Australian Technology Park Sydney Limited

aUstRalian teCHnoloGY PaRK 2011:12 ANNUAL REPORT

2011:12 annUal RePoRt

MinisteR’s letteR

The Hon. Brad Hazzard M.P.Minister for Planning and Infrastructure, Minister assisting the Premier on InfrastructureGovernor Macquarie TowerFarrer PlaceSydney

Dear Minister Hazzard,

It is with pleasure that I forward you the eighth Annual Report of the Australian Technology Park for the year ending 30 June 2012.

This report has been prepared in accordance with the NSW Annual Report (Statutory Bodies) Act 1984 No 87, the Annual Report (Statutory Bodies) Regulation 2000 and the Growth Centres (Development Corporations) Act 1974.

Yours Sincerely,

Roy Wakelin-King AM

Managing Director Australian Technology Park Sydney Limited

02 Charter

04 From the Chairman and Managing Director

06 ATPSL Board Members

08 Corporate Governance

12 Innovation

16 Heritage and History

18 Sustainability

20 Community

26 Operational Structure and Performance

28 Management and Achievements

34 Conference and Exhibition Centre

36 Director’s Report

42 Director’s Declaration

43 Auditor’s Independence Declaration

44 Independent Auditors Report

46 Financial Statements

78 Appendices

79 Index

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

2// To create

a world-class technology precinct //

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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, responsibility for ATP was handed to the Sydney Metropolitan Development Authority when RWA concluded operations.

Spread over 13.5 hectares, ATP occupies the site of the former Eveleigh Railway Workshops, built in the late 19th century and once the largest and most technologically advanced facility in the southern hemisphere. Today, ATP is home to more than 100 organisations employing more than 3,000 people in a community of researchers, entrepreneurs, incubator businesses, start-ups, mature technology companies and educational organisations. This confluence of research and development brings together state-of-the-art science and technology with business skill. It is the only one of its kind in Australia.

The aim is for the Park to be fully developed with an ultimate workforce of more than 8,000 employees in the fields of IT, communication and science, making the precinct the main driver of the area’s economic growth over the next decade.

CHaRteR

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The purpose of ATP is to provide an environment for collaborative research, knowledge sharing and development where companies can forge exciting new 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 $54 million has resulted in a new roads and infrastructure along with the completion in 2008 of the 11,000 sqm research facility for National Information and Communications Technology Australia (NICTA) and the Defence, Science & Technology Organisation (DSTO).

In 2009, the new $123 million television studio and media complex was completed. It now houses the Seven Network, its publishing group, Pacific Magazines, and the headquarters for Global Television.

Precinct Management Team

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ATPSL has had a successful year in 2011/2012 with the company recording a net result of $5.102m (a 96% increase on 2010/2011).

The 2011/2012 net result includes a gain on the revaluation of Investment Property, Plant and Equipment of $4.135m.

As reported previously, ATPSL remains financially strong with a resilient business model. This has been built on a strong technology, innovation and scientific research brand that has attracted over 100 like minded businesses as tenants of the Park, which is supplemented by a successful conference and events business. ATPSL has also invested wisely in its asset base that has enhanced its campus style setting in a unique heritage environment. This capital expenditure has also allowed ATPSL to improve its performance on its asset base. ATPSL continues to build a strong foundation on this business model as the basis of our future priorities.

ATPSL is however anticipating that the current economic circumstances will lead to a more challenging business environment over the coming year.

In achieving its financial result for this year, the Company’s precinct management revenue increased 12% to $21.9m as a result of a gain on the revaluation of Investment Property of $4.069m and strong conference centre

FRoM tHe CHaiRMan anD ManaGinG DiReCtoR

performance with revenue increasing by $1.392m (30.5%) In addition the ATPSL has maintained a low low vacancy factor of 0.5%, low tenant turnover, increased rental per square metre rates and received stable revenues from the car parking facilities. The low vacancy factor continued to compare very favourably to the City fringe catchment area.

ATPSL also continues to meet its obligations under the Company’s Constitution through the engagement of high technology-based enterprises and the Park continues to be home for some of Australia’s most innovative and forward looking companies. New companies include Health Language Laboratories, Conference Creators, Carbon Trading International, Dejan SEO and Alternative Recruitment, all of whom have made a positive contribution toward fostering a vibrant innovative and technology based community.

In a very competitive environment the Conference Centre continues to provide excellence in service and providing an optimal client experience. Revenue for this part of the Company’s business grew strongly with an increase of 30.5% in 11/12. ATP hosted numerous high quality events at the Park throughout the year including; Swimmer of the Year Awards, Holden Media Launch, 70th ASA National Scientific Congress Dinner, Optus Kick Off Event and the QANTAS Safety Conference. Again, in

We are pleased to present the 12th Annual Report for Australian Technology Park Sydney Ltd (ATPSL).

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AUSTRALIAN TECHNOLOGY PARK 2011:12 ANNUAL REPORT

accordance with ATPSL’s Constitution,

profits earned by the conference

centre business are returned to the

company to help it meet its objectives.

ATPSL conitunued to implement its

Sustainability Strategy, which has

already resulted in significant savings

for the operations of the Company

and Park more broadly. A key part of

this strategy was the establishment

of 61kW] photovoltaic capability

on the NICTA Building at ATP. This

project has substantially improved

ATP’s environmental performance

and demonstrates our commitment

to innovations and technology that

lead to sustainable outcomes.

In further support of the Company’s obligations under its Constitution, ATPSL’s $3.57million capital investment at the ATP throughout the year has resulted in a significant uplift in the presentation and feel of the Park. ATPSL has continued to invest in its conference and event facilities throughout the year with improvements in its display and technology services. ATPSL also commenced a major investment in the wayfinding signage at the Park which wil be completed early in the 2012/2013 year. This will have a very positive impact on the amenity for the Park.

ATPSL continued to great success with the award winning the Eveleigh Markets. Now a highly valued weekly

Dr Col Gellatly AO Chairperson ATPSL

Roy Wakelin-King AM Managing Director ATPSL

event in the Redfern Waterloo area, the markets continue to provide outstanding fresh produce for the local and wider community. The Eveleigh Market complements ATPSL’s Corporate Social Responsibility program which includes its ongoing sponsorship of Souths Cares as well as financial support to Alexandria Park Community School’s “Bridging the gap between the digital and social divide”

In addition, the Koori Job Ready (KJR) training and employment program originally an initiative of the Redfern- Waterloo Authority now sits under the ATPSL umbrella further strengthening ATPSL’s support for community programs. KJR’s ongoing success in moving Aboriginal people into employment is evidenced by the large number of Aboriginal people who graduated from the construction, hospitality and rail training courses as well as the 110 Aboriginal employment opportunities filled throughout 2011/12. KJR’s partnership with Voyages Resort at Uluru has resulted in 25% of the resorts Aboriginal workforce currently being provided by KJR. KJR has also formed a partnership with the National Centre of Indigenous Excellence to offer a training and employment program for Aboriginal people in Information Technology .

Finally, we would like to extend our appreciation to the tenants and our conference centre customers for their commitment and ongoing support of the ATP.

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Dr Col Gellatly AO B Ag Ec 9 (Hons) UNE, M Comm (Hons) UNSW, PhD NC State, FIPAA, Chairman

Dr. Col Gellatly AO is the current Chairperson of the Redfern-Waterloo Authority and a former Director-General of the Premier’s Department. He has held a number of senior management positions within the NSW public service and is also Chair of Pillar Corporation, a member of the Board of State Water Corporation, a member of the UNE Council, member of the Board of the NSW Rugby League and an Administrator for Wollongong City Council. Dr. Gellatly has a degree in Agricultural Economics from the UNE, a Master of Commerce from UNSW and a PhD from North Carolina State University.

atPsl BoaRD MeMBeRs

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Mike Collins FRICS

Mike Collins is a Sydney property practitioner. He has been involved in property economics, real estate valuation, property consultancy and asset management for over 35 years, and is professionally qualified in property economics and valuation. He runs his own property advisory company based in the Sydney CBD. Mr Collins is the Chairman of the Sydney Harbour Foreshore Authority and the Barangaroo Delivery Authority. He is also Chairman of the NSW Government’s Land and Housing Supply Coordination Task Force. He is a former Chairman of the Heritage Council of NSW and a former National and NSW President of the Australian Property Institute.

Richard Johnson MBE M Phil (UCL) B.Arch Hons 1 (UNSW) FRAIA

Richard Johnson is an award winning architect, a Visiting Professor of Architecture at the UNSW and a Director of Johnson Pilton Walker Architects. He is also a Fellow of the Australian Institute of Architects, an Associate of the Japan Institute of Architects, and a Member of the Design Institute of Australia. He also serves on the Board of the Australian Architects Association. Mr Johnson has a Bachelor of Architecture from the UNSW and a Master 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.


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Roy Wakelin-King AM BPS (UNE) GDP Bus (UTS) Managing Director

Roy Wakelin-King AM was appointed the Managing Director of ATPSL on 16 February 2009. Prior to this, Mr Wakelin-King 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. 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.

Disclosures:The ATPSL has no related party

disclosures to declare.

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

Lucy is a businesswoman, company director and independent member of the Sydney Metropolitan Development Authority. For many years she worked as a solicitor and as an investment banker. She is Deputy Chair of the Committee for Sydney and is currently on the Board of the Australian Technology Park. In June 2010 she was appointed to the Cities Expert Panel which reports to the Council of Australian Government (COAG) on strategic metropolitan planning issues. Lucy served on the Council of the City of Sydney from 1999–2004 including as Deputy Lord Mayor (1999-2003) and Sydney’s first female Lord Mayor (2003-2004).

John Mulally BA LLB (Hons)

John Mulally has over 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 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 and on major infrastructure and renewable energy projects in China and Africa. His role in these projects dealt with the funding structure, legal requirements and integration of the commercial with the legal outcomes required to achieve project development. He is currently acting for Western Gulf Advisory AG of Switzerland which is a major funder of and an investor in Australian projects.

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CoRPoRate GoVeRnanCe

As of 1 January 2012, ownership of the Australian Technology Park (ATP) was transferred to the SMDA as part of the continued focus to encourage the urban renewal of the Redfern-Waterloo area.

The ATPSL Board of Directors is responsible for the corporate governance of ATPSL including setting the strategic direction, establishing goals for management and monitoring the achievement of these goals.

The Board meets regularly to consider the progress of ATPSL with input from senior management relating to strategic direction and performance, while major reviews are held periodically throughout the year.

Australian Technology Park Sydney Ltd (ATPSL) is a wholly-owned subsidiary of the Sydney Metropolitan Development Authority (SMDA).

- reviewing the investigation of any breaches of conduct and professional ethics;

- identifying major risks to which ATPSL is exposed and verifying that the internal control systems are adequate and functioning effectively; and

- providing the Board with assurance that internal controls relating to fraud, security, legislative compliance and code of conduct issues are functioning effectively.

atPsl BUsiness Plan

The ATPSL Business Plan establishes financial performance targets for the organisation based on forecast financial returns.

ATPSL’s actual result for 2011-12 is a profit of $5.102m against a budgeted profit of $2.535M. The company recorded a surplus profit of $2.567m ahead of budget. The Investment Property balance at year ended 30 June 2012 moved from 2011: $65.218m to 2012: $69.287 (a nett movement of $4.069m).

ATPSL has continued to grow under the ownership of the SMDA while consistent consolidation and restructuring within the organisation continues to deliver significant profits and positive cash flows.

FinanCial RePoRtinG anD inteRnal ContRols

ATPSL’s auditing activities are overseen by an Audit & Risk Management Committee, which is a sub-committee of the Board. This Committee assesses the integrity of ATPSL management and the adequacy and appropriateness of internal controls and systems.

Attending ATPSL Audit & Risk Management Committee meetings are the Managing Director of ATPSL, the NSW Audit Office and the company’s internal auditor.

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 management’s tracking and implementation of audit recommendations and actions;


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These values and principles are expected from all ATPSL employees - including its Executive Managers, permanent and temporary staff, consultants and contractors. A copy of the Staff Code of Conduct is also provided to new employees.

Through its own work, ATPSL is committed to managing the environment by balancing the demands of heritage conservation, commercial activation, community expectation and cultural diversity.

// ATPSL’s actual result for 2011-12 is a net result of $5.102m against a budgeted profit of $2.535M //

The focus of the Environmental Management Policy is on a ‘beyond compliance’ culture that embraces a performance-driven objective management program delivering increased stakeholder value. Success will be demonstrated by cultural acceptance of implementing environmental management as a specific consideration that is acknowledged within all business processes and fully understood by all staff as part of their responsibilities.

ATPSL aims to achieve Place Management Leadership in the management of its environment, and its support of ecologically sustainable development. This reflects the vision of creating a safe and dynamic place to work by providing living precincts and rewarding partnerships.

WoRK HealtH anD saFetY

ATPSL continues to uphold the highest standards of Work Health and Safety (WHS) ensuring the wellbeing of tenants, visitors to the Park, suppliers, contractors, staff and onsite workers.

