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Assets Strategic Plan
2009-2013
1. EXECUTIVE SUMMARY ..................................................................................2
2. AGENCY FUNCTIONS.....................................................................................2
3. AGENCY SERVICE DEMAND AND DELIVERY OVERVIEW .........................3
4. ASSET ANALYSIS...........................................................................................3
4.1 Asset Needs for service delivery .................................................................................................... 3
4.2 Existing Asset Categories ................................................................................................................ 3
4.3 Work in Progress ................................................................................................................................ 4
4.4 Asset utilisation................................................................................................................................... 4
5. ASSET STRATEGIES ......................................................................................5
5.1 New Investment strategy .................................................................................................................. 5
5.2 Operations and Maintenance Strategy .......................................................................................... 5
5.3 Disposal strategy ................................................................................................................................ 5
6. FUNDING IMPLICATION .................................................................................5
7. ASSET RISK MANAGEMENT .........................................................................6
8. IMPACTS ON OPERATING BUDGET .............................................................6
8.1 Assets and Revaluation .................................................................................................................... 6
8.2 Depreciation Method and Rates...................................................................................................... 6
QLeave Assets Strategic Plan 2009-2013 Version 2 - April 2009 Page 1 of 6
1. Executive Summary
QLeave, a statutory authority established by the Queensland Government under
the Building and Construction Industry (Portable Long Service Leave) Act 1991,
will purchase and maintain appropriate fixed assets necessary for the
achievement of the objectives of the authority. The nature of QLeave’s mandate
and activities means that the fixed assets are principally those required to
support a clerical office environment. Assets are managed to ensure appropriate
depreciation is accounted for and assets are assessed annually to determine if
they are reaching the end of their economic life.
The Asset Strategic Plan is aligned with QLeave’s Corporate Plan, operational
plans, and risk management framework. It is also linked to other aspects of
strategic planning including finance, human resource and information systems.
The relationship of the asset strategic plan to other plans is contained in Section
16 of the Financial Management Standard 1997. The responsibility for strategic
planning for assets is outlined in Section 24 of the Standard and the provisions of
the plan are prescribed in Section 25 of the Standard.
2. Agency Functions
In accordance with Division 2 of the Building and Construction Industry (Portable
Long Service Leave) Act 1991, QLeave’s key functions are:-
a) to provide an equitable and efficient system of portable long service leave
for eligible workers in the building and construction industry; and
b) to collect building and construction industry training levy payable under
this act for payment to a building and construction industry training fund
under this Act; and
c) to act as an agent in collecting fees and charges payable under other
Acts.
QLeave provides long service leave benefits to eligible workers within the
building and construction industry based upon the concept of continuous service
to the industry as opposed to one employer. Employers within the industry also
benefit from the scheme in that they are eligible to receive full pro-rata
reimbursements for payments of long service leave they make to registered
workers.
QLeave Assets Strategic Plan 2009-2013 Version 2 - April 2009 Page 2 of 6
The physical outputs of the work undertaken by QLeave include
• collection of a levy on building and construction work;
• payment of portable long service leave claims to eligible workers and
employers;
• promotional and awareness programs to the industry to encourage worker
membership and industry compliance;
• advice and recommendations to the Minister on issues affecting the
provision of portable long service inn the industry;
• collection agent for Workplace Health and Safety Queensland of the
Building and Construction Industry Workplace Health and Safety
Notification Fee, and for the Building and Construction Industry Training
Fund by collecting the Training levy. (These collections are made in
conjunction with the PLSL long service leave levy); and
• administration of a portable long service leave scheme established under
the Contract Cleaning Industry (Portable Long Service Leave Act 2005
under a service agreement with the Contract Cleaning Authority.
Therefore, the physical assets required to perform these functions reflect a
clerical office that supports a safe and efficient work environment.
3. Agency Service Demand and Delivery Overview
QLeave’s core functions and strategies are not expected to change materially
over the next four years.
4. Asset Analysis
4.1 Asset Needs for service delivery
QLeave’s asset infrastructure is sufficient to meet its service delivery demands.
The strategy to ensure timely replacement of assets is part of the current
strategic, operational and budget planning cycle.
A Business Continuity strategy is currently being finalised. The plan includes
processes and procedures to deal with managed failures while maintaining
acceptable levels of service, including offsite recovery environment and services.
4.2 Existing Asset Categories
The three categories of assets for which QLeave are responsible for are:
• investment portfolio
• information technology hardware and software; and
• furniture and equipment.
QLeave Assets Strategic Plan 2009-2013 Version 2 - April 2009 Page 3 of 6
QLeave’s investment funds are managed through Queensland Investment
Corporation and Queensland Treasury Corporation. The fund managers'
performance is independently reviewed by investment consultant
PricewaterhouseCoopers on a quarterly basis with annual reports to the Board to
monitor investment performance and ensure investment risk is managed across
the portfolio to ensure that the scheme’s sound financial position is maintained.
