department of the prime minister and cabinet …...th e handful of pioneering public servants who...
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A N N U A L R E P O R T2010 _11
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A b o u t t h i s R e p o R tThe Department of the Prime Minister and Cabinet’s (PM&C) Annual Report 2010–11 has been prepared in line with the Requirements for Departmental Annual Reports – for Departments, Executive Agents and FMA bodies.
This report is available in print from 39 libraries around Australia.
The online version of this report can be accessed at www.dpmc.gov.au/annual_reports/index.cfm.
C o n tA C t u sIf you have any questions or ideas about this report please contact: Assistant Secretary, Ministerial Liaison, Communications and Governance, Department of the Prime Minister and Cabinet (ABN 18 108 001 191).
Address: One National Circuit Barton ACT 2600 Australia
Mail: PO Box 6500 Canberra ACT 2600 Australia
Internet: www.dpmc.gov.au
Email: [email protected]
Telephone: (02) 6271 5111 +61 2 6271 5111 (international)
Fax: (02) 6271 5414 +61 2 6271 5414 (international)
t R A n s l A t i o n s e R v i C e sThe Department of Immigration and Citizenship (DIAC) provides the Translating and Interpreting Services (TIS) National interpreting service for people who do not speak English and for English speakers who need to communicate with them. TIS National has more than 30 years of experience in the interpreting industry, and has access to over 170 languages and dialects. TIS National is available 24 hours a day, seven days a week for any person or organisation in Australia requiring interpreting services. Phone 131 450 or visit www.immi.gov.au for more information.
ISSN 0157-8340© Commonwealth of Australia, Department of the Prime Minister and Cabinet, 2011Ownership of intellectual property rights in this publicationUnless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is owned by the Commonwealth of Australia (referred to below as the Commonwealth).
Creative Commons licenceThis publication is licensed under a Creative Commons Attribution 3.0 Australia Licence. Creative Commons Attribution 3.0 Australia Licence is a standard form license agreement that allows you to copy, distribute, transmit and adapt this publication provided that you attribute the work. A summary of the licence terms is available from http://creativecommons.org/licenses/by/3.0/au/deed.en. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode.The Commonwealth’s preference is that you attribute this publication (and any material sourced from it) using the following wording:
Source: Licensed from the Commonwealth of Australia under a Creative Commons Attribution 3.0 Australia Licence. The Commonwealth of Australia does not necessarily endorse the content of this publication.
The Creative Commons Attribution 3.0 Australia License does not apply to any illustration, diagram, text, photograph or graphic over which the Department of the Prime Minister and Cabinet does not hold copyright, but which may be part of or contained within this publication. Please examine the material carefully for evidence of other copyright holders. Where a copyright holder other than the Department of the Prime Minister and Cabinet is identified with respect to a specific item in the material that you wish to reproduce, please contact that copyright holder directly.
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About this report iiContact us iiTranslation services iiLetter of transmittal iii
Chapter one – Secretary’s review 1
The year in review 2Our performance 7Our finances 8Our people 8The year ahead 8
Chapter two – Departmental overview 11
The department 12Performance overview 15Executive group 15PM&C organisational structure 18Outcome and program structure 20The PM&C portfolio 22Portfolio resourcing trends 24
Chapter three – Domestic policy (Program 1.1.1) 27
Social Policy Division 29Industry, Infrastructure and Environment Division 32Office of Work and Family 34Economic Division 40COAG Reform Council 43
T A B L E O F C O N T E N T S
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Chapter four – National security and international policy (Program 1.1.2) 45
Homeland and Border Security Division 47National Security Chief Information Officer/ Cyber Policy Coordinator 51Defence, Intelligence and Research Coordination Division 55International Division 57
Chapter five – Strategic policy and implementation (Program 1.1.3) 61
Strategy and Delivery Division 63Implementation Division 64
Chapter six – Support services for government operations (Program 1.1.4) 71
Government Division 73Ministerial Support Division 79Cabinet Division 82
Chapter seven – Commonwealth Heads of Government Meeting 2011 (Program 1.1.5) 85
CHOGM 2011 87
Chapter eight – Official and ceremonial support (Program 1.2) 91
Ministerial Support Division 93
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Chapter nine – Arts and cultural development (Program 2.1) 99
Office for the Arts 102
Chapter ten – Sport and recreation (Program 3.1) 115
Office for Sport 118
Chapter eleven – Management and accountability 121
Corporate governance 122External scrutiny 138Management of human resources 140Occupational health and safety 151Purchasing 154Consultants 155Freedom of information 158Advertising and market research 160Ecologically sustainable development and environmental performance 161Information technology 167Discretionary grants 168
Chapter twelve – Financial statements 169
How we are funded 170Key results 171Statement by the Secretary and Chief Financial Officer 181Independent auditor’s report 182Financial statements 184Index to the notes of the financial statements 200
Appendix 300
Protection of Movable Cultural Heritage Act 1986 report 301
Glossary and indexes 303
Compliance index 304Index of figures 308List of abbreviations 310Glossary of key terms 315Alphabetical index 317
The year in review 2
Our performance 7
Our finances 8
Our people 8
The year ahead 8
C h A P T E R O N E
s e C R e tA R y ’ s R e v i e w
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C h A P T E R O N ESecretary’s review
t h e y e A R i n R e v i e wTh e handful of pioneering public servants who established the Department of the Prime Minister and Cabinet (PM&C) 100 years ago would be perhaps surprised by the breadth and depth of the issues facing the public sector in the early years of the 21st century.
While the professionalism of public servants in responding to the challenges facing government has changed little over the years, the issues themselves have become more complex. Th is is due to the march of globalisation, the changing geopolitical landscape, the advent of powerful new technologies and the emergence of genuinely new issues, such as climate change, which the staff of PM&C in 1911 would not have faced.
Addressing new complex challenges has required PM&C to evolve extensively over the past 100 years and it must continue to evolve. Increasingly PM&C has developed the unique role of being a key problem solver and is best placed to study the most complex policy options before government through its analytical prism.
Th is approach ensures that the Prime Minister and the Cabinet are supported with broad advice and detailed approaches to implementation. Good economic analysis and good public policy, combined with a more rigorous and up-to-date approach to implementation, will result in better solutions to Australia’s public policy opportunities and challenges. For the Australian Public Service (APS) this means a growing requirement for more sophisticated public sector management skills. Without these skills, the capacity of the APS to support government will be limited.
Domestic developmentsTh is year has been both eventful and demanding, marked by the 2010 election, the extended caretaker period and signifi cant new functions following the swearing in of the Gillard government.
On the domestic front, 2010–11 has seen PM&C provide a diverse range of strategic policy advice to the Prime Minister, the Cabinet and our portfolio ministers, and assist in implementing important reforms.
As a result of the historic hung parliament following the 2010 federal election, there were extensive discussions between the major parties, a minor party and independent members about the formation of government. Th e department provided advice to both the Prime Minister and the Leader of the Opposition on mechanisms for briefi ng the independent members. Th at process culminated in the publication on the department’s website of new Guidelines for post-election consultations with independent members.
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Recognising the potential for additional scrutiny of the APS at this time, the department also established a Committee of Government Operations to provide advice on sensitive caretaker issues to ensure that the government could continue to function eff ectively during the extended interregnum.
Th e department displayed the professionalism and integrity expected of us in this period. We worked closely with all portfolio secretaries to ensure that the federal government continued to operate eff ectively and the best traditions of our electoral system were maintained and respected. Once government was formed, we provided an incoming brief to the Prime Minister, as is usual practice, but for the fi rst time PM&C provided the brief via other electronic media as well as in hard copy.
Th e department itself has undergone change over the past 12 months. Th e new administrative arrangements following the 2010 federal election brought some additional signifi cant functions into the department. Arts and sports are fundamental elements of our Australian way of life, and the not-for-profi t sector and the many hundreds of thousands of volunteers in Australia are critical to our society. Th e relocation of these policy areas to the Prime Minister’s portfolio highlights the government’s commitment to maximising the value these sectors bring to the Australian community.
In light of the machinery of government changes to the portfolio during the year, PM&C is best viewed as a combination of the department and 26 agencies. Within the department, there is core continuing
Photo 1.1 Terry Moran
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business coupled with new activities, stewardship functions, the COAG Reform Council and new National Mental Health Commission, portfolio-shared responsibilities and major non-ongoing functions.
Analysis of these elements shows that the average staffi ng level supporting the core continuing element of the department has increased by 2.9 per cent in total over the fi ve years from 2006–07 to 2010–11; the expected increase over the six years from 2006–07 to 2011–12 is 3.9 per cent (Figure 2.4 at page 24 refers). Despite the transfer of new responsibilities and the additional demands made on the department, both the quality of the work and the level of productivity have improved signifi cantly.
Our professionalism was evident when, over the summer, the country was struck by a number of devastating natural disasters, including the severe fl oods in Queensland and other states, as well as Cyclone Yasi. Th e department supported the government’s responses to these disasters by providing high-quality and timely policy advice. We chaired the Australian Government Crisis Committee and the National Crisis Committee and, working with the Attorney-General’s Department, we also assisted with the operation of the Australian Government Crisis Committee and the National Disaster Recovery Committee. PM&C played a key part in coordinating assistance for the states and individuals via the Australian Government Disaster Recovery Payment and the National Disaster Relief and Recovery Arrangements.
On the policy front, PM&C also supported the establishment of the National Broadband Network, including providing the Prime Minister with extensive briefi ng on key corporate governance and implementation risks and arrangements, ensuring that the outcomes of negotiations with Telstra, and the eventual agreements that were reached, were well-informed and eff ective.
A priority for the government in 2010–11 was the development of a carbon price mechanism. In cooperation with other agencies, we assisted in the development of the Clean Energy Future package, designed to enable Australia’s smooth transition to a carbon price. Further, we advised the Prime Minister on a range of other climate change policy issues and supported seven meetings of the Multi-Party Climate Change Committee.
Over the past two years, the department has shown continued leadership on health reform, working closely with the Department of Health and Ageing. Th is involved detailed work by large teams of staff and excellent senior leadership from within the department, which culminated in the Agreement on National Health Reform being accepted at the Council of Australian Governments (COAG) meeting in February 2011 and with a detailed Intergovernmental Agreement formally signed in early July 2011. Th is agreement commits all Australian governments to improving the transparency, governance and fi nancing of Australia’s health and hospitals system.
As well as being closely involved in the development of the government’s health reform package, we also provided extensive advice on the government’s mental health initiative, including the establishment of the National Mental Health Commission.
Th e department also worked closely with the Department of Education, Employment and Workplace Relations in the successful launch of Australia’s fi rst national Paid Parental Leave scheme on 1 January 2011.
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Th ese achievements were underpinned by our support for COAG, which met in February 2011 and was supported by fi ve senior offi cials meetings throughout the year. Th ese meetings led to the development of 12 National Partnership Agreements and other COAG related agreements. Th e department received positive feedback from state and territory representatives involved in the meetings and the outcomes are a testament to the quality of the work and commitment of our staff .
In 2010–11 the Prime Minister continued the government’s community engagement eff ort through Community Cabinet meetings in local communities around Australia. We organised Community Cabinet events in Queensland, Western Australia, South Australia and the Northern Territory.
Our focus on providing whole-of-government policy advice and support remained integral to our work during 2010–11. Along with the Department of the Treasury (Treasury) and the Department of Finance and Deregulation (Finance), PM&C made a major contribution to the 2011–12 Budget process and provided extensive support to the government on the development and implementation of its strategic priorities. During the year the Secretaries’ Committee on Social Policy was a key mechanism ensuring that complex social policy issues were eff ectively coordinated across government.
PM&C continues to lead work to improve the capacity of the APS alongside Finance and the Australian Public Service Commission. Implementation of the Ahead of the game: Blueprint for the reform of Australian Government administration continues apace. 2010–11 saw the fi rst meetings of the Secretaries’ Board and the APS200 forums established to strengthen collaboration across the leadership of the APS. Reforms are underway to improve the capability of the APS from policy design to delivery, including strengthened implementation processes, a strategic policy toolkit and capability reviews at selected departments. Th e development and mobility of APS staff has been another focus in this department and more broadly, with the Strategic Centre for Leadership, Learning and Development established by the Australian Public Service Commission in 2011.
Th e department worked closely with the Australian Information Commissioner to establish the Offi ce of the Australian Information Commissioner, which commenced operation on 1 November 2010. Th e offi ce oversees freedom of information, privacy, and government information policy.
Highlights for the Offi ce for the Arts included the repatriation of Aboriginal and Torres Strait Islander remains; the completion of the Review of the Australian Independent Screen Production Sector; and the preparatory work in developing a new National Cultural Policy, which will be fi nalised in 2012.
On the sporting front, we worked very closely with the Minister for Sport to cement a landmark agreement with the states and territories to deter and deal with match-fi xing. Th is agreed strategy will see a nationally consistent approach to the criminality of match-fi xing and ensure that all sporting codes and bookmakers adhere to consistent national regulation governing behaviour, information sharing, monitoring and reporting. In addition, the department worked closely with the Australian Sports Commission to identify strategic opportunities to improve our performance at the 2012 Olympic Games in London and to increase participation in sport by all Australians.
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Global engagement and national securityIn 2010–11 the department continued to support Australia’s engagement with the international community. Th is involved supporting the Prime Minister and other ministers in bilateral and in multilateral environments, including the G20 and the East Asia Summit (EAS). Th e EAS was given particular attention by the government as the key forum with the membership and mandate to discuss the full range of political, security and economic issues facing the Asia–Pacifi c region. Our support for the Prime Minister’s role at the G20 and in other international forums demonstrated the benefi ts of better linkages that have been established between Australia’s international interests and our relationships in diplomatic, economic and military spheres. Th e strong role of an Associate Secretary as the Prime Minister’s sherpa for the G20 was a key to the excellent results achieved.
Th e department also provided support to the Prime Minister in her overseas visits. Th is included the visit to the United States and the Prime Minister’s address to Congress, while visits to Japan, the Republic of Korea and the People’s Republic of China highlighted the importance of Australia’s partnerships with our top three export destinations. Southeast Asian countries, including Vietnam, Malaysia and Indonesia, were also focal points for the Prime Minister, and PM&C supported her engagement to build positive relationships with these key regional countries. We also worked to strengthen Australia’s longstanding relationship with our trans-Tasman neighbour by supporting the Prime Minister in her historic address to the Parliament of New Zealand on 16 February this year. Less than two weeks after the Prime Minister’s visit, our support role switched focus to coordinating assistance to the people of New Zealand when Christchurch was devastated by a massive earthquake.
A dedicated taskforce was also established within the department to organise CHOGM 2011, which is set to be the largest meeting of world leaders ever held in Australia. Th e organisation of the event is well advanced, with the Secretary-General and Deputy Secretary-General of the Commonwealth visiting to view the world-class arrangements and planning for the event. Training of liaison offi cers and volunteers for CHOGM is also underway.
Photo 1.2 Th e Prime Minister’s sherpa for the G20 and PM&C Associate Secretary, Gordon de Brouwer, meets the Honourable Barack Obama, President of the United States of America.
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We also focused on developing whole-of-government endeavours to promote national security. Th is included the establishment of the Cyber Policy Coordination function within the National Security and International Policy Group and the coordinated whole-of-government responses to border protection issues, including the SIEV221 tragedy at Christmas Island. We also managed coordination and delivery of the 2011 Triennial Review of the National Counter-Terrorism Arrangements.
Th e offi ce of the Independent National Security Legislation Monitor was also established during this period, with the department supporting arrangements for the establishment and ongoing role of the monitor.
o u R p e R F o R M A n C eOverall we performed professionally and creatively in providing the Prime Minister and the government with extensive advice and support in relation to the many complex problems of national security; international relations; economic, social and environmental policy; as well as the many challenges and opportunities of Commonwealth–state relations.
Th e year, as noted previously, was marked by functional changes for the department, including the addition of key government activities undertaken by the Offi ce for the Arts and the Offi ce for Sport. Th e transition of functions from a number of agencies as part of the September 2010 machinery of government changes was complex but was managed well and very professionally. Th e inclusion of these new functions signifi cantly broadened the department’s responsibilities and saw the number of ministers in the portfolio increase to ten.
Photo 1.3 Th e Honourable Julia Gillard MP, Prime Minister of Australia, receives a standing ovation from the Members of the New Zealand House of Representatives after she gives her address during the visit to New Zealand in February 2011.
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o u R F i n A n C e sTh e addition of the Offi ce for the Arts and the Offi ce for Sport to the department has also signifi cantly enlarged PM&C in terms of fi nancial responsibilities. Nonetheless, the transfer occurred seamlessly and the department ensured expenditure remained within our operating budget and our fi nancial management responsibilities were met in full.
o u R p e o p l eTwo enterprise agreements were negotiated and approved by an overwhelming majority of PM&C’s employees during the year. Th e current agreement covers employees until 30 June 2014 and is an important milestone in bringing all non-Senior Executive Service employees together under the same agreement.
Additionally, 2010–11 saw a renewed focus on capability development programs within the department. Th is included the introduction of better targeted training for employees, which will increase our capacity to produce sound, high-quality strategic policy advice to the government. We also continued to target and tailor recruitment to attract outstanding employees from across government, academia and the private and not-for-profi t sectors.
t h e y e A R A h e A DTh e next 12 months look set to keep us equally busy, with activities in a range of areas coming to the fore. Our place at the heart of government means that we must continue to work collaboratively and professionally with partners across government, both Commonwealth and state, academia and the private sector.
As mentioned, CHOGM 2011 will be a major undertaking that will showcase Australia, and particularly Perth, to the world. We will continue to drive this event to ensure that it is world class and successfully executed.
Th e year ahead will also see the review of a large number of COAG national agreements and partnerships, including the National Education Agreement; the National Disability Agreement; the National Aff ordable Housing Agreement; the Homelessness National Partnership Agreement; the National Healthcare Agreement; the National Agreement on Skills and Workforce Development; and the National Indigenous Reform Agreement. Th e department will support the government’s eff orts to engage with the states and territories in these priority areas.
Th is year will see further work on national security strategic policy, including development of the fi rst Cyber White Paper and a risk framework to inform national security community decision making. We will continue to support the Prime Minister’s leadership on Afghanistan and her international engagement, as well as leading and supporting eff orts to strengthen the national security community. Th is includes the implementation of the Independent Review of the Intelligence Community.
I am confi dent that the department will continue to distinguish itself as an organisation of integrity and professionalism that supports the Prime Minister, the Cabinet and portfolio ministers.
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Our centenaryAs I noted at the outset, the start of the new fi nancial year, 1 July 2011, represents the 100th anniversary of the foundation of our department. Th e fi rst offi cial day of operations at PM&C came after Prime Minister Andrew Fisher told the Public Service Commissioner, ‘I am of the opinion that the work of the Prime Minister’s offi ce needs a department directly under his control’.
Th e department began with just six staff , who had moved from the Prime Minister’s Branch of the Department of External Aff airs with the Secretary to the Prime Minister, Malcolm Shepherd. Initially, the department was located in the Commonwealth Offi ces in Treasury Gardens, Melbourne. In 1912–13, with 12 staff in the central offi ce, Treasury calculated that the department cost four pence per Australian. Clearly value for money!
In the early days, PM&C only performed a small range of tasks and had no policy capacity. In the 100 years since, PM&C has grown to become a vital source of whole-of-government advice for the Prime Minister and support for the Cabinet, as well as serving a wide range of other functions as required over time by successive governments.
PM&C’s centenary provides a welcome opportunity for all of us to celebrate this proud history.
Th ousands of dedicated staff have served at PM&C over the past 100 years. In 2011–12 we will hold a series of events to commemorate the work of PM&C’s people and celebrate a century of serving the heart of government.
Secretary’s farewellFor more than three years it has been my great privilege to serve as Secretary of the department under two Prime Ministers: the Hon Kevin Rudd MP and the Hon Julia Gillard MP. I feel enormous pride in the department and its achievements over that time. From September 2011 Dr Ian Watt AO will take over as Secretary and I wish him all the very best.
Th e new and innovative approaches that have been developed by the department during my time here have exciting implications for the future work of the APS. Our country is fortunate to be served by an APS of great strength, integrity and professionalism.
It is my fi rm belief that the Australian Public Service is one of the best public service organisations in the world and I am proud to have been able to serve in it.
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S P E C I A Lfeature
ElEctron ic documEnt rEadErs
Photo 1.4 PM&C staff member loads documents onto an electronic document reader
The Council of Australian Governments (COAG) Secretariat, in conjunction with the Information Services Branch, has taken advantage of new technologies, including electronic document readers, to supplement the paper-based briefing folders used for meetings.
The COAG meeting held on 13 February 2011 was the first time that briefing papers had been prepared for the Prime Minister and departmental officials on electronic document readers.
Ensuring the security of the content stored on the electronic document readers was an important consideration. A solution was developed, which included
the physical disabling of all wireless functionality of the devices.
This initiative has led to a significant reduction in spending on consumables, as well as efficiency savings for the department.
As a result of media attention attracted by the use of electronic document readers by COAG, the department has been contacted by various government agencies, both in Australia and overseas, interested in the security solution developed by the Defence Signals Directorate for PM&C.
Chap
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The department 12
Performance overview 15
Executive group 15
PM&C organisational structure 18
Outcome and program structure 20
The PM&C portfolio 22
Portfolio resourcing trends 24
C h A P T E R T W O
D e p A R t M e n tA l o v e R v i e w
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t h e D e p A R t M e n tTh e Department of the Prime Minister and Cabinet (PM&C) sits at the heart of the Australian Public Service (APS). Its primary role is to provide high-quality policy advice and support to the Prime Minister, the Cabinet Secretary, portfolio ministers and the Cabinet. Th e department, as part of its daily functions, also seeks to drive innovative, strategic and coordinated policy solutions to Australia’s national challenges while supporting the implementation of the government’s strategic priorities. Th e department also supports the management and delivery of the government’s arts, culture, sport and recreation functions.
Th e department has fi ve core groups:
• Domestic Policy Group
Th e Domestic Policy Group supports the development of economic, environmental, productivity and social policies, coordinates the Council of Australian Governments (COAG) arrangements and coordinates PM&C’s support and advice for the Budget process.
• National Security and International Policy Group
Th e National Security and International Policy Group provides advice on Australia’s foreign policy, trade and treaty matters, defence, intelligence, non-proliferation, counter-terrorism, law enforcement, border security and emergency management. It also coordinates security-related science and technology research and plays a leadership role in the development of improved information management and integrated whole-of-government cyber policy.
• Strategic Policy and Implementation Group
Th e Strategic Policy and Implementation Group ensures that forward-looking policy is prioritised in the face of the day-to-day demands of government and oversees the implementation and ongoing delivery of key programs, policies and initiatives, including the government’s APS reform, delivery and community engagement agendas.
• Governance Group
Th e Governance Group provides support services to the Prime Minister, the Cabinet Secretary, portfolio ministers and the Cabinet. It also delivers the department’s enabling and support functions and takes a leadership role in providing advice on public governance and reform across the APS. It will also deliver administrative and logistical arrangements for the CHOGM meeting scheduled to be held in Perth in October 2011.
C h A P T E R T W ODepartmental overview
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• Arts and Sports Group
Th e Arts and Sport Group supports the government to promote excellence in artistic eff ort, provide support for cultural heritage and encourage public access to arts and culture, and to increase participation in physical and active recreational activities by all Australians and to use participation in sport as a means to increase social inclusion and build strong communities.
Impact of machinery of government changesFollowing the 2010 federal election, there were a number of changes to PM&C’s outcome and program structure (Figure 2.1). Th ese changes are also described in the fi nancial statements.
Under the Administrative Arrangements Order of 14 September 2010:
• the Offi ce of the Commonwealth Coordinator General was transferred from Program 1 to the Department of Infrastructure and Transport
• responsibility for ownership and property management of the Prime Minister’s offi cial establishments was transferred from Program 1 to the Department of Finance and Deregulation
• responsibility for the national compact with not-for-profi ts, volunteer management and philanthropy transferred to PM&C from the Department of Families, Housing, Community Services and Indigenous Aff airs, and now forms part of Sub-Program 1.1.1
• responsibility for Coordinated Cyber Policy was established in the department with funding transferred from the Australian Security Intelligence Organisation and the Department of Defence, and now forms part of Sub-Program 1.1.2
• responsibility for arts and culture functions, now Program 2.1, transferred to PM&C from the Department of the Environment, Water, Heritage and the Arts, now the Department of Sustainability, Environment, Water, Population and Communities
• responsibility for Indigenous international repatriation transferred to PM&C from the Department of Families, Housing, Community Services and Indigenous Aff airs, and now forms part of Program 2.1
• responsibility for sport and recreation functions, now Program 3.1, transferred to PM&C from the Department of Health and Ageing
• responsibility for the Remuneration Tribunal was transferred to the Australian Public Service Commission from the Department of Education, Employment and Workplace Relations.
Portfolio changesIn September 2010, a new department of state was established within the portfolio. Th e Department of Regional Australia, Regional Development and Local Government will report separately on its activities since establishment.
Th e Offi ce of the Australian Information Commissioner was established as a prescribed agency within the portfolio on 1 November 2010.
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Figure 2.1 Departmental changes during 2010–11
To
Department of Infrastructure and
Transport
Department of Finance and Deregulation
PM&CFrom
Program 1.4Ownership and property
management of the Prime Minister’s offi cial
establishments
Program 1.1.1 National compact with
not-for-profi ts, volunteer management and
philanthropy
Program 1.1.2 Coordinated cyber policy
Program 2.1Arts and cultural
development
Program 2.1 Indigenous international
repatriation
Program 3.1Sport and recreation
Program 1.1Offi ce of the
Commonwealth Coordinator General
Department of Families, Housing, Community
Services and Indigenous Aff airs
Funding provided by the Australian Security
Intelligence Organisation/Department of Defence
Department of the Environment, Water, Heritage and the Arts
now Department of Sustainability,
Environment, Water, Population and Communities
Department of Families, Housing, Community
Services and Indigenous Aff airs
Department of Health and Ageing
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p e R F o R M A n C e o v e R v i e wAs outlined in the Secretary’s review at page 1, the department has had a successful year. We continued to play a central role in supporting the Prime Minister, the Cabinet and other portfolio ministers and in developing and delivering strategic policy and program advice on a range of key issues. Our performance is underpinned by the integrity and professionalism of our staff and our capacity to respond quickly to emerging issues.
Our core key performance indicators (KPIs) and deliverables are used to assess and monitor our performance and provide an important record of our progress towards meeting government policy objectives, how well public money is being spent and whether planned achievements are on track.
Th e department has substantially met each of its KPIs in 2010–11, as it has over the past three years. Detailed reporting by divisions against each KPI is contained in chapters 3 to 10. In addition, we use the following indicators to measure performance across the department:
• we provided over 2 766 briefs to the Prime Minister and other portfolio ministers, with 345, or 12.5 per cent of these being for use in the Cabinet or Cabinet committees.
• we processed approximately 158 000 items of correspondence addressed to the Prime Minister, other portfolio ministers and their offi ces. Th is was an average of 605 items each working day.
• we oversaw the delivery of 733 question time briefi ngs to the Prime Minister and other portfolio ministers, often within very tight timeframes.
• we also managed the handling of 42 parliamentary questions on notice, with the average response time being 59 days for House of Representatives questions and 61 days for Senate questions. On a number of occasions when a question on notice was asked of all or many ministers, we identifi ed and advised where it was appropriate to provide streamlined responses so departments could avoid unnecessary duplication of information.
• Cabinet and Cabinet committee meetings convened over consecutive days to maximise the availability of ministers for their regular work commitments but often an additional day was required to fi nalise minutes. Th is resulted in the lower fi gure in the reporting period for the release of minutes (see Figure 6.4 at page 83).
e x e C u t i v e g R o u pTh e PM&C Executive Group is the senior leadership group within the department. It deals with all corporate management decisions and issues, considers strategic issues impacting the department and monitors the department’s performance in meeting its outcomes. During 2010–11 there were a number of changes to the eight-member Executive Group; as at 30 June 2011 it comprised the following senior offi cers:
Mr Terry Moran AO (Secretary) was responsible for the overall leadership of the department.
Mr Moran set the strategic direction of the department, determined priorities and resource allocations, delivered organisational performance and led high-priority initiatives. In consultation with associate and deputy secretaries, the Secretary was
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also responsible for corporate governance and internal communications. Mr Moran also ensured the Prime Minister, the Cabinet and portfolio ministers received the highest quality advice and support.
As the nation’s most senior public servant, Mr Moran provided overall leadership to the Australian Public Service through the Secretaries Board and the APS200 group and by assisting with the implementation of the systemic reforms outlined in the May 2010 Ahead of the game: Blueprint for the reform of Australian Government administration.
Mr Moran joined the department in March 2008.
Mr Duncan Lewis AO DSC CSC, National Security Adviser (Associate Secretary) was instrumental in leading and coordinating Australia’s national security community, and providing direct advice to the Secretary and the Prime Minister on policy matters relating to the nation’s security, including international policy issues in areas such as Afghanistan and strengthening the US alliance.
He led the National Security and International Policy Group within the department and was also an ex-offi cio member of the Council of the Order of Australia and the National Australia Day Committee.
He was appointed as National Security Adviser in December 2008.
Dr Gordon de Brouwer PSM (Associate Secretary) was responsible for leading and coordinating the department’s domestic policy eff ort, including providing advice on the G20 as Australia’s G20 sherpa, the Clean Energy Future package and the government’s productivity agenda. Dr de Brouwer was awarded a Public Service Medal in 2011 for outstanding public service in the development of international economic policy, particularly in the formulation of the Australian Government’s agenda to establish the G20 as the pre-eminent global economic forum.
Dr de Brouwer acted as Associate Secretary from September 2010 and was formally appointed to the position in June 2011.
Mr Ben Rimmer (Deputy Secretary) was responsible for providing strategic policy advice on key policy challenges and supporting the implementation and delivery of key initiatives across government. Th is included working closely with the Department of Health and Ageing and relevant state and territory agencies on the government’s health reform agenda throughout the year and exclusively in June 2011.
Mr Rimmer was a Deputy Secretary from July 2008.
Dr Margot McCarthy, Deputy National Security Adviser (Deputy Secretary) supported the work of the National Security Adviser across the breadth of his national security and international policy responsibilities.
Dr McCarthy provided whole-of-government leadership on a range of national security policy issues, including as chair of the National Counter-Terrorism Committee, the Australian Government Crisis Committee and the National Crisis Committee and co-chair of the Australian Emergency Management Committee.
Dr McCarthy was appointed as Deputy National Security Adviser in March 2010.
Mr Richard Eccles (Deputy Secretary) was responsible for delivering the Australian Government’s arts, culture, sport and recreation agenda and for administering programs and policies that ensured the sustainability of these sectors.
Mr Eccles joined the department in October 2010.
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Ms Rebecca Cross (Deputy Secretary) (acting) was responsible for supporting the Associate Secretary on domestic and social policy issues, including employment, early childhood, education and skills development; policies designed to assist families and communities; homelessness, disabilities and service delivery reform; whole-of-government advice on Indigenous aff airs; and social inclusion and the not-for-profi t sector.
Ms Cross acted as Deputy Secretary from October 2010.
Mr Barry Sterland PSM (Deputy Secretary) (acting) was responsible for overall governance of the department, including the department’s enabling and support functions, and support services to the Prime Minister, the Cabinet Secretary, portfolio ministers and the Cabinet. He also oversaw the administrative and logistical arrangements for the CHOGM meeting to be held in Perth in October 2011.
Mr Sterland was acting Deputy Secretary from January 2011.
Dr Paul Schreier (Deputy Secretary) (acting) was responsible for leading strategic policy advice on key policy challenges and supporting the implementation and delivery of key initiatives across government.
Dr Schreier acted in the Deputy Secretary position from June 2011.
Photo 2.1 Th e Executive
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p M & C o R g A n i s A t i o n A l s t R u C t u R eFigure 2.2 Organisational structure (at 30 June 2011)
Terry Moran, Secretary
Domestic PolicyAssociate SecretaryGordon de Brouwer
Strategic Policy and ImplementationDeputy Secretary
Paul Schreier*
GovernanceDeputy SecretaryBarry Sterland*
Social PolicyDeputy SecretaryRebecca Cross*
Executive CoordinatorPeta Furnell
Corporate Services Division
FAS Bernadette Welch
Executive CoordinatorPete Docwra*
Executive CoordinatorAndrew Hockley
Industry, Infrastructure and Environment
DivisionFAS Marie Taylor*
Strategy and Delivery Division
FAS Dominic English
Economic DivisionFAS David Turvey*
Government DivisionFAS Philippa Lynch
Implementation Division
FAS Rachel Bacon*
Cabinet DivisionFAS Chris Angus*
Offi ce of Work and Family
FAS Paul Ronalds
Social Policy Division FAS Tim Beresford
Special DutiesDeputy Secretary
Ben Rimmer
Ministerial Support Division
FAS Kim Terrell*
CHOGM TaskforceFAS Terry Crane *
* denotes actingFAS – First Assistant Secretary
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National Security and International PolicyAssociate Secretary
National Security AdviserDuncan Lewis
Arts and Sports GroupDeputy SecretaryRichard Eccles
Offi ce for the Arts FAS Sally Basser
International DivisionFAS Dave Sharma*
Offi ce for SportFAS Bill Rowe
Defence, Intelligence and Research
Coordination DivisionFAS Graham Eveille*
National Security and International Policy
Deputy SecretaryDeputy National Security Adviser
Margot McCarthy
National Security Chief Information
Offi cer/Cyber Policy Coordinator
FAS Rachel Noble
Homeland and Border Security Division
FAS Sachi Wimmer*
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o u t C o M e A n D p R o g R A M s t R u C t u R eTh e department worked to achieve three outcomes, supported by four programs:
Outcome 1: coordination of government activities; policy development; advice and program delivery to support and inform the Prime Minister, the Cabinet and the Cabinet Secretary
Outcome 2: participation in, and access to, Australia’s arts and culture through developing and supporting cultural expression
Outcome 3: improved opportunities for community participation in sport and recreation, and excellence in high-performance athletes, including through investment in sport infrastructure and events, research and international cooperation.
Th ese outcomes, and the associated program structure, are consistent with the outcome and program framework (see Figure 2.3) and performance targets in the Portfolio Budget Statements 2010–11 and Portfolio Additional Estimates Statements 2010–11. Th ere were no other changes to the performance targets in the reporting period.
