THE OFFICE OF STRATEGIC LANDS ADMINISTERS THE FUNCTIONS OF THE CORPORATION …the Minister for Planning is incorporated as the Corporation!

 

 

THE OFFICE OF STRATEGIC LANDS ADMINISTERS THE FUNCTIONS OF THE CORPORATION

CONCLUSION …

The Minister for Planning is incorporated as the Corporation Sole ‘Minister Administering the Environmental Planning and Assessment Act 1979’.

The Corporation’s main activities are to:

acquire land, control and manage its vested lands and dispose of surplus land.

The Office of Strategic Lands administers the functions of the Corporation.

 

THE OFFICE OF STRATEGIC LANDS ADMINISTERS THE FUNCTIONS OF THE CORPORATION

Corporation Sole ‘Minister Administering the Environmental Planning and Assessment Act 1979’

Audit Opinion

An unqualified audit opinion was issued on the Corporation Sole ‘Minister Administering the Environmental Planning and Assessment Act 1979’ 30 June 2013 financial statements.

Operational Snapshot

The Corporation identifies, acquires, manages (on an interim basis) and transfers land to

other government agencies as required for planning purposes throughout the Sydney region.

The Corporation acquires land for:

  • infrastructure projects, such as road and rail corridors
  • regional open space, including recreational and conservation areas
  • specific sites for strategic planning projects, such as the Rouse Hill regional centre.

In 2012-13, the Corporation purchased land for $23.4 million ($68.2 million in 2011-12). It

transferred land with a value of $82.0 million ($31.0 million) to other agencies.

Key Issue

Completeness and Accuracy of Land Holdings

 

The Corporation

Sole recognised

$470 million of land managed by local councils

 

During 2012-13, the Corporation assessed the accounting treatment for land under the care, control and management of local councils. It provided evidence to support the recognition of these assets in its financial statements. The Corporation recognised $470 million in core land assets and $5.3 million in non-core land assets, which it accounted for as an adjustment to the Asset Revaluation Reserve in 2011.

The recognition of these assets resulted in an unqualified audit opinion on the 30 June 2013 financial statements. The audit opinion in each of the last three years was qualified, as the Corporation could not determine the completeness and accuracy of its land assets.

Other Information

Quality of Financial Statements

The Corporation improved the quality of its year end work papers. The work papers supported the audited financial statements. Most of the information was received on time. This helped the Corporation meet the earlier reporting timeframes required by Treasury. Last year’s report to Parliament recommended the Corporation improve the quality of its financial statements and supporting work papers.

Land Purchases

During 2012–13, the Corporation spent $12.3 million on acquiring land for open space

purposes in Fairfield, Blacktown, Liverpool, Pittwater, Ryde, Wollondilly and the Blue

Mountains. Most of the open space land (11 hectares) was for transfer to the Western Sydney Parklands Trust.

The Corporation also purchased nine small parcels of land for environmental conservation purposes in Riverstone and Marsden Park, as well as small parcels of land adjoining coastal environments in Pittwater.

P.2

It spent a further $6.0 million on land required for infrastructure as part of the South West Rail Line, which it transferred to Transport for NSW in late 2012.

Land Sales

Land sales generated proceeds of $41.5 million for the Corporation during the year. The

Corporation has entered into arrangements to facilitate the sale of land, including:

  • an agreement with UrbanGrowth NSW to develop and sell land at Bunya
  • an agreement with UrbanGrowth NSW and a private developer to develop and sell land in the Rouse Hill town centre.

Land Transfers

During the year, the Corporation transferred land valued at $82.0 million to several

government agencies. The land transfers were to Transport for NSW ($80.5 million), Western Sydney Parklands Trust ($1.4 million) and the Roads and Maritime Services ($100,000).

Other

Opportunities for improvements to accounting and internal control procedures were identified during the audit and reported to management.

Financial Information

Abridged Statement of Comprehensive Income

Year ended 30 June 2013

$’000

2012

$’000

Employee related expenses 2,593 4,496

Depreciation and amortisation 338 709

Grants and subsidies 46,364 15,091

Finance costs 21,563 20,947

Other expenses 9,465 5,114

Total expenses 80,323 46,357

Investment revenue 3,163 207

Other revenue 52,806 30,336

Total revenue 55,969 30,543

Other gains 21,468 13,144

Net result-deficit (2,886) (2,670)

Other comprehensive income

Net increase in revaluation of assets 84,831 4,315

Total other comprehensive income 84,831 4,315

Total comprehensive income 81,945 1,645

Employee related expenses decreased by $1.9 million, or 42.3 per cent, mainly due to a

number of staff positions remaining vacant during the year.

Grants and subsidies increased mainly due to $27.6 million provided to Roads and Maritime Services (RMS) for construction of the Erskine Park link road. RMS opened the road in July 2013.

The Corporation achieved a gain of $21.5 million ($13.1 million in 2011-12) on disposal of

land. This is influenced by the location, type and volume of land sold. The Corporation sold 266 lots (97 lots in 2011-12) in the Bunya project and 111 lots (85 lots in 2011-12) in the Rouse Hill project during the year.

 

P.3

The net increase in revaluation of assets was due to the Corporation revaluing its open space land at 30 April 2013.

Abridged Statement of Financial Position

At 30 June 2013

$’000

2012

$’000

Current assets 153,253 170,569

Non-current assets 1,516,303 1,519,666

Total assets 1,669,556 1,690,235

Current liabilities 56,093 107,394

Non-current liabilities 384,269 353,588

Total liabilities 440,362 460,982

Net assets 1,229,194 1,229,253

Current assets decreased by $17.3 million mainly due to a fall in cash to meet the costs of grants and subsidies and other expenses.

Current liabilities decreased by $51.3 million largely due to the settlement of liabilities for property purchases recorded in 2012.

The increase in non-current liabilities is predominately due to a $29.2 million increase in

borrowings to meet the costs of property acquisitions.

 

Corporation’s Activities

The Minister for Planning is incorporated as the Corporation Sole ‘Minister Administering the Environmental Planning and Assessment Act 1979’. The Corporation’s main activities are to acquire land, control and manage its vested lands and dispose of surplus land.

The Office of Strategic Lands administers the functions of the Corporation.

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