September 2016 QUARTERLY REPORT€¦ · TABLE 1: CUSTOMER SATISFACTION SUCCESS MEASURES - JULY TO SEPTEMBER 2016 MEASURE TARGET ACTUAL STATUS COMMENTS Overall customer satisfaction

QUARTERLY REPORTSeptember 2016

QBCC SEPTEMBER 2016 QUARTERLY REPORT | 2

Our Highlights ......................................................................... 3

Delivery of Strategic Plan .....................................................4

Customer Service ........................................................................ 4

Operational Excellence ............................................................. 6

Our People ....................................................................................10

September Quarter Industry Activity ............................... 11

Licensing ......................................................................................... 11

Plumbing ........................................................................................ 12

Pool Safety .................................................................................... 13

Insurance ........................................................................................ 14

Building Complaints and Disputes ..................................... 15

Breaches and Offences ............................................................ 16

Adjudication Registry ............................................................... 18

Customer Feedback .................................................................. 18

Financial Management .........................................................19

Financial Commentary ............................................................. 19

Income Statement (unaudited) ...........................................20

Balance Sheet (unaudited) .................................................... 21

Index of Tables ......................................................................22

TABLE OF CONTENTS


OUR HIGHLIGHTS

$7.9 MILLION

in insurance

claim payouts

CORRUPT CONDUCT AND PUBLIC

INTEREST DISCLOSURE

AWARENESS TRAINING

completed by staff

Various INTERNAL POLICES

REVIEWED or added

to improve

business operations

$1.91 MILLION

IN DEBTS

recovered for

creditors in the

July – September 2016

period

99% of all EMAIL

AND WEB ENQUIRIES

to the

QBCC contact centre

responded to within

one business day



This is a status report of key achievements and performance indicators, as defined in the QBCC Strategic Plan 2016-2020 for the Customer Service goal. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2016-17.

CUSTOMER SERVICE

IMPROVED CUSTOMER SATISFACTION WITH RESPECT TO DELIVERY OF OUR SERVICES

DELIVERY OF STRATEGIC PLAN

TABLE 1: CUSTOMER SATISFACTION SUCCESS MEASURES - JULY TO SEPTEMBER 2016

MEASURE TARGET ACTUAL STATUS COMMENTS

Overall customer satisfaction

80% 71% X Negative homeowner feedback in Building Disputes has been a significant contributor to this result. Homeowners are more likely to respond to survey requests than licensees and their responses traditionally result in a customer satisfaction score more related to the decision/outcome than to the overall service experience. Homeowner survey respondents outnumbered licensees in the quarter, with homeowners making up an overwhelming majority of responses rating the QBCC at below satisfaction levels. The QBCC continues to explore ways to inform and educate homeowners to improve satisfaction levels.

Licensee service satisfaction

80% 78% The licensee service satisfaction level has increased over the quarter from 69% to over 80%, giving an average of 78%. The QBCC also continues to explore ways to inform and educate licensees to improve satisfaction levels.

Social media sentiment metric

>30% 24% Risks are being managed, however, a decrease in positive sentiment was seen due to increased activity by negative influencers on social media posts. While the QBCC supports open and honest feedback, we have reminded certain people of the need to follow Community Guidelines. High volume of posts by these influencers have skewed the results.

Percentage of calls answered within 30 seconds

80% 84%

Respond to all email and web enquiries within 1 business day

90% 99%

Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).


TABLE 2: CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM SUCCESS MEASURE - JULY TO SEPTEMBER 2016


Completion of Service Delivery 2015 project – Phase 2 Insurance Business

100 % complete

100%


Other achievements:

The Service Delivery 2015 Insurance Services (Home Warranty, Claims and Claims Recoveries) systems are due to be launched on 28 October 2016. This will streamline internal processes which will in turn lead to better services for our customers.

IMPROVED DECISION-MAKING AND PROCESSING TIMES FOR APPLICATIONS, PERMITS AND CASE MANAGEMENT

– reviewing and improving our policies and procedures

– identifying and implementing opportunities for improvement as outcomes of audit and internal review

Achievements:

QBCC’s Internal Review Unit (IRU) is working to reduce a backlog of applications which remains a top priority for the Unit. Applications received before 9 September 2016 were triaged by IRU, with staff working overtime, and those which could not be resolved and which were within Internal Review jurisdiction (approximately 89 cases) were re-allocated to relevant business units. To date, 63 files have been allocated and remain open, 13 were allocated and closed and 11 remain in the backlog re-allocation queue. All new cases received after 9 September 2016 remain in IRU. There are 36 unallocated cases awaiting assessment in the IRU case queue.