Photo 2.2 PM&C staff participate in National Aborigines and Islanders Day Observance Committee (NAIDOC) Week celebrations
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Figure 2.3 Our outcome and program framework
Outcome: Sound and well coordinated government policies, program and decision-making processes
Outcome 1Coordination of government activities; policy development, advice and program delivery to support and inform the Prime Minister, the Cabinet and the Cabinet Secretary
Outcome 2Participation in, and access to, Australia’s arts and culture through developing and supporting cultural expression
Outcome 3Improved opportunities for community participation in sport and recreation, and excellence in high performance athletes, including through investment in sport infrastructure and events, research and international cooperation
Program 1.1Prime Minister and Cabinet
Sub-Program 1.1.1Domestic policy
Sub-Program 1.1.2National security and international policy
Sub-Program 1.1.3Strategic policy and implementation
Sub-Program 1.1.4Support services and government operations
Sub-Program 1.1.5Commonwealth Heads of Government Meeting 2011
Program 1.2Offi cial and ceremonial support
Program 2.1Arts and cultural development
Program 3.1Sport and recreation
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t h e p M & C p o R t F o l i oTh e range of responsibilities in the Prime Minister and Cabinet portfolio increased signifi cantly following the 2010 election. At 30 June 2011, the portfolio had ten portfolio ministers, including two assisting ministers, and 27 separate agencies. Th e portfolio includes the following ministers and parliamentary secretaries:
• Th e Hon Julia Gillard MP, Prime Minister
• Senator the Hon Stephen Conroy, Minister Assisting the Prime Minister on Digital Productivity
• Th e Hon Simon Crean MP, Minister for Regional Australia, Regional Development and Local Government; and Minister for the Arts
• Th e Hon Tanya Plibersek MP, Minister for Social Inclusion
• Th e Hon Brendan O’Connor MP, Minister for Privacy and Freedom of Information
• Senator the Hon Mark Arbib, Minister for Sport
• Th e Hon Warren Snowdon MP, Minister Assisting the Prime Minister on the Centenary of Anzac
• Th e Hon Gary Gray AO MP, Special Minister of State for the Public Service and Integrity
• Th e Hon Mark Dreyfus QC MP, Cabinet Secretary
• Senator the Hon Kate Lundy, Parliamentary Secretary to the Prime Minister
Components of the portfolioAs at 30 June 2011, the portfolio comprised two departments of state, nine Commonwealth authorities, four Commonwealth companies and 12 prescribed agencies.
Departments of state
• Department of the Prime Minister and Cabinet
• Department of Regional Australia, Regional Development and Local Government
Commonwealth authorities
• Australia Council
• Australian Film, Television and Radio School
• Australian National Maritime Museum
• Australian Sports Commission
• National Film and Sound Archive
• National Gallery of Australia
• National Library of Australia
• National Museum of Australia
• Screen Australia
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Commonwealth companies
• Australia Business Arts Foundation Limited
• Australian Sports Foundation Limited
• Bundanon Trust
• National Australia Day Council Limited
Prescribed agencies
• Australian Institute of Family Studies
• Australian National Audit Offi ce
• Australian Public Service Commission
• Australian Sports Anti-Doping Authority
• National Archives of Australia
• Offi ce of National Assessments
• Offi ce of the Australian Information Commissioner
• Offi ce of the Commonwealth Ombudsman
• Offi ce of the Inspector-General of Intelligence and Security
• Offi ce of the Offi cial Secretary to the Governor-General
• Old Parliament House
• National Capital Authority
Photo 2.3 PM&C staff members donate blood to the Australian Red Cross
s o C i A l s n A p s h o t
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p o R t F o l i o R e s o u R C i n g t R e n D s Th e budgeted appropriation and average staffi ng level (ASL) trends for agencies in the Prime Minister’s portfolio (excluding the Department of Regional Australia, Regional Development and Local Government and its related agency) are detailed in the fi gure below:
Figure 2.4 Portfolio resourcing trends
ASL1Appropriation2
‘000
% change since
2006–07 2011–12 2006–07 2006–07 2011–12
PM&C function
Offi ce of the Australian Information Commissioner – 81 n/a – 11 045
Offi ce of the Privacy Commissioner3 52 – n/a 6 454 –
Australian Institute of Family Studies 51 64 25.5 4 051 3 717
Australian National Audit Offi ce 315 364 15.6 60 874 75 590
Australian Public Service Commission 201 278 38.3 19 313 26 014
National Archives of Australia 402 429 6.7 53 688 62 390
Offi ce of the Commonwealth Ombudsman 146 149 2.1 16 892 20 757
Offi ce of the Inspector-General of Intelligence and Security 7 14 100.0 1 456 2 250
Offi ce of National Assessments4 139 148 6.5 25 975 35 078
Offi ce of the Offi cial Secretary to the Governor-General 82 86 4.9 10 735 11 417
Old Parliament House – 76 n/a – 13 827
Subtotal 1 395 1 689 21.1 199 438 262 085
Arts function5
Australia Business Arts Foundation Limited6 – 24 n/a – –
Australia Council – 122 n/a – 176 681
Australian Film, Television and Radio School – 140 n/a – 24 140
Australian National Maritime Museum – 125 n/a – 21 692
continues…
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ASL1Appropriation2
‘000
% change since
2006–07 2011–12 2006–07 2006–07 2011–12
Bundanon Trust6 – 17 n/a – –
National Film and Sound Archive – 215 n/a – 24 980
National Gallery of Australia – 242 n/a – 29 609
National Library of Australia – 427 n/a – 48 989
National Museum of Australia – 251 n/a – 40 280
National Australia Day Council6 – 12 n/a – –
Screen Australia – 120 n/a – 19 781
Subtotal – 1 695 n/a – 386 152
Sport function
Australian Sports Commission7 – 735 n/a – 268 693
Australian Sports Anti-Doping Authority – 65 n/a – 13 337
Subtotal – 800 n/a – 282 030
Total 1 395 4 184 199.9 199 438 930 267
Department of the Prime Minister and Cabinet (see PM&C staffi ng overview for distinction between core continuing business and all other activities) 607 980 61.4 127 211 205 559
Total portfolio 2 002 5 164 157.9 326 649 1 135 826
PM&C: percentage of portfolio 30% 19% 39% 18%
Notes:1 2006–07 and 2010–11 ASL sourced from the annual report. 2011–12 ASL sourced from the 2011–12
Portfolio Budget Statements.2 2006–07 actual revenue from government has been adjusted to deduct depreciation expense to facilitate
comparison between the budget appropriations in years following the move to the net cash framework in 2010–11.
3 Th e Offi ce of the Privacy Commissioner was integrated into the Offi ce of the Australian Information Commissioner on 1 November 2010.
4 2006–07 fi gures for the Offi ce of National Assessments are provided from the Portfolio Budget Statements as no annual report is published for this agency.
5 Th e arts and sport functions were incorporated into the department following the machinery of government changes of 14 September 2010.
6 Th ese agencies are not funded by direct appropriation.7 Includes staff of the Australian Sports Foundation Limited.
continued…
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Figure 2.5 PM&C staffi ng overview
Over the six-year period, PM&C’s staffi ng budget has been directed towards the following functions:
Function ASL1 % change
since 2006–07 2010–11 2011–12 2006–07
Core continuing business and new activities2 488 502 507 3.9
Stewardship functions3 – 142 3324 n/a
COAG Reform Council and National Mental Health Commission – 30 37 n/a
Portfolio shared responsibilities5 6 25 25 316.7
Major non-ongoing functions6 113 79 79 –30.1
Total PM&C average staffi ng level 607 778 980 61.4
Notes:1 2006–07 and 2010–11 ASL sourced from the annual report. 2011–12 ASL sourced from the 2011–12
Portfolio Budget Statements.2 Core continuing business and new activities include the National Security Adviser, transferred functions
from other agencies, Community Cabinet and COAG activity. 3 Stewardship functions include the Offi ce for the Arts and Offi ce for Sport.4 Th e increase in ASL from 2010–11 to 2011–12 mainly refl ects the full year impact of the arts and sport
functions. Th e Offi ce for the Arts and the Offi ce for Sport were transferred to PM&C part way through the 2010–11 fi nancial year following the machinery of government changes.
5 Portfolio shared responsibilities include departmental liaison offi cers, Cabinet liaison offi cers, parliamentary liaison offi cers and shared service support to other agencies.
6 Major non-ongoing functions include APEC, the Uranium Mining and Nuclear Technology Taskforce, elements of the COAG agenda, CHOGM 2011 Taskforce and the Border Protection Working Group.
Senior Executive positions as at 30 June 2006–07 2010–11
Head count (not full time equivalent)1 52 792
Notes:1 Senior Executive numbers sourced from the PM&C fi nancial statements.2 Includes the Special Adviser and the Mental Health Commissioner designate.
Chap
ter 3
/ D
omest
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Prog
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.1)
Social Policy Division 29
Industry, Infrastructure and Environment Division 32
Office of Work and Family 34
Economic Division 40
COAG Reform Council 43
C h A P T E R T h R E E
DoMest iC pol iCy (pRogRAM 1 . 1 . 1 )
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The Domestic Policy Group covers a wide range of issues – economic, environmental and social – that have a profound effect on the lives of Australians.
The group comprises four divisions:
• Social Policy Division
• Industry, Infrastructure and Environment Division
• Office of Work and Family
• Economic Division.
The Council of Australian Governments (COAG) Reform Council (CRC) operates independently of the department, providing objective, credible assessments and reporting on the performance of governments in national reform areas, as referred by COAG.
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of the Prime Minister, the Cabinet Secretary and the parliamentary secretaries with the quality and timeliness of advice, briefing and support in relation to domestic policy development and implementation, the budget process and international economic and financial policy
Feedback indicated that the Prime Minister, other relevant ministers and parliamentary secretaries, and their offices were satisfied with the quality and timeliness of policy advice and the achievement of key tasks.
KPI: High level of satisfaction of the Secretary and the departmental Executive with the quality and timeliness of policy advice on industry, infrastructure, environmental, economic and social policy issues
Feedback indicated that the Secretary and the departmental Executive were satisfied with the quality and timeliness of policy advice and the achievement of key tasks.
Highlights 2010–11This year, the Domestic Policy Group was involved in advising the Prime Minister and the Cabinet and working with departments to progress a number of critical, high-profile policy processes, including:
• national health reform
• the design of the Clean Energy Future package
C h A P T E R T h R E EDomestic policy (Program 1.1.1)
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• disaster relief and recovery following the floods in Queensland and Victoria
• the implementation of the National Broadband Network (NBN)
• Australia’s engagement with the G20 and developments in the international econom
• the Building Australia’s Future Workforce package
• mental health reform, including the establishment of the National Mental Health Commission
• developing a not-for-profit sector reform agenda and working to establish the Australian Charities and Not-for-profits Commission
• water reform in the Murray-Darling Basin
• providing advice and coordination support to the government and agencies for the 2011–12 Budget
• assisting the government to develop the roles and responsibilities of the Productivity Committee of Cabinet
• the Australian Social Inclusion Board’s second annual report and three social inclusion research reports.
y
s o C i A l p o l i C y D i v i s i o nSocial Policy Division advises the Prime Minister on key social policy issues that shape the lives of all Australians – policies relating to health programs and systems; ageing; sport; immigration and citizenship; and Indigenous Australians, including Closing the Gap on Indigenous disadvantage.
Throughout 2010–11, we supported the development, implementation and review of the government’s social policy agenda, including current and emerging issues that affect health, immigration, citizenship and Indigenous Australian affairs. Our advice was informed by consultations with Commonwealth, state and territory departments, industry and community stakeholders.
Health reformPM&C worked with the Department of Health and Ageing to negotiate the new National Health Reform Agreement between the Australian Government and the states and territory governments. Following the February 2011 COAG meeting, where governments committed to work in partnership to improve the transparency, governance and financing of Australia’s health and hospitals system, we worked through a range of technical details with officials. The National Health Reform Agreement was subsequently agreed by all governments in early August 2011.
Mental health reform As well as assisting in the development of the Australian Government’s mental health reform package for the 2011–12 Budget, providing $1.5 billion in new investments for mental health services over five years, PM&C also advised on establishing the National Mental Health Commission (NMHC). To be launched as an executive agency in the PM&C portfolio from 1 January 2012, the NMHC will independently monitor, assess and report on how the system is performing. These investments aim to help Australians who suffer from mental illness to access appropriate support quickly, giving them the best chance to recover, stabilise and stay well in the community.
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Indigenous reform agendaOn 9 February, the Prime Minister presented the Australian Government’s third report to the parliament on progress to address the Closing the Gap targets. PM&C contributed a whole-of-government assessment of the prospects of achieving each target and advised on priorities for further action.
We also worked with the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to improve government engagement with the National Congress of Australia’s First Peoples, particularly to maximise the Congress’s contribution to policy development.
To support the government’s commitment to pursuing recognition of Indigenous people in the Constitution, PM&C provided advice to the Prime Minister on establishing an expert panel to lead a public discussion about the proposed changes.
We also assisted, in consultation with FaHCSIA, with the Prime Minister’s visit to the Northern Territory in June to assess progress on the ground in addressing Indigenous disadvantage and to identify next steps. PM&C has also been involved in reviewing the National Indigenous Reform Agreement (NIRA) performance framework. Commissioned by COAG, the review will focus on robust measurement and public accountability of the NIRA performance indicators against the six Closing the Gap targets.
ImmigrationWorking with the Department of Immigration and Citizenship, we helped to develop The people of Australia: Australia’s multicultural policy. Launched on 16 February, the policy reaffirms the importance of a culturally diverse and socially cohesive Australia. As part of this process, we advised the Prime Minister on both the underlying policy and the program initiatives it supports.
We also provided strategic policy advice on reforms to Australia’s skilled migration program, announced in the 2011–12 Budget. These reforms will help to support Australia’s growing economy, including through initiatives to address skill shortages in regional areas, and support regional settlement, including through prioritising regionally sponsored applicants. More broadly, we helped to develop a long-term migration planning framework to better manage migration levels as part of the government’s sustainable population policy. Together with other recent reforms, the framework will allow for a moderate increase in migration program numbers in 2011–12 to 185 000.
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P R O F I L E
Joy Savage – Assistant Secretary, Indigenous Policy and CitizenshipThe opportunity to work at the centre of government in a tight-knit, high-energy environment that demanded no less than my very best is what attracted me to PM&C.
I joined the department in 2009 following several years at the Department of Health and Ageing and with prior experience in the Aboriginal community controlled health sector. In my work on issues such as Indigenous affairs and immigration, I am brought into contact with almost every other area of the department – from climate change to national security – on a regular basis.
One of the most invigorating parts of my job is seeing the breadth and depth of advice come together to serve the government of the day. The political spotlight on irregular maritime arrivals and getting the balance right between good public policy and issue management has been one of the challenges of 2010–11. The highlights for me, though, have been working on the refresh of the National Indigenous Reform Agenda through COAG, the Prime Minister’s annual statement to parliament on Closing the Gap and the government’s Australian Multicultural Policy.
Despite turning 100 this year, PM&C is not fixed in its ways. The culture of continuous improvement here, as well as our commitment to serving the government of the day, is one of PM&C’s strengths.
Photo 3.1 Joy Savage
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i n D u s t R y, i n F R A s t R u C t u R e A n D e n v i R o n M e n t D i v i s i o nIndustry, Infrastructure and Environment Division advises the Prime Minister, the Cabinet, portfolio ministers and the department’s Executive on policies relating to industry, innovation, energy, resources, small business, tourism, climate change, the environment, heritage, water, agriculture, fisheries, forestry, customs, infrastructure, transport, regional services, regulatory reform, urban policy, competition and consumer policy, copyright, communications, broadcasting and the digital economy.
Climate change and clean energyWorking closely with other agencies, PM&C was active in developing the Clean Energy Future package. The package, which will see the establishment of a carbon price mechanism and measures to assist industry and the community with the transition to a carbon price, was just one of many climate change policy issues we advised on during the year. With our colleagues in the Cabinet Secretariat and Government Division, we helped to set up the Multi-Party Climate Change Committee and supported the Prime Minister’s involvement in this new and innovative cross-party forum.
We also advised the Prime Minister on the findings of several major policy processes – including the Prime Minister’s Task Group on Energy Efficiency, the Garnaut Climate Change Review 2011 Update, and the Productivity Commission’s assessment of Carbon Emission Policies in Key Economies – and how the government might best respond. As well as advising on the Renewable Energy Target, we advised on climate change adaptation and international climate change policy, supported implementation of the Clean Energy Solar, and Carbon Capture and Storage Flagship programs and helped to establish the COAG Select Council on Climate Change.
Water, drought and agriculture policyPM&C advised the Prime Minister on the progress of water reform, including on the development of the Murray-Darling Basin Plan and the recommendations of the Windsor Inquiry. We also worked closely with other agencies to address stakeholder concerns on the impact of water reforms in the Basin, such as through improving the government’s community consultation in the development and delivery of water policies and programs.
The Minister for Agriculture, Fisheries and Forestry announced a ban on live animal exports to Indonesia on 8 June 2011 due to significant concerns about animal welfare issues. PM&C worked closely with the Department of Agriculture, Fisheries and Forestry and other Commonwealth agencies on restoring trade, and ensuring that appropriate levels of animal welfare protection are central to the new regulatory arrangements. As well as advising the Prime Minister about the live cattle export situation, we helped to develop assistance measures for affected live export businesses.
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Environment and heritageAustralia’s first sustainable population strategy, Sustainable Australia: sustainable communities, was developed in 2010–11. We advised the Prime Minister on its development and assisted in the coordination of this policy with related measures such as the National Urban Policy. We also provided advice on the implementation of the Commonwealth Marine Reserve Networks policy, which develops networks of marine reserves in order to secure the rich biodiversity of Australian marine life.
Industry, resources and regulatory reform policyAustralia’s joint bid with New Zealand to host the Square Kilometre Array, the world’s largest and most sensitive radio telescope, advanced further in 2010–11. PM&C continued to advise the Prime Minister on the progress of the bid to host the telescope, which will be used for research into areas of fundamental astronomy and astrophysics.
We worked intensively with the Department of Resources, Energy and Tourism to help develop the government’s response to the Montara Commission of Inquiry, including proposals to improve the regulation of the offshore oil and gas industry.
We also helped to develop the COAG response to the 2009–10 report by the CRC on progress towards a Seamless National Economy. Further, we assisted the Department of the Treasury (Treasury) and the Department of Finance and Deregulation (Finance) to develop proposals for a further wave of regulatory and competition policy reforms.
Communications policyTogether with the Department of Broadband, Communications and the Digital Economy and Finance, PM&C assisted with NBN implementation issues, including the government’s response to the Implementation Study for the National Broadband Network and the government’s assessment of NBN Co’s corporate plan. We also provided advice on the Definitive Agreements between NBN Co and Telstra and new arrangements to deliver the Universal Service Obligation.
Collaborating across PM&C and the APSIn 2010–11, we pursued opportunities to work across teams, divisions and agencies. Some notable examples have included the secondment of officers to taskforces on water reform in the Murray-Darling Basin, the Clean Energy Package, and Australia’s economic and industrial future. Secondments to interdepartmental taskforces have given our staff exposure to the work of delivery agencies and a better understanding of implementation challenges.
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o F F i C e o F w o R k A n D F A M i ly
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of the Chair of the Australian Social Inclusion Board and the Not-for-Profit Sector Reform Council with the quality of support provided by the departmental secretariat
The work of the Social Inclusion Unit improved dramatically in the last year. It was a time when there were many challenges, including the need to produce three high-quality research papers and to refresh the composition of the board. In both these tasks, the unit supported the board with high-quality work and took the initiative. The Chair of the Australian Social Inclusion Board was satisfied completely with the service that has been provided to the board for the last financial year.
The Chair of the Not-for-Profit Sector Reform Council was very satisfied with the support provided by the secretariat. At the first two meetings of the Council in 2011, the Chair recorded for the minutes her appreciation for the professional assistance provided to the council by the secretariat.
KPI: Number of individuals assisted towards volunteering: volunteer management
Around 393 000 individuals were assisted towards volunteering in 2010–11, including over 96 000 reported by Volunteering Queensland. The majority of these contributed to the response and recovery efforts of the Queensland natural disasters.
The Office of Work and Family (OWF) advises the Prime Minister on a range of issues, including workforce participation, early childhood, pensions, homelessness, disaster recovery, welfare, education, youth and disabilities. We also support the Minister for Social Inclusion on a number of social inclusion priorities, as well as not-for-profit reform, philanthropy and volunteering.
Supporting families and communities The Australian Institute of Family Studies report Families in Australia 2011: sticking together in good and tough times examined the challenges families face. To help families meet these challenges, OWF provided policy advice across a broad range of issues, including assisting FaHCSIA to launch the first national paid parental leave scheme and helping to develop the National Plan to Reduce Violence Against Women and their Children.
Supporting families also means supporting communities. PM&C advised the Prime Minister on the Productivity Commission’s report on gambling, which highlighted the significant social cost of gambling estimated to be at least $4.7 billion per annum. We also provided advice on electronic gaming machines, the wagering and racing industries, and online gambling.
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Disability support was a significant issue during 2010–11, and we worked with FaHCSIA on important reforms. Having considered the Productivity Commission’s draft report on disability care and support, we helped FaHCSIA develop the first National Disability Strategy and a plan for future action. PM&C also supported the introduction of the Better Start for Children with Disability program, which aims to improve access to early intervention services for eligible children with disabilities that affect their development.
Again working with FaHCSIA, PM&C implemented reforms to address the disadvantage faced by homeless people. These reforms included promoting better planning and prioritisation of reform across the public service through the Homelessness Delivery Review Board.
The summer of 2010–11 was one that will not soon be forgotten by the people of Queensland and Victoria, whose communities faced and in many cases continue to face huge challenges to recover from the widespread flooding and loss of life and property. PM&C worked closely with other Commonwealth and state agencies to coordinate assistance to the states and individuals through the Natural Disaster Relief and Recovery Arrangements and the Australian Government Disaster Recovery Payment.
Read more about how we supported the community through the recent natural disasters on page 88.
Young Australians, skills and education Ensuring young Australians have the education and skills needed to both realise their individual potential and contribute to our workforce continued to be a major focus for PM&C this year, with OWF playing a major role in the development of the Building Australia’s Future Workforce package announced in the 2011–12 Budget. The package, which provides $3.02 billion over six years, is a new approach to delivering the skilled workforce the economy needs and ensuring opportunities for all Australians to experience the benefits of work. The package also includes 10 place-based pilots, which cover a number of initiatives intended to deliver on both social inclusion and workforce participation over the next four years.
Participation and wellbeing are concepts that are inextricably linked. We continued to work closely with the Department of Education, Employment and Workplace Relations (DEEWR) and other agencies to increase participation and, consequently, wellbeing for vulnerable youth and early school leavers, very long term unemployed people, Aboriginal and Torres Strait Islander job seekers, people with disability, people from culturally and linguistically diverse backgrounds, and people living in disadvantaged areas of Australia.
On education policy, we worked closely with DEEWR on the Making Every School a Great School national school reform package. This included active engagement in the development of other reforms in this key area, including initiatives such as Reward Payments for Great Teachers, Empowering Local Schools, Reward for School Improvement, Teach Next, the Australian Baccalaureate and National Trade Cadetships.
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Social inclusionAs well as providing advice to ministers on social inclusion issues, PM&C supported the Australian Social Inclusion Board (ASIB) and helped to progress the social inclusion agenda across government and other sectors. We assisted the ASIB to develop and publish three significant social inclusion research reports: Addressing barriers for jobless families, Breaking cycles of disadvantage and Governance models for location based initiatives. Drawing on the recommendations of these reports, the ASIB also published its second annual report, focusing on ways in which the delivery of government programs and services might change into the future.
The ASIB’s research findings were, with help from PM&C, presented to ministers and departmental secretaries to ensure that these findings help inform consideration of a wide range of policy issues. We also facilitated a national consultation process on breaking cycles of disadvantage, with consultations held in all capital cities.
The ASIB also sought to engage broadly, holding board meetings in Alice Springs, Townsville and Sydney and undertaking service visits to disadvantaged areas to assist in its research.
PM&C was also involved in other aspects of social inclusion policy, providing advice on the service delivery reform underway through the Department of Human Services.
The not-for-profit sectorWe established the Office for the Not-for-Profit Sector, based in PM&C, to drive and coordinate the regulatory reform agenda and reduce red tape for the sector. The work of the office is supported by the new Not-for-Profit Sector Reform Council, whose membership includes a wide range of sector leaders.
PM&C took a lead role in developing the National Volunteering Strategy, after the transfer of functions from FaHCSIA. The strategy will be launched in 2011 as part of the government’s support for the United Nation’s Tenth Anniversary of the International Year of Volunteering. Further, as another way of marking this important year, the Minister for Social Inclusion established an International Year of Volunteering Tenth Anniversary Advisory Group to provide advice to the government on the not-for-profit sector.
Other new functions that PM&C took on during the year included responsibility for whole-of-government volunteering policy.
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P R O F I L E
Marie Taylor – Industry, Infrastructure and Environment DivisionI was raised in the small coal mining town of Muswellbrook in a family of 10 children, studied economics at the Australian National University and worked for Westpac (as a graduate) in Sydney for a few years. Leaving the rush and bustle behind, I settled in Canberra to live with my fabulous family.
I am fascinated by Australia’s energy sector and the quest to form national energy markets, increase competition, use energy more efficiently and transition to lower emissions energy. Due to my interests, I feel that I am immensely privileged to work here in PM&C, supporting the Prime Minister and the Cabinet in the pursuit of pricing carbon over the last two years. This work contrasts with my previous roles in the Australian Public Service, such as running the regional tourism program in the then newly established Department of Tourism.
Public policy is immensely rewarding and enriching. Not only does a role in the APS offer you the ability to work on some of the most difficult and intractable problems, it offers you diversity and the chance to work with gifted and committed people. It offers a chance to make a difference on issues that are really important to the social and economic wellbeing of most Australians, and PM&C is at the heart of these opportunities.
Photo 3.2 Marie Taylor
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S P E C I A Lfeature
not-for-prof it sEctor rEformAs well as playing a critical role in the fabric of our communities, the not-for-profit (NFP) sector is a key partner in delivering a range of services on behalf of governments. The approximately 600 000 NFP organisations in Australia contribute around 4.1 per cent of Australian Gross Domestic Product and 8 per cent of employment – comparable to that of the transport and storage sector.
Australia needs a strong and vibrant NFP sector. The government is putting in place reforms that will allow organisations to do what they do best: support Australians to live more enriched lives. Currently, organisations spend too much time and effort complying with different regulations and laws across government. In 2008, the Australian Centre for Philanthropy and Nonprofit Studies released a research report titled How long is a piece of red tape? The paperwork reporting cost of government grants. The organisations included in the study spent an average of 1.7 per cent of their total revenue on completing paperwork for government. Given that, according to the Australian Bureau of Statistics, the NFP sector has annual revenue of $43 billion, the potential gains are significant.
The reforms are underpinned by the National Compact, which outlines the commitment to developing a better
relationship between the government and the sector. The priority areas under the National Compact include recognising sector diversity in consultation processes, reducing red tape and streamlining reporting, improving funding and procurement processes, and simplifying and improving consistency of financial arrangements.
To drive and coordinate the reform, the Office for the Not-for-Profit Sector was established in the department in October 2010. The Office is supported by the Not-for-Profit Sector Reform Council, made up of eminent figures from the sector, whose role is to provide advice to the government on implementing the National Compact and broader reforms. The Reform Council will be leading the development of a consultation and policy development code to support the National Compact, outlining a framework for engagement between the government and the sector.
The 2011–12 Budget provided $53.6 million over four years for an Australian Charities and Not-for-profits Commission (ACNC), a much anticipated initiative for the sector. The ACNC will be headed by an independent commissioner who will report directly to parliament through the Assistant Treasurer.
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To begin with, the ACNC will be responsible for deciding the legal status of groups seeking to be designated as charitable or public benevolent institutions or receive other benefits. It will also create a ‘report once, use often’ framework that aims to significantly reduce the reporting burden on NFP organisations.
The ACNC will also have an educative role for the sector and the public, particularly through a public information portal. The portal will come online in July 2013 and will provide a central point for the public to find out about their chosen charity, helping to improve public trust and confidence in the sector.
Negotiations with the states and territories on national regulation and a single national definition of ‘charity’ are progressing through the Council of Australian Governments (COAG). This complements COAG work already underway to develop greater consistency between Commonwealth, state and territory government fundraising laws,
which we hope will make fundraising easier for organisations and increase accountability to the public.
One of the most pressing reforms is reducing the reporting burden for NFP organisations from multiple government contracts and funding agreements. The Australian Government is developing a common grant funding agreement and is seeking advice from the reform council on streamlining funding and reporting arrangements. The Australian Bureau of Statistics is also leading work to develop a national measurement framework so the sector’s contribution can be more easily demonstrated.
From 1 July 2011, all Commonwealth, state and territory agencies accepted financial information in the Standard Chart of Accounts accounting categories from NFP organisations for all new government grants – a considerable achievement that shows the willingness of governments to work together to support the sector.
Photo 3.3 Staff members of the Office for the Not-for-Profit Sector
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e C o n o M i C D i v i s i o n
p e R F o R M A n C e R e p o R t
KPI: Satisfaction of other central agencies and portfolio departments, in regard to the cooperation and collaboration of the department in managing its responsibilities and input to the Budget process and coordination of the government’s key strategic priorities
Strong working relationships with other departments, in particular Treasury, Finance and the Department of Foreign Affairs and Trade, were maintained and built upon. These relationships were leveraged to manage responsibilities and inputs for the Budget process, G20, economic and financial sector developments and housing policy.
KPI: High level of satisfaction of the Prime Minister and of other agencies with the department’s contribution to COAG. Successful coordination and support for COAG jurisdictions and meetings, ensuring a well-coordinated delivery of the broad COAG agenda
The Prime Minister, the Prime Minister’s Office, other departments, and the states and territories have commented favourably on the COAG Unit’s contribution to the successful conduct of the February 2011 COAG meeting. At this meeting, a new streamlined agenda was adopted by COAG, built around five themes of strategic importance that lie at the intersection of jurisdictional responsibilities.
Economic Division advises the Prime Minister on a range of economic issues affecting Australia – policies relating to the Budget, the financial sector, the international economy, foreign investment, the G20 and COAG.
Domestic economyPM&C continued to play a key role in this area, providing regular advice and analysis to the Prime Minister on current economic conditions, the economic outlook, and the opportunities and challenges our economy faces.
We also provided advice on a wide range of domestic economic policy issues. Key areas of interest in 2010–11 were advice on Australia’s productivity performance, including supporting the Chair of the Productivity Committee of Cabinet, and workplace relations policy, notably the Social and Community Services sector pay equity case.
Advice was also provided to the Prime Minister on a range of housing market matters and we worked with Treasury and other jurisdictions on the COAG Housing Supply and Affordability Reform agenda. Working closely with the Office for Work and Family, we also advised on the Commonwealth’s housing policy more broadly, including in relation to the National Affordable Housing Agreement.
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Fiscal policyWorking with Treasury and Finance in the Budget Coordination Committee, we again worked to bring together the annual Budget and ensure effective coordination across all agencies. In collaboration with Treasury, Finance and other areas of PM&C, we:
• supported senior ministers’ consideration of taxation and expenditure policy proposals with financial implications, both during the Budget process and throughout the year
• provided policy advice to the Prime Minister on the fiscal outlook and associated fiscal strategy
• helped to assess new policy proposals against other competing government priorities
• provided guidance on Budget procefinancial information.
sses, accounting and the presentation of
Financial sectorThroughout the year, PM&C provided advice on a range of financial sector policies, including banking competition and sustainability, the introduction of financial market competition, the second phase of national consumer credit reforms and insurance policy. We also continued to provide policy advice on superannuation policy, the framework for executive remuneration, the establishment of a Centre for International Finance and Regulation and reforms in relation to the future of financial advice.
International economy and foreign investment policyPM&C continued to devote considerable effort to international economic developments. We regularly advised the Prime Minister on international economic developments and monitored international conditions, such as the ongoing European sovereign debt crisis, and the potential threat to Australia’s economic performance.
In relation to foreign investment and trade, PM&C provided economic policy advice on a range of issues, including:
• Australia’s international and trade policy objectives
• the potential economic impact of the Free Trade Agreements under negotiation, including with the Republic of Korea (ROK)
• significant Australian Export Finance and Insurance Corporation funding proposals
• foreign investment applications to the Foreign Investment Review Board
• Australia’s foreign investment policy.
G20PM&C supported Australia’s engagement in the G20 this year by providing extensive briefing and advice to the Prime Minister, including coordinating input and developing advice across government on policies being discussed within the forum. We also supported the Australian delegates attending the G20 Summit.
A number of important issues affecting the Australian and global economy were discussed at the Seoul G20 Summit in November 2010, and more will be discussed as part of the ambitious agenda for the Cannes G20 Summit in November 2011.
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We provided strategic economic policy advice and recommendations on Australia’s preferred position on core G20 agenda items including:
• the G20 framework for strong, sustainable and balanced growth
• reform of the international monetary system
• commodity price volatility
• agriculture and global food security
• employment and social protection
• G20 anti-corruption commitments
• global financial regulations
• trade and economic reform.
COAGThe Council of Australian Governments (COAG) is the peak intergovernmental forum in Australia, with membership comprising the Prime Minister, first ministers and the President of the Australian Local Government Association. PM&C’s COAG Unit supported a number of COAG-related activities, including:
• supporting one meeting of COAG and five senior officials meetings and videoconferences during 2010–11
• supporting the development of 12 National Partnership Agreements and other COAG related Agreements, including:
• the National Partnership Agreement on Improving Public Hospital Services
• the National Partnership Agreement for Natural Disaster Reconstruction and Recovery
• the National Partnership Agreement for Victorian Flood Reconstruction and Recovery
• overseeing and coordinating the development of terms of reference for 22 new ministerial councils and forums through the Ministerial Council Transition Working Group
• working with the Steering Committee for the Review of Government Services Provision, the COAG Reform Council and the Productivity Commission to monitor the COAG Reform Agenda
• producing the Boosting productivity through regulation and competition reform brochure, released at COAG’s meeting on 13 February 2011, that reported on COAG’s progress in delivering reforms under the National Partnership Agreement to Deliver a Seamless National Economy.
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C o A g R e F o R M C o u n C i l
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of the Prime Minister, premiers and chief ministers (COAG) with the quality of performance assessment and reporting provided by the COAG Reform Council. The COAG Reform Council is developing additional key performance indicators against which it will commence reporting to COAG in 2010
The COAG Reform Council conducts an annual survey to assess the level of satisfaction of governments with the council ’s work. The survey, conducted in May 2011, indicated that jurisdictions were very positive about the council ’s performance against its three high-level objectives focussed on delivering performance reporting, public accountability and support to COAG. A full report on the survey results will be published by the council in its Annual Progress Report in October 2011.
The COAG Reform Council was established by COAG to assist it to drive its reform agenda. Independent of individual governments, the council reports directly to COAG on reforms of national significance that require cooperative action by Australian governments.
During 2010–11, the council presented 13 reports to COAG, including reports on the six National Agreements and four reports on National Partnerships with reward payments. More information about the council’s work can be found on its website at www.coagreformcouncil.gov.au.
Photo 3.4 2011 PM&C graduates who will act as liaison officers at CHOGM 2011
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P R O F I L E
Thomas Cusbert – Reserve Bank of Australia secondee
Photo 3.5 Thomas Cusbert
While working for the Reserve Bank of Australia (RBA), I heard from a colleague that his secondment to PM&C had been rewarding, so I jumped at the chance to come to Canberra and work at the centre of government. I came to PM&C in February this year on a 12-month secondment – and I haven’t been disappointed.
As an adviser in the Economic Policy Branch, I get to be involved in a range of policy issues from a unique central agency perspective. The highlight of my time at PM&C so far has been working on a project looking at the impact of the high terms of trade and exchange rate on the economy.
Though PM&C is a demanding place to work, with a multitude of competing priorities, every day is interesting. The breadth of experience and expertise of my colleagues also means there’s always something new to learn.
The secondment has been a valuable experience, with a good exchange of skills and knowledge, and is an opportunity I will recommend to my RBA colleagues when I return.