Central to the organisation’s WHS management in 2011/12 was the completion of the Corporate WHS Plan and site risk assessments, resulting in 61 corrective actions initiated to eliminate or minimise workplace hazards. In addition a number of upgrades were undertaken to improve site safety and staff training was completed to increase WHS awareness among staff, contractors and clients.

Significant WHS outcomes in 2011/12 include the:

- upgrade of the Locomotive Workshop building façade;

- upgrade of the Biomedical Building Fire Alarm Panel;

- upgrade of the Locomotive Building Fire Alarm Panel

- management of the fire engineered solution for the Locomotive Workshops;

- completion of annual site risk assessments for electrical, mechanical, fire, hydraulic

stanDaRDs oF BeHaVioUR anD enViRonMental ManaGeMent PoliCY

ATPSL has its own Staff Code of Conduct and Environmental Management policies both of which were developed in accordance with the principles of ethical decision-making and the public sector values of respect for the law, system of Government and the community and its people; along with integrity, diligence, economy and efficiency, and accountability.

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// ATPSL has continued to grow under the ownership of the SMDA while consistent consolidation and restructuring within the organisation continues to deliver significant profits and positive cash flows //

- improving pedestrian access and safety in the Locomotive Street shared zone;

- workplace Influenza vaccination program for ATPSL staff;

- workplace ergonomic assessments conducted for ATPSL staff;

- Fire Warden/Fire Safety, First Aid, Dealing with Difficult Customers, Contractor Management, Risk Management, Health & Safety Legislative Changes, Unacceptable Behaviour Policy and Grievance Policy;

- implementation of the ATPSL Environmental Management Plan including ground water testing, air quality assessments and site capping assessment.

To assist with improvements in policy and procedures and management, system development activities undertaken during 2011/12 included the:

- review of the ATPSL WHS Policy, review of Corrective Action Processes and the development of a Business Continuity Management Policy;

- development of the WHS Management System to integrate ATP Environmental Management Plans and to integrate the operations of the Koori Job Ready Program;

- review of the WHS Management System to ensure compliance with the new Work Health and Safety Act 2011;

- review of WHS Work Permits for confined spaces, working at heights, hot works, penetrations, excavations, and electrical service isolation;

- review and upgrade of the WHS Management System website;

- review of the of event management checklist;

- review of the contractor management checklist;

- completion of two external audits and corrective actions; and

- review and updating of the Contractor Handbook.


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PRoCUReMent sYsteMs anD eFFiCienCies

The ATPSL Procurement Policy was developed to ensure all work is allocated equitably and in respect of the principles and guidelines as required by Government and company policy. ATPSL has a standard method of procuring goods, services and work that is consistent across the organisation, with risks adequately assessed and managed, and duplication of effort and research avoided. Our suppliers understand what is expected of them and are required to deliver in accordance with those expectations. All procurement is performed in accordance with probity policies.

Key principles underpinning the Policy are:

- value for money - as in benefits achieved compared to whole-of-life costs;

- efficiency and effectiveness;

- probity and equity; and

- effective competition.

PRiVaCY ManaGeMent PoliCY

ATPSL applies a Privacy Management Plan to its operations to meet the requirements of the Privacy and Personal Information Protection Act 1998.

ATPSL collects and maintains a limited amount of personal information relating to its tenants and, to a lesser extent, its service providers, while staff are required to familiarise themselves with the Policy and integrate it into the management of their own work practices.

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.

// ATPSL has continued to grow under the ownership of the SMDA while consistent consolidation and restructuring within the organisation continues to deliver significant profits and positive cash flows //

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e-nose PtY ltD

When Graham Bell first came to ATP in 1995 to work for a CSIRO spin-off company commercialising a novel form of freeze dryer, the railway building that housed his office was still in its original dirty and dusty state. Yet, despite the chaos that resulted when renovations began to build the Park as we know it today, Bell remembers — that even then —the precinct had an air of excitement not matched in many other business environments.

“There was a genuine desire on the part of early management to attract research activities onto the site. And there was an opportunity for people like me to be involved in something new and exciting - the first national technology park,” Bell says.

Today as the head of E-Nose Pty Ltd, a spin-off company from the Centre for Chemosensory Research at the University of New South Wales, Bell continues to be excited by the unique environment created at ATP.

“This precinct provides a fabulous environment for small and medium companies, particularly those that have emerged from academic settings, like E-Nose. It is truly a growing ground for entrepreneurs and people wanting to “have a go”. The precinct has a special charm that radiates from the warmth of new things rising out of the ashes of bygone technology,” he says.

innoVation

For E-Nose, this thriving environment of commercialisation and opportunity is exactly the drive Bell is looking for. E-Nose was established to commercialise inventions for sniffing complex mixtures of airborne chemicals and recognising what these mixtures smell of to humans. The company is currently pursing three areas of application - security (with spray paint sniffers for detecting graffiti vandalism in action), air pollution monitoring (for factory emissions) and medical diagnostics. An ultimate aim of the company is to develop a non-invasive diagnosis for conditions such as lung cancer and diabetes.

With research projects underway with university collaborators and many business opportunities, ATP’s supportive and dynamic research-led environment continues to hold appeal for Bell.

Australian Technology Park is one of Australia’s most successful hubs for technology and business growth and commercialisation. Fostering a supportive and dynamic environment for innovation, collaboration and advancement, the Park attracts emerging companies and entrepreneurs in the fields of information technology, communications, media, agriculture and science.

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Graham Belle Ceo e-nose ltd

// This precinct provides a fabulous environment

for small and medium companies, particularly

those that have emerged from academic settings//

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1414

Health Language Laboratories (HLL) is an innovative software company that specialises in language processing for health and the design of clinical information management systems (CIMS). Its expertise lies in natural language processing (NLP) of clinical texts, clinical data analytics, and software engineering of clinical information systems.

The company is one of ATP’s newest tenants, attracted to the precinct for its knowledge-sharing and collaborative approach. Now housed in the IBC building, HLL moved from premises in Broadway to ATP in mid 2012, after looking at several other options.

“We came to ATP because of the chance to be in a technology precinct that I hope will boost our image,” says Maryellen Galbally, CEO Director of HLL.

“I believe the unique environment at ATP has the potential to give us many opportunities to meet and work with companies that are in the same stage of development. I’m looking forward to sharing experiences and advice on how to grow our business further.”

HLL is entering an important phase in its business development. Trials of HLL’s two technologies are nearing completion and the company is now facing the challenge of fully commercialising its products. HLL’s product TumourTExtract Pipeline analyses cancer reports in a radiology information system and sends them to the cancer registry where further components extract a range of content required for population-based analysis of cancer distributions and stages. Trials with radiology services and one cancer registry show excellent accuracy of the system.

The design of innovative clinical information systems (iCIMs) is a difficult process in terms of providing exactly what is needed for the changing dynamic of the clinical domain. HLL’s iCIMS allows the clinical team to design their own system so that it matches their needs precisely. Testing in local hospitals indicates that HLL’s systems are 40% faster for clinical staff to use and have the added advantage that they can be changed in near real-time.

“Both our technologies have been proven to make significant productivity improvements for the organisations in which they have been tested. The task in front of us now is to bring these innovations to market as mature industrial products,” says Professor Jon Patrick, R&D Director.

HealtH lanGUaGe laBoRatoRies

// We came to ATP because of the chance to be in a technology precinct that I hope will boost our image // Jon Patrick R&D Director , Health language laboratories


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ATPSL is committed to preserving the history of the Park and its many heritage-listed assets through preservation, maintenance and sustainability practices that reduce environmental impact and promote the rich history of the site.

The ATP site is heritage listed and includes three showcase heritage buildings: the Locomotive Workshops, the National Innovation Centre (formerly called the New Locomotive Workshop) and the International Business Centre (in the former Works Manager’s Office). In addition, there is a large collection of historic industrial machinery from the era of steam locomotion.

To assist in preserving these historic assets, ATPSL works closely with specialist heritage consultants and enthusiasts to ensure all 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 Conservation Management Plan.

HeRitaGe asset ManaGeMent stRateGY

The original Heritage Asset Management Strategy (HAMS) was compiled in October 2008 in compliance 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 compiled.

The HAMS was updated in 2010 and is scheduled to be updated again by 30 June 2013, together the Section 170 Register.

The HAMS sets out a range of ongoing heritage management responsibilities as well as specific projects required to enhance the site’s heritage values and ensure they are appropriately managed into the future.

HeRitaGe anD HistoRY

ConseRVation ManaGeMent Plans

Work has been underway to develop and formalise Conservation Management Plans (CMPs) for the Locomotive Workshops and ATP site as a whole. These will help to focus ATPSL initiatives and strategies to promote conservation management and best practice throughout the precinct.

In the past year, a draft CMP was prepared for the ATP site in accordance with the NSW Heritage Office guidelines and the principles of the Burra Charter. The draft Plan was exhibited in June and July 2012 to gather community feedback, with a public information session held in June. The briefing session provided the opportunity for positive discussion of the heritage management issues at ATPSL and the draft Plan. Submissions received during the public exhibition phase are under review and revisions will be made to the draft Plan as required. Following Board approval, ATPSL hopes to seek formal approval of the CMP from the Heritage Council during 2012/13.

Australian Technology Park (ATP) has a long and rich cultural heritage that continues to be celebrated today. Situated on the former site of the Eveleigh Railway Yards in what was once Australia’s largest industrial complex.

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// ATPSL plans to continue to engage this group of community-minded individuals to assist in ensuring the area is preserved and presented in the best possible way for many years to come //

Considerable work was undertaken in the past year to establish a dedicated and committed volunteer workforce to assist with promoting and maintaining the Park’s heritage. Following a recruitment drive in early 2012, ATPSL established a team of four volunteers comprising one customer service volunteer and three conservations workers.

For the six months to 30 June 2012, the volunteers accrued a total contribution of 245 hours of service. This included running six heritage tours for schools, Probus clubs and community walking groups. In addition, volunteers completed refurbishment work on old machinery and other assets displayed throughout the Park and in the Locomotive Workshop building.

ATPSL is grateful for the efforts and dedication of Richard Butcher, who runs the tours. Richard was a previous employee at the locomotive workshop. Thank you also to conservation work volunteers Julia Martin, Col Tooher and Julian Bartlett.

ATPSL plans to continue to engage this group of community-minded individuals to assist in ensuring the area is preserved and presented in the best possible way for many years to come. In the coming year, it is anticipated that the volunteer conservation workers will be called upon to assist in restoration of heritage machinery that is due to be relocated from storage in North Eveleigh.

HeRitaGe VolUnteeR WoRKFoRCe

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sUstainaBilitYThe earliest inhabitants of the ATP site were the Cadigal people. Out of a deep respect for the land and what it could yield, they maintained the site for over 40,000 years ensuring environmental balance and sustainability.

Today, that challenge has been passed to ATPSL, as custodians of the site. In the wake of over a century of intensive industrial use, ATPSL is reviving a commitment to minimising the environmental impact of the ATP site on the wider community.

In recognition of this commitment, ATPSL has a dedicated Sustainability business unit under its Property Services Division. The organisation has actively engaged with tenants, contractors and suppliers

to encourage them to commit to a Sustainability Code of Practice. The ATP Innovation and Sustainability Committee met quarterly during 2011/2012.

Central to ATPSL’s sustainability vision is the view that ‘the greenest building is one that already exists’. ATPSL believes that by ensuring existing buildings become energy efficient the huge amounts of emodied energy will be preserved. Preserving buildings conserves this embodied energy and is a sustainable solution for the stewardship of environmental resources particularly those that are already used. It is significantly minimising its overall environmental impact by avoiding resource-intense rebuilding activities.

2012 aCHieVeMents

Guided by the Sustainability Strategy, consideration of sustainability practices and the environmental impacts of activities underpins all ATPSL’s business decisions, with many significant outcomes achieved in the past year.

With the exception of waste to landfill, all sustainability targets were surpassed, delivering significant bottom line benefits across the organisation.

- An Optergy utilities management ‘dashboard’ was commissioned to provide visibility of real-time and historic analysis of utilities consumption in the Locomotive Workshop building.

- A 61kW solar power generating facility on top of the NICTA Building was commissioned in October 2011. The system deploys high efficiency single crystal photovoltaic technology and is generating approximately 90,000kWh per year or the equivalent amount of energy that would power 12 average households. Surplus electricity is now fed back into the public grid at low use times such as weekends and public holidays.

- ATPSL engaged an accredited auditor to conduct an energy efficiency audit on the NICTA building using the National Australian Built Environment

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AUSTRALIAN TECHNOLOGY PARK 2011:12 ANNUAL REPORT// Central to

ATPSL’s sustainability vision is the view that ‘the greenest building is one that already exists’ //

In May 2011, the ATPPML Board endorsed the company’s Sustainability Strategy together with resource efficiency and waste management goals for 2012 and 2020. In 2011/12 good progress was made with achieving the targets and ATPSL is currently tracking ahead in most areas.