FULL IMPLEMENTATION OF A NEW CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM ACROSS QBCC


This is a status report of key achievements and performance indicators, as defined in the QBCC Strategic Plan 2016-2020 for the Operational Excellence goal. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2016-17.

INCREASING REGULATORY EFFECTIVENESS AND CUSTOMER CONFIDENCE

- Implementing government reforms to effectively reduce contractor insolvency, improve the security of payment, the certification system and the licensing framework

- Creating awareness, educating the industry and providing advice on the non-conforming products, home warranty insurance scheme reforms and QBCC’s core business lines

OPERATIONAL EXCELLENCE

TABLE 3: REGULATORY EFFECTIVENESS AND CUSTOMER CONFIDENCE SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Customer recognition: Licensee brand awareness >70% 72%

Customer recognition: Home owner brand awareness >15% 17%

Levels of unlicensed operators identified through audits <4% 1.49%


Other achievements:

• The QBCC’s new Toowoomba Regional Service Centre was opened on 7 September 2016• QBCC participated in the Housing Industry Association (HIA) Courier Mail Home Show from 9 to 11 September 2016• QBCC’s Services Trades Unit held a series of education and engagement activities in the quarter. These included:

• activities with the Master Plumbers’ Association of Queensland (MPAQ) PIPE events across the state• other industry engagements and presentations coordinated by the MPAQ• providing education services to TAFEs at Nambour and Mooloolaba, and TAFE SkillsTech at Acacia Ridge• discussions with plumbers and gas-fitters on licensing requirements• presentations to major contractors at the Service Trades Queensland college in Salisbury and

Townsville and the MPAQ• presentations to members of the National Fire Industry Association• discussions with the Electrical Safety Office on how to better protect the community• discussions with the Gold Coast 2018 Commonwealth Games Corporation to ensure contractors

working on facilities are appropriately licensed.


TABLE 4: BUSINESS EFFICIENCY GAINS AND REDUCTION IN COST TO SERVE SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Ability for customers to transact with QBCC online applications 24x7x365

98% 97.8%

Annual reduction in the quantity of QBCC systems 1 per quarter

1

IS Roadmap tracking within annualised budget costs 95% 94%

CONTINUED BUSINESS EFFICIENCY GAINS AND REDUCTION IN COST TO SERVE - decommissioning of unsupported and outdated systems and applications

- implementation of an Information Services infrastructure roadmap


Other achievements:

• The Building Inspectors’ field based technology solution was transitioned from Optus to Telstra. A new Operating System and new printers were also implemented, giving Building Inspectors greater reliability in their work equipment

• The Building and Construction Industry Payments Act 2004 (BCIPA) Extranet was decommissioned in September 2016, saving QBCC approximately $30,000 annually

• Implemented a mobile device management system, Airwatch, for improved security and support of mobile devices.

Other performance indicators

TABLE 5: LICENSING SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Average number of days to process licence applications

30 days

26 days

Percentage of owner builder permits approved within 15 working days

90% 89%

Finalise a licence application within 30 working days (this relates to builders, designers, trade contractors, fire protection practioners, owner-builders and certifiers)

80% 73% X QBCC is facing increasingly high numbers of licence applications with limited resources. Applications are carefully scrutinized and additional time is allowed for applicants who do not provide all of the required information with the initial application form. Process improvements to reduce timeframes are ongoing.

Percentage of Pool Safety Inspectors licence applications processed in 5 business days

80% 94%

Plumbers and drainer licence applications processed in 5 business days

80% 84%

Percentage of plumbing and drainage work complaints investigated within 120 days

80% 67% Performance has been affected due to technical issues with internal systems and the resolution of multiple outstanding matters.



TABLE 6: DISPUTE RESOLUTION SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Percentage of early dispute resolution cases finalised within 28 days

90% 84% X The performance variance is due to a combination of factors including the complexity of cases, and the time taken for homeowners and contractors to respond to requests for additional information. On average, the processing time for the resolution of an early dispute case for the July – September quarter was 14.61 days. For a rolling 12 months it stood at 18.66 days.