Chap
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/ N
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inter
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(Pro
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Homeland and Border Security Division 47
National Security Chief Information Officer/ Cyber Policy Coordinator 51
Defence, Intelligence and Research Coordination Division 55
International Division 57
C h A P T E R F O U R
n A t i o n A l s e C u R i t y A n D i n t e R n A t i o n A l p o l i C y ( p R o g R A M 1 . 1 . 2 )
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The National Security and International Policy Group:
• provides advice on Australia’s foreign policy, trade and treaty matters, defence, intelligence, non-proliferation, counter-terrorism, law enforcement, border security and emergency management matters
• leads policy on and delivers security-related science and innovation programs
• plays a leadership role in the development of improved information management and integrated, whole-of-government cyber policy.
The group comprises four divisions:
• Homeland and Border Security Division
• National Security Chief Information Officer/Cyber Policy Coordinator
• Defence, Intelligence and Research Coordination Division
• International Division.
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of the Prime Minister and Parliamentary Secretary to the Prime Minister with advice, briefing and support in relation to international and national security priorities, policy, programs and strategy matters
Informal feedback from the Prime Minister, relevant ministers and senior officials indicated a high level of satisfaction with the timeliness and quality of the advice provided and the achievements of key tasks.
Highlights 2010–11This year, the National Security and International Policy Group was involved in advising the Prime Minister and the Cabinet and working with departments to progress a number of critical, high-profile policy matters, including:
• supporting the Prime Minister’s leadership on Afghanistan, including her visit to the country and her participation in the Australian Parliament’s first debate on Australia’s commitment to Afghanistan
• strengthening the United States (US) alliance through the Prime Minister’s visit to the US and Australia’s hosting of the Australia–US Ministerial consultations as well as building relationships with major partners in Asia by supporting the
C h A P T E R F O U RNational security and international policy (Program 1.1.2)
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Prime Minister’s visits to Japan, the Republic of Korea (ROK), the People’s Republic of China (PRC), Vietnam, Malaysia and Indonesia and the Prime Minister’s hosting of Malaysian Prime Minister Najib’s visit to Australia
• strengthening Australia’s multilateral engagement, including through supporting the Prime Minister’s efforts to confirm the East Asia Summit (EAS) as a predominant regional institution, to enhance links with Asia and Europe by attendance at the Asia-Europe Meeting (ASEM), to entrench the role of the G20 as the pre-eminent global economic forum and to energise our United Nations Security Council campaign
• supporting trans-Tasman cooperation and relations, including in relation to the Prime Minister’s visit to address the Parliament of New Zealand, the coordination of rescue and recovery assistance in the wake of the Christchurch earthquakes and the Pike River disasters and the Prime Minister’s hosting of Mr Key’s visit to Australia
• establishing the Office of the Cyber Policy Coordinator
• facilitating the appointment of the Independent National Security Legislation Monitor
• establishing an Independent Review of the Intelligence Community
• facilitating the delivery of the Parliament House Briefing Room as a state-of-the-art, 21st century ‘networked’ facility for crisis coordination
• completing implementation of the Homeland and Border Security Review (the Smith Review)
• coordinating the whole-of-government response to various natural disasters and the Christmas Island boat tragedy (SIEV 221)
• coordinating the delivery of the 2011 Triennial Review of the National Counter-Terrorism Arrangements on behalf of the National Counter-Terrorism Committee
• establishing a joint cyber research and development program with the US Department of Homeland Security and a Memorandum of Understanding on National Security and Counter-Terrorism Cooperative Science and Innovation with the United Kingdom Home Office.
h o M e l A n D A n D b o R D e R s e C u R i t y D i v i s i o nThe Homeland and Border Security Division advises the Prime Minister and the Cabinet on integrated, whole-of-government policy matters, priorities and strategy in the areas of strategic national security policy, critical infrastructure protection, non-proliferation, counter-terrorism, law enforcement, border security and emergency management issues.
We provided advice on and played a leadership role in coordinating the development of whole-of-government national security policies, responding to natural disasters in Australia and overseas, continuing efforts to manage our borders and further integrating of Australia’s national security community.
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p e R F o R M A n C e R e p o R t
KPI: Successful leadership and coordination of the defined national security community through implementation of the Homeland and Border Security Review, budget and performance oversight and the enhancement of information sharing, collaboration and cooperation
The Coordinated National Security Budget was again successful in delivering a comprehensive picture of national security spending and assisted the government to balance priorities. Feedback from ministers indicated that this evolving process is helpful.
The implementation of initiatives under the Homeland and Border Security Review (the Smith Review) was completed.
KPI: Effective whole-of-government responses to major national security related crises or emergencies
We played a key role in coordinating the whole-of-government effort to support and respond to crises such as the major natural disasters over summer and the Christmas Island boat tragedy (SIEV 221).
We successfully delivered the Parliament House Briefing Room in October 2010, which provides a state-of-the-art, 21st century ‘networked’ facility for crisis coordination, and managed a series of exercises with Emergency Management Australia to practise the whole-of-government crisis arrangements.
KPI: Successful development and whole-of-government integration of foreign and international security strategies as required by the government
We continued to support the government’s efforts to prevent and counter the spread of weapons of mass destruction. This included working in partnership with key agencies to progress legislation that will enable ratification of the Convention on Cluster Munitions, support Australia’s international engagement on non-proliferation and disarmament, and ensure strong domestic enforcement and regulatory arrangements.
This work will continue in 2011–12 as the government approaches international discussions on non-proliferation and disarmament and the second Nuclear Security Summit.
KPI: Satisfaction of the National Counter-Terrorism Committee with secretariat support provided to the committee
We supported the biannual meetings of the National Counter-Terrorism Committee (NCTC) in December 2010 and June 2011, an extraordinary strategic NCTC meeting in August 2010, two meetings of the NCTC’s Capability Steering Committee and four meetings of the Triennial Review Steering Committee. The secretariat supported the development and implementation of a risk informed approach to the capability development activities of the committee and coordinated a range of out-of-session NCTC business. Members informally advised of their high level of satisfaction with the support provided by the secretariat.
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Counter-terrorismWe facilitated the appointment of the Independent National Security Legislation Monitor, Mr Bret Walker SC, on 21 April 2011. Supported by PM&C, the monitor will review the operation, effectiveness and implications of Australia’s national security and counter-terrorism legislation on an ongoing basis. He will ensure that Australia’s counter-terrorism and national security laws contain appropriate safeguards for protecting individuals’ rights and consider whether particular laws remain necessary.
One of our core tasks is to support the National Counter-Terrorism Committee (NCTC). In early 2011 we successfully managed the 2011 Triennial Review of the National Counter-Terrorism Arrangements. The review, conducted by Mr Ric Smith AO PSM, was prescribed in the Inter-Governmental Agreement that established the NCTC in 2002. The department will continue to support the NCTC as it implements the review’s recommendations.
We also provided policy advice on and coordination of the department’s involvement with a range of counter-terrorism matters, including the coordination of the department’s involvement in counter-terrorism court cases, terrorism listings, international counter-terrorism engagement, operational priorities and responses to international incidents.
National security coordinationSupporting the Homeland and Border Security Policy Coordination Group (HPCG), chaired by the Deputy National Security Adviser, was another core task undertaken by the division. Meeting generally on a monthly basis, the HPCG considered a range of strategic security issues, one notable example being the out-of-session meetings to consider the Commonwealth’s response to the terrorist threat of concealed explosives in air cargo originating in North Africa.
PM&C also continued to manage the implementation of the recommendations of the 2008 review into homeland and border security by Mr Ric Smith AO PSM.
We also worked to deliver the second Coordinated National Security Budget in partnership with the Department of Finance and Deregulation (Finance), the Department of the Treasury (Treasury) and the broader national security community.
Crisis coordinationIn times of crisis, PM&C plays a key role in ensuring coordinated policy advice to government and effective coordination among agencies. During 2010–11, we helped to coordinate the provision of Commonwealth assistance to people affected by a number of major natural disasters, including the devastating floods in Queensland and Victoria.
We also supported International Division with the Australian Government’s response to the earthquakes in New Zealand and Japan, providing advice on the deployment of Australian assistance, such as search and rescue and medical teams, and on the ensuing nuclear crisis at Fukushima.
These events reinforced the importance of our work with the Department of Foreign Affairs and Trade, AusAID and the Attorney-General’s Department to develop initiatives for international emergency management cooperation. Australian proposals were adopted by the EAS in October 2010 and a framework for emergency cooperation between Australia and New Zealand was signed in February 2011.
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We supported the Deputy National Security Adviser in co-chairing the National Emergency Management Committee (NEMC), which oversaw the development of the National Strategy for Disaster Resilience. The strategy, which focuses on building disaster resilient communities, was agreed by COAG in February 2011 and we will continue to support the NEMC as it leads the implementation of the strategy.
To support the government’s ability to respond in a crisis, PM&C facilitated the delivery of the Parliament House Briefing Room, a state-of-the-art ‘networked’ facility, in October 2010. In consultation with Emergency Management Australia, we also managed a series of exercises that practised crisis coordination and decision-making processes. The exercise series was built on lessons learned during the August 2010 Mercury 10 exercise, in which PM&C also participated.
Border protection We successfully led the coordination of and provided advice on border protection policy issues, both onshore and offshore, primarily through the Border Protection Working Group (BPWG). We also provided secretariat support to the Border Protection Taskforce (BPT), chaired by the National Security Adviser.
PM&C played a key role in coordinating the whole-of-government response to the incident at Rocky Point, Christmas Island, on 15 December 2010, when a boat (SIEV 221) carrying asylum seekers ran aground. We were instrumental in supporting the Parliamentary Standing Group on the Christmas Island Boat Tragedy, a cross-party forum that drew on the agencies involved in the incident response in order to provide factual reports to parliamentarians. We also provided secretariat support to both the daily meetings of the BPT at the time of the incident and the officials level subgroup. This subgroup was tasked with monitoring and reporting on the implementation of recommendations from the Australian Customs and Border Protection Service’s SIEV 221 Internal Review and the Christmas Island Administrator’s Report on the SIEV 221 Incident referred by the Minister for Regional Australia, Regional Development and Local Government.
The BPWG was awarded a PM&C Australia Day Achievement Award in recognition of its outstanding commitment to Australia’s border protection.
Photo 4.1 Her Excellency Ms Quentin Bryce AC, Governor-General of the Commonwealth of Australia and the Honourable Julia Gillard MP, Prime Minister of Australia inspect damage done by the Christchurch earthquake during their visit to New Zealand for the National Christchurch Memorial Service in March 2011.
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n A t i o n A l s e C u R i t y C h i e F i n F o R M A t i o n o F F i C e R / C y b e R p o l i C y C o o R D i n A t o RSince being established in April 2009 to improve information sharing among the national security community, the National Security Chief Information Officer (NSCIO) has provided advice, coordination and leadership in the development and implementation of a secure, coordinated and effective national security information management environment.
In 2010, the national security community agreed to a united approach and journey of change by signing up to the National Security Information Environment Roadmap. The roadmap’s vision is to create a secure, coordinated and effective national security information management environment by 2020. In 2010–11, the national security community made positive progress in breaking down cultural, policy and technical barriers to information sharing to ensure the right people receive the right information at the right time to help them make the best possible decisions.
In September 2010, the government designated the NSCIO with the complementary responsibility of Cyber Policy Coordinator (CPC). The CPC:
• provides strategic leadership
• coordinates the whole-of-government approach to cyber policies and activities
• ensures a rational sequencing and coordinated approach to providing advice to government on cyber policy
• ensures international engagement on cyber issues is well coordinated, has maximum effect and is aligned with the Australian Government’s strategic objectives.
p e R F o R M A n C e R e p o R t
KPI: Successful leadership and coordination of cyber policy matters, including a whole-of-government approach to cyber policy across the full range of cyber threats
The successful establishment of the Cyber Policy Coordinator role within the department has resulted in greater coordination of the whole-of-government approach to cyber policies and activities, and a more coordinated approach to providing advice to government on cyber policy, including agreement by the government to develop a Cyber White Paper.
Our achievements in the Office of the NSCIO/CPC over the past year included:
• delivering key first-year milestones of the National Security Information Environment Roadmap: 2020 Vision
• improving the coordination and awareness of whole-of-government cyber policies.
Consistent with our strategic objectives of driving efficient information sharing through improved governance, strengthening trust, creating wide-ranging electronic links, building capabilities and enhancing collaboration, over the next year the Office of the NSCIO/CPC will work with partners to deliver the key second-year milestones in the roadmap and to continue to improve the coordination of whole-of-government cyber policies, including through the delivery of the Australian Government’s first Cyber White Paper.
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S P E C I A Lfeature
p r i m E m i n i s t E r ’ s v i s i t t o n o r t h a s i a , a p r i l 2 0 1 1As global economic and strategic weight shifts to the Asia-Pacific region, Australia’s interests in North Asia have never been greater. The success of the Prime Minister’s first official visit to Japan, the Republic of Korea (ROK) and the People’s Republic of China (PRC) depended in part on first-rate planning and policy support by PM&C.
The Prime Minister’s eight-day visit to Japan, the ROK and the PRC demonstrated the importance Australia attaches to these three bilateral relationships. As well as strengthening Australia’s ties at the leader level in a region where personal rapport is vital to doing business, uppermost on the Prime Minister’s agenda was strengthening Australia’s commercial partnerships with our top three export destinations. The Prime Minister also worked to enhance bilateral security relations and reinforce regional commitment to forums such as the G20, the East Asia Summit and APEC.
A trip of this length and importance poses a range of planning and policy challenges for the Ceremonial and Hospitality Branch (CERHOS) and International Division. Planning for the visit started months in advance, with meetings
convened across government and embassies consulted to confirm the availability of leaders in each country and lock in a wide-ranging program of events. PM&C’s speechwriters were involved, providing drafts of many of the speeches used by the Prime Minister during the trip.
Visits of this complexity are always buffeted by unforeseen events. No-one could have predicted the scale of the devastation wrought by the Japanese earthquake and tsunami in March. PM&C contributed to the Australian Government’s immediate disaster response, sending a Japanese-speaking officer from International Division to join the Australian search-and-rescue team and gaining the Prime Minister’s agreement to a $10 million donation to the Red Cross emergency appeal.
With the Japanese government still keen for the Prime Minister to visit, we began to look at how the visit could support Japan’s recovery while advancing the wider bilateral agenda. We worked with our embassy in Tokyo to organise a visit by the Prime Minister to Minami Sanriku, a town almost wiped out by the tsunami, and moved quickly to organise a goodwill package of Australian food and toys for the Prime Minister to deliver to an evacuation
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centre. The Prime Minister’s visit was warmly received as a demonstration of confidence in Japan’s resilience and in the enduring importance of our bilateral relationship.
The visit to the ROK was timed to coincide with the 60th anniversary of the Battle of Kapyong, a major Australian engagement in the Korean War. Joining a group of Australian war veterans at a solemn commemoration at the site of the battle, the Prime Minister highlighted Australia’s involvement in a conflict often termed the ‘forgotten war’. She was also the first Australian Prime Minister to observe Anzac Day in the ROK. The Prime Minister’s visit extended to the Demilitarized Zone, on the border between the Democratic People’s Republic of Korea (DPRK) and the ROK. Here, an unexpected face-to-face encounter with a DPRK border guard brought the growing tension on the Korean peninsula into stark relief. In the lead-up to the visit, PM&C worked with our embassy in Seoul to secure the ROK’s agreement to conclude free trade negotiations by the end of 2011 and to establish a regular ‘2+2’ meeting of foreign and defence ministers.
While the PRC is now Australia’s top trading partner, with two-way commerce exceeding $100 billion in 2010, there is much room for closer engagement between the two countries. Detailed preparation by International Division ensured the Prime Minister’s visit saw agreement on new steps to strengthen the relationship in the fields of trade and investment, science and technology, tourism, education, customs, resources and infrastructure. The Prime Minister canvassed bilateral, regional and global developments with Premier Wen and President Hu, delivered a major address at a bilateral trade forum, met CEOs of major Chinese investors and discussed strategic challenges with a group of Chinese think tanks. Finally, the Prime Minister rounded out her visit with a tour of the Forbidden City and a performance by Opera Australia to close the Year of Australian Culture in the PRC.
Though the Prime Minister’s North Asia visit was a complex undertaking on both the logistical and policy fronts, there is no doubt that it was an overwhelming success and serves as yet another example of the high-quality advice and support that PM&C provides to the Prime Minister.
Photo 4.2 During her visit in April 2011 to the tsunami affected area in Japan, the Honourable Julia Gillard MP, Prime Minister of Australia presents toy koalas to children living in the Minami Sanriku evacuation centre. (Courtesy of News Limited – Kym Smith)
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P R O F I L E
Dan Hallman – Canadian exchange
Photo 4.3 Dan Hallman
I am a Canadian public servant on exchange to PM&C for two years under the Canada–Australia Public Policy Initiative. CAPPI, as it is known, was announced in 2007 and is designed to allow public servants from Canadian and Australian central agencies to share best practice and to provide participants with professional and career development opportunities. There are four of us – two Canadians and two Australians – currently involved, including Russell Egan from PM&C currently working in Canada.
My home agency is the Privy Council Office (PCO), which is the Canadian equivalent of PM&C. I have spent much of my career specialising in security and intelligence issues. As well as working for the PCO, I have spent part of my career with the Canadian Department of Foreign Affairs and International Trade.
As the Senior Adviser in the Homeland and Border Security Division in PM&C, I was responsible for emergency management policy and assisted with the government’s response to the Queensland floods and Tropical Cyclone Yasi. I have since moved to the Office of the National Security Chief Information Officer/Cyber Policy Coordinator, where I am part of a multi-agency team developing a Cyber White Paper for Australia.
Australia and Canada have the Westminster system of government in common, but it’s interesting how it has
evolved in each country. While PM&C and PCO have the same broad mandate – to support the Prime Minister and the Cabinet – there are important differences. Working at PM&C is helping me to broaden my horizons and the experience here will be useful when I return to the Canadian public service.
Throughout my time here, I have been impressed by the calibre of the people, their energy and enthusiasm. Their dedication to public service and to providing the best possible advice to ministers is clearly evident in their work.
I am in Canberra with my spouse and our seven-year-old son, and we have taken the opportunity to see as much of Australia as possible. One of the legacies of our time here will be the lifetime of memories we will take with us back to Canada.
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D e F e n C e , i n t e l l i g e n C e A n D R e s e A R C h C o o R D i n A t i o n D i v i s i o nThe Defence, Intelligence and Research Coordination Division provides advice, coordination and leadership on integrated, whole-of-government policy matters, priorities and strategy in the areas of defence, intelligence coordination and cooperation matters, and national security, science and innovation policy and programs.
p e R F o R M A n C e R e p o R t
KPI: Successful development and management of domestic and international collaborative national security education and science and innovation research programs
Thirty-five ongoing domestic and international programs successfully delivered science and innovation outcomes of value to the national security community, addressing a diverse suite of enduring and emerging priority areas such as improvised explosives device detection; cyber; chemical, biological, and radiological counter-measures; biometrics; and improved intelligence and disaster responses.
Defence policyThe Defence Policy Branch continued to support the Prime Minister’s consideration of all defence issues – most significantly, those relating to Defence operations and major capability acquisitions. We also:
• prepared advice on major defence estate proposals and high-profile events, such as planning for the centenary of Anzac
• worked closely with other central agencies and the Department of Defence to ensure the quality and rigour of advice
• supported government consideration of decisions on defence, including the commitment of $3.2 billion to the acquisition of new naval combat helicopters and $1.45 billion to upgrade defence accommodation for single members of the Australian Defence Force.
Supporting PM&C’s participation in the Secretaries Committee on National Security (SCNS) and other strategic forums relating to defence remained a core function of the branch. These forums included the Strategic Policy Coordination Group (SPCG), chaired by the Deputy National Security Adviser, and the Defence Strategic Reform Advisory Board (DSRAB), of which the Secretary of PM&C is a member. Both the SPCG and the DSRAB seek to shape and inform the direction of important issues across government. The SPCG considers a range of defence and foreign policy issues, while the DSRAB provides high-level oversight of the $20 billion Defence Strategic Reform Program.
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We also led PM&C’s contribution to the consideration of complex issues involving a broad range of interests and agencies, including:
• space policy
• the establishment of the Australian Civilian Corps through the Australian Civilian Corps Act 2011
• the Review of the Woomera Prohibited Area where we contributed an officer to the review team and supported the PM&C co-chair of the review’s steering committee leading to release of the final report on 3 May 2011.
Intelligence policyPM&C played a key role in the development of the Inspector-General of Intelligence and Security Amendment Bill 2011, which was introduced into the parliament on 23 March 2011. The Bill seeks to strengthen the accountability and oversight framework that the Inspector-General of Intelligence and Security relies on to perform her function in overseeing the activities of the intelligence agencies. The amendments aim to provide further assurance about the legality and propriety of activities, as well as respect for human rights.
We also continued efforts to encourage further integration of foreign, security and law enforcement intelligence coordination, cooperation and activities through the National Intelligence Coordination Committee (NICC). The National Security Adviser chairs the NICC which, since its establishment in February 2009, has evolved to become the primary forum for the expanded national intelligence community’s structural development and coordination. The maturing and demonstrated agility and efficacy of the NICC as the principal decision-making body for the national intelligence community has addressed key issues raised in the 2008 Homeland and Border Security Review.
We have also provided support to the 2011 Independent Review of the Intelligence Community, which was announced by the Prime Minister on 23 December 2010 and commenced in late January 2011. The review, led jointly by Mr Robert Cornall AO and Associate Professor Rufus Black, has provided an independent examination of the work of the intelligence community to ensure its effectiveness in supporting the policy and operational needs of the government, both now and into the future.
National security science and technologyWe provided policy leadership, direction and coordination across the national security community aimed at maximising the benefit of science and innovation to national security capabilities. A key focus was implementing the National Security Science and Innovation Strategy, including:
• strengthening national security community science and innovation priorities
• supporting the inaugural National Security Science and Innovation Conference, held as part of the September 2010 Safeguarding Australia Conference
• releasing the first Online Directory of National Security Science and Innovation researchers
• conducting workshops, such as the National Security Science and Innovation Commercialisation and Capability Realisation workshop held in April 2011.
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Working closely with the Australian Research Council (ARC), we incorporated national security priorities into the ARC’s 2011 Future Fellowships program call for proposals. We also supported the National Security Science and Innovation Steering Committee, chaired by the Deputy National Security Adviser.
Existing high-impact science and innovation partnerships with the US were strengthened, including through a new joint cyber research and development program with the US Department of Homeland Security and biannual bilateral meetings with the US Technical Support Working Group. A framework Memorandum of Understanding on National Security and Counter-Terrorism Cooperative Science and Innovation was also signed in March 2011 with the United Kingdom Home Office by the Parliamentary Secretary to the Prime Minister and an annex agreed for joint projects on chemical–biological dispersion trials in civic infrastructure and mass transit systems.
i n t e R n A t i o n A l D i v i s i o nInternational Division supports the Prime Minister’s international agenda and engagement with world leaders and pursues Australia’s interests through the provision of foreign, trade and aid policy advice and coordination across government.
p e R F o R M A n C e R e p o R t
KPI: Advancement of the government’s international priorities that promote Australia’s security, prosperity, international profile and influence
Comprehensive strengthening of Australia’s bilateral and multilateral relationships was achieved over the reporting period.
Through 2010–11, we supported the Prime Minister’s participation in significant international summits, overseas visits and visits to Australia by world leaders.
A series of engagements with New Zealand was held in early 2011. These included:
• the Prime Minister’s visit to New Zealand in February 2011, where she became the first world leader to address the Parliament of New Zealand
• helping to coordinate the government’s response to the Christchurch earthquake
• the Prime Minister’s attendance at the Christchurch earthquake national memorial service in March 2011
• the visit to Canberra by Prime Minister John Key in June 2011, where he became the first New Zealand Prime Minister to address a joint sitting of the Australian Parliament.
The Prime Minister hosted a visit by Prime Minister Najib Razak in March 2011, the third visit by a Malaysian leader in 30 years. The highly successful visit resulted in an agreement to conclude Malaysia–Australia Free Trade Agreement negotiations within a year.
Australia’s contribution to Afghanistan continued to be one of the nation’s highest priorities and we briefed the Prime Minister regularly, including for her visit to Afghanistan in October 2010 and her opening speech in parliament’s comprehensive debate on the issue later that month.
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The Prime Minister made successful visits to Japan, the ROK and the PRC in April 2011. These visits:
• reinforced the trade and investment relationships with Australia’s top three export markets and allowed for high-level dialogue on the strategic and economic challenges of the Asia–Pacific region
• showed Australia’s support for Japan in the wake of the devastating earthquake and tsunami
• marked the 60th anniversary of one of Australia’s most significant military actions during the Korean War, the Battle of Kapyong
• enhanced Australia’s political and security engagement with the ROK and stepped up our cooperation on green growth initiatives
• expanded cooperation with the PRC on science and technology, tourism, education, customs, resources and infrastructure.
We played a central role in delivering ambitious, wide-ranging agendas for the Prime Minister’s involvement in five key summits in late 2010:
• the Asia–Europe Meeting
• the East Asia Summit
• the ASEAN–Australia Summit
• the G20 Leaders Summit
• the APEC Leaders Meeting.
Photo 4.4 The Honourable Julia Gillard MP, Prime Minister of Australia and Mr Tim Mathieson with Australian veterans who attended the memorial service commemorating the 60th anniversary of the Battle of Kapyong during their visit to the Republic of Korea in April 2011.
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At the East Asia Summit, whose membership represents half the world’s population and over a third of its GDP, the Prime Minister announced new initiatives to help strengthen regional cooperation on core political, economic and strategic interests. These included $32 million to combat emerging infectious diseases and pandemics in the Asia–Pacific and $10 million for regional disaster response initiatives. At the G20, leaders took further concrete steps to secure the global economic recovery, charting a course for the kind of reforms needed to prevent future crises.
The Prime Minister undertook a highly successful visit to the United States in March 2011, where she addressed Congress to mark the 60th anniversary of the Australia–US Alliance and had constructive discussions with President Obama, Secretary of State Hillary Rodham Clinton, other senior officials and business leaders. These talks focused on key global and regional challenges, including Afghanistan and stability in the Asia–Pacific region.
Photo 4.5 The Honourable Julia Gillard MP, Prime Minister of Australia, accompanied by His Excellency Mr Wen Jiabao, Premier of the State Council of the People’s Republic of China, inspects the honour guard at the Official Ceremonial Welcome for the Prime Minister’s visit to China in April 2011.
Photo 4.6 The Honourable Julia Gillard MP, Prime Minister of Australia, and Mr Jin Sato, Mayor of Minami Sanriku inspects the tsunami damage in the Minami Sanriku area during the visit to Japan in April 2011.
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P R O F I L E
Vanessa Goodall – AFP secondee
Photo 4.7 Vanessa Goodall
the strengthening of relationships with the Australian national security community.
The past 18 months here at PM&C have been an extraordinary journey, worthwhile on both a professional and personal level. My secondment has provided a unique opportunity to work with a range of researchers with a keen and often quirky interest in national security science and innovation.
One highlight that stands out is the International Counter Homemade Explosives workshop, hosted by the US Technical Support Working Group. As head of the Australian delegation to the workshop in 2010 and 2011, I provided presentations on the relevant Australian research and development program to 150 workshop participants from Australia, the US, the UK, Canada, Singapore and Israel. Before I return to the AFP, I will be working to deliver next year’s workshop, which will be held in Australia for the first time and co-hosted by PM&C and Defence.
I joined PM&C at the end of 2009 on a two-year secondment from the Australian Federal Police (AFP) Forensic and Data Centres Group to become a Senior Adviser in the National Security Science and Technology (NSST) Branch. The secondment of AFP staff to PM&C is an ongoing arrangement that allows the department to access forensics operations advice for both policy development and the science and technology programs it funds.
My role in PM&C is an exciting one. Getting to see my work directly translate into capability enhancements for the national security community, particularly in the area of explosives detection – a fast-moving and high-profile focus of national security both domestically and internationally – is particularly fulfilling. I’ve also had the opportunity to manage a number of novel projects covering a range of disciplines. One of these, the ‘Cybernose’ project, involves investigating whether insect and worm odourant receptors could be applied to detect trace explosives. This NSST project has delivered very promising results and has subsequently received funding from the Department of Defence’s Capability and Technology Demonstrator program.
NSST also manages three bilateral arrangements – two with the US and one with the UK – concerning national security research. This international engagement work has been both the most challenging and most rewarding part of my time at PM&C. I developed and implemented a number of high-impact collaborative projects with US counterparts and oversaw
Strategy and Delivery Division 63
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C h A P T E R F I V E
s t R A t e g i C p o l i C y A n D i M p l e M e n tA t i o n ( p R o g R A M 1 . 1 . 3 )
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The Strategic Policy and Implementation Group focuses on ensuring that forward-looking policy is prioritised in the face of the day-to-day demands of government, as well as overseeing the implementation and ongoing delivery of key programs, policies and initiatives. The group comprises two divisions:
• Strategy and Delivery Division
• Implementation Division.
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of the Prime Minister with the quality, accuracy and timeliness of advice and achievement of key tasks
Feedback from key stakeholders indicated that the work of the strategic policy and implementation area was valued and assisted management in the delivery of a broad range of initiatives. In relation to projects and reports, feedback from key stakeholders indicated they were well received and of high quality, reflecting a high level of satisfaction from the Prime Minister, the Secretary and the Executive of PM&C on quality, utility and timeliness indicators.
The Community Engagement team was assessed as having provided effective and timely organisation, briefing material and reporting of outcomes for each Community Cabinet meeting.
Highlights 2010–11This year, the Strategic Policy and Implementation Group was involved in advising the Prime Minister and the Cabinet and working with other departments on a range of issues, including:
• developing reforms to improve the delivery and implementation of government policies, programs and services
• providing advice on machinery of government changes following the 2010 federal election
• supporting four Community Cabinet meetings involving around 1 300 registered attendees
• providing seven reports on the implementation status of major government initiatives
C h A P T E R F I V EStrategic policy and implementation (Program 1.1.3)
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• providing input to the Council of Australian Governments reform agenda through two reports on the implementation status of major COAG initiatives and decisions
• undertaking initial work on developing and updating the resources available to Australian Public Service (APS) officers to assist the APS to effectively plan and implement government decisions and initiatives
• launching the APS Policy Implementation Network to drive implementation best practice
• communicating the initiatives set out in the government-endorsed Ahead of the game: Blueprint for the reform of Australian Government administration across the APS
• establishing a Strategic Policy Network to provide a forum for discussion and sharing of strategic policy better practice and lessons learned
• developing an online strategic policy toolkit to share the information and expertise gathered through the Strategic Policy Network.
s t R A t e g y A n D D e l i v e R y D i v i s i o nThe Strategy and Delivery Division identifies long-term strategic issues and directions and undertakes projects on complex public policy challenges. The division provides high-quality strategic policy and advice to the Prime Minister, the Cabinet, its committees and the Secretary by working closely with line divisions within PM&C and other agencies in the APS. We also collaborate with state public services, community and business groups, and other experts, including academics and think tanks.
This year we completed a range of strategic policy projects, leading to reports and recommendations presented to the Prime Minister, the Cabinet and the Secretary.
The division’s work program included significant elements of the incoming government brief and measures to improve policy implementation and delivery. Our work was strengthened through secondments from other divisions of PM&C, other departments, state public services and the private sector.
Incoming government briefFollowing the 2010 election, the division played a key role in developing PM&C’s incoming government brief, which outlined PM&C’s advice to the newly elected Prime Minister. The brief included advice on specific and immediate policy matters (prepared by line divisions within PM&C) and advice on long-term policy directions (coordinated by the division).
DeliveryThe division worked closely with the Department of Finance and Deregulation (Finance) to develop a package of measures to improve the delivery and implementation of government policies, programs and services.
The package seeks to improve:
• implementation planning and risk management in the policy development process
• Cabinet scrutiny of proposals
• capabilities and capability sharing across the APS.
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i M p l e M e n tA t i o n D i v i s i o nReflecting the Prime Minister’s focus on delivery and implementation, in May 2011 the Implementation Division was created, bringing together existing departmental expertise and resources to increase PM&C’s implementation planning capacity. The division consists of the Cabinet Implementation Unit (CIU) and the Australian Public Service (APS) Reform and Engagement Branch, which have in common a strong focus on improving the delivery of government policies and initiatives to the community.
Community engagement The main task of the Community Engagement team is to plan, coordinate and deliver a series of Community Cabinet meetings across Australia. Community Cabinet meetings provide opportunities for people to bring their concerns directly to the government. Each Community Cabinet meeting starts with pre-arranged one-on-one meetings with ministers, where individuals can pursue matters of interest to them. This is followed by a reception for members of the public to meet ministers informally prior to a public forum, where members of the public can ask questions of, or make statements to, the Prime Minister and other ministers.
In 2010–11, our community engagement role supported four Community Cabinet meetings:
• Redcliffe Peninsula, Queensland, on 2 December 2010
• Fremantle, Western Australia, on 30 March 2011
• Modbury Heights, South Australia, on 19 May 2011
• Palmerston, Northern Territory, on 29 June 2011.
Involving around 1 300 registered attendees, there was an average of 42 one-on-one meetings with ministers at each event and 15 questions asked at each public forum.
The team also provided support for the Prime Minister’s other engagement activities, including seven meetings of the Multi-Party Climate Change Committee and a refresh of the Prime Minister’s website.
Australian Public Service reform Following the government’s acceptance of all recommendations of Ahead of the game: Blueprint for the reform of Australian Government administration in May 2010, the APS Reform team led the implementation of a number of reforms and maintained oversight of the reform program. Highlights of progress on implementation of the recommendations is at Figure 5.1.
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Establishing a Strategic Policy Network, comprising Senior Executive Service-level practitioners, was an important activity for the team over the past year. The network meets every second month to discuss policy and methodological topics. The reform team also implemented an online strategic policy toolkit, www.strategicpolicy.govspace.gov.au, which is hosted on the Govspace platform. This is a publicly accessible online communications platform, managed by Finance, hosting blogs and other websites on behalf of government agencies. To further drive the Blueprint agenda, the reform team ran an intensive communications program to explain the reform program to APS agencies.
Cabinet Implementation UnitThe Cabinet Implementation Unit (CIU) assists the Prime Minister, the Cabinet Secretary, the Cabinet and the department’s Executive to manage and deliver the government’s strategic priorities. A significant focus of the unit over the past year has been on assisting the government to frame directions and priorities following the federal election and on increasing the impact of agreed initiatives across government. This includes:
• providing high-quality monitoring and reporting on the implementation of priorities
• working with the policy divisions and other APS departments to support effective policy delivery
• ensuring implementation risks and challenges are addressed early.
Nine reports on progress of implementation of the government’s key priorities were provided to the Prime Minister over the past year.
The unit also conducts a program of rapid reviews, or implementation assessments, on selected initiatives to provide more in-depth advice on the delivery of particular government priorities. These reviews are provided to the Prime Minister and conducted in close consultation with APS agencies and with input from a range of other stakeholders.
In addition, the CIU undertook a range of projects to more broadly support the government in planning and managing its key deliverables for the 2010–11 period.
