income

(ii) Capitalisation thresholds

Other income is recognised when the right to receive the income has been established.

Property, plant and equipment and intangible assets costing $5,000 and above, individually or forming part of a network costing more than $5,000, are capitalised.

The remaining capital expenditure is carried forward as construction in progress and included in property, plant and equipment in the statement of financial position.

Physical non-current assets are valued in accordance with the ‘Valuation of Physical Non-Current Assets at Fair Value’ Policy Guideline Paper ((TPP 07-1) as amended by NSWTC 12/05 and NSWTC 10/07). This policy adopts the fair value in accordance with AASB 116 Property, Plant & Equipment and AASB 140 Investment Property. Information on investment property is separately discussed at note 1 (i)(x). Property, plant and equipment are initially recognised at acquisition cost, including any costs directly attributable to the asset and any restoration costs associated with the asset. Cost is the amount of cash and cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction. Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. When revaluing non-current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated. For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements. Revaluation increments are credited directly to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as revenue in the net result. Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of assets, they are debited directly to the asset revaluation surplus.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

When assets are completed and ready for service, the costs are capitalised to the relevant property, plant and equipment account, either directly or from the capital work in progress when relevant.

(iii) R  evaluation of property, plant and equipment

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

(i) Grants


36

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise. Land and buildings are reported at fair value, based on annual fair value assessments prepared by independent, professional real estate valuers. The last independent assessment was conducted on 30 June 2013 by Preston Rowe Paterson NSW Pty Limited (PRP), independent valuers not related to the Company. PRP are members of the Australian Institute of Valuers and they have the appropriate qualifications and recent experience in the valuation of properties in the Redfern-Waterloo area. The valuation, which conforms to Australian Valuation Standards, was arrived at by reference to market evidence of transactions prices for similar properties. Land and buildings, including open spaces and roads, are revalued at least every three years or with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at reporting date.

Depreciation is provided for on a straight line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the Company. All material identifiable components of assets are depreciated separately over their useful lives. Heritage assets that have been improved to provide rental income will be depreciated over 40 years and therefore valued under the income approach. Land is not a depreciable asset. Certain heritage assets including original artworks and collections may not have a limited useful life because appropriate and curatorial and preservation policies are adopted. Such assets are not subject to depreciation. The decision not to recognise depreciation for these assets is reviewed annually. The estimated useful lives for the current and comparative periods are as follows:

Leasehold improvements are included as part of land and buildings and are depreciated over the shorter of the lease term and their useful lives, unless it is reasonably certain that the Company will obtain ownership by the end of the lease term.

--

Furniture and fittings

4-5 years

--

Plant and equipment

3-4 years

--

otor vehicles M 5 years

--

uildings B 40 years

(iv) Impairment of Property, plant and equipment

(vi) Major inspection costs

As a not-for-profit entity AASB 136 Impairment of Assets effectively is not applicable. AASB 136 modifies the recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. This means that, where an asset is already measured at fair value, impairment can only arise if selling costs are material. Selling costs for the entity are regarded as immaterial.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

(v) D  epreciation of property, plant and equipment

Any reversals of impairment losses are reversed through the statement of comprehensive income, where there is objective evidence. However, reversals of impairment losses on an investment in an equity instrument classified as “available for sale� must be made through the reserve. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.

When each major inspection is performed, the labour cost of performing inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are satisfied. (vii) Restoration costs The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability. (viii) Maintenance costs Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated. (ix) Leased assets A distinction is made between finance

leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to the ownership of the leased assets, and operating leases under which the lessor does not transfer substantially all the risks and benefits. Where a non-current asset is acquired by means of a finance lease, at the commencement of the lease term, the asset is recognised at its fair value or, if lower, the present value of the minimum lease payments at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principle component and the interest expense. Operating lease payments are charged to the statement of comprehensive Income in the periods in which they are incurred. (x) Investment properties The Company owns properties held to earn and/or for capital appreciation. Investment properties are stated at fair value supported by market evidence at the statement of financial position date. These valuations are reviewed annually by Preston Rowe Paterson. Gains or losses arising from changes in fair values are included in the net result for the year in the period in which they arise. No depreciation is charged on investment properties. (xi) Intangible assets The Company recognises intangible assets only if it is probable that the future economic benefits will flow to the Company and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition. All research costs are expensed. Development costs are only capitalised when certain criteria are met. These include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility and where the group has an intention and ability to use the asset. IT development and software costs incurred in developing products or systems, and costs incurred in acquiring


37

Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project. Intangible assets are subsequently measured at fair value only if there is an active market. As there is not an active market for the Company’s intangible assets, the assets are carried at cost, less any accumulated amortisation. The Company’s intangible assets are amortised on a straight line method over a period of two and a half years. Intangible assets are tested where an indicator of impairment exists. If the recoverable amount is less than its carrying amount, the carrying amount is reduced to the recoverable amount and the reduction is recognised as an impairment loss. (xii) Cash and cash equivalents Cash and cash equivalents includes cash on hand, short term deposits with original maturities of three months or less, and short term Hourglass facility held with NSW Treasury Corporation (T-Corp). These are readily convertible to cash and classified as cash and cash equivalents. For statement of cash flows presentation purposes, cash and cash equivalents consist of cash and cash equivalents as defined above. (xiii) Loans and receivables

Short term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. (xiv) Impairment of financial assets All financial assets, except those measured at fair value though profit

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 120 days overdue) are considered indicators that the trade receivable is impaired. For financial assets carried at amortised cost, the amount of the impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the net result for the year. Any reversals of impairment losses are reversed through the net result for the year, where there is objective evidence. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss. (xv) De-recognition of financial assets and financial liabilities A financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; or if the Company transfers the financial asset: --

here substantially all the risks and w rewards have been transferred or;

--

here the Company has not w transferred substantially all the risks and rewards, if the Company has not retained control.