Contact customers within 5 working days of receipt of their complaint lodged during construction

90% 82% X A slightly higher than expected receipt of cases during the previous two quarters meant slight delays in making initial contact during this quarter. Emphasis will be placed on rectifying this issue by ensuring case officers responsible for early dispute cases contact within the first five days.


TABLE 7: INTERNAL REVIEW SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Percentage of internal review applicants contacted within 2 business days

95% 92% A few instances in which applications were not forwarded directly to the Internal Review Unit have led to delays, impacting the performance of this measure.

Provide a decision on the review within 28 calendar days

85% 26% X QBCC’s Internal Review Unit (IRU) is working to reduce a backlog of applications which remains a top priority for the Unit. Applications received before 9 September 2016 were triaged by the IRU, with staff working overtime, and those which could not be resolved and which were within Internal Review jurisdiction (approximately 89 cases) were re-allocated to relevant business units. To date, 63 files have been allocated and remain open, 13 were allocated and closed and 11 remain in the backlog re-allocation queue. All new cases received after 9 September 2016 remain in IRU. There are 36 unallocated cases awaiting assessment in the IRU case queue.



TABLE 8: INSURANCE SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Percentage of insurance claims for defective work assessed and response provided within 35 business days

90% 45% X The target set for this measure is a stretch target and was not achievable due to the size and complexities of claims received. Performance has been impacted by delays beyond the QBCC’s control such as the provision of information by homeowners, systems limitations which report worse than actual results and resourcing. Mitigating strategies include a new technology platform to be launched in late October 2016 and an increase in home owner education to help them in submitting their applications.

Contact customers within two working days of receipt of their insurance claim

90% 57% X The performance variance is due to a combination of issues including how the current system calculates when claims are received and when it appears for staff to process the claim. There have been a small number of cases where claims do not appear on the system for staff to process and QBCC only finds out when claimants call. These system issues will be fixed when QBCC transitions to another system soon. Other issues include staff being involved in work related to Home Warranty Insurance reforms and being trained up on the changes, as well as staff being away due to illness or leave. Strategies include making changes in how claimants are contacted.

TABLE 9: COMPLIANCE AND ENFORCEMENT SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Percentage of complainants contacted in two business days of receipt of the complaint

90% 99%

Percentage of complainants contacted and advised on the outcome of their complaint’s assessment within 28 days

95% 91% X The performance variance is due to unplanned leave.

TABLE 10: PAYMENT DISPUTE RESOLUTION SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Percentage of adjudication applications referred to an adjudicator within 4 days

97% 97%

Provide a resolution within 10 working days for 90% of standard claims

90% 98%



This is a status report of key achievements and performance indicators, as defined in the QBCC Strategic Plan 2016-2020 for the Our People goal. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2016-17.

INCREASED CUSTOMER-FOCUSSED AND CAPABLE WORKFORCE – CONTINUOUS TRAINING AND DEVELOPMENT OF OUR STAFF

TO ENSURE A HIGHLY-ENGAGED, RESULTS-ORIENTED WORKFORCE

OUR PEOPLE

TABLE 11: INCREASED CUSTOMER-FOCUSSED AND CAPABLE WORKFORCE SUCCESS MEASURES - JULY TO SEPTEMBER 2016


Increased employee engagement 80% N/A This result will be reported on completion of the next survey.

Low staff absenteeism rates (days/person)

8 3.6

Separation rate 9% 4.82%

Percentage of participants pass relevant training assessments

95% 93% X 93% of participants who enrolled in the quarter completed their training and passed their assessments. Individuals who have commenced training but not completed the assessment will be followed up.


Other achievements:

• A Leadership Onboarding Course was completed by the Executive Leadership Team in August 2016• Other training sessions were completed by employees included:

• Privacy and Awareness in July 2016• Workplace Bullying and Harrassment in August 2016• Corrupt Conduct and Public Interest Disclosure Awareness in September 2016.


Table 12 below shows the number of QBCC licensees.

Building licences

Individuals holding a trade contractor licence comprised almost half of all licence holders. This quarter sees 734 more licensees than the previous quarter.

There was a slight growth in applications for a QBCC licence during the quarter, with 2,465 applications received, equating to a 7% increase, compared to the previous quarter.