While acknowledging that the summer of 2011/12 was cooler and wetter than normal, ATPSL’s energy and water efficiency initiatives have been the primary drivers for progress against targets

oUR sUstainaBilitY PeRFoManCe / taRGets 19

sUstainaBilitY ReDUCtion taRGets

2012 Target 2020 Target Reduction achieved by 30 June 2012 compared with 2010/11(%)

eleCtRiCitY

15%

30%

34% 40%

30%

15%

WateR

Rating System (NABERS). This is a performance-based system that rates a commercial office, hotel or residential building on the basis of its measured operational impacts on the environment. The NICTA building achieved a NABERS rating of 5 stars, well above the average for most buildings in Australia.

- In further recognition of ATPSL’s good sustainability record, the organisation received Bronze Member status in the Sustainability Advantage Program run by the NSW Department of Environment & Heritage.

- An e-Waste initiative providing a free pick-up service of redundant computers, keyboards, printers, mobile phones and batteries for environmentally responsible disposal was implemented and, to date, has been popular with tenants. Total e-Waste collected amounted to 900kgs.

FUtURe DiReCtions

In the coming year, ATPSL will continue to focus on environmentally responsible initiatives to assist in reaching the targets outlined in the Sustainability Strategy. Particular focus will be given to identifying cost effective measures to reduce peak energy loads, and finding innovative solutions to the challenge of minimising waste to landfill. Gas

65%

30%

15%

Waste to lanDFill

26%50%

30%

CoMMUnitY20

ATPSL is committed to maintaining, strengthening and nurturing relationships with its local community, which includes the area’s inner city residents and the Park’s thriving business partners. In addition to hosting community events such as the highly successful Eveleigh Markets, the organisation is an active community member through involvement in a range of initiatives to support the local youth and indigenous communities.

eVeleiGH MaRKet

ATPSL’s Eveleigh Market is a well-established and recognised brand in the local community, operating two traditional-style all weather markets under the heritage-listed Blacksmiths Workshop.

Every Saturday farmers and artisan food producers from all over NSW come to sell their fresh produce and products at the Farmers’ Market, while on the first Sunday of each month local independent artists and designers showcase their designs and wares at the Artisans’ Market.

In addition, Eveleigh Market supports a variety of community projects and charities including Oz Harvest, which operates a monthly community stall at the Farmers’ Market, and the 2012 CEO’s Sleepout, which was held in the Blacksmiths’ Workshop.

Eveleigh Farmers’ Market has been embraced as a place for local Sydneysiders to connect with food and their local community every Saturday morning. Since its inception, the Market has grown from strength to strength, with an average customer attendance in 2011/12 of 3,700 people and over 70 stallholders each week. This is a 6% increase in customer attendance, compared to the previous financial year.

This year, the Market enjoyed wider recognition by Sydney chefs and foodies in the greater Sydney community as well as comprehensive coverage in a broad cross-section of local and international media.

Two of Sydney’s highly acclaimed chefs - Kylie Kwong of Billy Kwong and Alex Herbert formerly of Bird Cow Fish - can be seen working at their stalls most Saturdays.

Eveleigh Artisan’s Market is also held in the heritage Blacksmiths’ Workshop, offering an inspiring venue to showcase the creative talent of independent artists and designers. In 2011/12, this monthly market recorded average monthly customer attendance of 2,000, an increase of 26% on the previous year. There was an average of 76 stalls operating each month.

aBoUt tHe MaRKets


21

KooRi JoB ReaDY

Since July 2011, ATPSL has proudly sponsored 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 Redfern-Waterloo Authority (now disbanded), but it now sits under the ATPSL umbrella.

ATPSL’s support of Koori Job Ready is part of the organisation’s strong commitment to community development, both locally and Sydney-wide. ATPSL recognises that Koori Job Ready has benefits for both the Aboriginal community and the construction and catering industries, as graduates are equipped with the immediate skills they need to work.

In 2011/12, ATPSL helped Koori Job Ready achieve the following significant outcomes:

- $363,000 contract awarded by Department of Education, Employment and Workplace Relations (DEEWR) under the Indigenous Employment Program (IEP) to recruit, train, place and mentor Aboriginal people.

- 41 students graduated from construction training courses and 52 students graduated with Certificate II in Hospitality Operations.

- A new partnership was formed with the National Centre of Indigenous Excellence (NCIE) to offer the first Koori Job Ready Information Technology training course. Two students graduated and have found employment.

- Koori Job Ready partnered with John Holland to offer Rail Maintenance training to 29 students, and the program brokered 86 positions for Aboriginal people in the construction industry on building

sites across the Sydney area.

- Koori Job Ready’s existing relationship with Voyages Resort Uluru was further enhanced with the program supplying 25% of the resort’s new Aboriginal recruits.

- A cultural awareness program was developed for school children and community groups.

- Koori Job Ready undertook community construction projects with students in Aboriginal communities in Redfern and La Perouse. These projects provide practical work experience for the students.

ATPSL is committed to supporting Koori Job Ready and making more opportunities available to the Aboriginal community. In the coming year, ATPSL support will assist with the following initiatives:

Finalisation of a new partnership with Lend Lease to develop an Aboriginal Employment Plan for Barangaroo which will see Koori Job Ready broker hundreds of employment opportunities for Aboriginal people on the site. A similar Aboriginal Employment Program is also being developed with Baulderstone for the Barangaroo Headline Park, with an estimated 70 employment opportunities expected to be created for Aboriginal workers.

Consolidation of Koori Job Ready’s identity through the development of its own brand and website.

- Development of a partnership with the University of Technology to create hundreds of employment opportunities for Aboriginal people on the redevelopment projects involved in the campus renewal program.

22

soCial MeDia

ATPSL has developed an effective social media management strategy and policy to help build a positive online presence.

The primary objective of the Strategy is to support and promote two pillars of ATPSL’s positioning - Innovation and Community. It includes many different forms of social media, including internet forums, weblogs, social networking, micro blogging, wikis, podcasts, photographs or pictures, videos, ratings and social bookmarking.

sUPPoRtinG otHeR oRGanisations

Alexandria Park Public School

Australian Technology Park Sydney Limited (ATPSL) has supported the ‘Bridging the gap between digital and social divide’ initiative by donating $15,000 to Alexandria Park Community School, helping it become one of the first public schools in the state to provide every one of its 370 students with a computer.

ATPSL is proud to support such an important program and is committed to promoting technology and education in the local community.


23

ATP’s Open Day was held on 25 February 2012 with an estimated 3,500 people attending. The purpose of the event was to encourage closer community engagement and invite the general public to visit the Park and learn more about its history and what it has to offer today.

ATP’s heritage played a significant part in the day’s activities, with highlights including tours of the Blacksmith Workshop, a Railway Film Festival and traditional blacksmith demonstrations conducted by ATP tenant, Wrought Art Works. Other activities on offer included tours of the Transport Management Centre as well as opportunities to meet players from Souths Rabbitohs.

For tenants, the day provided the opportunity to showcase their business and innovation to the public through stalls and forums. Expert speakers presented on topics including sustainable agriculture and energy saving tips for the home and business.

In recognition of the day’s huge success, the event will be held bi-annually with the next Open Day planned for February 2014.

atP oPen DaY

// ATP’s Open Day was held on 25 February 2012 with an estimated 3,500 people attending //

2424

Souths Cares

ATPSL is a proud supporter of the Rabbitohs Souths Cares Program, the charitable arm of the South Sydney Football club. Souths Cares supports programs that encourage youth to achieve their goals through education, training and employment in the South Sydney and Coffs Harbour regions.

Since signing the sponsorship agreement in 2009, ATPSL’s partnership with South Cares has continued to grow with several new initiatives introduced and supported during 20110/12.

U17s Redfern 9s

In May 2012, ATP, South Sydney Rabbitohs and the NSW Rugby League again joined forces to showcase rugby league and the way the game can bring harmony into the community by hosting the U17s ATP Redfern 9s competition at Redfern Park. This was the competition’s second year, with people coming from all over Sydney to enjoy the match.

Former NRL players including Nigel Vagana, Michael Vella and Mark Riddell, who are now NRL One Community Ambassadors, attended the day to support more than 200 junior players competing in heritage-based sides including Indigenous, African, Maori, Samoan, Fijian and Middle Eastern.

Roy Wakelin-King AM, Managing Director of ATPSL, was delighted with the success of the event, saying: “It was great to see so many young culturally diverse people from all over Sydney and NSW come together to promote unity and inclusion, play football and celebrate their heritage. Congratulations to the NSWRL Young Achievers who won a tight grand final against the Mediterranean team and to all the other teams who played some great league throughout the day. We look forward to building on the success of this community initiative next year.”

Teachers Aide Program

ATPSL’s support for the Souths Cares Teachers’ Aide Program for school children has continued. The achievement program, introduced in 2011 to recognise and reward positive behaviour and successful learning outcomes for students, has continued with many positive outcomes.

Focused on numeracy and literacy activities for primary school children, 18 players from the Rabbitohs are involved in the 2012 program and attend weekly sessions at local primary schools.

Further training has been developed to allow one-on-one mentoring and to provide players with greater skills to assist the children.

// ATPSL is a proud supporter of the Rabbitohs Souths Cares Program, the charitable arm of the South Sydney Football club //


25

The Teachers’ Aide Program is assessed on an ongoing basis to ensure relevant outcomes are achieved. Reviews conducted by Regional Directors of the Department of Education and Training have shown strong and positive feedback from school principals, staff, community elders and pupils.

Healthy and Active Lifestyle Program

Supported by ATPSL and with assistance from the Indigenous Allstars and ‘Learn Earn Legend’, Souths Cares has continued its partnership with Life Education to roll out the Healthy and Active Lifestyle Program to all Year 5 and 6 students in the South Sydney catchment area.

This program combines the NRL initiative, ’Eat Well, Play Well, Stay Well’ and two Life Education programs, ‘All Systems Go’ and ‘Think twice’, to offer kids a fun and educational excursion outside of the school environment, where South Sydney players will join in and share their own healthy lifestyle choices with the kids.

There was a growing need amongst the South Sydney corridor of schools after consultation with principals revealed that most schools had discontinued their link with Life Education because of cost and because most parents are not able to afford extracurricular activities on top of sport and in-school commitments.

With the help of ATPSL, the program is now offered to more than 30 primary schools in the South Sydney region.

inDiGenoUs leaDeRsHiP PRoGRaM (sCHool to WoRK tRansition)

Continuing its partnership from 2010/11, ATPSL has maintained support for the Indigenous Leadership Program, which assists Year 11 and 12 Aboriginal and Torres Strait Island pupils to develop their own education and employment outcomes. The program focuses on self-esteem building through a greater understanding of culture. The sessions include employability skills such as resume building, goal setting, interview technique, grooming and etiquette, leading to employment outcomes.

The uniqueness of this program is that it engages corporate partners, community groups and NRL players to become mentors. This mentoring phase is a key component of the program that continues well beyond the school gate.

ATPSL has continued to throw its support behind a branding initiative to promote Redfern and the surrounding suburbs of Waterloo, Darlington and Eveleigh as a welcoming and vibrant place for business and recreation.

An initiative led by the Roll Up Redfern Group, comprising Sydney Metropolitan Development Authority, City of Sydney, South Sydney Business Chamber, South Sydney Rabbitohs and REDWatch, the Redfern Brand was launched in February 2011 to help change the perceptions of Redfern and encourage more businesses and visitors to the area.

The new logo - in the shape of a smile - captures the welcoming spirit of the area and is designed to highlight the positive developments in and around Redfern.

In addition to hanging Redfern banners throughout the Park, ATPSL has also supported the Redfern Brand promotion in 2011/12 through active involvement in campaigns including through a community stall at the Eveleigh Farmers Market.

As a significant member of the community, ATPSL is proud to be involved in helping promote Redfern to the wider community.

ReDFeRn BRanD

26

KeY BUsiness oBJeCtiVes

- Customers & Stakeholders

- Invest in Company’s objectives

- Provide high quality service

- Effectively communicate with stakeholders

- Liaise with the community

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

FinanCial

- Consolidate financial profitability

- Increase revenue returns

- Implement savings initiatives

- Examine capital investment options

- Improve asset utilisation

Australian Technology Park Sydney Limited (ATPSL) is a wholly-owned subsidiary of the Sydney Metropolitan Development Authority

oPeRational stRUCtURe anD PeRFoRManCe

exeCUtiVe ManaGeMent

PRoPeRtY seRViCes

eVeleiGH MaRKet

FinanCe & CoRPoRate seRViCes

ConFeRenCe & exHiBition

CentRe

atPsl oPeRational stRUCtURe

KooRi JoB ReaDY

26

27


27

atPsl YeaR to YeaR CoMPaRison

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

2007-08 2008-09 2009-10 2010-11 2011-12

30,000,000

Total Revenue

Property Revenue

Conference Centre Revenue

Operating Costs

Employee Related Expenses

Cost of Sales

Profit before Non Operating costs

Capital Spend

KeY notes

1. The profit before non operating costs trend is lower during FY2010 -FY2012 in comparison to FY2008- FY2009 this is mainly due to increase in depreciation costs resulting from capital spend associated with the NICTA building

2. Conference Centre cost of sales trend is averaging at 47% of Conference Centre revenue. This is consistent with an upward trend in Conference Centre revenue with exception of FY2012 which also includes Cost of Sales associated with the Koori Job Ready functions business.

