Annual Report 2008-2009 Australian Nuclear Science and Technology Organisation www.ansto.gov.au Australian Nuclear Science and Technology Organisation Annual Report 2008-2009 Annual Report 2008-2009 Chairman’s Letter 9 October 2009 Senator the Hon Kim Carr Minister for Innovation, Industry, Science and Research Parliament House CANBERRA ACT 2601 Dear Minister In accordance with Section 9 of the Commonwealth Authorities and Companies Act 1997 (CAC Act), I am pleased to present the Annual Report of the Australian Nuclear Science and Technology Organisation (ANSTO) for the period 1 July 2008 to 30 June 2009. This Annual Report includes a Report of Research and Operations, the content and preparation of which the Board is responsible for under Section 9 of the CAC Act. Yours sincerely Dr Ziggy Switkowski Chairman ii  Australian Nuclear Science and Technology Organisation Contents Chairman’s Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii About ANSTO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ANSTO Top Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Members of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Chairman’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Chief Executive Officer’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2008-2009 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2008-2009 report of activities (Report of research and operations) . . . . . . . . . . . . 16 Performance against strategic objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Governance and performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Appendix 1 - Equal Employment Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Appendix 2 - Functions and powers of the organisation under the ANSTO Act 94 Appendix 3 - Environmental Protection and Biodiversity Conservation Act 1999, (EPBC Act) section 516A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Appendix 4 - Occupational Health and Safety (Commonwealth Employment) Act 1991, section 74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Appendix 5 - Freedom of Information Act 1982, subsection 8(1) . . . . . . . . . . . . . 105 Appendix 6 - Index of compliance with reporting guidelines . . . . . . . . . . . . . . . . 108 Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Contact details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 ANSTO Annual Report 2008-2009  iii About ANSTO ANSTO is Australia’s national nuclear organisations and industry. ANSTO also research and development organisation manages the Access to Major Research and is the centre of Australian nuclear Facilities Program (AMRFP), which expertise. It is part of the Australian provides Australian researchers with Government portfolio of Innovation, access to major international facilities. Industry, Science and Research. ANSTO’s main campus is located 40 km ANSTO undertakes research in the south west of Sydney’s central business applications of nuclear science and district, occupies 70 hectares and is technology and delivers specialised surrounded by a 1.6 km buffer zone. advice, scientific services and products to The organisation’s functions are government, universities, other research prescribed by the Australian Nuclear organisations, international organisations Science and Technology Organisation Act and businesses in areas as diverse as 1987 (ANSTO Act) and are translated into mining and radiopharmaceuticals. action through its strategic and annual About one-third of ANSTO’s staff are planning process. involved in research. The balance are in business services, operations and support ANSTO’s vision to government roles. To be recognised as an international ANSTO operates Australia’s nuclear centre of excellence in nuclear science research reactor OPAL which is used to and technology for the benefit of produce radioactive products for use in Australia. medicine and industry, as a source of ANSTO’s mission neutron beams for scientific research and to irradiate silicon for semiconductor • Support the development and applications. implementation of government policies and initiatives in nuclear and related ANSTO’s research infrastructure also areas, domestically and internationally includes accelerators, cyclotrons and associated instruments as well as • Operate nuclear science and technology workshops, pilot plants and specialist based facilities, for the benefit of laboratories. industry and the Australian and international research community ANSTO’s research infrastructure is used extensively by other members of the • Undertake research that will advance Australian and international research the application of nuclear science and communities including researchers from technology universities, other science and technology 1  Australian Nuclear Science and Technology Organisation • Apply nuclear science, techniques and expertise to address Australia’s environmental challenges and increase the competitiveness of Australian industry • Manufacture and advance the use of radiopharmaceuticals which will improve the health of Australians. ANSTO’s strategic directions ANSTO’s strategic directions form the basis for the organisation’s research and operations: Senator the Hon Kim Carr, Minister for • Deliver excellence in nuclear science Innovation, Industry, Science and and technology Research. • Focus our capabilities to support issues of national importance • Maximise return on investment in expertise and specialised facilities • Promote understanding of the benefits of nuclear science and technology. Responsible Minister The responsible Minister throughout the period was the Minister for Innovation, Industry, Science and Research, Senator the Hon Kim Carr. Statement of compliance This report is written with reference to the Commonwealth Authorities and Companies (Report of Operations) Orders 2005. ANSTO Annual Report 2008-2009  2 ANSTO Top Management Team Dr Adi Paterson Dr Bob Ring Chief Executive Officer General Manager, ANSTO Minerals Dr Ron Cameron Mr Andrew Humpherson Executive General Manager, Strategy, General Manager, Government and Public Government and International Relations Affairs Mr Doug Cubbin Mr Michael Beckett Chief Finacial Officer, Executive General Chief Information Officer, Information Manager, Business and Enterprise Management Systems Mr Con Lyras Mr Hefin Griffiths General Manager, Engineering and Manager, Quality Safety Environment and Technical Services Radiation Protection Dr Robert Robinson Dr Paul Di Pietro Head, The Bragg Institute Manager, Campus Services Dr Greg Storr Ms Margaret Fittler General Manager, Reactor Operations Manager, Human Resources Prof John Dodson Ms Tanya Karma Head, Institute for Environmental Manager, Silicon Irradiation Research Mr Ian Turner General Manager, ARI Prof Lyndon Edwards Head, Institute of Materials Engineering Ms Stephanie Cole Legal Counsel Dr Ron Weiner Head, Radiopharmaceutical Research Institute 3  Australian Nuclear Science and Technology Organisation Pictured from left to right, Mr Ian Turner, Mr Hefin Griffiths, Mr Michael Beckett, Prof John Dodson, Mr Andrew Humpherson, Ms Margaret Fittler, Ms Tanya Karma, Dr Adi Paterson, Dr Ron Cameron, Ms Stephanie Cole, Ms Roseanne Robinson (appointed 2009-2010), Dr Robert Robinson, Dr Greg Storr, Mr Doug Cubbin, Prof Lyndon Edwards and Dr Paul Di Pietro (not present Mr Con Lyras, Dr Ron Weiner, and Dr Bob Ring). ANSTO Annual Report 2008-2009  4 Members of the Board Dr Ziggy (Zygmunt) Switkowski (Chair) Ms Erica Smyth BSc (Hons), PhD, FAICD MSc, FAICD Company Director, former Chief Scientist and business woman Executive, Scientist Appointed 12 December 2008 Chair 1 March 2007-31 December 2010 Term concludes 11 December 2012 Appointed 1 January 2006 Mr Bill (William) Scales AO Term concludes 31 December 2010 BEc, FIPPA, FAICD Professor David Copolov Company Director, former Senior Public MBBS, PhD, FRACP, FRANZCP, MPM, DPM Servant and Chief Executive, Economist Pro Vice-Chancellor (Assisting the Vice- Appointed 1 July 2007 Chancellor) Monash University and Term concludes 30 June 2010 Professor of Psychiatry, Monash Professor Andrew Scott University and the University of Melbourne MBBS (Hons), MD, FRACP, DDU Deputy Chairman of the Peter MacCallum Director, Ludwig Institute for Cancer Cancer Institute Research Appointed 1 May 2008 Nuclear Medicine Physician, Scientist, Term concludes 30 April 2012 Academic Professor Paul Greenfield AO Appointed 26 September 2007 BE(Hons), B.Econ, PhD, FTSE, FIEAust, Term concludes 25 September 2011 FIChE, FAICD, CPEng, CEng, CSci Mr Edward Pretty Vice-Chancellor University of Queensland, Senior Consultant to Macquarie Bank and Academic, Engineer Chairman of Fujitsu Australia Limited and Appointed 25 July 2007 RP Data Limited Term concludes 24 July 2010 Appointed 26 September 2007 Professor John Hearn Resigned 16 November 2008 BSc, MSc, PhD Deputy Vice-Chancellor (International) and Dr Adi (Adrian) Paterson Professor of Physiology, University of BSc, PhD Sydney Chief Executive Officer Appointed 1 May 2008 Appointed 1 March 2009 Term concludes 30 April 2012 Term concludes 28 February 2014 Dr Ron Cameron Ms Christine McLoughlin BSc, MSc, MBA, DPhil, ARCS, MAICD BA, LLB(Hons) Chief Executive Officer (Acting) Company Director, Former Financial Appointed 17 May 2008 Services executive, lawyer and Term concluded 28 February 2009 businesswoman Appointed 13 March 2009 Term concludes 12 March 2013 5  Australian Nuclear Science and Technology Organisation Pictured from left to right, Professor John Hearn, Professor David Copolov, Ms Christine McLoughlin, Dr Ziggy (Zygmunt) Switkowski, Professor Paul Greenfield, Dr Adi (Adrian) Paterson, Ms Erica Smyth, Mr Bill (William) Scales and Professor Andrew Scott. ANSTO Annual Report 2008-2009  6 Chairman’s Report In terms of research, the successful operation of OPAL has opened a new era of discovery. OPAL produces neutrons that are now being used by researchers from Australia and from around the world. OPAL, together with the neutron instrumentation housed in ANSTO’s Bragg Institute, is producing very fast and extremely high quality data for these researchers, and scientific advances are already being made in areas including health and materials science. Time on Welcome to ANSTO’s Annual Report the instruments continues to be for 2008-2009. It has been yet another oversubscribed by eager researchers, and unpredictable and eventful year for collaborations between ANSTO scientists ANSTO but one where important and groups from various world-class milestones have been met which offer universities and research institutes the promise of future success. continue to grow strongly and offer the After the disruption to reactor operations promise of fruitful discoveries. I reported last year, the OPAL reactor has As the neutron-based research program now been running successfully and builds, and with the re-establishment of predictably for a number of cycles. This Australia’s radiopharmaceutical has enabled us to restart production of production capabilities, OPAL is now radiopharmaceuticals at a time when living up to the high expectations we there is a significant shortage of suppliers held for it and is fulfilling its mandate of reactor produced medicines in the as a vital piece of Australian technology world market. Given the quality of our infrastructure. reactor facility, OPAL now has an opportunity and obligation to help Recognition of the roles of OPAL, and address the global supply shortages. ANSTO generally, is increasing throughout the community. Over seven Although it has always been clear that thousand, six hundred people toured Australia requires its own secure and the ANSTO site during the year, and reliable source of medical isotopes, and feedback from visitor tours is ANSTO’s radiopharmaceutical production overwhelmingly positive. ANSTO has arm has exported medical isotopes for made a sustained and successful effort many years, the current situation may to engage and involve the local and wider see significant increases in ANSTO’s Australian community in its work, and exports of some nuclear medicines nuclear technology generally, as well as around the world, including to the USA. 7  Australian Nuclear Science and Technology Organisation its contributions to education programs The ANSTO Board was pleased to at all levels. welcome in March this year, Dr Adrian Of course, OPAL requires a significant (Adi) Paterson, as Chief Executive Officer level of nuclear expertise to be of ANSTO. Adi has begun the task to maintained in Australia and facilitates reinvigorate ANSTO and lead it through our role in contributing to nuclear policy the next exciting phase of its history as a internationally, such as through our roles world class nuclear institution. in the International Atomic Energy During this past year, two new Board Agency (IAEA), and regionally through members were added – Ms Erica Smyth vehicles such as the Regional and Ms Christine McLoughlin and with Cooperative Agreement (RCA). its skill set deepened, the Board looks On a wider scale, nuclear technology is forward to working with the CEO and his gaining broad interest and acceptance leadership team to help the organisation for its potential role in mitigating climate achieve its ambitious goals. change. Many countries in the world are moving forward with plans for significant numbers of new nuclear power reactors, recognising that nuclear power is the only, currently available, technology truly capable of providing base-load power without significant contributions to climate change emissions. With regional Dr Ziggy Switkowski neighbours such as China, Taiwan, Japan, Chairman South Korea, India and Pakistan already deploying nuclear energy and other countries such as Indonesia and Vietnam about to embrace nuclear power, it becomes clear why ANSTO’s active and leading role in nuclear matters in the region is so important to maintain. Nearly one thousand ANSTO staff work to achieve our mission to perform world class research, manufacture radiopharmaceuticals and partner with industry and academia in progressive applications of nuclear techniques. ANSTO Annual Report 2008-2009  8 Chief Executive Officer’s Report real excitement of scientific and operational achievements behind each data point. In fact, the work and achievements of ANSTO’s research and operations staff go far beyond simply meeting the performance indicators set for them and reported against in the relevant section of this report. For example, behind each of the 500 odd publications noted in those statistics, stands a team of ANSTO scientists and As the new CEO, I started my term at their collaborators that have discovered ANSTO after a time of significant new information about the way the world restructure and refocusing for the works in scientific disciplines ranging from organisation. Changing priorities on both a biology and health, through to physics and national and global scale require appropriate materials science. organisational responses, particularly in an The story behind the one line objective organisation so relevant to the major of ‘Removal of spent fuel from the issues, such as energy, water and climate ANSTO site in line with stringent change, facing the world today. safety arrangements and community A broad, but of course not universal, expectations’ is that of a team effort, public acceptance of the pragmatic, involving the high level and unique peaceful and safe use of nuclear science expertise of ANSTO’s operational staff, is developing in our communities. While appropriate communications strategies ANSTO is not in the business of power and the involvement of transport generation, the skills and capacities companies, local, state and federal police, vested in our organisation are essential security agencies and international liaison. to all options for future power, including Similarly, new science, unique ANSTO clean coal and sequestration technologies. expertise and enthusiasm in responding ANSTO is clearly in view every time to our mission, lies behind each formal energy options for Australia are debated. objective ANSTO has met this year. While With regards to our achievements over it is impossible to tell every story behind the past year, it is universally the data points, we have selected a acknowledged that an organisation’s representative cross section of our work annual report can make for dry reading. In and people to report in more depth. the case of ANSTO, the bare statistics In looking to the future, we will focus and and financial data provided belie the very collaborate to ensure the best use can be 9  Australian Nuclear Science and Technology Organisation made of ANSTO’s unique facilities and expertise in responding to the issues facing Australia and the world. The key platforms such as OPAL and the accelerators are providing scientists with more profound insights into issues including food, water and health. Additionally, with the challenges of climate change and associated energy concerns, an Australian source of accurate and unbiased policy advice is vital. This year has been one of challenges and consolidation for ANSTO, but I believe the over-riding atmosphere as we enter the new financial year, is one of excitement and optimism. I would like to thank Ron Cameron for his leadership as Acting CEO and the ANSTO community for welcoming me to Australia in this new role. The ANSTO Board has proved to be a strong custodian of ANSTO’s vision and mission. I am very thankful for the key role they play. Dr Adrian (Adi) Paterson Chief Executive Officer ANSTO Annual Report 2008-2009  10 2008-2009 highlights In 2008-2009, OPAL successfully provided neutrons for research and commercial irradiations, including for silicon irradiation and radioisotopes production. OPAL can affect the ability to irradiate targets for radiopharmaceutical production and silicon ANSTO’s key asset, the OPAL nuclear irradiation. research reactor, lived up to its promise in the 2008-2009 financial year. In December Despite the heavy water dilution, OPAL 2008, the fully operational reactor still successfully provided neutrons for commenced the first stage of production research and commercial irradiations, of the most used radioisotope, including several radioisotopes. technetium-99m, when irradiation of Silicon irradiation restarted and is growing uranium plates began. its export market. The reactor’s heavy water, located in Neutron beam instruments the ‘reflector vessel’, was replaced in November 2008 because over the With OPAL operating as scheduled and the previous two years, normal water from issuing of ARPANSA operating licences, the surrounding reactor pool had slowly ANSTO’s six neutron beam instruments seeped in and diluted it. Heavy water (Echidna, Wombat, Koala, Kowari, reflects neutrons back into the reactor Platypus and Quokka) produced their first core to sustain the nuclear reaction. research results. These instruments are Although this is not a safety issue and does not prevent operation of the reactor, available for use by domestic and dilution reduces neutron intensity, which international users such as universities and other research organisations. 11  Australian Nuclear Science and Technology Organisation The performance of the instruments In addition, in May 2009 the Australian exceeded design specifications and users Government announced $37 million of noted that this performance surpassed new capital funding for additional OPAL many of their international equivalents. neutron beam instruments in its annual Proposals for neutron beam time Budget Statement to Parliament. between January and June 2009 saw PETNET demand running at up to 300 per cent of the number of available days on ANSTO, through its wholly-owned some instruments. subsidiary PETNET Solutions, has constructed a fluorodeoxyglucose (FDG) In December the construction process for production facility with two cyclotrons another instrument, the ultra small-angle located in the Lucas Heights neutron scattering instrument, to be Technology Park. known as Kookaburra, began. Kookaburra will help scientists study a range of FDG is used in Positron Emission materials and organic structures, from Tomography (PET) scanning which has polymers and industrial coatings to viruses. produced significant advances in diagnosis of cancer and other medical conditions. The Kowari neutron beam instrument is a residual-stress diffractometer that looks at stresses in materials such as jet engines and gas pipes, and investigates failures of wheels and rails. ANSTO Annual Report 2008-2009  12 2008-2009 highlights The two PETNET mini-cyclotrons will produce a short-lived glucose radiopharmaceutical used in positron emission tomography (PET) scanning. Two cyclotrons will provide capacity to service the rapidly growing FDG market and ensure quality and reliability of supply to hospitals, nuclear medicine centres, and ultimately patients. Used fuel shipment The ninth and final shipment of HIFAR (ANSTO’s shutdown reactor) used fuel left Sydney on 16 March 2009 and was received at its final destination in the United States on 21 May 2009. The shipment was completed on time and within budget, with significant information provided to the community at each stage. Molybdenum production In June 2009, ANSTO was working to bring fully on-line a radiopharmaceutical manufacturing plant associated with the OPAL reactor, which produces ANSTO supplies radiopharmaceuticals to over 225 Molybdenum-99 (Mo-99). nuclear medicine centres across Australia and exports to New Zealand and South East Asia. 13  Australian Nuclear Science and Technology Organisation ANTARES is used for ion beam analysis and accelerator mass spectrometry. Mo-99 which decays into technetium-99m accelerators and support ANSTO’s aim of (Tc-99m) is the most widely used working in partnership with other research radiopharmaceutical and used in the organisations in a national network of diagnosis of cancers, heart disease and accelerators to maximise the benefits this skeletal injuries. important infrastructure can offer. The plant was operable and in the final Accelerators are key tools for use in stages of commissioning by the end of nuclear safeguards and forensics, medical the financial year. ANSTO, working closely physics, materials science and radiation with its regulator the Australian Radiation physics ensuring Australia has top facilities Protection and Nuclear Safety Agency for its scientists. (ARPANSA), received the required licence in September 2009. ANSTO Minerals Centre for Accelerator Science Due to a large increase in the number ofprojects, the organisation’s mining Along with additional neutron beam industry consultancy group, ANSTO instrument funding, the Federal Minerals, increased its revenue by 51 per Government also allocated $25 million in cent in 2008-2009 to $10.192 million. the 2009 Federal Budget to help ANSTO establish a Centre for Accelerator Science. The Centre for Accelerator Science will enable an upgrade of current ANSTO ANSTO Annual Report 2008-2009  14 15  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities (Report of research and operations) Australia’s nuclear experts • ANSTO participated in the 31st Meeting of National RCA Representatives (NRM) ANSTO’s international activities in Japan in April 2009. The meeting was representing Australia attended by 43 participants from 13 member states. The meeting agreed to As Australia’s national nuclear research an Australian proposal to develop a organisation, ANSTO provides the principal Regional Profile for the RCA Technical technical interface with the IAEA. ANSTO Programme to facilitate the task of the participates in a wide range of IAEA national representatives in establishing activities and provides experts, technical priorities for the 2012-13 programme. consultants, training course lectures and The meeting also agreed to an extension coordinates placement and management of the Medium Term Strategy for the of fellowship holders and scientific visitors RCA Technical Programme to help undergoing specialist training in Australia. identify priorities and new strategies in ANSTO has nuclear representatives based time for the 32nd NRM, when initial in both Vienna and Washington DC. The consideration of the 2012-2013 Vienna post acts as a liaison with the IAEA programme and its priorities would take and participates in global nuclear policy place. ANSTO chaired the subsequent discussions representing Australia’s development of a new medium term interests. The Washington office provides strategy for 2011-2016. feedback and engagement with the United • In 2009 ANSTO hosted an international States and Canada on technical and global meeting on DIDO-type reactors (of developments in nuclear issues including which HIFAR is one of six worldwide), advanced technology, waste and transport meetings which were held regularly issues. Both representatives report on whilst the DIDO reactors were developments and provide technical operational. Now that all DIDO reactors advice to the respective Ambassadors and have been permanently shutdown, the other Australian Government agencies in meetings serve as fora to discuss plans Europe and North America. to care, maintain and/or decommission ANSTO actively supports Australia’s the reactors. Representatives from obligations and duties under the Nuclear Denmark and Germany attended the Non-Proliferation Treaty by facilitating the meeting in April. further development of peaceful nuclear • In May 2009, ANSTO, ARPANSA and cooperation in the Asia Pacific region the Department of Resources, Energy through the RCA for Asia and the Pacific and Tourism (DRET) represented and the Forum for Nuclear Cooperation in Australia at the third review meeting Asia (FNCA). of Contracting Parties to the Joint Some