annual report 2015-16 - parliament of nsw · annual report 2015-16 3 chief executive’s foreword...

Annual Report 2015-16

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The Ministerial Development Corporation Annual Report 2015-16 was produced and printed within the Department of Planning and Environment. No external costs were incurred in the production of this report.

ISBN: 978-0-9954207-2-4

Copyright notice

This work is copyright. In keeping with the NSW Government’s commitment to encourage the availability of information, you are welcome to reproduce the material that appears in this report for personal, in-house or non-commercial use without formal permission or charge. All other rights are reserved. If you wish to reproduce, alter, store or transmit material appearing in this report for any other purpose, request for formal permission should be directed to:

Email: [email protected]

Access

The Corporation can be contacted c/-: Department of Planning and Environment Level 22, 320 Pitt Street, Sydney NSW 2000 Phone: 1300 305 695 Email: [email protected]

Business hours for the Department are 9am to 5pm Monday to Friday.

Disclaimer

Whilst every reasonable effort has been made to ensure that this document is correct at the time of publishing, the State of NSW, its agents and employees, disclaim any and all liability to any person in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of this document.

©State of NSW Department of Planning and Environment.

View or download this report from the Department of Planning and Environment’s website: www.planning.nsw.gov.au

Contents

Letter to the Minister 2

Chief Executive’s Foreword 3

About the Ministerial Development Corporation 3

Ministerial Development Corporation Financial Statements 5

Ministerial Development Corporation Audit Statement 18

Appendix 20

Letter to the Minister

The Hon. Rob Stokes MP Minister for Planning Parliament House Macquarie Street Sydney NSW 2000

Dear Minister

I am pleased to submit for presentation to Parliament the Annual Report for the Ministerial Development Corporation for the year ended 30 June 2016.

This report has been prepared in accordance with the Annual Reports (Statutory Bodies) Act 1984 and the Annual Reports (Statutory Bodies) Regulation 2015.

Yours sincerely

Simon Officer Chief Executive Date: 31 October 2016

mailto:[email protected]

mailto:[email protected]


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Chief Executive’s Foreword

The Ministerial Development Corporation (the Corporation) is a NSW statutory body established under section 23E of Part 3A of the Growth Centres (Development Corporations) Act 1974 (the Act). The Corporation was established in 1992 by the Growth Centres (Development Corporations) Amendment Act 1992.

Under section 23E of the Act, the Corporation is responsible for the management and disposal of the remaining assets, rights and liabilities of a dissolved development corporation.

The Corporation is a dormant entity and has not prepared accounts or an Annual Report in recent years. Following consultation between the Department of Planning and Environment, the Audit Office of NSW and NSW Treasury, it has been decided that the Corporation should prepare financial accounts and an Annual Report for 2015-16.

In 2015-16, the Corporation undertook no activities, had no assets or liabilities, and employed no staff. My appointment as Chief Executive was made by the Minister for Planning effective 22 September 2016.

The Corporation is a Schedule 2 entity under the Public Finance and Audit Act 1983 (PFA Act) and is subject to the reporting requirements of the PFA Act and other legislation that applies to Schedule 2 entities.

These reporting requirements are addressed in the report below.

Simon Officer Chief Executive

About the Ministerial Development Corporation

Charter

Under section 23E of the Act, the Corporation is responsible for the management and disposal of the remaining assets, rights and liabilities of a dissolved development corporation.

Section 23F of the Act specifies the functions of the Corporation as follows:

(1) The Ministerial Development Corporation is responsible for the management and disposal of the remaining assets, rights and liabilities of a dissolved development corporation.

(2) Without limiting the generality of subsection (1), the Ministerial Development Corporation, for the purposes of that subsection:

(a) has, in relation to the assets, rights and liabilities of the dissolved development corporation that are transferred to it, the same powers, authorities and functions of that development corporation under sections 8–13, 18, 19 and 21, and

(b) may, with the concurrence of the Treasurer, transfer any of its assets, rights and liabilities to the Crown or to any other person on behalf of the Crown.