3. Overall total revenue has trended upwards peaking in FY2012 mainly due to strong performance from Property Services and the Conference Centre parts of the business and the inclusion of Koori Job Ready effective 1 July 2011.

4. Property Services revenue is higher in FY2012 mainly due to increase in gain on revaluation of Investment Property and a low vacancy rate. Overall Propery Services is contributing 79% of the Total Revenue.

5. Conference Centre revenue is higher in FY2012 as a result of new & high yielding events and a focus on remaining competitive in a tight market. Conference Centre has contributed to 21% of Total Revenue.

6. Operating costs are higher in FY2010 - FY2012 as opposed to FY2008-FY2009 primarily due to the addition of the Koori Job Ready Programme and an increase in depreciation costs as a result of capital works undertaken.

7. Capital spend is higher in FY2008 mainly due to expenditure on the construction of the NICTA building.

28

ManaGeMent anD aCHieVeMentsatPsl exeCUtiVe ManaGeMent teaM

- Roy Wakelin-King AM Managing Director

- Chris Saunders General Manager

- Roula Zivlas Director Finance and Corporate Services

- Ruby Chronis Director, Sales & Marketing

- Graham Stevens Director, Property Services

- Kathy Tilbury Acting Executive Manager, Eveleigh Market

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 respect of and in accordance with the following objectives:

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.

ATPSL has continued to grow under the new ownership of the Sydney Metropolitan Development Authority. This was further achieved by the enforcement of strict financial disciplines and implementation of a number of key management initiatives:

- A continual focus on skills alignment throughout core operations;

- Adherence to strict financial disciplines and the continual streamlining of financial and property management systems to meet increasing business demands;

- A sustained occupancy rate greater than 97 per cent

- Further renewed interest in the availability of space generated by current and proposed on-site development;

- Strategic marketing of the Conference & Exhibition facilities to major event producers and suppliers; and

- Strengthening of local and international industry and government alliances through visiting delegations and networking ventures.


2929

Executive Managers

30

PReCinCt ManaGeMent

ATPSL is responsible for the day-to-day management of Australian Technology Park (ATP) for the benefit of its tenants, stakeholders, customers, industry partners and the general community.

Customers include businesses residing at the Park, contractors and suppliers, Conference & Exhibition Centre clients, national and international delegations, study tours, local residents and prospective tenants.

More than 100 organisations employing in excess of 2,000 people currently occupy space within the precinct, which includes the Locomotive Workshops, Biomedical Building, National Innovation Centre (NIC), International Business Centre (IBC), NICTA facility, the Seven Network / Global Television Media Centre and the RTA and Ambulance buildings.

Regarded as a world-class technology and business park, ATPSL finished the 2011/12 year with a vacancy rate of 0.5%.

FinanCe ManaGeMent

Financial Management’s primary focus is to streamline and automate ATPSL’s financial processes to increase the efficiency of the financial operations and sustain ongoing profitability.

Interface builds that automate information transfer from business systems into the SAP Accounting System;

- Development of a new Property Asset Management System to increase the functionality and efficiency of the Property Services business;

- Review, update and adherence of all financial policies and procedures;

- Automation of financial reporting; and

Adherence to financial guidelines.

CoRPoRate seRViCes

ATPSL’s Corporate Services division manages the development and implementation of operational strategies including:

- providing budgeting, financial management, human resources management, information technology, general administration and payroll services;

- providing administrative support for the company and the Board and liaising with other companies and government agencies;

- handling GIPA legislation, ensuring correct corporate governance and satisfying government agency reporting requirements; and

- aim to ensure all documents are tracked to automate document workflow.

With a focus on improving efficiencies across the organisation, a significant achievement this financial year was the consolidation of ATPSL’s payroll from fortnightly, monthly and weekly payrolls into a single fortnightly payroll. This was further streamlined with the implementation of an electronic timesheet system across the organisation.

In 2012/13, ATPSL plans to review its corporate services policies and develop revised procedures. Further, there will be an increased focus on identifying improvements to further improve on existing processes.

PRoPeRtY seRViCes

The Property Services team comprises a group of property specialists responsible for the management of the Park’s property assets and tenants. Their responsibilities include:

- achieving commercial rentals on all tenancies;

- minimising vacancies;

Finance and Corporate Services team


- 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.

In 2011/12, a number of key projects were completed to enhance the site for both tenants and the local community.

Highlights included:

- Installation of glass entry doors to Bay 1 of the Locomotive Workshop

- Installation of new fire alarm panels to the Biomedical Building and Locomotive Workshop

- Refurbishment of amenities on the ground floor of the IBC Building

- Upgrade to way-finding signage throughout the Park

- Implementation of a Heritage Asset Management Plan

- Relocation of the gardener’s compound to create a new landscaped area at the Locomotive Street entrance

New Tenants

New companies include Health Language Laboratories, Conference Creators, Carbon Trading International, Dejan SEO and Alternative Recruitment, all of whom have made a positive contribution toward fostering a vibrant innovative and technology based community.

Upcoming projects for 2012/13 include:

- Replacement of roof skylights in Bays 1-9 of the Locomotive Workshop

- Construction of a Disaster Recovery Room in the Locomotive Workshop

- Installation of a property management system

- Replacement of the air conditioning plant in the Biomedical Building

- Upgrade to bathroom amenities in Bay 4 and replacement or upgrade to airlock doors in Bays 2 and 3 of the Locomotive Workshop to address accessibility issues.

HeRitaGe ManaGeMent

As custodians of the heritage Eveleigh Rail Yards, ATPSL is committed to preserving the cultural history and heritage of ATP. Each year, a number of projects are undertaken to restore or refurbish heritage assets within the Park. This financial year, major projects included:

- repairs to the southern and eastern façade of the Locomotive workshop; and

- refurbishment of Bays 1 and 2 North in the Locomotive Workshop for heritage displays.

ATPSL’s volunteer conservation workers played an important role in these restoration projects.

A number of new projects are planned for the coming year, including:

- refurbishment of the heritage accumulators at the Bay 4 entrance of the Locomotive Workshop;

- major repairs to the western and northern facades of the Locomotive Workshop; and

- creation of a Heritage Interpretation Plan for Bays 1 and 2 of the Locomotive Workshop.

31

Property Services team

32Conference and Event Centre team

inFoRMation, CoMMUniCation anD teCHnoloGY (iCt) ManaGeMent

ATPSL is regarded as a world-class digital precinct. The organisation prides itself on the state-of-the-art and high quality facilities and technology services provided to staff, tenants, customers and visitors to the Park.

In 2011/12, to better manage the needs of the organisation and its growing number of tenants, a new server was procured and implemented to house the new asset management system. Previously there was no spare space on servers to accommodate the new system.

A number of other new systems were implemented to increase efficiencies and productivity across the Park. These included:

- Business Continuity Management Plan, including business continuity planning and development/approval of a Disaster Management Plan;

- Electronic timesheet system; and

- Document Management System (Codafile).

Projects highlighted for the coming year include the procurement and implementation of two additional servers to replace existing equipment. In addition, further development of IT-focused business continuity management practices are planned to increase the integrity of ATPSL’s ICT operations.

ConFeRenCinG anD eVent ManaGeMent

The ATP Conference Centre is an important business unit within ATPSL, delivering a range of gala dinners, awards nights, exhibitions, festivals and other events to Australian and international clients.

The team strives to implement critical initiatives required to achieve ATPSL’s vision by:

- delivering excellence in customer service and client experience;

- positively engaging and supporting onsite stakeholders;

- continuing to illuminate the Park’s heritage; and

- delivering service and profits that assure ATPSL’s success and profitability in the future.

ATPSL continues to build a corporate team culture that respects and values the unique strengths and cultural differences of the Park’s associates, customers and community.

// ATPSL The organisation prides itself on the state-of-the-art and high quality facilities and technology services provided to staff, tenants, customers and visitors to the Park //


Eveleigh Market team

33

This financial year, the Centre’s world-class facilities were further enhanced with the introduction of five smart boards in meeting rooms; refurbishment of the ATP Boardroom; and the addition of a new room within the Conference Centre.

For details about significant events held in the Exhibition Hall and Conference Centre, see page 34.

MaRKetinG

ATPSL’s Marketing team launched a new website in 2011/12. The new layout and style better promotes the organisation’s services and attractions as well as the Park’s unique features and offerings.

The new website has also assisted in building ATPSL’s online presence, promoted through the new social media strategy.

In May 2012, ATPSL exhibited at CeBIT to showcase the organisation’s services and the achievements of tenants. In addition, staff attended a number of interstate conferences and other events to promote ATPSL to the wider business community.

netWoRKinG & CoMMUnitY Relations

Building and maintaining a close community network is fundamental to ATPSL. Each year, community-related projects are undertaken to encourage knowledge sharing, networking and innovation exchange, particularly amongst tenants and the leading innovators and entrepreneurs who choose to work from ATP.

The organisation also strives to strengthen ties with the local community and residents and related business communities.

Community-minded networking initiatives in 2011/12 included the ATP Open Day in February 2012, with 4,500 people attending and implementation of a social media strategy to enhance ATPSL’s online presence and better connect stakeholders to the organisation’s values.

// ATPSL continues to build a corporate team culture that respects and values the unique strengths and cultural differences of the Park’s associates, customers and community //

The Centre’s reputation is built on hosting hi-tech corporate and private events with an industrial heritage edge.

The site’s venues include an auditorium theatre, grand dining room and atrium, multiple breakout areas, exhibition spaces, conference rooms, a theatrette and a large Exhibition Hall.

Regardless of the size or type of event, ATPSL’s Events Team strives for excellence, creativity and versatility.

In 2011/12, the Centre hosted a range of events and functions including one-off special events, multi-day trade shows, festivals, conferences, dinners and exhibitions for new and existing clients including the Australian Trucking Association, Optus, Holden, Lend Lease and Qantas.

ConFeRenCe anD exHiBition CentRe

FUtURe DiReCtions

In the coming year, the Events team will continue strengthening relationship with existing clients and proactively push business development opportunities to secure future events at ATP.

It is expected that the closure of the Sydney Convention and Exhibition Centre will lead to opportunities with new clients and growth in ATPSL’s client database. The team will focus on targeting high yield business with good return.

ATPSL’S world renowned Conference and Exhibition Centre is one of Sydney’s most unique venues, combining rich cultural heritage with innovation and state-of-the-art facilities.

testiMonials

“Thank you to you and the ATP Conference Centre staff for support and provision of services for our recent symposium. The event ran without a hitch and we have received lots of positive feedback about the venue, great location and building, the catering and level of professionalism of all involved.” CSIRO, Liz Stower, 1st May 2012

34


Young talent time auditions

(October 2011)

ATP’s Locomotive Workshops proved to be the perfect setting for auditions for Channel 10’s Young Talent Time in October 2011. The space comfortably hosted around 500 children and parents.

swimmer of the Year awards

(December 2012)

Some 500 swimmers and their sponsors, families and friends descended on ATP in December for the annual Swimmer of the Year Awards.

Holden Media launch (December 2011)

More than 100 of Sydney’s motoring media came together at the Exhibition Centre for the launch of Holden’s electric care, the volt. The large space provided the opportunity for test drives and multiple briefing sessions.

optus Kickoff event (May 2012)

More than 1000 delegates from Optus attended the Optus Kick Off Conference in May 2012.

“ATP Conference Centre - Everything your team did was amazing. The service and customer experience is superior and second to none. I have run many events and never received such great service. Everyone went out of their way to ensure that our events ran smoothly.” Genevieve Aboud, Commstrat, 18th October 2011

We came to you so last minute and I really appreciate your patience with us. Everything ran so smoothly from the very first moment I called through to conference centre and you were so amazing to deal with.

The bride and groom reported back to me that they had an excellent night and loved the venue – it really did look beautiful.” Shine Australia, The Renovators, August 2011

oUtstanDinG eVents oF 2011/12 35

Katoomba Christian Convention Oxygen Christian Leader’s Conference

(August 2011)

More than 2000 Christian leaders from all denominations met in the largest gathering of Christian leaders in Australia’s history at the ATP from Monday 29 - Wednesday 31 August 2011.

Qantas safety Conference

(August 2011)

More than 500 people attended the annual Qantas Safety Conference in the Conference Centre.

asa national scientific Congress Dinner

(September 2011)

In one of the biggest events of the year, 1500 people attended the annual Gala Dinner for the Australian Society of Anaethestists.

australian trucking association (ata) Conference

(October 2011)

The 2011 Paccar and Dealer Technical and Maintenance Conference, presented by the ATA and the Australian Road Transport Suppliers’ Association was attended by 300 people.

DiReCtoRs

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

Dr Colin Gellatly AO Chairman 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 Director-General 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. He is also 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.

THE DIRECTORS OF ATPSL (“THE COMPANY”) PRESENT THEIR REPORT TOGETHER WITH THE FINANCIAL REPORT OF THE COMPANY FOR THE YEAR ENDED 30 JUNE 2012 AND THE AUDITOR’S REPORT THEREON.

DiReCtoR’s RePoRt

36

Roy Wakelin-King AM Managing Director BPS (UNE) GDP Bus (UTS)

Roy Wakelin-King AM was appointed the Managing Director on 16th February 2009. 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.