Where the Company has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Company’s continuing involvement in the asset. A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. (xvi) Other assets-lease incentives Other assets are recognised on a cost basis. The Company’s lease incentives

include upfront cash payments to the lessee or the reimbursement or assumption by the Company, as the lessor, of costs of the lessee (such as relocation costs, leasehold improvements, fit-out contributions and costs associated with a pre-existing lease commitment). Alternatively, the initial period of the lease term may be agreed to be rentfree or at a reduced rent, and shall be recognised, in accordance with the Australian Accounting Interpretations. (j) Liabilities (i) Payables These amounts represent liabilities for goods and services provided to the Company and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. (ii) Borrowings Loans are not held for trading or designated at fair value through profit or loss and are recognised at amortised cost using the effective interest rate method. Gains or losses are recognised in the net result for the year on derecognition. The finance lease liability is determined in accordance with AASB 117 Leases. (iii) Employee benefits --

ages and salaries, annual leave W and sick leave and on-costs

ATPSL staff are employed under conditions in accordance with the Federal Fair Work Australia Act 2009. Liabilities for wages and salaries, including non-monetary benefits and annual leave that are expected to be settled within 12 months after the end of the period in which the employees render the service are recognised and measured in respect of employees’ services up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled. Long–term annual leave that is not expected to be taken within twelve month is measured at present value in accordance with AASB 119

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost, or face value. Subsequent measurement is amortised at cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are recognised in the net result for the year when impaired, derecognised or through the amortisation process.

and loss, are subject to an annual review for impairment. An allowance for impairment is used when there is objective evidence that the Company will not be able to collect all amounts due.

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction, are capitalised to software and systems.


38

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

Employee Benefits. Markets yields on Commonwealth government bonds 3% are used to discount long-term leave. Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future. The outstanding amounts of workers’ compensation, insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses when the employee benefits to which they relate have been recognised. --

Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on Commonwealth government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured at the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date. The Commonwealth government bond rate of 3% (2012: 3%) was applied for discounting purposes. --

uperannuation - Defined S contribution plans

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Defined contribution plans is a postemployment benefit plan under which

an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an expense in the net result when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. --

Termination benefits

Termination benefits are recognised as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. (k) Other provisions Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event. The obligation can be measured reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. The discount rate used to determine the present value reflects current assessments of the time value of money, and the risks specific to the liability. The increase in the provision due to passage of time is recognised as interest expense. Other provisions exist when: the entity has a present legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

(l) Equity and reserves (i) Revaluation surplus The revaluation surplus is used to record increments and decrements on the revaluation of non-current assets. This accords with the Company’s policy on the revaluation of property, plant and equipment as discussed in Note 1 (i) (iii). (ii) Accumulated funds The category ‘accumulated funds’ includes all current and prior period retained funds. (m) Comparative information Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements. (n) Budgeted amounts Budget comparisons and no group service statements are not included in the Australian Technology Park Sydney Limited Financial Accounts as Australian Technology Park Sydney Limited is not an appropriated entity. (o) N  ew Australian Accounting standards and interpretations issued but not effective Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2013 reporting period. The following new Accounting Standards and Interpretations have not been applied and are not yet effective. This is due to NSW public sector Companies not being permitted to early adopt new Australian Accounting Standards, unless Treasury determines otherwise.


39

AASB 1053 Application of Tiers of Australian Accounting Standards.

Effective for annual reporting periods beginning on or after 1 July 2013

This standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. The adoption of these standards will not change the reported financial position and performance of the entity; the impact of adoption will reduce the level of disclosures included in the financial statements. AASB 2011-4: Amendments to Australian Accounting Standards to remove individual key management personnel disclosure requirements.

1 July 2013

The KMP remuneration disclosure note will now show total remuneration only rather than separating the remuneration into components. AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities adds application guidance to AASB 132 Financial Instruments: Presentation to address inconsistencies identified in applying some of the offsetting criteria of AASB 132.

1 January 2014

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

Standard / Interpretation

The adoption of this standard will not change the reported financial position and performance of ATPSL, there are no impact on disclosures as there are no offsetting arrangements currently in place. AASB 9 Financial Instruments includes requirements for the classification and measurement of financial assets. It was further amended by AASB 2010-7 to reflect amendments to the accounting for financial liabilities. AASB 2012-6. Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures These requirements improve and simplify the approach for classification and measurement of financial assets compared with the requirements of AASB 139.