The creation of the new Implementation Division within the Strategic Policy and Implementation Group will more closely link the unit with other areas of the department that have a focus on effective planning and delivery of government initiatives to the community. To support the department’s work in this area, the unit has allocated significant time and resources to developing and updating implementation planning resources for the use of all APS officers. The unit also continues to review Cabinet submissions to ensure a high standard of implementation material in these documents.
The unit’s capacity building work will be supported in 2011–12 by the recently established APS Policy Implementation Network, comprising senior officers from a range of departments. The network’s establishment is consistent with the recommendations of the 2010 report Ahead of the game: Blueprint for reform of Australian Government administration, bringing together expert APS implementers to share expertise and experience and facilitate improved implementation practice across departments.
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M e e t s t h e n e e d s o f c i t i z e n s
1 Delivering better services for citizens
1.1 Simplify Australian Government services for citizens• StreamlineandalignAustralianGovernmentservice
delivery.• Implementcitizenfocusedservicedeliverywithautomated
andsimplifiedbusinessprocesses.1.2 Develop better ways to deliver services through
the community and private sectors• Providegreaterflexibilitytorespondtolocalcircumstances
inservicedeliverythroughthecommunityandprivatesectors.
• Providesimplifiedfundingarrangements.• Developintegratedcasecoordinationforcitizensandtheir
familieswithcomplexneedsinparticularlocations.1.3 Deliver services in closer partnership with state,
territory and local governments • Partnerwithstate,territoryandlocalgovernmentsto
achievebetteroutcomesforcitizens.• Integratedeliveryteamsusingemployeesfrommultiple
AustralianGovernmentagenciesinparticularlocationsto enablemorejoinedupdelivery.
• Sharemoreinformationbetweenalllevelsofgovernment.• Makeinformationaccessibletocitizensonservices
providedbyalllevelsofgovernment.
� On 4 August 2011, the Secretaries Committee on Service Delivery considered the Scoping Study, first phase of the Technical Pilot and User Testing results (Department of Human Services) and have asked the Department of Finance and Deregulation (Finance) to proceed with the development of the Reliance Framework Business Case to be presented to government for consideration in the first half of 2012.
1.4 Reduce unnecessary business regulatory burden• ExtendtheStandardBusinessReportingfunctionality,
(dueforreleaseinJuly2010),toeasetheregulatoryburdenimposedbygovernmentonbusiness.
• Minimisereportingandcompliancerequirementsforbusinessandremoveunnecessaryorpoorlydesignedregulation.
� Standard Business Reporting has been developed by the Treasury, in partnership with the Australian Taxation Office, Australian Securities and Investment Commission, Australian Prudential Regulation Authority, Australian Bureau of Statistics, Department of Innovation, Industry, Science and Research and all state and territory government revenue offices.
� Options to extend the functionality of the program to other businesses are being explored.
2 Creating more open government
2.1 Enable citizens to collaborate with government in policy and service design
• Developandimplementnewapproachestocollaborationandconsultationwithcitizensonpolicyandservicedeliveryissues.
• Makepublicsectordataavailabletothewiderpublicina mannerconsistentwithprivacyprinciples.
� Declaration of Open Government in July 2010 which commits the government to creating a culture of public sector openness, transparency and engagement.
� Gov 2.0 Steering Group established in July 2010. � Increased use of blogging platform govspace, which now hosts
33 websites. � data.gov.au website providing access to 678 public sector data
sets released in March 2011. � Citizen engagement work ongoing.
2.2 Conduct a citizen survey• Conductasurveyofcitizens’viewsontheirsatisfaction
withgovernmentprograms,servicesandregulationtoinformgovernmentbusiness.
• Thesesurveysdesirablywouldbeexpandedtoincludealllevelsofgovernment.
� Progress on this item has been delayed in the current Budget context.
P r o v i d e s s t r o n g l e a d e r s h i P a n d s t r a t e g i c d i r e c t i o n
3 Enhancing policy capability
3.1 Strengthen strategic policy• Everydepartmenttostrengthenstrategicpolicyand
deliverycapability.• EstablishaStrategicPolicyNetworkandcreateapolicy
toolkittoassistthedevelopmentofstrategicpolicycapabilityacrosstheAustralianPublicService(APS).
• Establishcross-agencystrategicpolicyprojectteams.
� The Strategic Policy Network established in 2010 will continue to meet on a regular basis in 2011 to examine policy challenges across the APS.
� Strategic policy toolkit established in late 2010. � APS200 cross agency projects progressed in 2011.
3.2 Build partnerships with academia, research institutions and the community and private sectors
• Reinvigorateandestablishnewrelationshipswithacademiaandresearchinstitutions.
• Strengthenlinkswithprivatesectorexperts.
� Launch of the Australian National Institute for Public Policy and the HC Coombs Policy Forum in February 2011.
� Australian Centre on China in the World commenced operation in 2011 and advisory board appointed.
� Strong level of collaboration between the National Security College and national security agencies.
Figure 5.1Progressonimplementationofrecommendations
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3.3 Improve policy implementation• Provideclearguidanceandstandardstoagenciesonpolicy
implementation,particularlyintheareasofprogramandprojectmanagement.
• Increaseeverydepartment’scapacitytooverseeimplementationactivities.
• EstablishanAPS-wideforumtosharebestpracticeinregulation.
� Strengthened Cabinet process with greater focus on implementation and delivery of policies and programs.
� Increased central agency focus and advice on implementation and delivery through focused divisions in PM&C and Finance.
4 Reinvigorating strategic leadershipership
4.1 Revise and embed the APS Values• RevisetheAPSValuestoasmallersetofcorevaluesthatare
meaningful,memorableandeffectiveindrivingchange.• EmbedtherevisedvaluesintotheworkoftheAPS
throughseniorleadershipandlearninganddevelopmentandperformancemanagementframeworks.
� Two consultation rounds were held with a wide range of stakeholders within and outside the APS on what the revised APS Values might encompass and their structure.
� The revised APS Values have been provided to the government and work has begun on developing new provisions for the Public Service Act 1999.
4.2 Articulate the roles and responsibilities of Secretaries• AmendthePublic Service Act 1999torecognisetheroles
andresponsibilitiesofSecretariesandthePublicServiceCommissioner.
• Strengthentheperformanceframeworktoassessindividualandcollectiveperformanceagainsttheaboverolesandresponsibilities.
� Performance assessment arrangements will be trialled with a sample group of Secretaries.
4.3 Revise employment arrangements for Secretaries• Revisetheprocessesforappointingandterminating
Secretaries.• ReinforcethetermsofappointmentforSecretariesto
provideforafiveyearterm.
� Amendments to the Public Service Act 1999 for introduction to parliament in the 2011 Spring session to address this recommendation.
4.4 Strengthen leadership across the APS• EstablishanewAPSleadershipgroup,theSecretariesBoard.• Createaseniorleadershipforum,theAPS200.• Requireleadersatalllevelstoactasrolemodelsanddrive
reformsintheiragencies.
� Secretaries Board and APS 200 established and meeting regularly to monitor and drive the APS reform process.
4.5 Improve talent management across the APS• IntroduceAPS-widetalentmanagementprograms.• EstablishaLeadershipDevelopmentCentre.
� APSC Strategic Centre for Leadership, Learning and Development in the APS established in 2011.
� A pilot of the talent management system for Senior Executive Service (SES) Band 2 officers is scheduled to begin in September 2011.
5 Introducing a new APSC to drive change and provide strategic planning
5.1 New APSC with responsibilities to lead the APS• RepositiontheAustralianPublicServiceCommission
(APSC)todeliveronbroadreformgoalsandchargeitwithresponsibilityforleadingandimplementingproposedrecommendationsagreedbygovernment.
• TransferresponsibilityforAustralianGovernmentpoliciesforagreement-making,classificationstructures,APSpayandemploymentconditions,worklevelstandardsandworkplacerelationsadvicefromtheDepartmentofEducation,EmploymentandWorkplaceRelations(DEEWR)totheAPSC.
• RevisethePublic Service Act 1999toreflectreformstothe APSC.
� Responsibility for workplace relations matters for government employment transferred to the APSC from DEEWR in August 2010.
� The APSC has implemented a revised organisational structure that reflects a significantly enhanced focus on stakeholder and client engagement and aligns with strategic priorities in the areas of human capital, the Strategic Centre, agency capability, workplace frameworks, ethics and merit protection. A key enabling priority has been the recruitment of people, both from within the APS and from the private sector, with the necessary capabilities to deliver the challenges set by the Blueprint and the Secretaries Board.
� Amendments to the Public Service Act 1999 for introduction to parliament in the 2011 Spring session to reflect the reforms and changes to the APSC’s role.
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6 Clarifying and aligning employment conditions
6.1 Ensure employment bargaining arrangements support one APS
• StrengthentheAustralianGovernmentEmploymentBargainingFrameworktoensurethatitsupportsoneAPS.
• IdentifyareaswhereafurtherstreamliningofexistingAPSbargainingarrangementswouldbettersupportoneAPS.
• ExaminetheextenttowhichexistingAPSclassificationarrangementsandworklevelstandardscontinuetomeettheneedsofAPSagenciesandemployees.
• ProvideAPSemployeeswithappropriatecareerpaths.
� Strengthened APS-wide bargaining framework released by the APSC in January 2011.
� Anticipated that by December 2011 virtually all agencies with agreements which reached their nominal expiry on 30 June 2011 will have replacement agreements.
6.2 Assess the size and role of the SES• Completeareviewofthesize,capabilityandworklevel
standardsforeachleveloftheSES,beforeanynewnetgrowthintheSESoccurs.
� Samples of Senior Executive positions have been assessed and found to be suitable.
7 Strengthening the workforce
7.1 Coordinate workforce planning• EstablishanAPS-wideworkforceplanningframework.• DevelopaHumanCapitalPriorityPlanthatinitially
prioritisesthereformsproposedinthisBlueprintandovertimewillidentifyemergingsystemicworkforceissues.
� APS Workforce Planning Working Group established. � Workforce Planning Community of Practice Govdex site
developed to share better practice. � APSC has aligned 2010/2011 State of the Service survey to
support the collective human capital agenda.
7.2 Streamline recruitment and improve induction• Developbestpracticestandardsforrecruitmentthat
upholdthemeritprinciple.• Establishregularlabouranddemographicanalysesin
relationtoAPSemployment.• Coordinateinitialgraduateandtraineerecruitment
applicationprocesses.• Utilisenewrecruitmentprocesses,whereappropriate,for
SESBand3officers.• ImplementspecificmechanismstoincreaseAPSdiversity.
� Secretaries Board to consider an approach to whole-of-government online graduate portal which provides greater visibility of APS job opportunities and career pathways.
� Amendments to the Commissioner’s Directions are being prepared for readiness to follow the amendments to the Public Service Act 1999.
� Updated recruitment guidelines and toolkit provide practical tools and templates to assist agencies with obtaining greater efficiencies.
7.3 Expand and strengthen learning and development• Identifycoreservice-widedevelopmentneeds.• Endorseaprincipleofannualprofessionaldevelopment
forallAPSemployees.• Delivercorelearninganddevelopmentprogramsthatare
centrallyprocured.• Evaluatearangeofcoursesandnegotiatethebestratesfor
theAPS.
� Strategic Centre for Leadership, Learning and Development has been established in the APSC. An APS Leadership Development Strategy has been developed and endorsed by the Centre’s Advisory Board.
7.4 Strengthen the performance framework• Introduceaperformanceframeworkthatfostersahigh
performanceculture.• ProvideperformancemanagementtrainingforallSES
employeesandmanagers.• DevelopcommonAPS-wideguidelinesfordealingwith
underperformance.
� Proposal to establish a research partnership with high profile academics from across three universities to develop the evidence base for supporting principles and practices to support the APS to better manage performance.
� Opportunities for APS agencies to contribute to the project identified.
continued…
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7.5 Encouraging employees to expand their career experience• DevelopmobilitymechanismsthatencouragemoreAPS
employeestoobtaindiversecareerexperiences.• Reinvigoratethemechanismforadvertisingoftemporary
nonongoingpositions(forexample,expressionsofinterest).• Workwithstate,territoryandlocalgovernmentsto
identifyandaddressthebarrierstojurisdictionalmobility,includingtherecognitionofstate,territoryandlocalgovernmentpublicserviceentitlementsandviceversa.
� Queensland University of Technology engaged to report on current practices to inform the development of options.
� APS agencies reporting to the APSC on current mobility initiatives.
� Consultations have commenced with professional associations on temporary movement of employees between the public and private sectors.
� Initial contact made with central public service agencies in states and territories to develop a common framework for mobility between jurisdictions.
o P e r a t e s e f f i c i e n t ly a n d a t a c o n s i s t e n t ly h i g h s ta n d a r d
8 Ensuring agency agility, capability and effectiveness
8.1 Conduct agency capability reviews • Conductperiodicexternalreviewsofagencies’institutional
capabilities,coveringstrategy,leadership,workforcecapability,deliveryandorganisationaleffectiveness.
� The concept of pilot capability reviews of APS agencies is currently being tested.
8.2 Introduce shared outcomes across portfolios• Introducesharedcrossportfoliooutcomesinpriorityareas
wheremorethanoneportfolioisresponsibleforachievinggovernmentoutcomes.
� A paper on the proposed methodology and approach to shared cross-portfolio outcomes has been considered by the Secretaries Board in August 2011.
8.3 Reduce internal red tape to promote agility• Streamlineadministrativeandlegislativecompliance
in areassuchasfinancialmanagementandcorporate/humanresources.
• Developmechanismsthatensureredtapeisminimised.
� The major elements of red tape reduction are being taken forward as part of the wider Better Government agenda. A paper identifying any remaining issues in red tape reduction will be prepared for Secretaries Board consideration.
9 Improving agency efficiency
9.1 Review the measures of agency efficiency• Reviewthecurrentmechanismsusedtodriveagencyefficiency.
� Review completed and new portfolio flexibility arrangements to reallocate the impacts of the Efficiency Dividend have been implemented.
9.2 Strengthen the governance framework• Simplifygovernancestructuresfornewandexisting
entitiesbyconsolidatingthecategoriesofentitiesthatcanbecreated.
• AmendtheGovernance arrangements for Australian government bodies(governanceguide)toensure:• cleargovernancearrangementsforinter-jurisdictional
entities• APSemployeesareclearabouttheirresponsibilities
whenappointedtocompanyboards• allnewandexistingagenciesarefit-for-purpose.
� Updated governance policy completed for consideration by the Minister for Finance and Deregulation.
9.3 Small agencies to improve the efficiency of their corporate functions
• Allportfolioagenciesshouldreviewthemostefficientwaytoconducttheircorporatefunctions.
• Newsmallagenciesshouldobtaintheircorporateservicesfromaparentagencyorsharedserviceprovider.
� Newly established small agencies are required to obtain their corporate services from their parent agency or another existing shared service provider within the government unless there are demonstrable net benefits of doing otherwise.
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P R O F I L E
Luke Bo’sherI was fortunate enough to be able to spend three months working at the Young Foundation in London as part of the Strategic Policy and Implementation Group’s strategy to build capability in innovative advice to the government on long-term strategic challenges.
Based in London, the Young Foundation is a centre for social innovation that aims to bring together insights, innovation and entrepreneurship to address social needs. It was selected as a secondment partner because of the innovative approach it takes in its work, particularly in education and health care.
While working with the Young Foundation, I was involved in a range of projects, including establishing a training institution called ‘The U’, which trains citizens in socially useful skills such as first aid, conflict resolution and sustainable living, and developing new financing tools for social interventions, such as social impact bonds in the areas of youth disengagement and adult imprisonment.
The secondment was an incredibly valuable opportunity that will directly contribute to the work of the Strategic Policy and Implementation Group in the future. Spending time at the Young Foundation allowed me to work on some of the more innovative and cutting-edge work being undertaken
in the United Kingdom (UK). The UK and Australia share many of the same problems and there are definitely some lessons we can learn from the different directions the UK has taken on social policy issues.
Photo 5.1 Luke Bo’sher
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Cabinet Division 82
C h A P T E R S I X
s u p p o R t s e R v i C e s F o R g o v e R n M e n t o p e R A t i o n s ( p R o g R A M 1 . 1 . 4 )
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Support services for government operations are provided by Government Division, Ministerial Support Division and Cabinet Division within the Governance Group.
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of the Prime Minister, the Cabinet Secretary, the Parliamentary Business Committee of Cabinet and the Parliamentary Secretary with the timeliness and quality of advice and support
Feedback indicated that the range of services, reports, advice and products provided during the year was well received by all stakeholders.
Government Division, in supporting legislative processes, met agreed timelines for providing information to the parliament and the public for lists of unproclaimed legislation and legislation proposed for introduction in the upcoming sittings of the parliament, and for a comprehensive Cabinet memorandum for each Parliamentary Business Committee meeting.
Th e Ministerial Support Division received positive feedback on the quality and timeliness of draft speeches, coordination of policy advice and our assessment and provision of feedback on the quality of briefs to the Prime Minister.
Th e Cabinet Division serviced the Cabinet and the Federal Executive Council and was recognised by the Expenditure Review Committee for outstanding Cabinet liaison support during the 2011–12 Budget process.
KPI: High level of satisfaction of other stakeholders with liaison, advice and assistance
Feedback indicated that the range of services, reports, advice and products provided during the year was well received by key stakeholders.
Government Division maintained regular communications and good relations with a range of stakeholders, including relevant portfolio agencies and other government departments and agencies.
Cabinet Division indicated a high level of satisfaction from other stakeholders on the advice, support and training to government departments and agencies in relation to the operation of the Cabinet and committees and on the reinvigoration of the Cabinet network (CABNET) training program for Cabinet liaison offi cers at Parliament House. In addition, the Cabinet Secretariat provided expert administrative support for the Multi-Party Climate Change Committee.
C h A P T E R S I XSupport services for government operations (Program 1.1.4)
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Highlights 2010–11Th is year the department supported the Prime Minister, the Cabinet and portfolio ministers by:
• receiving, registering, tracking and analysing 158 000 items of incoming ministerial correspondence and 2 421 departmental briefi ngs and coordinating all briefi ng material for the Prime Minister and portfolio ministers through a year of change
• providing advice on arrangements in relation to the 2010 election and preparing associated incoming government briefs
• providing advice to the Prime Minister, departments and agencies on caretaker conventions
• supporting 164 meetings of the Cabinet, the ministry and nine Cabinet Committees, 12 meetings of the Secretaries Committee on National Security and meetings of the Multi-Party Climate Change Committee
• establishing the Offi ce of the Australian Information Commissioner
• supporting the National Disaster Recovery Committee in responding to a series of major crises
• implementing the government’s response to the Australian Law Reform Commission’s review of privacy
• fi nalising the Remuneration and Other Legislation Amendment Bill 2011
• issuing 13 legislation circulars to departments and agencies and preparing 150 legislation submissions to the Parliamentary Secretary to the Prime Minister
• coordinating processing and advising decision-makers for freedom of information (FOI) applications to the department and portfolio ministers
• developing a Public Interest Disclosure Bill on whistleblower protection in the Commonwealth public sector
• establishing the Australian General ServicPolice Service Medal
• preparing speeches for a range of events, ito the United States and North Asia.
e Medal for Korea and the National
ncluding for the Prime Minister’s visits
g o v e R n M e n t D i v i s i o nGovernment Division is responsible for advice and support on machinery of government and has a wider leadership role in providing advice on public sector governance across the APS. We provided advice on the government’s legislation program; parliamentary matters; ministerial arrangements; public service matters; legal and constitutional matters; legislation administered by the portfolio ministers, including the Auditor-General, Archives, Privacy and Freedom of Information Acts; royal commissions and other inquiries; and Australian honours and symbols policy. In delivering these services, we maintained good working relationships and worked closely with our ministers, relevant portfolio agencies and other agencies across Australia.
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2010 federal electionOn 17 July 2010, the Prime Minister, the Hon Julia Gillard MP, announced that the Governor-General had agreed to an election for the House of Representatives and half the Senate to be held on 21 August 2010. Th e House was dissolved on 19 July 2010. Consistent with long-standing practice and our roles, the department provided advice to the Prime Minister and to other departments and agencies about the caretaker conventions and issued the Guidelines for post-election consultations with independent members during the extended caretaker period that followed the election.
On 7 September 2011 the Prime Minister advised the Governor-General that she was able to form a government. Government Division was subsequently involved in a range of tasks to support the incoming government, including:
• advice and support in relation to machinery of government changes
• arrangements for swearing in the new ministry
• preparation of a new Administrative Arrangements Order.
Parliamentary and government issuesIn 2010–11 we provided wide-ranging guidance to departments on the development and processing of draft legislation and prepared comprehensive advice within approved deadlines for each of the meetings of the Parliamentary Business Committee of Cabinet. We also met agreed deadlines for the provision of information to the parliament and the public in relation to legislation proposed for introduction in the forthcoming parliamentary sittings.
Following the transfer of the Remuneration Tribunal to the Prime Minister’s portfolio and the government’s consideration of the report of the Review of Parliamentary Entitlements, we assisted in the preparation of draft legislation to implement the government’s decisions. Th e Remuneration and Other Legislation Amendment Act 2011 provided the Remuneration Tribunal with responsibility for determining parliamentarians ’ base salary and transferred responsibility for determining the remuneration of Secretaries and other offi ce holders under the Public Service Act 1999 to the Remuneration Tribunal.
In our role coordinating the government’s legislative program, we issued 13 legislation circulars to departments and agencies about legislation and parliamentary matters and prepared 150 legislation submissions to the Parliamentary Secretary to the Prime Minister.
Legal policy issuesWe contributed to whole-of-government advice to the Prime Minister and others on a broad range of legal policies and issues, including human rights, anti-discrimination, access to justice, legal services and family violence matters. In coordinating and progressing the portfolio’s legislation program, we also prepared advice for portfolio ministers.
We coordinated processing of FOI applications to the department and portfolio ministers and provided advice to FOI decision-makers for these applications. We developed PM&C’s entry to the Information Publication Scheme, which commenced on 1 May 2011.
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We also worked extensively on the development of legislation on public interest disclosures in the Commonwealth public sector, announced by the government in March 2010. Th is included working with the Offi ce of Parliamentary Counsel and providing advice to the Special Minister of State for the Public Service and Integrity.
Involvement in legal proceedings We had carriage of or contributed to FOI-related proceedings including:
• In August 2010, in the matter of Secretary, Department of the Prime Minister and Cabinet v Haneef [2010] FCA 928, the Federal Court of Australia upheld an appeal by the department against two Administrative Appeals Tribunal (AAT) decisions but dismissed a related application for review by the department. Th e matter remitted to the AAT and questions of costs in the Federal Court were both subsequently discontinued without hearing.
• In June 2011, the AAT heard an appeal by Philip Morris Ltd against a decision by an FOI decision-maker in the Prime Minister’s Offi ce on a request for documents relating to plain packaging of tobacco. Th e AAT’s decision was reserved. Philip Morris Ltd also applied to the AAT during the year for review of a deemed refusal by the department, which was remitted by the AAT to the department for reconsideration; that matter had not been resolved at the end of the reporting year.
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of the Cabinet Secretary with advice and support for electoral reform initiatives, and for reforms to the Freedom of Information Act 1982 and the Privacy Act 1988
We continued to support the Minister for Privacy and Freedom of Information in implementing the FOI reforms and developing the privacy reforms. In addition, the Electoral Reform Taskforce, comprising offi cials from relevant agencies, was re-established to advise the Special Minister of State.
Privacy reformWe supported the Minister for Privacy and Freedom of Information on privacy reforms to implement the government’s response to the Australian Law Reform Commission’s review of privacy. An exposure draft bill and companion guide of new credit reporting provisions were provided to the Senate Committee on Finance and Public Administration on 31 January 2011. Th e committee released its report on the Australian Privacy Principles on 15 June 2011.
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International engagement on privacy matters Th e department chairs the work of the Asia-Pacifi c Economic Cooperation (APEC) Data Privacy Sub Group, which is working on the implementation of the APEC Data Privacy Pathfi nder, a mechanism to develop and road-test elements of a cross-border privacy rules system. An essential element of implementing the Pathfi nder is creating eff ective cross-border privacy enforcement mechanisms. To achieve this goal, the Sub Group has developed the APEC Cross-Border Privacy Enforcement Arrangement, which commenced operation on 16 July 2010. While non-binding, it is the fi rst international multilateral framework for privacy enforcement authorities to share information and provide assistance in enforcing privacy law.
We participated actively on the Australian delegation negotiating a Passenger Name Records treaty with the European Union, continued to work with the OECD Working Party on Information Security and Privacy on data privacy, and engaged with other relevant international bodies, including the Asian Pacifi c Privacy Authorities forum.
Freedom of information issuesFollowing the passage of the FOI reforms during 2010, we continued to provide FOI policy advice to all agencies and worked closely with the Offi ce of the Australian Information Commissioner in establishing that offi ce.
s o C i A l s n A p s h o t
Photo 6.1 PM&C’s market day
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S P E C I A Lfeature
E s ta B l i s h m E n t o f t h E a u s t r a l i a n i n f o r m a t i o n c o m m i s s i o n E rTh e Australian Government’s reforms to freedom of information (FOI) laws, which came into eff ect on 1 November 2010, established the Offi ce of the Australian Information Commissioner (OAIC), a fundamental part of the reform agenda. Th e OAIC brings together the functions of informationpolicy, privacy protection and freedom of information for the fi rst time, ensuring the development of consistent, workable information policy across all Australian Government agencies.
Th e OAIC includes two new statutory offi cers – the Australian Information Commissioner, Professor John McMillan AO, and the Freedom of Information Commissioner, Dr James Popple – and the Privacy Commissioner, Mr Timothy Pilgrim, joined OAIC when the former Offi ce of the Privacy Commissioner became part of the new offi ce on 1 November 2010.
Professor McMillan, who was appointed as Australian Information Commissioner Designate in March 2010, headed a small taskforce, supported by offi cers from Government Division, to establish the OAIC. Th is included preparing the draft guidelines required under the FOI
reforms, developing a case management system, designing a website, assessing options for accommodation for the new offi ce and undertaking initial recruitment.
Th e fi nal key elements of the FOI reforms, the Information Publication Scheme (IPS) and the disclosure log
provision, commenced on 1 May 2011.
Th e IPS requires agencies to publish information publication plans, specifi es categories of information that must be published and provides a vehicle to proactively publish other government information.
Th e disclosure log provision requires agencies and ministers to publish information disclosed in response to an FOI request unless that information is exempt, as in the case of personal information.
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Australian honours systemDuring the year we provided advice to portfolio ministers on the operation of Australia’s honours system and supported the department’s representatives on the Council for the Order of Australia and the Australian Bravery Decorations Council. We also provided secretariat services to the committees that considered honours to public servants, such as the Public Service Medal.
Th e Australian General Service Medal for Korea and the National Police Service Medal received royal approval this year. Th e department received in-principle approval to develop a proposal for a new National Emergency Medal to recognise those who have provided sustained or signifi cant service to others in a national emergency.
We administered nominations for non-Australians for honorary awards in the General Division of the Order of Australia, and the Governor-General made 17 honorary appointments during the year. Australians are also recognised for their contributions to other nations, and in 2010–11 we processed 7 918 proposals by foreign governments to grant Australians foreign honours.
We promoted awareness of the honours system, in close collaboration with the Honours and Awards Secretariat at Government House. In 2010–11 the Australian honours website www.itsanhonour.gov.au was accessed by some 364 757 new visitors, the It’s an Honour exhibition travelled throughout South Australia and to Th e Gold Museum in Ballarat, Victoria, and the revised Australian Honours medal poster was distributed to all senators and members. We shared and displayed information about the Australian honours system at the Volunteers Australia Annual Conference, at the National Emergency Management Volunteers Summit and during Queensland Disaster Heroes Week in June 2011.
We also arranged 12 267 congratulatory messages from the Prime Minister to Australians celebrating signifi cant birthdays and wedding anniversaries.
National symbols We also provided information and advice about national symbols, including the Australian national fl ag and the Australian national anthem, including through the website www.itsanhonour.gov.au. We distributed advice on special occasions to fl y the Australian national fl ag, the Australian Aboriginal fl ag and the Torres Strait Islander fl ag through the Commonwealth Flag Network. We also provided advice on appropriate use of the Commonwealth coat of arms, including approval for its use in educational material or for teams representing Australia in international competitions, and to government agencies regarding the Australian Government Branding Design Guidelines.
Administered item: National Australia Day Council
p e R F o R M A n C e R e p o R t
KPI: NADC grant administered in compliance with the reporting mechanisms, objectives and other provisions of the grant funding deed
In 2010–11 the government provided $3.38 million to the National Australia Day Council (NADC), administered through PM&C. NADC performed eff ectively during the year and provided acceptable fi nancial, audit and progress reports on its funded activities within the timeframes stipulated in the deed.
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Th e National Australia Day Council is a Commonwealth-owned, not-for-profi t company within the Prime Minister’s portfolio, reporting under the provisions of the Commonwealth Authorities and Companies Act 1997. NADC promotes the meaning of, and participation in, Australia Day and the Australian of the Year Awards. More information about the NADC can be found on its website at www.australiaday.gov.au.
M i n i s t e R i A l s u p p o R t D i v i s i o nTh e Ministerial Support Division (MSD) coordinated the delivery of departmental services to the Prime Minister and other portfolio ministers. It also provided high-level support for major events, such as visits by heads of state, ceremonies and state occasions, and coordinated the logistical arrangements for the Prime Minister’s overseas visits; support for the operations of the Prime Minister’s offi cial residences; and services to former Governors-General under program 1.2 (see page 92). Th e division also supported the department’s Audit Committee and managed essential corporate governance activities (see page 134).
During 2010–11 MSD provided a high level of support across all areas of its operations, including:
• receiving, registering, tracking and analysing 158 000 items of incoming ministerial correspondence and 2 421 departmental briefi ngs, and coordinating briefi ng material for the Prime Minister and our portfolio ministers for parliamentary question time and Senate Estimates
• advising the senior management team and ministerial offi ces on the department’s ministerial workfl ow
• providing the critical link between the department and ministerial offi ces through our departmental liaison offi cers
• providing home department support services to the Prime Minister’s Offi ce and some of the other portfolio ministers’ offi ces
• providing editorial guidance on briefs and correspondence
• drafting speeches for the Prime Minister and other portfolio ministers
• assisting with internal communications, such as coordinating the department’s weekly internal newsletter, News@One National, media releases and online communications.
Th e volume of items managed during the year by MSD is provided at Figure 6.1. In the lead-up to the 2010 federal election, the division coordinated the preparation of the incoming government brief for the Prime Minister. Following the election, MSD worked to establish productive working arrangements between the department, the Prime Minister’s Offi ce and other ministerial offi ces and assisted with the integration of the new elements transferred to PM&C in the machinery of government changes in September 2010.
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S P E C I A Lfeature
m i n i s t E r i a l c o r r E s p o n d E n c E u n i t
Dear Prime Minister…: Th e Ministerial Correspondence Unit
As the department celebrates its centenary in 2011, it is interesting to note that its origins can be traced back to managing the correspondence for the then Prime Minister, Andrew Fisher. A hundred years on, the Ministerial Correspondence Unit (MCU) is still going strong.
Th e MCU in the Ministerial Support Division performs a range of functions surrounding the management and processing of correspondence. Greig Cummings manages the MCU, making sure that each of the 50 000 letters and 100 000 emails received each year are dealt with and that every one of the approximately 2 400 briefs get to the Prime Minister and portfolio ministers.
Th e Analysis and Allocation Team – Patricia (Pat) Cole, Yvonne Granfi eld, Sam Gounder and Luke Nasir – assess which part of the department or which minister should handle each piece
of correspondence. Pat is one of the longest serving and most experienced readers, handling most of the VIP and organisational correspondence. If there’s a letter from President Obama or Prime Minister Cameron, Pat’s onto it. Yvonne, also a long-time correspondence reader, has a fondness for children’s correspondence. ‘It’s great to see kids getting engaged and writing in to the Prime Minister with their ideas for Australia.’
Th e Registration and Logistics team – Raymond Jones, Lynsey Richardson, Danielle Andrew, Patrick Ingle and Elliott Armstrong – receives all the mail, registers all correspondence and handles its movement between the department, ministers’ offi ces and the eventual recipients. Th eir favourite part of the job? Th e team is in agreement: ‘Getting to visit the Prime Minister’s Offi ce several times a day is pretty special.’
Here’s to another hundred years, Ministerial Correspondence Unit!
Photo 6.2 Ministerial Correspondence Unit team
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Figure 6.1 Summary of items of correspondence processed
Correspondence processed 2006–07 2007–08 2008–09 2009–10 2010–11
Items 190 000 220 000 165 000 148 000 158 000
Figure 6.2 Performance relating to parliamentary questions
Questions on notice 2006–07 2007–08 2008–09 2009–10 2010–11
Parliamentary questions handled
Questions on hand at 1 July 124 78 18 17 9
New questions received 149 58 83
Questions transferred to other ministers 21 10 12
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Responses lodged 174 33 71 59 28
Withdrawn 0 0 1 1 1
Lapsed2 0 75 0
Average days taken to respond3
House of Representatives questions 182 161 92
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Senate questions 152 70 99 76 61
Notes:1 Questions directed to PM&C portfolio ministers are excluded from these departmental fi gures where the
question relates to a matter about support arrangements for an offi ce that is managed by another agency or the matter is managed by a portfolio agency.
2 Questions unanswered at the time of an election lapse.3 Th ese fi gures are average number of days, for relevant responses, between questions being asked and
responses being lodged.
Figure 6.3 Numbers of Senate estimates questions on notice
Estimate title1 2007 2008 2009 2010 2011
AE – additional estimates (February) 57 102 155 193 56
BE – budget estimates (May) 93 282 119 95 116
SBE – supplementary budget estimates (October) n/a2 74 106 132 n/a
Notes:1 Questions are excluded from these departmental fi gures where the response is managed by a separate
portfolio agency.2 SBE not held due to 2007 federal election.
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p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of key stakeholders and achievement of key tasks delivered to agreed timeframes for the meetings of the Cabinet, Federal Executive Council and sub-committees of the Cabinet, including the Secretaries Committee on National Security
Th e Prime Minister, the Cabinet Secretary, and the Offi cial Secretary to the Governor-General each expressed satisfaction with the support and responsiveness of the Cabinet Secretariat in servicing the Cabinet and the Federal Executive Council during 2010–11. Informal feedback from other stakeholders was also favourable.
Th e responsiveness of administrative support for the Governor-General was the highest on recent record, with 97.3 per cent of papers available at least two days prior to the meeting of the Federal Executive Council. Cabinet and Cabinet committee meetings convened over consecutive days maximised the availability of ministers for their regular work commitments, but often required an additional day to fi nalise minutes. Th is resulted in the lower fi gure in the period for the release of minutes (see Figure 6.4).
C A b i n e t D i v i s i o nDuring 2010–11 we provided a high level of support to the Cabinet, the ministry and nine Cabinet committees, and for 164 meetings, four of which were held interstate. We also supported 12 meetings of the Secretaries Committee on National Security and provided secretariat support for the Multi-Party Climate Change Committee.
Th e Cabinet Secretariat also provided a high level of support for Her Excellency the Governor-General of Australia and the Federal Executive Council. Th e level of this support was the highest on recent record, with 97.3 per cent of the 484 papers available at least two days prior to the meetings of the Federal Executive Council.
