Financial performance The Public Trustee’s Financial Statements are included from page 46. The Public Trustee has achieved a financial result for 2016–17 recording an operating surplus of $2.4 M. The financial performance benefited from savings in contractor expenses and higher than anticipated fees revenue. A summary of our revenue and expenditure over the last financial years is as follows: Revenue & Expenses Our revenue sources in the last two financial years comprise the following: Revenue sources 2015–16 2016–17 Fees and Charges 59% 63% Interest Revenue 36% 33% Other Revenue 5% 4% Total Revenue 100% 100% Gross revenue from fees and charges increased by 5 per cent from the previous year. The majority of CSO are deducted from gross fees to arrive at net fees and charges reported in the financial statements, with the remaining CSO amount recorded in contributions expense. This year, we provided a total of $33.8 M in CSO at no cost to the Queensland community which was a 7.8 per cent increase from the previous year. The main driver of the increase in CSO was a 7.6 per cent increase in fees rebated for clients with limited assets. As the Public Trustee is self-funded, these obligations were met from our own sourced revenue. Interest revenue was lower than the previous year due to a lower interest rate environment. Other revenue decreased 3 per cent with a reduction of $0.7 M from proceeds from insurance claims.
Legislation The Public Trustee has a wide range of powers and functions and operates under many Acts including: Acquisition of Land Act 1967 Acts Interpretation Act 1954 Adoption Act 2009 Agents Financial Administration Act 2014 Airports Assets (Restructuring and Disposal) Act 2008 Associations Incorporation Act 1981 Body Corporate and Community Management Act 1997 Building and Group Titles Act 1980 Charitable Funds Act 1958 Protection Act 1999 Child Protection (International Measures) Act 2003 City of Brisbane Act 2010 Civil Partnerships Act 2011 Collections Act 1966 Companies (Acquisition of Shares) (Application of Laws) Act 1981 Corrective Services Act 2006 Criminal Proceeds Confiscation Act 2002 Debt Collectors (Field Agents and Collection Agents) Act 2014 Disposal of Uncollected Goods Act 1967 Drugs Misuse Act 1986 Financial Accountability Act 2009 Gaming Machine Act 1991 Guardianship and Administration Act 2000 Industrial Relations Act 2016 Information Privacy Act 2009 Integrated Resort Development Act 1987 Land Act 1994 Land Act 1984 Legal Profession Act 2007 Liquor Act 1992 Local Government Act 2009 Local Government Electoral Act 2011 Manufactured Homes (Residential Parks) Act 2003 Mineral Resources Act 1989 Mixed Use Development Act 1993 Motor Accident Insurance Act 1994 Motor Dealers and Chattel Auctioneers Act 2014 National Injury Insurance Scheme (Queensland) Act 2016 Personal Injuries Proceedings Act 2002 Police Powers and Responsibilities Act 2000 Powers of Attorney Act 1998 Property Law Act 1974 Property Occupations Act 2014 Public Guardian Act 2014 Public Interest Disclosure Act 2010 Public Officers Superannuation Benefits Recovery Act 1988 Public Records Act 2002 Public Sector Ethics Act 1994 Public Service Act 2008 Public Trustee Act 1978 Residential Services (Accreditation) Act 2002 Residential Tenancies and Rooming Accommodation Act 2008 Retirement Villages Act 1999 Right to Information Act 2009 Sanctuary Cove Resort Act 1995 Second-hand Dealers and Pawnbrokers Act 2003 South Bank Corporation Act 1989 Storage Liens Act 1973 Succession Act 1981 Surrogacy Act 2010 Accounts Act 1973 Trustee Companies Act 1968 Trusts Act 1973 Victims of Assistance Act 2009 Water Act 2000 Workers’ Compensation and Rehabilitation Act 2003 Work Health and Safety Act 2011 Justice Act 1992
Financial Risks Disclosures Financial Instrument Categories Financial assets and financial liabilities are recognised in the statement of financial position when the Public Trustee becomes party to the contractual provisions of the financial instrument. The Public Trustee has the following categories of financial assets and financial liabilities: Note 2017 $’000 2016 $’000 Financial Assets Cash and cash equivalents 8 184,937 176,551 Receivables 9 14,369 15,836 Other financial assets 10 710,701 702,338 Total Financial Assets 910,007 894,725 Financial Liabilities Deposits held in trust Payables 12 728,872 7,198 718,603 2,719 Total Financial Liabilities 736,070 721,322 No financial assets and liabilities have been offset and presented net in the statement of financial position. b) Financial Risks Management (i) Risk Exposure The Public Trustee’s activities expose it to a variety of financial risks as set out in the following table: Risk Exposure Definition Exposure Credit Risk Credit risk exposure refers to the situation where the Public Trustee may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation. The Public Trustee is exposed to credit risk in respect of its receivables and financial assets. Liquidity Risk Liquidity risk refers to the situation where the Public Trustee may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Public Trustee is exposed to liquidity risk in respect of its payables, other financial assets and deposits held in trust. Market Risk The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest The Public Trustee does not trade in foreign currency and is not materially exposed to commodity price changes or other market prices. The organisation is exposed to interest rate risk through its cash deposited in interest bearing accounts, holding of financial assets and interest payable on deposits held in trust. FS24