1 January 2015

Financial liabilities will be classified as fair value through the profit and loss and financial assets will no longer be subject to impairment testing.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


40

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

2

Expenses excluding losses 2013

2012

$’000

$’000

2,490

2,354

196

210

Long service leave

18

38

Workers’ compensation insurance

19

11

Fringe benefit tax

16

18

(a) Employee related expenses Salaries and wages (including recreation leave) Superannuation - defined contribution plans

Other employee expenses

216

279

2,955

2,910

(b) Other operating expenses include the following: Auditor’s remuneration - audit of the financial statements Conference Centre cost of sales Koori Job Ready cost of sales

73

106

3,135

3,000

19

230

Operating lease rental expense - minimum lease payments Consultants

77

77

677

690

Contractors

1,065

1,328

Property expenses

2,536

4,109

Repairs & maintenance

311

418

Insurance

124

69

Legal

261

330

Operating lease costs

998

997

Advertising & public relations

621

609

Administration

408

369

Cleaning

403

429

IT expenses

433

567

Security

761

745

Other

817

807

12,719

14,880

1,895

1,561

(c) Depreciation and amortisation expense Depreciation

- Land and buildings - Leasehold improvements

-

-

- Furniture and fittings

189

177

- Plant and equipment

655

437

6

6

2,745

2,181

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

- Motor vehicles Amortisation - Software

86

62

2,831

2,243

(d) Finance costs Finance lease interest charges Interest expense Debt guarantee levies

332

315

1,147

1,786

699

1,061

2,178

3,162


41

(a) Sales of Services

Rendering of services

2013

2012

$’000

$’000

24,383

21,949

24,383

21,949

Revenue

(b) Investment revenue  

Bank deposits

113

125

Interest revenue from financial assets not at fair value through profit or loss

226

259

NSW Treasury Corporation Hour-Glass cash facility

(c) Grants  

(d) Other revenue

740

1,157

1,079

1,541

600

600

Other operating income

372

376

26,434

24,466

(i)

Other gains

Gain on revaluation of investment property (note 8)

4

Current assets - Cash and cash equivalents

2013

2012

$’000

$’000

Cash at bank and on hand

Short-term deposits

NSW Treasury Corporation Hour-Glass cash facility

2,856

4,069

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

3

8,595

4,300

485

485

18,278

22,538

27,358

27,323

For the purposes of the statement of cash flows, cash and cash equivalents includes cash at bank, cash on hand, short-term deposits and liquid investment in NSW Treasury Corporation Hour-Glass cash facility. Cash and cash equivalent assets recognised in the statement of financial position are reconciled at the end of the financial year to the statement of cash flows as follows:

Cash and cash equivalents (per statement of financial position)

27,358

27,323

Closing cash and cash equivalents( per statement of cash flows)

27,358

27,323 AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Refer Note 19 for details regarding credit risk, liquidity risk and market risk arising from financial instruments.


42

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

2013

2012

$’000

$’000

414

195

5

Current/Non-Current Assets - Rreceivables

Current

Sale of services

Less: Allowance for impairment

(5)

(5)

409

190

Prepayments

481

47

Goods and services tax recoverable

-

47

Other receivables

414

367

1,304

651

Movement in the allowance for impairment

Balance at 1 July

5

26

(Decrease) in allowance recognised in profit or loss

-

(21)

Amounts written off during the year

-

-

Balance at 30 June

5

5

Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 19.

6

Current/non-current assets – Other Financial assets

2013

2012

$’000

$’000

Loans receivable - Department of Defence

Current

505

470

Non-current

2,368

2,873

2,873

3,343

Loans receivable represents the fitout costs receivable from the Department of Defence over the term of lease of 10 years. The fixed interest rate is 7.24% per annum and the maturity date is 30 May 2018. Management considers that the carrying amount of the loan best represents the maximum credit risk exposure at the balance sheet date and that there is no indication at that date that the counterparty will not meet its obligations.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Refer to Note 19 for further information regarding credit risk, liquidity risk and market risk arising from financial instruments.


43

   

Non-current assets - Property, plant and equipment

           

       

Land and buildings Gross carrying amount Accumulated depreciation Net carrying amount at fair value

         

2013

2012

$’000

$’000

55,900 55,900  

49,750 49,750  

Leasehold improvements Gross carrying amount Accumulated depreciation Net carrying amount at fair value

 

 

       

Furniture and fittings Gross carrying amount Accumulated depreciation Net carrying amount at fair value

1,912 (1,395) 517  

1,872 (1,214) 658  

       

       

Plant and equipment Gross carrying amount Accumulated depreciation Net carrying amount at fair value

4,886 (2,995) 1,891  

3,214 (2,334) 880  

       

       

Motor vehicles Gross carrying amount Accumulated depreciation Net carrying amount at fair value

32 (18) 14  

32 (12) 20  

       

       

Art and artefacts Gross carrying amount Accumulated depreciation Net carrying amount at fair value

5 5  

5 5  

 

 

Work in progress

861

1,764

   

   

Total property, plant and equipment At gross value Accumulated depreciation

63,596 (4,408)

56,637 (3,560)

Carrying amount at fair value

59,188

53,077

 

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

7

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


44

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

7 Land and Leasehold Furniture buildings improvements and fittings $’000

Plant and equipment

Art and artefacts

Motor vehicles

Work in progress

Total

$’000

$’000

$’000

$’000

$’000

$’000

$’000

49,750

-

658

880

5

20

1,764

53,077

2,165

-

48

1,042

-

-

836

4,091

1,035

-

-

624

-

-

(1,659)

-

-

-

-

-

-

-

(80)

(80)

(a) Reconciliation of property, plant and equipment Year ended 30 June 2013 Net carrying amount at start of year Additions Transfer in/out Transfer out to intangibles (note 9) Net revaluation increment less revaluation decrements Depreciation expense

4,845

-

-

-

-

-

-

4,845

(1,895)

-

(189)

(655)

-

(6)

-

(2,745)

Net carrying amount at end of year

55,900

-

517

1,891

5

14

861

59,188

48,225

11,526

580

1,166

5

26

199

61,727

Year ended 30 June 2012

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Net carrying amount at start of year Additions