While maintaining its regular business, the Cabinet Secretariat supported the National Disaster Recovery Committee at short notice to facilitate the government’s response to the 2011 Australian fl oods, and the Japanese tsunami and subsequent nuclear reactor crisis.
We also assisted the National Archives of Australia in preparing the release of Cabinet documents up to and including the second Hawke Government, as Australia transitions from a 30-year closed period to 20 years. Th ese documents will be available for request at www.naa.gov.au. Consistent with the Cabinet handbook, we also provided advice on freedom of information requests where Cabinet documents were within the scope of the request.
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Figure 6.4 Services to the Cabinet and other decision makers
Services 2006–07 2007–08 2008–09 2009–10 2010–11
Meetings held of the Cabinet and its committees
Cabinet 33 30 44 41 40
Ministry 3 6 4 5 5
National Security Committee 18 13 34 30 20
Parliamentary Business Committee 19 14 19 18 14
Other Cabinet committees 14 41 134 103 85
Total 87 104 235 197 164
Cabinet meetings held outside Canberra (not including Cabinet committee meetings) 6 8 9 13 1
Other committee meetings held outside Canberra 3 4 29 19 3
Secretaries Committee on National Security 10 9 14 14 12
Cabinet minute release within 24 hours of meeting
National Security Committee 100% 75% 38% 65% 50%
Cabinet and all other committees 94% 56% 74% 80% 48%
Other indicators of Cabinet workload
Cabinet documents lodged 739 571 805 743 544
Cabinet minutes recorded 835 811 1 5431 1 4961 1 146
Support of the Governor-General in council (the Federal Executive Council)
Meetings held 26 28 27 27 22
Papers considered 635 515 522 656 484
Availability of papers two working days before meeting 93% 94% 95% 90% 97.3%
Note:1 Figures diff er from those provided in the 2008–09 and 2009–10 annual reports (which were 1 987 and
1 988 respectively). Th is is because the number of Cabinet minutes reported in 2008–09 and 2009–10 included extracts of minutes (where only a part of a minute is provided rather than a full minute).
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P R O F I L E
Sean Jacobs – graduate
Photo 6.3 Sean Jacobs
I applied to the 2011 PM&C graduate program because I wanted to experience how decisions are made at the highest levels of government, to gain insight into the central agency process and to work alongside some of the top advisers in the country. Th e appeal of working at the centre of a world-renowned public service was also a big drawcard.
My graduate year has been a very active one. So far, I’ve worked in the Floods Disaster Relief Taskforce, the Cabinet Secretariat, Defence Policy Branch, and the Strategy and Delivery Division. I’ve had the opportunity to support Cabinet meetings, to observe a mission rehearsal exercise for Australian Task Force 9’s deployment to Afghanistan and to work on Australian Public Service reform initiatives. All of my experiences at PM&C have been fantastic.
While I love what I do, work–life balance is also important to me, and I balance my graduate experience by playing for the Australian National University Dragons in the ACT Water Polo League.
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CHOGM 2011 87
C h A P T E R S E V E N
C o M M o n w e A lt h h e A D s o F g o v e R n M e n t M e e t i n g 2 0 1 1 ( p R o g R A M 1 . 1 . 5 )
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Support for the coordination and administrative arrangements for the Commonwealth Heads of Government Meeting (CHOGM) 2011 is provided by the CHOGM Taskforce within the Governance Group.
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of the Prime Minister with the management of CHOGM 2011. The successful promotion of Australia to international delegates through the meeting arrangements
Early feedback from the Commonwealth Secretariat and member states has indicated a high degree of satisfaction with logistical planning and arrangements for CHOGM 2011.
KPI: The successful promotion of Australia to international delegates through the meeting arrangements
The taskforce is providing a comprehensive media centre to facilitate international media coverage of the event.The taskforce is also working closely with key stakeholders to maximise promotional opportunities in the lead-up to the meeting.
Highlights 2010–11During 2010–11 the CHOGM Taskforce had a busy program preparing for the CHOGM 2011 meeting. Key activities for planning this significant event included:
• hosting the Secretary-General and Deputy Secretary-General of the Commonwealth
• briefing high commissions, senior government officials, and international and domestic media
• commencing an intensive training program for liaison officers
• setting up the CHOGM 2011 Volunteers Program
• engaging event contractors and service providers
• securing accommodation for CHOGM 2011 delegates and media
• launching community engagement activities
• launching the event accreditation and registration system for delegates and media.
C h A P T E R S E V E NCommonwealth Heads of Government Meeting 2011 (Program 1.1.5)
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C h o g M 2 0 1 1CHOGM 2011 will be held from 28–30 October 2011 in Perth, Western Australia. This will be the third time that Australia has played host to Commonwealth Heads of Government, with previous meetings held in Melbourne, Victoria, in 1981 and Coolum, Queensland, in 2002.
The CHOGM 2011 Taskforce was established within the department in January 2010 to coordinate the operational and administrative arrangements for the event, including accommodation, transport, airports, security, accreditation, media, delegate relations, venues and hospitality. International Division within PM&C, the Department of Foreign Affairs and Trade and the Commonwealth Secretariat are jointly responsible for policy and meeting content.
Early in 2010 a Secretary-level Steering Committee was established to provide high-level direction and guidance on event management and security issues, oversee and endorse policy matters, and determine and integrate agency responsibilities. A security sub-committee was also formed to provide high-level support to the Steering Committee and to advise senior officials and government on strategy and planning for a secure CHOGM 2011.
The taskforce works closely with the Commonwealth Secretariat (based in London), relevant Australian Government departments and agencies, Western Australian Government departments and the Western Australia Police regarding the logistical and support planning for the meeting.
Within the 2010–11 reporting period, the taskforce relocated to Perth and:
• hosted the Secretary-General and Deputy Secretary-General of the Commonwealth to demonstrate arrangements and planning for the event
• briefed high commissions, senior government officials, international and domestic media both in Canberra and in London and via an Aide Memoire on Administrative Arrangements and Media Advisory Note
• commenced an intensive training program for 120 liaison officers to underpin delegate relations activities
• called for and received over 1 000 applications for volunteers to take part in the CHOGM 2011 Volunteers Program being coordinated in partnership with Volunteering WA
• engaged event contractors and service providers to provide a range of key event services, including host broadcast, venue design and fit-out, opening ceremony production and transportation
• secured accommodation throughout Perth for CHOGM 2011 delegates and media
• launched community engagement activities, including a series of public information sessions (attended by over 500 local residents, business and media), an online subscription and Twitter feed, and a CHOGM 2011 Student Postcard Competition
• launched the event accreditation and registration system for delegates and media
• progressed preparations to host two advance visits from Commonwealth member states to Perth in July.
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S P E C I A Lfeature
Q u E E n s l a n d a n d v i c t o r i a f l o o d s a n d t r o p i c a l c y c l o n E sThe summer of 2010–11 is one that Australians will not soon forget. In January, PM&C formed a temporary National Disaster Recovery Branch (NDRB) in the Office of Work and Family to support the ongoing recovery effort.
The summer began with Queensland recording its wettest December on record and, with heavy rains continuing into March, the worst was still to come. The extreme rainfall levels caused by the strongest La Niña weather pattern since 1973, combined with two tropical cyclones – Tasha in late December and Yasi in early February – led to Queensland being declared a natural disaster area. The trail of disaster left a death toll of 38, with three people still unaccounted for, many of these from the devastated Lockyer Valley – Toowoomba region. The estimated recovery cost currently stands at $6.8 billion.
Queensland was not alone in feeling La Niña’s effects; Victoria too was inundated several times between September and February, recording its wettest January ever. With landscapes already saturated from heavy rainfall in September, heavy thunderstorms resulted in flash flooding and ongoing large-scale flooding occurred as rivers and waterways
overflowed. Two people lost their lives in the Victorian floods, and over 5 000 people in 83 communities were affected, with around 20 per cent of Victoria flooded. The estimated recovery cost is $676 million.
While states and territories have primary responsibility for the protection of life and property, the Commonwealth provides critical support when their resources are overwhelmed. More than 1 900 personnel from the Australian Defence Force (ADF) worked closely with Queensland’s emergency services to protect life and property and to assist with the clean up. ADF helicopters, used in daring rescue operations in the Lockyer Valley, also delivered vital supplies to isolated towns. Navy clearance divers surveyed Brisbane’s bridges for damage, and troops were involved in search-and-recovery efforts.
PM&C plays a key role in coordinating the Commonwealth’s work in such crises. The Homeland and Border Security Division supported the National Security Adviser and the Deputy National Security Adviser, who chaired the Australian Government Crisis Committee. All relevant departments came together to develop and implement
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a whole-of-Commonwealth response and recovery strategy, and the efforts of those officers involved resulted in a well-coordinated, coherent response to the immediate crisis.
As well as responding to the immediate crisis, PM&C played a key role in providing policy advice and coordination for a broad range of social and economic issues covering all areas of the affected communities’ needs. Further, the department handled over 3 000 items of correspondence about the Queensland floods, assisting citizens, businesses and state and local governments to get the right advice and services.
To assist the Queensland recovery effort, several groups were established to ensure a coordinated response from the Australian Government. In February, the National Disaster Recovery Taskforce, drawing staff from across the public service, was established in the Department of Regional Australia, Regional Development and Local Government. The taskforce provided strategic direction and oversight of the Commonwealth’s contribution to the recovery effort, working closely with the Attorney-General’s Department and PM&C.
The Prime Minister formed the Prime Minister’s Business Taskforce to help connect business contributions, particularly ‘in kind’ assistance and donations, to the recovery effort. Chaired by the Treasurer, the Business Taskforce brought together 11 Australian business leaders from different industries.
The Australian Government Reconstruction Inspectorate, chaired by former Finance Minister John Fahey, was formed to increase scrutiny and accountability of rebuilding projects following the floods. Further, a PM&C officer was outposted to the Queensland Recovery Authority to promote greater communication and coordination of the recovery effort.
As the water receded, in late March the Ceremonial and Hospitality Branch of the Ministerial Support Division coordinated a goodwill tour of flood affected areas by His Royal Highness Prince William. The Prince met local people affected by the flooding and toured the disaster area.
Photo 7.1: Townsville, Queensland after Cyclone Yasi (courtesy of the Queensland Reconstruction Authority)
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P R O F I L E
Thomas Brand – vacation employment
Like many university students approaching their final year of study, it suddenly dawned on me that I would soon need to decide what I wanted to do after I graduated. After many months of deliberation, I applied for the PM&C Vacation Employment Program for the 2010–11 summer holidays.
Coming to work at PM&C seemed like a natural progression for me. During my studies for my law degree, I had developed a keen interest in not only the practice of law but also the policy that underlies it. I was given the opportunity to work in the Access and Administrative Review section of Government Division, assisting
the Freedom of Information (FOI) team to administer their responsibilities under the FOI Act. The experience was invaluable, providing me with an opportunity to see how the FOI Act is applied in a central agency.
I have really enjoyed my work here at PM&C. It’s great to work for a central agency that deals with a plethora of policy issues, and the work I do is always varied and interesting. After the Vacation Employment Program, I was fortunate enough to secure a continuing casual position, so my PM&C experience is not finished yet.
Photo 7.2 Thomas Brand
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o F F i C i A l A n D C e R e M o n i A l s u p p o R t ( p R o g R A M 1 . 2 )
C h A P T E R E I G h T
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The Ministerial Support Division (MSD), Governance Group supports major visits and events, the operations of the Prime Minister’s official residences, and former Governors-General.
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction of key stakeholders with the management of the government’s hospitality for overseas dignitaries, official ceremonies and program of official visits
Feedback received indicated a consistently high standard of satisfaction. We received positive feedback from the Prime Minister and the Prime Minister’s Office, from visitors and their diplomatic representatives, from Australia’s overseas missions and from the recipients of official hospitality and state functions.
Highlights 2010–11During 2010–11 the department provided essential logistical and administrative support for:
• the Australia – United States Ministerial Consultations (AUSMIN)
• the Australia – United Kingdom Ministerial Consultations (AUKMIN)
• the visit by His Royal Highness Prince William of Wales KG
• the visit by the Right Honourable John Key, Prime Minister of New Zealand
• the Prime Minister’s overseas visits to Japan, the Republic of Korea (ROK), the People’s Republic of China (PRC) and the United Kingdom; the United States of America; and the United Arab Emirates, Afghanistan, Switzerland and Belgium
• the Council of Australian Governments meeting
• state memorial services for Dame Joan Sutherland and Emeritus Professor Frank Fenner
• the operations of the Prime Minister’s official establishments.
C h A P T E R E I G h TOfficial and ceremonial support (Program 1.2)
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Prime Minister’s overseas visitsThe department planned and managed the following eight official visits overseas for the Prime Minister:
• the United Arab Emirates, Afghanistan, Switzerland and Belgium (ASEM) (17 October 2010)
• Vietnam (East Asia Summit), Malaysia and the Republic of Indonesia (29 October – 3 November 2010)
• the Republic of Korea (G20) and Japan (APEC) (10–15 November 2010)
• Portugal (North Atlantic Treaty Organization Summit) (18–22 November 2010)
• New Zealand (15–16 February 2011)
• the United States of America (5–13 March 2011)
• New Zealand (National Christchurch Memorial Service) (18 March 2011)
• Japan, the ROK, the PRC and the United Kingdom (20 April to 1 May 2011).
Photo 8.1 The Honourable Barack Obama, President of the United States of America, kicks a football to the Honourable Julia Gillard MP, Prime Minister of Australia, in the Oval Office at The White House during the Prime Minister’s visit in March 2011. The Sherrin football was one of the official gifts the Prime Minister presented to the President as part of her visit.
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Guest of government visits to AustraliaIn 2010–11 the Ceremonial and Hospitality Branch (CERHOS) in the Ministerial Support Division coordinated 20 guest of government visits to Australia (Figure 8.1). This figure is less than the preceding year due to the 2010 federal election and extended caretaker period. Visits included ministerial visits lasting a few days to a week.
Visitors to Australia under the guest of government program in 2010–11 were:
• the Heads of State of Malta and the Republic of Cyprus
• the Heads of Government of Mongolia, Malaysia, Samoa and New Zealand
• the Vice President of the Republic of Indonesia and Chairman of the National Committee of the Chinese People’s Political Consultative Conference, the PRC
• ministers from the United States of America, United Kingdom, Bosnia and Herzegovina, Austria, the PRC and the Federal Republic of Germany
• His Royal Highness Prince William of Wales KG
• the United Nations High Commissioner for Human Rights.
We also managed 115 airport facilitations for Heads of State and Heads of Government transiting or making private visits to Australia.
Photo 8.2 The Honourable Julia Gillard MP, Prime Minister of Australia, shows the Honourable Hillary Rodham Clinton, Secretary of State, United States of America the sights along the Yarra River when Secretary Clinton was in Melbourne for AUSMIN talks in November 2010.
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Other major eventsA number of other significant events were arranged during the year. These were:
• a state funeral for the Honourable Kenneth Wriedt (Hobart, 27 October 2010)
• state memorial services for Dame Joan Sutherland (Sydney, 9 November 2010) and Emeritus Professor Frank Fenner (Canberra, 17 December 2010)
• a morning tea for the 2011 Australian of the Year Awards finalists (Canberra, 25 January 2011)
• the Australia Day 2011 reception (Canberra, 26 January 2011)
• a Council of Australian Governments meeting (Canberra, 14 February 2011)
• a dinner in honour of the retiring Chief of the Defence Force (Canberra, 23 June 2011).
Photo 8.3 The Honourable Julia Gillard MP, Prime Minister of Australia with the Right Honourable Najib Razak, Prime Minister of Malaysia, view the Welcome to Country ceremony in the Great Hall, Parliament House Canberra during Prime Minister Najib’s March 2011 visit to Australia.
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Figure 8.1 Summary of ceremonial and hospitality services
Services 2006–07 2007–08 2008–09 2009–10 2010–11
Prime Minister’s overseas visits
Visits made 7 7 11 7 8
Nations visited1 9 12 14 14 14
Total duration of visits (whole or part days) 26 40 55 45 48
Official visits to Australia by guests of the Australian Government
Heads of state 4 5 4 6 2
Heads of government 7 4 8 3 4
Ministers 19 12 24 11 12
Other guests2 5 0 1 5 2
Total visits 35 21 37 25 20
Airport facilitations3 52 107 169 190 115
Other events of state
State funerals 2 3 2 0 1
State memorial services 1 – 2 0 2
Other events 12 11 25 36 20
Total other events of state 15 14 29 36 23
Notes:1 Nations may be visited more than once in a given year.2 Guests include visitors who are royalty but are not heads of state.3 Airport facilitation involved coordinating airport and border control procedures for, and greeting,
heads of state and heads of government on private or transit visits on their international arrival and departure. The facilitation is undertaken by part-time visit consultants.
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction with quality and timeliness of advice and secretariat support for the Official Establishments Trust
Feedback received indicated that we were responsive in delivering services for the Official Establishments Trust and provided accurate and timely advice.
Official establishmentsThe department manages the operations of the Prime Minister’s two official residences: The Lodge in Canberra and Kirribilli House in Sydney. We also provide secretariat support to the Official Establishments Trust and administer the grant-in-aid to The Australiana Fund.
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In September 2010, responsibility for ownership and property management of the residences was transferred to the Department of Finance and Deregulation. PM&C continues to be responsible for the day to day running of the residences and maintenance of the gardens at the properties.
Throughout the year we continued to provide high-quality services at the residences and secretariat support to the Official Establishments Trust. Three meetings of the trust were held during the year and the Chair has indicated the trust was satisfied with the support provided.
During 2010–11 two charities took the opportunity to hold functions at Kirribilli House and additional charities will use the residence for functions in 2011–12.
Maintenance and repairs at the official residences during 2010–11 included:
• removal of storm damaged trees in the grounds at both residences
• essential repairs and maintenance at both residences (electrical, plumbing, painting and asbestos removal).
p e R F o R M A n C e R e p o R t
KPI: High level of satisfaction from the Governor-General designate (when relevant) and former Governors-General with the level of support and payment of allowances
Feedback from former Governors-General indicates that we provided effective support and timely payment of allowances.
The department, through MSD, also provided administrative support to six former Governors-General. This included support for their staffing and office arrangements and related entitlements.
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Photo 8.4 PM&C staff enjoy the annual cup cake fund raising day
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Office for the Arts 102
C h A P T E R N I N E
A R t s A n D C u lt u R A l D e v e l o p M e n t ( p R o g R A M 2 . 1 )
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The Office of the Arts administers programs and policies that ensure the sustainability of Australia’s arts and cultural sector by supporting artistic production, protecting and strengthening cultural heritage and expression, and encouraging opportunities for public engagement with arts and culture.
p e R F o R M A n C e R e p o R t
KPI: Access to high quality cultural experiences particularly in regional and remote areas is maintained or increased as measured by the number of funded activities, performances, exhibitions and events reported by state/territory and metropolitan/regional/remote categories
Australians had access to high-quality cultural experiences through Indigenous arts, culture and language programs, regional touring programs, and funding administered through the Festivals Australia program, the Regional Arts Fund and additional arts investment.
KPI: Access for Indigenous people to high quality cultural experiences is maintained or increased as measured by the number and range of projects supported and the level of achievement of projects against key delivery requirements and program objectives
In 2010–11, approximately 300 Indigenous arts, culture and language activities were supported by the Indigenous Culture Support program, the Maintenance of Indigenous Languages and Records program, and the National Arts and Crafts Industry Support program, maintaining the achievements of the previous reporting period. Of these activities, 80 were in metropolitan Australia, over 90 in regional Australia and over 140 in remote Australia, which included approximately $3.2 million to support 50 projects in priority remote service delivery Indigenous communities.
KPI: Access to Australian books in public and educational libraries is maintained or increased
The Educational Lending Right (ELR) and Public Lending Right (PLR) programs provided payments to eligible Australian creators (authors, editors, illustrators, translators and compilers) and publishers whose books are held in educational and public lending libraries. In 2010–11, the programs demonstrated a combined increase in claims of 1.6 per cent. A total of 8 940 payments were made under the ELR in 2010–11 and 11 094 payments were made under the PLR.
C h A P T E R N I N EArts and cultural development (Program 2.1)
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KPI: Increased sales of Prime Minister’s Literary Award shortlisted or winning titles
Monthly sales of the four award-winning titles in 2010 increased significantly in the months following the announcement of the awards. Sales of the young adult fiction winner (Bill Condon’s Confessions of a Liar, Thief and Failed Sex God) doubled, sales of the fiction (Eva Hornung’s Dog Boy) and non-fiction (Grace Karskens’ The Colony: A History of Early Sydney) winners tripled, and sales of the children’s fiction winner (Lorraine Marwood’s Star Jumps) increased 13-fold.
KPI: Applications (with all supporting documentation provided) for the location and PDV offsets are assessed within 15 weeks
We administered film tax offset programs that provided incentives for large-budget film and television productions to locate in Australia and to encourage post, digital and visual effects (PDV) production in Australia (we also administered the phase out of the 10BA and 10B film tax offset schemes). Applications for the location and PDV offsets were assessed within the 15-week timeframe.
KPI: 100% of applications or referrals considered under the Protection of Movable Cultural Heritage Act 1986 are processed and considered in accordance with the requirements of the Act
In 2010–11, all applications and referrals under the Protection of Movable Cultural Heritage Act 1986 were processed and considered in accordance with the requirements of the Act. A report on the operations of the Protection of Movable Cultural Heritage Act 1986 for the 2010–11 year is in the appendix.
KPI: Arts Training Organisations provide access to high quality elite level performing arts training for emerging Australian artists, including in performance, design and production, as measured by the number of participants and range of training provided
In 2010–11, the seven national performing arts training organisations received operational funding totalling $15.9 million through the Australian Government’s Cultural Development program. These organisations provided a high calibre of training to over 1 100 students in both the 2010 and 2011 academic years in a wide range of specialisations, including performance, design and production.
KPI: NPG stages innovative and diverse exhibitions and collection displays underpinned by a broad range of public access and learning programs and events
During 2010–11 the National Portrait Gallery presented a wide range of exhibitions, access and learning programs. These included thematic or single subject acquisitions, non-acquisitive prizes, work with schools nationally to explore approaches to contemporary self portraiture, innovative temporary exhibitions and international exhibitions. The collection displays were refreshed three times with new acquisitions and loans.
These were supported by over 40 programs and activities targeting the formal education sector and a seasonal public access program, including music, performance, lectures, symposia, workshops and drawing.
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KPI: Overall positive NPG experience (%)
There has been an increase in visitor satisfaction with the gallery. A recent survey conducted by the University of Canberra’s Centre for Tourism and Service Research asked visitors to rate their satisfaction with their National Portrait Gallery experience. Of the more than 3 600 responses, 95 per cent agreed or strongly agreed that their visit was satisfying overall. This is an increase of 5 per cent from 2009–10.
KPI: Significant NPG temporary exhibitions staged (number)
The target of five exhibitions was exceeded, with a total of 10 presentations staged.
KPI: Preventable infrastructure or systems failures at the NPG (number)
There were no preventable infrastructure or systems failures during 2010–11.
Highlights 2010–11During 2010–11 the Office for the Arts led, coordinated or assisted in:
• successful international Indigenous repatriation
• the completion of the Review of the Australian Independent Screen Production Sector
• preparatory work in developing a new National Cultural Policy
• the completion of the Review of Australian Government Investment in the Indigenous Broadcasting and Media Sector
• the Prime Minister’s Literary Awards
• the endorsement of the Indigenous Australian Art Commercial Code of Conduct
• the delivery of regional and touring programs
• the provision of a successful educational and cultural experience for the public by the National Portrait Gallery.
o F F i C e F o R t h e A R t sDuring 2010–11 the Office for the Arts oversaw $680 million in Australian Government funding for a range of programs and initiatives which it administered, its national network of offices located in Australian Government Indigenous Coordination Centres and its agencies. These programs targeted support for arts training, the creative industries, film, Indigenous employment, Indigenous cultural support, literature, a national arts disability strategy, the national collecting institutions, music, regional touring and the visual arts.
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We took a lead role in securing cultural outcomes and whole-of-government objectives through program delivery and policy partnerships with other Australian Government departments and agencies, and regularly led cross-jurisdictional cultural policy and program development in partnership with state and territory governments.
We also supported our portfolio agencies in the arts, cultural collections and film sectors and assisted them to achieve the government’s objectives and meet their governance and accountability responsibilities. Finally, we developed and maintained an outstanding collection of high-quality Australian artwork through Artbank and the National Portrait Gallery.
Successful international Indigenous repatriationOn 2 March 2011, the Natural History Museum (NHM), London, UK announced that it would return 138 Torres Strait Islander remains – the largest return to date. One of the additional outcomes of the return is that in the 2010–11 financial year the NHM will sponsor a Torres Strait Islander to work and study at the NHM in London for six months and the department will sponsor an Aboriginal person to work and study at the NHM. The fellowships will provide an opportunity to learn the basic skills used in museum collection management, conservation and repatriation.
Reviews of the Australian Independent Screen Production Sector and Australian Government Investment in the Indigenous Broadcasting and Media SectorOn 17 February 2011, the Minister for the Arts, the Hon Simon Crean MP, released the Australian Government’s report on the Review of the Australian Independent Screen Production Sector, which we undertook during 2010. As part of the review, we asked for comment from the public and held focus group discussions with producers and service providers. The review found that government support had trebled from $136.7 million to $412.1 million in the three years since the introduction of the Australian Screen Production Incentive in 2007–08, compared to the previous three years, and identified opportunities to improve the effectiveness and efficiency of the screen tax offsets. We assisted with development of a government response, which resulted in a package of targeted support for the Australian film production sector.
The independent review of Australian Government Investment in the Indigenous Broadcasting and Media Sector aimed to ensure that the resources allocated to Indigenous broadcasting are delivering the best outcomes for Indigenous people. The review, conducted across the arts, Indigenous affairs and communications portfolios, was led by Mr Neville Stevens AO. We played a key role in supporting Mr Stevens and leading the cross-agency working group. Released on 6 April 2011, the review found that the Indigenous broadcasting and media sector is a powerful tool for the well-being of Indigenous people and has the potential to help close the gap between Indigenous and non-Indigenous people. In response, the government transferred responsibility for the sector to the communications portfolio and announced continued support for National Indigenous Television.
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The Prime Minister’s Literary AwardsThe department administers the Prime Minister’s Literary Awards, Australia’s richest literary prizes, which recognise and reward excellence in Australian literature. In addition to the existing awards for fiction and non-fiction, two new awards were introduced in 2010 to recognise excellence in children’s and young adult fiction writing. The winner of each award received a $100 000 prize. The prizes are awarded on the basis of recommendations to the Prime Minister from independent judging panels.
The endorsement of the Indigenous Australian Art Commercial Code of ConductThe code is an industry-led, voluntary code of conduct that aims to ensure fair and ethical trade between Indigenous visual artists and art market professionals. The code is administered by the private company Indigenous Art Code Limited (IartC Ltd) and opened for signatories on 15 July 2010. We were involved in the development of the code, and provided administrative and financial assistance to IartC Ltd during its start-up period.
High-quality cultural experiencesPrograms are an essential way of delivering high-quality arts experiences to Australians located in regional and remote areas. In 2010–11, we distributed $10.53 million to 170 projects through the five programs: Playing Australia, the Contemporary Music Touring program, Festivals Australia, Visions of Australia and the Contemporary Touring Initiative.
Photo 9.1 PM&C staff participating in a classified waste bag race for the ‘Caretaker Cup’
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Figure 9.1 Regional touring programs 2010–11 by metropolitan and regional seasons funded
State/Territory (metropolitan and regional)
Playing Australia
Contemporary Music Touring
programVisions of Australia
Contemporary Touring
InitiativeTotal
seasons
ACT Metro
Regional
14
0
13
0
8
0
2
037
NSW Metro
Regional
69
145
46
131
15
30
2
2440
Vic. Metro
Regional
83
132
33
33
8
9
2
0300
SA Metro
Regional
6
33
20
11
6
2
2
181
Qld Metro
Regional
56
80
15
80
12
16
3
2264
NT Metro
Regional
0
43
0
55
0
5
0
0103
WA Metro
Regional
8
74
25
42
4
7
1
0161
Tas. Metro
Regional
0
28
0
19
0
8
0
257
Total seasons 771 521 130 19 1 480
Through the government’s touring programs, Australians across the nation were given increased access to cultural experiences. Overall, the Playing Australia program provided $6.4 million for 39 tours; the Contemporary Music Touring program provided $400 000 for 33 tours; the Visions of Australia program provided $2.1 million for the development and touring of 26 exhibitions; and the Contemporary Touring Initiative provided $534 000 for the development and touring of three exhibitions of contemporary visual arts and crafts.
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Figure 9.2 Regional and touring program statistics
National Collecting
Institutions
DetailsPlaying
Australia
Contemporary Music Touring
programFestivals
AustraliaVisions of Australia
Contemporary Touring
Initiative
Touring and Outreach
program
Number of funded/administered activities 39 33 69 26 3 15
% of applications processed within target timeframe 100 100 100 100 100 100
% of payments made on time 100 100 100 100 100 100
% of funding agreements acquitted1 92 71 74 100 70 02
Notes:1 The percentage of total grant acquittals due which were received in 2010–11 2 Acquittals not due until 31 August 2011
We also administered the Regional Arts Fund, which devolved funding of $2.96 million to the peak regional arts organisations in each state and arts ministries in the territories. This program supports sustainable cultural development in regional and remote Australia and provideassistance for professional skills development and community engagement for regional and remote artists and communities.
Funding of $14.7 million provided through the Indigenous Broadcasting program included support for five urban Indigenous community radio stations, 22 regional radio stations, 86 remote Indigenous broadcasting services and seven remote Indigenous media organisations
In 2010–11 approximately 300 Indigenous arts, culture and language activities were supportedby the Indigenous Culture Support program, the Maintenance of Indigenous Languages and Records program, and the National Arts and Crafts Industry Support program, maintaining the achievements of the previous reporting period. Over 80 activities in metropolitan Australiaover 90 activities in regional Australia and over 140 activities in remote Australia were supported. This included providing approximately $3.2 million to support around 50 projects in priority remote service delivery Indigenous communities.
More than 600 Indigenous arts and culture jobs were created through the Indigenous Employment Initiative, which assists in the employment of Aboriginal and Torres Strait Islanders in the arts and culture sectors as part of reforms to the Community Development Employment Projects scheme and efforts to close the gap on employment outcomes.
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Through the Return of Indigenous Cultural Property program and the return of ancestral remains through the International Repatriation program, we supported the return of ancestral remains and secret sacred objects to Aboriginal and Torres Strait Islander peoples.
Under the Community Heritage Grants program, 70 projects across Australia were funded in 2010–11, and 20 projects and 3 internships were funded under the MaritimeMuseums of Australia Project Support Scheme. Of particular note was the funding provided to the Marysville and District Historical Society to assist with bushfire recovery work.
Support for the exhibition requirements of our national collecting institutionsThe Australian Government International Exhibitions Insurance (AGIEI) program and the National Collecting Institutions Touring and Outreach (NCITO) program successfully supported the exhibition requirements of our national collecting institutions. The AGIEI program supported one exhibition in 2010–11 and a further four exhibitions were granted in-principle approval.
The NCITO program provides $1 million per year over four years to support the portfolio national collecting institutions in developing and touring exhibitions of works from their collections nationally and internationally. The program has a particular focus on improving access for regional audiences to the national collections. Regional centres that received tours in 2010–11 included: Alice Springs, Northern Territory; Warrnambool, Victoria; Kalgoorlie–Boulder, Western Australia; Townsville, Queensland; Wagga Wagga, New South Wales; and Launceston, Tasmania.
Film tax offset programsThe department administered film tax offset programs that provided incentives for large-budget film and television productions to locate in Australia and to encourage post, digital and visual effects (PDV) production in Australia. Applications were assessed within the 15 week timeframe. Figure 9.3 provides details of the scheme.
Figure 9.3 Film tax offsets and the Foreign Actor Certification Scheme
Details 2006–07 2007–08 2008–09 2009–10 2010–11
10BA film tax offset provisional applications 664 80 0 n/a n/a
10BA film tax offset final applications 62 90 58 14 4
10B film tax offset applications 165 15 0 n/a n/a
Location and PDV offsets provisional applications 0 0 1 0 1
Location and PDV offsets final applications 3 7 9 4 5
Estimated location and PDV offsets rebate payable to productions certified in financial year $13.4m $68.6m $67.8m $33.5m $16.8m
Foreign actors certified 154 137 103 98 94
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Funding for arts training organisationsIn 2010–11, the seven national performing arts training organisations received operational funding totalling $15.9 million through the Australian Government’s Cultural Development program. These organisations include:
• the Australian Ballet School (ABS)
• the Australian National Academy of Music (ANAM)
• the Australian Youth Orchestra (AYO)
• the Flying Fruit Fly Circus (FFFC)
• NAISDA Dance College
• the National Institute of Circus Arts (NICA)
• the National Institute of Dramatic Art (NIDA).
At the beginning of the 2011 academic year, 1 102 students were enrolled in the national arts training organisations, including 624 participants in the AYO’s program. This represents a small reduction in overall enrolment numbers when compared with 2010 figures of 1 172.
The high calibre of the training is recognised nationally and internationally. Competition for student placements is very high and the audition processes are rigorous, ensuring that only the most talented applicants are admitted to these elite level training organisations.
ABS graduating students are regularly offered contracts with Australian and international ballet companies. Three NICA graduate artists shared a 2010 Helpmann Award for best new work and a number of ANAM graduates have been contracted by Australian symphony orchestras.
The breadth and range of training continues to develop each year in response to industry needs. NIDA introduced a playwriting stream to its Graduate Diploma of Dramatic Art at the end of 2010 and a music theatre stream in its Bachelor of Dramatic Art (Acting) in 2011. NAISDA is in the process of enhancing its training program by introducing a specialisation at Certificate IV and Diploma levels in professional or community dance practice.
The continued success of the National Portrait Gallery The National Portrait Gallery won the 2010 ACT and Capital Region Tourism Awards for Education Programs and was the winner of the John Holland Award for Best Public Building 2011 in the Property Council of Australia’s National Innovation and Excellence Awards. As at March 2011, it had welcomed 1.5 million visitors to its new King Edward Terrace building.
In 2010–11, the gallery acquired several significant acquisitions and staged a number of successful exhibitions, including curated exhibitions Jenny Sages: Paths to portraiture and Annette Kellerman: Indecent exposure. The gallery also presented Little beauty, a commissioned theatre piece for children focussed on the collection, which was shown over a three-week season to 2 184 children and families.
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The gallery, in partnership with the ANU Research School of the Humanities, also presented an international symposium, Imaging identity, which coincided with the contemporary exhibition Present tense: An imagined grammar of portraiture in the digital age.
Examples of the breadth of exhibitions and presentations conducted by the gallery include:
• Husbands and Wives (6 May – 11 July 2010)
• National Youth Self Portrait Prize (22 July – 12 September 2010)
• Headspace 10 (9 September – 7 November 2010)
• Martin Schoeller: Close Up (26 November 2010 – 6 February 2011)
• National Photographic Portrait Prize (18 February – 18 April 2011)
• Inner Worlds: Portraits and Psychology (29 April – 24 July 2011)
• Between light and shadow: Portraits by Stuart Campbell (30 April – 17 July 2011).
