WQRA Annual Report 2007 - 2008

Water Quality Research Australia Limited

2007 - 2008

Annual Report

The Financial Report Covers:

Water Quality Research Australia LimitedABN 32 127 974 2611

ACN 127 974 261

Registered Trading Address:

Level 13, 77 Grenfell Street, Adelaide 5000

Hodgson Road, Bolivar, South Australia

Telephone: (08) 8259 0351

Fax: (08) 8259 0228

Email: [email protected]

www.waterquality.org.au

Contents

Chairman’s Report 2

CEO’s Report 3

Executive Summary 4

Aims of WQRA 4

Background 4

Founding Members 5

Governance and Management 6

Board of Directors 6

Scientific Advisory Committee 6

Regulatory Advisory Committee 7

Appointment of Chairman 7

Appointment of CEO 7

Other key staff 7

Transition from CRC 8

Transfer of Copyright 8

Transfer of IP 8

Uncompleted CRC Reports 8

Membership of GWRC 8

Website 8

Technology Transfer 8

Education Program 9

Summer Research Scholarships 9

Nancy Millis Scholarship 9

Research Programs 10

Wastewater Program - Background 10

Research Projects Underway 12

Finance Report 14

2 | Water Quality Research Australia Ltd Annual Report 2007-2008

Chairman’s Report

With the establishment of Water Quality Research Australia Ltd (WQRA), the

Australian Water Industry and its Research Partners must be congratulated for

having created a strong foundation to deliver the long-term strategic water

quality research needs of the Australian Water Industry. It also marks the successful transition

from the Cooperative Research Centre for Water Quality and Treatment (CRC WQ&T) to

a member-owned research organisation that is better able to focus on the needs of its

stakeholders. Through its participants, WQRA is also well-positioned to build on the strong

national and international reputation of the CRC WQ&T for high quality research.

It has been a great privilege to serve as the Interim Chair of WQRA and I would like to thank

the Implementation Committee and the Interim Board for their contributions, support and

assistance in developing and establishing WQRA.

Moving forward, WQRA now has in place a high calibre Board of Directors and Management

Team that is working hard to deliver for its members.

Keith Cadee

Interim Chairman

Keith Cadee

Water Quality Research Australia Ltd Annual Report 2007-2008 | 3

CEO’s Report

Jodieann Dawe

Expanding populations in Australia’s capital cities, coupled with the variability in rainfall and the increasing impact of climate change are resulting in decreased yields in many water supply catchments. This has resulted in an increased need for urban water utilities to seek

new and alternative sources of water, whilst protecting public health and ensuring continued high standards in the quality of drinking water.

Funding for the CRC for Water Quality and Treatment under the Commonwealth’s Cooperative Research Centres Program was scheduled to expire 30 June 2008 but the need for an ongoing National research centre with a core focus on research and development in the area of water quality was not diminished. The Governing Board of the CRC, in conjunction with Water Services Association of Australia and representatives of the water industry and research community, invested significant time and energy, over an 18 month period, into determining and developing a national water centre that would build on the successes of the CRCWQT and its associated Wastewater Program.

What has resulted is Water Quality Research Australia Limited, an incorporated company, registered as a public company limited by guarantee and supported and funded by its Members. The research activities of WQRA are focused on investigating issues that affect public health and WQRA will work closely with state/territory/federal regulators to ensure that research agendas are designed to provide high quality and relevant scientific outcomes which will be available to its members and the community.

For WQRA to achieve long term viability and continued creditability, the organisation needs to be able to provide delivery of high quality research on priority issues for the Australian Water Industry which are pertinent to the challenges that Members are confronting. The next 12 months will be a growing and exciting time for WQRA as the organisation undertakes the recruitment of key staff, development and implementation of the Research Portfolio and the formation of both national and international networks which will add value to the Members and WQRA’s Research Programs.

As WQRA moves into it first full year of operations, I look forward to working with Members, the WQRA Board and other stakeholders to ensure that the organisation fulfils its potential to deliver exceptional outcomes in water quality research.

Jodieann Dawe

CEO


WQRA Annual Report 2007-08

Executive Summary

The aims of WQRA are to:• Conductandadvocateforhighqualityresearchonthepriorityissuesforthe

Australian Water Industry, including urban, peri-urban and regional water supplies relating to public health and acceptability aspects of water supply, water recycling and relevant areas of wastewater management.

