The Water Trading Entity (WTE) performs two functions: water resource management and infrastructure management. Water resource management deals with the management of water quality, conservation and allocation of water through the catchment management agencies or proto- catchment management agencies (regional offices). Infrastructure management deals with the operation and maintenance of existing infrastructure as well as the development of new infrastructure. To fund the development of new infrastructure, the entity receives an allocation from the Department. Funding for operation and maintenance comes from revenue generated from raw water charges. Water resource management charges cover the operational costs of catchment management agencies. The basis used to prepare the WTE financial statements differed from the processes used by the Department. The WTE changed its accounting framework from the International Financial Reporting Standard's (IFRS) Generally Accepted Accounting Practices (GAAP) to the Accounting Standards Board's (ASB) Government Regulated Accounting Practices (GRAP). The WTE adopted GRAP for the first time in 2011/12, which resulted in the re-classification and re-measurement of certain annual financial statement items.