LICENSING

TABLE 12: LICENSEES BY CATEGORY AS AT 30 SEPTEMBER 2016 - JULY TO SEPTEMBER 2016

INDIVIDUAL COMPANY

Builder 25,795 8,160

Builder restricted 2,403 623

Trade contractor 40,126 9,145

Fire occupational 1,305

Certifier 435

Plumbing (occupational, provisional, restricted and drainer), including endorsements

16,458

Pool Safety Inspector 845

Refrigeration, airconditioning and mechanical services including unlimited design

542

Refrigeration, airconditioning and mechanical services including limited design

1,744

SEPTEMBER QUARTER INDUSTRY ACTIVITY


TABLE 13: OTHER BUILDING LICENSING STATISTICS – JULY TO SEPTEMBER 2016

MEASURE JUL 2016 AUG 2016 SEP 2016

Applications received 773 845 847

Mutual recognition applications 45 53 60

Owner-builder permit applications 147 160 178

During the September quarter, 58 investigations were closed with the following outcomes.

PLUMBING

TABLE 14: PLUMBING INVESTIGATION OUTCOMES – JULY TO SEPTEMBER 2016

Penalty applied 26

Disciplinary action taken 0

Negotiated outcome 0

Referred 0

Works rectified 0

No evidence to proceed 28

Other 4

Total 58

The 2016 notifiable works audit program for July to September 2016 were:

TABLE 15: TYPE OF NOTIFIABLE WORK AUDIT – JULY TO SEPTEMBER 2016

Audits of companies performing hot water system installations and replacements 64

Audits of real estate agents 5

Audits resulting from investigations 25

Type of Notifiable Work Audit 94


Pool safety laws were introduced in Queensland on 1 December 2010 to help reduce immersion incidents of children in swimming pools. All pools including existing pools must have a barrier compliant with the pool safety standard.

During the September quarter 2016, the following pool safety inspector licensing activities were recorded:

• New licence applications received: 35• Licence renewals: 104• Total number of licences: 845.

The QBCC is responsible for monitoring and enforcing the requirement for pool owners to obtain certificates and refers unsafe pools to local governments, who are required to inspect and may take enforcement action.

During the September quarter 2016 period, QBCC’s Pool Safety Unit received 21 complaints against Pool Safety Inspectors and pool owners. The Unit finalised 24 cases which included cases from previous periods. Eleven non-compliant pools were referred to local government for mandatory inspection.

In the reporting period, pool safety certificates were issued to 7,246 properties with non-shared pools, and 1,536 properties with shared pools. 439 new swimming pools were registered.

POOL SAFETY

TABLE 16: POOL SAFETY ENQUIRIES – JULY TO SEPTEMBER 2016

JUL 2016 AUG 2016 SEP 2016

Average number of enquiries per week 64 86 95


During the September quarter 2016, the QBCC processed 23,459 insurance policies and received more than $27 million in insurance premiums for policies raised in relation to new builds, alterations or additions.

The QBCC paid out a total of $7.9 million in insurance claim costs across 503 (schedules) during the September quarter 2016. This included $2.7 million for non-completion claims, $4 million for defect claims and $1.1 million for subsidence claims.

INSURANCE

TABLE 17: INSURANCE SCHEME POLICIES – JULY TO SEPTEMBER 2016

JUL 2016 AUG 2016 SEP 2016

Number of alterations/additions 4,681 5,494 5,277

Number of new builds 2,357 3,220 2,430

Value of alterations/additions $1,816,322 $2,182,353 $2,142,347

Value of new builds $6,402,405 $8,118,545 $6,963,591

TABLE 18: INSURANCE CLAIMS – JULY TO SEPTEMBER 2016

JUL 2016 AUG 2016 SEP 2016

Non-completion claims (schedules approved) 37 63 41

Non-completion claim cost $612,797 $1,027,385 $1,116,231

Defect claims (schedules approved) 61 90 98

Defect claim cost $1,223,686 $1,276,905 $1,535,305

Subsidence claims (schedules approved) 29 43 41

Subsidence claim costs $290,151 $433,803 $412,490


There were 998 complaints received by the QBCC during the September quarter 2016. The volume of complaints has remained consistent with 909 complaints received in the previous quarter.