examples of ANSTO’s work related Convention on Spent Nuclear Fuel to the IAEA this year include: Management and Radioactive Waste 17  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities The fountain of the Memorial Plaza in the forecourt of the Vienna International Centre, headquarters of the International Atomic Energy Agency (IAEA). Flags of all 150 member states of the IAEA, including Australia, prominently surround the fountain. Management in Vienna. The review challenges facing the management of process consisted of the submission disused radioactive sources and the of national reports on compliance with threat they pose to safety and security the articles of the Joint Convention in (by way of use in ‘dirty bombs’) should accordance with the reporting they not be managed properly. The requirement provisions of the Joint findings of the meeting have significant Convention. Australia submitted its third implications for Australian radioactive national report to the meeting which waste management policy. was attended by 44 contracting parties. The ANSTO Regional Security of • Australia also hosted a back-to-back Radioactive Sources Project continues to IAEA Consultancy Meeting and work with counterpart agencies in South Technical Workshop in May 2009 to East Asian countries to improve the address the means to efficiently and control, safety and security of radioactive effectively develop and implement an sources. For example, in April ANSTO integrated system relevant to research staff assisted in raising awareness of reactors. Effective management radioactive source security issues in systems help to streamline an several pacific island countries by organisation, optimise the use of presentations to the Global Initiative to resources and help ensure consistent, Combat Nuclear Terrorism’s (GICNT) high standards throughout an Workshop on Radiological Source Security organisation. and Safety in the Pacific in Vanuatu. • In June, ANSTO chaired a meeting on In May 2009 ANSTO contributed to a US the Safety and Security of Radioactive sponsored workshop in Nepal on the Sources. The participants discussed the practical issues regarding source security ANSTO Annual Report 2008-2009  18 and the international standards governing Counter terrorism the safety and security of radioactive sources. The New Zealand Ministry of ANSTO has developed a significant Foreign Affairs provided NZ$100,000 to research effort into counter terrorism and the ANSTO project work as part of their national security areas. In November, GICNT contribution. Australia’s new Ambassador for Counter Terrorism Mr Bill Paterson visited ANSTO In January, the Organisation for Economic to familiarise himself with the research Co-operation and Development (OECD) conducted by ANSTO as well as the Nuclear Energy Agency convened a relevant facilities and capabilities housed workshop on the Security of Supply of at ANSTO. The US State Department’s Medical Radioisotopes in Paris in January. Non-proliferation Bureau also visited ANSTO participated in the workshop, ANSTO that month to see the relevant which was initiated at the request of ANSTO expertise and capabilities in the the government of Canada to address areas of counter terrorism and non- challenges to the reliable supply of proliferation and to discuss how ANSTO technetium. The vulnerability of the global could further contribute to international medical isotope supply chain, which non-proliferation efforts. depends on a number of aging nuclear research reactors for isotope production, In October 2008 ANSTO’s National has become evident in recent years. Security Research group presented research findings at the 2008 Australian In June, ANSTO participated as Vice Chair and New Zealand Forensic Science in a High Level Group meeting on the Society (ANZFSS) conference in Security of Supply of Medical Radioisotopes Melbourne winning two awards. in Toronto, Canada. The High Level Group meeting, established under the OECD ANSTO is also called upon when Nuclear Energy Agency, discussed the expertise on nuclear materials is required. current global shortage of Mo-99, made ANSTO was commissioned by the progress in coordinating reactor schedules, Victorian Police to conduct a detailed sought assistance from the IAEA in analysis of material, suspected to be streamlining regulatory approvals for uranium, seized in a police raid at the transport of Mo-99 and discussed ways to beginning of April 2009. increase capacity in the medium and long ANSTO’s knowledge was also called upon term, including Australia’s potential role. by the NSW Government in determining ANSTO will make every effort to assist in the nature and extent of radioactive the developing global nuclear medicine material in areas of Hunters Hill in Sydney supply crisis once our Mo-99 process is where a former uranium smelter existed. established. 19  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities Advice to government which is currently developing a White Paper on energy. The paper can be ANSTO regularly provides advice to found on ANSTO’s website, government on a wide range of issues www.ansto.gov.au. through written advice, submissions and responses to specific enquiries; through ANSTO also provided responses to a hosting site visits for parliamentarians, number of parliamentary questions on and formal and informal hearings, notice concerning the OPAL reactor and meetings and workshops. radiopharmaceutical production, and provided advice to Ministers on the used For example, in 2008-2009 ANSTO made fuel shipment, the nuclear fuel cycle, the submissions to the following decommissioning of the Moata reactor parliamentary inquiries: and other matters. • The Senate Standing Committee on Foreign Affairs, Defence and Trade’s ANSTO’s support to nuclear Inquiry into the economic and security powered warship visits to challenges facing Papua New Guinea Australian ports and the island states of the southwest ANSTO’s role as the national expert in Pacific radiation safety and security is also used • The Joint Standing Committee on when nuclear powered warships visit Foreign Affairs, Defence and Trade’s Australia. Visits to Australian ports is one Inquiry into Australia’s Relationship with of the most visible aspects of the defence ASEAN cooperation between Australia and other countries. Some of these vessels are • The Senate Standing Committee on nuclear powered and as such are subject Environment, Communications and the to stringent conditions regarding safety Arts’ Inquiry into the Commonwealth and environmental monitoring at Radioactive Waste Management Commonwealth, State and Territory level. (Repeal and Consequential Amendment) A number of organisations work together Bill 2008 with the Royal Australian Navy (RAN) to • The Joint Standing Committee on ensure these conditions are met. Treaties’ Inquiry into Nuclear Non- ANSTO trains RAN and State monitoring proliferation and Disarmament teams to carry out radiation • ANSTO provided information on the measurements in areas where the public possible role of nuclear power as part of could be exposed to radiation in the highly a diverse energy mix to the Department unlikely event of an incident with a of Resources, Energy and Tourism, nuclear powered vessel’s reactor. ANSTO Annual Report 2008-2009  20 Used fuel is loaded into metal baskets underwater which act as a radiation barrier. The baskets are subsequently drained, vacuum dried and hermetically sealed. Used fuel shipment transported from Lucas Heights to Port Kembla for shipping to the United States. As well as logistics planning, the All of the shipments have been conducted preparations for the March 2009 shipment in compliance with applicable international of the HIFAR used nuclear fuel involved and national standards to ensure ensuring the community was well maximum safety to the public and the informed on all non-confidential aspects of environment. This required a high level the shipment. Letters were sent to local of support from the police, harbour and government and MPs, a press release maritime authorities and the associated was issued, and information about the regulatory bodies. upcoming shipment was publicly released in November 2008. A brochure was The shipment arrived at the United States produced, and a video of how used fuel is Department of Energy’s Savannah River packed published on the ANSTO website. site in May 2009. Now that the shipment Community briefings took place at Lucas is complete, all of the spent fuel elements Heights in December and Wollongong in from 49 years of HIFAR operation and 34 March. The Wollongong event was hosted years of Moata operation have been by the South Coast Labour Council. removed from the Lucas Heights campus. This was the ninth overseas shipment of ANSTO used fuel. The shipment was 21  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities Health research Using radioisotopes to monitor cancer treatment Breakthrough in Parkinson’s disease research ANSTO scientists have developed atechnology that can monitor the use of ANSTO researchers have undertaken vital cancer medicines to see whether they research which will bring scientists one are effectively treating patients. The step closer to finding a treatment for technology binds the PET radioisotope, Parkinson’s disease. When the protein Copper-64 (a radioisotope with a half-life alpha-synuclein behaves abnormally, it suitable for shipping across a continent) plays a role in the development of to the target agent or medication, thereby Parkinson’s disease. Using ANSTO’s enabling doctors to see an image of facilities in protein purification, where the treatment is in the body spectroscopy and microscopy, and using using PET cameras. This will allow neutron scattering facilities at the National doctors to assess whether the medication Institute of Standards and Technology is reaching the tumour site in cancer and (NIST) it was discovered that the even determine if the dosage used is abnormal behaviour can be stopped or correct. Treatments could be personalised even reversed by using a man-made and clinical trials of drugs would benefit polymer. from this technology. Epilepsy research Research into improving imaging ANSTO researchers have been involved in ANSTO and the Brindle Laboratory at the development of a nuclear medicine Cambridge University in the United imaging agent, F-18 labelled Flumazenil Kingdom have entered into a three which could help with diagnosis and year collaboration aimed at developing treatment planning for epilepsy. This sophisticated imaging methods for agent, used in PET scanners, can PET-based radiopharmaceuticals for the accurately pinpoint the area of seizure in early detection of tumour responses to the brain and provides superior imaging therapy. This research will develop non- when compared to magnetic resonance invasive methods of monitoring cancer imaging (MRI) scans. By knowing exactly treatments, which will improve their where the seizure occurs, this allows effectiveness and contribute to the goal doctors to more accurately prescribe of personalising medicine. treatments. This collaborative work was presented at the ANZ Nuclear Medicine conference in Sydney in April 2009. ANSTO Annual Report 2008-2009  22 Mining 12,000-year-old ice on the ice margin in Greenland. The team melted 15 tonnes of ice, collecting the ancient air trapped within and separating the methane for analysis. Photo courtesy Dr Vas Petrenko. Environment and climate ANSTO contributions to methane change release climate research ANSTO is involved in international, Dating groundwater in Western multidisciplinary climate change research Australia aimed at profiling past periods of ANSTO was awarded two contracts by atmospheric methane increase. An the Western Australian Government to outcome of this work is an assessment date the groundwater systems in the of the future impact on global warming Pilbara Region located in northern posed by sources of the potent Western Australia and the Gnangara greenhouse gas, methane. Recent groundwater mound in the northern work resulted in a publication in the suburbs of Perth. Dating groundwater journal Science in April 2009. The enables authorities to determine whether source of methane can be sensitively current or projected rates of extraction determined from the use of nuclear are sustainable. analysis techniques in which ANSTO is a world leader in small sample preparation and analysis. 23  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities There has been much debate over meaning that ice sheets are capable of whether the vast amounts of methane, melting quickly in response to increasing several thousand times that already in the temperature and CO2 levels. atmosphere, locked up in ice-like material on the ocean floor and in the permafrost Glacier research could impact regions of the Earth, could rapidly return climate change forecasts to the atmosphere as a result of increased ANSTO research data from Mongolian temperature or reduced pressure. By glaciers could impact climate change identifying the source of methane trapped forecasts. Major climate events during in air bubbles in the Greenland ice sheet past global ice ages did not happen from 12,000 years ago during the last simultaneously or with the same intensity ‘big freeze’ and the subsequent rapid world-wide, new ANSTO research data warming, the researchers have been able has revealed. The research, which used to determine that the source of increased sophisticated nuclear dating techniques methane following the ‘big freeze’ was on rocks from Mongolian glaciers, could not from the locked up methane, but from impact future climate change forecasts. wetlands. This is a significant finding, The research for the first time shows that because it identifies that the methane Mongolian glacier advances during the last increase was a consequence of the earlier ice age were not synchronised with alpine warming event rather than a trigger. Given glaciers in Europe and North America, this past precedent, the inclusion and suggesting that climate varied significantly modeling of methane release from this between continents. source during any future warming period can be better calibrated. Such a release, Materials engineering on balance, must be of much lower probability than previously reported. Strengthening Defence Climate change research dating of ANSTO is a core participant in the stalagmites in Italy Defence Materials Technology Centre (DMTC). Researchers in ANSTO’s Institute Researchers from ANSTO, the Australian of Materials Engineering led by Prof National University and Europe have Lyndon Edwards are helping the DMTC dated the age of stalagmites that grew in develop and deliver new materials submerged coastal caves in Italy to better technologies and manufacturing understand the rate of sea level change processes to enhance Australia’s defence through time. The research demonstrated capability through collaborative research that the lag time between changes in involving Defence, defence industries, temperature and sea level response may Universities and other research agencies. not be as long as previously thought, ANSTO Annual Report 2008-2009  24 ANSTO’s key capabilities utilised in DMTC volume reductions and producing a work are the design characterisation and highly durable waste form for long term manufacture of ultra high temperature disposal. In addition, as countries consider materials and the development of full life cycle costs of the waste treatment validated predictive finite element and disposal the synrocANSTO process is simulations of both product manufacturing showing significant potential savings. and performance. The former is currently ANSTO demonstrated its waste form being used to produce innovative process technology applicability in the UK solutions for the production of high to a number of wastes identified by performances materials and systems for Sellafield Ltd, including SIXEP Magnox use in both supersonic rocket and sludge and SandClino wastes. ANSTO hypersonic scramjet propulsion systems was able to successfully show; the whilst our modelling capability is being to feasibility of the process, the production simulate the ballistic and blast modelling of a stable monolithic glass ceramic, the of armour materials, and optimise novel retention of radionuclides and the welding processes for the production of considerable volume reduction of greater both land and marine defence platforms. than 65 per cent. Toxicology of nanomaterials Work has also continued with National ANSTO received a scientific research Nuclear Laboratories related to providing grant worth $1.8 million from the National information and data to allow a research Health and Medical Research Council glovebox line facility to be built in the UK (NHMRC) for the University of to treat plutonium residue wastes. The Queensland and ANSTO's Dr Suzanne work includes research into the flexibility Smith to investigate the toxicology of of the glass ceramic waste form to take nanomaterials, a subject currently under variations in the waste and the public scrutiny. This research will help development of the process equipment. scientists understand the effects of ANSTO has been demonstrating its HIP nanoparticles once released into the process technology for the treatment of surrounding environment. 4400 cubic metres of calcined wastes at synrocANSTO United Kingdom and Idaho in the US. The work funded by the United States work US Department of Energy (USDOE) has estimated that ANSTO’s process has the ANSTO has been demonstrating its HIP potential to save between $2-4 billion waste form technology to a number of dollars in disposal costs alone and that it legacy radioactive wastes both in the US reduces the regulatory risk by being able and the UK. The technology is gaining to meet various waste acceptance criteria interest for its ability to offer significant independent of the final disposal site. 25  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities ANSTO has been working with the Idaho Neutron-beam instruments National Laboratory to carry out trials on simulants and on radioactive surrogates OPAL’s neutron research facilities contain at various scales. This work has sparked neutron-beam instruments which require interest in the USDOE and is funding OPAL’s neutrons for solving complex further work to determine the applicability research and industrial problems in many to other challenging wastes across the important fields. nuclear research sites. Neutron scattering allows scientists to see what x-rays cannot. They look at Operation of OPAL and materials from the inside out, other facilities understanding their atomic structure and how materials respond to various stimuli. OPAL ANSTO’s neutron-beam instruments are: Over the past year, the OPAL research • Echidna – a high-resolution powder reactor has operated as scheduled, and is diffractometer working well. Results from performance tests are being finalised, availability and • Koala – a laue diffractometer utilisation have markedly increased and • Kowari – a residual-stress OPAL’s neutron beam instruments have diffractometer been able to produce their first research results. The performance of the • Platypus – a reflectometer instruments is meeting and exceeding the • Quokka – a small-angle neutron design specifications. OPAL’s operation scattering instrument has also allowed Australia’s domestic radiopharmaceuticals supply to be re- • Taipan - a thermal triple-axis established, as has ANSTO’s multi-million spectrometer dollar silicon irradiation business. • Wombat – powder diffractometer OPAL’s successes over the past year have National Deuteration Facility reinforced Australia’s leadership, both in the region and the world, in nuclear ANSTO’s National Deuteration Facility operations generally. The experience offers the capability to produce molecules gained in building and commissioning where all or part of the molecular such a significant piece of both nuclear hydrogen is in the form of the stable and scientific infrastructure is invaluable (non-radioactive) isotope of hydrogen for Australia. called deuterium. ANSTO Annual Report 2008-2009  26 This important technique enables ANTARES Accelerator scientists to more effectively investigate the relationship between the structure and ANTARES (The Australian National Tandem function of proteins, DNA, synthetic Accelerator for Applied Research) is used polymers and other materials known as by ANSTO scientists in dating and 'soft matter'. identification of elements. ANTARES can be used in beam analysis Radiopharmaceutical production where the objective is to determine what facilities type of elements the sample is made from ANSTO supplies radiopharmceuticals to and how atoms are distributed throughout over 220 nuclear medicine centres across the sample. Australia and exports to New Zealand and ANTARES is also used for accelerator South East Asia. mass spectrometry, which is a technique ANSTO simultaneously produces large used to detect minute quantities of quantities of different isotopes, such as radioisotopes in samples. Mo-99 and iodine-131, used for the STAR Accelerator diagnosis and treatment of serious illnesses such as cancer. STAR (Small Tandem for Applied Research) is a tandem particle accelerator ANSTO’s low enriched uranium Mo-99 used for the analysis of a diverse range of manufacturing facility is being used to materials. meet the huge demand for this important radiopharmaceutical, which is the basis of A compact accelerator, STAR has been 80 per cent of nuclear medicine designed specifically for dual functionality procedures performed around the world. providing both ion beam analysis and accelerator mass spectrometry. The other two main radiopharmaceuticals produced are iodine-131, used to treat Irradiation facility hyperthyroidism and in the diagnosis and ANSTO has an irradiation facility which is treatment of thyroid cancer, and thallium- used to irradiate items for medical health, 201, used to detect the location of industry, agriculture and research. damaged heart muscle. The facility, known as GATRI (Gamma Therapeutic Goods Administration licensed Technology Research Irradiator), provides facilities at Lucas Heights and at the a comprehensive range of irradiation National Medical Cyclotron in Camperdown, services including: New South Wales, produce more than 80 per cent of the annual diagnostic nuclear • Sterilisation of frozen human bone and medicine for procedures in Australia. tendons for transplants and grafting in surgery 27  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities Cyclotrons In addition to the new PETNET Solutions facilities, ANSTO operates the National Medical Cyclotron, an accelerator used to produce certain short-lived radioisotopes for nuclear medicine procedures. Community and education Over the last year ANSTO has welcomed over seven and a half thousand people through its gates to take a tour of its facilities and meet its people. Visitors range from primary and high school students, university students, community organisations, businesses and politicians. ANSTO also sponsored a range of activities including Science Exposed, ANSTO runs a highly successful education and tours program offering free science teaching resources and Science in the City, the local Sutherland science information for students. Shire Australia Day celebrations and the conferences of the Australian Science • Irradiation of the Queensland fruit fly to Teachers Association, the NSW Science help control infestations Teachers Association and the Victorian • Irradiation of quarantine goods Science Teachers Association. • Plant mutation studies Three professional development days were • Sterilisation of medical products also held to increase the knowledge of teachers in the following areas - physics, • Accelerating long term storage effects chemistry, biology and earth and on products such as plastics and environmental science. electronics. As part of its commitment to keeping The precision irradiation services, dose the local community informed of its measurement and controlled temperature activities, ANSTO held two public capabilities provided by GATRI are unique Community Discussions in 2008-2009. in Australia. Each forum focused on a different topic of interest. ANSTO Annual Report 2008-2009  28 Businesses External earnings by ANSTO business and enterprise groups amounted to $43.509 million in 2008-2009. This was up $3.019 million from the previous year. ARI ARI is the commercial division of ANSTO that produces radiopharmaceuticals. It is the primary supplier of radiopharmaceuticals in Australia, operating from ANSTO’s Lucas Heights campus and the National Medical Cyclotron at the Royal Prince Alfred Hospital. Each year, around 500 000 Australians benefit from nuclear medical procedures that use radioisotopes from ARI. ARI supplies over 200 public and private nuclear medicine centres in ANSTO's new molybdenum production facility was in Australia, as well as exporting the final stages of licensing in June and received a full radiopharmaceuticals to Asia, New Zealand licence in September 2009. and other markets. The worldwide shortage has again ARI’s revenue earning was $ 21.367 confirmed the crucial importance of an million in 2008-2009. This was up indigenous supply. $0.694 million from the previous year. Until production is established, ANSTO Molybdenum-99 will maintain regular Mo-99 importation to meet Australian patient needs. In June 2009, ANSTO was working to bring fully on-line a radiopharmaceutical External radiation services manufacturing plant associated with the ANSTO provides radiation services and OPAL reactor, which produces Mo-99. advice to a wide range of Government and The plant was operable and in the final private stakeholders. Radiation safety stages of licensing in June 2009, with a services include radiation safety training, full licence obtained in September 2009. radiation protection advice, measurement and management plan development and In late June, ANSTO supplied small reviews, radiation instrument calibration, batches of Mo-99 to overseas groups to and systems safety and reliability allow verification of the product quality as consultancy. For example, our expertise part of ARPANSA approved ‘proving runs’. 