-

1,368

206

111

-

-

1,698

3,383

Transfer in/out

-

51

36

31

-

-

(118)

-

Transfer out to intangibles (note 9) Correction of prior period errors Net revaluation increment less revaluation decrements Depreciation expense

-

-

-

-

-

-

(15)

(15)

1,418

(12,945)

13

9

-

-

- (11,505)

1,668

-

-

-

-

-

-

1,668

(1,561)

(177)

(437)

-

(6)

-

(2,181)

Net carrying amount at end of year

49,750

658

880

5

20

1,764

53,077

-

8

Investment property

2013

2012

$’000

$’000

Opening balance as at 1 July - fair value

Net gain from fair value adjustment

Closing balance as at 30 June - fair value

Investment properties are valued annually at fair value by an independent valuer. Investment property consists of the International Business Centre, NICTA and Biomedical buildings.

69,287

65,218

2,856

4,069

72,143

69,287

8,948

7,368

(1,171)

(1,218)

The following amounts have been recognised in the net result for the year: Rental income Direct operating expenses arising from investment properties that generated rental income


45

2013

2012

$’000

$’000

633

515

(484)

(398)

149

117

Intangible assets

Software

Gross carrying amount

Accumulated amortisation

Carrying amount at fair value

Net carrying amount at start of year

Amortisation (recognised in depreciation and amortisation)

(86)

(62)

Net carrying amount at end of year

149

117

2013

2012

$’000

$’000

10

117

66

Additions

38

98

Transfer in from work in progress (note 7(a))

80

15

Current/non-current assets – Other

Lease Incentive Asset

Current

389

343

Non-current

1,406

1,463

1,795

1,806

11

Current liabilities – Payables

2013

2012

$’000

$’000

Current

Accrued salaries, wages and on-costs

Creditors and accruals (i)

Amounts payable to parent entity (ii)

-

39

Event and tenant deposits

779

1,130

Unearned revenue

527

344

Goods and Services Tax payable

47

-

5,448

5,594

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

9

(i) T  he average credit period on purchase of services is 30 days. The Company has financial risk management policies in place to ensure that all payables are paid within the credit time frame.

(ii) Refer to Note 17(c) for terms and conditions.

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above borrowings, are disclosed in Note 19.

255

3,806

3,826

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

289


46

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

12  

Current/non-current liabilities - Borrowings

2013

2012

$’000

$’000

505

470

Current

Loan from parent entity - 10 year fixed interest

Loan from parent entity at variable rates

5,000

5,000

5,505

5,470

Non-current

Loan from parent entity - 10 year fixed interest

2,368

2,873

20,006

24,996

6,295

5,963

Loan from parent entity at variable rates

Finance lease liability (Note 16(c))

28,669

33,832

34,174

39,302

Details regarding the credit risk, liquidity risk and market risk, including a maturity analysis of the above borrowings are disclosed in Note 19. The loans from the parent entity were received to fund the construction of buildings. A loan agreement is in place and the Company incurs commercial rates of interest payable to the parent entity. The Company paid 3.4% interest for the current year (2012: 4.6%). The total loan facility is for $45m. In May 2010, the Company’s Board approved commencement of a discretionary debt reduction strategy for the floating rate loan facility. Since then the Board has approved for a $5m debt repayment to be made annually. A payment of $5m was made in December 2012. The 10 year fixed interest rate loan relates to the fitout costs recoverable from the Department of Defence over the term of the lease (refer note 6).

13

Current/non-current liabilities – Provisions

2013

2012

$’000

$’000

Employee benefits and related on-costs

Current

Recreation leave

173

161

Long service leave

113

88

286

249

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Non-current

Long service leave

69

76

355

325

286

249

Aggregate employee benefits and related on-costs Provisions - current Provisions - non-current Accrued salaries, wages and on-costs (note 11)

69

76

289

255

644

580


47

Reserves and accumulated funds

 

(a)

Reserves

Revaluation surplus - property, plant and equipment

Correction of prior period errors

2013

2012

$’000

$’000

2,665

-

(997)

-

note

Balance at beginning of the year

Balance as restated Net revaluation surplus

1,668

-

7(a)

4,845

1,668

6,513

1,668

Balance at end of the year

(b)

Accumulated funds

Balance at beginning of the year

103,024

97,923

(11,266)

(11,505)

Balance as restated

91,758

86,418

Net result

8,607

5,340

Balance at end of the year

100,365

91,758

Correction of prior period errors

15

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

14

Reconciliation of cash flows from operating activities to net result

2013

2012

$’000

$’000

Net cash used on operating activities

Depreciation and amortisation

Gain on revaluation of investment property

Recognition of operating lease incentive in accordance with:

Interpretation of AASB 115

Operating lease

Increase/(decrease) in prepayments and other assets

Net result

Allowance for impairment on receivables

9,292

6,394

(2,831)

(2,243)

2,856

4,069

(11)

(538)

(998)

(997)

-

21

183

(460)

(Increase)/decrease in creditors

146

(1,352)

(Increase)/decrease in provisions

(30)

446

8,607

5,340

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


48

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

16

2013

2012

$’000

$’000

89

1,678

-

-

(a) Capital commitments Aggregate capital expenditure contracted for at balance date and not provided for (inclusive of GST): Not later than one year Later than one and not later than five years Later than five years

-

-

Total including GST

89

1,678

(b) Operating lease commitments

i)