24. Key Management Personnel Disclosures (Continued) Key Management Personnel Remuneration Expense The following disclosure focuses on the expense incurred by the Public Trustee that is attributable to key management positions during the respective reporting periods. The amounts disclosed are determined on the same basis as expenses recognised in the statement of comprehensive income. 2016-17 Position Short Term Long Term Employee Expenses Post Employment Expenses Termination Benefit Total Employee Expenses Base Vehicle Allowance & Annual Leave Non - monetary $’000 $’000 $’000 $’000 $’000 $’000 $’000 Public Trustee of Queensland 323 19 - - 41 - 383 Deputy Public Trustee of Queensland and Official Solicitor 197 22 - 8 25 - 252 Executive Director Client Services (1/7/16-2/10/16) 44 12 - - 6 40 102 A/Executive Director, Client Experience & Delivery (12/12/16-31/03/17) 43 4 7 1 5 - 60 Executive Director, Client Experience & Delivery (2/5/17 to 30/6/17) 25 6 - - 3 - 34 A/Executive Director, Digital &Technology (12/12/16-7/4/17) 43 4 8 - 6 - 61 Executive Director, Digital &Technology (11/4/17 to 30/6/17) 38 7 - - 5 - 50 Executive Director, Investment & Finance Services & Finance Officer (1/7/16 to 2/6/17) 157 24 - - 21 46 248 A/Executive Director, Investment & Finance Services & Chief Finance Officer (5/6/17 to 30/6/17) 9 2 - - 1 - 12 Remuneration 879 100 15 9 113 86 1,202 FS37
Compliance Checklist Summary of requirement for requirement Annual report reference Letter of compliance A letter of compliance from the accountable officer or statutory body to the relevant Minister/s ARRs – section 7 p. iv Accessibility Table of contents Glossary ARRs – section 9.1 Contents – p. iii Glossary – p. 42 Public availability ARRs – section 9.2 p. ii Interpreter service statement Queensland Government Language Services Policy ARRs – section 9.3 p. ii Copyright notice Copyright Act 1968 ARRs – section 9.4 p. ii Information Licensing QGEA – Information Licensing ARRs – section 9.5 p. ii General information Introductory Information ARRs – section 10.1 p. 1 Agency role and main functions ARRs – section 10.2 p. 2-5 Operating environment ARRs – section 10.3 p. 6-9 Non-financial performance Government’s objectives for the community ARRs – section 11.1 pp. 10-11 Other whole-of-government plans / specific initiatives ARRs – section 11.2 N/A Agency objectives and performance indicators ARRs – section 11.3 Agency Objectives - p. 10 Performance Indicators – pp. 7-8 Agency service and service standards ARRs – section 11.4 pp. 12-13 Financial performance Summary of financial performance ARRs – section 12.1 pp. 16-19 Governance – management and structure Organisational structure ARRs – section 13.1 p. 20 Executive management ARRs – section 13.2 pp. 20-26 Government bodies (statutory bodies and other entities) ARRs – section 13.3 pp. 27-28 Public Sector Ethics Act 1994 Public Sector Ethics Act 1994 ARRs – section 13.4 p. 30 Queensland public service values ARRs – section 13.5 pp. 31-32
Governance – risk management and accountability Risk management ARRs – section 14.1 p. 33 Audit committee ARRs – section 14.2 pp. 28-29 Internal audit ARRs – section 14.3 pp. 34-35 External scrutiny ARRs – section 14.4 p. 34 Information systems and recordkeeping ARRs – section 14.5 p. 35 Governance – human resources Workforce planning and performance ARRs – section 15.1 pp. 36-37 Early retirement, redundancy and retrenchment Directive No.11/12 Retirement, Redundancy and Retrenchment Directive No.16/16 Early Retirement, Redundancy and Retrenchment (from 20 May 2016) ARRs – section 15.2 p. 37 Open Data Statement advising publication of information ARRs – section 16 p. 114 Consultancies ARRs – section 33.1 Published to Open Data portal Overseas travel ARRs – section 33.2 Published to Open Data portal Queensland Language Services Policy ARRs – section 33.3 Published to Open Data portal Financial statements Certification of financial statements FAA – section 62 FPMS – sections 42, 43 and 50 ARRs – section 17.1 p. 88 Independent Auditors Report FAA – section 62 FPMS – section 50 ARRs – section 17.2 pp. 88 and 112-113 FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009 ARRs Annual report requirements for Queensland Government agencies