Photo 9.2 Theatre of Image performers in Little Beauty, National Portrait Gallery
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S P E C I A Lfeature
n a t i o n a l p o r t r a i t G a l l E r yThe National Portrait Gallery is one of Australia’s most dynamic and uniquely focused art museums. Its charter is to develop a collection of significant portraitsto tell the story of Australian endeavour and achievement from settlement to the present day through the subjects represented. With an important and growing collection, the gallery delivers an innovative and diverse program of collection displays, changing exhibitions, and learning and public access initiatives 7 days a week, 365 days a year.
The People Behind the Portraits:Long before the National Portrait Gallery’s doors open to the public at 10 am, the team is hard at work. While the cleaners and the café staff arrive before dawn to prepare for the day, security are, as always, on site. The gallery’s facilities team is next in, as planned and periodic maintenance is undertaken outside opening hours wherepossible. This year the gallery won the John Holland Award for Best Public Building 2011 in the Property Council of Australia’s National Innovation and Excellence Awards.
As they do every day, the exhibitions, curatorial and collection management teams are in the collection and exhibitiogalleries finessing and perfecting the displays. A dedicated curatorial team form the intellectual powerhouse of the
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gallery, researching potential acquisitions, writing for publication and presenting on aspects of the collection or portraiture more broadly. The gallery’s staff organise national tours of exhibitions to regional and remote locations as a means of extending the reach of the collection and interpretive programs on Australian and international portraiture. Two exhibitions were presented in venues in New South Wales, Victoria, South Australia and Western Australia in this financial year, and a further three will commence touring in 2011–12.
The gallery’s access and learning staff are constantly working to enhance visitors’ experiences at the National Portrait Gallery. With a large percentage of first-time visitors, many from interstate and overseas, this team provides a wide range of interpretive programs for individual visitors and groups, as well as providing information for those who prefer to guide themselves through the gallery. In fact, nearly half a million visitors – including over 14 300 students – participated in curriculum-based learning programs at the gallery. Our hard work here has been recognised, with the gallery winning the Educational Tourism award at the ACT and Capital Region Tourism Excellence Awards in 2010.
The marketing and sponsorship team manage our relationship with the media, communications and publishing.
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The support of our corporate sponsors, who partner with the gallery, is essential. The development and membership team cultivates relationships with donors and our Circle of Friends members, both current and potential. Funds raised support the development of the collection through new acquisitions. Events staff support the gallery’s internal events and look after external clients who host their own events in our Terrace Rooms. Corporate hire events at the gallery are often an introduction to new visitors and the collaboration with the onsite caterer has been a fruitful team effort.
Behind the scenes, the business and governance team support the day-to-day operations of the gallery, looking after our corporate, commercial and governance activities. The online team is growing to reflect the different ways that visitors source information about this unique national collection. Our website is a rich source of information about the many and diverse subjects in the collection, their links with Australian
history and the artists who portrayed them, as well as general information on portraiture. Over 2 million people ‘visit’ the gallery this way each year, and this number continues to grow.
Highlights for the gallery this year included:
• 10 temporary exhibitions developed and presented
• 497 664 visitors
• 95 per cent of visitors indicated that overall they were satisfied or very satisfied with their gallery experience.
The National Portrait Gallery is an exemplar of how, by working together and sharing a vision, a group of people can deliver an outstanding program at a national level.
Photo 9.3 National Portrait Gallery staff
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S P E C I A Lfeature
p m & c i n d i G E n o u s p r o G r a m sAboriginal and Torres Strait Islander cultures are among the oldest continuingliving cultures in the world. Keeping Indigenous people and their culture healthy is vital to the wellbeing of Aboriginal and Torres Strait Islander Australians and is at the heart of a stronnational identity. A range of PM&C programs support these outcomes.
The Office for Sport administers the Indigenous Sport and Recreation program and the Job Creation Package – Sport and Recreation program. Both programs are part of the Australian Government’s ongoing commitment to improving the health and physical wellbeing of Indigenous Australians, reducing Indigenous disadvantage and contributing to broader social benefits.
To increase sport and recreation and employment opportunities for Indigenous people the programs partner with local government, community groups and organisations such as Garnduwa Amborny Wirnan AboriginalCorporation (Garnduwa) and the Australian Football League (AFL).
Garnduwa, is a peak Indigenous sporting body in the Kimberley and has been working for 19 years to develop Indigenous participation in local, regional, state and national sporting competitions. Garnduwa’s Regional Athletics Championships, funded by the department, now in its 14th year, brings
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together talented athletes from schools across the Kimberley and increases general participation in athletics in the region.
The AFL has a strong presence in the Northern Territory, and Wadeye, a remote Aboriginal community 420 kilometres southwest of Darwin, is no exception. Indigenous Sport and Recreation program funding has allowed the Wadeye Football Club to ensure community involvement in a strong grassroots program and to enter into the Northern Territory AFL competition for 2011 and beyond.
The Office for the Arts also administers a range of Indigenous arts and culture programs that are helping to keep culture strong.
The Indigenous Culture Support program assists participation in a wide range of Indigenous cultural activities
Photo 9.4 A PM&C employee met with local community members in Wadeye, Northern Territory to discuss community Sport and Recreation needs.
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and enables the transmission of cultural knowledge across age groups.
The Maintenance of Indigenous Languages and Records program aims to address the erosion and loss of Australia’s estimated 250 Indigenous languages by providing funding to support community based projects that connect people to their languages and culture.
The National Arts and Crafts Industry Support program funds Indigenous art centres and industry support organisations to build a stronger Indigenous visual arts industry.
The Return of Indigenous Cultural Property program aims to return ancestral remains and secret sacred objects held in state and territory funded museums to their communities of origin.
As part of Closing the Gap in employment outcomes, the Indigenous Employment
Initiative funds Indigenous arts and culture organisations to employ over 600 Indigenous people in roles such as arts workers, cultural officers, language assistants and broadcasting technicians.
The Indigenous Broadcasting program supports Indigenous community radio broadcasting and provides funding support to address the broadcasting needs of Indigenous people.
Breakthrough: Emerging Indigenous Contemporary Musicians Recording program is a pilot initiative that assists emerging Indigenous musicians and groups to produce a high-quality CD recording suitable for broadcast and commercial release. The Medics are one of the four successful funding recipients of the Breakthrough program.
Photo 9.5 The Medics – one of the four successful recipients of the Breakthrough: Emerging Indigenous Contemporary Musicians Recording program. Photo Credit: Hailey Bartholomew
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S P E C I A Lfeature
c o n t r i B u t i n G t o o u r c o m m u n i t yThroughout 2010-11 PM&C staff contributed to our community through involvement in a range of national and international events.
United Nations World Environment Day raises global awareness of environmental issues and empowers people to contribute to sustainable and equitable development. The forest theme for 2011 was consistent with the United Nations International Year of the Forests, which aims to raise awareness of sustainable management, conservation and development of all types of forests.
PM&C supported World Environment Day on 3 June with a fundraising stall for a not-for-profit organisation that supports orangutan conservation. The stall proved very popular with the generous staff and visitors to PM&C, raising approximately $1 400 in a few short hours – enough funds to cover most of the veterinary, feeding and housing costs of an orphaned orangutan for one year! Two areas within the department, the Web Services team and the Health and Performance Management team organised the event.
National Ride to Work Day celebrates and promotes cycling as a healthy and environmentally friendly alternative mode of transport. Despite torrential
rain for Ride to Work Day 2010, held on 13 October, there was a solid turnout of cyclists from the department and our partnering agency, the Attorney-General’sDepartment. Participants enjoyed a healthy breakfast at One National Circuit and shared their stories of a very soggy morning ride.
The department has improved its facilities to encourage staff to ride to work and established a bike user group in 2010. The group, PM&C Bike Riders, promotes cycling as a social and fun activity and encourages all staff to realise the productivity and personal benefits of a healthy work–life balance. Adam Jagla of the Industry, Infrastructure and Environment Divisionis the convenor of PM&C Bike Riders, organising lunchtime rides and bicycle maintenance workshops and keeping members informed about the wide world of cycling.
PM&C staff also participated in other events including the RSPCA’s Cupcake Day, the Cancer Council’s Daffodil Day and National Walk to Work Day as well as donating to the Australian Red Cross Blood Service.
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Office for Sport 118
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Th e Offi ce for Sport supports the government to achieve its policy objectives to increase participation in physical and active recreational activities by all Australians and to use participation in sport as a means of increasing social inclusion and building strong communities. In undertaking its role, the offi ce works closely with the Australian Sports Commission (ASC), the Australian Sports Foundation, the Australian Sports Anti-Doping Authority and other departments.
p e R F o R M A n C e R e p o R t
KPI: Improve facilities for sport and active recreation through the successful development and upgrade of recreation facilities
During the year, 16 commitments to sport and recreation infrastructure projects were completed. A further 14 infrastructure projects are expected to be completed in 2011–12 and 2012–13.
KPI: Maintain best practice anti-doping regime through continuous review ensuring the anti-doping regime is aligned with United Nations Educational Scientifi c and Cultural Organisation International Convention against Doping in Sport and World Anti-Doping code and associated international standards
We supported the Minister for Sport in his role as a member of the World Anti-Doping Agency Executive Committee and Foundation Board and contributed to an international review of the non-binding International Anti-Doping Agreement. Th e revised National Anti-Doping Framework was endorsed by the Sport and Recreation Ministers Council on 11 February 2011.
KPI: Commissioned research is used to improve detection and deterrence of doping in sport by eff ectively using research funding
We continued to fund academic and scientifi c organisations under the Anti-Doping Research program. Research priorities refl ected Australian and global anti-doping research needs, focusing on improving the analytical capability for detecting banned substances and doping agents in sport, and to better understand doping behaviours and inform practical doping deterrence strategies.
C h A P T E R T E NSport and recreation (Program 3.1)
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KPI: Illicit Drugs in Sport grants programs deliver eff ective education and testing programs for participating high-performance athletes
Th irteen sports entered into funding agreements through to June 2013 to implement Illicit Drugs in Sport (IDIS) education programs. Th e ASC has commenced a program of testing athletes receiving ASC scholarships and the Confederation of Australian Motor Sports is preparing a pilot program focused on competitor safety.
KPI: Number of initiatives that achieved performance agreement objectives and milestones
Th e target of 22 initiatives was exceeded, with 30 being achieved. Despite a number of community sport and recreation facility projects having been aff ected by adverse weather events such as the fl oods and cyclones in Queensland, all projects remained on track to achieve their performance agreement objectives and milestones. We continued to assist proponents to engage appropriate strategies to ensure objectives and milestones are met.
KPI: Number of projects funded through the Indigenous Sport and Recreation program that successfully met funding agreement requirements
We administered the funding of 112 projects under the Indigenous Sport and Recreation program in 2010–11 (the target was 90). Of these, two organisations did not meet the funding agreement requirements and consequently did not receive their grant in 2010–11. Th e actual number of projects supported was therefore 110.
KPI: Number of full time equivalent positions funded through the Job Creation Package that successfully met funding agreement requirements
We administered Job Creation Package funding for 40 projects to employ 92 full-time equivalent (FTE) Indigenous sport and recreation offi cers. Seven FTE positions were not fi lled due to diffi culties with recruiting suitable staff . Th e target of 75 was exceeded by 10 positions.
KPI: Number of anti-doping research projects meeting funding agreement milestones
Twenty-one projects remained active in 2010–11. Of these projects, a total of 14 were required to meet funding milestones during the period. Of these 14 projects, 10 met funding milestones, three did not due to technical diffi culties, delays in ethics approvals or departure of key personnel and in one case further analysis was required to meet reporting requirements. Th e target of eight was exceeded by two.
KPI: Percentage of sports participating in illicit drugs initiatives that meet program standards
All sports delivering initiatives under the program met program standards during the period. It is expected that the standard of delivery will be enhanced by the certainty provided through multiple-year contracts.
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h i g h l i g h t s 2 0 1 0 – 1 1Th is year the Offi ce for Sports led, coordinated or assisted in achieving:
• agreement by all Commonwealth, state and territory sports ministers on
• a National Policy on Match-Fixing in Sport
• a National Sport and Active Recreation Policy Framework
• the signing by all Australian governments (except NSW) of a National Institute System Intergovernmental Agreement
• Australia’s successful bid to host the 2015 Asian Football Confederation Asian Cup
• support of all governments for Australia’s bid to host the 2022 FIFA World Cup
• review of the Active After-school Communities Program
• delivery of sport and recreation activities to over 150 000 people in Indigenous communities
• the Queensland Government’s bid to host the 2018 Commonwealth Games on the Gold Coast
• the milestone of 1 million water safety DVDs targeting children under fi ve distributed to new mothers and the general community.
o F F i C e F o R s p o R t Th e critical issue facing Australian and international sport during 2010–11 was match-fi xing and corruption. We supported the Minister for Sport in the development of a national policy on match-fi xing in sport that sports ministers from all jurisdictions signed on behalf of their governments. Th e policy aims to maximise public confi dence in the integrity of sport through a commitment to pursue nationally consistent legislative arrangements, consistent codes of conduct for sport and active participation in international eff orts to combat corruption in sport.
All Australian sports ministers also reached agreement on the fi rst National Sport and Active Recreation Policy Framework. We led the development of the framework, which provides a guide for the development and alignment of policies and initiatives by Australian governments to increase participation, deliver success in international competition and strengthen national sporting competitions.
We also supported the independent review of the Active After-School Communities program, undertaken by Mr Ron Harvey.
Assistance was provided to Indigenous Australians to become more involved in healthy activity by managing projects and initiatives through the Indigenous Sport and Recreation program and the Job Creation Package. We also contributed through funding to the ASC’s Indigenous Sport program, to the employment of 26 Indigenous sport and recreation development offi cers, and the operation of the Elite Indigenous Travel and Accommodation Assistance program.
Opportunities for community participation in sport and recreation were enhanced through funding improvements to community-based sport and recreation projects, including infrastructure. Th ese initiatives helped to deliver more accessible, safe and inclusive sport and recreation activities. Th ere are now 151 community sport and
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recreation infrastructure and facility improvement projects completed from the 165 commitments administered by PM&C. Th e majority of the remaining projects are expected to be completed in 2011–12.
We provided signifi cant support for a range of bids to host major international sporting events, including Australia’s bids to host the 2022 FIFA World Cup, the Asian Football Confederation Asian Cup 2015 and the 2018 Commonwealth Games on the Gold Coast. A key role was managing Commonwealth-state relations for the above bids and coordinating cross government activity.
In relation to the successful Asian Cup bid, we worked with Football Federation Australia and participating state governments on early event organising activities. Work also commenced on a strategic review of football in Australia to ensure the sustainability of football in the lead up to the Asian Cup in 2015. We continued to support the Western Australian Government in hosting the 2011 World Sailing Championships, to be held in December 2011 in Perth.
We continued to support leading edge anti-doping research through the Anti-Doping Research program. Funding was provided to four new anti-doping research projects that focused on improving the analytical capability for detecting banned substances and doping agents in sport and to better understand doping behaviours to inform practical doping deterrence strategies.
Photo 10.1 Commonwealth Games bid team
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S P E C I A Lfeature
m a t c h - f i x i n GIn 2010–11, the Offi ce for Sport supported the Minister for Sport to facilitate a landmark agreement between the Commonwealth and state and territory governments aimed at preservinthe integrity of sport in Australia.
Match-fi xing and corruption in sport has emerged as major issue facing Australian and international sport. It caoccur at all levels of sport, involves the manipulation of a result and includes deliberate underperformance or ‘tanking’deliberately fi xing a points spread or even interfering with the playing surfaceby venue staff . It is a serious global issue that has the potential to undermine public confi dence in the integrity of sport and threatens the credibility of sport around the world.
Australia’s National Policy on Match-Fixinin Sport represents a commitment by all Australian governments to work togetheto address the issue of inappropriate andfraudulent sports betting and match-fi xingactivities. Ensuring Australia has a robusanti-match-fi xing and anti-corruption regime cements Australia’s international credibility as a global leader on this front
Th e policy is underpinned by the following agreed principles:
• a nationally consistent approach to deterring and dealing with match-fi xing in Australia
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• information sharing and highly effi cient networks between governments, major sports betting operators and law enforcers
• consistent national code of conduct principles for sport
• active participation in international eff orts to combat corruption in sport including an international code of conduct and an international body.
Looking forward, the Offi ce for Sport will continue to work closely with state and territory governments, sporting organisations and the betting industry to implement these reforms.
Photo 10.2 Minister for Sport Senator the Honourable Mark Arbib with state and territory sport ministers signing match fi xing agreements.
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Corporate governance 122
External scrutiny 138
Management of human resources 140
Occupational health and safety 151
Purchasing 154
Consultants 155
Freedom of information 158
Advertising and market research 160
Ecologically sustainable development and environmental performance 161
Information technology 167
Discretionary grants 168
C h A P T E R E L E V E N
M A n A g e M e n t A n D A C C o u n tA b i l i t y
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C o R p o R A t e g o v e R n A n C eCorporate governance is the process by which an organisation manages and controls its business, encompassing notions such as authority, accountability, risk management, leadership, direction and ethics.
At PM&C a robust corporate governance framework and a culture of supporting and sustaining our people help us to achieve our objectives.
Elements of our corporate governance framework include business planning, senior leadership, audit, risk management, fraud control, senior management committees, chief executive’s instructions, human resource policies and guidelines, the enterprise agreement, organisational structure, the IT strategic plan and performance agreements.
Terry Moran AO was responsible for the overall leadership of the department. Mr Moran set the strategic direction of the department, determined priorities and resource allocations, delivered organisational performance and led high-priority initiatives. In consultation with the associate and deputy secretaries, he was also responsible for corporate governance and internal communications. Mr Moran also ensured the Prime Minister, the Cabinet and portfolio ministers received the highest quality advice and support.
C h A P T E R E L E V E NManagement and accountability
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Senior executive service band 3 The responsibilities of associate and deputy secretaries as at 30 June 2011 were as follows:
Duncan Lewis AO DSC CSC, National Security Adviser and Associate Secretary. As the National Security Adviser, Mr Lewis was responsible for leading and coordinating Australia’s national security community, and providing direct advice to the Secretary and the Prime Minister on policy matters relating to the nation’s security. As Associate Secretary, he led the National Security and International Policy Group, consisting of:
• Homeland and Border Security Division
• Defence, Intelligence and Research Coordination Division
• the division of the National Security Chief Information Officer/Cyber Policy Coordinator
• International Division.
Gordon de Brouwer PSM, Associate Secretary, provided leadership at the G20 as Australia’s G20 sherpa and was responsible for the Domestic Policy Group, consisting of:
• Deputy Secretary (Social Policy)
• Executive Coordinator (Domestic Policy)
• Industry, Infrastructure and Environment Division
• Economic Division
• Social Policy Division
• the Office of Work and Family.
Ben Rimmer, Deputy Secretary, was responsible for providing strategic policy advice on implementation and delivery issues across government, and for overseeing the Strategy and Delivery Division and the Cabinet Implementation Unit. In June, Mr Rimmer worked on the finalisation of the health reform package prior to taking up another appointment.
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Margot McCarthy, Deputy National Security Adviser and Deputy Secretary. As the Deputy National Security Adviser, Dr McCarthy oversaw and led coordination across a range of national security policy issues and contributed to the leadership of the National Security and International Policy Group, consisting of:
• Homeland and Border Security Division
• Defence, Intelligence and Research Coordination Division
• the National Security Chief Information Officer/Cyber Policy Coordinator
• International Division.
Rebecca Cross, Acting Deputy Secretary Social Policy, was responsible for supporting the Associate Secretary Domestic Policy on domestic and social policy issues, including:
• employment, early childhood, education and skills development
• policies designed to assist families and communities
• homelessness, disabilities and service delivery reform
• whole-of-government advice on Indigenous affairs
• social inclusion and the not-for-profit sector.
Richard Eccles, Deputy Secretary, was responsible for the Arts and Sport Group, including:
• the Office for the Arts
• the Office for Sport.
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Barry Sterland PSM, Acting Deputy Secretary was responsible for the department’s Governance Group, including:
• Corporate Services Division
• Government Division
• Cabinet Division
• Ministerial Support Division
• the CHOGM Taskforce.
Paul Schreier, Acting Deputy Secretary Strategic Policy and Implementation, was responsible for their Group, including:
• Executive Coordinator (Strategic Policy and Implementation)
• Strategy and Delivery Division
• Implementation Division.
Senior executive service band 2 The responsibilities of first assistant secretaries (FAS) as at 30 June 2011 were as follows:
Tim Beresford, FAS Social Policy Division, provided whole-of-government advice and coordination on social policy issues, including health and ageing, immigration and Indigenous affairs policy. He also provided advice, briefing and support on the establishment of the National Mental Health Commission.
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Paul Ronalds, FAS Office of Work and Family, provided whole-of-government advice and support to the Prime Minister on work and family issues, including education, employment, disability, housing, welfare reform and disaster recovery. He also provided advice, briefing and support to the Minister for Social Inclusion on social inclusion policy and measurement, not-for-profit reform, volunteering, philanthropy and social investment.
David Turvey, Acting FAS Economic Division, provided whole-of-government advice and coordination on domestic and international economic conditions and prospects, developments in financial markets, financial sector policy, productivity policy, workplace relations and wages policy, housing policy, fiscal policy and budget initiatives, taxation and superannuation policy, and Commonwealth–state financial relations.
Marie Taylor, Acting FAS Industry, Infrastructure and Environment Division, provided whole-of-government advice on issues covering industry, infrastructure, water, heritage, the environment, regional services, transport, climate change, energy and resources, communications, regulatory reform, competition policy, small business and agriculture policy.
Peta Furnell, Executive Coordinator Domestic Policy, was responsible for a range of high-profile domestic policy issues, including advising on skills reform and the implementation of the Hawke Review of Ministerial Councils, formerly handled by Christopher Robinson, Executive Coordinator Social Policy.
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Dominic English, FAS Strategy and Delivery Division, provided strategic policy advice to government on a range of domestic policy projects.
Rachel Bacon, Acting FAS Implementation Division, was responsible for progress reporting on the government’s key priorities, undertaking implementation assessments on major initiatives, building implementation capabilities across Commonwealth agencies, driving the government’s APS and delivery reform agendas, and specific projects concerning community engagement.
Andrew Hockley, Executive Coordinator Strategic Policy and Implementation, advised about communication of the government’s strategic and COAG priorities.
Rachel Noble, National Security Chief Information Officer and Cyber Policy Coordinator, was responsible for coordinating whole-of-government policies and priorities for improving information management within the national security community, and providing strategic leadership and coordination from a whole-of-government perspective on cyber policy.
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Sachi Wimmer, Acting FAS Homeland and Border Security Division, provided advice and coordination on whole-of-government approaches to border protection, counter-terrorism, crisis and emergency management, non-proliferation and sensitive materials, trans-national and organised crime, national security resourcing and strategic planning, transport security and critical infrastructure protection.
Graham Eveille, Acting FAS Defence, Intelligence and Research Coordination Division, provided whole-of-government advice and coordination on defence policy, operations and capability projects, intelligence policy and coordination, and research in support of national security, including the management of national and international security-related research programs.
Dave Sharma, Acting FAS International Division, supported the Prime Minister’s international engagement through the provision of policy advice relating to Australia’s foreign relations and trade policy interests, including to support participation in regional and international bodies and bilateral meetings.
Philippa Lynch, FAS Government Division, provided policy advice on public administration; parliamentary and electoral matters; legal policy issues; royal commissions; matters relating to the arts, national collecting institutions and cultural heritage; policy issues relating to Australian and foreign honours and the use of the Australian national symbols; and freedom of information and privacy issues.
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Bernadette Welch PSM, FAS Corporate Services Division, managed the department’s human resources, budgeting and financial management systems and operations, security, IT, information management, recordkeeping and building services.
Pete Docwra CSM, Acting Executive Coordinator and Portfolio Chief Information Officer, was responsible for coordinating information communications technology investments across the department and portfolio agencies.
Kim Terrell, Acting FAS Ministerial Support Division, was responsible for managing departmental services to the Prime Minister and portfolio ministers (including the delivery of briefing and correspondence, draft speeches and internal communications material, support for major visits and events, and support for the official establishments and former Governors-General) and implementing departmental governance and operational planning arrangements.
Chris Angus, Acting FAS Cabinet Division, provided support to the Prime Minister and the Cabinet on the full range of Cabinet and Cabinet committee business, and to the Governor-General and the Federal Executive Council.
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Terry Crane, Acting Head of the CHOGM 2011 Taskforce, was responsible for the administrative and logistical arrangements in preparation for the Commonwealth Heads of Government Meeting (CHOGM) in Perth from 28–30 October 2011.
Sally Basser, FAS Office for the Arts, was responsible for providing advice, developing policy and administering programs and legislation to support the performing and visual arts, film and television, the creative industries, the collections sector and Indigenous arts and culture, including delivery of Indigenous programs through a network of staff located around the country. The National Portrait Gallery and Artbank, the national art rental scheme, are part of Office for the Arts, which also works closely with 11 portfolio agencies.
Bill Rowe, FAS Office for Sport, was responsible for sports policy development and a range of programs and special projects such as the 2015 Asian Cup, supporting the 2018 Commonwealth Games bid by the Gold Coast and liaison with sport portfolio agencies.
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S P E C I A Lfeature
p m & c l i B r a r y s E r v i c E sThe PM&C Library provides and promotes high-quality, cost-effective library related services that actively support the strategic role of the department in providing robust policy advice to the Prime Minister and government. Services include the Journal Alert Service, Library Blog and Free Book Exchange.
The Journal Alert Service continues to meet the needs of staff, keeping them up-to-date with published articles in their area of interest by delivering the table of contents of selected titles via email.
The Library Blog communicates news about services and collections. The blog supplements the more traditional means of a fortnightly email and is proving be an effective medium. Staff feedback has been positive, as the information they are receiving is timely, up-to-date and also includes general interest articles and events.
The Library initiated Book Exchange is a free service which enables staff to clear out those pre-loved books and share them with their work colleagues.
Contrary to popular belief that everything is available online via Google, we quite often find that this is not the case. The time is Friday afternoon and the Library’s inbox pings. Desperate request, we need a copy of the Full Employment Policy 1994–95 – we need it now and
it’s not on the web. The librarians scurry off – Parliamentary Papers, check the indexes, head down to the basement to the hardcopy collection, start checking the years, reading the table of contents, look for the volume number, is it there or is it missing. Found (dance in delight), race back upstairs, scan the document and send it off. And breathe a sigh of relief that we were once again able to deliver a document on time and in the required format. We just can’t do without some hardcopy collections.
Photo 11.1 PM&C library team
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S P E C I A Lfeature
p u B l i c s E r v i c E m E d a l r E c i p i E n t sThe Public Service Medal recognises outstanding service by government employees. In 2010–11, two PM&C employees received the Public Service Medal (PSM) for work at PM&C.
Frank Leverett received a PSM for outstanding public service in the successful organisation of Prime Ministerial visits abroad, visits to Australia by heads of government and heads of state, and major ceremonial occasions and events.
As Assistant Secretary of the Ceremonial and Hospitality Branch (CERHOS) at PM&C, Frank’s attention to detail and tireless energy have been integral to the success of many prime ministerial visits overseas and the government’s hosting of visiting dignitaries, heads of state and heads of government over the past six years. Under his direction, CERHOS has supported some 170 visits to Australia and arranged 47 visits to 72 nations by successive Prime Ministers, and Frank has been the key person behind the scenes.
‘It has been a great pleasure and honour to work in CERHOS over a very long period. CERHOS enjoys a very good reputation both domestically and internationally. That is a tribute to, and the result of some very hard work by, a large number of very dedicated staff,’ says Frank.
Ensuring the success of either an overseas trip or major state visit has required Frank to bring together and fuse logistical details, a sensibility for matters of protocol and personal preference, and an awareness of a range of policy, security and diplomatic matters. His ability to perform such tasks so effortlessly is in part due to the breadth of experience that he has accumulated through his more than 40 years of public service. Frank has received personal thanks from Prime Ministers for his service to them and to the office of the Prime Minister.
Gordon de Brouwer received a PSM for outstanding public service in the development of international economic policy, particularly in the formulation of the Australian Government’s agenda to establish the G20 as the pre-eminent global economic forum.
Gordon served as Deputy Secretary Economic in PM&C since early 2008, and he played a critical role in leading the department’s support for the Prime Minister through a period of considerable international economic turbulence. He also provided intensive briefing and policy advice to the Prime Minister and senior ministers at the peak of the global financial crisis, and his outstanding intellectual leadership and drive were central to the government’s response.
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Of particular note is his significant contribution to the development of the Australian Government’s agenda to establish the G20 as the pre-eminent global economic forum and Australia’s international economic engagement, including through Asia-Pacific Economic Cooperation. Gordon said: ’I have been involved in G20 in different ways since its inception – at the Reserve Bank in 1999 for the first finance ministers and central bank governors meeting, at Treasury when we hosted the meeting in 2006, and at PM&C since the first leaders summit in November 2008. It has been a great privilege to be part of this team and to see first-hand how Australia contributes to, and at times leads, decision making on international economic cooperation and rules making. These summits are important to our own economic prosperity.’
In recognition of his leadership and outstanding international reputation, Gordon was appointed Australia’s G20 sherpa in June 2010. Of this experience, he said, ‘It has been a particular honour to be the Prime Minister’s G20 sherpa (a wonderfully curious term) for the past couple of summits.’
Photo 11.2 Mr Frank Leverett PSM
Photo 11.3 Dr Gordon de Brouwer PSM
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CommitteesTo support the Secretary, we have a number of committees. These are:
• the Executive Group
• the Senior Management Group
• the Corporate Management Group
• the Audit Committee
• the Consultative Committee
• the Health and Safety Committee
• the Security Committee
• the Graduate Support Group.
Executive Group
The Executive Group is made up of the Secretary and associate and deputy secretaries and deals with management decisions and issues across PM&C. It considers strategic issues impacting on the department, including any ongoing or emerging risks, and monitors our performance in delivering our outcomes.
Senior Management Group
The Senior Management Group comprises the Executive Group, division heads and executive coordinators. The group meets weekly to discuss key business issues, including business priorities, key commitments and any ongoing or emerging risks.
Corporate Management Group
The Corporate Management Group comprises the Executive Group plus the First Assistant Secretary, Corporate Services Division. The group meets monthly to discuss key issues and priorities affecting corporate services.
Audit Committee
The objective of the Audit Committee is to provide independent assurance and assistance to the Secretary and the Executive on PM&C’s risk, control and compliance framework, and its external accountability responsibilities.
At 30 June 2011 the Audit Committee comprised:
• Mr Barry Sterland, Chair and acting Deputy Secretary Governance
• Mr Tim Beresford, member and FAS Social Policy Division
• Ms Rachel Noble, member and National Security Chief Information Officer
• Mr Paul McInnes, member and Assistant Secretary, Office for the Arts
• Mr Will Laurie, external independent member
• Ms Jenny Morison, external independent member.
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During 2010–11 the Audit Committee held quarterly meetings, in October, December, March and June, and financial statement meetings in June, July and August. The Audit Committee:
• approved our internal audit strategic work program
• approved our internal audit annual work program
• approved internal audit reports on performance and compliance issues
• reviewed our financial statements
• recommended the approval of our annual Certificate of Compliance
• reviewed our fraud control plan
• reviewed our risk management plan.
Consultative Committee
The Consultative Committee represents all employees at PM&C and provides a forum for management and employees to discuss matters affecting the workplace. Employee representatives were elected from each division. Employees were encouraged to contribute their ideas or raise any concerns they may have about the workplace by talking to their divisional representatives.
The membership of the consultative committee comprised the Deputy Secretary Governance as the chair, two management representatives and 19 divisional representatives. The committee met four times during 2010–11 and considered a range of issues including Pulse (staff ) survey results, workplace relations, performance management and capability development initiatives.
Health and Safety Committee
PM&C’s Health and Safety Committee is formed in accordance with the Health and Safety Management Arrangements (HSMA) which meet the requirements of the Occupational Health and Safety Act 1991.
The committee is chaired by the Assistant Secretary, People, Capability and Performance Branch (PCP). Membership includes management representatives and health and safety representatives from across PM&C. The role of the committee is to facilitate discussion and cooperation between the employer and employees regarding occupational health and safety (OH&S) issues in the workplace. The committee met quarterly.
The committee, in conjunction with PCP, is also responsible for assisting in the development of the HSMAs through consultation with all staff. The HSMA is a document concerning the management of OH&S in an organisation that must be developed in consultation with employees and then overseen and governed by the Health and Safety Committee.
Due to the machinery of government changes during 2010–11, the HSMA is being reviewed and amendments being considered to revise Designated Work Groups.
Please see page 151 for discussion of our policies and performance on occupational health and safety.
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Security Committee
The Security Committee provides advice to the Secretary on actions to counter or manage security threats. During 2010–11 the Security Committee considered issues including:
• ICT security policy
• password policy changes
• email security classification
• website blocking
• security breaches
• security incidents and investigations.
Graduate Support Group
The role of the Graduate Support Group (GSG) is to ensure the Graduate Development Program and graduate recruitment strategy meet the needs of the department. The GSG facilitated communication, consultation, cooperation and input from divisions and graduates on matters that affected the department’s graduate program.
The GSG was chaired by Mr English FAS Strategy and Delivery Division and the membership comprised one senior executive officer (SES) from each of the five departmental groups, one former graduate and the Assistant Secretary PCP. The GSG met nine times during 2010–11.
Risk managementA positive culture of risk management is a central element of our operations and essential to our success in achieving outcomes. The department’s risk framework requires analysis to be undertaken at a number of levels, including strategic, operational, and financial and fraud risk. Risk must also be considered in key decision making activities and, in particular, when undertaking policy development and giving policy advice; in planning for and undertaking significant projects and procurements such as major events and taskforces; when outsourcing services, managing contracts and delivering programs; and when providing secretariat and support services.
Senior management committees routinely consider ongoing or emerging risks that may impact on the achievement of objectives. Monitoring and reporting of risk through these committees or, more formally, through the department’s operational planning and reporting process ensures ongoing oversight of developments in this area.
The department’s risk management plan is updated annually. This annual update is informed by feedback from senior managers, outcomes from the department’s annual internal audit program, as well as views of the Audit Committee and the Executive Group. The Executive Group is responsible for approving the plan, monitoring implementation of treatment strategies and tracking risks. The revised 2010–11 plan was approved on 21 December 2010.
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S P E C I A Lfeature
ta l E s o f t w o E x- G r a d u a t E sGraduating from the PM&C Graduate ProgramWhile our graduates get to experience rotations in a range of areas during the PM&C Graduate Program, it is only the beginning of their PM&C career. Two of our 2010 graduates, Brett Easton and Tess Whittakers, now advisers in the Office of the National Security Chief Information Officer (NSCIO)/Cyber Policy Coordinator (CPC), talk about life in the department after ‘graduating’ from the graduate program.
We work across the broad agenda of the Office of the NSCIO/CPC, which includes providing strategic direction and coordination for information management across the national security community and coordinating the whole-of-government approach to cyber policies and activities. This broad spectrum provides us with exposure to a diverse range of policy areas – from industry engagement on cyber issues to the harmonisation of information management practices across the national security community and the international aspects of cyber policy.