29  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities was obtained by the NSW Government to CeramiSphere Pty Ltd characterise urban residential land contaminated with higher than normal CeramiSphere Pty Ltd is an ANSTO levels of naturally occurring radioactive subsidiary commercialising a patented material. ANSTO also provides services technology that provides encapsulation and advice in the areas of high-dose and controlled release of active molecules irradiation and high-dose dosimetry for for a variety of applications including drug scientific research and the provision of delivery, cosmeceuticals and specialty irradiation services to health care, chemicals. agriculture and industry. Australian Membrane Technologies ANSTO Minerals Pty Ltd ANSTO Minerals is a mining industry Australian Membrane Technologies Pty consultancy group that has specialised Ltd (AMT) has been incorporated and is a knowledge of uranium ore processing. 100 per cent-owned subsidiary of ANSTO. Consulting and research work is carried AMT utilises a unique biological approach out in uranium ore processing and and the use of advanced membranes for extraction; control of naturally occurring the efficient treatment and recycling of radioactive materials in the minerals household and industrial waste water. industry; and process development in hydrometallurgical processes. Partnerships and associated organisations ANSTO Minerals revenue earning in 2008-2009 increased by 51 per cent to AINSE $10.192 Million. Located on ANSTO’s Lucas Heights PETNET campus, AINSE is a not-for-profit A wholly-owned ANSTO subsidiary, association of 39 universities and GNS PETNET Pty Ltd (trading as PETNET Science in partnership with ANSTO. Thirty- Solutions), has constructed an FDG six of the universities are in Australia and production facility with two cyclotrons three are in New Zealand (NZ). AINSE at the Lucas Heights campus. ANSTO celebrated its 50th anniversary this year. plans to use the cyclotrons to resume AINSE’s mission is to advance research, manufacturing FDG in Sydney on a education and training in nuclear science commercial basis. FDG is used in PET and engineering and related fields within scanning, which has produced significant Australasia by being the key link between advances in diagnosis of cancer and other universities, ANSTO and other member medical conditions. organisations and major nuclear science and associated facilities. ANSTO Annual Report 2008-2009  30 ANSTO has a number of cooperative projects underway with the Australian Synchrotron. Photo courtesy Peter Bennett. Access to Major Research Facilities Australian Synchrotron Program Synchrotron radiation-based techniques ANSTO operates the Access to Major are vital to a wide range of research fields: Research Facilities Program. For Australian physics, chemistry, materials science, science to remain at the cutting edge, and structural biology, polymer research, for Australia to benefit from developments environmental science and geophysics. in technology, our scientists must have Synchrotron radiation techniques are access to the best facilities in the world. similar to neutron scattering techniques This program includes large facilities not (that require a reactor such as OPAL) available in Australia, such as synchrotron and the results from each are often radiation sources, high flux neutron beam complementary, thus there is significant sources, high energy physics facilities and overlap in the user communities. It is an astronomical facilities. extremely exciting time for Australian researchers who now have a new During the 2008-2009 financial year, the synchrotron as well as a world-class program funded 89 teams to perform nuclear reactor at home. experiments using facilities in the USA, Europe and Asia. ANSTO lead 14 of ANSTO has been a leader in the these teams. development of synchrotron radiation 31  Australian Nuclear Science and Technology Organisation 2008-2009 report of activities research in Australia since the early 1990’s. ANSTO managed the design and construction of Australia’s first synchrotron beamline, built at the Photon Factory in Japan, and was the managing agent of the Australian Synchrotron Research Program (ASRP) from 1996 to 2008. ANSTO is one of ten foundation investors in the Australian Synchrotron. ANSTO has special access to the Australian Synchrotron averaging six days per year on each beamline. Proposals for this special access are internally reviewed by ANSTO. ANSTO has used this beamtime to perform strategic experiments which are not well suited to a strict scientific merit review; for training and familiarisation of staff on new techniques; for a small molecule crystallography service and to give increased time allocations to ANSTO proposals which have been submitted to the normal scientific merit system. To date ANSTO has received approximately 30 days of beamtime under its agreement, involving experimental teams from all four research institutes. In addition, ANSTO has a number of cooperative projects underway with the Australian Synchrotron. The synchrotron’s online proposal and user administration system was developed and continues to be maintained by the Bragg Institute under a contract from the Australian Synchrotron. This is a significant benefit to users of the synchrotron and the neutron scattering instruments at OPAL as both facilities run the same online user system. ANSTO Annual Report 2008-2009  32 33  Australian Nuclear Science and Technology Organisation Performance against strategic objectives Outcome 1 – Nuclear based infrastructure Objective The Open Pool Australian Light-water research reactor is operational and providing improved core nuclear facilities for industrial and research and development applications during 2008-2009. Indicators Performance Level of compliance with project plan and These indicators were reported on in the achievement of specific milestones: last Annual Report. The project is in the • On time, to the extent within ANSTO’s operational phase. control • Within budget, to the extent within ANSTO’s control Output 1.1 Effective management of the commissioning of the OPAL reactor. Indicators Performance • Complete performance demonstration • As reported in the 2007-2008 Annual (January 2008) Report, completion of the performance demonstration was delayed by the defects relating to the fuel assemblies and the seepage in the reflector vessel which causes degradation of the purity of the heavy water reflector. Heavy water replacement in November 2008, allowed completion of the measurements required for performance demonstration. Following this work, reactor performance levels were formally recognised by awarding Practical Completion of the relevant part of the Reactor Contract. • Complete contract (April 2008). • Finalisation of the contract now requires demonstration of reactor reliability over a 19 month period. 35  Australian Nuclear Science and Technology Organisation Performance against strategic objectives Outcome 2 – Disposition of spent fuel Objective Removal of spent fuel from the ANSTO site in line with stringent safety arrangements and community expectations. Indicators Performance Safety procedures adhered to fully and The ninth and final shipment of HIFAR shipment is: spent fuel left Sydney on 16 March 2009 • On time. and was received at its final destination in the United States on 21 May 2009. The • On budget. shipment was completed on time and in budget. Outcome 3 – Science and technology solutions Output 3.1 Management of core nuclear facilities providing Australia with nuclear capability and credibility from which socio-economic benefits flow to Australia, the research and development community and industry. Indicators Performance 2007-2008 2008-2009 • Research beamline usage – percentage of all available Nil* 68 per cent days, across all instruments. • Research reactor availability – percentage of actual 12 per cent* 84 per cent hours at power as a proportion of total hours planned to be at power. • Accelerator usage – percentage of all available days, excluding maintenance, for tandem accelerators. 79 per cent 85 per cent * OPAL reactor was not operational for most of 2007-08. ANSTO Annual Report 2008-2009  36 Output 3.2 Expert scientific and technical services for and on behalf of government, in support of Australia’s national and international strategic and nuclear policy objectives. Indicators Performance 2007-2008 2008-2009 • Leadership role in national and international forums and 25 29 networked organisations – number of such roles • Person-years by staff on projects that have as a primary 13.5 14.1 objective providing advice to government Output 3.3 The acquisition of knowledge, through research and its utilisation, through innovation, to advance the beneficial applications of nuclear science and technology to problems of environmental, medical, social and industrial importance. Indicators Performance 2007-2008 2008-2009 • Publication and conference papers*: - Books, chapters & monographs 1 2 - Journal articles 261 280 - Conference papers/abstracts 242 226 Total 504 508 • Number of research collaborations 109 224 • New inventions per year - Invention disclosures 7 6 - Provisional patent filing 3 0 *Publications are reported by calendar year (i.e. 2008) 37  Australian Nuclear Science and Technology Organisation Performance against strategic objectives Output 3.4 Education and training provided to industry, universities and schools, including students undertaking studies related to nuclear science and technology and its applications. Indicators Performance 2007-2008 2008-2009 • Number of postgraduates and undergraduates supervised 100 81 • External earnings from training courses $162,750 $152,328 Output 3.5 Regular production and sale of radiopharmaceuticals and radioisotopes for medical and industrial applications and other services, through designated business units. Indicators Performance 2007-2008 2008-2009 • Radioisotope sales (total) $20,589,854 $22,467,627 • Export sales $5,226,941 $4,612,442 • Radiopharmaceutical doses to patients – potential doses 2,024,741 1,967,707 Output 3.6 The exploitation of ANSTO’s expertise, intellectual property and physical assets. Indicators Performance 2007-2008 2008-2009 • Intellectual property being commercialised – inventions 16 10 and designs with active commercialisation plans. Intellectual property being commercialised • External earnings from services and contract research $12,194,216 $15,967,828 • External earnings from land management and CSIRO $5,069,226 $4,068,885 site support ANSTO Annual Report 2008-2009  38 39  Australian Nuclear Science and Technology Organisation Financial statements Notes to and forming part of the Financial Statements for the year ended 30 June 2009 41  Australian Nuclear Science and Technology Organisation ANSTO Annual Report 2008-2009  42 Statement by Directors and Chief Financial Officer AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION Australian Nuclear Science and Technology Organisation STATEMENT BY DIRECTORS AND CHIEF FINANCIAL OFFICER In our opinion, the attached financial statements for the year ended 30 June 2009 have been prepared based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister's Orders made under the Commonwealth Authorities and Companies Act 1997. In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Nuclear Science and Technology Organisation will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the members of the Board. Ziggy Switkowski Adi Paterson Douglas Cubbin Chairman Chief Executive Officer Chief Financial Officer 14 August 2009 14 August 2009 14 August 2009 Sydney Sydney Sydney 43  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 Income Statement for the year ended 30 June 2009 AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION INCOME STATEMENT Consolidated Parent Notes 2009 2008 2009 2008 $'000 $'000 $'000 $'000 INCOME Revenue Revenues from Government 5A 173,115 153,314 173,115 153,314 Goods and services 5B 44,667 40,492 44,004 39,931 Grants 5C 1,916 3,840 1,906 3,645 Interest 5D 8,449 8,861 9,167 8,867 Total Revenue 228,147 206,507 228,192 205,757 Gains Net gains from sale of assets 5E 354 320 354 320 Net foreign exchange gains - non speculative 5F 463 10 434 10 Other income 5G 188 110 188 110 Total Gains 1,005 4 40 976 440 TOTAL INCOME 229,152 206,947 229,168 206,197 EXPENSES Employee expenses 6A 86,374 89,532 87,094 89,375 Suppliers expenses 6B 74,646 62,221 71,633 59,124 Depreciation and amortisation 6C 59,085 60,833 59,010 60,828 Write down and impairment of assets 6D 1,189 2,117 6,849 2,115 Grants 6E 3,651 2,840 3,651 2,840 Finance costs 6F 8,258 8,063 8,258 8,063 TOTAL EXPENSES 233,203 225,606 236,495 222,345 Deficit before income tax (4,051) (18,659) (7,327) (16,148) Income tax benefit 96 7 5 - - Deficit after income tax (3,955) (18,584) (7,327) (16,148) The above statement should be read in conjunction with the accompanying notes ANSTO Annual Report 2008-2009  44 FINANCIAL STATEMENTS 2008-2009 ABUaSTlRaAnLcIAeN NSUhCLeEeAtR SCIENCE AND TECHNOLOGY ORGANISATION BaAsLA aNCt E3S0H EJEuT ne 2009 Consolidated Parent 2009 2 008 2009 2008 Notes $'000 $'000 $'000 $'000 ASSETS Financial assets Cash 7A, 21 3,752 9,302 3,265 3,852 Receivables 7B, 21 9,557 9,844 16,176 14,581 Investments 7C, 21 142,661 127,880 146,979 132,880 Total financial assets 155,970 147,026 166,420 151,313 Non-financial assets Land and buildings 8A 157,645 173,608 157,645 173,608 Infrastructure, plant and equipment and major facilities 8B 612,299 632,542 602,404 632,086 Inventories 8C 8,711 7,701 8,711 7,701 Intangibles 8D 5,241 1,513 5,241 1,513 Other 8E 4,404 1,909 3,634 1,328 Total non-financial assets 788,300 817,273 777,635 816,236 Total assets 944,270 964,299 944,055 967,549 LIABILITIES Payables Suppliers 9E, 21 8,263 9,134 8,150 8,933 Grants 9F, 21 575 1 28 575 128 Other 9G, 21 1,171 1,194 1,171 1,194 Total payables 10,009 10,456 9,896 10,255 Interest bearing liabilities Other 9A, 21 3,308 3 ,116 3,308 3,116 Total interest bearing liabilities 3,308 3 ,116 3,308 3,116 Provisions Employees 9B 24,822 25,776 24,795 25,776 Decommissioning Costs 9C 119,374 181,757 119,374 181,757 Other 9D 2,007 4,571 2,007 4,571 Total provisions 146,203 212,104 146,176 212,104 Total liabilities 159,520 225,676 159,380 225,475 NET ASSETS 784,750 738,623 784,675 742,074 EQUITY 10 Contributed equity 447,856 446,256 447,856 446,256 Reserves 291,119 270,133 290,828 270,146 Retained surpluses 45,775 22,234 45,991 25,672 Total equity 784,750 738,623 784,675 742,074 Current assets 163,400 153,561 173,850 157,848 Non-current assets 780,870 810,738 770,205 809,701 Current liabilities 33,455 41,420 33,315 41,219 Non-current liabilities 126,065 184,256 126,065 184,256 The above statement should be read in conjunction with the accompanying notes 45  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 Statement of Cash Flows AfUoSrT RtAhLeIA NyNeUaCrL EeAnRdSCeIEdN C3E0A NJDuTnEeCH 2NO0L0O9GY ORGANISATION STATEMENT OF CASH FLOWS Consolidated Parent 2009 2 008 2009 2008 Notes $'000 $'000 $'000 $'000 Inflows Inflows Inflows Inflows (Outflows) (Outflows) (Outflows) (Outflows) OPERATING ACTIVITIES Cash received Goods and services 42,682 42,460 42,214 41,714 Interest 8,497 7,507 8,864 7,513 Net GST received from Australian Taxation Office 4,087 4,205 3,158 4,205 GST receipts from Customer 4,213 3,886 4,186 3,886 Appropriations 173,115 153,314 173,115 153,314 Total cash received 232,594 211,372 231,537 210,632 Cash used Employees (79,256) (88,409) (88,075) (88,252) Suppliers (102,103) (72,730) (90,080) (68,571) Total cash used (181,359) (161,139) (178,155) (156,823) Net cash from operating activities 11 51,235 50,233 53,382 53,809 INVESTING ACTIVITIES Cash received Proceeds from sale of property, plant and equipment 1,564 1,089 1,564 1,089 Proceeds from sale/maturity of investments 64,189 139,896 64,189 139,896 Total cash received 65,753 140,985 65,753 140,985 Cash used Purchase of property, plant and equipment (45,850) (34,876) (36,234) (34,412) Loans to related parties - - (6,800) (3,734) Purchase of investments (78,288) (183,673) (78,288) (188,673) Total cash used (124,138) (218,549) (121,322) (226,819) Net cash used by investing activities (58,385) (77,564) (55,569) (85,834) FINANCING ACTIVITIES Cash received Appropriation - contributed equity 1,600 32,400 1,600 32,400 Total cash received 1,600 32,400 1,600 32,400 Net cash from financing activities 1,600 32,400 1,600 32,400 Net increase/(decrease) in cash held (5,550) 5,069 (587) 375 Cash at 1 July 9,302 4,233 3,852 3,477 Cash at 30 June 3,752 9,302 3,265 3,852 The above statement should be read in conjunction with the accompanying notes ANSTO Annual Report 2008-2009  46 FINANCIAL STATEMENTS 2008-2009 ASUStaTRtAeLmIANeNnUtC oLEfA RchSCaIEnNgCeEsA NiDnT EeCqHuNOitLyOGY ORGANISATION SfToATrE tMhEeNT yofeCaHrA NeGnEdS eindEQ 3U0IT YJune 2009 Consolidated Asset Retained Surpluses Revaluation Reserve Other Reserves 2009 2008 2009 2008 2009 2008 $'000 $'000 $'000 $'000 $'000 $'000 Opening Balance 22,234 56,465 229,248 229,765 40,885 25,260 Income and Expenses Foreign currency translation - - - - 19 (22) Revaluation increment - - 48,463 (517) - - Subtotal income and expenses recognised directly in equity - - 48,463 (517) 19 (22) Deficit for the period (3,955) (18,584) - - - Total income and expenses (3,955) (18,584) 48,463 (517) 19 (22) Contributions by Owners Appropriation (equity injection) - - - - - Sub-total Transactions with Owners - - - - - - Transfers between equity components 27,496 (15,647) - - (27,496) 15,647 Closing balance as at 30 June 45,775 22,234 277,711 229,248 13,408 40,885 Parent Asset Retained Surpluses Revaluation Reserve Other Reserves 2009 2008 2009 2008 2009 2008 $'000 $'000 $'000 $'000 $'000 $'000 Opening Balance 25,672 57,467 229,239 229,765 40,907 25,260 Income and Expenses Revaluation increment - - 48,328 (526) - - Subtotal income and expenses recognised directly in equity - - 48,328 (526) - - Deficit for the period (7,327) (16,148) - - - - Total income and expenses (7,327) (16,148) 48,328 (526) - - Transaction with Owners Contributions by Owners Appropriation (equity injection) - - - - - - Sub-total Transactions with Owners - - - - - - Transfers between equity components 27,646 (15,647) - - (27,646) 15,647 Closing balance as at 30 June 45,991 25,672 277,567 229,239 13,261 40,907 The above statement should be read in conjunction with the accompanying notes 47  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 ASUtSaTtReALmIANenNUt CoLEfA cRhSaCInENgCeEsA NinD TeECqHuNiOtLyOGY ORGANISATION SfToArT EtMhEeN Tyoef CaHrA NeGnEdSeindE Q3U0IT YJune 2009 Consolidated Contributed Equity/Capital Total Equity 2009 2008 2009 2008 $'000 $'000 $'000 $'000 Opening Balance 446,256 413,856 738,623 725,346 Income and Expenses Foreign currency translation - - 19 (22) Revaluation increment - - 48,463 (517) Subtotal income and expenses recognised directly in equity - - 48,482 (539) Deficit for the period - - (3,955) (18,584) Total income and expenses - - 44,527 (19,123) Contributions by Owners Appropriation (equity injection) 1,600 32,400 1,600 32,400 Sub-total Transactions with Owners 1,600 32,400 1,600 32,400 Transfers between equity components - - - - Closing balance as at 30 June 447,856 446,256 784,750 738,623 Parent Contributed Equity/Capital Total Equity 2009 2008 2009 2008 $'000 $'000 $'000 $'000 Opening Balance 446,256 413,856 742,074 726,348 Income and Expenses Revaluation increment - - 48,328 (526) Subtotal income and expenses recognised directly in equity - - 48,328 (526) Deficit for the period - - (7,327) (16,148) Total income and expenses - - 41,001 (16,674) Transaction with Owners Contributions by Owners Appropriation (equity injection) 1,600 32,400 1,600 32,400 Sub-total Transactions with Owners 1,600 32,400 1,600 32,400 Transfers between equity components - - - - Closing balance as at 30 June 447,856 446,256 784,675 742,074 The above statement should be read in conjunction with the accompanying notes ANSTO Annual Report 2008-2009  48 FINANCIAL STATEMENTS 2008-2009 Schedule of Commitments not recognised as liabilities AaUsS TaRtA 3LI0AN JNuUnCLeE A2R0S0C9IENCE AND TECHNOLOGY ORGANISATIONSCHEDULE OF COMMITMENTS NOT RECOGNISED AS LIABILITIES Consolidated Parent Notes 2009 2008 2009 2008 $'000 $'000 $'000 $'000 BY TYPE CAPITAL COMMITMENTS Infrastructure, plant and equipment 14,485 5,913 14,485 5,913 Fuel elements purchase 9,830 618 9,830 618 Total capital commitments 24,315 6,531 24,315 6,531 By maturity Capital commitments payable One year or less 16,509 2,949 16,509 2,949 From one to five years 7,806 3,582 7,806 3,582 24,315 6,531 24,315 6,531 OTHER COMMITMENTS Replacement Research Reactor Project (OPAL) (b) 9,340 12,044 9,340 12,044 Disposition of spent fuel (a) 1,234 19,690 1,234 19,690 Operating lease (c) 2,136 2,274 2,136 2,274 Return of waste to Australia (d) 1,223 - 1,223 - Total other commitments 13,933 34,008 13,933 34,008 Total commitments payable 38,248 40,539 38,248 40,539 Other commitments receivable Replacement Research Reactor Project (OPAL) (b) - - - - Disposition of spent fuel (a) 1,234 19,690 1,234 19,690 GST recoverable from Australian Taxation Office 2,210 594 2,210 594 Total other commitments receivable 3,444 20,284 3,444 20,284 Net other commitments 10,489 13,724 10,489 13,724 By maturity - other commitments One year or less 9,400 12,044 9,400 12,044 From one to five years 1,163 - 1,163 - 10,563 12,044 10,563 12,044 By maturity - operating lease - minimum payments One year or less 137 137 137 137 From one to five years 685 685 685 685 Over five years 1,314 1,452 1,314 1,452 2,136 2,274 2,136 2,274 (a) In 1997-1998 the Government determined to provide $99.011 million in 2009 dollars ($99.005 million in 1998 dollars) to remove spent fuel rods from the Lucas Heights Science and Technology Centre and meet the costs of reprocessing offshore. An amount of $89.394 million has been drawn down. The amount of $1.234 million is not included in the commitment by maturity figures as the commitment payable is fully offset by the commitment receivable. (b) A contract was executed on 13 July 2000 between ANSTO and INVAP SE for the design, construction and commissioning of a replacement research reactor at Lucas Heights. The amount of $9.340 million (2008: $12.044 million) is included in the commitment by maturity. (c) ANSTO has a twenty five year lease contract with Central Sydney Area Health Services with an annual rental payable of $137,000. The annual rental is subject to review every three years. (d) ANSTO has a commitment relating to the return to Australia of the processed waste from HIFAR fuel rods as follows: • From 22 Dec 2010, ANSTO is commited to pay an annual combined storage and management fee of AUD 120,165 to Nuclear DecommissioningAuthority (NDA) of the UK until the return of the waste to Australia in 2015/2016. • In 2013, ANSTO is commited to providing a "performance bond" to Cogema of France of a sum equivalent to $1.5 miilion French Francs in 1999 terms or AUD 501,836 in 2009 dollars. The timing of the other commitments payable is matched to the receipt of other commitments receivable. The amounts reported as commitments payable includes GST where relevant. Recoveries due from the Australian Taxation Office in relation to commitments payable are disclosed as commitments receivable. The above schedule should be read in conjunction with the accompanying notes. 49  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 ASUcShTReAdLIuAlNeN UoCfL CEAoRnStCinIEgNCeEnAcNiDeTsECHNOLOGY ORGANISATION SaCsH EaDtU 3LE0 OJFuCnONeT 2IN0G0EN9CIES Consolidated Parent 2009 2008 2009 2008 $'000 $'000 $'000 $'000 Contingent Liabilities Guarantee (a) 1,480 1,480 1,480 1,480 Waste return to Australia (b) 11,710 - 11,710 - 13,190 1,480 13,190 1,480 (a) Unused overdraft facility. (b) ANSTO has a contingent liability with COGEMA relating to the waste return services amounting to 35 million French Francs in 1999 terms. The contract contains a formula for escalation and it is equivalent to be AUD$11.7 million in 2009 dollars. ANSTO still has the likelihood of claims in relation to asbestos related diseases, as such claims are however covered by the Department of Finance and Deregulation provision dealing with asbestos related claims against any Commonwealth Authorities including ANSTO in the event of any litigation or claim for compensation. The above schedule should be read in conjunction with the accompanying notes. ANSTO Annual Report 2008-2009  50 FINANCIAL STATEMENTS 2008-2009 AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NOTES TON ANoDt eFsO RtoMI NaGn PdA RfoT rOmF iTnHgE FpINaArNt CoIAf Lt hSTeA TFEiMnEaNnTcSi al Statements for the year ended 30 June 2009 Note Description 1 Economic dependency 2 Summary of significant accounting policies 3 Events subsequent to reporting date 4 Segment and outcomes reporting 5 Income 6 Expenses 7 Financial assets 8 Non-financial assets 9 Liabilities 10 Equity 11 Cash flow reconciliation 12 Government funding 13 Board membership 14 Remuneration of members of the Board 15 Remuneration of executives 16 Replacement Research Reactor Project (OPAL) costs 17 Insurances 18 Remuneration of auditors 19 Related party disclosures 20 Trust money 21 Financial instruments 51  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 ANUSoTtReAsLI AtNoN aUCnLdEA fRoSrCmIENinCEgA pNDaTrEt CoHfN OthLOeG YFOinRGaAnNcISiaATlI OSNtatements NfOoTrE SthTOeA yNeDaFOr ReMnINdGePdAR 3T 0OF JTuHEnFeIN 2AN0C0IA9L STATEMENTS 1 Economic dependency The continued existence and operations of the Australian Nuclear Science and Technology Organisation (ANSTO) and its present programs is dependent on Government policy and on continuing funding by the Commonwealth Government for ANSTO's administration and programs. 