• Adoptarisk-basedapproachtoresearchinordertounderpintheimplementation and further development of relevant Australian guidelines for drinking water and recycled water.

• Facilitateknowledgetransferandtheup-takeoftheoutcomes of the research in the industry.

BackgroundSince 1995, the Australian urban water industry has been the major beneficiary of a successful collaborative venture, established under the Australian Government’s Cooperative Research Centres Programme, and called the Cooperative Research Centre (CRC) for Water Quality and Treatment. The various agreements establishing this collaborative venture expired on 30 June 2008.

The task of creating a new entity to continue the thirteen year collaboration, but outside of the Cooperative Research Centres Programme, began in earnest in 2006 with the decision by the boards of the CRC and the Water Services Association of Australia (WSAA) to establish, jointly, an Implementation Committee.

The legal entity Water Quality Research Australia Limited (WQRA) came into existence on 12 October 2007 under Australian Corporations law. The Interim Board had three directors, Keith Cadee (Water Corporation), Adam Lovell (Sydney Water) and John Howard (SA Water), with Keith Cadee serving as the Interim Chairman. George Turelli provided secretarial support. The Implementation Committee, which included those same individuals, had completed its task.


Industry Member RepresentativeAustralian Water Association Ltd Mr Tom MollenkopfDegrémont Pty Ltd Mr Matthew HuttonBarwon Region Water Corporation Dr William BuchananCentral Highlands Water Mr Neil BrennanCity West Water Ltd Ms Jacqueline MekkenColiban Region Water Corporation Dr Dharma DharmabalanDept of Human Services (Vic) Ms Jan BowmanGoulburn Valley Regional Water Corporation Mr Allen J GaleGrampians Wimmera Mallee Water Corporation Mr Paul AthertonHunter Water Corporation Mr Russell PascoeMelbourne Water Corporation Dr Melita StevensPower & Water Corporation Mr Andrew MacridesSouth East Water Limited Dr Hamish ReidSydney Catchment Aurthority Dr Brian SpiesSydney Water Corporation Dr Judi HansenUnited Water International Pty Ltd Dr Stephanie Rinck-PfeifferWannon Region Water Corporation Mr Ian BailWater Corporation of WA Mr Keith CadeeYarra Valley Water Ltd Mr David SnaddenSouth Australian Water Corporation Ms Anne HoweCentral Gippsland Regional Water Corporation Mr David MawerResearch Member RepresentativeAustralian Water Quality Centre Dr John HowardCentre for Appropriate Technology Mr Peter TaylorCurtin University of Technology Mr Tony TateFlinders University Prof Howard FallowfieldMonash University Dr Martha SinclairRMIT University Prof Felicity RoddickThe University of Queensland Assoc Prof John MottUniversity of Adelaide Prof Graeme DandyUniversity of NSW Prof David WaiteUniversity of SA Prof Caroline McMillenUniversity of Wollongong, Faculty of Engineering Assoc Prof (Siva) Muttucumaru SivakumarUniversity of Technology, Sydney Prof Saravanamuth VigneswaranVictoria University Prof Stephen GrayGriffith University Mr Larry LittleGeneral Member RepresentativeCradle Coast Water Mr Casey van EysdenDepartment of Water (WA) Mr Nigel MantleEsk Water Authority Mr Barry CashLower Murray Urban and Rural Water Corporation Mr Ron LeamonNSW Department of Health Dr Paul ByleveldOrica Australia Pty Ltd Mr David HardyNSW Water Solutions, Commerce Mr Kamal Fernando

Founding Members of WQRA

Executive Summary

Membership of WQRAThree initial categories of membership have been established for WQRA, consisting of General Members, Industry Members and Research Members. Industry members are classified into three bands according to their size, with corresponding differences in the level of financial contribution and voting rights for determination of research priorities. The number of Members is unlimited and additional categories of membership may be created in future if required.