37

Mr Michael Collins FRICS

Mike Collins is a Sydney property practitioner. He has been involved in property economics, real estate valuation, property consultancy and asset management for over 35 years, and is professionally qualified in property economics and valuation. He runs his own property advisory company based in the Sydney CBD. Mike was a former Chairman of the Heritage Council of NSW and a former National and NSW President of the Australian Property Institute.

Mr John Mulally BA LLB (Hons)

John has almost 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 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)

Lucy Hughes Turnbull AO is a Director of the Board of Melbourne IT, an Australian publicly-listed internet services company with operations in North America, Europe and Asia. She is also a Board Member of ATPSL in Redfern, the Centre for Independent Studies, the Redfern Foundation Limited, the Turnbull Foundation and the Cancer Institute NSW. Lucy was Sydney’s first female Lord Mayor (2003-4) and Deputy Lord Mayor (1999-2003). She served as a Councillor on the City of Sydney from 1999-2004 and chaired many council committees, including the Central Sydney Planning Committee, the Planning, Transport and Development Committee and the Finance and Audit Committees.

CoMPanY seCRetaRY

The Company secretary is Mr Roy Wakelin-King, AM. He has attended all Board Meetings and Audit & Risk Management Committee meetings during the financial year.

MeetinG oF DiReCtoRs

The number of meetings of the Company’s Board of Directors during the year ending 30 June 2012 and the number of meetings attended by each Director is:

Director Board Meeting

A B

Dr Colin Gellatly AO 6 6

Ms Lucy Turnbull AO 4 6

Mr Mike Collins 4 6

Mr John Mulally 1 6

Mr Richard Johnson MBE 4 6

Mr Roy Wakelin-King AM 6 6

Mr John Mulally was on approved leave of absence from 16 January 2011. He resumed service with the Company on 18 April 2012.

The Company’s Audit & Compliance Committee Meetings

For the period July 2011 to June 2012:

Committee Member No. of Meetings

Attended Held

Ms Bonnie Boezman, AO 5 5

Ms Victoria Weeks 5 5

The Company’s Audit & Risk Management Committee Meetings are conducted in accordance with the NSW Government Treasury Policy Paper 09/05.

CoMPanY PaRtiCUlaRs

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

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

PRinCiPal aCtiVitY

The Company operates a scientific and technological research and development park. Spread over 13.5 hectares, the park occupies the site of the heritage listed Eveleigh Railway workshops. The principal activity of the Company during the financial year was to manage the operations of ATPSL in accordance with its Constitution, which includes promoting technology and science through the management of leases to technology and scientific research organisations in accordance with the Company’s selection criteria for the site, the provision of convention and exhibition facilities and the running and management of the Eveleigh Markets.

On 1 July 2011, ATPSL also assumed responsibility for the Aboriginal employment Program, now known as Koori Job Ready (KJR). KJR provides support to the Aboriginal Community through the provision of training and mentoring to create sustained employment outcomes for the community. This includes employment opportunities in the information, communication and technology industry and as such is consistent with the constitution of the company.

On 1 January 2012, ATPSL’s sole member, the Redfern Waterloo Authority ceased operations. In accordance with the Redfern Waterloo Authority Repeal Act, 2011, the ownership of ATSPL was transferred to the Sydney Metropolitan Development Authority (SMDA), who became its sole member. The SMDA is a Board Governed Development Corporation under the Growth Centres (Development Corporation) Act, 1974. The SMDA is responsible for the urban renewal of designated precincts in the Sydney Metropolitan Area in accordance with the Growth Centres (Development Corporation) Act, 1974 and the State Environmental Planning Policy Urban Renewal.

ReVieW anD ResUlt oF oPeRations

The net surplus from ordinary activities for the year amounted to $5.964m compared to prior year (2011: $2.514m).

The Investment Property balance at year ended 30 June 2012 moved from 2011: $65.218m to 2012: $69.287m (a nett movement of $4.069m). This is as a result of a revaluation of Investment Property which includes a transfer of the IBC building from the SMDA (parent) in 2012.

Property, Plant and Equipment increased from 2011: $61.381m to 2012: $65.729m (a nett increase of $4.348m). This increase relates to the transfer of the rights for the Channel 7 car park spots and the Locomotive Workshop from SMDA (parent) to ATPSL in 2012.

ATPSL continues to be cash positive with a cash balance of $27.5m as at 30 June 2012.

ATP has continued to grow under the ownership of RWA and subsequently the SMDA. The consolidation and organisational restructuring efforts in the last three years have continued to deliver an operating surplus and positive cash flows. The Company continues to focus on stringent financial and cost control measures, improved productivity and realignment of skills initiatives.

ATPSL continues to manage its operations within a tight risk control framework which constantly monitors the prevailing economic conditions that could result in reduced revenue for the company.

GeneRal oPeRations

ATPSL has continued to meet its objectives under its constitution throughout the year through the development and promotion of ATP as a technology and scientific research based precinct. Through it policies for identification and selection of tenants who have technology and/or scientific research as their core business, ATPSL has continued to promote an innovative industry based precinct.

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39

Through the prudent investment cost capital, ATPSL has built on the campus environment for ATP, enhancing its reputation as a highly sought after place to conduct scientific research and technology based business.

ATPSL has also continued to show leadership in the area of innovation and sustainability throughout 2011/2012. Through its Innovation and Sustainability Committee, ATPSL has encouraged the ATP precinct to adopt sustainable activities. This has resulted in improved energy consumption, decreased waste to landfill, particularly in the area of e-waste, and encouragement of sustainable transport activities for tenants and visitors to the Park.

ATPSL has also continued with its Corporate Social Responsibility strategy for 2011/2012. The company has continued to support Souths Cares managed and operated the award winning Eveleigh Markets, invested further capital in the preservation and promotion of the ATP’s important heritage and also assumed ownership of the Koori Job Ready Aboriginal Employment program. In additional to these activities, ATPSL held a community wide Open Day to showcase the ATP and its complete range of activities and businesses. This resulted in ATPSL hosting over 3,500 visitors from the community to the Park to join in a celebration of ATP’s achievements and recent developments.

ConFeRenCe anD exHiBition CentRe

Conference Centre revenue increased by $1.392m during the current year as compared to the prior year. This was a direct result of new, repeat business and high yielding events. This increase, which reflects ATPSL’s proactive marketing, and sales operations and the commitment to service delivery by the Conference Centre team, in a unique heritage venue.

The Company continued its sales and marketing focus in targeting major local and national events, which included trade shows, multi-day high yield conferences with an exhibition element, special events, gala dinners, launches entertainment and media events. The Conference Centre team also represented ATPSL at the Asia – Pacific Incentives Meeting Expo (AIME) in Melbourne to showcase the ATPSL Brand and to focus on business opportunities arising from national and international buyers. Sales presentations and familiarisations were conducted to specific target markets and to new and existing clients in showcasing the Conference Centre capabilities. Sales and Marketing continued to build and strengthen its working relationships with clients, suppliers and industry. Major events hosted during the year included Swimmer of the Year Awards, Holden Media Launch, 70th ASA National Scientific Congress Dinner, Optus Kick Off Event and the QANTAS Safety Conference.

PRoPeRtY ManaGeMent anD DeVeloPMent

Over the last year, the Property Services team has made significant efforts in a number of areas to enhance the property, reduce the outgoings and increase the rentals as leases come up for renewal. Today the tenancy mix at the Park is a good balance between large, medium and small information technology and scientific research tenants as well as blue chip and start up companies. The Park welcomed new companies including the Health Language Laboratories, Conference Creators, Carbon Trading International, Dejan SEO and Alternative Recruitment all of whom have made a positive contribution toward fostering a vibrant innovative and technology based community.

The leasing market for the ATPSL has remained relatively stable and experienced overall vacancy rates have decreased from 2011: 6.3% to 2012: 0.5%. These vacancy figures are against the trend experienced in the City Fringe catchment area which has an average vacancy rate of about 10.2%.

In 2011/12 the Investment Property balance increased by a nett movement of $4.069m (from $65.218m to $69.287m).

// Conference Centre revenue increased by $1.392m during the current year as compared to the prior year. This was a direct result of new, repeat business and high yielding events //

eVeleiGH MaRKet

Since the Eveleigh Market inception in 2008, the Eveleigh Farmers’ Market has grown in reputation and has become a popular place for local Sydneysiders to do their weekly shopping or meet friends for breakfast. During the 2011/12 financial year, the Farmers’ Market had 70 stallholders on average per week which reflects increased business, the seasonal breaks of farmers, stallholder turnover and the market’s ongoing commitment to authenticity. The average number of customers who attended the Farmers’ Market increased by more than 3.6% to 3,700 per week.

ATPSL continues to be true to their Market Charter by ensuring that all stallholders are providing seasonal and/or homemade produce that is grown, reared or made by them to be sold direct to the Sydney community.

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. ATPSL is making every effort to ensure that the Markets become sustainable in the longer term.

CaPital exPenDitURe

ATPSL spent $3.57m on capital works programs in 2011/12. Expenditure included:

- Wayfinding signage upgrade;

- Refurbishment of the Locomotive facade;

- ATPSL story boards erected around the park; and,

- Refurbishment of of Bays 1 and 2 North in the Locomotive Workshop.

- Glass entry doors to Bay 1, Locomotive Workshop

- New fire alarm panels to Biomedical Building and Locomotive Workshop

- Refurbishment of amenities to the ground floor of the IBC Building

- Installed an Asset Management System

- Relocated the gardener’s compound and created a new landscaped public domain area at the Locomotive Street entrance

- Refurbished and upgraded technology to ATPSL boardroom

DeBt Position

There is a loan agreement between ATPSL and SMDA (parent), for the construction of the NICTA Building which currently stands at $29.996m (2011: $34.996m). In May 2010, the Board approved commencement of a discretionary debt reduction strategy for the loan facility. A repayment of $5m was made in December 2011.

DiViDenDs

ATPSL is a not for profit entity limited by guarantee in accordance with its Constitution. To this end the Company does not pay dividends and all surplus funds are reinvested in the Company in order for ATPSL to meet its objectives under its Constitution.

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 16 December 2010 the Board of Directors resolved to adopt a new Constitution for ATPSL to replace the Articles and Memorandum of Association of the Company. The Constitution did not materially change the Articles and Memorandum of Association and the Objects of the Company remained substantially unchanged. The Constitution modernised the governance arrangements for the Company by ensuring that it was updated with reference to relevant law and that best practice governance procedures were established accordingly.

40

// ATPSL continues to be cash positive with a cash balance of $27.3m as at 30 June 2012 //


41

Roy Wakelin-King AM Managing Director Company Secretary

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.

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

liKelY DeVeloPMents

The NSW Government has announced the establishment of UrbanGrowth NSW. UrbanGrowth NSW will be established through the merging of the SMDA and Landcom. Whilst the relationship between UrbanGrowth NSW and ATPSL has not yet been finalised at the time of this report, it is likely that the ownership of ATP and ATPSL will be transferred to this new entity.

aUDitoR’s inDePenDenCe DeClaRation UnDeR seCtion 307C oF tHe CORPORATIONS ACT 2001

The auditor’s independence declaration is set out on page 43 and forms part of the Directors’ Report for the year ended 30 June 2012.

DiReCtoRs BeneFits

Since 30 June 2011, 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 2012 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 in accordance with a resolution of the Directors made pursuant to S298(2) of the Corporations Act 2001.

On behalf of the Directors,

ATPSL FinAnciAL STATEMEnTS - 30 JunE 2012

42In accordance with a resolution of the Board of Directors of Australian Technology Park Sydney Limited (‘ÁTPSL’) made pursuant to section 295(5) of the Corporations Act 2001, 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, the Corporations Act 2001 Corporations Regulations and Treasurer’s direction; and

b) give a true and fair view of the company’s financial position as at 30 June 2012 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.

Dr Colin Gellatly AO Roy Wakelin-King AM Chairman Managing Director ATPSL ATPSL

Sydney, dated 2nd October 2012

DiReCtoR’s DeClaRation

43


aUDitoR’s inDePenDenCe DeClaRation


44

inDePenDent aUDitoR’s RePoRt

45

AUSTRALIAN TECHNOLOGY PARK 2011:12 ANNUAL REPORT aUstRalian teCHnoloGY PaRK 2011:12 ANNUAL REPORT


46

* See note 23 for details regarding prior period errors and reclassification.