Many people think that because we’re working on cyber that ours are technical roles. However, many of the policy questions that we encounter are more about human behaviour – how people react and use technological advances
and the roles and responsibilities of government in this space.
The opportunity to begin our public service careers after the graduate program in the diverse and dynamic environment that is the Office of the NSCIO/CPC has been a valuable development experience. Working together as fellow former graduates also has its advantages, enabling us to continue to share lessons learned. Making the transition from the graduate program to the role of a policy officer has also been made easier by having someone else in the office who understands the change.
We’re both learning so much. We have had the opportunity to work on a wide range of issues, including international cyber policy, which has been particularly exciting. This diversity has ensured that our work is always interesting and challenging. We’ve also been able to build networks with a diverse range of stakeholders.
Photo 11.4 Tess Whittakers and Brett Easton
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Ethical standards PM&C is strongly committed to promoting and maintaining the standard of behaviour outlined in the APS Values and Code of Conduct as set out in the Public Service Act 1999. The APS Values and Code of Conduct is an integral part of the human resources framework and is the foundation to all human resources policies and procedures.
All new starters are provided with information and promotional material such as the Australian Public Service Commission’s (APSC) APS Values and Code of Conduct bookmark in their new starter pack. Information regarding the APS Values and Code of Conduct was included in the induction program for all new employees. Managers and employees also have access to information regarding the APS Values, the Code of Conduct and the Code of Conduct for Ministerial Staff via the intranet.
We reviewed the Bullying and Harassment Prevention Guidelines late in the year during the enterprise agreement negotiations, with the new version anticipated for release in July 2011. All employees were given the opportunity to comment on the guidelines, along with other amended guidelines, during the consideration period for the proposed enterprise agreement. Some new additions were made to the Harassment Contact Officer Network, with two new members joining the network after the machinery of government changes.
The department’s management practices incorporate the APSC values and guide our staff in their day-to-day work. These values are embedded in the department’s Performance Management and Development Scheme, with staff appraised against the values.
The Assistant Secretary PCP represents the department on the Ethics Contact Officer Network (ECONET). The network plays a key role in supporting the ongoing work of the Ethics Advisory Service.
Performance against service charter and complaintsTraditionally the department has not provided services directly to the public and, as such, did not have a service charter in place. Our key clients are the Prime Minister, the Cabinet Secretary, portfolio ministers and the Cabinet. In the performance report for each of our output groups, we have assessed how satisfied our key clients were with our services.
Following the machinery of government changes in 2010–11, the department became responsible for significant program areas within the Office for Sport, the Office for the Arts and the Office of Work and Family. As a result, a service charter will be developed, with a focus on our program stakeholders.
Otherwise, any complaints received are dealt with appropriately and as the situation demands. This might be a direct response, an internal investigation, escalation to a senior officer, mediation or an external review. We aim to manage any complaints in line with the principles of the Better practice guide to complaint handling produced by the Commonwealth Ombudsman.
e x t e R n A l s C R u t i n y
External audit - Protection and security of electronic informationThe department was involved in an Australian National Audit Office (ANAO) audit of the protection and security of electronic information held by Australian Government agencies.
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The audit report notes that the Attorney‐General has overall policy responsibility for Australian Government protective security arrangements, while chief executive officers are responsible for the protective security arrangements within their own organisations. This includes the requirement to ‘actively manage security risks associated with electronic data transmission, aggregation and storage’. Given the increasing reliance on information and communications technology (ICT) to deliver services, electronic information security is an increasingly important element of the overall protective security framework.
The objective of the audit was to assess the effectiveness of Australian Government agencies’ management and implementation of measures to protect and secure their electronic information, in accordance with Australian Government protective security requirements.
The audit is part of a program of cross‐agency performance audits that examines processes supporting the delivery of services by government agencies. PM&C participated in the audit with the Australian Office of Financial Management, ComSuper and Medicare Australia. These agencies were selected as they represent a general cross‐section of agencies and their associated ICT systems.
To address the audit objective, the ANAO examined the extent to which agencies had an effective framework and controls in place across the following four areas: information security framework, network security management, access management and equipment security.
The audit also assessed whether the selected agencies had implemented the recommendations of previous ANAO audit reports relating to ICT security management, installation of security patches, review of event logs and maintenance of ICT documentation. The protection and security of non-electronic information and government information held by third parties, such as service providers, was not examined in this audit.
Overall, the audit concluded that the measures examined in the audited agencies to protect and secure electronic information were generally operating in accordance with government protective security requirements. The agencies had established information security frameworks; had implemented controls to safeguard information, to protect network infrastructure and to prevent and detect unauthorised access to information; and had controls in place to reduce loss, damage or compromise to ICT assets.
The audit highlights several areas of better practice and makes four recommendations aimed at improving approaches to the protection and security of electronic information. The full report is available on the ANAO website, anao.gov.au.
Audits of relevance to the portfolioPortfolio agencies were involved in the following ANAO cross-portfolio audits:
• The design and administration of the Better Regions program – tabled 27 January 2011
• The establishment, implementation and administration of the council allocation component of the Regional and Local Community Infrastructure program – tabled 18 May 2011.
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Other external scrutiny The department has not been the subject of any judicial decisions or decisions of administrative tribunals during the reporting period that have had, or may have, a significant impact on our operations.
M A n A g e M e n t o F h u M A n R e s o u R C e s In 2010–11 we made a significant investment in developing the capability and capacity of our employees by:
• targeting and tailoring recruitment to attract outstanding employees at all levels from the public, private and not-for-profit sectors, and academia
• increasing our investment in learning and development to ensure we have highly qualified and capable employees
• promoting talent management within PM&C through our capability development initiatives and performance management practices
• providing flexible working conditions to enable employees to manage their work and personal commitments.
These initiatives have enabled the department to deliver high-quality policy advice, program management and government administration to support the Prime Minister, the Cabinet Secretary, portfolio ministers and the Cabinet.
Our peopleAs at 30 June 2011, we had a total of 1 090 employees, including part-time and non-ongoing employees (based on headcount). The increase in our workforce is as a result of the transfer of arts and sports employees from other agencies under machinery of government changes implemented following the 2010 election. In addition to this, our overall workforce increased due to the engagement of employees to work on the CHOGM 2011 Taskforce. A detailed profile of our workforce is provided in Figure 11.1.
Approximately 64 per cent of our workforce is female and approximately 72 per cent are under the age of 45. We have seen a shift in the overall profile of the department due to the impact of the machinery of government changes. We offer staff central agency experience and an ability to enhance understanding and experience in a whole-of-government environment.
To ensure we have the ability to attract and retain high-calibre candidates in a very competitive environment we:
• offer competitive salaries
• have flexible working conditions to enable employees to balance their work and personal/caring commitments
• conduct employee surveys to gain essential feedback and identify issues that are of significant employee value.
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Figure 11.1 Staff distribution at 30 June 2011
PM&C ongoing functions
Cabinet Division
Number of employees at 30 June 2011
29
Corporate Services Division
Defence, Intelligence and Research Coordination Division
Economic Division
109
23
48
Executive 24
Government Division 46
Graduates 27
Homeland and Border Security Division
Implementation Division1
Industry, Infrastructure and Environment Division
International Division
27
23
30
25
Ministerial Support Division
National Security Chief Information Officer/Cyber Policy Coordinator
46
10
Office for the Arts2 259
Office for Sport
Office of Work and Family
Social Policy Division
Strategy and Delivery Division
Ongoing functions total
Associated functions
43
63
35
40
907
CHOGM 2011 58
COAG Reform Council 28
Non-divisional/inoperatives3
Total employees (i.e. head count) at 30 June 2011
97
1 090
Notes:1 Incorporates the Cabinet Implementation Unit – 15 employees.2 Includes 57 National Portrait Gallery staff.3 Includes 7 employees engaged for the support of former Governors-General and staff currently inoperative
(both paid and unpaid). Inoperatives include employees on paid leave greater than three months (maternity leave, long service leave, annual leave) and employees on leave without pay (external temporary transfers, overseas travel or study) and other temporary employment in the interests of the APS.
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Figure 11.2 Human resource workforce profile
At June 2009 At June 2010 At June 2011
Workforce Non- Non- Non-profile Ongoing ongoing Total Ongoing ongoing Total Ongoing ongoing Total
Classification of job
Secretary 1 0 1 1 0 1 1 0 1
Special Adviser 0 0 0 0 0 0 1 0 1
SES Band 3 6 0 6 8 1 9 11 0 111
SES Band 2 13 0 13 18 0 18 19 1 202
SES Band 1 40 1 41 41 0 41 59 0 593
Executive Level (EL) 2 100 6 106 107 9 116 158 9 167
EL1 163 14 177 173 9 182 282 19 301
PM&C Band 2 (APS4–6) 217 19 236 227 15 242 416 50 466
PM&C Band 1 (APS1–3) 18 4 22 15 4 19 26 11 37
Graduate 15 0 15 29 0 29 27 0 27
Total 573 44 617 619 38 657 1 000 90 1 090
Working part time 22 5 27 26 4 30 71 3 74
Long-term leave with pay 16 0 16 25 0 25 28 0 28
Location4
ACT 555 42 597 591 38 630 907 77 984
NSW 14 1 15 23 0 23 44 4 48
NT 0 0 0 0 0 0 13 1 14
Qld 1 1 2 1 0 1 12 1 13
SA 0 0 0 0 0 0 5 5
Vic. 3 0 3 3 0 3 9 1 10
WA 0 0 0 0 0 0 9 6 15
Tas. 0 0 0 0 0 0 0 0 0
Overseas 0 0 0 1 0 1 1 0 1
Total 573 44 617 619 38 657 1 000 90 1 090
continues…
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At June 2009 At June 2010 At June 2011
Workforce Non- Non- Non-profile Ongoing ongoing Total Ongoing ongoing Total Ongoing ongoing Total
Staff age profile4
Age < 25 33 3 36 37 6 43 59 15 74
Age 25 – 34 220 20 240 242 15 257 386 44 430
Age 35 – 44 163 7 170 175 7 182 273 15 288
Age 45 – 54 112 5 117 124 4 128 208 8 216
Age 55 – 64 42 9 51 38 6 44 65 7 72
Age 65 + 3 0 3 3 0 3 9 1 10
Total 573 44 617 619 38 657 1 000 90 1 090
Equal employment opportunity group participation
Female 372 20 392 396 22 418 645 54 699
NESB5 29 3 32 28 2 30 79 13 92
Indigenous 6 0 6 6 0 6 31 2 33
People with a disability 9 0 9 7 0 7 15 1 16
Employees volunteering personal data 74% 73% 67%
Notes:1 At 30 June the SES Band 3 figures include one inoperative employee, one employee working offline to support the
finalisation of the health reform package, and non-core functions such as the National Mental Health Commissioner Designate and Head of the COAG Reform Council. Inoperative employees are on leave without pay for various purposes such as to take up a fixed term statutory appointment or transfer/secondment to another agency, accompany a spouse on an APS posting or for personal/carer purposes.
2 The 2010–11 SES Band 2 figure includes two inoperative employees.3 The SES Band 1 figure includes seven inoperative employees. 4 This annual report corrects the following inconsistency in the 2009–10 annual report: A non-ongoing staff member
was reported as an ongoing employee by location and staff age profile.5 Non-english speaking background.
Disability ReportingSince 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the APSC’s State of the service report and the APS statistical bulletin. These reports are available at www.apsc.gov.au. From 2010–11, departments and agencies are no longer required to report on these functions.
The Commonwealth Disability Strategy has been overtaken by a new National Disability Strategy which sets out a ten year national policy framework for improving life for Australians with disability, their families and carers. A high level report to track progress for people with
continued…
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disability at a national level will be produced by the Standing Council on Community, Housing and Disability Services to the Council of Australian Governments and will be available at www.fahcsia.gov.au. The Social Inclusion Measurement and Reporting Strategy agreed by the Government in December 2009 will also include some reporting on disability matters in its regular How Australia is faring report and, if appropriate, in strategic change indicators in agency annual reports. More detail on social inclusion matters can be found at www.socialinclusion.gov.au.
Workplace agreements During 2010–11 we successfully negotiated two new enterprise agreements, which came into effect in December 2010 and July 2011 respectively. Figure 11.3 sets out data on employment agreements.
Figure 11.3 Trends in employment agreements
Agreements 2007 2008 2009 2010 2011
Australian Workplace Agreements (AWAs)1
SES 50 31 0 0 0
% of SES staff covered by an AWA 100 74 0 0 0
Non-SES 371 156 0 0 0
% of non-SES staff covered by an AWA 61 37 0 0 0
Section 24(1) determination (S24)
SES 0 11 60 68 76
% of SES staff covered by a S24 determination 0 26 100 100 100
Non-SES 0 0 0 0 0
Enterprise Agreement (EA)
SES 0 0 0 0 0
Non-SES 234 265 556 588 1 014
% of non-SES staff covered by EA 39 63 100 100 100
Total3 655 463 6162 6562 1 089
Notes:1 The department stopped offering AWAs to staff, both new and existing, in November 20072 The figure includes both ongoing and non-ongoing staff3 Total staff does not include the Secretary
Productivity gains We continued to work towards achieving the productivity initiatives that were an integral part of the 2010–11 enterprise agreement. These measures included an organisational review aimed at enhancing our ability to deliver high-quality, responsive support and advice to the Prime Minister and the government. Through innovative development of people, structures and processes, the aim is to deliver results that will improve our collective and individual productivity.
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Figure 11.4 Trends in base salary
Trends at 30 June 2009 2010 2011
Min Max Min Max Min Max
PMC Band 1 (APS1–3) 36 870 51 152 38 529 53 453 39 685 55 057
PMC Band 2 (APS 4–6) 52 813 75 399 55 189 78 792 56 845 88 900
PMC Band 3 (EL1) 81 045 90 347 84 692 94 412 92 806 113 122
PMC Band 4 (EL2) 94 331 112 268 98 576 117 320 108 019 136 145
SES Band 1 124 000 169 000 135 000 176 777 139 050 182 080
SES Band 2 154 000 209 000 175 000 215 270 187 500 221 728
SES Band 3 182 000 307 000 249 000 333 413 249 000 298 700
Secretary The Secretary’s remuneration is determined by the Prime Minister after taking into account the recommendations of the Remuneration Tribunal.
Senior Executive remunerationAll SES officers are employed under the terms of a determination made under section 24 of the Public Service Act 1999, supplemented by a common law contract detailing remuneration. The amount of remuneration received by SES officers in the department is determined on an individual basis by the Secretary. Executive remuneration is on page 246 of the financial statements.
Performance bonuses Performance bonuses were made available to the following employees:
• EL 1 and 2 employees who receive a rating of ‘superior’ or ‘outstanding’
• EL 1 employees at the top pay point who receive a rating of ‘fully effective’
• EL 2 employees at the third, fourth or fifth pay points who receive a rating a ‘fully effective’.
As part of the negotiations for the 2010–11 enterprise agreement, performance pay was rolled into base salary for eligible EL employees as at 22 December 2010. Eligible EL employees were those who were eligible to receive performance pay in the 2009–10 performance cycle.
Figure 11.5 2010–11 performance bonus paid
Level
EL 1
Staff paid
123
Amount $ paid
683 912
Average $
5 560
Range $min
1 030
Range $ max
11 794
EL 2 103 767 939 7 456 894 14 733
Total 226 1 451 851 6 424 894 14 733
Workforce planning, retention and turnover Our ongoing employee turnover rate in 2010–11 decreased slightly compared to the previous year. The department continues to use a variety of strategies such as capability development, health and wellbeing programs, flexible working arrangements and targeted recruitment processes to reduce ongoing employee turnover.
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y Figure 11.6 Human resources workforce profile – numbers, commencements, retentions and separations
Employees1
Total employees
Non-ongoing staff (included in total employee numbers)
Commencements
2007
655
204
2008
464
30
2009
617
44
2010
657
38
2011
1 090
90
Ongoing non-APS recruits
Graduates 25 19 15 29 27
Other non-APS recruits 42 31 46 76 77
Ongoing APS recruits
Promoted into PM&C 26 6 10 8 20
Transferred into PM&C 91 71 73 72 103
Recruited as non-ongoing
Total
203
387
101
228
65
209
62
247
76
303
Retention of ongoing employees
Turnover rate 26%2 33%2 24% 23% 22%
Promoted within PM&C 28 27 44 45 92
Non-ongoing transfer out of PM&C 14 37 9 9 51
Separations
Non-ongoing arrangement ceased
Transferred out of PM&C
62
55
2173
82
12
71
56
45
62
88
Promoted out of PM&C 19 26 24 24 21
Machinery of government change
Resignation or retirement
Retrenchment
14
42
0
26
32
0
n/a
29
2
n/a
60
1
4
68
4
Invalidity/death
Total
2
194
0
383
0
138
1
187
1
248
Notes:1 Numbers of employees are for each financial year at 30 June.2 Based on separations of ongoing employees, not including separations due to machinery of government changes.3 Includes 180 APEC Taskforce staff concluding their contracts.
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Developing our staff
Performance management
The Performance Management Development Scheme (PMDS) is the framework that outlines the department’s approach to managing and enhancing the performance of our employees. The PMDS allows us to manage performance and understand and achieve our business outcomes, and aligns with our role to support the Prime Minister in the good governance of Australia.
The PMDS was reviewed during 2010 and implementation of a number of recommended enhancements was undertaken. Implementation will continue into 2011–12.
Recruitment
Due to the pause in recruitment associated with the extended caretaker period and the machinery of government changes, there was a significant increase in the number of recruitment processes undertaken during the period following the election to 30 June 2011.
We managed:
• two APS1–6 level bulk recruitment processes in two streams: policy and administration/governance
• an EL 1 and 2 bulk recruitment process in two streams: policy and administration/governance
• an APS4–5 and APS6 level bulk recruitment process for executive assistants
• a bulk recruitment process for employees to participate in the CHOGM 2011 Taskforce
• a multi-agency SES Band 2 bulk recruitment process
• a rolling recruitment process for APS4–6 and EL1–2 for Domestic Policy Group.
In addition, a number of individual recruitment processes were undertaken for roles requiring specific or technical skills.
Capability development
We maintained our commitment to building and enhancing the capability of our employees in order to meet the strategic needs of the department and the broader APS. In 2010–11, the Capability Development Framework (CDF) provided the foundation to actively encourage and support development opportunities for all employees. The CDF aims to:
• foster PM&C’s culture of professional development
• strengthen the department’s capability
• enhance the leadership and technical expertise of our employees
• highlight development initiatives in order to attract and retain high-performing employees
• build on the core capabilities of employees by facilitating a significant learning opportunity for all employees every two years.
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In 2011, the Capability Development Reference Group (CDRG) was established to provide strategic direction to the initiatives delivered as part of the CDF. The group was chaired by the Deputy Secretary Governance and membership comprised SES, EL and APS employees. The group met three times during 2010–11.
The CDF initiatives addressed five areas of development: leadership, professional development, core skills development, mandatory training and graduate development. Employees had access to the following types of development:
• formal training and structured learning
• secondment and cross-agency project work
• on-the-job training, mentoring and coaching
• seminar and Executive Lunchbox discussions
• online learning.
Leadership development
Selected SES and EL employees participated in a range of leadership programs during the year including:
• the Executive Fellows Program and Executive Master of Public Administration, facilitated through the Australian and New Zealand School of Government (ANZSOG)
• the 2010 Global Leadership program to the PRC
• the APSC’s Leading Australia’s Future in Asia program
• Canberra Cranlana Public Service Colloquium
• the Australian Davos Connection Future Summit.
These programs provided our future leaders with exposure and access to best practice methods in public administration and policy, as well as an opportunity to network with national and international experts.
We continued to foster our relationship with the Australian National University through participation in leadership programs facilitated by the Australian National Institute of Public Policy (ANIPP) and the National Security College (NSC) such as the National Security Senior Executive and Executive Level 2 development programs.
New leadership courses offered in-house included resilient leadership and self as a leader. These programs focused on developing skills to cope with changes in the work environment while at the same time motivating and leading others.
Professional development programs
Professional development opportunities were aimed at developing role specific skills and capabilities. A total of 57 employees attended short courses facilitated by ANIPP covering topics such as public policy, machinery of government, innovation and strategic thinking, economics, and Indigenous and social policy. In addition, 10 employees attended professional development courses facilitated by the NSC.
During 2010–11, all employees were able to access the department’s study assistance scheme and the Career Advisory Panel. We provided support to 55 employees through the study assistance scheme, which enabled them to undertake formal courses of study relevant to their work and the work of the broader APS. A total of 59 employees
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accessed the Career Advisory Panel, which is a panel of independent consultants that provide career coaching advice to address issues such as resume writing, interview skills, leadership and career development plans.
During the year, employees were encouraged to attend the Secretary’s seminar series to gain insight from international and national experts on a range of current policy issues, including mental health, national security and climate change. In addition, employees were invited to participate in the Executive Lunchbox series to gain exposure to other areas of the department.
Core skills development
Core skills development programs are aimed at broadening employees’ capability and developing skills that are transferrable across the wider APS. In 2010–11 programs included:
• project management
• policy development and analysis
• economics for non-economists
• introduction to law
• stakeholder engagement
• conflict resolution
• client service
• government writing skills
• building high-performance memory
• speed reading
• effective meeting management
• minute taking
• Microsoft skills applications.
Some training was undertaken in-house, facilitated by our employees and aimed at building awareness of government processes. These sessions included preparing question time briefs, Senate estimates briefs and questions on notice, introduction to the Budget and Senate estimates processes, speech writing, brief writing, introduction to Cabinet operations, and developing and analysing new policy proposals.
Mandatory training
New employees were provided with induction training on commencement with the department. In January 2011, we reintroduced a monthly face-to-face induction program to complement the online induction program. The face-to-face program provides new employees with an overview of the functions of the department with presentations delivered by members of the executive group. The program also includes sessions on key compliance issues such as the APS Values and Code of Conduct, security, risk management and fraud prevention and control. In addition, employees new to the APS were provided access to the APS online induction module through the department’s intranet. Newly appointed SES officers were invited to attend the APSC SES orientation program.
In 2010–11 employees also attended cultural awareness training to build an understanding and appreciation of Aboriginal and Torres Strait Islander peoples.
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Graduate program
Our graduate development program (GDP) provides a unique opportunity for graduates to be involved with the major issues of government in a rewarding, supportive and challenging environment. Graduate recruitment for the 2011 graduate program was undertaken from April to June 2010 and resulted in 786 applicants from a variety of academic and employment backgrounds. We employed 27 graduates for the 2011 program, including two Indigenous graduates, who were recruited through the APSC Pathways program.
The 2011 GDP is a 12-month program designed to complement on-the-job experience with more formal opportunities for learning and development. During the year, graduates participate in three job rotations within the department, with the intention that they be placed in areas that will enhance their knowledge and capability and help them to gain exposure to new facets of government policy. In addition, they study towards a Diploma of Government, to be awarded by the Australian Institute of Management. The diploma covers topics such as government processes, policy writing, research, analysis and communication skills, as well as foundations of the APS environment such as ethics, workplace safety and risk management. Graduates also attended a number of core and mandatory training programs offered through the CDF.
In 2011, a formal mentoring program was introduced which matched an EL2 or SES officer with each graduate. The program aims to provide graduates with professional support and guidance to navigate through the stages of their careers, both within the department and more broadly as public servants. The program commenced in May 2011 for the 2010 graduate cohort and will be rolled out from July to the 2011 cohort.
Graduates were encouraged and provided opportunity to gain exposure to the broader APS. This was facilitated through initiatives such as central agency networking functions held annually, the APSC networking functions and participation in the APSC Great Graduate Debate.
Vacation employment program
In December 2010, we welcomed 10 university students to the department through the vacation employment program (VEP). This program provides outstanding university students an opportunity to learn about the processes of government from the inside and to contribute to the work of PM&C. It also provides an avenue to encourage students to continue employment with the department after the completion of their studies, either as graduates or general entry level. Six VEP participants continued to work at PM&C on non-ongoing contracts after the end of the program, giving them further exposure to the work of the department. Of these, one has been successful in securing an ongoing position.
Internship program
In 2010–11, the department placed five interns. The intern program provides individuals undertaking postgraduate study at elite institutions with the opportunity to contribute to challenging public policy projects that address some of the highest priority policy issues facing Australia and to gain exposure to the APS environment.
Industry secondment program
The PM&C industry secondment program sources individuals from professional services firms in the private sector and from other APS agencies to work as non-ongoing
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employees, with contracts ranging from three to nine months. The program gives participants access to high-quality and transferable skills, and strategy, analysis and policy project management experience. It also aims to strengthen our relationship with external expertise and to provide a development experience for the individuals involved. Secondees are usually placed at the APS6 or Executive Level 1, depending on their skills and experience (see special features at page 44 and 60).
Prime Minister’s Indigenous Executive Leadership Fellowship
The Prime Minister’s Indigenous Executive Leadership Fellowship is a joint initiative of PM&C and ANZSOG. The aim of this initiative is to increase and foster Indigenous leadership within the APS at a high level. The successful applicant was appointed in January 2011 to an Executive Level 2 position within the department and is currently participating in a two-year, part-time Executive Master of Public Administration supported by ANZSOG. Mentoring and career guidance is provided throughout the scholarship, as is the option for a tailored development program, including rotations within PM&C and other departments.
o C C u p A t i o n A l h e A lt h A n D s A F e t yPM&C is committed to providing and maintaining a safe and healthy workplace and meeting its obligations under the Occupational Health and Safety Act 1991 (OHS Act) and the Safety, Rehabilitation and Compensation Act 1988 (SRC Act).
PM&C’s Health and Safety Committee is formed in accordance with the Health and Safety Management Arrangements (HSMA) which meet the requirements of the OHS Act. The committee is chaired by the Assistant Secretary PCP. Membership includes management representatives and health and safety representatives from across PM&C. Due to machinery of government changes, the HSMA is being reviewed and amendments are being considered to revise Designated Work Groups.
We commenced in-house service delivery of all occupational health and safety (OH&S) functions in May 2011.
During the year we continued to implement and communicate strategies proactively to manage health and safety issues. The 2010–11 health and wellbeing program facilitated employee health and awareness through a range of activities, promotions, education and early intervention strategies.
We undertook a number of activities aimed at preventing illness and injury in the workplace, including preventative vaccinations for influenza, and workstation assessments. During the year, 334 employees received flu vaccinations and 166 participated in a workstation assessment.
First aid officers are located throughout the department to ensure immediate assistance is available when required. First aid officers meet as a group on a quarterly basis to discuss relevant safety or incident matters and to monitor their roles and responsibilities.
As required under section 68 of the OHS Act, there were four notifications of an accident or dangerous occurrence during the year. There were no directions or notices issued to PM&C under the OHS Act (sections 29, 45, 46 and 47).
In an effort to create a working environment where all employees, contractors and visitors are treated with dignity, courtesy and respect, we have a well-established network of trained harassment contact officers.
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S P E C I A Lfeature
r E c o n c i l i a t i o n a c t i o n p l a n 2 0 1 1 – 1 3On 17 March 2011, PM&C celebrated the launch of its 2011–13 Reconciliation Action Plan (RAP) with traditional cultural performances.
The event commenced with a Welcome to Country by Ngunnawal elder Aunty Agnes O’Shea, followed by an address from the Secretary and Dr Tom Calma of Reconciliation Australia’s board of directors.
‘This RAP builds on the achievements of PM&C to date and sets out a program of practical defined targets that encourage and foster positive relationship building within our department,’ the Secretary said.
The RAP integrates the department’s Indigenous initiatives, particularly in policy and program delivery, with the initiatives and commitments shared by the broader Australian Public Service.
PM&C’s RAP has been developed in consultation with Indigenous and non-Indigenous staff dedicated to furthering reconciliation within the department. The RAP is available on the department’s intranet and website, as well as on Reconciliation Australia’s website.
The RAP is an important part of the department’s commitment to Closing the Gap. It has three key focuses:
• relationships – engage, communicate and develop relationships
• respect – acknowledge and celebrate Aboriginal and Torres Strait Islander diversity
• opportunities – PM&C’s Capability Development Framework incorporates training, including mandatory cultural awareness training, developed in consultation with Reconciliation Australia.
In developing this plan, the department has made commitments to Indigenous and non-Indigenous people, both employees and the greater community. Our key commitments include:
• establishing an Indigenous Network
• ensuring acknowledgement of traditional owners is an essential part of all formal PM&C presentations and events
• providing training opportunities to Aboriginal and Torres Strait Islander employees through the Capability Development Framework
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• monitoring and reporting on progress toward achieving RAP objectives.
PM&C considers it essential to take the lead in demonstrating our commitment to the initiatives in the RAP. As well as achieving targets set out in the plan, the department commits to recognising and celebrating key cultural and social events of importance to Aboriginal and Torres Strait Islander peoples.
Richard Eccles, Deputy Secretary (Arts and Sports), and Rebecca Cross, Acting Deputy Secretary (Domestic Policy), are the Executive Indigenous Champion and Executive Diversity Champion, respectively.
The Executive Indigenous Champion, in line with the department’s RAP, works closely with the People, Capability and Performance (PCP) Branch to promote and encourage Indigenous affairs within PM&C. The Executive Diversity Champion plays a similar role for disability and other diversity interests, in line with the department’s Workplace Diversity Strategy.
The Executive Indigenous Champion:
• supports Aboriginal and Torres Strait Islander employees within the department
• promotes participation in either the department’s Indigenous Network or in other APS Indigenous coordinated networks
• works with the Australian Public Service Commission, our Aboriginal and Torres Strait Islander employees and PCP Branch to refine the recruitment process
• promotes Aboriginal and Torres Strait Islander employment both within the agency and externally
• provides strategic direction, support and encouragement of initiatives under the Indigenous Employment Strategy
• works closely with the agency’s Indigenous Employment Coordinator to assist in implementing the RAP.
The Executive Diversity Champion works with the Executive Indigenous Champion to achieve a cohesive approach to diversity and is responsible for four key diversity groups:
• people with disability
• Aboriginal and Torres Strait Islander peoples
• minority groups
• mature aged employees.
Photo 11.5 Launch of the Reconciliation Action Plan
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Figure 11.7 Health and safety performance
Detail 2007–08 2008–09 2009–10 2010–11
Proactive measures
Workstation assessments 124 172 161 166
Flu vaccinations 220 261 267 334
Wellbeing indicators
Staff receiving employee assistance 36 27 31 56
Bullying and harassment
Incident management
Notifications of accidents and dangerous occurrences (s68 occurrences)
Directions or notices issued to PM&C under the OHS Act (s29, 30, 45, 46, 47)
0
1
0
0
2
0
1
1
0
0
4
0
Work-life balancePM&C continues its commitment to provide supportive arrangements to employees to facilitate work-life balance, including flexible working hours, working from home opportunities, and access to part-time work and job-sharing arrangements.
Work-life balance strategies made available to employees during 2010–11 included:
• access to the employee assistance program for employees and their immediate family members
• access to a family assistance information service that can help employees source any type of dependent care, health or lifestyle service
• an on-site school holiday care program run by the Young Men’s Christian Association (YMCA)
• various health programs, such as exercise classes and yoga
• a dedicated intranet page that provides information on PM&C’s family-friendly policies and initiatives
• an on-site carers room.
p u R C h A s i n g Our procurement policies and practices reflect the principles set out in the Commonwealth Procurement Guidelines. We focus on:
• value for money
• encouraging competition
• the efficient, effective and ethical use of government resources
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• accountability and transparency
• compliance with other Australian Government policies.
Our Chief Executive’s Instruction on procurement reflects these principles and the need for compliance with Commonwealth policy by all staff when choosing procurement methods, sourcing potential suppliers or entering into contracts. As part of these arrangements, in 2010–11 we published details of:
• publicly-available business opportunities with a value of $80 000 or more on AusTender www.tenders.gov.au
• actual contracts awarded with a value of $10 000 or more on AusTender www.tenders.gov.au
• actual contracts with a value of $100 000 or more on our website www.dpmc.gov.au, as required by Senate Order 192.
All major contracts for activities previously performed in-house included a requirement for contractors to allow access to their premises by the Australian National Audit Office. Information on expected procurement in 2011–12 is published in our annual procurement plan, which is available at www.tenders.gov.au. This outlines our planned procurement for the coming year, giving prospective suppliers the opportunity to plan for potential work with the department. There were no contracts in 2010–11 that were exempt from being reported on AusTender.
Performance of purchaser–provider arrangementsPM&C was not appropriated funds to deliver outcomes through purchaser–provider arrangements, accordingly a nil response is provided against this annual report requirement.
Asset managementPM&C’s strategic business is to provide advice to, and support for, the Prime Minister and the Cabinet. As a part of this, role the department provides asset management for a range of departmental and administered assets.
C o n s u ltA n t s Consultants are engaged to provide professional, independent and expert advice or services where we need specific expertise or where independent assessments or input are considered to be desirable. We select consultants in the same way that we procure other goods and services. Details of trends in consultancies are shown in Figure 11.8.
In 2010–11 we spent a total of $4 212 136 on consultancies: $234 186 on six existing consultancies and $3 977 951 on 26 new consultancy contracts.
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Figure 11.8 Trends in consultancies
Consultancies 2006–07 2007–08 2008–09 2009–10 2010–11
No. of existing consultancies
No. of new consultancies
11
97
4
15
3
25
4
34
6
26
Total consultancies 108 19 28 38 32
Total expenditure $4.4m $0.7m $1.71m $1.26m $4.21m
Note: Historical data is taken from previous years’ annual reports. However, due to definitional changes, figures are not directly comparable. It also includes activity related to APEC 2007 between 2005 and 2007.
Consultancies with a value of $10 000 or moreMany individuals, partnerships and corporations provide services to agencies under contracts for services. However, not all contractors are consultants for the purposes of annual reporting. More information on what constitutes a consultancy is available from www.finance.gov.au.
Information relating to consultancy contracts let during the year to a value of $10 000 or more is provided at Figure 11.9.
The contract price includes the goods and services tax, where appropriate. It is the original agreed contract price unless actual expenditure has gone over this price due to changes in project scope, or if no fixed price could be set.