Governance and Management

Board of DirectorsElections were conducted for seven members of the Board of Directors of WQRA. All forty founding members of WQRA were entitled to participate in a ballot for four directors from amongst industry members and three from amongst research members. The results of the ballot were formally announced at the first general meeting of members of WQRA, held in Adelaide on Monday 3 December 2007. That meeting was adjourned and resumed by teleconference one week later, when the election of the seven members of the Board of WQRA was confirmed. Keith Cadee (Water Corporation), Adam Lovell (Sydney Water), Anne Howe (SA Water), Jan Bowman (DHS), Professor John McNeil (Monash University), Professor Chris Davis (UTS) and Dr John Howard (AWQC) are the directors of WQRA Limited. George Turelli was appointed interim company secretary. Industry members Keith Cadee and Adam Lovell were elected for two-year terms while Anne Howe and Jan Bowman were elected for one-year terms. Research members, John Howard and Chris Davis were elected for two-year terms and John McNeil for a one-year term.Meetings of the members and Board of WQRA were chaired by Interim Chairman Keith Cadee. Under Clause 50 of the constitution of WQRA, Keith was required to continue in this role until an Independent Chairman was appointed by the Board. The WQRA Board developed some key working groups for moving forward, including for selection of the CEO and the Independent Chairman. A committee of three chaired by Adam Lovell managed the appointment of a CEO.

A committee of three chaired by Keith Cadee was responsible for the appointment of the Independent Chairman.On 15 February 2008 Adam Lovell left Sydney Water Corporation to work for the Water Services Association of Australia (WSAA), thereby vacating his position on the WQRA Board. Dr Dharma Dharmabalan from Coliban Water in Victoria was elected to fill the vacancy.The Board also considered the development of a Scientific Advisory Committee and a Regulatory Advisory Committee, pursuant to Clause 7 of the Members Agreement. These two Advisory Committees will be established to assist the Board, the CEO and the Research Program Managers in developing, conducting and evaluating the activities of WQRA.

Scientific Advisory CommitteeProfessor John McNeil was appointed Chairperson to lead this committee which will: (a) Advise on the nature and scope of the strategic

research required to address the major water quality issues related to drinking water, recycled water and relevant areas of water management in Australia;

(b) Provide advice on the quality and cost-effectiveness of the research program funded by the WQRA;

(c) Provide advice on research priorities; (d) Suggest research areas and strategies

appropriate to address looming issues for the water industry; and

(e) Advise on the research capability needed by WQRA to allow it to undertake strategic research.

Members

Regulatory Advisory Committee

Program ManagerDrinking Water

EA to CEO

WQRA Board

Program Manager Wastewater

Chief ExecutiveOfficer

Scientific AdvisoryCommittee

Chief OperatingOfficer

Organisation Structure


WQRA Chairman Professor Michael R Moore and CEO Jodieann Dawe

Professor Moore received his BSc Honours degree in Biochemistry in 1967; his PhD in Medicine in 1971 and a Doctorate in Science in the field of biochemistry in medicine in 1987, all from the University of Glasgow. He has been a Professor in Medicine at the University of Queensland since 1994. He is also an Adjunct Professor of Public Health in Griffith University, an Adjunct Professor in Queensland University of Technology and an Adjunct Professor in the Faculty of Science, Sunshine Coast University.

He is a registered Toxicologist, (Eurotox & Institute of Biology, United Kingdom) and a founder member of the Australasian College of Toxicology and Risk Assessment (ACTRA), He is also a director of the Australian Centres for Human Health Risk Assessment.

Professor Moore worked previously in the University of Glasgow, where he was Reader in Medicine and Therapeutics. He was a director of Monklands and Bellshill NHS Hospital Trust in Scotland and has been a Justice of the Peace. Michael has written several books and numerous book chapters and over 500 research publications. His fields of interest include the toxicology of metals, risk assessment, air and water quality, cyanobacterial toxins and disorders of porphyrin metabolism.

Governance and Management

Regulatory Advisory Committee of WQRA Ms Jan Bowman was appointed Chairperson to lead this committee which will: (a) Advise the Board on emerging regulatory and

health issues; (b) Provide input to research strategies; (c) Advise on science needed to underpin

progressive health regulation; and (d) Advise on how research outputs may be

integrated and incorporated into guidelines and regulations.