BUILDING COMPLAINTS AND DISPUTES

TABLE 19: BUILDING COMPLAINTS AND DISPUTES – JULY TO SEPTEMBER 2016

JUL 2016 AUG 2016 SEP 2016

Complaints received 344 354 300

Directions issued 55 105 54

TABLE 20: MOST COMMON DEFECTS – JULY TO SEPTEMBER 2016

TOTAL

Painting - Internal 191

Roof Cladding – Steel 99

Joinery - Timber 90

Floor Tiling 84

Linings – Ceiling - Internal 80

Painting - External 72

Joinery - Aluminium 70

Joinery – Architraves, Skirting and Trims 64

Joinery - Cupboards 60

Linings – Wall - Internal 50

QBCC’s Technical Standards Unit (TSU) audits the compliance of building works with the National Construction Code (NCC) and relevant Australian Standards. Where non-compliance is noted, builders are encouraged to rectify the defective work to avoid further action by QBCC.

The TSU conducted inspections on 431 building sites comprising a total of 1,079 residential living units during July to September 2016.

The areas of operation this quarter were Brisbane, Gold and Sunshine Coasts, Ipswich and Darling Downs.

Technical Standards Unit


The Industry Intelligence Unit triages all complaint types received by the QBCC.

The Minimum Financial Requirements (MFR) policy commenced on 1 October 2014 following the repeal of the Financial Requirements for Licensing (FRL) policy. The MFR policy has reduced regulatory burden and costs by removing the need for licensees to provide financial information at renewal time. The QBCC is also able to move quickly and decisively to deal with issues of non-payment with the requirement for licensees to pay all debts within agreed trading terms or risk losing their licence. The MFR policy has therefore resulted in a shift in the compliance activities of the QBCC.

During the September quarter 2016, QBCC undertook 80 non-payment of debts investigations resulting in the suspension of 13 licences and the cancellation of 9 licences. QBCC’s ongoing success in getting debts paid continues to draw positive industry feedback with $1,912,662.25 recovered to creditors this quarter. As at 30 September 2016, the QBCC has recovered $11,540,830.42 for creditors since the MFR policy commenced.

BREACHES AND OFFENCES

TABLE 21: COMPLIANCE ACTIVITY – JULY TO SEPTEMBER 2016

JUL 2016 AUG 2016 SEP 2016

Caution issued (suspected breach) 2 2 2

Warning issued (identified breach) 8 2 16

Referred to specialist unit for further investigation 68 42 56

TABLE 22: FINANCIAL INVESTIGATIONS – PAYMENT OF DEBTS – JULY TO SEPTEMBER 2016

Non-payment of debts (MFR) investigations 80

Suspension – non-payment of debts 13

Cancellation – non-payment of debts 9

TABLE 24: LICENCE EXCLUSIONS – JULY TO SEPTEMBER 2016

Company licences cancelled due to exclusion 14

Individual's licences cancelled due to exclusion 27

Permanent exclusions 6

TABLE 23: FINANCIAL INVESTIGATIONS - AUDITS – JULY TO SEPTEMBER 2016

Financial audits 129

Suspension - non-compliance with audit 17

Suspension - not meeting MFR 15

Cancellation - non-compliance with audit 6

Cancellation - not meeting MFR 5


TABLE 25: AUDITS AND INVESTIGATIONS – JULY TO SEPTEMBER 2016

DOMESTIC CONTRACTS COMMERCIAL CONTRACTS

Audits 0 0

Investigations 113 5

Warnings issued 37 1

Contractors issued with Infringement Notices 69 0

Infringement Notices issued 70 0

The QBCC undertakes proactive audits to detect unlicensed contractors unlawfully performing building work.

During the September quarter 2016, there were 61 complaint and audit cases closed in respect of certifiers. Table 28 shows instances where an unsatisfactory finding was determined.