2 Summary of significant accounting policies (a) Basis of preparation of the Financial Report The financial statements and notes are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 (CAC Act) and are a General Purpose Financial Report. They have been prepared: i. having regard to the provisions of the Australian Nuclear Science and Technology Organisation (ANSTO) Act 1987 (as amended) ii. in accordance with: . Finance Minister's Orders (FMOs) for reporting periods ending on or after 1 July 2008; and . Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial report has been prepared on an accruals basis and is in accordance with the historical cost convention, except for certain assets which are stated at fair value. The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Unless an alternative treatment is specifically required by an Accounting Standard or the FMOs, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to ANSTO and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies. Unless alternative treatment is specifically required by an Accounting Standard or the FMOs, revenues and expenses are recognised in the Income Statement when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured. (b) Significant Accounting Judgements and Estimates In the process of applying the accounting policies listed in this note, ANSTO has made the following judgements that have the most significant impact on the amounts recorded in the financial statements. The fair value of land and buildings has been taken to be the market value of similar properties as determined by an independent valuer. Apart from assumptions and estimates relating to the Decommissioning provision, no other accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period. (c) Statement of Compliance Australian Accounting Standards require a statement of compliance with International Financial Reporting Standards (IFRSs) to be made where the financial report complies with these standards. Some Australian equivalents to IFRSs and other Australian Accounting Standards contain requirements specific to not-for-profit entities that are inconsistent with IFRS requirements. ANSTO is a not-for-profit entity and has applied these requirements, so while this financial report complies with Australian Accounting Standards including Australian Equivalents to International Financial Reporting Standards (AEIFRSs) it does not comply with IFRS. ANSTO Annual Report 2008-2009  52 FINANCIAL STATEMENTS 2008-2009 AUSNToRAteLIsA NtoN UaCnLdEA fRoSrCmIEiNnCgE ApNaDrtT EoCfH tNhOeL OFGinY aOnRGcAiaNlI SSATtaIOtNements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2009 (d) Adoption of new Australian Accounting Standard requirements No accounting standard has been adopted earlier than the application date as stated in the standard. ANSTO is required to disclose Australian Accounting Standards and Interpretations which have been issued but are not yet effective that have not been early adopted by ANSTO. There are no such standards that have resulted in a change to ANSTO's accounting policies or that have affected the amounts reported in the current or prior periods or are estimated to have a financial affect in future reporting periods. Other effective requirement changes The following amendments, revised standards or interpretations have become effective but have had no financial impact or do not apply to the operations of ANSTO. Amendments: • 2007-2 Amendments to Australian Accounting Standards [AASB Interpretation 12] • 2007-9 Amendments to Australian Accounting Standards [AASs 27, 29 and 31] • 2008-10 Amendments to Australian Accounting Standards [AASB 7, 12 and 127] • 2008-12 Amendments to Australian Accounting Standards [AASB 7, 12, 127 and Interpretation 113] • 2009-3 Amendments to Australian Accounting Standards [AASB 139 and Interpretation 9] • Restriction of the fair value option under AASB139 Interpretations: • AASB Interpretation 4 Determining whether an Arrangement contains a Lease • AASB Interpretation 12 Service Concession Arrangement (Feb 2007) • AASB Interpretation 13 Customer Loyalty Programmes • AASB Interpretation 14 AASB 119 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction • AASB Interpretation 129 Service Concession Arrangements: Disclosures • AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities Future Australian Accounting Standard requirements The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the impact of adopting these pronouncements when effective will have no material financial impact on future reporting periods. • AASB 2007-3 Amendments to Australian Accounting Standards [AASB 8] • AASB 2007-6 Amendments to Australian Accounting Standards [AASB 123] • AASB 2007-8 Amendments to Australian Accounting Standards [AASB 101] • AASB 2007-10 Amendments to Australian Accounting Standards [AASB 101] • AASB 2008-3 Amendments to Australian Accounting Standards [AASB 3 and 127] • AASB 2008-7 Amendments to Australian Accounting Standards [AASB 1, 118, 121, 127 and 136] • AASB 2008-11 Amendments to Australian Accounting Standards [AASB 3] • AASB 2009-1 Amendments to Australian Accounting Standards [AASB 1, 111 and 123] • AASB 2009-2 Amendments to Australian Accounting Standards [AASB 4, 7, 1023 and 1038] • AASB Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities 53  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 AUSNTRoAtLeIAsN tNoU aCLnEdA RfoSrCmIENinCEg ApNaDrTtE oCHf NthOLeO FGiYnOaRnGcAiNaIlS ASTtIaOtNements NOTfEoSrT tOhAeN DyeFaOrR MeInNGdePAdR T30O FJTuHnEeF IN2A0N0C9IAL STATEMENTS (e) Reporting by outcomes A comparison of current and prior years' figures by outcome as specified in the Portfolio Budget Statements relevant to ANSTO, is presented in Note 4. (f) Revenue recognition Revenue from Government Funding received or receivable from Department of Innovation, Industry, Science and Research (DIISR) (appropriated to ANSTO as a CAC Act body) is recognised as Revenue from Government unless it is in the nature of an equity injection. Equity injections Amounts that are designated as equity injections for a year are recognised directly in contributed equity in that year. Operating revenue from goods and services Revenue from the sale of goods is recognised when: • The risks and rewards of ownership have been transferred to the buyer; • The seller retains no managerial involvement nor effective control over the goods; • The revenue and transaction costs incurred can be reliably measured; and • It is probable that the economic benefits associated with the transaction will flow to ANSTO. Receivables for goods and services are recognised at the nominal amounts due less any provision for doubtful debts. Collectibility of debts is reviewed at balance date. Provision is made when collectibility of the debt is no longer probable. Revenue received in advance Revenue received in advance is initially brought to account as "unearned revenue" and subsequently recognised as revenue when earned. Contract revenue Revenue from the rendering of a service is recognised by reference to the stage of completion of each contract. The stage of completion is determined by reference to the proportion that the completed physical contract work bears to the estimated total physical contract work. Interest revenue Interest revenue is recognised as the interest is received or is entitled to be received. Revenue from sale of assets Revenue is recognised when control of the asset has passed to the buyer. Core operations All material revenues described in this note are revenues relating to the core operating activities of ANSTO. Details of revenue amounts are given in Note 5. Resources Received Free of Charge Resources received free of charge are recognised as revenue when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature i.e. whether they have been generated in the course of the ordinary activities of ANSTO. ANSTO Annual Report 2008-2009  54 FINANCIAL STATEMENTS 2008-2009 AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NOTNESoTteOsA NtoD FaOnRdM IfNoGrPmARinTgO FpTaHrEt FoINfA tNhCeIA FL iSnTAaTnEcMiEaNl TSStatements for the year ended 30 June 2009 (g) Employee benefits Benefits Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for wages and salaries and annual leave are measured at their nominal amounts. Other employees benefits expected to be settled within 12 months of their reporting date are also measured at their nominal amounts. The provision for employee entitlements encompasses annual leave and long service leave that ANSTO has a present obligation to pay resulting from employee services provided up to balance date. The leave liabilities are calculated on the basis of employees' remuneration, including employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. The current Enterprise Agreement pay rates applicable on 28 December 2009 are considered in the calculation. The financial effect of this was an additional accrual of $0.305 million (2008: $0.306 million). General leave The Enterprise Agreement provides under the heading General Leave for an employee entitlement which combines sick leave, carer's leave and leave for other prescribed purposes. No provision has been made for general leave as all such leave is non-vesting and the average general leave taken by employees is less than the annual entitlement. Separation and redundancy Provision is made for separation and redundancy benefits payments. ANSTO recognises a provision for termination when it has developed a detailed formal plan for the termination and has informed those employees affected that it will carry out the termination. The total provision in the accounts for 2 staff (2008: 39) amounted to $ 0.237 million (2008: $2.6 million). (h) Superannuation ANSTO contributes to the Commonwealth Superannuation (CSS) and the Public Sector (PSS) superannuation schemes or PSS accumulation plan (PSSap) which provide retirement, death and disability benefits to employees. The CSS and PSS are defined benefit schemes for the Commonwealth while the PSSap is a defined contribution scheme. Contributions to the schemes are at rates calculated to cover existing and emerging obligations. Current contribution rates in 2009 were 12.5% (2008 10.9%) of salary (PSS), 25.7% (2008 25.3%) of salary (CSS), and 15.4% (2008 15.4%) of salary (PSSap). An additional 3% is contributed to PSS and CSS for employer productivity benefits. For those staff who do not contribute to any of these schemes, ANSTO contributes 9% of salary to the Australian Government Employees Superannuation Trust fund or to the complying fund nominated by the employee. The Enterprise Agreement signed in April 2009 provided that all ANSTO employees under the agreement that contributed to other than the Commonwealth superannuation schemes received contribution of 15.4% of salary. Contributions during the year are detailed in Note 6A. No liability is shown for superannuation in the Balance Sheet as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth. (i) Leases Operating leases are expensed on a basis which is representative of the pattern of benefits derived from the leased assets. (j) Cash Cash and cash equivalents includes notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount. 55  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 AUSNTRoAtLeIAsN toNU aCnLEdA RfoSrCmIENinCgE ApNaDrTt EoCfH NthOeLO FGiYnOaRnGcAiaNIlS SATtIaOtNements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2009 (k) Financial instruments ANSTO classifies its financial assets in the following categories: • 'financial assets as 'at fair value through profit or loss' • 'held-to-maturity investments' • 'loans and receivables'. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’. Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis except for financial assets ‘at fair value through profit or loss’. Financial assets at fair value through profit or loss Financial assets are classified as financial assets at fair value through profit or loss where the financial assets have been acquired principally for the purpose of selling in the near future. Assets in this category are classified as current assets. Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in the profit or loss. The net gain or loss recognised in the profit or loss incorporates any interest earned on the financial assets. Where a reliable fair value cannot be established for unlisted investments in equity instruments, cost is used. ANSTO has no such instruments. Held-to-maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the group has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis. Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. They are included in current assets, except those with for maturities greater than 12 months after the balance sheet date. These are classified as non current assets. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate. Impairment of financial assets Financial assets are assessed for impairment at each balance date. Financial Liabilities Financial liabilities are recognised and derecognised upon ‘trade date’. Other financial liabilities Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. ANSTO Annual Report 2008-2009  56 FINANCIAL STATEMENTS 2008-2009 AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2009 The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Supplier and other payables Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). (l) Bad and doubtful debts Bad debts are written off during the period in which they are identified. Provision for doubtful debts is made when collection of the debt is judged to be less rather than more likely. (m) Buildings, infrastructure, plant and equipment and major facilities Asset recognition threshold Items of buildings, infrastructure, plant and equipment and major facilities are recorded at cost of acquisition and depreciated as outlined below. Items of plant and equipment with a cost of less than $3,000 are expensed in the year of acquisition. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located at the end of its useful life. This is particularly relevant to ‘make good’ provisions in buildings, infrastructure, plant and equipment and major facilities, taken up by ANSTO where there exists an obligation to restore the property to its original condition. These costs are included in the value of the asset it relates to with a corresponding provision for the ‘make good’ taken up. The cost of assets constructed by the entity includes the cost of materials, direct labour and an appropriate proportion of fixed and variable overheads. Revaluations Fair values for each class of asset are determined as shown below: Asset Class Fair value measured at Land Market Value Buildings Market Value Site infrastructure Market Value Electrical infrastructure Market Value Plant and equipment Market Value National and major facilities Market Value Land, buildings, plant and equipment are carried at fair value, and will be valued every five years such that the carrying amount of each asset is not materially different, at reporting date, from its fair value. . Freehold land was revalued as at 30 June 2007 . Buildings on freehold land were revalued at 30 June 2007 . Plant and equipment were revalued at 30 June 2007 . Infrastructure was revalued at 30 June 2007 . Other national and major facilities were revalued at 30 June 2007 with the exception of OPAL and Neutron Beam Instruments (NBI) . . OPAL and NBI facilities were revalued at 30 June 2009 . The HIFAR reactor including instrumentation was written off following its closure during the 2006-07 year. A provision for the cost of decommissioning of HIFAR over an extended period remains in the accounts. 57  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NOTNESoTteOsA NtoD FaOnRdM IfNoGrPmARinTgO FpTaHrEt FoINfA tNhCeIA FL iSnTaATnEcMiEaNl TSStatements for the year ended 30 June 2009 Following initial recognition at cost, buildings, infrastructure, plant and equipment and major facilities are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through profit and loss. Revaluation decrements for a class of assets are recognised directly through profit and loss except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. The valuation of land, buildings, infrastructure, plant and equipment including national and other major facilities were performed by independent valuers of the Australian Valuation Office (AVO), Mr. Frank Andreatta and Mr. Simon O'Leary (registered Valuer Nos. 2388 and 1128 respectively) at 30 June 2007, based on the asset list at 28 February 2007. Certain assets (Note 8B) are valued at Board Valuation effective 30 June 2007. The OPAL and NBI valuations were performed by Mr. Simon O'Leary (registered Valuer No. 1128) of AVO based on the asset list at 31 May 2009. Depreciation and amortisation Items of buildings, infrastructure, plant and equipment and major facilities, but excluding freehold land, are depreciated over their estimated useful lives to ANSTO using the straight line method. Depreciation and amortisation rates applying to each class of depreciable asset are based on the following useful lives: 2009 2008 Buildings on freehold land 5 to 50 years 5 to 50 years Plant and equipment 2 to 30 years 2 to 30 years Infrastructure 20 years 20 years National and major facilities 5 to 40 years 5 to 40 years The depreciation rates (useful lives) of ANSTO's buildings, infrastructure, plant and equipment and major facilities have been reviewed during the year and found to be appropriate. The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 6C. Impairment All assets were assessed for impairment at 30 June 2009. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. ANSTO Annual Report 2008-2009  58 FINANCIAL STATEMENTS 2008-2009 AUSNTRoAtLeIAsN toNU aCnLEdA RfoSrCmIENinCgE ApNaDrTt EoCfH NthOeLO FGiYnOaRnGcAiaNIlS SATtIaOtNements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2009 (n) Inventories Stores are valued at purchase cost on a first-in-first-out basis. Provision is made for obsolete inventory and diminution in value. Inventories of Cobalt-60 and enriched, natural and depleted uranium are valued on the basis of net realisable value. Stocks of reactor fuel are valued at average purchase price. Heavy water is valued at net realisable value. Finished goods and work in progress are valued at cost of direct materials and labour plus attributable costs that are capable of being allocated on a reasonable basis. (o) Intangibles Software Items of software are recorded at cost and amortised as outlined below. Items with a cost of less than $3,000 are expensed in the year of acquisition. There is no material internal software development. Software and licences are reported at deemed cost. Amortisation Intangibles are amortised over their estimated useful lives to ANSTO using the straight line method. Amortisation rates applying to intangibles are as follows: 2009 2008 Purchased software 2 - 7 years 2 - 7 years Licences 3 years 3 years The amortisation rates (useful lives) of ANSTO's software and licences have been reviewed during the year and found to be appropriate. The aggregate amount of amortisation allocated for each class of asset during the reporting period is disclosed in Note 6C. Impairment All assets were assessed for impairment at 30 June 2009. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount (p) Patents Due to the uncertain commercial value of patents, trademarks, designs and applications, and because benefits extending beyond one accounting period cannot be assured, the costs associated with the development and registration of patents are expensed in the year in which they are incurred, unless recoverability is assured beyond any reasonable doubt. At 30 June 2009 there were 208 patents, trademarks, design and applications (90 at 30 June 2008) registered to ANSTO and no associated costs are recognised as an asset (nil at 30 June 2008). 59  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 AUSNTRoAtLeIAsN toNU aCnLEdA RfoSrCmIENinCgE ApNaDrTt EoCfH NthOeLO FGiYnOaRnGcAiaNlIS SATtIaOtNements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2009 (q) Foreign currency Transactions denominated in a foreign currency are converted to Australian currency at the rate of exchange prevailing at the date of the transaction. At balance date, amounts receivable and payable in foreign currency are translated to Australian currency at the exchange rate prevailing at that date and any exchange differences are brought to account in the Income Statement. ANSTO did not enter into specific forward exchange contracts during the reporting period. (r) Taxation ANSTO is exempt from all forms of taxation in Australia except fringe benefits tax (FBT) and the goods and services tax (GST). ANSTO is not subject to exemption from any foreign taxation laws relative to its overseas operations. ANSTO's subsidiaries are subject to normal taxation. ANSTO Inc, a USA company, has recognised a Deferred Tax Asset of USD $251,000 or AUD $318,000 (2008: USD $175,000 or AUD $178,000). Unbooked deferred tax assets in relation to tax losses in the subsidiaries is $778,192 (2008:$921,090). In respect of the subsidiaries, current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period's taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences except: • when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or • when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised, except: • when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or • when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. (s) Assets received free of charge The acquisition of assets free of charge or for a nominal amount are recognised at fair value. ANSTO Annual Report 2008-2009  60 FINANCIAL STATEMENTS 2008-2009 AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NOTNEoStTeOsA tNoD FaOnRdM IfNoGrmPAiRnTgO FpTaHrEt FoINf AtNhCeI AFLiSnTaAnTEcMiaElN TSStatements for the year ended 30 June 2009 (t) Principles of consolidation ANSTO has investments in a number of companies (refer Note 7D ) over which it has control. These companies have been established for the purpose of (i) commercialisation of ANSTO's intellectual property or (ii) a requirement for ANSTO to operate in the industry as in the case of ANSTO Inc., the US operation. (u) Comparatives Where necessary, comparative information for the preceding financial year has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures. (v) Rounding Amounts are rounded to the nearest one thousand dollars except in relation to: - remuneration of members of the Board - remuneration of executives - remuneration of auditors - financial information about the subsidiary companies and their balances 3 Events subsequent to reporting On 21 July 2009, both AMT and CeramiSphere's Board resolved to issue shares to ANSTO equivalent to the amount of the convertible notes and outstanding interest as at 30 June 2009. On 24 July 2009, AMT and ANSTO mutually agreed to terminate the Licence Agreement that gave AMT rights to develop and commercialise the technology. Subsequently ANSTO assigned an exclusive licence to Avant Garde Pty Ltd to commercialise the technology through their newly created company called Bio-Gill Environmental Pty Ltd. 61  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NOTNEoStTeOs AtNoD aFnOdR MfoINrGmPiAnRgT OpFarTtH oEfF ItNhAeN CFIiAnLaSnTcAiTaElM SEtNaTtSements for the year ended 30 June 2009 4 Segment and outcomes reporting Reporting by segments for Parent Entity ANSTO operates in a single industry, nuclear scientific research industry mainly within Australia. Reporting by outcomes: ANSTO has three outcomes and each have one output. Outcome 1: Replacement Research Reactor Project (OPAL) Outcome 2: Disposal of spent fuel Outcome 3: Core business: science and technology Major Classes of Departmental Revenues and Expenses by Output Groups and Output - Parent Entity Outcome 1 Outcome 2 Outcome 3 Total Output 1 Output 2 Output 3 2009 2008 2009 2008 2009 2008 2009 2008 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Operating revenues Revenue from Government 10,079 798 163,036 152,516 173,115 153,314 Sale of goods and services 44,004 39,931 44,004 39,931 Interest 9,167 8,867 9,167 8,867 Net gain from sale of assets 354 320 354 320 Other 2,528 3,765 2,528 3,765 Total operating revenues 0 0 10,079 798 219,089 205,399 229,168 206,197 Operating expenses Employees 561 66 86,533 89,309 87,094 89,375 Suppliers 8,569 28 63,064 59,096 71,633 59,124 Depreciation and amortisation 59,010 60,828 59,010 60,828 Finance costs 8,258 8,063 8,258 8,063 Write-down and impairment of assets 6,849 2,115 6,849 2,115 Other 3,651 2,840 3,651 2,840 Total operating expenses 0 0 9,130 94 227,365 222,251 236,495 222,345 Notes: The net costs include intra - government costs that would be eliminated in calculating the actual Budget outcome. ANSTO Annual Report 2008-2009  62 FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements AfoUSrT tRhALeIA yNeNaUCr LeEAnRdSeCdIE N3C0E AJNuDnTEeC H2N0O0L9OGY ORGANISATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Consolidated Parent 2009 2008 2009 2008 Notes $'000 $'000 $'000 $'000 5 Income 5A. Revenues from Government CAC Act payments from