Appointment of Chairman of the BoardBrisbane-based Professor Michael R. Moore agreed to become Chairman of the Board of WQRA Limited. Under the terms of its Constitution, the appointment required the unanimous approval of the members and will be for three years. Announcing Professor Moore as the Board’s recommended Chairman, the Interim Chairman of the WQRA Board, Keith Cadee said that Professor Moore was both well-known and respected in the Australian urban water industry and in medical research circles here and internationally for his work as Director of the National Research Centre for Environmental Toxicology (EnTox) at Coopers Plains in Brisbane.Professor Moore’s employment by the University of Queensland until February 2009 was not consistent with certain provisions in the Constitution of WQRA, however the Board believed that Professor Moore has such outstanding qualities to be Chairman of WQRA and a proven history of independence that, in recommending Professor Moore to members, the Board also recommended that a new clause be added to the Constitution that would remove the obstacle to his appointment created by his remaining period of employment with the University of Queensland. Professor Moore was elected unanimously by the Members as Independent Chairman and Director on 11 July 2008.

Appointment of CEO of WQRAJodieann Dawe was appointed CEO of WQRA and commenced in Adelaide on Monday 2 June 2008. Jodieann has a BSc (Hons) degree from Flinders University of South Australia, a Master of Applied Science degree in colloid chemistry from the University of South Australia, a Graduate Diploma of Business Administration from the University of Adelaide, and an MBA from Deakin University amongst her professional qualifications.

Her recent positions have included Managing Director of a start-up not-for-profit organisation limited by guarantee called Arc@UNSW; Manager Research Operations for producer-owned company Meat and Livestock Australia Limited; and Business Development Manager at University of NSW based technology transfer and commercialisation company Unisearch Limited.

Other key staff In April 2008, WQRA began the recruitment process for key staff members - Executive Assistant, Program Manager - Wastewater, Program Manager - Drinking Water, and the Chief Operating Officer. It is crucial that the people chosen to fill these positions not only have exceptional skills and expertise in their areas, but also have strategic alignment with the goals that WQRA and its members are aiming to achieve.


Transfer of CopyrightThe Board of WQRA welcomed the proposal by CRC for Water Quality and Treatment parties to transfer copyright of all publications to WQRA. This will facilitate the continuing availability of the full suite of CRC publications, including research reports and the CRC for Water Quality and Treatment Website.

Transfer of IPCarbon Regen is a company established to commercialise a novel technique for regenerating spent activated carbon. Negotiations are being conducted with potential users of the technique. The shares were divided between the CRC and two CRC participants. The CRC shares have been transferred to WQRA.

The IP developed in CRC projects was divided between the direct project participants but with 10% held by the CRC. In order to facilitate future use of the IP the CRC share has been allocated on a pro-rata basis to the project participants United Water, RMIT and SA Water.

Uncompleted CRC ReportsIn order to minimise a loss of momentum in the transition from the CRC to WQRA a number of projects were started in the CRC with the intention of transferring them to WQRA. None of these projects were required to meet Commonwealth milestones and the funding sources include the American Water Works Association Research Foundation, the National Water Commission and additional CRC participant contributions.

For some projects the research has been completed but final reports have not been provided. The CRC instigated a policy of withholding 10% of the project budget until the report is received. Those funds have been transferred to WQRA for payment to the research provider once the report has been accepted.

Membership of GWRCWQRA was granted membership of the Global Water Research Coalition (GWRC) at the board meeting in Singapore in June 2008. The GWRC collaboration formed in April 2002 in Melbourne with the signing of a partnership agreement at the International Water Association 3rd World Water Congress. Both WSAA and the CRC for Water Quality and Treatment were foundation members of the GWRC.

WebsiteThe current WQRA web page (www.waterquality.org.au) is a very basic version and has been established as an interim measure while longer term planning for IT, communication and research management needs is undertaken. It is planned to develop a new, more sophisticated website and have it operational by 1 July next year.

Technology TransferThe reports on scientific outcomes from the CRC have been transferred to WQRA which will continue technology transfer to the CRC participants. The CRC has provided funds for WQRA to employ a technology transfer position for 12 months to ensure the on-going transfer of CRC outcomes.

Transition from CRC


Education Program

WQRA Education ProgramWQRA has committed to continue supporting a strong education focus in acknowledgement of the high value to the industry of the graduates trained within the model developed in the CRC.

The WQRA Implementation Committee agreed to conduct a Summer Research Scholarship program for 2007-08 and fund six scholarships in its first year. The CRC managed this program on behalf of WQRA.

2007-08 WQRA/CRC Summer Research Scholarships These scholarships provide talented undergraduates with career and research opportunities relevant to the needs of the Australian water industry. Applicants for these projects are expected to be currently completing the third or fourth year of degree programs but often have qualifications exceeding this requirement.