TABLE 26: DEMERIT POINTS ISSUED – JULY TO SEPTEMBER 2016

Unsatisfied Judgment Debts 10

Contractual Offences 644

Failure to Rectify 394

Fail to pay premium 90

Carry out work without nominee 0

Other 74

Total demerit points issued 1,212

TABLE 28: CERTIFIER COMPLIANCE – JULY TO SEPTEMBER 2016

Reprimands issued 4

Direction – enforcement action and ensure certification 2

Licence condition imposed 0

No further action 37

TABLE 27: LICENSING AUDITS – JULY TO SEPTEMBER 2016

JUL 2016 AUG 2016 SEP 2016

Sites Visited 120 148 148

Interviews conducted 391 452 496

Suspected number of unlicensed contractors 1 3 16

Percentage of unlicensed contractors 0.26% 0.66% 3.23%

The QBCC have issued a total of 302 infringement notices to 273 participants for all offences. The most common offences are unlicensed contracting (97 infringements issued), failure to rectify defective work (58 infringements issued), failure to pay an insurance premium (35 infringements issued), advertising offences (15 infringements issued) and improper use of a licence offences (11 infringements issued). In relation to contractual offences, 70 infringement notices were issued for domestic contract offences and none against Part 4A of the QBCC Act (that is, commercial and subcontract offences). Of the 70 infringements issued for domestic contract offences, 34 were for failing to have a compliant contract before commencing work, 21 were for excess deposit offences, seven were for not providing a commencement notice, four were for not providing a consumer guide, two were for foundations data offences, one was for not providing a copy of the contract to the owner and one was for a progress payment offence.


During the September quarter 2016, the average time taken to decide a standard claim was 20 business days from the day of lodgement and 81 business days from the day of lodgement for complex claims. The lowest value claim lodged for this quarter was $378.17 and the largest $2,945,860.53. The average value of fees for this quarter was $16,740.26 and the minimum fee for this quarter valued at $51.75.

During the September quarter 2016, the QBCC saw feedback numbers in suggestions, compliments and service complaints trending upwards for the 2016-17 year. This is a result of the increased ease of submitting and capturing both internal and external feedback.

Further details regarding adjudication decisions can be found on the QBCC website.

ADJUDICATION REGISTRY

CUSTOMER FEEDBACK

TABLE 29: ADJUDICATION REGISTRY - STATUS OF APPLICATIONS – JULY TO SEPTEMBER 2016

JUL 2016 AUG 2016 SEP 2016

Adjudication applications lodged 41 58 49

Adjudication applications withdrawn 22 18 19

Decisions released 31 26 30

TABLE 31: CUSTOMER FEEDBACK STATISTICS – JULY TO SEPTEMBER 2016

Suggestions 68

Compliments 68

Service complaints 283

TABLE 30: ADJUDICATION REGISTRY - VALUE OF APPLICATIONS – JULY TO SEPTEMBER 2016

JUL 2016 AUG 2016 SEP 2016

Claimed amounts $5,801,051.26 $4,267,264.64 $6,708,768.72

Decision released - claimed amounts $1,027,996,464.13 $15,525,371.62 $3,740,915.88

Decision released - adjudicated amounts $615,096,077.96 $10,178,792.10 $2,914,032.77

Decision released - fees $1,098,068.75 $189,121.31 $169,212.41

(all claimed amounts reported excludes GST)


The QBCC’s financial operating result has improved compared to the original budget forecast. The QBCC has seen a slight increase in income and a decrease in expenditure during the first quarter when compared to the original budget for the same period.

The return on investments has been higher than forecasted in the first quarter to due the slight rebound in the global financial markets. The QBCC has also seen an increase in its share of earned underwriting income due to an increase in insurance premiums over the last 12 months. The number of licencing applications received is also higher than forecast. These increases are offset by a lower than expected insurance claims recovery income.

Employee expenses are lower than the budget due to a number of vacant positions. This is not expected to continue for the full financial year. Supplies and services expenses are also less than the budget due to the review of current projects and the timing of initiatives which will be rolled out later in the financial year. The claim approval expenses is lower than forecasted but this is likely to increase through the financial year.

FINANCIAL COMMENTARY

INCOME

EXPENSES

FINANCIAL MANAGEMENT


INCOME STATEMENT (UNAUDITED)

YTD Q1

ACTUAL

$’000

YTD Q1

BUDGET

$’000

VARIANCE

$’000

ORIGINAL

BUDGET FULL

YEAR $’000

INCOME FROM CONTINUING OPERATIONS

Licence revenue 8 977 8 756 221 34 603

Premium revenue 22 030 21 425 606 90 983

Reinsurance and other recoveries revenue 15 604 20 091 (4 487) 76 909

Administration fees revenue 4 737 4 912 ( 175) 21 214

Investment revenue 5 609 1 797 3 813 7 275

Other revenue 1 742 1 547 195 6 152

Total Revenue 58 700 58 528 172 237 136

Gain/(Loss) on disposal of assets 7 ( 4) 11 ( 23)