DIISR 173,115 153,314 173,115 153,314 5B. Goods and services Radioisotope sales 21,367 20,673 21,367 20,673 Services and contract research 15,905 11,724 15,153 11,163 Silicon irradiation 1,271 387 1,271 387 CSIRO site support 1,025 1,169 1,025 1,169 Training courses 152 163 156 163 Land management 3,044 3,923 3,129 3,923 Australian Synchrotron Research Project 1,030 1,107 1,030 1,107 AINSE interactions 873 1,346 873 1,346 Total sales of goods and services 44,667 40,492 44,004 39,931 5C. Grants 1,916 3,840 1,906 3,645 5D. Interest 8,449 8,861 9,167 8,867 5E. Net gain from sale of assets Infrastructure, plant and equipment: Revenue from sale of assets 1,248 977 1,248 977 Net book value of assets sold (894) (657) (894) (657) Net gain from disposal of infrastructure, plant and equipment 354 320 354 320 5F. Net foreign exchange gains - non speculative 463 10 434 10 5G. Other income: Other 188 110 188 110 Total other income 188 110 188 110 Total operating revenue from independent sources 56,037 53,633 56,053 52,883 Total revenues from ordinary activities 229,152 206,947 229,168 206,197 5H. Sales of goods and services Goods 21,367 20,673 21,367 20,673 Services 23,300 19,819 22,637 19,258 Total sales of goods and services 5B 44,667 40,492 44,004 39,931 Provision of goods to: External entities 21,367 20,673 21,367 20,673 Total sales of goods 21,367 20,673 21,367 20,673 Rendering of services to: Related entities 1,158 - 1,158 2,522 External entities 22,142 19,819 21,479 16,736 Total rendering of services 23,300 19,819 22,637 19,258 63  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION fNoOTrE SthTOeA NyDeFOaRrM IeNGnPdAReTdO F3T0HE JFINuAnNCeIA L2S0TA0T9EMENTS FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 6 Expenses Notes $'000 $'000 $'000 $'000 The breakdown of operating expenses is: 6A. Employee expenses: Salaries 64,787 65,025 65,507 64,866 Superannuation 10,845 11,749 10,845 11,751 Annual leave 5,888 6,421 5,888 6,421 Long service leave 2,105 2,783 2,105 2,783 Separation and redundancy 2,749 3,554 2,749 3,554 Total employee expenses 86,374 89,532 87,094 89,375 6B. Supplier expenses: Goods from related entities - - - - Goods from external entities 29,755 19,323 29,694 19,353 Services from related entities 16,882 12,342 16,882 13,266 Workers compensation premiums 1,027 431 1,017 431 Services from external entities 26,671 30,003 23,725 25,952 Operating lease rentals 311 122 315 122 Total supplier expenses 74,646 62,221 71,633 59,124 6C. Depreciation and amortisation Depreciation of property, plant and equipment (a) 8B 58,009 60,242 57,934 60,237 Amortisation of intangible assets - licence 8D 3 3 3 3 Amortisation of intangible assets - software 8D 1,073 588 1,073 588 Total depreciation and amortisation 59,085 60,833 59,010 60,828 6D. Writedown and impairment of assets Financial assets: Provision for doubtful debts (no longer required) 2 (48) 2 (48) Receivables for goods and services - 40 - 40 Foreign exchange (gain)/ loss - non speculative -realised 528 33 508 31 -unrealised (121) 29 (121) 29 Writedown of investment in subsidiaries - - 5,786 - Non financial assets: Materials - Write off obsolete stock - 1,543 - 1,543 Loss from sale of assets 339 143 339 143 Fixed Assets Revaluation Writedown/Impairment 106 - - Nuclear material stock devaluation 335 377 335 377 Total writedown of assets 1,189 2,117 6,849 2,115 6E. Grants 3,651 2,840 3,651 2,840 6F. Finance costs Unwinding of discount on Decommissioning Costs 8,072 7,887 8,072 7,887 Interest 186 176 186 176 8,258 8,063 8,258 8,063 Total operating expenses 233,203 225,606 236,495 222,345 (a) Depreciation of property, plant and equipment: The aggregate amounts of depreciation expensed during the reporting period for each depreciable class of property, plant and equipment are as follows: Buildings on freehold land 6,899 6,928 6,899 6,928 Plant and equipment 21,012 23,587 20,937 23,582 Infrastructure 2,488 2,454 2,488 2,454 National and major facilities 27,610 27,273 27,610 27,273 Total allocated 58,009 60,242 57,934 60,237 ANSTO Annual Report 2008-2009  64 FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NfoOTrE tShTeO AyNeDaFrO ReMnINdGePdA R3T0O FJTuHnE eFI N2A0NC0I9AL STATEMENTS FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 $'000 $'000 $'000 $'000 7 Financial assets 7A. Cash Cash at bank for operating needs 3,752 9,302 3,265 3,852 Total cash 3,752 9,302 3,265 3,852 7B. Receivables Goods and services (a) 6,193 5,554 6,338 5,768 Less provision for doubtful debts (b) 36 34 36 34 6,157 5,520 6,302 5,734 Interest accrued 1,364 1,413 1,985 1,413 Other 1,095 2,150 1,115 2,155 Loans to related parties - - 5,977 4,568 GST receivable 941 761 797 711 Total receivables (net) 9,557 9,844 16,176 14,581 (a) Goods and services (trade debtors) Age analysis of trade debtors Current 3,698 3,597 3,781 3,844 Overdue: Less than 30 days 1,678 1,304 1,749 1,304 30 to 60 days; and 623 211 617 211 60 to 90 days 46 90 43 57 More than 90 days 148 352 148 352 6,193 5,554 6,338 5,768 (b) The provision for doubtful debts represents debts aged more than 90 days (2008: aged more than 90 days). 7C. Investments Bank bills 88,000 83,000 88,000 83,000 Treasury Bonds 39,979 39,880 39,979 39,880 Term deposit 9,682 - 9,000 - Investment in Australian Synchrotron 5,000 5,000 5,000 5,000 Investment in PETNET Australia Pty Limited - - 5,000 5,000 Total investments 142,661 127,880 146,979 132,880 7D. Investment in subsidiaries The details of the subsidiaries of ANSTO are: Name Place of Incorporation % Owned Investment Loans/Convertible Notes 2009 2008 2009 2008 $ $ $ $ CeramiSphere Pty Limited Australia 100% 1 1 - 2,650,000 Australian Membrane Technologies Pty. Limited Australia 100% 1 1 - 700,000 PETNET Australia Pty Limited Australia 100% 5,000,000 5,000,000 5,000,000 303,178 ANSTO Inc. Delaware U.S.A. 100% - - 976,812 914,593 5,000,002 5,000,002 5,976,812 4,567,771 ANSTO Inc. was incorporated in Delaware, USA on 27 October 1999. At 30 June 2009: US$100 (2008: US$100) of capital has been invested in this wholly owned subsidiary. This investment has been written off in prior periods. In November 2004, the Board decided to utilise ANSTO Inc to promote the commercialisation of ANSTO Technology in the USA. The loan to ANSTO Inc. is denominated in US dollars, $US770,118 (2008: $US770,118). The Investment (including loans) in Australian Membrane Technology Pty. Ltd and CeramiSphere Pty. Ltd was considered impaired and hence fully provided as at 30 June 2009. 65  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements for the year ended 30 June 2009 FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 Notes $'000 $'000 $'000 $'000 8 Non-financial assets 8A. Land and buildings Land - at independent valuation - 30 June 2007 (fair value) (a), (b) 78,700 78,700 78,700 78,700 78,700 78,700 78,700 78,700 Buildings - at cost 21,054 24,634 21,054 24,634 Less accumulated depreciation 14,961 7,442 14,961 7,442 6,093 17,192 6,093 17,192 Buildings - at independent valuation - 30 June 2007 (fair value) (a), (b) 83,316 83,316 83,316 83,316 Less accumulated depreciation (a), (b) 10,464 5,600 10,464 5,600 72,852 77,716 72,852 77,716 Total buildings 78,945 94,908 78,945 94,908 Total land and buildings 157,645 173,608 157,645 173,608 8B. Infrastructure, plant, equipment and major facilities 8B(i). Plant and equipment Plant and equipment - at cost 101,789 115,239 101,328 114,777 Less accumulated depreciation 52,111 47,361 52,040 47,351 49,678 67,878 49,288 67,426 Plant and equipment - at independent valuation - 30 June 2007 (fair value) (a), (b) 62,697 66,681 62,697 66,681 Less accumulated depreciation (a), (b) 26,053 14,583 26,053 14,583 36,644 52,098 36,644 52,098 Plant and equipment - at Directors valuation - 30 June 2007 (fair value) (c) 1,029 1,029 1,029 1,029 Less accumulated depreciation 428 225 428 225 601 804 601 804 Plant and equipment under construction 41,539 23,565 32,034 23,561 Total plant and equipment 128,462 144,345 118,567 143,889 8B(ii). Infrastructure Electrical/site services facilities - at cost 1,411 629 1,411 629 Less accumulated depreciation 155 22 155 22 1,256 607 1,256 607 Electrical/site services facilities at independent valuation - 30 June 2007 (fair value) (a), (b) 28,014 28,014 28,014 28,014 Less accumulated depreciation (a), (b) 4,783 2,432 4,783 2,432 23,231 25,582 23,231 25,582 Total infrastructure 24,487 26,189 24,487 26,189 ANSTO Annual Report 2008-2009  66 FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NOTESfoTOr AtNhDeFO RyMeINaGrP AeRnT OdFeTHdE F3IN0A NJCIuALnSeTA T2EM0E0N9TS 8 Non-financial assets (continued) FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 Notes $'000 $'000 $'000 $'000 8B(iii). Major national and major research facilities Major national research facilities - at cost 830 249 830 249 Less accumulated depreciation 60 2 60 2 770 247 770 247 Major national research facilities at independent valuation - 30 June 2007 (fair value) (a), (b) 5,645 5,645 5,645 5,645 Less accumulated depreciation (a), (b) 2,699 1,368 2,699 1,368 2,946 4,277 2,946 4,277 Major research facilities at cost 73 50 73 50 Less accumulated depreciation 16 6 16 6 57 44 57 44 Major research facilities at independent valuation - 30 June 2007 (fair value) (a), (b) 6,257 6,257 6,257 6,257 Less accumulated depreciation (a), (b) 1,388 696 1,388 696 4,869 5,561 4,869 5,561 OPAL nuclear research reactor at cost 594 479,040 594 479,040 Less accumulated depreciation 7 27,161 7 27,161 587 451,879 587 451,879 OPAL nuclear research reactor at independent valuation - 30 June 2009 (fair value) (d) 450,121 - 450,121 - Less accumulated depreciation - - - - 450,121 - 450,121 - Total major national and major research facilities 459,350 462,008 459,350 462,008 Total infrastructure, plant, equipment and major facilities 612,299 632,542 602,404 632,086 Total land, buildings, infrastructure, plant, equipment and major facilities 769,944 806,150 760,049 805,694 67  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Notes to and forming part of the Financial Statements for the year ended 30 June 2009 Movement summary 2008-2009 for all consolidated assets irrespective of valuation basis (excluding intangibles) Land Buildings Total Land Infrastructure, Total and Buildings plant, equipment national and major facilities $'000 $'000 $'000 $'000 $'000 Gross value as at 1 July 2008 78,700 107,951 186,651 726,401 913,052 Additions - new assets - 695 695 41,611 42,306 Net revaluation increment - - - 48,332 48,332 Decommissioning Cost - - - (65,919) (65,919) Transfers/reclassifications - (4,276) (4,276) 3,004 (1,272) Disposals - - - (2,320) (2,320) Gross value as at 30 June 2009 78,700 104,370 183,070 751,108 934,178 Accumulated depreciation/ amortisation 1 July 2008 - 13,043 13,043 93,859 106,902 Depreciation/amortisation - 6,899 6,899 51,110 58,009 Transfers/reclassifications 5,483 5,483 (5,495) (12) Adjustment for disposals - - - (664) (664) Accumulated depreciation/ amortisation 30 June 2009 - 25,425 25,425 138,810 164,235 Net book value as at 30 June 2009 78,700 78,945 157,645 612,299 769,944 Movement summary 2007-2008 for all consolidated assets irrespective of valuation basis (excluding intangibles) Land Buildings Total Land Infrastructure, Total and Buildings plant, equipment national and major facilities $'000 $'000 $'000 $'000 $'000 Gross value as at 1 July 2007 78,700 105,403 184,103 745,062 929,165 Additions - new assets - 1,858 1,858 31,690 33,548 Recoverable Amount write downs - Net revaluation decrement - - - (517) (517) Transfers/reclassifications - 690 690 (48,680) (47,990) Disposals - - - (1,154) (1,154) Gross value as at 30 June 2008 78,700 107,951 186,651 726,401 913,052 Accumulated depreciation/ amortisation 1 July 2007 - 5,991 5,991 40,911 46,902 Depreciation/amortisation - 7,052 7,052 53,190 60,242 Recoverable Amount write downs - - Net revaluation decrement - - Adjustment for disposals - - - (242) (242) Accumulated depreciation/ amortisation 30 June 2008 - 13,043 13,043 93,859 106,902 Net book value as at 30 June 2008 78,700 94,908 173,608 632,542 806,150 Note: (a) In 2006-2007, an independent valuation of land, buildings, plant & equipment and infrastructure was performed by Mr. Frank Andreatta and Mr. Simon B O'Leary (registered valuer Nos. 3775 and 1128 respectively) of the Australian Valuation Office. The valuation performed was for all assets owned at February 2007. (b) In accordance with the requirements of Schedule 1 of the Commonwealth Authorities and Companies Act 1997 (Financial Statements 2008-2009) Orders, all revalued assets are shown on a gross basis: asset values are at fair value and accumulated depreciation has been written back. The resulting adjustment has been transferred directly to the asset revaluation reserve and/or Income Statement if the reserve is insufficient. (c) The Board resolved to value these assets as of 30 June 2007 at Directors Valuation. (d) OPAL was commissioned in April 2007 and has been revalued as at 30 June 2009 by Mr. Simon B O'Leary (registered valuer No. 1128) of the Australian Valuation Office using asset lists as at 31 May 2009. ANSTO Annual Report 2008-2009  68 FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NfoOTrE StThOeA NyDeFOaRrM IeNGnPdAReTdO F3TH0E FJINuAnNCeIA L2S0TA0TE9MENTS FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 $'000 $'000 $'000 $'000 8C. Inventories Raw materials and stores-not held for resale Stores - at cost 1,855 1,693 1,855 1,693 Cobalt-60 sources - at net realisable value 279 318 279 318 Reactor fuel and heavy water - at average purchase price 5,765 4,963 5,765 4,963 Nuclear materials - at net realisable value 221 233 221 233 Provision for stock diminution (86) (342) (86) (342) 8,034 6,865 8,034 6,865 Work in progress - at cost 477 639 477 639 Finished goods - at cost 200 197 200 197 Total inventories 8,711 7,701 8,711 7,701 8D. Intangibles Licences at deemed cost 1,009 1,009 1,009 1,009 Less accumulated amortisation 1,009 1,007 1,009 1,007 - 2 - 2 Software at cost 12,430 9,671 12,430 9,671 Less accumulated amortisation 9,232 8,507 9,232 8,507 3,198 1,164 3,198 1,164 Software at deemed cost 2,348 2,348 2,348 2,348 Less accumulated amortisation 2,348 2,001 2,348 2,001 - 347 - 347 Software under construction 2,043 - 2,043 - Total intangibles 5,241 1,513 5,241 1,513 Movement summary 2008-2009 for all consolidated intangibles irrespective of valuation basis Licenses Software Total $'000 $'000 $'000 Gross value as at 1 July 2008 1,009 12,018 13,027 Additions - new assets 3,544 3,544 Transfer/Reclassification 1,272 1,272 Gross value as at 30 June 2009 1,009 16,834 17,843 Accumulated depreciation/ amortisation 1 July 2008 1,006 10,508 11,514 Depreciation/amortisation 3 1,073 1,076 Transfer/Reclassification 12 12 Accumulated depreciation/ amortisation 30 June 2009 1,009 11,593 12,602 Net book value as at 30 June 2009 - 5,241 5,241 8E. Other 318 - 4,086 3,634 4,404 3,634 Total non-financial assets 788,300 777,635 69  Australian Nuclear Science and Technology Organisation AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements for the year ended 30 June 2009 8D. Intangibles (continued) Movement summary 2008-2009 for all consolidated intangibles irrespective of valuation basis Licenses Software Total $'000 $'000 $'000 Gross value as at 1 July 2008 1,009 12,018 13,027 Additions - new assets 3,544 3,544 Transfer/Reclassification 1,272 1,272 Gross value as at 30 June 2009 1,009 16,834 17,843 Accumulated depreciation/ amortisation 1 July 2008 1,006 10,508 11,514 Depreciation/amortisation 3 1,073 1,076 Transfer/Reclassification 12 12 Accumulated depreciation/ amortisation 30 June 2009 1,009 11,593 12,602 Net book value as at 30 June 2009 - 5,241 5,241 Movement summary 2007-2008 for all consolidated intangibles irrespective of valuation basis Licenses Software Total $'000 $'000 $'000 Gross value as at 1 July 2007 1,009 10,690 11,699 Additions - new assets - 1,328 1,328 Gross value as at 30 June 2008 1,009 12,018 13,027 Accumulated depreciation/ amortisation 1 July 2007 1,003 9,920 10,923 Depreciation/amortisation 3 588 591 Accumulated depreciation/ amortisation 30 June 2008 1,006 10,508 11,514 Net book value as at 30 June 2008 3 1,510 1,513 FINANCIAL YEAR Consolidated Parent 2009 2008 2009 - 2008 8E. Other $'000 $'000 $'000 $'000 Deferred tax asset 318 178 - - Prepayments 4,086 1,731 3,634 1,328 4,404 1,909 3,634 1,328 Total non-financial assets 788,300 817,273 777,635 816,236 ANSTO Annual Report 2008-2009  70 FINANCIAL STATEMENTS 2008-2009 NAUoSTtReAsL ItAoN NaUnCdLE AfoR rSmCIEiNnCgE ApNaDrTtE CoHfN tOhLeOG FYiOnRaGnANcIiSaAlT ISONtatements fNoOrT EtShTeO AyNeDaFrO ReMnINdGePdA R3T0O FJTuHnEeFI N2A0N0CI9AL STATEMENTS FINANCIAL YEAR Consolidated Parent 9 Liabilities 2009 2008 2009 2008 $'000 $'000 $'000 $'000 9A. Interest bearing liabilities Other - (a) 3,308 3,116 3,308 3,116 Total interest bearing liabilities 3,308 3,116 3,308 3,116 Provision and payables 9B. Employees Accrued salaries and wages 1,609 909 1,603 909 Annual leave 8,666 9,244 8,645 9,244 Long service leave 14,547 15,623 14,547 15,623 Aggregate employee entitlement liability 24,822 25,776 24,795 25,776 9C Decommissioning Cost Decommissioning Cost 119,374 181,757 119,374 181,757 119,374 181,757 119,374 181,757 9D Other Waste management cost (b) 1,605 1,605 1,605 1,605 Other claims (c) 402 2,966 402 2,966 2,007 4,571 2,007 4,571 9E Suppliers Trade creditors 8,263 9,134 8,150 8,933 8,263 9,134 8,150 8,933 9F Grants Non-profit entities 575 128 575 128 575 128 575 128 9G Other Revenue received in advance 1,171 1,194 1,171 1,194 1,171 1,194 1,171 1,194 Total provisions and payables 156,212 222,560 156,072 222,359 Total liabilities 159,520 225,676 159,380 225,475 Notes: (a) Relates to prepaid revenue under a lease of property. (b) A specific appropriation to cover costs associated with the movement of low level waste to a repository yet to be established. (c) Provision includes cost to cover for redundancy due to restructuring and incentive payment. 9H Provision movement reconciliation Provision for Provision for Provision for Decommissioning Waste Management Other Claims Costs Costs $'000 $'000 $'000 Carrying amount 1 July 2008 181,757 1,605 2,966 Amounts used (4,536) - (2,564) Change in assumptions (65,919) - - Unwinding discount 8,072 - - Closing balance 30 June 2009 119,374 1,605 402 71  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements AUfSoTrR AtLhIAeN yNeUaCrL EeAnRdSeCdIE N3C0E AJNuDnTeE C2H0N0O9LOGY ORGANISATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS y FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 $'000 $'000 $'000 $'000 10 Equity Contributed equity Replacement research reactor equity injections Balance 1 July 385,836 385,836 385,836 385,836 Balance 30 June 385,836 385,836 385,836 385,836 Other equity injections Balance 1 July 60,420 28,020 60,420 28,020 Equity injections from Government - Other 1,600 32,400 1,600 32,400 Balance 30 June 62,020 60,420 62,020 60,420 Total contributed equity 447,856 446,256 447,856 446,256 Reserves, including movements Asset revaluation reserve Balance 1 July 229,248 229,765 229,239 229,765 Revaluation adjustment 48,463 (517) 48,328 (526) Balance 30 June 277,711 229,248 277,567 229,239 Fuel elements reserve Balance 1 July - 7,700 - 7,700 Transferred to retained surpluses - (7,700) - (7,700) Balance 30 June - (a) - - - - Instrumentation reserve Balance 1 July - 6,200 - 6,200 Transferred to accumulated surpluses - (6,200) - (6,200) Balance 30 June - (b) - - - - OPAL depreciation reserve Balance 1 July 35,258 8,000 35,258 8,000 Transferred (to)/from retained surpluses (c) (26,197) 27,258 (26,197) 27,258 Balance 30 June 9,061 35,258 9,061 35,258 Reactor licensing reserve Balance 1 July 1,500 1,500 1,500 1,500 Transferred to retained surpluses - (d) (1,500) - (1,500) - Balance 30 June - 1,500 - 1,500 Regional security of radioactive reserve Balance 1 July 757 1,600 757 1,600 Transferred (to) retained surpluses (e) (128) (843) (128) (843) Balance 30 June 629 757 629 757 Nuclear & radiological security reserve Balance 1 July 360 260 360 260 Transferred from retained surpluses (f) 179 100 179 100 Balance 30 June 539 360 539 360 ANSTO Annual Report 2008-2009  72 FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements AUSTfRoArL IAthNeN UyCeLaEAr ReSnCdIEeNdC E3AND TECHNOLOGY ORGANISATIONNOTES TO AND FORMING PART OF0T JHEuFnINeA 2N0CI0A9L STATEMENTS y FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 $'000 $'000 $'000 $'000 Low dose nuclear waste repository reserve Balance 1 July 3,032 - 3,032 - Transferred from retained surpluses (g) - 3,032 - 3,032 Balance 30 June 3,032 3,032 3,032 3,032 Foreign currency reserve Balance 1 July (22) - - - Transferred from retained surpluses 19 (22) - - Balance 30 June (3) (22) - - Other reserve Balance 1 July - - - - Transferred from retained surpluses 150 - - - Balance 30 June 150 - - - Total reserves 291,119 270,133 290,828 270,146 Retained surpluses Retained surpluses 1 July 22,234 56,465 25,672 57,467 Transfer from fuel element reserve (a) - 7,700 - 7,700 Transfer from instrumentation reserve (b) - 6,200 - 6,200 Transfer (to)/from OPAL depreciation reserve (c) 26,197 (27,258) 26,197 (27,258) Transfer from reactor licensing reserve (d) 1,500 - 1,500 - Transfer from regional security of radioactive reserve (e) 128 843 128 843 Transfer to nuclear & radiological security reserve (f) (179) (100) (179) (100) Transfer to low dose nuclear waste repository reserve (g) - (3,032) - (3,032) Transfer to other reserve (150) - - - (Deficit)/Surplus (3,955) (18,584) (7,327) (16,148) Retained surpluses 30 June 45,775 22,234 45,991 25,672 Total equity 784,750 738,623 784,675 742,074 (a) Fuel elements reserve This reserve was established to fund the purchase of core fuel and development cost for the first few years of the replacement research reactor operation. This reserve has now been fully utilised. (b) Instrumentation reserve In addition to the 1997 Government decision to fund the construction of a replacement research reactor at Lucas Heights, ANSTO has identified a planned future capital investment for the development of instrumentation associated with the replacement research reactor. This reserve has now been fully utilised. (c) OPAL depreciation reserve This reserve represents unused funding for OPAL depreciation. This was due to a delay in final commissioning of OPAL. (d) Reactor licensing reserve This reserve is to meet future licensing costs for decommissioning the HIFAR reactor and MOATA. This reserve has now been fully utilised. (e) Regional security of radioactive materials reserve This represents unused funding from prior years. This is due to delays in participation by some regional countries. (f) Nuclear and radiological security reserve This reserve relates to funding which will be utilised on a new project which is planned to run through to 2009-10. (g) Low dose nuclear waste repository reserve This reserve relates to funding for low level waste facility at ANSTO for its own use and use by other Commonwealth agencies. 73  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 AUNSToRAteLIsAN tNoU aCLnEdAR fSoCrImENiCnEgA NpDaTrEtC HoNfO tLhOeG YFOinRGaAnNcISiaATlI OSNtatements NOfToESr TtOhAeN yDeFOaRr MeINnGdPeAdRT 3O0F TJHuEnFeIN A2N0C0IA9L STATEMENTS 11 Cash flow reconciliation FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 $'000 $'000 $'000 $'000 Reconciliation of Operating Loss to Net Cash from Operating Activities: Operating surplus / (loss) (4,051) (18,659) (7,327) (16,148) Non-cash items Depreciation/amortisation 59,085 60,833 59,010 60,828 Net writedown of Investment - - 5,786 - Net gain from sale of assets (354) (320) (354) (320) Write off obsolete stock 1,543 1,543 Nuclear materials (revaluation) devaluation 335 (377) 335 (377) Unrealised foreign exchange variances (121) - (121) - Net loss from sale of assets 458 143 339 143 Unwinding of Discount - Decommissioning Costs 8,072 7,888 8,072 7,888 Changes in assets and liabilities (Increase)/Decrease in receivables (637) 2,061 (568) 1,814 (Increase)/Decrease in other receivables 904 (282) (539) (54) (Increase) /Decrease in GST receivables (180) (53) (86) (8) (Increase) in accrued interest (937) (1,355) 64 (1,355) (Increase)/Decrease in prepayments (2,355) 294 (2,306) 697 (Increase) in inventories (675) (2,859) (675) (2,859) Increase/(Decrease) in creditors (871) 1,308 (783) 1,949 Increase in employee entitlements (954) 1,123 (981) 1,123 Increase/(Decrease) in revenue received in advance 424 (1,187) 424 (1,187) (Decrease) in non employee provisions (7,100) (46) (7,100) (46) Increase in interest bearing liabilities 192 178 192 178 Net cash from operating activities 51,235 50,233 53,382 53,809 12 Government funding Revenue from Government 173,115 151,668 173,115 151,668 Government Equity injection 1,600 32,400 1,600 32,400 174,715 184,068 174,715 184,068 In 2009 ANSTO was not directly appropriated as it is a CAC Act body. Appropriations are made to the Department of Innovation, Industry, Science and Research (DIISR) which are then paid to ANSTO. ANSTO Annual Report 2008-2009  74 FINANCIAL STATEMENTS 2008-2009 AUNSToRtAeLIsAN tNoU CaLnEdAR fSoCrIEmNCiEnAgN DpTaErCtH oNOf LtOhGeY OFRiGnAaNnIScATiaIOlN Statements NOfToErS TthOeAN yDeFOaRrM eINnGdPeARdT O3F0T HJEuFnINeA N2C0IA0L9STATEMENTS 13 Board membership The members of the Board during the financial year and to the date of the report on the statements were: Term Term Member Appointed Concluded Concludes T Pretty (a) 26 September 2007 25 September 2011 R Cameron 17 May 2008 29 February 2009 Z Switkowski 1 January 2006 31 December 2010 W Scales 1 July 2007 30 June 2010 P Greenfield 25 July 2007 24 July 2010 A Scott 26 September 2007 25 September 2011 D Copolov 1 May 2008 30 April 2012 J Hearn 1 May 2008 30 April 2012 E Smyth 12 December 2008 11 December 2012 A Paterson 1 March 2009 28 February 2014 C McLoughin 13 March 2009 12 March 2013 (a) T. Pretty resigned from the Board effective 16 November 2008. For the 2008-2009 financial year the aggregate remuneration paid to members of the Board is disclosed in Note 14. FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 $ $ $ $ 14 Remuneration of members of the Board Members' remuneration is determined by the Remuneration Tribunal and payment is made in accordance with Section 12 of the ANSTO Act 1987 (as amended). Included in operating expenses (Note 6) are: Aggregate amounts of superannuation payments in connection with the members of the Board 62,791 30,173 62,791 30,173 Other remuneration received, or due and receivable by members of the Board including the Chief Executive Officer. 