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Urban Renewal Authority (URA)

Financial statistics
Sales: $58 million
Cost of sales: $29 million
Loss before income tax equivalent: $153 million
Borrowings: $519 million
Inventories and investment properties: $453 million
   
Number of FTEs: 292
Hectares of land inventory: 3872

Significant events and transactions
  • The URA will implement revised development strategies for certain projects from 2016, seeking financial sustainability.
  • The value of inventories and investment properties was written down by $143 million on 30 June 2016.
  • An advance equity contribution of $135 million was received from the SA Government to partially fund the purchase of a portfolio of Department of State Development (DSD) assets in 2017. DSD currently leases these assets to TAFE SA.
  • A Deed of Settlement for Gillman property commits the URA to up to $2.2 million in costs and established Stage 1 settlement for 1 November 2016.

Financial statement opinion
Unmodified

Financial controls opinion
Modified
Key issues:
  • The project management framework does not detail the URA Board’s responsibilities, if any, for approving the annual business plans of each major development project
  • The URA had not finalised and approved a number of frameworks, policies and procedures, including an ownership framework
  • Some key financial policies and accounting methods included in work instructions are not subject to senior management approval
  • The URA had not implemented review procedures to confirm compliance with contract and project management frameworks
  • The method of determining the value of the service fees charged by the URA to the South Australian Housing Trust is not documented and approved by the Boards of both entities