Disclosures for the Company as lessor

Operating leases relate to the investment property referred in Note 8 to the financial statements. Tenancy lease terms vary with terms ranging up to 99 years, however the majority fall within the 2-10 year range. Depending on the commercial arrangements, many leases also provide for renewal options. All operating lease contracts contain periodic escalation provisions, as well as market review clauses in the event that the lessee exercises an option to renew. Lessees do not have an option to purchase the property at the expiry of the lease period.   2013

2012

$’000

$’000

Non-cancellable operating lease receipts

Not later than one year

15,023

13,909

Later than one and not later than five years

46,321

38,780

Later than five years

13,957

18,266

Total including GST

75,301

70,955

The above includes GST output tax of $6.85m (2012: $6.45m) that is expected to be paid to the Australian Taxation Office. The income commitments relate to rent leases. All receivable leases are entered into at commercial rates and terms. Regular market valuations and tendering processes are carried out to ensure commercial arrangements are maintained.  

ii)

Disclosures for the Company as lessee

Operating leases relate to the heritage land and buildings with lease term of 99 years. The Company does not have an option to purchase the leased asset at the expiry of the lease period.

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Commitments for expenditure

Future non-cancellable operating lease rentals not provided for and payable

Not later than one year

Later than one and not later than five years

Later than five years

It should be noted that ATPSL has elected to reflect the valuation at the inception of the lease as the fair value of the rental payments will commence in 2016. In respect of non-cancellable operating leases the following have been recognised:

 

   

Non-current - other liability Operating lease payable in arrears

2012 $’000

-

2013 $’000

-

3,125

1,875

95,625

96,875

98,750

98,750

   

 

17,955

16,957


49

Finance leases relate to the Biomedical, International Business Centre, NICTA, Locomotive and Conference Centre and Exhibitions buildings with lease term of 99 years. The Company does not have an option to purchase the leased asset at the expiry of the lease period. It should be noted that a peppercorn nominal rent of $1 p.a is charged for all buildings with the exception of the Biomedical Building.

Minimum lease payments, later than 5 years * Less: Future finance charges Present value of minimum lease payments Included in the financial statements as: Non-current finance lease liability (Note 12)

2013

2012

$’000

$’000

30,525

30,525

(24,230)

(24,562)

6,295

5,963

6,295

5,963

    *Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual.

17

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

(c) Finance lease commitments

Directors and executives disclosure (a) Details of key management personnel Directors Dr Colin Gellatly AO - Chairman Mr Michael Collins Mr Richard Johnson Ms Lucy HughesTurnbull AO Mr John Mulally Mr Sean O’Toole

-M  anaging Director (from 1 January 2013) Sean O’Toole is remunerated via Landcom

Mr Roy Wakelin-King - Managing Director (to 31 December 2012)

Executives Mr Chris Saunders

- General Manager

Ms Roula Zivlas

- Director Finance & Corporate Services

Mr Graham Stevens

- Director Property Services

Ms Ruby Chronis

- Director Sales & Marketing

Ms Ariana Aljinovic

- Executive Manager Eveleigh Market AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


50

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

17

Directors and executives disclosure (continued) (b) Compensation of key management personnel Directors’ compensation

2013

$

$

$

Dr Colin Gellatly AO

30,000

2,700

32,700

Mr Michael Collins

13,000

1,170

14,170

Mr Richard Johnson1

-

-

-

Ms Lucy Hughes Turnbull AO

13,000

1,170

14,170

Mr John Mulally

15,959

-

15,959

Mr Sean O’Toole2

-

-

-

Mr Roy Wakelin-King AM2

-

-

-

71,959

5,040

76,999

Salary & fees

Superannuation

Total

$

$

$

Salary & fees

1

this position is not remunerated.

2

remunerated by Urban Growth Development Corporation from 1 January 2013.

2012

Superannuation

Total

Dr Colin Gellatly

28,846

2,596

31,442

Mr Michael Collins

12,500

1,125

13,625

Mr Richard Johnson1

-

-

-

Ms Lucy Hughes Turnbull

12,500

1,125

13,625

Mr John Mulally1

-

-

-

Mr Roy Wakelin-King AM

 

 

-

-

-

53,846

4,846

58,692

2

this position is not remunerated. Directors did not receive any loans or advances or other forms of compensation during the financial year.

1

Executives’ compensation

The Company’s objective is to reward executives with a level and mix of compensation commensurate with their position and responsibilities within the Company as to: --

Reward executives for Company, business unit and individual performance against targets set by appropriate benchmarks;

--

Link rewards with the strategic goals and performance of the Company; and

--

Ensure total compensation is competitive by market standards.

Executives’ compensation: 2013 Short-term employee benefits

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Post employment benefits

$’000

$’000

777,925

710,394

87,227

140,688

865,152

851,082

The Managing Director of the Company is not remunerated by the Company. He is also the CEO of Urban Growth NSW Development Corporation (the parent) and is remunerated by the parent. ATPSL pays Urban Growth Development Corporation on a pro-rata basis for the time the Managing Director devotes to the Company (2013: $80k, 2012: $85k). In 2012, the parent entity was Sydney Metropolitan Development Authority.

(c) Related party disclosures Terms and conditions of transactions with related parties Sales to and purchases from related parties are made in arm’s length transactions both at normal market prices and on normal commercial terms. The Directors or Executives of the Company do not currently hold or have held positions with organisations that the Company had dealings with.