683,033 612,373 683,033 612,373 745,824 642,546 745,824 642,546 The number of members included in these figures is shown below in each relevant remuneration band: Remuneration between Number Number Number Number $Nil and $14,999 2 2 2 2 $15,000 and $29,999 1 5 1 5 $30,000 and $44,999 5 3 5 3 $45,000 and $59,999 1 1 1 1 $105,000 and $119,999 1 - 1 - $345,000 and $359,999 (a) 1 - 1 - $375,000 and $389,999 - 1 - 1 11 12 11 12 (a) Includes incentives payment 75  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements AUfSoTRrA tLhIAeN NyUeCaLErA eRnSCdIEeNdC E3A0N DJTuEnCHeN O2L0O0G9Y ORGANISATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 15 Remuneration of executives $ $ $ $ Executive remuneration is determined by ANSTO, with the senior executive salaries approved by the Chief Executive Office (CEO). I n cluded in operating expenses (Note 6) is total remuneration r e ceived or due and receivable, by executives (excluding the CEO w h o is included in Note 14) who earn $130,000 or more in connection with the management of ANSTO. 3,773,202 3,637,274 3,351,963 3,144,570 The number of executives included in these figures is shown below in each relevant remuneration band: Remuneration between Number Number Number Number $130,000 and $144,999 (a) 2 - 1 - $145,000 and $159,999 1 1 1 1 $160,000 and $174,999 (b) 3 2 3 2 $175,000 and $189,999 - 2 - 2 $190,000 and $204,999 3 3 3 3 $205,000 and $219,999 3 2 3 1 $220,000 and $234,999 - 1 - 1 $235,000 and $249,999 1 3 1 3 $250,000 and $264,999 1 1 1 1 $265,000 and $279,999 3 1 2 1 $280,000 and $294,999 1 1 1 - 18 17 16 15 (a) Includes incentive payment (b) Includes termination payment 16 OPAL Nuclear Research Reactor The OPAL nuclear research reactor operated for approximately 70% of the calendar days in the financial year. This was equivalent to 84% of the days planned for operation during the year to 30 June 2009. Contract Performance Demonstration Tests were successfully completed during the year. Analysis of the results from those tests indicated that the OPAL’s performance complies with the performance levels specified in the Reactor Contract for both neutron beams and irradiation facilities. Utilisation of the reactor steadily increased throughout the year, with the main outputs being production of radioisotopes for radiopharmaceuticals, irradiation of silicon ingots for industrial customers, and irradiation of materials for research and commercial customers. ANSTO continues to work with INVAP on the resolution of a small number of defects, which have been prioritised. Progress on achieving acceptable disposition of all defects is being monitored and has been acceptable to date. An independent valuation, by AVO of OPAL and Neutron Beam Instruments was undertaken as at 30 June 2009. This was in accordance with the FMO's and Australian Accounting Standards. The outcome was a fair value of $450 million resulting in an increase of $48 million. 17 Insurances Insurance risks, including professional indemnity, general liability, industrial special risk for property used substantially for commercial purposes, directors and officers, and travel, are placed through Comcover, the Government's insurable risk managed fund. Workers compensation is insured through Comcare Australia and by virtue of statute under the Safety Rehabilitation and Compensation Act 1988. A Deed of Indemnity between the Commonwealth Government and ANSTO, under which the government has formally agreed to indemnify ANSTO and ANSTO Officers from any loss or liability arising from claims caused by ionising radiation, remains in place. FINANCIAL YEAR Consolidated Parent 2009 2008 2009 2008 $'000 $'000 $'000 $'000 18 Remuneration of auditors Remuneration to the Auditor-General for auditing the financial statements for the reporting period 158,500 145,000 140,000 130,000 No other services were provided by the Auditor-General during the reporting period. ANSTO Annual Report 2008-2009  76 FINANCIAL STATEMENTS 2008-2009 AUNSToRtAeLIsAN tNoU CaLnEdAR fSoCrIEmNCiEnAgN DpTaErCtH oNOf LtOhGeY OFRiGnAaNnIScATiaIOlN Statements NOfToErS TthOeAN yDeFOaRrM eINnGdPeARdT O3F0T HJEuFnINeA N2C0IA0L9STATEMENTS 19 Related party disclosures Several ANSTO Board Members were associated with entities with which ANSTO had commercial transactions during the year as part of their role in hospitals or universities. All such transactions were in accordance with ANSTO's normal commercial terms conditions. None of those transactions led to any conflict of interest. 20 Trust money Consolidated Parent 2009 2008 2009 2008 ANSTO receives monies from trade creditors as security $'000 $'000 $'000 $'000 deposits for contracts to be performed. These monies are held in a Trust Account and refunded to the respective trade creditors on satisfactory completion of the contract. Balance 1 July 20 19 20 19 Add: receipts - - - - Add: interest received - 1 - 1 Balance 30 June 20 20 20 20 77  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements for the year ended 30 June 2009 21 Financial Instruments (cont.) (a) Fair value of financial instruments Financial Notes Instruments Consolidated Parent Carrying Carrying Carrying Carrying Amount Fair Value Amount Fair Value Amount Fair Value Amount Fair Value 2009 2009 2008 2008 2009 2009 2008 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Financial assets Cash at bank 7A 3,752 3,752 9,302 9,302 3,265 3,265 3,852 3,852 Investment held to maturity 7C 137,661 137,661 122,880 122,880 136,979 136,979 122,880 122,880 Investment at fair value through Profit and Loss 7C 5,000 5,000 5,000 5,000 10,000 10,000 10,000 10,000 Receivables for goods and services 7B 7,098 7,098 6,281 6,281 7,099 7,099 6,445 6,445 Loans 7B - - - - 5,977 5,977 4,568 4,788 Interest accrued 7B 1,364 1,364 1,413 1,413 1,985 1,985 1,413 1,413 Other 7B 1,095 1,095 2,150 2,150 1,115 1,115 2,155 1,935 Total financial assets (recognised) 155,970 155,970 147,026 147,026 166,420 166,420 151,313 151,313 Total financial liabilities Trade creditors 9E 8,263 8,263 9,134 9,134 8,150 8,150 8,933 8,933 Grant received in advance 9F 575 575 128 128 575 575 128 128 Interest bearing liabilities 9A 3,308 3,308 3,116 3,116 3,308 3,308 3,116 3,116 Other 9G 1,171 1,171 1,194 1,194 1,171 1,171 1,194 1,194 Total financial liabilities (recognised) 13,317 13,317 13,572 13,572 13,204 13,204 13,371 13,371 (b) Net income from financial assets Financial Notes Instruments Consolidated Parent 2009 2008 2009 2008 $’000 $’000 $’000 $’000 Financial assets Cash at bank 7A 636 937 367 937 Investment held to maturity 7C 7,813 7,924 7,814 7,664 Loans 7B - - 986 266 Net Income from financial assets 8,449 8,861 9,167 8,867 (c) Net expenses from financial liabilities Financial liabilities Interest bearing liabilities 9A 186 176 186 176 Net expenses from financial liabilities 186 176 186 176 Financial assets The net fair values of cash, deposits on call and non-interest-bearing monetary financial assets are in accord with their carrying amounts. Loans receivable are carried at cost, which is above their net fair value, because it is intended to hold them to maturity. Financial liabilities The net fair values for trade creditors and revenue received in advance, all of which are short-term in nature, are in accord with their carrying amounts. (d) Credit risk exposures ANSTO is exposed to minimal credit risk as the majority of loans and receivables are cash or amounts owed by the Australian Tax Office in the form of a Goods and Services Tax refund. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This is equal to the total amount of trade and other receivables as per note 7B. ANSTO has assessed the risk of the default on payment and has provided for doubtful debts account as per note 7B(b). ANSTO manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, the Organisation has policies and procedures that guide employees to apply debt recovery techniques. The Organisation holds no collateral to mitigate against credit risk. ANSTO Annual Report 2008-2009  78 FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements for the year ended 30 June 2009 21 Financial Instruments (cont.) (e) Liquidity risk ANSTO financial liabilities are payables, finance leases and other interest bearing liabilities. The exposure to liquidity risk is based on the notion that the Organisation will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to Australian Government Appropriation funding and mechanism available to the Organisation and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. Consolidated Financial Notes Instruments Consolidated 2009 Carrying Amount On Demand 1 Year or Less 1 to 5 Years More than 5 years Total Contractual Cash Flows $’000 $’000 $’000 $’000 $’000 $’000 Financial liabilities Trade creditors 9E 8,263 8,263 8,263 Grant received in advance 9F 575 575 575 Interest bearing liabilities 9A 3,308 3,308 3,308 Other 9G 1,171 1,171 1,171 Total financial liabilities (recognised) 13,317 - 10,009 3,308 - 13,317 Consolidated 2008 Carrying Amount On Demand 1 Year or Less 1 to 5 Years More than 5 years Total Contractual Cash Flows $’000 $’000 $’000 $’000 $’000 $’000 Financial liabilities Trade creditors 9E 9,134 9,134 9,134 Grant received in advance 9F 128 128 128 Interest bearing liabilities 9A 3,116 3,116 3,116 Other 9G 1,194 1,194 1,194 Total financial liabilities (recognised) 13,572 - 10,456 3,116 - 13,572 Parent Financial Notes Instruments Parent 2009 Carrying Amount On Demand 1 Year or Less 1 to 5 Years More than 5 years Total Contractual Cash Flows $’000 $’000 $’000 $’000 $’000 $’000 Financial liabilities Trade creditors 9E 8,150 8,150 8,150 Grant received in advance 9F 575 575 575 Interest bearing liabilities 9A 3,308 3,308 3,308 Other 9G 1,171 1,171 1,171 Total financial liabilities (recognised) 13,204 - 9,896 3,308 - 13,204 Parent 2008 Carrying Amount On Demand 1 Year or Less 1 to 5 Years More than 5 years Total Contractual Cash Flows $’000 $’000 $’000 $’000 $’000 $’000 Financial liabilities Trade creditors 9E 9,134 9,134 9,134 Grant received in advance 9F 128 128 128 Interest bearing liabilities 9A 3,116 3,116 3,116 Other 9G 1,194 1,194 1,194 Total financial liabilities (recognised) 13,572 - 10,456 3,116 - 13,572 79  Australian Nuclear Science and Technology Organisation FINANCIAL STATEMENTS 2008-2009 Notes to and forming part of the Financial Statements for the year ended 30 June 2009 21 Financial Instruments (cont.) (f) Market risk - consolidated (i) Interest rate risk This refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The impact only relates to assets and not profit and loss or equity. Consolidated Risk variable Change in variable Effect on Effect on 2009 2008 0.75% -0.75% -0.25% -0.25% Profit or Equity Profit or Equity loss loss 2009 2009 2008 2008 $’000 $’000 $’000 $’000 Investment held to maturity 137,661 127,880 Interest 0.75% 0.25% 1,032 1,032 208 208 Interest -0.75% -0.25% (1,032) (1,032) (208) (208) Interest rate sensitivity analysis has been calculated on a ‘reasonably possible’ change basis. A ‘reasonably possible’ change has been e stimated using both statistical and non-statistical analyses. The statistical analysis has been based on the cash rate for the past five years issued by the Reserve Bank of Australia (RBA) as the underlying dataset. This information is then revised and adjusted for reasonableness under the current economic circumstances. As a result of the analyses above, a standard rate of 75 basis points shock level was selected as a ‘reasonably possible’ change in market interest rate. 75 basis points is considered reasonable because it is reasonably possible that there will be greater volatility compared to that which has been experienced in recent years, however, not to the extent of the extraordinary volatility experienced in 2008-09. (ii) Foreign currency rate risk This refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency rates. ANSTO is exposed to foreign currency rate risk primarily from trade creditors. The impact only relates to assets and not profit and loss or equity. The method used to arrive at the possible risk of 12% was based on both statistical and non-statistical analyses. The statistical analysis has b een based on main currencies movement for the last five years. The two main currencies ANSTO has exposure to are USD and EURO currencies. This information is then revised and adjusted for reasonableness under the current economic circumstances. A standard rate of 12% is considered reasonable because it is reasonably possible that there will be greater volatility compared to that which has been experienced in recent years, however, not to the extent of the extraordinary volatility experienced in 2008-09. ANSTO Annual Report 2008-2009  80 81  Australian Nuclear Science and Technology Organisation Governance and performance Compliance The functions of the Board ANSTO is subject to the provisions of A Board established under Section 8 various Commonwealth Acts, Regulations of the Australian Nuclear Science and made under these various Acts and Technology Organisation Act 1987 governs Commonwealth Awards. ANSTO. The general functions of the The principal Act is the Australian Nuclear Board, as set out in Section 10 of the Science and Technology Organisation Act ANSTO Act, are to ensure the proper and 1987 (ANSTO Act). efficient performance of the functions of the organisation and to determine the The principal Award is the Australian policy of the organisation with respect to Nuclear Science and Technology any matter, having regard to the current Organisation (General) Award 1990. policies of the Commonwealth Amendments to governance parts Government. of the ANSTO Act In particular, it has responsibility for: There were no changes to the governance • approval of organisational strategy and part of the ANSTO Act during 2008-2009 the annual business plan and budget reporting period. • monitoring financial performance Nuclear liability • monitoring managerial performance The Minister executed a fresh Deed of • ensuring that the significant risks facing Indemnity on 27 August 2008 following the organisation have been identified, the expiry of the existing Deed on that day. and that appropriate control, monitoring The new Deed extends the indemnity for and reporting mechanisms are in place. a further ten-year period. The Indemnity commits the government to meeting any The Commonwealth Authorities and damages awarded against ANSTO, its Companies Act (CAC Act) requires the employees and its contractors for damage Board to comply with certain caused by ionising radiation whilst providing accountability and corporate governance comfort to the local community and to principles, including: ANSTO’s suppliers, who cannot be covered • the maintenance of an Audit Committee by ANSTO’s normal insurance arrangements and are not accustomed to being exposed • specific financial and reporting to risks of this nature. Any claim would provisions first attach to the general $50 million cover • disclosure of all Board members’ that ANSTO has with COMCOVER to the personal interests extent that it was insured under that policy, with the remainder covered by this • provision of indemnities and indemnity indemnity agreement. insurance in certain circumstances. 83  Australian Nuclear Science and Technology Organisation Governance and performance All CAC Act requirements are currently Each member brings complementary skills being met. and experience to the Board. Its members Processes are in place for performance during the 2008-2009 financial year had assessment of both the Board and its experience in areas that included industry, Audit Committee and individual members information and communication thereof. technology, mining, scientific research, medicine and the commercialisation of The Board has established an Audit research. Committee and a Remuneration Committee. All matters considered by The Board meets regularly in accordance those Committees are submitted to the with a formally approved timetable and Board for information and, where agenda. appropriate, ratification. Eight Board meetings were held during the 2008-2009 financial year. Details of the Board Charter number of Board meetings attended by ANSTO has an established Board Charter, each member during the period in which setting out the respective rights and each member held office during the responsibilities, functions and powers of financial year are shown below. Board members and ANSTO executives. It is made available internally on the ANSTO Board remuneration and allowances internet site. The remuneration and allowances of members of the Board, including the Chief Board membership Executive Officer, are determined by the During the 2008-2009 financial year, the Remuneration Tribunal. Board comprised eight non-executive Remuneration of Board members is members, drawn from the broader disclosed in the Financial Statements. community, who are not involved in the day-to-day running of the organisation, Disclosure of interests of Board and a Chief Executive Officer. Members The ANSTO Act provides that the Chief Sections 27F-27K of the CAC Act provides Executive Officer shall manage the affairs for the disclosure of material personal of the organisation, subject to the interests in a matter that is being directions of, and in accordance with, considered by the Board, and prohibits policies determined by the Board. Senior participation, deliberation and decision management attend Board meetings as making by any member on such matters. required to report on matters relevant to All these requirements were met during their individual areas of responsibility. the year. ANSTO Annual Report 2008-2009  84 Meetings – Board Member Eligible to attend Attended Dr Zygmunt Switkowski (Chair) 8 8 Professor David Copolov 8 8 Professor Paul Greenfield AO 8 6 Professor John Hearn 8 5 Ms Christine McLoughlin 2 2 Ms Erica Smyth 3 3 Mr William Scales AO 8 6 Professor Andrew M Scott 8 8 Mr Edward N Pretty 3 1 Dr Adrian Paterson 2 2 (Chief Executive Officer from 1 March 2009) Dr Ronald Cameron 5 5 (Acting Chief Executive Officer to 28 February 2009) Board member access to The Board reports that: independent professional advice • ANSTO’s mission and strategic The Board has established procedures directions are being actioned by which members, in the interests of • Actual performance is reported against their duties, may seek independent approved performance indicators professional advice at ANSTO’s expense. In brief, members must first seek • There have been no significant changes permission from the ANSTO Chairman. in ANSTO’s state of affairs or principal activities during the year Report of operations • ANSTO has continued to manage both Section 9, Schedule 1 of the CAC Act the risks and opportunities it faces. requires that the Organisation’s Annual Report include a report of operations. The The Board reports that, in the opinion of Commonwealth Authorities and Companies senior management and the Board, at the (Report of Operations) Orders 2005 set time of making this report, adequate cash out the requirements for such a report. resources are, and will continue to be, 85  Australian Nuclear Science and Technology Organisation Governance and performance Meetings – Audit Committee Member Eligible to attend Attended Mr William Scales AO (Chair) 5 4 Professor David Copolov 5 5 Professor Paul Greenfield AO 5 4 Professor John Hearn 5 3 Ms Christine McLoughlin 1 1 Professor Andrew M Scott 5 5 Ms Erica Smyth 2 2 Mr Warren Wilton (External Member) 5 5 Mr Edward N Pretty 2 0 available to cover ANSTO’s requirement project to integrate all ANSTO's for working capital, to pay existing debts, management systems and deliver a and meet obligations during the next site wide database that would provide financial year. comprehensive auditing records and The Board states that a risk oversight and enhanced reporting of OHSE issues. management policy and supporting Audit Committee processes are in place and that adequate systems are in place to ensure compliance The Audit Committee, a formal sub- with this policy. committee of the Board, comprised during the year Mr W Scales AO, Professor P Health, safety and environmental Greenfield AO, Mr EN Pretty, Professor protection AM Scott, Professor D Copolov, Professor J Hearn, Ms E Smyth, Ms C McLoughlin The Board places primary importance on and a member external to ANSTO, Mr W the safe performance of all ANSTO Wilton. Mr Wilton is a Chartered activities. The monitoring of health, safety Accountant. The Chief Executive Officer, and environmental protection in general, the Chief Financial Officer, representatives and compliance with relevant legislation in of the Australian National Audit Office and particular, is designated as a responsibility the Chief Internal Auditor attended all of the whole Board. During 2008-2009, meetings or relevant parts of all meetings ANSTO management commenced a by invitation. ANSTO Annual Report 2008-2009  86 In accordance with good practice, all Five Audit Committee meetings were held Board members receive copies of Audit during the financial year. Details of the Committee papers and meeting minutes, number of Committee meetings held and and can attend Committee meetings as a attended during the period in which each right. This Committee was established by member held office during the financial the Board under a formal written Charter year are provided in the table above. to oversee the organisation’s risk The remuneration and allowances of management policies, practices and Board members who are members of the controls in relation to financial and Audit Committee are determined by the commercial activities, including the financial Remuneration Tribunal. reporting process, legislative and regulatory conformance, corporate governance and Remuneration Committee asset protection. Its Charter extends to the review of safety and environmental The Remuneration Committee, a formal systems and performance. Additionally in subcommittee of the Board, comprised accordance with the provisions of the CAC during the year Dr Z Switkowski (Chair) Act, the Committee is responsible for and Mr W Scales. The Chief Executive assisting Board members to fulfil their Officer, attends all meetings or relevant specific responsibilities under that Act. parts of all meetings by invitation. Othersattend meetings, as appropriate, at the The Committee has unlimited access to invitation of the Committee. both the internal and external auditors and to senior management. This Committee was established by theBoard under a formal written Charter to The Committee scrutinises the annual oversee: financial statements of ANSTO and considers the appropriateness of • The overall remuneration policy and accounting practices reflected therein. It strategy for the organisation receives a signed recommendation from • The performance and remuneration the Chief Executive Officer, and the Chief policies for the Chief Executive Officer Financial Officer, as to the veracity of the • The compliance of remuneration policies financial statements signed by the Board. and practices with statutory and regulatory requirements. Meetings – Remuneration Committee Member Eligible to attend Attended Dr Ziggy Switkowski (Chair) 1 1 Mr William Scales AO 1 1 87  Australian Nuclear Science and Technology Organisation Governance and performance Technical Advisory Committee The remuneration and allowances of members of the TAC are determined by The Technical Advisory Committee, the Remuneration Tribunal. formally established in accordance with a Board decision, comprises four members, Induction and continuing all of whom are external to ANSTO. professional development of Members are chosen on the basis of ANSTO executives internationally recognised scientific expertise and experience. The current Processes are in place for induction and members (as at 30 June 2009) of the ongoing education to inform executives Committee are Emeritus Professor Peter of their responsibilities and rights. New Robinson, Professor William Stirling, executives have access to appropriate Dr David Macfarlane and Professor induction documents and processes Jonathan Overpeck. (including those relating to safety and security) and to ANSTO officers. This Committee operates under written terms of reference and was established Performance review for ANSTO by the ANSTO Board to advise it on the executives quality and relevance of the portfolio of All executives have performance research projects being undertaken at objectives and targets and during the ANSTO 2008-2009 financial year performance Specifically the TAC provides an expert reviews were conducted of the Chief overview of research and addresses the Executive Officer and all other members following matters: of the Senior Management team. • To provide strategic advice to the Board Risk management concerning the research project portfolio The Board recognises that developing and • To provide the Board with an overview implementing ANSTO’s strategies requires of the quality of research