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

stateMent oF CoMPReHensiVe inCoMeFor the year ended 30 June 2012

Restated

note 2012 2011

$’000 $’000

Expenses excluding losses

Operating expenses

Employee related 3(a) (2,911) (2,164)

Other operating expenses 3(b) (14,878) (13,018)

Depreciation and amortisation 8(a) (2,548) (2,229)

Finance costs 3(c) (3,162) (3,717)

Total expenses excluding losses (23,499) (21,128)

Revenue

Sale of services 4(a) 21,949 19,537

Investment revenue 4(b) 1,541 1,846

Grants 4(c) 600 -

Other income 4(d) 376 919

Gain on revaluation of investment property 4(e) 4,135 1,424

Total revenue 28,601 23,726

Net result 5,102 2,598

Other comprehensive income

Net increase in property, plant and equipment revaluation surplus 14 2,665 -

Total other comprehensive income 2,665 -

Total comprehensive income 7,767 2,598

47


As at 30 June 2012

Restated Restated

1 July

note 2012 *2011 *2010

$’000 $’000 $’000assets

Current assets

Cash and cash equivalents 5 27,323 29,532 32,221

Trade and other receivables 6 651 653 554

Loans receivable 6(a) 470 437 407

Lease incentive asset 9 343 538 540

Total current assets 28,787 31,160 33,722

Non-current assets

Loans receivable 6(a) 2,873 3,343 3,780

Investment property 7 69,287 65,218 63,878

Property, plant and equipment 8 65,457 61,793 60,820

Lease incentive asset 9 1,463 1,806 2,266

Total non-current assets 139,080 132,160 130,744

Total assets 167,867 163,320 164,466

liaBilities

Current liabilities

Trade and other payables 10 5,594 4,242 4,349

Borrowings 13 470 437 407

Provisions 11 & 12 249 717 266

Total current liabilities 6,313 5,396 5,022

Non-current liabilities

Borrowings 13 38,832 43,987 49,126

Provisions 11 76 55 31

Other - operating lease payables 17(b) 16,957 15,960 14,963

Total non-current liabilities 55,865 60,002 64,120

Total liabilities 62,178 65,398 69,142

NET ASSETS 105,689 97,922 95,324

Equity

Reserves 14 (a) 2,665 - -

Accumulated funds 14 (b) 103,024 97,922 95,324

Contributed equity - - -

TOTAL EQUITY 105,689 97,922 95,324

* See note 23 for details regarding prior period errors and reclassification.


stateMent oF FinanCial Position


48

Attributable to owners of Australian Technology Park Sydney Limited

Contributed equity

Asset revaluation

reserve Accumulated funds Total

$’000 $’000 $’000 $’000

Balance at 1 July 2010 - - 43,912 43,912

Correction of prior period errors - - 51,412 51,412

Balance as restated - - 95,324 95,324

Net result - - 2,598 2,598

Other comprehensive income - - - -

Total comprehensive income - - 2,598 2,598

Transactions with owners - - - -

Balance at 30 June 2011 - - 97,922 97,922

Balance at 1 July 2011 - - 45,916 45,916

Correction of prior period errors - - 52,006 52,006

Balance as restated - - 97,922 97,922

Net result - - 5,102 5,102

Other comprehensive income - 2,665 - 2,665

Total comprehensive income - 2,665 5,102 7,767

Transactions with owners - - - -

Balance at 30 June 2012 - 2,665 103,024 105,689


stateMent oF CHanGes in eQUitYFor the year ended 30 June 2012

49


For the year ended 30 June 2012

note 2012 2011

$’000 $’000

inflow/ inflow/

(outflow) (outflow)

Cash flows from operating activities

Receipts from customers 26,316 24,209

Payments to suppliers and employees (18,086) (17,000)

Interest received 1,540 1,826

Interest paid (3,376) (3,497)

Net cash inflow from operating activities 15 (b) 6,394 5,538

Cash flows from investing activities

Payments for property, plant and equipment 8(a) (3,481) (3,118)

Net cash (outflow) in investing activities (3,481) (3,118)

Cash flows from financing activities

Payments to parent entity (5,122) (5,109)

Net cash (outflow) from financing activities (5,122) (5,109)

Net (decrease) in cash and cash equivalents (2,209) (2,689)

Cash and cash equivalents at the start of the financial year 5 29,532 32,221

Cash and cash equivalents at the end of year 5/15(a) 27,323 29,532


stateMent oF CasH FloWs


50

NOtes tO the fiNaNcial stateMeNts30 June 2012

1 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 The Sydney Metropolitan Development Authority (“SMDA” 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 Company is responsible for the day-to-day management of the Australian Technology Park (‘ATP’) 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 Markets and the Koori Job Ready Aboriginal Employment Program.

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

The financial statements for the year ended 30 June 2012 were authorised for issue by the Board on 17 October 2012.

2 sUMMaRY oF siGniFiCant aCCoUntinG PoliCies

(a) Basis of preparation

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 NSW Treasurer’s directions.

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and liabilities at fair value through profit or loss, certain classes of property, plant and equipment and investment property.

The financial statements have been prepared on an accrual accounting basis using historical cost accounting conventions, except for:

- non-current physical assets measured at fair value;

- investment properties measured at fair value

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.

Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures.

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 made are disclosed in the relevant notes to the financial statements.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period, in which the estimates are recognised, or in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Financial Statements are presented in Australian currency and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated.

(b) Statement of compliance

The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

(c) Finance costs

Finance costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other finance costs are expensed in the period in which they are incurred.

(d) Insurance

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 and the insurance coverage is reviewed periodically to ensure that it is adequate.

notes to tHe FinanCial stateMents30 June 2012

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(e) Taxes

(i) Good and services tax

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, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable.

Receivables and payables, which are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation office is included as part of receivables or payables in the Statement of financial position.

Cash flows are included in the Statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is 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.

(f) Revenue recognition

Revenue is measured at the fair value of the consideration 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:

(i) Rental revenue

Rental revenue is accounted for in accordance to the rental agreement. The majority of rental revenue is accounted for on 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.

(ii) Rendering of services

Revenue from a contract to provide services is recognised by reference to the stage of the completion of the contract.

(iii) Grants and Contributions

An unconditional contribution and grants received are recognised as income when the company obtains control over the assets comprising the contribution. Control over contributions is normally obtained upon the receipt of cash.

Where any unspent contributions at period end are repayable to the funding bodies in the following financial period, the unspent contributions are accounted for as liabilities rather than income.

(iv) Investment and Interest Income

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 account are recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Interest income is recognised on an accrual basis using the effective interest method.

(v) Other income

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

(g) Dividends

In accordance with the Company’s Constitution, no portion of the Company’s income may be paid or transferred directly or indirectly by way of a dividend to members of the company.

(h) Expenditure

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.

Expenses for the major business activities as follows:

(i) 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 Note 11.

(ii) Depreciation expenses

Depreciation expenses are charged as stated in Note 8(a).

(iii) Maintenance expenses

Maintenance expenses are charged as stated in Note 3(b).


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(i) Assets

(i) 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 Hour-Glass facility held with NSW Treasury Corporation (T-Corp). These are readily convertible to cash and classified as cash and cash equivalent.

For Statement of Cash Flows presentation purposes, cash and cash equivalents consist of cash and cash equivalents as defined above.

(ii) Property, plant and equipment recognition and measurement

Property, plant and equipment is 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.

Assets acquired at no cost or for nominal consideration are initially recognised at their fair value at the date of acquisition.

Gain and loss on disposal of property, plant and equipment are determined by comparing proceeds from disposal with the carrying amount of property, plant and equipment and are recognised in the Statement of Comprehensive Income. When re-valued assets are sold, the amounts included in the revaluation reserve are transferred to Accumulated funds.

(iii) Revaluation of physical non-current assets

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 reserve, 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 surplus/deficit, the increment is recognised immediately as revenue in the surplus/deficit.

Revaluation decrements are recognised immediately as expenses in the surplus/deficit, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

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.

Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.

(iv) Revaluation of plant and equipment

Plant and equipment is valued at fair value in accordance with Australian Accounting Standard AASB 116 Property, plant & equipment and NSW Treasury Paper on Valuation of Physical Non-Current Assets at Fair Value-Policy Guideline Paper (TPP 07-1).

(v) Valuation of land and buildings

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 31 May 2012 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.

(vi) Capitalisation of assets

Expenditure in excess of $5,000 is capitalised where it is expected to provide future economic benefits for more than one reporting period. 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.

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.

The remaining capital expenditure is carried forward as construction in progress and included in property, plant and equipment in the Statement of Financial Position.

(vii) Subsequent cost

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any

53


(x) Intangible assets

Intangible assets are recognised if it is probable that the future economic benefits associated with such items will flow to the Company, and it can be measured reliably. Intangible assets are measured at cost less accumulated amortisation and accumulated impairment loss.

Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

IT development and software costs incurred in developing products or systems, and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction, are capitalised to software and systems.

Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project.

The useful lives of intangible assets are assessed to be infinite. Intangible assets are measured initially at cost and subsequently 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.

IT development costs 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.

The Company’s intangible assets are amortised on a straight line method over 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.

The estimated useful lives for the current and comparative periods are as follows:

- Furniture and fittings 4-5 years

- Plant and equipment 3-4 years

- Leasehold improvements Shorter of the lease period, or useful life

- Motor vehicles 5 years

- Buildings 40 years

(ix) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or services, or for administrative purposes.

Investment property is measured initially at cost, including transaction costs, and then subsequently, at fair value.

Investment properties fair values are based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. If this information is not available the company uses alternative valuation methods such as recent prices in less active market or discounted cash flow projections. These valuations are reviewed annually by Preston Rowe Paterson.

Changes in fair values are recorded in the Statement of Comprehensive Income as part of other income or other expenses in the period in which they arise.

When the status of investment property changes, such that it is reclassified as property, plant and equipment, its fair value at the date of reclassification becomes its value for subsequent accounting.

No depreciation is charged on Investment properties.

component accounted for as a separate asset is derecognised when replaced.

Subsequent costs include:

- Major inspection costs

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.

- 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.

- Maintenance costs

Day-to-day servicing costs or maintenance are charged as expenses as incurred to the Statement of Comprehensive Income during the reporting period in which they are 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.

(viii) Depreciation

Depreciation is recognised in the Statement of Comprehensive Income on a straight line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leased assets 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. Land is not depreciated.

Heritage assets that have been improved to provide rental income will be depreciated over 40 years and therefore valued under the income approach.

Depreciation of art and artefacts is not recognised because the useful life and the net amount to be recovered at the end of the useful life cannot be reliably measured. The decision not to recognise depreciation for these assets is reviewed annually.


54


(xi) Impairment

The carrying amount of assets other than investment property, are reviewed at each reporting date to determine whether there is any impairment. An allowance for impairment is established when there is objective evidence that the company will not be able to collect all amounts due.

For financial assets carried at amortised cost, the amount of the allowance is the difference between the assets 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 Statement of Comprehensive Income.

When an available for sale financial asset is impaired, the amount of the cumulative loss is removed from equity and recognised in the Statement of Comprehensive Income, based on the difference between the acquisition cost (net of any principal repayment and amortisation) and current fair value, less any impairment loss previously recognised in the Statement of Comprehensive Income.

Any reversals of impairment losses are reversed through the Statement of Comprehensive Income, where there is objective evidence, the only exception being 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 which cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.

(xii) Lease incentives

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 rent-free or at a reduced rent, and shall be recognised, in accordance with the Australian Accounting Interpretations.

(xiii) 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:

- where substantially all the risks and rewards have been transferred or;

- where the Company has not transferred substantially all the risks and rewards, if the entity 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.

(xiv) Other financial assets

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

(xv) Receivables

Receivables include trade and other receivables, and statutory debts.

Trade receivables are recognised initially at the value of the invoice and subsequently measured at amortised cost using the effective interest method, less allowance for impairment if required.

Collectability of trade receivables is closely monitored and reviewed on an ongoing basis through dedicated reporting to senior management and the ATPSL board. Debts which are ultimately known to be uncollectible are written off by reducing the carrying amount directly. Payment plans are established for emerging bad debts and collection action is implemented to enforce payment terms.

An allowance for impairment is used when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. 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. 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 original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

The allowance for impairment is recognised in the Statement of Comprehensive Income within other expenses. 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 credited against other expenses in the Statement of Comprehensive Income.

55


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 government bond rate of 3% (2011: 5%) was applied for discounting purposes.

- Superannuation - Defined contribution plans

Defined contribution plans is a post-employment 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 Comprehensive Statement of Income 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 acceptance can be estimated reliably.

(iii) Employee benefits

- Wages and salaries, annual leave, 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 expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date and are measured at present value in accordance with AASB 119 Employee Benefits.

Any vested sick leave is not taken up as a payable as at the reporting date. 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 national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

(j) Liabilities

(i) Trade and other payables

These amounts represent liabilities for goods and services received by the Company prior to the end of financial year, and which were unpaid at the end of the year. The amounts are unsecured and are usually paid within 30 days of receipt of a relevant invoice. 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

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Comprehensive Income over the period of the borrowings using the effective interest method.

Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in other income or finance cost.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.


56


(k) Provision

Provision is recognised when the Company has a present legal or constructive obligation as result of 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.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. 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.

(l) Leases

- Operating lease

Where the Company is the lessee, operating lease payments are recognised as an expense in Statement of Comprehensive Income on a straight-line basis over the lease term.

Where the Company is the lessor, leases in which the Company retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Operating lease rental receipts are recognised as revenue in the Statement of Comprehensive Income on a straight-line basis over the lease term. While payments made under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the period of the lease.

In the event that lease incentives are offered to enter into operating leases, such incentives are recognised as a liability. The aggregate benefits of incentives are recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

- Finance lease

Leases of property, plant and equipment, where the Company, as lessee has substantially all the risks at inception, are reported at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other short-term and long-term payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Statement of Comprehensive Income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under a finance lease is depreciated over the shorter of the asset’s useful life and the lease term.