2012


51

Related party transactions and balances

The Company is a wholly owned subsidiary of UGDC. The balances outstanding at the end of the year and the value of the transactions with the related parties during the year are set out in the table below: 2013

2012

$’000

$’000

Related party balances

Receivable from the parent entity

-

-

Payable to the parent entity

-

(39)

Loans from the parent entity

34,174

39,302

Related party transactions

Provision of staff services by the parent entity

Provision of staff services to the parent entity

Development activity support from the parent entity

Eveleigh Market rental paid to parent entity

Interest paid to parent entity on the loan

Debt guarantee levy paid to parent entity on the loan

19

(80)

(209)

-

16

(80)

(85)

(77)

(77)

(1,146)

(1,763)

(699)

(1,061)

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

18

Financial instruments The Company’s principal financial instruments are outlined below. These financial instruments arise directly from the Company’s operations or are required to finance the Company’s operations. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Company’s main risks arising from financial instruments are outlined below, together with the Company’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial statements. The Board has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Company, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Audit and Risk Committee on a continuous basis.

(a) Financial instrument categories

 

Carrying

Carrying

amount

amount

2013

2012

$’000

$’000

27,358

27,323

823

557

Asset class

Financial assets

 

Cash and cash equivalents

4 N/A

Receivables1

5 Loans and receivables (at amortised cost)

Other financial assets

6 Loans and receivables (at amortised cost)

Financial liabilities

Payables2

Borrowings

note Category

 

  11 Financial liabilities measured at amortised cost 12 Financial liabilities measured at amortised cost  

 

1. Excludes statutory receivables and prepayments.

2. Excludes statutory payables and unearned revenue.

2,873

3,343

31,054

31,223

4,874

5,250

34,174

39,302

39,048

44,552

 

 

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


52

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

19

Financial instruments (continued) (b) Credit risk Credit risk arises when there is the possibility of the Company’s debtors defaulting on their contractual obligations, resulting in a financial loss to the Company. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial assets of the Company, including cash, receivables, and authority deposits. No collateral is held by the Company. The Company has not granted any financial guarantees. Credit risk associated with the Company’s financial assets, other than receivables, is managed through the selection of counterparties and establishment of minimum credit rating standards. Authority deposits held with NSW TCorp are guaranteed by the State. Cash Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily bank balances at the monthly average NSW Treasury Corporation (TCorp) 11am unofficial cash rate, adjusted for a management fee to NSW Treasury. The TCorp Hour Glass cash facility is discussed in paragraph (d) below. Receivables - trade debtors All trade debtors are recognised as amounts receivable at balance date. In determining the recoverability of a trade receivable, the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base for the conference centre and the markets making an upfront payment of monies due before the event is held. It should be noted that the receipt of monies before the event occurs does not apply to government agencies. While the property part of the business collects rental monies for up to 3-6 months before the commencement of the lease. Collectability of trade debtors is reviewed on an ongoing basis. The Company is certain that all of that debt will be recovered during the year. The Company meets with these debtors on a regular basis to make sure that the debt is paid on time. Where necessary, debtors are placed on a payment plan, and/or prompt formal recovery action is initiated by the Company. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the Company will not be able to collect all amounts due. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are reversed in net result. Included in the Company’s trade receivable balances are debtors with a carrying amount of *$398k (2012: $152k) which are past due at the reporting date for which the Company has not provided as there has not been significant change in credit quality and the amounts are still considered recoverable.  

Total $’000

Past due but not impaired $’000

Considered impaired $’000

2013

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

< 3 months overdue

398

398

-

3 - 6 months overdue

-

-

> 6 months overdue

-

-

2012

131

131

-

-

-

-

26

21

5

< 3 months overdue 3 - 6 months overdue > 6 months overdue *Entire payment received in July 2013

The Company has placed funds on deposit with TCorp, which has been rated ‘AAA’ by Standard and Poor’s. These deposits are similar to money market or bank deposits and can be placed ‘at call’ or for a fixed term. The deposits at balance date were earning an average interest rate of 3.61% (2012: 4.78%), while over the year the weighted average interest rate was 3.62% (2012: 4.8%) on a weighted average balance during the year of $20.069m (2012: $24.128m). None of these assets are past due or impaired.


53

Liquidity risk is the risk that the Company will be unable to meet its payment obligations when they fall due. The Company continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts and loans. During the current and prior year, there were no defaults of loans payable. No assets have been pledged as collateral. The Company’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Weighted average effective interest rate

< 1 year

1-5 years

> 5 years

Total

%

$’000

$’000

$’000

$’000 4,874

2013 Non-interest bearing payables

-

4,874

-

-

Fixed rate loan from parent

7.24%

505

2,368

-

2,873

Variable rate loan from parent

3.37%

5,000

-

20,006

25,006

Finance lease liability

5.50%

2012 Non-interest bearing payables

-

-

6,295

6,295

10,379

2,368

26,301

39,048

5,250

-

5,250

-

-

Fixed rate loan from parent

7.24%

470

2,257

616

3,343

Variable rate loan from parent

4.66%

5,000

-

24,996

29,996

Finance lease liability

5.50%

-

-

5,963

5,963

10,720

2,257

31,575

44,552

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

(c) Liquidity risk

(d) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s exposures to market risk are primarily through interest rate risk on the Company’s borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment Facilities. The Company has no exposure to foreign currency risk and does not enter into commodity contracts. The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Company operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the statement of financial position date. The analysis is performed on the same basis as for 2012. The analysis assumes that all other variables remain constant. Interest rate risk Exposure to interest rate risk arises primarily through the Company’s interest bearing liabilities. This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW TCorp via the parent entity. A +/-1% is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change in interest rates.