within careful assessment and balancing of both ANSTO’s portfolio risk and opportunity. • To advise on any matters affecting the The Board is charged with the quality of research outputs responsibility of ensuring that appropriate policies are in place to cover identified The Committee was formally constituted risks, and management is required to in October 1996 and is required to meet at develop appropriate procedures to least once per year. The TAC did not meet manage these risks. during 2008-2009 as the role of this Committee is being reassessed. The Board endorses the risk management framework implemented by management. ANSTO Annual Report 2008-2009  88 As part of this framework, ANSTO applies to members of the Board, undertakes a systematic program of risk management and all staff. The Code sets assessments designed to identify, out the standards for ethical behaviour and evaluate and prioritise high and significant conduct and provides guidance by defining risks, utilising a methodology consistent the expected values and standards of with the Australian Risk Management workplace behaviour and performance. Standard AS/NZS 4360/2004. The Audit Committee and the Australian National Fraud control Audit Office (ANAO) receive summaries of The organisation has an established all risk assessment reports. ANSTO has an fraud control policy and plan, in line Enterprise Risk Management Register, with the Fraud Control Policy of the supported by individual operational level Commonwealth and guidelines set out risk registers which are regularly reviewed by the Attorney General’s Department, by the ANSTO Risk Management Criminal Justice Division. Committee comprising of Senior Executives of the Organisation. External audit ANSTO’s risk management policy provides Under Section 8 of the CAC Act the that it is the responsibility of the Commonwealth Auditor-General, through operational management of ANSTO to the ANAO, is the external auditor for develop and implement risk mitigation ANSTO. strategies. The overall risk framework is The ANAO, as a matter of policy, provides actively applied in ANSTO’s operations and only audit services to ANSTO. to new initiatives in particular. Project risk management remains a significant area of The Audit Committee reviews the ANAO focus in particular capital works projects. audit plan and reports and meets with ANAO representatives prior to In appropriate circumstances, insurance is recommending to the Board that the used as a method to transfer the financial annual financial statements be accepted impact of risk. and the Statement by Directors signed. The Board, supported by the Audit Internal audit Committee, oversees the development and operation of business continuity The ANSTO Internal Audit function has a planning and other emerging risk issues. dual reporting line to the Audit Committee and the Chief Executive Officer. Its Ethical standards responsibility is to provide an independent, ANSTO’s ethics policy is set out in a risk-based review function, as set out in a document entitled Code of Ethics – A formal Charter periodically reviewed by the Code for ANSTO Staff. The Code provides Audit Committee and endorsed by the a reference point for ethical behaviour and Board. The Audit Committee approves the 89  Australian Nuclear Science and Technology Organisation Governance and performance annual Internal Audit plan and receives 11 of the ANSTO Act, to implement and regular reports on progress against that plan. comply with the Bargaining Framework in relation to ANSTO employees, including Internal control the redeployment, relocation and The Board is responsible for ensuring that retrenchment provisions of the Bargaining appropriate policies and internal controls Framework. There were no other are in place and operating. ministerial directions to ANSTO made Compliance and review are monitored under either the ANSTO Act or the CAC through the Audit Committee and the Act during the reporting year. Internal Audit function. Public Research Agency Charter Service Charter The ANSTO Board and the Minister signed ANSTO’s Service Charter sets out a the charter above during the financial year. statement of what ANSTO does and the The charter recognises that the primary standards of product and service that functions of ANSTO are to conduct customers, stakeholders and the scientific research and development in community can expect from the relation to the applications of nuclear organisation. science and technology, to deliverspecialised advice, scientific services and Judicial decisions and reviews by products to government, universities, outside bodies other research organisations, international organisations and businesses, and to There were no judicial decisions or operate unique nuclear facilities. decisions of administrative tribunals that had a significant impact on the operations To provide clear guidance to ANSTO and of ANSTO during the reporting year. its individual researchers engaging in public debate the Minister and the Board There were no specific reports issued by of ANSTO agree to the following the Commonwealth Auditor-General, other principles. than that issued in relation to the 2008- 2009 financial statements. 1.Open communication and dissemination of the findings of research and factual There were no reports on the operations information. of ANSTO by a Parliamentary Committee or the Commonwealth Ombudsman 2.Encouragement of debate on issues of during the reporting year. public interest. Ministerial directions 3.Recognition of the role of ANSTO and its researchers in public communication In August 2008, the Minister for and debate. Innovation, Industry, Science and Research directed ANSTO under Section 4.The contestability of ideas. ANSTO Annual Report 2008-2009  90 5.Independence and integrity of public worked to complete development of a research institutions in their research complete set of plans. As of July 2009, activities. 9 of 11 plans have been fully developed 6.Government is accountable to and for the remaining 2, initial plans Parliament and the people, and remains have been developed and tested. A test responsible for policy formulation and schedule has been developed and is implementation. progressively being implemented. In light of recent developments and consistent Indemnities and insurance with advice from both Federal and State premiums for officers Government agencies, ANSTO has developed and tested a Pandemic ANSTO’s insurance coverage includes Business Continuity Plan. This has been professional indemnity and directors’ and integrated into the ANSTO Business officers’ liability. Certain sections of the Continuity and Disaster Recovery CAC Act contain prohibitions against Planning management framework. ANSTO giving indemnities and paying insurance premiums relating to liabilities arising from conduct involving a lack of good faith by officers. There have been no exceptions to these provisions and no claims were made against ANSTO in respect of such liability that required a claim on ANSTO’s insurer, Comcover. Business continuity planning Continuity of ANSTO business is a critical issue that has been considered and planned for by the Board, the Chief Executive Officer and senior management. Many services delivered by ANSTO are critical to the economic and social well-being of our society. A failure to deliver these could have significant consequences for those concerned. As a consequence, ANSTO regularly reviews all aspects of its business continuity management to ensure a constant state of readiness. In 2007-2008 ANSTO’s crisis management plan was updated. Throughout 2008-2009 ANSTO has 91  Australian Nuclear Science and Technology Organisation Appendices Appendix 1 Equality of Employment Opportunity Objectives 3.To confirm and communicate the vision that ANSTO’s employment activities 1.To ensure that Equal Employment reflect ANSTO’s values. Opportunity (EEO) principles and practices are actively incorporated into ANSTO actively seeks to implement EEO all people management practices. and diversity principles in its management practices. Human resource processes 2.To ensure that the structures and operate within the ISO 9001 framework. processes used to implement EEO adjust to changing employment needs. Equality of employment opportunity Number employed % of total staff Average salary 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 Female 289 250 28% 27% $63,330 $66,030 Male 739 676 72% 73% $74,940 $81,107 Number employed % of total staff Average salary 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 People with disabilities 19 11 1.80% 1% $68,514 $69,847 Aboriginal & Torres 13 9 1.30% 1% $63,877 $74,294 Straight Islander Non-English speaking 59 195 5.70% 21% $74,490 $81,233 background 93  Australian Nuclear Science and Technology Organisation Appendix 2 Functions and powers of the Organisation under the ANSTO Act This appendix describes the functions and powers of the organisation under the Australian Nuclear Science and Technology Organisation Act 1987 (ANSTO Act), which is ANSTO’s enabling legislation. In the text below, ‘Organisation’ means the Australian Nuclear Science and Technology Organisation. Section 5: Functions of the Organisation (1) The functions of the Organisation are: (a) to undertake research and development in relation to: (i) nuclear science and nuclear technology; and (ia) the application and use of nuclear science and nuclear technology; and (ii) the production and use of radioisotopes, and the use of isotopic techniques and nuclear radiation, for medicine, science, industry, commerce and agriculture; and (iii) such other matters as the Minister directs; and (b) to encourage and facilitate the application and use of the results of such research and development; and (ba) to condition, manage and store radioactive materials and radioactive waste, arising from: (i) the Organisation’s activities (including the production of radioactive materials for other persons); or (ii) the activities of companies in which the Organisation holds a controlling interest (including the production of radioactive materials for other persons); or (iii) the use by other persons of radioactive materials produced by the Organisation or such companies; or (iv) the activities of other persons who are specified in the regulations; and (bb) to condition, manage and store radioactive materials and radioactive waste generated, possessed or controlled by the Commonwealth or a Commonwealth entity; and (bc) to condition, manage and store radioactive materials and radioactive waste at the request of: (i) a law enforcement agency; or (ii) a Commonwealth, State or Territory agency responsible for the management of emergencies or disasters; ANSTO Annual Report 2008-2009  94 Appendix 2 Functions and powers of the Organisation under the ANSTO Act including, but not limited to, radioactive materials or radioactive waste involved in, or arising out of, a radiological incident or a radiological emergency; and (bd) to condition, manage and store radioactive waste that has been, or is to be, sent to Australia under contractual arrangements relating to the conditioning or reprocessing of ANSTO spent nuclear fuel; and (c) to produce, acquire, provide and sell goods, and to provide services, that are: (i) in connection with the production and use of radioisotopes, and the use of isotopic techniques and nuclear radiation, for medicine, science, industry, commerce and agriculture; or (ia) in connection with the conditioning, management and storage of radioactive materials or radioactive waste; or (ib) in connection with nuclear science and nuclear technology; or (ic) in connection with the application and use of nuclear science and nuclear technology; or (ii) otherwise in connection with matters related to its activities; and (d) to act as a means of liaison between Australia and other countries in matters related to its activities; and (e) to provide advice on aspects of: (i) nuclear science and nuclear technology; and (ii) the application and use of nuclear science and nuclear technology; and (iii) other matters related to its activities; and (ea) to make available to other persons, on a commercial basis, the knowledge, expertise, equipment, facilities, resources and property of the Organisation by: (i) providing training and management expertise; or (ii) selling or leasing equipment; or (iii) leasing land, buildings and facilities; or (iv) taking any other action that the Organisation thinks appropriate; and (f) to cooperate with appropriate authorities of the Commonwealth, the States and the Territories, and with other organisations and institutions in Australia or elsewhere, in matters related to its activities; and 95  Australian Nuclear Science and Technology Organisation Appendix 2 Functions and powers of the Organisation under the ANSTO Act (g) to publish scientific and technical reports, periodicals and papers on matters related to its activities; and (h) to collect and sell or distribute, as appropriate, information and advice on matters related to its activities; and (j) to arrange for training, and the establishment and award of scientific research studentships and fellowships, in matters related to its activities; and (k) to make grants in aid of research into matters related to its activities; and (m) to make arrangements with universities and other educational research institutions, professional bodies and other persons for the conduct of research or of other activities in matters related to its activities. (1A) A regulation made for the purposes of subparagraph (1)(ba)(iv) must not have the effect of authorising the premises on which the Lucas Heights Research Laboratories are situated to become a national nuclear waste repository. (1B) In subsection (1A): national nuclear waste repository means a site chosen by the Commonwealth, after the commencement of this subsection, for the storage of nuclear waste with a view to it never being moved to another site. (1C) Without limiting paragraph 5(1)(bb): (a) radioactive materials and radioactive waste generated by a Commonwealth contractor under a contract between the Commonwealth contractor and the Commonwealth or a Commonwealth entity are taken to be generated by the Commonwealth or the Commonwealth entity, as the case requires; and (b) radioactive materials and radioactive waste possessed or controlled by a Commonwealth contractor under a contract between the Commonwealth contractor and the Commonwealth or a Commonwealth entity are taken to be possessed or controlled by the Commonwealth or the Commonwealth entity, as the case requires. (2) The Organisation shall not undertake research or development into the design or production of nuclear weapons or other nuclear explosive devices. (3) In undertaking its functions, the Organisation is to have regard to: (a) the Commonwealth Government’s national science, technology and energy policy objectives; and (b) the Commonwealth Government’s commercialisation objectives for public research institutions. ANSTO Annual Report 2008-2009  96 Appendix 2 Functions and powers of the Organisation under the ANSTO Act (4) The Minister shall not give a direction under subparagraph (1)(a)(iii) to the Organisation to undertake research or development in relation to a matter unless the Minister is satisfied that research or development by the Organisation in relation to that matter would be an effective use of the staff of the Organisation, and would not duplicate unnecessarily any activity being carried on, or proposed to be carried on, by any other agency or authority of the Commonwealth. (5) The Organisation may perform its functions to the extent only that they are not in excess of the functions that may be conferred on it by virtue of any of the legislative powers of the Parliament, and, in particular, may perform its functions: (a) in so far as it is appropriate for those functions to be performed by the Organisation on behalf of the Government of the Commonwealth as the national Government of Australia; and (b) for purposes for which it is appropriate for the Parliament as the national Parliament of Australia to authorise the Organisation to perform functions; and (c) by way of expenditure of money that is available for the purposes of the Organisation in accordance with an appropriation made by the Parliament; and (d) in the course of, or in relation to, trade and commerce with other countries, among the States, between Territories or between a Territory and a State; and (e) for purposes related to external affairs; and (f) for purposes in or in relation to a Territory; and (g) for purposes related to the defence of the Commonwealth. Section 6: General powers of Organisation (1) Subject to this Act, the Organisation has power to do all things necessary or convenient to be done for or in connection with the performance of its functions and, in particular, has power: (a) to enter into contracts; (b) to acquire, hold and dispose of real or personal property; (c) to occupy, use and control any land or building owned or held under lease by the Commonwealth and made available for the purposes of the Organisation; (d) to erect buildings and structures and carry out works; (e) to form, or participate in the formation of, a company or partnership; (f) to appoint agents and attorneys, and to act as an agent for other persons; 97  Australian Nuclear Science and Technology Organisation Appendix 2 Functions and powers of the Organisation under the ANSTO Act (g) to engage persons to perform services for the Organisation; (h) to design, produce, construct and operate equipment and facilities; and (j) to do anything incidental to any of its powers. (2) The powers of the Organisation may be exercised within or outside Australia. (3) To avoid doubt, the Organisation has the power to construct buildings and facilities for the sole purpose of performing the function referred to in paragraph 5(1)(ea). ANSTO Annual Report 2008-2009  98 Appendix 3 Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act), section 516A Environmental Protection air and liquid emissions and in samples of air, surface- and ground-waters, sediment ANSTO is committed to operating in a and biota from the local environment. manner that protects the environment General environmental radiation is also and is consistent with Australian and monitored and local weather patterns international standards. Environmental reported. Many monitoring capabilities are awareness is promoted throughout the independently verified. organisation that strives for continual improvement in environmental Environmental monitoring in 2008-2009 performance. confirmed that ANSTO’s authorised releases of radioactive material to the air Environmental management system and sewer have minimal impact on the To provide assurance that ANSTO is environment, and that the modern OPAL maintaining sound environmental reactor has significantly reduced the protection practices, we maintain an contribution made by ANSTO’s research environmental management system reactor to the already tiny potential public (EMS) that is certified to the International dose from airborne emissions. Standard ISO 14001. This standard Air requires that environmental risks and legal requirements are understood and Since the levels of radioactivity released to managed, an appropriate measurement air are low, computer modelling is used to and review system is in operation, and estimate the potential radiation doses to that there is an organisational people at various distances from the site. commitment to continual improvement. The maximum public dose estimated for In addition all parts of our environmental ANSTO’s airborne emissions in 2008-2009 monitoring program operate within a was 0.00027 mSv. This corresponds to quality system certified to the ISO less than 0.03 per cent of the annual 9001:2000 standard for Quality public dose limit of 1.0 mSv, established Management Systems. by ARPANSA and continues the trend of decreased dose estimates over the Environmental performance previous ten years (see graph on Accurate measurements with following page). independent verification For our closest neighbours, ANSTO’s ANSTO's environmental monitoring activities added less than 0.002 per cent program includes measuring radioactivity to the 1.5 mSv dose that every Australian and some key non-radioactive materials in receives from natural background radiation each year. 99  Australian Nuclear Science and Technology Organisation Appendix 3 Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act), section 516A 0.00027 1999 2000 2001 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Maximum annual effective dose from LHSTC airborne discharges at the 1.6 km boundary of ANSTO’s buffer zone, 1999 to 2009 Liquid effluent discharges within Cronulla sewage treatment plant and is limits ultimately discharged to the ocean at Potter Point. In 2008 a radiological risk Effluent discharged from ANSTO into assessment carried out for marine biota in the sewer complied with all limits for the receiving environment confirmed that radioactive discharges, in accordance with there is negligible risk to marine life from the Trade Waste Agreement with Sydney ANSTO’s liquid effluent discharges. Water. Compliance with these limits ensures that water at the Cronulla sewage Good water quality treatment plant meets World Health ANSTO regularly monitors stormwater Organisation drinking water standards for leaving the site, as well as sampling the radioactivity. Concentration limits for non- nearby Woronora River. Results show that radioactive materials such as ammonia, concentrations of tritiated water in the zinc and total dissolved solids were also environment are decreasing since the met. Sydney Water conducts independent HIFAR reactor’s closure in January 2007, testing of liquid effluent discharges to and are well below the level considered sewer and the Trade Waste Agreement is safe for Australian drinking water. Gross periodically reviewed to provide assurance alpha and beta measurements were also that ANSTO’s discharges remain within below the levels required for authorised limits and pose no threat to the stormwater/surface waters, following the environment. NSW Protection of the Environment Effluent from the Sutherland Shire Operations Act 1997. In fact, most undergoes tertiary treatment at the measurements were below the stricter ANSTO Annual Report 2008-2009  100 Appendix 3 Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act), section 516A screening levels from the Australian framework that defines how business is Drinking Water Guidelines (ADWG). conducted to deliver outcomes to our ANSTO's stormwater does not contribute customers and stakeholders in a safe, to any public water supply, however consistent and environmentally referring to the ADWG provides a useful responsible manner. Specific local context for understanding our data. arrangements and objectives for Monitoring of groundwater at the Lucas protecting human health, safeguarding Heights site showed no detectable our operations and minimising our ANSTO-produced radionuclides apart environmental footprint derive from from very low levels of tritium. these overarching documents. Detailed reporting ANSTO activities that contribute to ESD include our research into significant The results and findings from our environmental issues such as dryland environmental monitoring program are salinity, water management, human available to the public in the annual impacts on climate variability and report series Environmental and Effluent purification of waste water. This research Monitoring at ANSTO Sites, available on enhances scientific knowledge and the ANSTO website. improves environmental outcomes. ANSTO’s active support of nuclear non- ANSTO also reports annually to the proliferation ideals and the development Department of Environment and Heritage of nuclear safeguards through its about any of its activities that fall under collaborative research with bodies such the National Environmental Protection as the International Atomic Energy Measures. Overall, ANSTO commits Agency and the Comprehensive Test Ban significant resources to effectively Treaty Organisation, also accords with monitor, manage and report on its ESD principles. environmental impacts and responsibilities Finally, ANSTO’s commitment to sound Ecologically sustainable environmental management and development (ESD) ecologically sustainable development means that special emphasis is placed on ANSTO’s commitment to environmental reducing the environmental footprint by protection and sustainability principles is minimising waste production and the embedded at the highest level. The consumption of resources such as paper, organisation has defined strategic electricity and water, and by recycling directions which inform its social, consumables. It also ensures that we economic and environmental core values. manage our past and current waste in a These priorities are integral to ANSTO’s manner that protects human health and Business Management System – the the environment, now and in the future. 