QLeave’s investment objectives and strategy are thoroughly reviewed every two
years to ensure consistency with the liabilities of the scheme and the
performance of investment markets along with formal actuarial advice on scheme
viability.
QLeave’s assets currently include plant and equipment (computers, office
furniture and equipment) and intangible assets in the form of specialised
databases and PLSL system (BRACS), financial management system (Navision)
and website for e-business. The value of these assets as at 30 June 2008:
Plant and Equipment
Description 2007 Valuation 2008 Valuation 2008
($’000) ($’000) Depreciation
($’000)
Computer Equipment 61 109 (21)
Office Equipment 67 47 (14)
Tenancy Fitout 22 56 (14)
TOTAL 150 211 (49)
Intangible Assets
Description 2007 Valuation 2008 Valuation 2008
(‘000) ($’000) Depreciation
($)
Navision financial 184 - (236)
system
Q*Web 221 148 (73)
Website 67 54 (13)
BRACS 1,208 1,110 (164)
TOTAL 1,680 1,312 (486)
4.3 Work in Progress
QLeave is currently in 2008-09 developing the capacity of the financial system to
allow scanning and processing of Notification and Payment forms. The BRACS
ADF system is being upgraded along with the web functionality. Costs are being
capitalised in accordance with the appropriate accounting standards.
4.4 Asset Utilisation
Assets are fully utilised to ensure effective service delivery.
QLeave Assets Strategic Plan 2009-2013 Version 2 - April 2009 Page 4 of 6
5. Asset Strategies
5.1 New Investment strategy
Ongoing operational needs are assessed annually during the budget cycle
process. New asset purchases are principally those assets required for the
efficient and effective functioning of an office environment, office equipment and
personal computers. Assets are purchased according to Queensland
Government procurement standards.
QLeave’s computer hardware replacement strategy will address the replacement
of personal computers over a three year life cycle with $100,000 allocated in the
2009-2010 Budget.
5.2 Operations and Maintenance Strategy
Where applicable, assets are maintained according to asset maintenance
agreements with approved vendors. In 2009-2010 business system maintenance
will include an upgrade of the current version of the Navision Financial system
($100,000), undertaken in conjunction with our business partner Dialog. In
addition, further minor enhancements are planned to the BRACS system
($28,000), in conjunction with Technology One.
5.3 Disposal strategy
Assets are disposed of in accordance with the Financial Management Practices
Manual policies and procedures and any loss or profit on disposal accounted for,
according to accepted accounting practice and standards.
It is considered that there are no significant business risks associated with any
disposals that may take place in the future.
6. Funding Implication
Funding requirements for new and replacement assets are assessed during the
budget development process. Specific capital funding has been provided in the
2009-2010 Budget related to plant and equipment as part of the three year
replacement program of PCs and for intangible assets with an upgrade to the
Navision Financial system and provision for minor enhancements to the BRACS
system.
QLeave Assets Strategic Plan 2009-2013 Version 2 - April 2009 Page 5 of 6
Capital Costs 2008-09 Budget 2009-10 Budget
Computer Hardware 50,000 100,000
Navision Enhancements 24,000 100,000
Web eCommerce 24,000 0
enhancements
BRACS enhancements 60,000 28,000
TOTAL 158,000 228,000
7. Asset Risk Management
There are currently no significant risks to the ongoing physical assets of QLeave.
Any possible future risk would be identified and mitigated according to QLeave’s
risk management framework.
8. Impacts on Operating Budget
The purchase and maintenance of plant and equipment has minimal impact on
QLeave’s operational budget.
8.1 Assets and Revaluation
In accordance with AASB 1041/AAS 38 Revaluation of Non-current Assets and
Financial Management Standard 1997, plant, equipment and intangibles have
been measured at cost. Depreciation takes place on a straight line basis over the
life of the assets with no residuals calculated. No further revaluations are
considered necessary.
QLeave’s asset recognition threshold is $100,000 for intangible assets and
$5,000 for plant and equipment with the majority of QLeave’s furniture and
equipment items having an acquisition cost below the $5,000 threshold.
8.2 Depreciation Method and Rates
In accordance with AASB 1021/AAS 4 Depreciation, the rate and method of
depreciation must be reviewed at least annually, and, if necessary, adjusted so
that they will reflect the most recent assessments of the useful lives of the
respective assets, having regard to asset usage and the rate of technical and
commercial obsolescence. The useful life and depreciation of assets are:
Asset Class Useful life (Years) Straight Line Depreciation
Office equipment 5-30 3-20%
Tenancy Fitout 15 7%
BRACS System 8 12.5%
Q*WeB 8 12.5%
Navision Financial 8 12.5%
System
Computer Server 5 20%
Hardware
QLeave Assets Strategic Plan 2009-2013 Version 2 - April 2009 Page 6 of 6
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