The scholarships are of approximately 10 weeks duration, between November and March.

Applications for the 2007-08 scholarships closed on 5 October 2007. Nine Summer Scholarship projects were allocated funding. Projects in this year were in Sydney, Melbourne and Adelaide only.

In addition to the six WQRA scholarships, the CRC Board, at its September meeting, approved three additional CRC Summer Research Scholarships for 2007-08.

The Summer Research Scholarship Seminar enables the students to present their findings to each other and to an audience of CRC and water industry personnel, including Emeritus Professor Nancy Millis, Chairman of the CRC and a staunch supporter of the Education and Training Program.

The 2008 Summer Research Scholarship Reporting Seminar was held at the Ibis Hotel in Melbourne on Thursday 21 February. Nancy Millis and Keith Cadee selected three of the students to receive awards for the quality of their research and presentations. The winner this year was Jenny Cheng (UNSW), with Chris Miller (UNSW) and Liu Fei Tan (AWQC) sharing the second prize. The seminar was followed by a dinner for scholarship holders in Carlton.

The day following the seminars, Melbourne Water Corporation hosted a technical tour for the

scholarship holders. The tour included site visits to a catchment, historic aqueduct, reservoir and water treatment plant.

Nancy Millis Scholarship This prestigious scholarship has been established in honour of Emeritus Professor Nancy Millis AC MBE, former Chair of the CRC for Water Quality and Treatment and a staunch supporter of the Education and Training Program.

Professor Millis is a microbiologist of international repute who has made enormous contributions in agriculture, environmental protection, medicine and engineering. Nancy Millis was only the fourth woman to be appointed as a Professor at the University of Melbourne, her achievements recognised with the award of a personal chair in 1982.

L-R Nancy Millis, students Chris Miller, Jenny Cheng and Liu Fei Tan and Keith Cadee

As a researcher she was aware early of the importance of clean water and developed techniques to treat industrial wastewater. In 1992, Professor Millis was appointed the first female Chancellor of La Trobe University. She was Chair of the Victorian Government’s Water Strategy Committee advising on the supply and use of water for the Melbourne area. Nancy was the Chairman of the Cooperative Research Centre for Water Quality and Treatment from 1995 until it ended in 2008. Her integrity, persistence, forthrightness and the ability to collaborate with others to achieve a successful outcome are some of her outstanding characteristics. In 1977, she became a Member of the British Empire (MBE) and in 1990 was made a Companion of the Order of Australia (AC).

This scholarship honours her commitment to and deep interest in encouraging and developing skilled young water professionals.


Research Programs

Research Portfolio

WastewaterProgram

Recycled WaterProgram

Drinking WaterProgram

EducationProgram

Research ProgramsWQRA will focus on collaborative research of national application with a focus on drinking water quality, recycled water and relevant areas of wastewater management. The primary aims of WQRA are to:

• Conductandadvocateforhighqualityresearchon the priority issues for the Australian Water Industry, including urban, peri-urban and regional water supplies relating to public health and acceptability aspects of water supply, water recycling and relevant areas of wastewater management.

• Adoptarisk-basedapproachtoresearchinorderto underpin the implementation and further development of relevant Australian guidelines for drinking water and recycled water.

• Facilitateknowledgetransferandtheuptakeofthe outcomes of the research in the industry.

The main focus of the research program will be on urban water issues related to public health and acceptability aspects of water supply, water recycling and aspects of wastewater management. WQRA will also continue a Regional and Rural Water Supplies Program aimed at improving water quality and public health in rural areas.

WQRA will manage the completion of several research projects commenced under the CRC for Water Quality and Treatment, and also take over responsibility for projects in the Wastewater Program of the CRC.

WQRA will have three primary Research Programs – Drinking Water, Wastewater and Recycled water.

Wastewater Program – BackgroundEarly in the second term of the CRC for Water Quality and Treatment, the concerns of a number of industry partners regarding some significant emerging issues resulted in discussions about initiating a separate research Program in the area of Wastewater. In 2002 the CRC approached members for funds to support the development of this strategic research agenda which lay outside the bounds of the agreement between the Centre and the Commonwealth Government.

The contributions from numerous members of the CRC enabled the appointment of Judy Blackbeard, an experienced professional, to develop this program beginning in July 2003.