Aims and objectives

The Corporation’s aims and objectives are to manage and dispose of the remaining assets, rights and liabilities of dissolved development corporations.

Management and structure

In 2015-16 the Corporation had no members and no staff.

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Summary review of operations for 2015-16

The Corporation is dormant and has undertaken no activities or transactions during 2015-16. During the reporting year, the Corporation held no assets and employed no staff.

As the Corporation has been dormant for some time, it has not prepared accounts or an annual report in recent years. Following consultation between the Department of Planning and Environment, the Audit Office of NSW and NSW Treasury, it was decided that the Corporation should prepare financial accounts and an Annual Report for 2015-16.

After balance date events

Subsequent to the reporting period, Mr Simon Officer was appointed Chief Executive of the Corporation, effective 22 September 2016. Mr Officer is also the Chief Financial and Operating Officer of the Department of Planning and Environment.

About this report

As a corporation constituted under the Act, the Corporation is a Schedule 2 statutory body under the Public Finance and Audit Act 1983. Accordingly, it is required to prepare an annual report compliant with legislative and regulatory provisions. These regulatory matters are addressed in the Appendix.

Responses provided against the reporting requirements reflect the fact that the Corporation is a dormant agency, with no staff, resources, assets or liabilities in the reporting period.


5

Ministerial Development Corporation Financial Statements


7


9


11


13


15


17

18

Ministerial Development Corporation Audit Statement


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Appendix

Miscellaneous Statutory and Regulatory Reporting Requirements

In 2015-16, the Corporation undertook no activities, had no assets or liabilities, and employed no staff.

Accordingly, there is nothing to report in relation to:

• human resources matters;

• financial activity;

• ICT systems; and

• the exercise of any delegation related to an active entity.

The Corporation is a Schedule 2 entity under the Public Finance and Audit Act 1983 (PFA Act) and hence is subject to the reporting requirements of the PFA Act and other legislation that applies to Schedule 2 entities.

These reporting requirements, as set out in NSW Treasury’s Annual Report Compliance Checklist (September 2016), and the Corporation’s report in relation to these matters, are included in the table below.

Risk Management and Insurance

In 2015-16, the Corporation continued to be a dormant entity with no operations.

Under NSW Government administrative arrangements, administration of the Growth Centres (Development Corporations) Act 1974 is allocated to the Minister for Planning. Whilst the Corporation is dormant, the Department provides oversight of its status and accompanying risk profile. As a dormant entity, its risk is rated accordingly.

The Department’s internal audit and risk management systems can and will be made available to provide coverage for the Corporation at any point in the future when the Corporation ceases to be dormant and commences operations.

No insurance arrangements are currently in place for the Corporation. Appropriate insurance cover for the Corporation will be arranged when the Corporation ceases to be dormant and commences operations.

Requirement Reportable information

Funds granted to non-government community organisations

Nil

Legal change Nil

Economic or other factors Not applicable

Research and development Nil

Human resources Nil

Consultants Nil

Workforce diversity Not applicable as nil staff

Disability Inclusion Action Plans Not applicable as nil staff

Land disposal Nil

Promotion (overseas visits by staff) Nil

Consumer response Nil

Payment of accountsNot applicable (no accounts payable)

Time for payment of accountsNot applicable (no accounts payable)

Risk management and insurance activities See above

Internal audit and risk management policy attestation

See below

Disclosure of controlled entities Nil

Disclosure of subsidiaries Nil

Multicultural policies and services program (including agreements with Multicultural NSW)

Not applicable as nil staff

Work, health and safety Not applicable as nil staff

Budgets Not applicable

Additional matters for inclusion in annual report (Privacy and Personal Information Protection Act)

Nil return

Investment performance Not applicable

Liability management performance Not applicable

Numbers and remuneration of senior executives

Not applicable as nil staff

Implementation of price determination Not applicable

Credit card certification Not applicable

GIPA Act 2009: – Proactive disclosures – Access applications received

Nil return.