(m) Changes in accounting policies

In the current period, the Company has adopted all of the new and revised Australian Accounting Standards and Interpretations that are relevant to its operations and which are effective for current reporting period beginning on 1 July 2011. As a result, the Company has changed its accounting policies and disclosure in relation to the presentation of financial statements.

When the presentation or classification of items in the financial statements are amended, comparative amounts are reclassified unless the reclassification is impracticable. When comparative amounts are reclassified, the Company discloses:

- the nature of the reclassification;

- the amount of each item or class of items that is reclassified; and

- the reason for the reclassification.

(n) 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 2 (i)(iii).

(ii) Accumulated funds

The category ‘accumulated funds’ includes all current and prior period retained funds.

57


New 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 2012 reporting period. The Company did not early adopt any of these Accounting Standards and Interpretations that are listed below which were in issue but not yet effective.

Standard/InterpretationEffective for annual reporting periods beginning on or after

AASB 9 ‘Financial Instruments’, AASB 2009-11 ‘Amendments to Australian Accounting Standards arising from AASB 9’ and

AASB 2010-7 ‘Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)’

1 January 2013

AASB 13 Fair Value Measurement, AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13

1 January 2013

AASB 127 Separate Financial Statements (2011) 1 January 2013

AASB 119 Employee Benefits (2011), AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (2011)

1 January 2013

AASB 2011-4: Amendments to Australian Accounting Standards to remove individual key management personnel disclosure requirements

1 July 2013


58


3 exPenses exClUDinG losses

2012 2011

$’000 $’000

(a) Employee related expenses

Salaries and wages (including recreation leave) 2,354 1,839

Superannuation - defined contribution plans 210 144

Long service leave 38 31

Workers’ compensation insurance 11 7

Payroll tax and fringe benefit tax 18 15

Other employee expenses 280 128

2,911 2,164

(b) Other operating expenses include the following:

Auditor’s remuneration

- audit of the financial statements 102 62

Conference Centre cost of sales 3,000 2,153

Koori Job Ready cost of sales 230 -

Operating lease rental expenses

- minimum lease payments 78 78

Consultants 690 662

Contractors 1,328 1,400

Property expenses 4,109 3,169

Repairs & maintenance 418 623

Legal 330 273

Operating lease costs 997 997

Advertising 609 533

Cleaning 429 374

Security 745 721

Other 1,813 1,973

14,878 13,018

(c) Finance costs

Finance lease interest charges 315 298

Interest expense 1,786 2,164

Debt guarantee levies 1,061 1,255

3,162 3,717

59


4 ReVenUe

2012 2011

$’000 $’000

(a) Sales of Services

Revenue from rendering of services 21,949 19,537

(b) Investment revenue

Bank deposits 125 91

Loans and receivables 259 290

NSW Treasury Corporation Hour-Glass cash facility 1,157 1,465

1,541 1,846

(c) Grants 600 -

(d) Other income

Other operating income 376 919

(e) Other gains

Gain on revaluation of investment property (note 7) 4,069 1,340

Reversal of revaluation decrement previously recognised in income 66 84

4,135 1,424

28,601 23,726

5 CURRent assets - CasH anD CasH eQUiValents2012 2011

$’000 $’000

Cash on hand and at bank 4,785 3,151

NSW Treasury Corporation “Hour-Glass” cash facility 22,538 26,381

27,323 29,532

The Company places surplus cash in the NSW Treasury Corporation’s “Hour-Glass” cash facility.

The weighted average rate of return on these cash investments during the year was 4.78% (2011: 5.26%).


60


6 CURRent/non-CURRent assets - tRaDe anD otHeR ReCeiVaBles2012 2011

$’000 $’000

Current

Trade receivables (i) 166 543

Allowance for impairment (5) (26)

161 517

Amounts receivable from parent entity (ii) 29 -

Goods and services tax recoverable 47 116

Other receivables 414 20

651 653

(i) The average credit period extended by the Company on rental payments and on conference activity services is 7 days.

Provision is made for estimated irrecoverable trade receivable amounts arising from the past rendering of services, determined by reference to past default experience irrespective of debtor ageing. The Company reviews debtors ageing and makes a provision on the basis of a probability percentage of recovery for each ageing category.

2012 2011

$’000 $’000

Movement in allowance for impairment of receivables

Balance at the beginning of the financial year 26 21

(Decrease)/increase in provision for impairment loss (21) 5

Bad debts written off - -

Balance at the end of year 5 26

Space at ATP is leased to new customers who fit the selection criteria. The Company also has a policy of collecting 3-6 months rental as a bond before the commencement of the lease. Customers of the Conference Centre and Eveleigh Markets pay all the event obligations before the event is held. It should be noted that the receipt of monies before the event occurs does not apply to government agencies.

Of the trade receivables balance at the end of the year, $7k (2011: $113k) is due from General Government entities, which makes up 4% (2011: 21%) of the total balance of trade receivables and $9k (2011: $25k) is due from Public Trading Enterprises, amounting to 5% of trade receivables balance (2011: 5%).

Included in the Company’s trade receivable balances are debtors with a carrying amount of $152k (2011: $418k) 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. The Company does not hold collateral over these balances.

61


2012 2011

$’000 $’000

Ageing of past due but not impaired

Less than 3 months overdue 131 414

3 to 6 months overdue - 1

More than 6 months overdue 21 3

152 418

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.

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. While the property part of the business collects rental monies of up to 3-6 months before the commencement of the lease.

Included in the allowance for impairments are trade receivables of $5k (2011: $26k) broken down by ageing, as follows:

2012 2011

$’000 $’000

Ageing of impaired trade receivables

Less than 3 months overdue - -

3 to 6 months overdue - 12

More than 6 months overdue 5 14

5 26

(ii) Refer to Note 18(c) for terms and conditions.


62


7 inVestMent PRoPeRtY

2012 2011

$’000 $’000

At fair value

Opening balance as at 1 July - fair value 65,218 64,000

Transfer from parent entity (note 23) - 2,150

Reclassification of lease incentive assets* - (2,272)

Net gain from fair value adjustment 4,069 1,340

Closing balance as at 30 June - fair value 69,287 65,218

* Amounts for lease incentives and accrued lease receivables, including comparatives, are reclassified from investment properties to meet the disclosure requirements of accounting standards. Accordingly, the disclosure for gain from fair value adjustments, lease income and expense has changed.

Investment property consists of the International Business Centre, NICTA and Biomedical buildings.

2012 2011

$’000 $’000

Loans receivables

Current 470 437

Non-current 2,873 3,343

3,343 3,780

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.

6 (a) CURRENT/NON-CURRENT ASSETS - LOANS RECEIVABLE

63


2012 2011

$’000 $’000

Loans receivables

Current 470 437


3,343 3,780

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.

8 non-CURRent assets - PRoPeRtY, Plant anD eQUiPMent & soFtWaRe 2012 2011

$’000 $’000

Land & buildings

At gross value 49,750 48,225

Accumulated depreciation - -

Carrying amount at fair value 49,750 48,225

Leasehold improvements


Accumulated depreciation (2,213) (1,552)


Furniture and fittings



Carrying amount at fair value 645 580

Plant and equipment



Carrying amount at fair value 871 1,166

Motor vehicles

At gross value 32 32

Accumulated depreciation (12) (6)


Art and artefacts

At gross value 5 5

Accumulated depreciation - -


Software

At gross value 515 402

Accumulated amortisation (398) (336)


Work in progress 1,764 199

Total property, plant and equipment & software


Accumulated depreciation/amortisation (6,193) (4,849)



64


8 (a) Reconciliation of Property, Plant and Equipment & Software

Land &

buildingsLeasehold

improvementsFurniture

and fittingsPlant and

equipmentArt and

artefactsMotor

vehiclesSoftware Work in

progressTotal

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Year ended 30 June 2011

Opening net book amount - 9,892 73 845 5 - 56 574 11,445

Additions - 1,763 577 510 - 32 37 199 3,118

Transfer in/out - 345 - 214 - - 15 (574) -

Transfer from parent entity (note 23)

49,375 - - - - - - - 49,375

Revaluation surplus 84 - - - - - - - 84

Depreciation/amortisation (1,234) (474) (70) (403) - (6) (42) - (2,229)

Closing net book amount 48,225 11,526 580 1,166 5 26 66 199 61,793

Year ended 30 June 2012

Opening net book amount 48,225 11,526 580 1,166 5 26 66 199 61,793

Additions - 1,368 206 111 - - 98 1,698 3,481

Transfer in/out - 51 37 30 - - 15 (133) -

Revaluation surplus 2,731 - - - - - - - 2,731

Depreciation/amortisation (1,206) (660) (178) (436) - (6) (62) - (2,548)

Closing net book amount 49,750 12,285 645 871 5 20 117 1,764 65,457

9 CURRent/non-CURRent assets - lease inCentiVe asset 2012 2011

$’000 $’000

Current 343 538


1,806 2,344

65


12 CURRent liaBilities - PRoVision - CoUnCil Rates2012 2011

$’000 $’000

Council rates - 490

- 490

10 CURRent liaBilities - tRaDe anD otHeR PaYaBles

2012 2011

$’000 $’000

Current

Accrued salaries, wages and on-costs 255 156

Creditors and accruals (i) 3,828 2,633

Amounts payable to parent entity (ii) 39 -

Event and tenant deposits 1,128 1,220

Unearned revenue 344 29

Goods and Services Tax payable - 204

5,594 4,242

(i) The 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 18(c) for terms and conditions.

11 CURRent/non-CURRent liaBilities - PRoVisions - eMPloYee entitleMents2012 2011

$’000 $’000

Current

Recreation leave 161 155


249 227

Non-current


325 282

Aggregate employee benefits and related on-costs

Provisions - current 249 227

Provisions - non-current 76 55

Accrued salaries, wages and on-costs (note 10) 255 156

580 438


66


13 CURRent/non-CURRent liaBilities - BoRRoWinGs

2012 2011

$’000 $’000

Current

Loan from parent entity - 10 year fixed interest 470 437

470 437

Non-current

Loan from parent entity - 10 year fixed interest 2,873 3,343

Loan from parent entity at variable rates 29,996 34,996

Finance lease liability (Note 17(b)) 5,963 5,648

38,832 43,987

39,302 44,424

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 4.6% interest for the current year (2011: 4.9%). 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 2011.

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(a)).

14 otHeR ReseRVes anD aCCUMUlateD FUnDs

2012 2011

note $’000 $’000

(a) Other reserves

Revaluation surplus - property, plant and equipment

Balance at beginning of the year - -

Net revaluation surplus 8(a) 2,665 -

Balance at end of the year 2,665 -

(b) Accumulated funds

Balance at beginning of the year 45,916 43,912

Correction of prior period errors 23 52,006 51,412

Balance as restated 97,922 95,324


Balance at end of the year 103,024 97,922

67


15 ReConCiliation oF stateMent oF CasH FloWs For the purposes of the cash flow statement, cash includes cash on hand and in banks and liquid investment in NSW

Treasury Corporation “Hour-Glass” cash facility. Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

(a) Reconciliation of cash and cash equivalents

2012 2011

$’000 $’000

Cash and cash equivalents (note 5) 27,323 29,532

(b) Reconciliation of net result for the year to net cash flows from operating activities

2012 2011

$’000 $’000


Adjustments for non-cash items

Depreciation and amortisation 2,548 2,229

Change in fair value of investment property measured at fair value through income statement

(4,135) (1,424)

Recognition of operating lease incentive in accordance with:

Interpretation of AASB 115 538 462

Operating lease 997 997

Allowance for impairment on receivables (21) 5

Net profit before working capital changes 5,029 4,867

Changes in net assets and liabilities:

Decrease in trade and other receivables 460 302

Increase/(decrease) in trade and other payables 1,352 (107)

(Decrease)/increase in provisions (447) 476

Net cash flows from operating activities 6,394 5,538

16 CAPITAL COMMITMENTS2012 2011

$’000 $’000

Contracted as at balance date (inclusive of GST)

Payable within one year 1,678 3,927


68


17 lease CoMMitMents(a) Disclosures for the Company as lessor

Operating leases

Operating leases relate to the investment property referred in Note 7 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.

2012 2011

$’000 $’000

Non-cancellable operating lease receipts

Not later than one year 13,909 13,877

Later than one and not later than five years 38,780 41,031

Later than five years 18,266 22,003

Total including GST 70,955 76,911

The above includes GST output tax of $6.45m (2011: $6.99m) 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.

(b) Disclosures for the Company as lessee

Operating leases

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.

2012 2011

$’000 $’000

Non-cancellable operating lease payments

Not later than one year - -

Later than one and not later than five years - -

Later than five years 68,225 68,225

68,225 68,225

69


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:

2012 2011

$’000 $’000

Non-current - other liability

Operating lease payable in arrears 16,957 15,960

Finance leases

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.