101  Australian Nuclear Science and Technology Organisation Appendix 4 Occupational Health and Safety (Commonwealth Employment) Act 1991, section 74 Safety arrangements slight increase in the number of near miss events reported with 69.5 per cent of ANSTO is committed to ensuring a safe events reported offering an opportunity for and healthy environment for employees, improvement before an injury occurred. visitors, contractors and the external community. All ANSTO activities are ANSTO also works with its regulators to governed by a “safety first” philosophy improve OHS across site. In 2008-2009 that means work is planned and will only ANSTO informed Comcare of 19 notifiable be performed if it is judged to be safe. incidents. Five of these were serious injuries – one of which related to a Safety and environmental principles, sporting injury and 14 dangerous values and commitments are set out in occurrences. The increase over the the ANSTO Health, Safety and number of notifiable events recorded in Environment Policy which is supported 2007-08 is largely attributable to Comcare by a framework of documents that applying a stricter interpretation of the constitutes our safety management events requiring notification. system. Key elements of the safety system are: Australian Radiation Protection and • documented requirements and Nuclear Safety Regulations 1999, guidance, Statutory Rules 1999 No. 37 as amended. • formal review and approval of potentially hazardous work, Occupational Radiation Exposure • auditing and evaluation of safety Everyone is exposed to ionising radiation performance from natural sources. People may also be exposed to radiation from non-natural • communication of safety issues and sources, including nuclear medical performance to workers and the procedures for diagnosis and treatment of community. certain illnesses. Personal radiation Accidents and incidents exposure (“dose”) is measured in sieverts (Sv), however, typical annual exposures are An important part of ANSTO’s safety so small that they are usually expressed in management system is the capturing of units of one thousandth of a sievert, information on all safety-related events known as a millisievert (mSv). According including accidents and ‘near misses’. This to the most recent data from ARPANSA, ensures the proper investigation of all the average dose an Australian receives such events and the implementation of from natural background radiation (excluding safety improvements. It also gives us data medical sources) is 1.5 mSv per year. to drive improvements in ANSTO’s safety performance. One key indicator of safety Federal and State regulations require that performance is the percentage of near a member of the public should receive no miss events reported. 2008/09 saw a more than 1 mSv per year from radiation ANSTO Annual Report 2008-2009  102 Appendix 4 Occupational Health and Safety (Commonwealth Employment) Act 1991, section 74 sources other than background radiation exposures are not just less than the and medical procedures. The regulatory statutory dose limit(s), but are as far below limit for radiation workers is 20 mSv per them as we can reasonably achieve. To year, averaged over five years, with no this end ANSTO has imposed its own more than 50 mSv in any one year. This is annual dose constraint of 15 mSv to any derived from recommendations made by member of staff, visitor or contractor. the International Commission on Radiation The radiation exposure of ANSTO’s Protection (ICRP), who have specified workers who are routinely engaged in three basic principles for radiation working with ionising radiation, is protection, which are applied at ANSTO: monitored by our specialist dosimetry • All exposures to ionising radiation shall service, with records of all exposures have a positive net benefit maintained. Monitoring results for 2008- • All exposures shall be maintained As 2009 show that the radiation doses Low As Reasonably Achievable (ALARA), received by ANSTO workers remain accounting for social and economic significantly below regulatory limits. factors. Table 1 shows the maximum, average and • All exposures shall be less than the collective effective doses for the past five relevant statutory limit. years. Collective effective dose is the total cumulative dose to an exposed group, in The application of these principles, this case all ANSTO personnel registered requires us to ensure that our occupational with our radiation dosimetry service. Table 1: Effective dose 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Maximum effective dose mSv 10.2 10.2 9.4 8.9 8.6 Average effective dose mSv 0.8 0.8 0.6 0.6 0.6 Collective effective dose person-mSv 697 690 545 531 542 Table 2: Distribution of individual effective dose dose ranges (mSv) 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 0 to < 2 807 751 926 914 907 2 to < 5 66 61 41 36 37 5 to < 10 20 28 13 13 12 10 to < 15 1 1 0 0 0 > 15 0 1 0 0 0 103  Australian Nuclear Science and Technology Organisation Appendix 4 Occupational Health and Safety (Commonwealth Employment) Act 1991, section 74 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Table 2 shows the distribution of individual district-level Lucas Heights Emergency effective doses over the same period. The Evacuation Sub Plan supporting these graph in Figure 1 compares maximum and arrangements. In the event of an average effective doses. Regulations give emergency, ANSTO staff would give annual dose limits for radiation workers for technical assistance and practical support the whole body (effective dose), for the to emergency service organisations. skin (shallow dose) and for extremities ANSTO maintains a close working such as hands or feet. The dose limits are: relationship with emergency service • whole body 20 mSv, averaged over five organisations through the Local Liaison years Working Party. The working party includes • shallow (skin) 500 mSv ANSTO specialists and representatives of emergency service organisations, local • extremities 500 mSv. government, and support organisations, Emergency preparedness and including NSW Health. ARPANSA is anobserver. responses An ongoing program of emergency ANSTO and emergency services training and evacuation drills is in place for organisations jointly maintain a 24-hour all of site. Staff in each work area undergo emergency response capability to deal training in the local emergency response with incidents at Lucas Heights. The protocols and are familiarised with the Response Plan for Accidents and Incidents appropriate muster points. This training is describes how an emergency response supplemented with evacuation drills that are will be coordinated and identifies who is run with the respective Building Wardens. responsible for which actions. Each organisation has standing procedures ANSTO staff continued to run the detailing each individual response. NSW Radiological Awareness Program for local emergency services manage responses to emergency service organisations and emergencies with potential significant functional groups in cooperation with offsite radiological consequences at state- ARPANSA. Specific radiological training is level according to the Lucas Heights also provided to the NSW Fire Brigade Emergency Sub Plan. There is also a members as part of their HAZMAT training. ANSTO Annual Report 2008-2009  104 Appendix 5 Freedom of Information Act 1982, subsection 8(1) In compliance with Section 8 of the ANSTO state government Freedom of Information Act 1982 (FOI arrangements Act), the following is the annual statement on consultative arrangements, categories Given that ANSTO is located in New of documents maintained, and facilities South Wales, it liaises with a range of and procedures for access to documents NSW departments and authorities relating to ANSTO. Details of the functions responsible for safety, environmental of the organisation, membership of the planning and related matters. Board and decision-making powers of the Associated organisations Board and the Executive are provided elsewhere in the annual report. The Australian Institute of Nuclear Science and Engineering, an association of Arrangements for external ANSTO, the Institute of Geological and participation Nuclear Science (New Zealand) and 39 universities, arrange access by staff and Liaison groups students of Australasian universities to the A technical advisory committee advises major facilities at ANSTO. the ANSTO Board on the research projects being undertaken at ANSTO. Other arrangements Details of its role and composition can be Less formal arrangements exist for found on pages 88 of this annual report. promoting discussions, the exchange The Local Liaison Working Party (LLWP), of views and/or collaboration with established in 1967, comprises organisations outside the Commonwealth representatives from the NSW Police, administration. These organisations Ambulance, Fire Brigades, Rural Fire include local government authorities, Service, the NSW Department of universities, standards bodies, Environment and Conservation, the NSW professional societies, unions and staff Department of Health, the Australian associations, industrial groups and Federal Police, the Georges River District international nuclear agencies. Emergency Management Officer, the Categories of documents held State Emergency Management Committee, the State Emergency Service, Computer software packages, computer Sutherland Shire Council and ANSTO, as printouts, technical books and reports, and well as an observer from ARPANSA. The International Nuclear Information System LLWP is a communication forum for all documents are available for purchase. parties which play a role in emergency Single copies of the annual report, Nuclear preparedness and response at the Lucas Matters, strategic plans, ANSTO Heights Science and Technology Centre emergency plans, environmental (where ANSTO is located). monitoring reports, general information 105  Australian Nuclear Science and Technology Organisation Appendix 5 Freedom of Information Act 1982, subsection 8(1) literature, videos and DVDs (under loan Administration documents held include arrangements) are available on request. personnel records such as staff promotion Documents relating to decision-making files; ANSTO awards; organisation and processes include Cabinet documents establishment reports; compensation about matters in which ANSTO has an files; computer media with administrative interest; ministerial correspondence and instructions and information storage; staff directions; ANSTO Board agenda, lists and classifications; mailing lists; memoranda and decisions; deeds, visitor and contractor records; Freedom of legal contracts and formal agreements; Information requests; accounting records; minutes and submissions; employment, pay-roll, flexitime and overtime records; delegations, security, finance and tender and contract documents; building accounting handbooks and manuals. plans, specifications and instructions; General correspondence includes directives; orders; memoranda; bulletins; ministerial briefs; speeches; conference notices; and information. papers for national and international Other documents held include drawing meetings; parliamentary questions and office records such as plans, microfilm, answers; cables, telexes and facsimiles; drawings, maps and photographs. and general records files. Facilities for access Technical documents held include scientific and technical reports and By arrangement, FOI inquirers can peruse laboratory notes comprising patents and information in the Reception Centre at the inventions; computer media; plant and entrance to the Lucas Heights Science equipment operating manuals; and Technology Centre. FOI requests and maintenance, quality assurance and safety other arrangements for access to manuals; reactor operating authorisations, documents may be made by contacting records and log books; radioisotope quality the FOI Coordinator, ANSTO, Private Mail control procedures manuals; radioisotope Bag 1, Menai, NSW 2234, Australia (email: catalogues and price lists; engineering government.liaison@ansto.gov.au). service general records; nuclear material ANSTO also has a free enquiry service movement vouchers and accounting for members of the public requiring records; photographs; and radiographs. information about the Organisation and Health and safety documents include staff its research. This service is outlined in medical records; safety-related survey the Community Right to Know Charter records; film badge and radiological available at www.ansto.gov.au. records; accident reports; and emergency Interested parties are encouraged to response procedures. contact enquiries@ansto.gov.au for any information. ANSTO Annual Report 2008-2009  106 Appendix 5 Freedom of Information Act 1982, subsection 8(1) Information about ANSTO is available on the internet through the organisation’s homepage at www.ansto.gov.au. The ANSTO Senior Adviser, Government Liaison and General Manager, Government and Public Affairs, have been appointed as authorised officers under Section 23 of the FOI Act. 107  Australian Nuclear Science and Technology Organisation Appendix 6 Index of compliance with reporting guidelines Index of compliance with reporting guidelines under various Acts, Regulations and Orders applicable to ANSTO as a Commonwealth authority ANSTO Act 1987 (As amended) Functions and Powers 94 Commonwealth Authorities and Companies Orders (Financial statements for reporting periods ending on or after 30 June 2005) under the Commonwealth Authorities and Companies Act 1997 (As amended) Financial statements and reports 40 Commonwealth Authorities and Companies (Report of Operations) Orders 2005 under the Commonwealth Authorities and Companies Act 1997 (As amended) Certification of report of operations ii Enabling legislation 1, 83 Responsible minister 2 Board members Names, qualifications, experience and special responsibilities, meeting attendance 5-6, 84-85 Organisational structure and location of major activities and facilities 1, 3-4 Review of operations for year and future prospects 16-33, 85 Judicial decisions and reviews by outside bodies 90 Statement on governance 82-91 Effects of ministerial directions 90 Indemnities and insurance premiums for officers 91 Requirements under other guidelines and legislation Service charter 90 Ecologically sustainable development and environmental performance 99-101 Freedom of information 105-107 Occupational health and safety 102-104 Fraud control 89 Equality of employment opportunity 93 ANSTO Annual Report 2008-2009  108 Acronyms ADWG Australian Drinking Water Guidelines AEIFRS Australian Equivalents to International Financial Reporting Standards AFP Australian Federal Police AIMS Australian Institute of Marine Science AINSE Australian Institute of Nuclear Science and Engineering AIP Australian Institute of Physics AMT Australian Membrane Technologies ANAO Australian National Audit Office ANSN Asian Nuclear Safety Network ANSTO Australian Nuclear Science and Technology Organisation ANTARES Australian National Tandem for Applied Research AOFSRR Asia-Oceania Forum for Synchrotron Radiation Research ARI ANSTO Radiopharmaceuticals and Industrials ARPANSA Australian Radiation Protection and Nuclear Safety Agency ASIO Australian Security Intelligence Organisation ASNO Australian Safeguards and Non-Proliferation Office ASRP Australian Synchrotron Research Program ATLAS ANSTO Technologies, Leaders in Analytical Science AVO Australian Valuation Office CAC Act Commonwealth Authorities and Companies Act 1997 CcASH Cosmogenic climate Archives of the Southern Hemisphere COMET Commercialising Emerging Technologies CRC Cooperative Research Centre CRC-BID Cooperative Research Centre – Biomedical Imaging Development CSIRO Commonwealth Scientific and Industrial Research Organisation CSS Commonwealth Superannuation Scheme CT Computed Tomography DEST Department of Education Science and Training DSTO Defence Science and Technology Organisation EEO Equal Employment Opportunity EMS Environmental Management System ESD Ecologically Sustainable Development FMOs Finance Minister’s Orders FDG Fluorodeoxyglucose FMOs Finance Minister’s Orders FNCA Forum for Nuclear Cooperation in Asia 109  Australian Nuclear Science and Technology Organisation Acronyms FOI Freedom of Information GIF Generation IV International Forum HIFAR High Flux Australian Reactor HIP hot isostatic pressing IAEA International Atomic Energy Agency IFRS International Financial Reporting Standards ISO International Organisation for Standardisation IsoTrans Isotopic Tracers in Atmospheric Transport ISL International Science Linkages IYPE International Year of Planet Earth LLWP Local Liaison Working Party MDU Minerals Down Under mSv millisieverts NEA Nuclear Energy Agency NCRIS National Collaborative Research Infrastructure Strategy NMAC Nuclear Materials Accountancy and Control NMB Nanoparticulate Membrane Bioreactor NORM Naturally-occurring radioactive materials NRP National Research Priorities NUPP Nuclear and Particle Physics group OECD Organisation for Economic Cooperation and Development OPAL Open Pool Australian Light-water reactor OSMR NSW Office for Science and Medical Research PBR Peripheral-type Benzodiazepine Receptor PET Positron Emission Tomography PSS Public Sector Superannuation Scheme QFA Quadrennium Funding Agreement RCA Regional Cooperative Agreement RIP Resin in pulp RRI Radiopharmaceutical Research Institute SAR Safety Analysis Report SPECT Single Photon Emission Computed Tomography STAR Small Tandem for Applied Research Sv Sieverts UNESCO United Nations Educational, Scientific and Cultural Organisation ANSTO Annual Report 2008-2009  110 Index A main campus location, 1 Accelerator Science Centre, 14 management, 3–4 Access to Major Research Facilities mission, 1–2 Program (AMRFP), 1, 31 powers, 94–8 advice to government, 20 research infrastructure, 1 AINSE, 30 responsible Minister, 2 ANSTO see Australian Nuclear Science Service Charter, 90 and Technology Organisation (ANSTO) staff, 1, 8 ANSTO Minerals, 14, 30 strategic directions, 2 ANTARES accelerator, 27 tours, 28 ANZ Nuclear Medicine conference, 22 vision, 1 ARI, 29 Australian Nuclear Science and Technology ASEAN, inquiry into Australia's Organisation Act 1987 (ANSTO Act), 1, 83 relationship, 20 amendments to governance part, 83 audit Board established under, 83 external, 89 functions and powers under, 94–8 internal, 89–90 Australian Nuclear Science and Technology Audit Committee, 86–7, 89 Organisation (General) Award 1990, 83 meetings, 86 Australian Radiation Protection and Australian and New Zealand Forensic Nuclear Safety Agency (ARPANSA), 14, Science Society (ANZFSS), 19 17–18 Australian Membrane Technologies Pty Australian Synchrotron Research Program Ltd, 30 (ASRP), 32 Australian National Audit Office (ANAO), 89 B Australian National University, 24 Beckett, Michael, 3–4 Australian Nuclear Science and Technology Board Organisation (ANSTO) Charter, 84 Board members, 5–6 disclosure of interests, 84 businesses, 29–30 functions, 83–4 contact details, 117 independent professional advice, 85 executives, 88 meetings, 85 functions, 1, 94–8 members, 5–6, 84 111  Australian Nuclear Science and Technology Organisation Index remuneration and allowances, 84 Cubbin, Doug, 3–4 report of operations, 85–6 Bragg Institute, 7 D Brindle Laboratory, 22 Deed of Indemnity, 83 business continuity planning, 91 Defence Materials Technology Centre (DMTC), 24–5 C Department of Resources, Energy and Cambridge University, 22 Tourism (DRET), 17–18 Cameron, Dr Ron, 3–5, 10, 85 DIDO reactors, 17 cancer treatment, 22 Di Pietro, Dr Paul, 3–4 Carr, Senator Kim Dodson, Prof John, 3–4 responsible Minister, 2 Centre for Accelerator Science, 14 E CeramiSphere Pty Ltd, 30 Echidna, 11, 26 Chairman Edwards, Prof Lyndon, 3–4, 24 letter, ii environmental protection, 99–101 report, 7 Environmental Protection and Biodiversity Chief Executive Officer's report, 9–10 Conservation Act 1999, 99–101 climate change, 23–4 epilepsy research, 22 forecasts, 24 Equal Employment Opportunity, 93 mitigation, 8 ethical standards, 89 Cole, Stephanie, 3–4 executives Comcover, 91 induction and development, 88 Commonwealth Authorities and performance review, 88 Companies Act (CAC Act), 83–4, 87 external radiation services, 29–30 Commonwealth Authorities and Companies (Report of Operations) Orders F 2005, 85 Fittler, Margaret, 3–4 compliance fluorodeoxyglucose (FDG), 12–13 legislation, 83 Forum for Nuclear Cooperation in Asia reporting guidelines, 108 (FNCA), 17 contact details, 117 fraud control, 89 Copolov, Prof David, 5–6, 85, 86 freedom of information, 105–7 counter terrorism, 19 Freedom of Information Act 1982, 105–7 ANSTO Annual Report 2008-2009  112 Index G J Gamma Technology Research Irradiator Joint Convention on Spent Nuclear Fuel (GATRI), 27–8 and Radioactive Waste Management, glacier research, 24 17–18 Global Initiative to Combat Nuclear judicial decisions and reviews, 90 Terrorism (GICNT), 18 Gnangara groundwater mound, 23 K government, advice to, 20 Karma, Tanya, 3–4 Greenfield, Prof Paul, 5–6, 85, 86 Koala, 11, 26 Greenland ice sheet, 24 Kookaburra, 12 Griffiths, Hefin, 3–4 Kowari, 11, 26 groundwater dating, 23 L H Lyras, Con, 3 health research, 22 health, safety and environmental M protection, 86 Macfarlane, Dr David, 88 Hearn, Prof John, 5–6, 85, 86 McLoughlin, Christine, 5–6, 8, 85, 86 HIFAR, 13, 21 management team, 3–4 HIP technology, 25 materials engineering, 24–6 Humpherson, Andrew, 3–4 Meeting of National RCA Representatives (NRM), 17 I methane release climate research, 23–4 Idaho National Laboratory, 26 Minister for Innovation, Industry, Science indemnities for officers, 91 and Research, 2 Indemnity, Deed of, 83 ministerial directions, 90 insurance premiums for officers, 91 Moata reactor, 20 internal control, 90 Molybdenum-99 (Mo-99), 13–14, 19, 27, international activities, 17–19 29 International Atomic Energy Agency Mongolian glaciers, 24 (IAEA), 8, 17–19 iodine-131, 27 N irradiation facility, 27–8 nanomaterials, toxicology, 25 Italy, stalagmite dating, 24 National Deuteration Facility, 26–7 113  Australian Nuclear Science and Technology Organisation Index National Health and Medical Research outcomes Council (NHMRC), 25 Outcome 1, 35 National Institute of Standards and Outcome 2, 36 Technology (NIST), 22 Outcome 3, 36–8 National Medical Cyclotron, 27–8 Overpeck, Prof Jonathan, 88 National Nuclear Laboratories, 25 National Security Research Group, 19 P neutron-beam instruments, 11–12, 26 Papua New Guinea, inquiry regarding, 20 New Zealand Ministry of Foreign Affairs, Parkinson's disease, 22 19 Paterson, Dr Adi, 3–6, 8, 85 nuclear based infrastructure, 35 Chief Executive Officer's report, 9–10 nuclear liability, 83 Paterson, Bill, 19 Nuclear Non-Proliferation Treaty, 17 performance against strategic objectives, nuclear powered warships, 20 35–8 nuclear technology PETNET Solutions, 12–13, 30 climate change, role in mitigating, 8 Pilbara Region, 23 public acceptance, 9 Platypus, 11, 26 Positron Emission Tomography (PET) O scanning, 12 occupational health and safety, 102–4 Pretty, Edward, 5, 85, 86 Occupational Health and Safety Public Research Agency Charter, 90–1 (Commonwealth Employment) Act 1991, 102–4 Q OPAL see Open Pool Australian Quokka, 11, 26 Lightwater Reactor (OPAL) Open Pool Australian Lightwater Reactor R (OPAL), 26, 35 Radioactive Waste Management (Repeal heavy water, replacement, 11 and Consequential Amendment) Bill 2008, operation by ANSTO, 1 20 radiopharmaceuticals, production, 7 radioisotopes technetium-99m, production, 11 cancer treatment monitoring, 22 Organisation for Economic Co-operation Radiological Source Security and Safety in and Development (OECD) Nuclear Energy the Pacific Workshop, 18 Agency, 19 radiopharmaceuticals, 7, 13 ANSTO Annual Report 2008-2009  114 Index production facilities, 27 Chairman's letter, ii Regional Cooperative Agreement (RCA), 8, Chairman's report, 7 17 Synchrotron, 31–2 Regional Security of Radioactive Sources synrocANSTO, 25 Project, 18 Remuneration Committee, 87 T meetings, 87 Taipan, 26 Ring, Dr Bob, 3 technetium-99m, 11 risk management, 88–9 Technical Advisory Committee, 88 Robinson, Prof Peter, 88 thallium-201, 27 Robinson, Dr Robert, 3–4 top management team, 3–4 Robinson, Roseanne, 4 Turner, Ian, 3–4 Royal Australian Navy (RAN), 20 U S University of Queensland, 25 Safety and Security of Radioactive US Department of Energy (USDOE), 25–6 Sources meeting, 18 used fuel shipment, 13, 21 SandClino wastes, 25 Scales, Bill, 5–6, 85, 86, 87 W science and technology solutions, 36–8 Weiner, Dr Ron, 3 Science Exposed, 28 Wilton, Warren, 86 Science in the City, 28 Wombat, 11, 26 science teachers' conferences, 28 Scott, Prof Andrew, 5–6, 85, 86 Sellafield Ltd, 25 SIXEP Magnox sludge, 25 Smith, Dr Suzanne, 25 Smyth, Erica, 5–6, 8, 85, 86 spent fuel, disposition, 36 stalagmite dating, 24 STAR accelerator, 27 Stirling, Prof William, 88 Storr, Dr Greg, 3–4 Switkowski, Dr Ziggy, 5–6, 85, 87 115  Australian Nuclear Science and Technology Organisation ANSTO Annual Report 2008-2009  116 Contact details ANSTO Canberra New Illawarra Road, Lucas Heights ANSTO Representative New South Wales 2234 Australia Department of Innovation, Industry, Science and Research Postal Address Level 6, Industry House, PMB 1 10 Binara Street Menai NSW 2234 Canberra ACT 2601 Telephone C/- DIISR +61 2 9717 3111 PO Box 9839 Canberra ACT 2601 Facsimile T +61 2 6276 1996 +61 2 9543 5097 Vienna Email Counsellor (Nuclear) enquiries@ansto.gov.au Australian Embassy Website Mattiellistrasse 2-4 www.ansto.gov.au A-1040 Vienna Austria Annual Report on the web T + 43 1 5067 4119 http://ansto.gov.au/resources/general_publicati ons/reports Washington Counsellor (Nuclear) Public information Australian Embassy ANSTO produces regular updates on its 1601 Massachusetts Ave, NW science and technology, has available a range Washington DC 20036 of publications and conducts free tours of its United States of America site. For bookings, information or to get on our T +1 202 797 3042 database, call +61 2 9717 3111 or email enquiries@ansto.gov.au © Commonwealth of Australia 2009 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca 117  Australian Nuclear Science and Technology Organisation Annual Report 2008-2009 Australian Nuclear Science and Technology Organisation www.ansto.gov.au Australian Nuclear Science and Technology Organisation Annual Report 2008-2009