Carrying

amount

Profit

Equity

Profit

Equity

$’000

$’000

$’000

$’000

$’000

2013

Financial assets

9,080

(91)

(91)

91

91

Cash and cash equivalents Receivables Other financial assets

1%

823

(8)

(8)

8

8

2,873

(29)

(29)

29

29

4,874

49

49

(49)

(49)

34,174

342

342

(342)

(342)

2012

Financial assets

4,785

(48)

(48)

48

48

Payables Borrowings

Cash and cash equivalents Receivables Other financial assets Financial liabilities Payables Borrowings

557

(6)

(6)

6

6

3,343

(33)

(33)

33

33

5,250

53

53

(53)

(53)

39,302

393

393

(393)

(393)

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Financial liabilities

-1%


54

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

19

Financial instruments (continued) Other price risk – TCorp Hour-Glass facilities Exposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour-Glass Investment Facilities, which are held for strategic rather than trading purposes. The Company has no direct equity investments. The Company holds units in the following Hour-Glass investment trusts:

2013

2012

Facility

Investment sectors

Investment horizon

$’000

$’000

Cash facility

Cash, money market instruments

Up to 1.5 years

18,278

22,538

The unit price of each facility is equal to the total fair value of the net assets held by the facility divided by the number of units on issue for that facility. Unit prices are calculated and published daily. NSW TCorp is trustee for the above facility and is required to act in the best interest of the unit holders and to administer the trust in accordance with the trust deed. As trustee, TCorp has appointed external managers to manage the performance and risks of the facility in accordance with a mandate agreed by the parties. However, TCorp acts as manager for part of the Cash and Strategic Cash Facilities. Investment in the Hour-Glass facilities limits the Company’s exposure to risk, as it allows diversification across a pool of funds with different investment horizons and a mix of investments. NSW TCorp provides sensitivity analysis information for its Investment facilities, using historically based volatility information collected over a ten year period, quoted at two standard deviations (i.e. 95% probability). A reasonably possible change is based on the percentage change in unit price (as advised by TCorp) multiplied by the redemption value as at 30 June each year for cash facility (balance from Hour-Glass statement). Impact on profit/loss

Hour Glass Investment – Cash facility

2013

2012

Change in unit price

$’000

$’000

+/- 1%

183

225

(e) Fair value compared to carrying amount Financial instruments are generally recognised at cost, with the exception of the TCorp Hour-Glass facilities, which are measured at fair value. The value of the Hour-Glass Investments is based on the Company’s share of the value of the underlying assets of the facility, based on the market value. All of the Hour Glass facilities are valued using ‘redemption’ pricing. The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value because of the short-term nature of many of the financial instruments.

(f) Fair value recognised in the statement of financial position The Company uses the following hierarchy for disclosing the fair value of financial instruments by valuation technique: --

Level 1 - Derived from quoted prices in active markets for identical assets or liabilities.

--

Level 2 - Derived from inputs other than quoted prices that are observable directly or indirectly.

--

Level 3 - Derived from valuation techniques that include inputs for the asset or liability not based on observable market data (unobservable inputs).

Level 1

Level 2

Level 3

Total

$’000

$’000

$’000

$’000

Short term cash investments - TCorp

-

18,278

-

18,278

Level 1

Level 2

Level 3

Total

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

2013 Financial assets at fair value

2012

$’000

$’000

$’000

$’000

Financial assets at fair value

Short term cash investments - TCorp

-

22,538

-

22,538

The table above includes only financial assets, as no financial liabilities were measured at fair value in the statement of financial position. There were no transfers between level 1 and 2 during the period ended 30 June 2013.


55

Prior period errors and reclassification The Company has identified the following prior period errors. Necessary corrections have been made as required by AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, as listed below: --

The amount of the correction for the line affected.

--

The amount of the correction at the beginning of the earliest prior period presented.

The valuation of Australian Technology Park Sydney Limited’s land and buildings included infrastruture. The company accounted for these assets in its finanical statements as Leasehold Improvements. As a result, the Company’s assets were overstated in prior years. The impact of the prior period error resulted in a decrease in the total Non-Current Assets of $12.285m and $11.527m in 2012 and 2011 respectively. (i)

Restatement of Statement of Comprehensive Income, Statement of Financial position and Statement to Changes in Equity for the year ended 30 June 2012 financial statement line items impacted by the prior error.       Statement of comprehensive income Expenses excluding losses Depreciation and amortisation Total expenses excluding losses

2012 $’000

$’000

2012 $’000

previous reported

prior period errors

restated  

(2,548)

305

(2,243)

(23,500)

305

(23,195)

Gain on revaluation of investment property

4,135

(66)

4,069

Net result

5,101

239

5,340

Net increase in property, plant and equipment revaluation surplus

2,665

(997)

1,668

Total other comprehensive income

2,665

(997)

1,668

Total comprehensive income

7,766

(758)

7,008

Statement of financial position

ASSETS

Non-current assets

Property, plant and equipment

12,285

(12,285)

-

645

13

658

- Leasehold improvements - Furniture and fittings - Plant and equipment

9

880

(12,263)

53,077

Total non-current assets

139,080

(12,263)

126,817

Total assets

167,867

(12,263)

155,604

105,689

(12,263)

93,426

NET ASSETS   Equity Reserves Accumulated funds TOTAL EQUITY Statement of changes in equity Total comprehensive income for the year Other reserves Accumulated funds Balance of equity at the end of year

2,665

(997)

1,668

103,024

(11,266)

91,758

105,689

(12,263)

93,426

7,766

(758)

7,008

2,665

(997)

1,668

103,024

(11,266)

91,758

105,689

(12,263)

93,426

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

871 65,340

Total property, plant and equipment

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

20


56

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2013

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

(ii) Restatement of Statement of Comprehensive Income, Statement of Financial position and Statement to Changes in Equity for the year ended 30 June 2011 financial statement line items impacted by the prior period error.