On 6 October 2004 the CRC Chairman wrote to the Chairman of the CRC Committee to notify the organisation of the CRC for Water Quality and

Research Program Structure


Research Programs

Treatment’s initiative, “Developing a National Wastewater Strategy for the Australian Water Industry”. As the initiative was outside of the activities and budget of the CRC there was no requirement to vary the Commonwealth Agreement.

The understanding, however, was that the CRC’s involvement in this initiative would not affect adversely its capacity to meet the outcomes it undertook to achieve under the Commonwealth Agreement.

The CRC Committee was very supportive, wishing the CRC and its participants every success with the Wastewater Strategy. …“We are all aware of the national importance of water resources and, in particular, the need to investigate new avenues for healthy water supply.”

A gathering of CRC participants at a workshop in November 2003 decided on a shortlist of 24 research priorities. These were ranked to establish clearly which were of highest priority.

Based on the ranking the first five projects were chosen for further development in the Wastewater Program:

1. Recycled Water: Management of third pipe systems including pathogen regrowth

2. The Receiving Environment: Chemicals of concern in wastewater treatment plant effluent including chlorination by-products and looking at whole effluent toxicity

3. Biosolids: Risk assessment for pathogens and organic contaminants in biosolids

4. Recycled Water: Development of useful indicators and rapid detection techniques for monitoring of reclaimed water

5. Publication of Sydney Water Corporation’s biosolids data


Research Programs

Judy Blackbeard continued in the role of Program Leader in the CRC until her appointment to a position at Melbourne Water in late 2006. After this, Associate Professor Heather Chapman and Dr Dan Deere assumed joint stewardship of projects in the Wastewater Program until the appointment of a new Program Manager.

Research Projects UnderwayWith the project agreement for “A National Approach to Health Risk Assessment, Risk Communication and Management of Chemical Hazards from Recycled Water” signed on behalf of WQRA in December 2007, its first new research project was formally under way.

The project budget is more than $2 million, including $1,015,000 from the Australian Government Water Fund under the ‘Raising National Water Standards’ programme, this project will develop a toolbox of biomonitoring techniques for recycled water.

The project will establish linkages with two other ‘Raising National Water Standards’ projects: “Development of an Ecotoxicity Toolbox to Evaluate Water Quality for Recycling” managed by the Western Australian Department of Water, and “Recycled Water Quality Standards”, a project which has also received funding from the Queensland Government.

This new project will also establish linkages with those developing the National Guidelines for Water Recycling – Phase 2.

The Board of WQRA formally agreed to the transfer of ongoing projects from the CRC for Water Quality and Treatment to WQRA – to take effect on 1 July 2008.


Research Programs

Drinking water Program

Project Title Agencies involved

Optimal Water Quality to Minimise Distribution System Problems Water Corporation, SA Water, Grampians, Orica, United Water

Health Services Utilisation and Urban Dual Reticulation Monash University

Biological Processes for Dissolved Organic Carbon Removal University of Queensland

Methods for Measuring Toxins in Finished Waters AWQC, AwwaRF

Novel methods for Algal management: Alternatives to Copper Sulphate AWQC, AwwaRF

Implications for Enumeration, Toxicity and Bloom Formation AWQC, AwwaRF

Evaluation of Integrated Membranes for Taste and Odour and Algal Toxin Control

AwwaRF

Guidelines and Best Practice Documentation - Water Supply in Remote Indigenous Communities

CAT, National Water Commission

Wastewater Program

Project Title Agencies involved

Pathogen risk indicators for wastewaters and biosolids RMIT

Fate of pathogens following land application of biosolids CSIRO, Curtin

Organohalogen compound in biosolids RMIT University

Endocrine disrupting effects of sewage contaminated waters on aquatic biota

Univ Technology Sydney

Chlorination DBPs in wastewater Griffith University

Selected organic contaminants in biosolids CSIRO L&W

Pathogen risk and nutrient status of air-dried biosolids Smart Water Fund, Dan Deere

Detection of cross connections in water re-use systems CSIRO, SEWL, SWC, YVW, MWC

Ecotoxicity Toolbox to evaluate water quality for recycling NWC, UQ, GU, DWWA, UNSW, Water Corporation

A national approach to risk assessment, risk communication and Management of chemicals in recycled water