Total Income from Continuing Operations 58 707 58 524 183 237 113

EXPENSES FROM CONTINUING OPERATIONS

Outward reinsurance 12 995 11 943 (1 052) 50 856

Claims approved and charged 12 129 16 489 4 360 63 668

Employee expenses 10 439 11 696 1 258 48 574

Supplies and services 6 246 9 080 2 834 31 883

Depreciation and amortisation 641 756 114 3 516

Impairment losses 6 598 10 516 3 918 40 598

Other expenses 121 145 24 2 777

Total Expenses from Continuing Operations 49 170 60 625 11 455 241 871

Operating Result for the Year 9 537 (2 101) 11 638 (4 757)


BALANCE SHEET (UNAUDITED)

YTD Q1

ACTUAL

$’000

YTD Q1

BUDGET

$’000

ORIGINAL

BUDGET FULL

YEAR $’000

CURRENT ASSETS

Cash and cash equivalents 11 642 7 205 7 205

Receivables 23 550 24 490 26 749

Reinsurance receivables 28 625 28 625 30 625

Other financial assets 226 310 220 301 230 342

Other current assets 25 025 24 380 27 390

Total Current Assets 315 152 305 001 322 311

NON-CURRENT ASSETS

Reinsurance receivables 86 922 86 922 90 617

Leasehold restoration paid in advance 48 48 -

Intangible assets 9 804 9 872 8 933

Property, plant and equipment 3 856 4 005 3 734

Total Non-Current Assets 100 630 100 847 103 283

Total Assets 415 783 405 848 425 594

CURRENT LIABILITIES

Payables 34 395 37 573 41 782

Accrued employee benefits 4 422 4 406 4 065

Provisions 258 312 112

Unearned revenue 77 767 76 255 82 262

Future claims and associated costs 51 465 51 465 51 465

Total Non-Current Assets 168 307 170 010 179 685

NON-CURRENT LIABILITIES

Accrued employee benefits 5 537 5 537 5 745

Provisions 723 723 715

Future claims and associated costs 161 575 161 575 174 103

Total Non-Current Liabilities 167 836 167 836 180 563

Total Liabilities 336 142 337 846 360 249

Net Assets 79 640 68 002 65 346

Equity Accumulated surplus 79 640 68 002 65 346

Total Equity 79 640 68 002 65 346


Table 1: Customer satisfaction success measures 4

Table 2: Customer relationship management system success measure 5

Table 3: Regulatory effectiveness and customer confidence success measures 6

Table 4: Business efficiency gains and reduction in cost to serve success measures 7

Table 5: Licensing success measures 7

Table 6: Dispute resolution success measures 8

Table 7: Internal Review success measures 8

Table 8: Insurance success measures 9

Table 9: Compliance and enforcement success measures 9

Table 10: Payment dispute resolution success measures 9

Table 11: Increased customer-focussed and capable workforce success measures 10

Table 12: Licensees by category as at 30 September 2016 11

Table 13: Other building licensing statistics – July to September 2016 12

Table 14: Plumbing investigation outcomes – July to September 2016 12

Table 15: Type of Notifiable Work Audit – July to September 2016 12

Table 16: Pool safety enquiries – July to September 2016 13

Table 17: Insurance scheme policies – July to September 2016 14

Table 18: Insurance claims – July to September 2016 14

Table 19: Building complaints and disputes – July to September 2016 15

Table 20: Most common defects – July to September 2016 15

Table 21: Compliance activity – July to September 2016 16

Table 22: Financial investigations – payment of debts 16

Table 23: Financial investigations - audits 16

Table 24: Licence exclusions 16

Table 25: Audits and investigations – July to September 2016 17

Table 26: Demerit points issued – July to September 2016 17

Table 27: Licensing Audits – July to September 2016 17

Table 28: Certifier compliance – July to September 2016 17

Table 29: Adjudication registry - Status of applications 18

Table 30: Adjudication registry - Value of applications 18

Table 31: Customer feedback statistics 18

INDEX OF TABLES



299 Montague Road, West End Qld 4101

GPO Box 5099, Brisbane Qld 4001

T: 139 333 F: 07 3225 2999

W: qbcc.qld.gov.au

Need more information?

Visit qbcc.qld.gov.au or call us on 139 333.

Documents

September 2016 QUARTERLY REPORT€¦ · TABLE 1: CUSTOMER SATISFACTION SUCCESS MEASURES - JULY TO SEPTEMBER 2016 MEASURE TARGET ACTUAL STATUS COMMENTS Overall customer satisfaction