Digital information security policy attestation

Not applicable (no ICT system)

Public Interest Disclosures Nil return

Requirements arising from employment arrangements

Nil


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Internal Audit and Risk Management Attestation

I, Simon Officer, am of the opinion that the Ministerial Development Corporation is subject to internal audit and risk management processes of the Department of Planning and Environment compliant with the eight (8) core requirements set out in the Internal Audit and Risk Management Policy for the NSW Public Sector, specifically:

Risk Management Framework

1.1 The agency head is ultimately responsible and accountable for risk management in the agency Compliant

1.2 A risk management framework that is appropriate to the agency has been established and maintained and the framework is consistent with AS/NZS ISO 31000:2009 Compliant

Internal Audit Function

2.1 An internal audit function has been established and maintained Compliant

2.2 The operation of the internal audit function is consistent with the International Standards for the Professional Practice of Internal Auditing Compliant

2.3 The agency has an Internal Audit Charter that is consistent with the content of the ‘model charter’ Compliant

Audit and Risk Committee

3.1 An independent Audit and Risk Committee with appropriate expertise had been established Compliant

3.2 The Audit and Risk Committee is an advisory committee providing assistance to the agency head on the agency’s governance process, risk management and control frameworks, and its external accountability obligations Compliant

3.3 The Audit and Risk Committee has a charter that is consistent with the content of the ‘model charter’ Compliant

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Membership

The chair and members of the Audit and Risk Committee are:

Role Name Start term date Finish term date

Independent Chair Brian Blood 1 December 2013 30 November 2017

Independent Member Alan Zammit 27 February 2012 26 February 2018*

Independent Member Elizabeth Crouch 21 October 2013 20 October 2019*

* Includes reappointment for a second term.

Note: Brett Whitworth was appointed as a non-independent member of the Audit and Risk Committee from 27 January 2012 until 26 January 2016. Following the new requirement under TPP 15-03 that the committee only be comprised of independent members, Mr Whitworth’s term was concluded on 25 November 2015.

(signed)

Simon Officer Chief Executive Ministerial Development Corporation Date: 31 October 2016

(signed)

Arvind Tyagi Chief Audit Executive Department of Planning and Environment Date: 31 October 2016

Note to Attestation Statement

It is noted that as an inactive entity, the Corporation is for all intents and purposes similar to a residual entity, as described in NSW Treasury Policy and Guidelines Paper Establishing and Monitoring the Performance of NSW Government Residual Entities (TPP 16-01).

TPP 16-01 highlights that when residual entities are being established, consideration should be given to the point at which reporting obligations under the Public Finance and Audit Act 1983 are triggered. Specifically, TPP 16-01 recommends that enabling legislation provide that reporting obligations are not activated until the financial year in which the entity begins to hold assets, rights and/or liabilities.

The Corporation’s enabling legislation (the Growth Centres (Development Corporations) Act 1974) does not contain such a clause.

The Corporation has not operated in any independent way for the entirety of the reporting year.

Accordingly, the systems used to generate the Corporation’s financial statements for the purposes of the Public Finance and Audit Act 1983 are systems under the control of the Department. Similarly, the resources used to prepare this

annual report are those of the Department. Further, the Corporation’s Chief Executive is a senior executive of the Department.

As the Corporation has no systems or resources independent of the Department, for the purposes of attesting compliance with TPP 15-03, the Corporation is reliant on the Department’s internal audit and risk management systems.

As the Department maintains internal audit and risk management systems that are compliant with TPP 15-03, the Corporation’s status is similarly being attested as compliant.

Subject to advice to the contrary, this will continue to be the case until such time as the Corporation becomes active and therefore takes on a discrete risk profile independent of the Department. At such point application will be made to include the Corporation in the Department’s Principal Department-led Shared Arrangement under NSW Treasury Policy and Guidelines Paper Guidance on Shared Arrangements and Sub-committees for Audit and Risk Committees (TPP 16-02).


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