NWC, SWC, MW, ACTEW, United Water

WQRA Projects at 30 June 2008


Finance Report

WATER QUALITY RESEARCH AUSTRALIA LIMITED

A.C.N. 127 974 261

FINANCIAL REPORT FOR THE PERIOD FROM 12 OCTOBER 2007 TO 30 JUNE 2008

Directors' Report 15

Directors' Declaration 17

Income Statement 18

Balance Sheet 18

Cash Flow Statement 18

Notes to the Financial Statements 19

Detailed lncome Statement 21

Auditor's lndependence Declaration 22

lndependent Auditor's Report 23


Finance Report

DIRECTORS' REPORT FOR THE PERIOD FROM 12 OCTOBER 2OO7 TO 30 JUNE 2OO8

Names of DirectorsThe Directors in office at any time during the reporting period and up to the date of this report were:

K Cadee (appointed 6th Nov 2007)A Lovell (appointed 6th Nov 2007, resigned 15th Feb 2008)D Dharmabalan (appointed 26th Mar 2008)A Howe (appointed 3rd Dec 2007)J Howard (appointed 6th Nov 2007)C Davis (appointed 3rd Dec 2007)J McNeil (appointed 3rd Dec 2007)J Bowman (appointed 3rd Dec 2007)J Dawe (appointed 17th Jun 2008)

Principal ActivitiesThe principal activities of the company during the financial period were to co-ordinate funding for research into water quality and waste water treatment.

ResultsThe company’s trading result for the financial period from 12th October 2007 (the date of the company's incorporation) to 30 June 2008 was a profit (after tax) of $128 082.

DividendsNo dividends were paid during the reporting period. The company being a limited by guarantee has no shareholders.

Share OptionsThe company has not granted options to any persons to have shares issued to them.

Review of OperationsThe company received contributions from various sources to fund water quality and waste water treatment research projects and commenced planning for the on-going funding of such projects.

Changes in State of AffairsNo significant changes in the state of affairs of the company occurred during the financial period.

After Balance Date EventsNo matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations, the results of those operations, or the state of affairs of the company in subsequent financial years.


Finance Report

DIRECTORS’ REPORT (continued)

Likely Developments and ResultsInformation on likely developments in the company’s operations and the expected results of those operations are not reported as it is the directors’ opinion that it would prejudice the company’s interests.

Directors' BenefitsNo director has received or become entitled to receive, during or since the financial period, a benefit because of a contract made by the company, controlled entity or a related body corporate with the director, a firm of which the director is a member or an entity in which the director has a substantial financial interest.

Directors' and Auditors' IndemnificationThe company has not, during or since the financial period, in respect of any person who is or has been an officer or auditor of the company or a related body corporate:- indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer,

including costs and expenses in successfully defending legal proceedings; or - paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer

for the costs or expenses to defend legal proceedings.

Signed in accordance with a resolution of the Directors.


DIRECTORS’ DECLARATION

Finance Report


INCOME STATEMENT for the period from 12 October 2007 to 30 June 2008

Note 2008 ($) 2007 ($) Revenue 2 299,217 - Expenditure Preliminary expenses (95,111) - Salaries (22,909) - lnsurance – D&O (7,500) - Other expenses (45,615) - Profit (loss) before income tax expense 128,082 - lncome tax expense 1(c) - -

Profit for the year 128,082 -

BALANCE SHEET as at 30 June 2008

Note 2008 ($) 2007 ($) CURRENT ASSETS Cash and cash 3 2,687,496 - Debtors 195,800 - Total Current Assets 2,883,296 -

TOTAL ASSETS 2,883,296 -

CURRENT LIABILITIES Trade Creditors 36,135 - GST Payable 97,625 - lncome in advance 1(d) 2,621,454 - TOTAL CURRENT LIABILITIES 2,755,214 -

TOTAL LIABILITIES 2,755,214 -

NET ASSETS 128,082 - EQUITY Retained earnings 4 128,082 -

TOTAL EQUITY 128,082 -

CASH FLOW STATEMENT for the period from 12 October 2007 to 30 June 2008

Note 2008 ($) 2007 ($) Cash Flows from Operating Activities Receipts from participants and other contributors 2,788,279 - Interest received 34,217 - Payments to suppliers and others (135,000)

Net cash provided by operating activities 6 2,687,496 -

Net increase in cash held 2,687,496 Cash at the beginning of the year - -

Cash at the end of the year 3 2,687,496 -

Finance Report


The accompanying notes form part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 12 OCTOBER 2OO7 TO 30 JUNE 2OO8

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of AccountingThis financial report is a special purpose financial report prepared for use by directors and members of the company. The directors have determined that the company is not a reporting entity.