$’000

$’000

$’000

previous

prior period

restated

reported

errors

Statement of financial position

ASSETS

Non-current assets

Property, plant and equipment

-

11,527

(11,527)

-

580

13

593

- Furniture and fittings - Plant and equipment

1,166

9

1,175

61,728

(11,505)

50,223

Total non-current assets

132,161

(11,505)

120,656

Total assets

163,321

(11,505)

151,816

NET ASSETS

Total property, plant and equipment

97,923

(11,505)

86,418

Equity

Accumulated funds TOTAL EQUITY

97,923

(11,505)

86,418

97,923

(11,505)

86,418

Events after reporting period

The Company has not identified any events or transactions after the reporting period that are material which require adjustments or disclosure in the financial statements.

22

Contingent assets and liabilities

Australian Technology Park Sydney Limited has no known contingent assets or contingent liablities as reporting date.

23

Members’ guarantee

AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT

Australian Technology Park Sydney Limited is limited by guarantee and has one member (one in 2012). If the Company is wound up, the Company’s constitution states that each member is required to contribute $20 towards meeting any outstanding liability of the Company.

2012

- Leasehold improvements

21

2011

END OF AUDITED FINANCIAL STATEMENTS


APPENDICES

Corporate Credit and Debit Cards ATPSL regularly reviews the use of credit and debit cards for business purposes. Credit cards and debit cards are both authorised by the Managing Director for company and are controlled by the General Manager. The credit cards have a monthly transaction limit of $5,000 with a maximum transaction value of $5,000. While the debit credit cards have a monthly transaction limit of $2,000 with a maximum transaction value of $500. The credit and debit card expenditure are reviewed monthly in accordance with the ATPSL Credit and Debit Card Policy Risk Management and Insurance The Company is covered for workers compensation, motor vehicle accidents, property loss, public liability and various other insurable risks through its parent organisation which makes contribution to the Treasury Managed Funds. It is a requirement that all suppliers to the Company have the appropriate insurance coverage, including public liability, professional indemnity, workers compensation (where required by law) and product liability.

Disability Access Plan Under the disability access policy, the Company aims to provide all people with reasonable access to the resources and spaces governed by the company. This includes providing adequate parking places and ease of movement throughout the park. The Company management will work closely with the Disability Access Advisory Group of the Authority to continually improve access for visitors, residents and workers within its precincts. Ethnic Affairs Priorities Statement The Company recognises and values the different linguistic, religious, racial and ethnic backgrounds of all the people of NSW and endorses the four principles of multiculturalism as set out in the Community Relations Commission and Principles of Multiculturalism Act 2000. The Company complies with and endorses the provisions of the Equal Employment Opportunity legislation, which forms part of the NSW Anti-Discrimination Act 1977. Staff come from a broad range of ethnic backgrounds, and are encouraged to use their language skills to assist in ATPSL business. Total Positions Male Employees

23 9

Female Employees

14

NESB background

7

Consumer Response

Indigenous

3

The Company is committed to handling public enquiries courteously and efficiently and, in the case of complaints, to responding to issues quickly, equitably and in accordance with procedures detailed in Complaints Handling Policy, which it applies to its operations.

Males Senior Management Positions

2

Female Senior Management Positions

2

Government Information (Public Access) Act 2009 No Government Information (Public Access) requests for information were received. Workplace Health and Safety Policy The Company applies an audited systems approach in the management of its Workplace Health and Safety (WHS) Policy with regard to its activities. The Company’s commitment and ongoing management of WHS is set out in this policy which is reviewed annually. The Company proactively manages the occupational health, safety and welfare of all its employees, contractors performing work on its behalf and visitors to its premises through the implementation of its WHS Management System. The Company is committed to zero workplace accidents and actively manages a safety culture that promotes its duty of care to co-workers, customers, contractors and visitors to ATP.

ATPSL FINANCIAL STATEMENTS - 30 JUNE 2013

Where appropriate, these appendices relate to the Authority, which wholly owns the Company.

57

Waste Reduction and Purchasing Policy The Government’s Waste Reduction and Purchasing Policy (WRAPP) requires all State Government agencies to develop and implement a WRAPP Plan to reduce waste and increase purchases of recycled content materials where they are both cost and performance competitive Whilst the Company is a company limited by guarantee governed by Corporations Act, it is a wholly owned subsidiary of a government sector agency - the UrbanGrowth NSW Development Corporation. The Company Management regard it as prudent to integrate these public sector principles and policies of sustainable environment management into its operations. The Company’s environmental policy underpins a commitment to the principles of ecologically sustainable development in the provision of its services. AUSTRALIAN TECHNOLOGY PARK 2012/13 ANNUAL REPORT


Australian Technology Park Sydney Limited 2 Locomotive St Suite 3220 Locomotive Workshop Eveleigh NSW 2015 Phone: (02) 9209 4220 Facsimile: (02) 9209 4222 Office hours: 8.30am to 5.30pm Monday to Friday

ISSN: 1445-7369

ATP 2013 Annual Report  
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