2012 2011

$’000 $’000

Minimum lease payments, later than 5 years * 30,525 30,525

Less: Future finance charges (24,562) (24,877)

Present value of minimum lease payments 5,963 5,648

Included in the financial statements as:

Non-current finance lease liability (Note 13) 5,963 5,648

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


70


18 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

Mr John Mulally

Mr Roy Wakelin-King AM - Managing Director

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

(b) Compensation of key management personnel

Directors compensation

The Directors receiving remuneration from the Company during the financial year ended 30 June 2012 are Dr Gellatly, Mr Collins and Ms Turnbull (2012: $61,040, 2011: $22,523). To balance date, the other remaining Directors have been remunerated by SMDA. Options for allocation of these costs may be subject to review during the 2012 financial year. Directors did not receive any loans or advances or other forms of compensation during the financial year.

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.

The Managing Director of the Company is not remunerated by the Company. He is also the CEO of Sydney Metropolitan Development Authority (the parent) and is remunerated by the parent. ATPSL pays SMDA on a pro-rata basis for the time the Managing Director devotes to the company (2012: $85k, 2011: $450k).

(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.

Compensation of current key personnel:

Number Salary Superannuation Performance related bonus

$’000 $’000 $’000

3 100-150 1-20 1-50

1 150-200 1-20 1-50

1 200-250 1-20 1-50

71


19 RelateD PaRtY tRansaCtions anD BalanCesThe Company is a wholly owned subsidiary of SMDA. 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:

2012 2011

$’000 $’000

Related party balances

Receivable from the parent entity 29 -

Payable to the parent entity (39) -

Loans from the parent entity 39,302 44,424

Related party transactions

Provision of staff services by the parent entity (209) -

Provision of staff services to the parent entity 16 96

Development activity support from the parent entity (85) (450)

Eveleigh Market rental paid to parent entity (78) (78)

Interest paid to parent entity on the loan (1,763) (2,164)

Debt guarantee levy paid to parent entity on the loan (1,061) (1,255)

20 FinanCial instRUMentsThe Company’s principal financial instruments, and the main risks associated with them, are outlined below. The financial instruments arise directly from the Company’s trading activities and operations. The Company does not enter into or trade in financial instruments for speculative purposes.

2012 2011

$’000 $’000

Financial assets

Cash & deposits 4,785 3,151

Short term cash investments - TCorp 22,538 26,381

Receivables 604 537

Other financial assets 3,343 3,780

31,270 33,849

Financial liabilities

Payables 5,594 4,038

Borrowings 39,302 44,424

44,896 48,462


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20 FinanCial instRUMents (ContinUeD)

(a) Financial risk management objectives

The Company’s principal financial instruments comprise cash and short term deposits, finance lease liabilities and loans from its parent. The main purpose of these financial instruments is to fund the Company’s operations. The Company has various other financial instruments such as debtors and trade creditors, which arise directly from its operations.

It is, and has been throughout the period under review, the Company’s policy that no trading in financial instruments shall be undertaken.

The main risks arising from the Company’s financial instruments are interest rate risk, liquidity risk and credit risk. The executive reviews and agrees policies for managing each of these risks and they are summarised below.

(b) Interest rate risk

The Company is exposed to interest rate risk as it borrows at floating interest rates from its parent entity and holds surplus cash in NSW Treasury Corporation “Hour-Glass” cash facilities.

The Company’s exposure to interest rate risk arising from the above is disclosed in notes 5 and 13.

(c) Interest rate sensitivity

The sensitivity analysis below has been determined based on the exposure to interest rates for the financial instruments held by the Company at the reporting date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change in interest rates.

At reporting date, if interest rates applied to the net cash and investments and borrowings had been 1% higher, and all other variables were held constant, the Company’s net profit would decrease by $24k (2011: $55k). This is mainly attributable to the Company’s exposure to interest rate risk on its variable borrowings from its parent and its investments in “Hour-Glass” facilities from the NSW Treasury Corporation.

(d) Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in losses to the Company. The credit quality of trade and other receivables and the credit risk management policy in respect of such financial assets are disclosed in note 6.

No credit risk arises on the Company’s investments in Hour-Glass cash facilities with the NSW Treasury as these represent the Company’s share of the net asset value of the facility.

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(e) Liquidity risk

Liquidity risk arises from the possibility that the Company may be unable to settle a transaction on the due date. The Company’s objective is to maintain a satisfactory level of liquidity. The Company has no significant borrowings for the day to day operations. The Company borrows money only for the purpose of capital projects which is through its parent entity.

Liquidity and interest risk tables: The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows and spot rates at the year-end have been used to project interest payments for variable rate loans.

Weighted average effective

interest rate Less than

1 year 1-5 years 5+ years Total

% $’000 $’000 $’000 $’000

2012

Non-interest bearing payables - 5,594 - - 5,594

Fixed rate loan from parent 7.24% 470 2,257 616 3,343

Variable rate loan from parent 4.66% - - 29,996 29,996

Finance lease liability 5.50% - - 5,963 5,963

6,064 2,257 36,575 44,896

2011

Non-interest bearing payables - 4,038 - - 4,038

Fixed rate loan from parent 7.24% 437 2,100 1,243 3,780

Variable rate loan from parent 4.99% - - 34,996 34,996

Finance lease liability 5.50% - - 5,648 5,648

4,475 2,100 41,887 48,462

The 10 year fixed interest rate loan pertains to the fit-out costs recoverable from the Department of Defence over the term of the lease (refer note 6(a)).

(f) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the income or value of the holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within in acceptable parameters, while optimising the return.

The Company’s exposures to market risk are as follows:

· Growth: the depth and length of the global economic downturn, and its impact on the investments held by the Company

· Systematic risk: liquidity and counterparty risks in financial markets

· Lack of corporate governance: Universal lack of corporate governance leads to fraud and bankruptcies.

The Company manages its market risk exposure by construction of risk framework that quantifies the risks in the investment strategies and the probable outcomes from the portfolio given different events.

In addition, ATPSL has an active risk management strategy to monitor and manage its market risk across each of its businesses.


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20 FinanCial instRUMents (ContinUeD)

(g) Capital management

The Company manages its capital to ensure that it will be able to continue as a going concern in order to meet its statutory obligations. The capital structure of the Company consists of cash and cash equivalents and retained profits as disclosed in note 14.

(h) Net fair values of financial assets and liabilities

The fair value of financial assets and liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions. The carrying amount of financial assets and financial liabilities recorded in the financial statements approximate their net fair values.

(i) 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).

2012 Level 1 Level 2 Level 3 Total

$’000 $’000 $’000 $’000

Financial assets at fair value

Short term cash investments - TCorp - 22,538 - 22,538

2011 Level 1 Level 2 Level 3 Total

$’000 $’000 $’000 $’000

Financial assets at fair value

Short term cash investments - TCorp - 26,381 - 26,381

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 2012.

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21 ContinGent assets anD liaBilities

ATPSL is in receipt of a claim from the Department of Defence which is subject to negotiations.

Until the outcome of this matter is known, there is uncertainty relating to the extent to which the liabilities for a claim from the Department of Defence, if any, should be recognised in the financial statements.

22 eVents aFteR RePoRtinG PeRioD

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

23 PRioR PeRioD eRRoRs anD ReClassiFiCation

The company has identified the following prior period errors and the necessary corrections have been made as required by AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors as follows:

• The amount of the correction for each financial line affected.

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

(a) In 2008-09, RWA had entered into a commercial development agreement with ATPSL and a third party, whereby RWA provided land on a long-term lease arrangement while becoming the legal owner of a constructed building together with 350 car park spaces. RWA leased the building including the car park spaces to ATPSL for the same lease term as the land and ATPSL further sub-leased the building excluding the car park spaces to the third party.

The land under this arrangement was previously treated as an operating lease. ATPSL had recognised the car park spaces as a leasehold improvement initially at a fair value of $9.625 million (re-classifying it as Other Assets at 30 June 2011) with a corresponding credit to deferred lease revenue.

During the period, it was determined that legally the car park spaces were under a lease agreement between RWA and ATPSL which should be treated as a finance lease arrangement. It was also determined that the car park spaces should be classified as property, plant & equipment by ATPSL, given the nature of its use and method of managing it to earn revenue. Any fair value change to the car park spaces is recorded by ATPSL through accumulated funds.

The re-classification of the car park spaces to property, plant & equipment (under land & buildings) has been reflected in the financial statements of the Company.

(b) In 1995-96, RWA (then operating as Sydney Harbour Foreshore Authority) had entered into a long-term lease agreement with ATPSL for the lease of International Business Centre (“IBC”) and Locomotive heritage building. These lease arrangements were treated as operating leases by RWA when it adopted A-IFRS in 2005, since it was considered that these buildings will have an economic life more than the lease term and will have substantial residual value at the end of the lease term.

During the period, it was decided that a ‘finance lease’ classification would more appropriately reflect the substance of these lease arrangements. Accordingly the investment property has been de-recognised by RWA.

ATPSL, the lessee of the Locomotive heritage building, has classified the building as property, plant & equipment, given that it occupies more than 10% of the available space within the buildings. Any fair value change to the heritage building is recorded by ATPSL through retained earnings.

The change in the accounting of IBC was de-recognised as an investment property by RWA and transferred as an investment property in ATPSL’s financial statements.


76


23 PRioR PeRioD eRRoRs anD ReClassiFiCation (ContinUeD)

i. Restatement of statement of comprehensive income, statement of financial position and statement of changes in equity for the year ended 30 June 2011 financial statement line items impacted by the prior period errors.

2011 2011

$’000 previous reported

$’000 prior period error

$’000 restated

Statement of comprehensive income

Depreciation and amortisation (995) (1,234) (2,229)

Total expenses excluding losses (19,894) (1,234) (21,128)

Sale of services income 19,643 (106) 19,537

Profit/(loss) on revaluation of investment property (510) 1,934 1,424

Total revenue 21,898 1,828 23,726

Net result 2,004 594 2,598

Total comprehensive income 2,004 594 2,598

Statement of financial position

Lease incentive asset 119 419 538

Total current assets 30,741 419 31,160

Investment property 64,900 318 65,218

Property, plant and equipment & software 13,568 48,225 61,793

Lease incentive asset 293 1,513 1,806

Other asset 7,875 (7,875) -


Total assets 120,720 42,600 163,320

Deferred lease revenue 109 (109) -

Total current liabilities 5,505 (109) 5,396

Deferred lease revenue 9,297 (9,297) -

Total non-current liabilities 69,299 (9,297) 60,002

Total liabilities 74,804 (9,406) 65,398

NET ASSETS 45,916 52,006 97,922

Reserves - - -

Accumulated funds 45,916 52,006 97,922

TOTAL EQUITY 45,916 52,006 97,922

Statement of changes in equity

Total comprehensive income for the year 2,004 594 2,598

Other reserves - - -


Balance of equity at the end of year 45,916 52,006 97,922

77


ii. Restatement of statement of comprehensive income, statement of financial position and statement of changes in equity for the year ended 1 July 2010 financial statement line items impacted by the prior period errors.

END OF AUDITED FINANCIAL STATEMENTS

1 July 2010 1 July 2010

$’000 previous reported

$’000 prior period error

$’000 restated

Statement of comprehensive income

Depreciation and amortisation (729) (1,270) (1,999)

Loss on revaluation of investment property (1,002) 270 (732)

Total expenses excluding losses (20,804) (1,000) (21,804)

Net result 143 (1,000) (857)

Total comprehensive income 143 (1,000) (857)

Statement of financial position

Lease incentive asset 121 419 540

Total current assets 33,303 419 33,722

Investment property 64,000 (122) 63,878

Property, plant and equipment & software 11,445 49,375 60,820

Lease incentive 413 1,853 2,266

Other asset 9,625 (9,625) -


Total assets 122,566 41,900 164,466

Deferred lease revenue 109 (109) -

Total current liabilities 5,131 (109) 5,022

Deferred lease revenue 9,403 (9,403) -

Total non-current liabilities 73,523 (9,403) 64,120

Total liabilities 78,654 (9,512) 69,142

NET ASSETS 43,912 51,412 95,324


TOTAL EQUITY 43,912 51,412 95,324

Statement of changes in equity

Total comprehensive income for the year 143 (1,000) (857)


Balance of equity at the end of year 43,912 51,412 95,324

78


atPsl FinanCial stateMents - 30 JUne 2012

79


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

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.

ConsUMeR ResPonse

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.

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 23

Male Employees 12

Female Employees 11

NESB background 9

Indigenous 3

Males Senior Management Positions 2

Female Senior Management Positions 3

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.

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 Redfern-Waterloo Authority. 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.

aPPenDiCes

8080


ContaCt Details



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


ISSN: 1445-7369

81

inDex

06 ATPSL Board Members

43 Auditor’s Independance Declaration

02 Charter

20 Community

34 Conference and Exhibition Centre

08 Corporate Governance

42 Director’s Declaration

36 Director’s Report

46 Financial Statements

04 From the Chairman and Managing Director

16 Heritage and History

44 Independant Auditor’s Report

12 Innovation

28 Management and Achievements

iFC Minister’s Letter

26 Operational Structure and Performance

18 Sustainability

Designed by Tonic Connective | www.tonicconnective.com

ContaCt Details



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


ISSN: 1445-7369

Documents

Australian Technology Park Sydney Limited