The financial report has been prepared in accordance with the requirements of the following Australian Accounting Standard:

AASB110 Events after the Balance Sheet Date

No other Australian Accounting Standards, Urgent lssues Group Consensus View or other authoritative pronouncements of the Australian Accounting Standards Board are mandatory and none have been applied.

The financial report is prepared on an accrual basis, using the historic cost convention, and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets.

The company’s Income Statement, Balance Sheet and Statement of Changes in Equity have been prepared on an accrual basis, in accordance with the historical cost convention. The Cash Flow Statement has been prepared on a cash basis.

The financial report has been prepared for the trading period from the date of the company’s incorporation (12 October 2007) to 30 June 2008, and is presented in Australian currency. There are no comparative figures prior to the date of incorporation.

Prior to and during the early stages of the company’s incorporation the CRC incurred preliminary, formation and ongoing expenses on behalf of the company, and that the company subsequently reimbursed the CRC for the expenses which the CRC incurred on the company’s behalf.

(b) Going ConcernThe financial statements have been prepared on a going concern basis, as the directors have reasonable grounds to believe that the company will have such financial support from its participants as may be required for normal operations.

(c) lncome TaxNo income tax is expected to be paid by the company as it is anticipating income tax exempt status to be approved by the Australian Taxation Office.

(d) Contribution RevenuesInitial funding received from contributors to meet formation costs and other start up costs of the company is recognised as income for the reporting period. Funding received by the company from participants and other contributors for future research activities that are yet to commence is treated as income in advance and is included in the company’s current liabilities as balance date.

Finance Report


2. REVENUE

2008 ($) 2007 ($)

Initial contributions 265,000 -

Interest received 34,217 -

Total revenue 299,217 -

3. CASH & CASH EQUIVALENTS

2008 ($) 2007 ($)

Cash at Adelaide Bank 2,687,496 -

2,687,496 -

4. STATEMENT OF CHANGES IN EQUITY

Retained Earnings ($)

Total Equity ($)

Balance at 12 October 2007 - -

Profit for the period ended 30 June 2008 128,082 128,082

Balance at 30 June 2008 128,082 128,082

5. COMPANY DETAILS

The company is a public company limited by guarantee registered in Australia. Its registered office and principal place of business are situated at: 77 Grenfell Street, Adelaide, SA 5000.

6. CASH FLOW STATEMENT

Reconciliation of profit after income tax to net cash provided by operating activities;

Profit after income tax 128,082(Increase) Decrease in current assets

Trade Debtors (195,800)Increase (Decrease) in current liabilities

Creditors 36,135

GST Payable 97,625

Income in Advance 2,621,454

Net cash provided by operating activities 2,687, 496

Finance Report


DETAILED INCOME STATEMENT

for the period from 12 October 2007 to 30 June 2008 2008 ($) 2007 ($)

INCOME

Initial Contributions 265,000 -

Interest received 34,217 -

299,217 -

EXPENDITURE

Advertising costs 12,090 -

Auditor’s remuneration – accounting services 1,000 -

Chairperson Expenses 1,232 -

Executive salaries 22,909 -

Formation & preliminary expenses 95,111 -

Implementation Committee Expenses 1,047 -

Insurance – D&O 7,500 -

Legal Fees 9,778 -

Management travel 4,420 -

Office expenses 67 -

Professional fees 15,770 -

Recruitment costs 211 -

171,135 -

PROFIT for the year before income tax 128,082

Finance Report




We Received $’000

Initial Contributions 265.00Interest Received 34.22

Total 299.22

We Expended $’000

Formation & Preliminary Expenses 95.11Salaries 22.91Insurance - D&O 7.50Other Expenses 45.62

Total 171.14

Interest Received11%

Initial Contributions89%

Other Expenses27%

Formation & Preliminary Expenses

56%

Salaries13%

Insurance - D&O4%

We Received

We Expended

Documents

WQRA Annual Report 2007 - 2008