Figure 11.9 2010–11 consultancies
Consultant Summary description Price Selection1 Justification2
ACER Statistical advice $11 000 DS C
AEA Consultancy Review of the National Gallery of Australia
$105 000 DS A
Australian Government Solicitor (AGS)
Legal advice $10 811 OT B
AGS Legal advice $12 724 OT B
AGS Legal services $13 869 OT B
AGS Legal advice $15 672 OT B
Australian Government Solicitor – ACT
Legal advice $110 000 OT B
Bellewarra Investments
Independent Audit Committee Member
$23 000 DS B
Morison Pty Ltd Independent Audit Committee Member
$21 190 DS B
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Consultant Summary description Price Selection1 Justification2
Black, Rufus Independent Review of Intelligence
$186 000 DS A
Blackett Maguire and Goldsmith P/L
Principal Certifying Authority
$16 808 DS B
Cast Professional Review of football $77 000 DS BServices P/L in Australia
Cornall, Robert Independent Review of Intelligence
$274 000 DS A
Corrs Chambers Analysis of directors’ liability
$118 000 DS B
Greenhill Caliburn Review of National $1 107 957 ST ABroadband Network Co corporate plan
Harvey, Ronald G Independent Active After-school
$33 000 DS A
Communities program
Insight Economics P/L
Economic Modelling $400 000 DS B
Jakeman Business Audit of whole- $33 000 DS ASolutions P/L of-government
crisis coordination mechanisms
Kennedy, Kate Future of volunteering in Australia report
$33 000 DS C
KPMG Australia COAG standing councils strategic document preparation
$205 465 OT C
L.E.K. Consulting Establish arts agency output framework
$975 000 OT B
Matrix on Board Online tools for the $33 000 OT Cnot-for-profit sector
The Nous Group Vocational education and training reform funding
$77 174 OT B
Smith, Richard C Review of national counter-terrorism
$110 000 ST A
arrangements
Systems Knowledge Consultancy services $30 000 DS C
Ulrich Solutions P/L Human resources strategy
$16 000 DS B
continued…
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Consultant Summary description Price Selection1 Justification2
The University of Melbourne
Gender pay gap in the social and community services sector
$32 725 DS A
investigation
The University of New South Wales
Use of social investment and capital markets for social
$40 700 DS A
benefit
1 The selection process nominated for each contract is consistent with the processes outlined in the Commonwealth Procurement Guidelines. Following is a brief explanation of each process: • Opentender(OT)–aprocurementprocessinwhicharequestfortenderispublishedinvitingall
businesses that satisfy the conditions for participation to submit tenders. Public tenders are sought from the marketplace using the Australian Government AusTender website.
• Selecttender(ST)–aprocurementprocessinwhichtheprocuringagencyselectspotentialsuppliersto be invited to submit tenders. These potential suppliers may be selected from a multi-use list, a list of potential suppliers who have responded to a request for expressions of interest or from a list of potential suppliers which satisfy specific licence or legal requirements.
• Directsource(DS)–aformofrestrictedtendering,availableonlyundercertaincircumstancesdefinedin the Commonwealth Procurement Guidelines, in which the procuring agency selects one or more potential suppliers to submit a quote.
2 The justification for the decision to use a consultancy is one of the following:A. Need for independent research or assessment B. Need for specialised or professional skills C. Skills currently unavailable within department.
Consultancies commissioned by Arts and Sports Group prior to the machinery of government change are available at www.environment.gov.au, www.health.gov.au and www.fahscia.gov.au.
Annual reports contain information about actual expenditure on contracts and consultancies. More information on the value of our contracts and consultancies is available on the AusTender website at www.tenders.gov.au.
F R e e D o M o F i n F o R M A t i o nThe Freedom of Information Act 1982 (FOI Act) promotes disclosure of government information and expressly recognises that public access to government information is to be provided promptly and at the lowest reasonable cost.
The Information Publication Scheme (IPS) was established by Part II of the FOI Act with effect from 1 May 2011. This requirement has replaced the previous requirement for agencies to publish a section 8 statement in their annual report.
Our IPS agency plan is available on our website at www.dpmc.gov.au.
Section 8 of the Act requires us to report for the period 1 July 2010 to 30 April 2011 (inclusive) on:
• our organisation and functions (see Chapter 2)
• any arrangements for outside participation in policy formulation or administration (see Chapter 3 and 9)
continued…
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• the types of documents we hold (see below)
• our FOI procedures, facilities and contact details.
Documents we holdThe types of documents we hold include:
• submissions to, and the official records of, the Cabinet, its committees and the Federal Executive Council
• documents of royal commissions and other major inquiries
• representations to the Prime Minister and portfolio ministers on various aspects of government activity
• working files, including departmental correspondence, analysis and advice
• internal administrative records, such as personnel files, staffing and financial records, and office procedures
• cables
• papers relating to new and amending legislation, drafting instructions and draft legislation
• briefing papers and submissions prepared for the Prime Minister, the Cabinet Secretary and portfolio ministers
• documents relating to meetings (such as agendas, minutes and reports)
• copies of questions in the parliament, together with related replies
• tender documents
• government policy statements, communiqués, guidelines and media releases.
Our annual report and other selected documents relating to the department are available on our website at www.dpmc.gov.au.
More information about the classes of personal information we hold is available at www.privacy.gov.au/government/digests.
How to lodge an FOI requestIf you want to view one or more documents, you must send us a request in writing – by mail, fax or email. You need to include as much detail as possible about the document(s) you want to access. It would also be useful if you could provide a phone number in case we need to clarify your request. The FOI Act provides that charges may be imposed for processing requests.
If access is granted to the documents under the FOI Act, you will be provided with either a copy of the document(s) or the opportunity to inspect them at our Canberra office.
You can apply to the National Archives of Australia for access to records that are more than 30 years old. Changes to bring forward the open access period in the Archives Act 1983 for most records from 30 years to 20 years commenced on 1 January 2011 and will be phased in over a 10-year period. Records created in 1980 or 1981 were released on 1 January 2011 and a record created in 2000 will be in the open access period on 1 January 2021. Under the Archives Act 1983, special access may be available to:
• former Governors-General, ministers and secretaries who want to refresh their memories of records they personally dealt with while in office
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• authorised biographers of the above people
• people connected to government who have placed their personal records in the custody of the National Archives of Australia
• people researching major works that are considered to be of national importance.
More informationFor more information, contact our Freedom of Information Coordinator using the following details:
Figure 11.10 Freedom of information requests and performance
2006–07 2007–08 2008–09 2009–10 2010–11
FOI requests handled
Requests on hand at 1 July 11 33 25 18 42
New requests received 65 81 76 92 174
Requests withdrawn 13 40 24 26 47
Requests transferred to other agencies 6 7 16 7 21
Requests resolved 24 42 43 35 93
Timeliness of responses
Requests dealt with in line with FOI Act deadlines 28% 29% 37% 51% 78%
A D v e R t i s i n g A n D M A R k e t R e s e A R C hIn accordance with section 311A of the Commonwealth Electoral Act 1918, this section contains information about advertising and marketing research.
All Australian Government departments and agencies subject to the Financial Management and Accountability Act 1997 are required to place their advertising through the Central Advertising System.
More information about the Central Advertising System is available at: www.finance.gov.au/advertising.
In 2010–11 PM&C spent a total of $667 836 on the placement of advertising by Adcorp Australia Limited and Edward W Kelley for the purposes of recruitment.
An additional $52 871 was spent on National Portrait Gallery (NPG) advertising undertaken by WIN Television and Nationwide News Pty Ltd.
FOI CoordinatorDepartment of the Prime Minister and CabinetPO Box 6500CANBERRA ACT 2600
Email: [email protected] Phone: (02) 6271 5849Fax: (02) 6271 5776
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Figure 11.11 2010–11 advertising and market research
Payments made in 2010–11 Firm Service provided $
Market research organisations
nil nil
All market research organisations nil
Media advertising organisations
Recruitment and other Adcorp Australia Limited non-campaign advertising 236 274
Recruitment and other Edward W Kelley non-campaign advertising 431 562
Advertising National Nationwide News Pty Ltd Photographic Portrait Prize 28 871
NPG profile raising advertising 24 000
All media advertising organisations 720 707
E c o l o g i c a l ly s u s ta i n a b l E d E v E l o p m E n t a n d E n v i r o n m E n ta l p E r f o r m a n c EThe following summary of the department’s environmental management activities and performance is provided in accordance with section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act).
As stated in our Environmental Policy Statement, we are committed to the principles of sustainable development. We recognise our responsibility to the Australian Government and the wider community to make a contribution to minimise the impact of our operations on the environment.
During 2010–11 we continued to demonstrate environmental responsibility by minimising the negative impacts we have on the environment through efficient use of resources, effective waste management and pollution prevention.
Our decision-making processes effectively integrate long-term and short-term economic, environmental and social considerations.
Our Environmental Policy Statement and Chief Executive’s Instruction in relation to procurement provide evidence of our commitment to ecologically sustainable development (ESD). While the department now manages several additional properties following the 2010 machinery of government changes, our ESD reports are only for the One National Circuit building, where we have sole control over environmental factors. All other properties are shared leases with other government and commercial entities.
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How the activities of, and the administration of legislation by, the department accorded with the principles of ESD – section 516A(6)(a)
Our advice to the Prime Minister takes into account the impact on the environment and the community, and includes environmental impact statements where biodiversity and ecological integrity is identified as being at risk.
How the outcomes specified for the department in an Appropriations Act contribute to ESD (see paragraph 516A(6)(b))
As highlighted above, our advice takes into consideration ecologically sustainable development where there is a potential risk to the environment. This is achieved through consultation with relevant Commonwealth, state, industry and community groups.
The effect of the department’s activities on the environment (see paragraph 516A(6)(c))
Our building at One National Circuit was built in accordance with the Australian Building Greenhouse Rating (ABGR) scheme (now the National Australia Built Environment Rating System (NABERS)) to have an energy rating of 4.5 stars. For the period July 2010 to June 2011, One National Circuit was awarded 4.5 star NABERS rating for both base building and whole of building. The NABERS assessment for water efficiency was also 4.5 stars.
Figure 11.12 National Australian Built Environment Rating System (NABERS) for One National Circuit
Detail Base Building Whole Building Water
NABERS Rating
Environmental management systemOur continual commitment to the environment is reflected through our Environmental Management System (EMS), based on the Australian Standard AS NZ ISO 14001. This system identifies key aspects of our business that impact upon the environment, and provides for a range of initiatives to monitor and alleviate the impact.
Energy usage at One National CircuitDuring 2010–11, our tenant light and power energy usage increased by 19 per cent, while our base building electricity decreased by 3 per cent and our base building natural gas consumption reduced by 16 per cent.
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Figure 11.13 Trends in energy usage
2007–08 2008–09 2009–10 2010–11 % change
Tenant light and power (kWh) 1 552 203 1 440 933 1 536 850 1 834 408 19
Base building electricity (kWh) 933 454 873 035 834 712 812 731 –3
Natural gas consumption (GJ) 1 651 2 094 2 591 2 178 –16
Carbon footprintIn 2009, an initiative was undertaken to assess our carbon footprint for 2007–08 and 2008–09 in accordance with the Greenhouse Gas (GHG) Protocol, as reported in the 2008–09 annual report. In 2009–10, in accordance with the National Greenhouse Accounts Factors issued by the Department of Climate Change and Energy Efficiency in July 2010, a different methodology has been used to calculate the carbon footprint. This has resulted in an outcome that is not readily comparable to previous years. The outcome of both the 2009–10 and 2010–11 carbon footprint assessments are shown at figure 11.14.
Figure 11.14 Trends in carbon dioxide emissions
Detail 2009–10 2010–11
Emissions in tonnes of carbon dioxide equivalent (CO2–e) 3 790 4 570
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Figure 11.15 Trends in emissions by source
2009–10 2010–11Emission Item % %
Electricity 56 52
Air travel 31 36
Waste to landfill 0 1
Supply of electricity 7 6
Extraction of diesel 0 0
Extraction of petrol 0 0
Natural gas 4 3
Diesel from generator 0 0
Air conditioning 2 2
Petrol from pool vehicles 0 0
Fridges 0 0
Total 100 100
Leased vehicles
Figure 11.16 Trends in leased vehicle targets
Trend 2007–08 2008–09 2009–10 2010–11 % change
Percent of fleet meeting Go Green Vehicle Guide (GVG) target 51.35 64 75 82 19
The measures the department is taking to minimise the impact of our activities on the environment – section 516A(6)(d)
As part of the EMS, we set goals at the beginning of each financial year and then report achievements against those goals at the end of the financial year. The achievements for 2010–11 are at Figure 11.17.
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Figure 11.17 Performance against environment goals
Goal Outcomes achieved
Reduce waste going to landfill • 96 per cent recycled waste from One National Circuit
• Maintained our waste recording systems, regularly monitoring the level of waste recycling
Reduce energy consumption and greenhouse emissions.
• Maintained NABERS energy ratings of 4.5 stars for base building and whole of building
• In 2010–11 departmental pool vehicles averaged a GVG rating of 13. The whole fleet averaged a GVG rating of 12.5
• UGL Services completed a carbon footprint report for 2010–11
• Continued to purchase 10 per cent of our electricity from green power
• Continued to analyse our energy consumption and identify efficiency improvements in accordance with the energy management plan and green lease schedule
• Participated in Earth Hour 2011 for the fifth year in a row
Reduce water wastage • Continued using rainwater storage tank in basement to flush toilets and water the gardens
Environmental Management Committee for One National Circuit
• Committee met quarterly to monitor environmental objectives and targets
Increase staff awareness of environmental issues and
• Participated in Ride to Work 2010 and Walk to Work 2010
responsibilities.• Continued to provide staff with awareness material
through the Go Green @ One National campaign
Annual Environmental Management System Review
• UGL Services were engaged to conduct an annual review (external audit) of our EMS in July 2011
Waste managementAll waste and recycled material being removed from One National Circuit is measured as part our cleaning contract. This was done in order to provide visibility of proportion of waste being recycled in order to minimise associated waste production through efficient consumption of resources and recycling of waste products.
During 2010–11, the percentage of waste recycled remained static at 96 per cent.
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Figure 11.18 Trends in recycled waste
Trend 2007–08 2008–09 2009–10 2010–11
Rubbish – not recycled (%) 6 3 4 4
Rubbish – recycled (%) 94 97 96 96
Figure 11.19 Recycled graphic
2007–08
5 961
95 446 92 940 88 277 88 513
2 8783 932 3 855
20 000
0
40 000
60 000
80 000
100 000
2008–09 2009–10 2010–11
RubbishTotal recycled
Figure11.20 Trends in breakdown of recycled waste
Recycling item (kg) 2007–08 2008–09 2009–10 2010–11 % change
Paper 35 077 39 174 36 850 37 110 1
Towelling paper etc 41 137.5 35 641 33 330 34 300 3
Commingled 4 474.5 4 763.5 3 703.5 3 594.5 –3
Cardboard 12 213 10 252 10 530 9 850 –6
Printer cartridges 563.1 538 640 625 –2
Compost 1 951 2 539 3 027 2 987 1
Polystyrene 30.2 32.6 196 46 –77
WaterOne National Circuit is highly water efficient, and in 2010 the building received an NABERS 4.5-star efficiency rating for water.
The building has a 70 000-litre water tank in the basement that services all the toilets and the gardens, as well as other water conservation initiatives such as dual-flush toilets, water-less urinals and low-flow showers.
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i n F o R M A t i o n t e C h n o l o g y The Information Services Branch (ISB) provides ICT, business, records management and library services to business areas within PM&C to enable our outcomes to be met.
During 2010–11, ISB continued to provide the following range of services to PM&C staff and the Prime Minister’s Office, including:
• core ICT services*
• telephony management and switchboard operators*
• secure gateway and web hosting services*
• network services*
• ICT security services
• Slipstream support services*
• ICT project services*
• ICT contract management services*
• web and application services
• library services
• records management*
• business services (facilities, security, fleet management, procurement and contracts).
Some or all of the services marked with an asterisk (*) are also provided to the Department of Climate Change and Energy Efficiency, the National Water Commission, the Museum of Australian Democracy at Old Parliament House, the Office of National Assessments and the Attorney-General’s Department.
The standard desktop environment within PM&C comprises Microsoft Office 2007 on a Vista platform. The server environment mainly comprises Microsoft Server 2008 and Exchange 2007.
Several key projects were successfully delivered, including an improved remote access solution, an improved secure BlackBerry solution, improved website services, databases to support departmental processes and ICT incident notification capabilities.
In line with government policies, the department reduced its reliance on dedicated ICT contractor support and renewed its commercial desktop and telephony support arrangements.
The ISB encompasses library and record management services. Work on the management of the records from numerous royal commissions continued. Together with the National Archives of Australia, we completed a record authority which formalised the archival and preservation procedures to be used for records of royal commissions, which are some of the nation’s most important historical documents. The Records Management Unit has commenced a long-term project to process records relating to the 17 royal commissions of the 1980s.
Improved access to secure networks and services provided by other government and allied agencies were successfully negotiated, and infrastructure work to extend services (like secure telephone and video teleconferencing) to the department’s staff were completed by December 2010.
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D i s C R e t i o n A R y g R A n t sIn 2010–11, PM&C continued to administer the discretionary grant programs listed below:
Office for the Arts grants Office for Sport grants
Torres Strait Islands Jobs Packages program Funding in Support of the Future of Football
Administered Capital Expenditure – National Illicit Drugs in Sport program Institute of Dramatic Art – building
Australian Government International Indigenous Sport and Recreation program Exhibitions Insurance program
Breakthrough – Emerging Indigenous Jobs Creation package Contemporary Musicians Recording Initiative
Cape York Job Transition Sport Anti-Doping program
Contemporary Music Touring program Sport Industry
Contemporary Touring Initiative Street Soccer
Cultural Development program Water and Snow Safety
Culture Strategic Initiative program
Festivals Australia Other departmental grants
Get Reading! program CHOGM 2011 Taskforce
Indigenous Broadcasting program Research Support for National Security program
Indigenous Culture Support program Research Support for Counter-Terrorism program
Maintenance of Indigenous Languages 21st Century Australia–US Alliance project and Records program
National Arts and Crafts Industry CHOGM – Hockey Australia Support program
National Collecting Institutions Touring CHOGM – Netball Australia Outreach program
National Cultural Heritage Account History of the Department of the Prime Minister and Cabinet publishing grant
National Jobs Packages program National Australia Day Council
Northern Territory Jobs Transition program The Australiana Fund
One-off arts grants The Australian National University
Playing Australia Volunteering Australia
Return of Indigenous Cultural Property Volunteer Resource Centres program
Screen Australia
Visions of Australia program
Further information on grants awarded by the department during the period 1 July 2010 to 30 June 2011 is available at www.dpmc.gov.au.
C h A P T E R T W E L V E
F i n A n C i A l s tA t e M e n t s
How we are funded 170
Key results
Statement by the Secretary and Chief Financial Officer
Independent auditor’s report
Financial statements
171
181
182
184
Index to the notes of the financial statements 200
170
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H o w w e a r e F u n d e d
Parliament, via the Appropriation Acts, provides PM&C with two types of funding: departmental and administered.
PM&C uses departmental resources to deliver services (programs). We also administer payments, revenues and other resources on behalf of government, which controls how we use them and requires us to account for them separately.
PM&C’s resources are outlined in Figure 12.1 and the allocation of expenses to outcomes and administered items for 2010–11 is detailed in Figure 12.2. A shaded background indicates that information relates to an administered resource, both in the table and in the financial statements that follow.
How we measure our performanceOur overall focus is on providing accurate estimates and achieving a balanced financial outcome. The ‘Expenses by outcome’ table details performance against the 2010–11 estimated actuals published in the 2011–12 Portfolio Budget Statements. Items are shown by outcome, program and program components. For example Program 1.1.1 refers to Outcome 1, program 1, program component 1.
Department of the Prime Minister and Cabinet
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K e y r e s u lt s i n 2 0 1 0 – 1 1
PM&C received an unqualifi ed audit report on the 2010–11 fi nancial statements from the Australian National Audit Offi ce.
Departmental fi nancesRevenue from government increased from $114.7 million in 2009–10 to $155.5 million in 2010–11. Th is included funding for the Commonwealth Heads of Government Meeting (CHOGM) 2011 Taskforce and the Administrative Arrangements Order (AAO) of 14 September 2010.
As a result of the AAO, the department assumed responsibility for the following functions:
• cultural aff airs, including movable cultural heritage, and support for the arts from the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC)
• sports and recreation from the Department of Health and Ageing (DoHA)
• national compact with the not-for-profi ts, volunteer management and philanthropy and the international Indigenous repatriation program from the Department of Families, Housing, Community Services and Indigenous Aff airs (FaHCSIA)
• cyber policy co-ordination with funding provided by the Department of Defence and the Australian Security Intelligence Offi ce.
Th e department also relinquished responsibility for the following functions:
• Offi ce of the Australian Information Commissioner, which was established as an agency in its own right on 1 November 2010
• Offi ce of the Commonwealth Coordinator General to the Department of Infrastructure and Transport
• Ownership and property management of offi cial establishments to the Department of Finance and Deregulation.
Th e department operated within its available resources in 2010–11 to end the year with a $5.5 million surplus. Th e surplus is primarily attributable to the CHOGM 2011 Taskforce. Additional information on the CHOGM 2011 Taskforce results is available in Note 13 of the fi nancial statements.
Net equity increased considerably to $189.4 million in 2010–11 up from $40.6 million in 2009–10. Th is is primarily due to the transfer of assets from DSEWPaC as a result of the AAO, including the transfer of the National Portrait Gallery and its associated works, and artwork associated with the Art Rental Special Account. Th e department’s fi nancial assets at 30 June 2011 of $66.6 million are adequate to meet its liabilities of $60.5 million.
Department of the Prime Minister and Cabinet
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t r e n d s i n d e P a r t m e n ta l F i n a n c e s
2010–11
$’m 2009–10
$’m Change
$’mRevenue from government 155.5 114.7 40.8Other revenue 20.1 21.1 (1.0)Total income 175.6 135.8 39.8 Employee expenses 88.5 70.9 17.6Supplier expenses 66.7 51.1 15.6Other expenses 21.7 10.4 11.3Total expenses
Surplus (deficit) attributed to the Australian Government
176.9 132.4 44.5
(1.3) 3.4 (4.7)Plus non-appropriated depreciation and amortisation expense1 6.8 – 6.8Surplus (deficit) attributed to the department 5.5 3.4 2.1 Financial assets A 66.6 36.4 30.2Non-financial assets B 183.3 36.2 147.1LiabilitiesNet assets (A+B–C)
C
60.5 32.0 28.5189.4 40.6 148.8
1 From 1 July 2010 agencies were no longer funded for depreciation and amortisation expenses under the net cash appropriation arrangement.
Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
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a d m i n i s t e r e d F i n a n c e s
PM&C administers expenses on behalf of the government related to: state occasions and offi cial visits; the operations support of the Prime Minister’s offi cial residences; secretariat support for the National Counter-Terrorism Committee; administration of a grant for the National Australia Day Council; support to former Governors-General; management of the national compact with not-for-profi ts, philanthropy and volunteering; and oversight and management of the arts and culture, and sports and recreation functions.
Expenses administered on behalf of the government increased from $9.3 million in 2009–10 to $400.5 million. Th e increase primarily refl ects the transfer of the Offi ce for the Arts and the Offi ce for Sport administered programs and the inclusion of Commonwealth Authorities and Companies Act 1997 (CAC Act) body payments for the fi rst time following the AAO.
Financial assets have signifi cantly increased since 2009–10 refl ecting the administered investments in CAC Act bodies transferred from DSEWPaC and DoHA as part of the AAO. Details on the administered investments can be found in Note 19C of the fi nancial statements.
Non-fi nancial assets have decreased due to the transfer of the ownership and property management of Th e Lodge and Kirribilli House to the Department of Finance and Deregulation, partially off set by the transfer of the National Institute of Dramatic Arts building from DSEWPaC.
t r e n d s i n a d m i n i s t e r e d F i n a n c e s
2010–11 $’m
2009–10$’m
Change$’m
Other revenueTotal income
2.6 0.0 2.6 2.6 0.0 2.6
Grant expensesSupplier expensesOther expensesCAC Act body paymentsTotal expenses
102.9 6.1
22.1 269.4
3.4 4.3 1.6 0.0
99.5 1.8
20.5 269.4
400.5 9.3 391.2 Financial assets 7,296.2 0.8 7,295.4 Non-fi nancial assetsLiabilities
36.0 18.5
42.5 11.7
(6.5) 6.8
Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
174
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F i g u r e 1 2 . 1 – P m & c r e s o u r c e s ta t e m e n t
Actual
available appropriation
for 2010–11
Payments made
2010–11
Remaining balance
2010–11 $’000 $’000 $’000
Ordinary annual services1
Departmental appropriation2 Total
(a)
210,537 210,537
(b)
172,249 172,249
(a)–(b)
38,288 38,288
Administered expenses
Outcome 1: Policy and support3
Outcome 2: Arts and cultural
10,241
9,971
developmentOutcome 3: Sport and recreation
91,396
44,930
85,384
44,483 Payments to CAC Act bodiesTotal
269,630 416,198
269,429 409,267
Total ordinary annual services
A
626,735
581,515
Other services Administered expenses
Specific payments to states, ACT, NT and local governmentTotal
250 250
250 250
Departmental non-operatingEquity injectionsTotal
Administered non-operatingPayments to CAC Act bodies – non-operatingTotal
5,041 5,041
7,038 7,038
1,6161,616
7,038 7,038
3,425 3,425
Total other services
B
12,329
8,904
Special appropriations
Total special appropriationsTotal appropriation excluding
special accounts
C
639,064
– –
590,419
Department of the Prime Minister and Cabinet
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175
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available appropriation
for 2010–11
Payments made
2010–11
Remaining balance
2010–11 $’000 $’000 $’000 (a) (b) (a)–(b)
Special accounts4 Opening balance 10,081 Appropriation receipts 1,290 Non-appropriation receipts to special accounts 2,794 Payments made from special accounts – 2,414
Total
Total resourcingA+B+C+D
Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations
D
14,165
653,229
277,959
2,414
592,833
276,468
11,751
Total net resourcing for PM&C 375,270 316,365
1 Appropriation Act (No.1) 2010–11 and Appropriation Act (No.3) 2010–11. Th is includes prior year departmental appropriation and s31 relevant agency receipts.
2 Includes an amount of $2.8m in 2010–11 for the departmental capital budget. For accounting purposes this amount has been designated as ‘contributions by owners’.
3 Includes an amount of $0.2m in 2010–11 for the administered capital budget. For accounting purposes this amount has been designated as ‘contributions by owners’.
4 Does not include Special Public Money held in accounts like Other Trust Monies accounts (OTM).
Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
F i g u r e 1 2 . 1 – P m & c r e s o u r c e s ta t e m e n t ( c o n t i n u e d )
176
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ents Outcome 1: Coordination of government activities; policy development; advice
and program delivery to support and inform the Prime Minister, the Cabinet and the Cabinet Secretary.
Budget1 2010–11
Actual 2010–11 Variation
$’000 $’000 $’000Program 1: Prime Minister and Cabinet1.1.1: Domestic policyAdministered expenses
Ordinary annual services (Appropriation Bill No. 1) 75 75 –
Departmental expensesDepartmental appropriations2 47,169 48,358 (1,189)Expenses not requiring appropriation in the budget year 1,558 2,382 (824)Total for Program 1.1.1 48,802 50,815 (2,013)
1.1.2: National security and international policyAdministered expenses
Ordinary annual services (Appropriation Bill No. 1) 109 90 19
Departmental expensesDepartmental appropriations2 35,079 34,086 993 Expenses not requiring appropriation in the budget year 4,780 3,342 1,438 Total for Program 1.1.2 39,968 37,518 2,450
1.1.3: Strategic policy and implementationDepartmental expenses
Departmental appropriations2 9,692 9,555 137 Expenses not requiring appropriation in the budget year 874 737 137 Total for Program 1.1.3 10,566 10,292 274
Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
F i g u r e 1 2 . 2 – e x P e n s e s b y o u t c o m e a n d P r o g r a m
177
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2010–11Actual
2010–11 Variation$’000 $’000 $’000
1.1.4: Support services for government operationsAdministered expenses
Ordinary annual services (Appropriation Bill No. 1) 3,498 3,576 (78)
Departmental expensesDepartmental appropriations2 33,291 32,035 1,256 Expenses not requiring appropriation in the budget year 1,292 1,542 (250)Total for Program 1.1.4 38,081 37,153 928
1.1.5: Commonwealth Heads of Government Meeting 2011Departmental expenses
Departmental appropriations2 17,869 11,213 6,656 Expenses not requiring appropriation in the budget year – 41 (41)Total for Program 1.1.5 17,869 11,254 6,615
Program 1.2: Offi cial and ceremonial supportAdministered expenses
Ordinary annual services (Appropriation Bill No. 1) 5,657 5,860 (203)
Departmental expensesDepartmental appropriations2 3,255 2,163 1,092 Expenses not requiring appropriation in the budget year 118 138 (20)Total for Program 1.2 9,030 8,161 869
Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
F i g u r e 1 2 . 2 – e x P e n s e s b y o u t c o m e a n d P r o g r a m ( c o n t i n u e d )
178
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2010–11Actual
2010–11 Variation $’000 $’000 $’000
Outcome 1 totals by appropriation typeAdministered expenses
Ordinary annual services (Appropriation Bill No. 1) 9,339 9,601 (262)
Departmental expensesDepartmental appropriations2 146,355 137,410 8,945 Expenses not requiring appropriation in the budget year 8,622 8,182 440
Total expenses for Outcome 1 164,316 155,193 9,123 Average staffing levels (Number) 631 636 (5)
Outcome 2: Participation in, and access to, Australia’s arts and culture through developing and supporting cultural expression.
Program 2.1: Arts and cultural developmentAdministered expenses
Ordinary annual services (Appropriation Bill No. 1) 91,967 72,476 19,491 Special accounts – 245 (245)
Departmental expensesDepartmental appropriations2 21,925 23,841 (1,916)Special accounts 4,388 1,462 2,926 Expenses not requiring appropriation in the budget year 3,252 1,790 1,462
Total expenses for Outcome 2 121,532 99,814 22,718 Average staffing levels (number) 121 117 4
Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
F i g u r e 1 2 . 2 – e x P e n s e s b y o u t c o m e a n d P r o g r a m ( c o n t i n u e d )
179
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2010–11 2010–11 Variation$’000 $’000 $’000
Outcome 3: Improved opportunities for community participation in sport and recreation, and excellence in high-performance athletes, including through investment in sport infrastructure and events, research and international cooperation.
Program 3.1: Sport and recreationAdministered expenses
Ordinary annual services (Appropriation Bill No. 1) 44,930 48,249 (3,319)Other services (Appropriation Bill No. 2) 250 250 – Special accounts 508 259 249
Departmental expenses Departmental appropriations2 4,294 4,148 146 Expenses not requiring appropriation in the budget year 155 97 58
Total expenses for Outcome 3 50,137 53,003 (2,866)Average staffi ng levels (number) 28 25 3
1 As per the estimated actual for 2010–11 disclosed in the 2011–12 Portfolio Budget Statements.2 Departmental appropriation combines “Ordinary annual services (Appropriation Act No.1 and
No.3)” and “Revenue from independent sources (s31)”.
Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
F i g u r e 1 2 . 2 – e x P e n s e s b y o u t c o m e a n d P r o g r a m ( c o n t i n u e d )
180
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u n d e r s ta n d i n g o u r F i n a n c i a l s ta t e m e n t s
The content and format of our financial statements is prescribed by the Minister for Finance and Deregulation under the Financial Management and Accountability Act 1997. Our statements include:
• a statement of comprehensive income: this shows our income and expenses on an accrual basis
• a balance sheet: this details our assets and liabilities, as well as the amount of the equity at year-end
• a statement of change in equity: this shows how the equity we hold changed due to changes in asset valuations, accumulated surplus and capital transactions
• a statement of cash flows: this shows where the cash we used during the year came from, and how we used it.
Department of the Prime Minister and Cabinet
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Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
s ta t e m e n t b y t H e s e c r e ta r y a n d c H i e F F i n a n c i a l o F F i c e r
182
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Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
i n d e P e n d e n t a u d i t o r ’ s r e P o r t
183
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Department of the Prime Minister and Cabinet
F i n a n c i a l s ta t e m e n t s
184
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The above statement should be read in conjunction with the accompanying notes.
2011 2010 Notes $’000 $’000
EXPENSESEmployee benefitsSupplier expensesGrantsDepreciation and amortisationFinance costs
3A3B3C3D3E
88,46866,72814,791
6,84923
70,93751,1105,0865,005
23Write-down and impairment of assetsLosses from asset sales
3F3G
2942
3242
Total expenses 176,930 132,406
LESS:OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of servicesTotal own-source revenue
4A 16,83716,837
18,40718,407
GainsResources received free of chargeTotal gainsTotal own-source income
4B 3,2203,220
20,057
2,7062,706
21,113
Net cost of services 156,873 111,293
Revenue from governmentSurplus (deficit) attributable to the Australian Government
4C 155,541(1,332)
114,6553,362
OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserves 5A 13 2,552
Total comprehensive income (loss) attributable to the Australian Government 5B (1,319) 5,914
Department of the Prime Minister and Cabinet
s ta t e m e n t o F c o m P r e H e n s i V e i n c o m efor the period ended 30 June 2011
185
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Th e above statement should be read in conjunction with the accompanying notes.
Department of the Prime Minister and Cabinet
b a l a n c e s H e e tas at 30 June 2011
2011 2010Notes $’000 $’000
ASSETSFinancial assetsCash and cash equivalents 6A 8,013 739Trade and other receivables 6B 52,385 32,674Accrued revenueTotal fi nancial assets
6C 6,189 2,99366,587 36,406
Non-fi nancial assetsLand and buildings 7A/7C 81,079 – Property, plant and equipment 7B/7C 95,068 32,027Intangibles 7D/7E 3,235 3,254Inventories 7F 53 – Other non-fi nancial assetsTotal non-fi nancial assets
7G 3,899 899183,334 36,180
Total assets 249,921 72,586
LIABILITIESPayablesSuppliers 8A 13,874 4,898Grants 8B 5,703 637OtherTotal payables
8C 6,802 4,07626,379 9,611
ProvisionsEmployee provisions 9A 28,867 17,820Other provisions 9B 5,233 4,547Total provisions 34,100 22,367Total liabilities 60,479 31,978
NET ASSETS 189,442 40,608
EQUITYContributed equity 158,119 7,966Reserves 8,175 8,162Retained surplus 23,148 24,480TOTAL EQUIT Y 189,442 40,608
186
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Ass
et re
valu
atio
n R
etai
ned
surp
lus
Con
trib
uted
equi
tyTo
tal e
quity
rese
rves
2011
2010
2011
2010
2011
2010
2011
2010
$’00
0$’
000
$’00
0$’
000
$’00
0$’
000
$’00
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,480
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,608
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17A
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–
–
–
–
–
–
–
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nce
24,4
8021
,118
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,289
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,017
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3,36
2To
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ian
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3,36
213
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Tran
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ions
with
own
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Dist
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to o
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etur
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Res
truct
urin
g (N
ote 1
0) –
–
–
–
(2
,451
) –
(2
,451
) –
R
etur
n of
cont
ribut
ed eq
uity
–
–
–
–
(330
)(9
,991
)(3
30)
(9,9
91)
not
es.
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nycc
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the
with
njun
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n co
indea r
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ent
ev ab
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e
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
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itQe
in 2
011
Han
ges
June
c 30
Fo
atem
ent en
ded
diore p
the
st orf
187
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12
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ents
Th e above statement should be read in conjunction with the accompanying notes.
not
es.
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o a
the
with
njun
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tyTo
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rese
rves
2011
2010
2011
2010
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$’00
0$’
000
$’00
0$’
000
$’00
0$’
000
$’00
0$’
000
Con
trib
utio
ns b
y own
ers
App
ropr
iatio
n (e
quity
injec
tion)
–
–
–
–
718
3,66
871
83,
668
Dep
artm
enta
l cap
ital b
udge
t (D
CB)
–
–
–
–
3,57
0 –
3,
570
–
Res
truct
urin
g (N
ote 1
0) –
–
–
–
14
8,64
6 –
14
8,64
6 –
Su
b-to
tal t
rans
actio
ns w
ith ow
ners
–
–
–
–
150,
153
(6,3
23)
150,
153
(6,3
23)
Tran
sfers
bet
ween
equi
ty co
mpo
nent
s –
–
–
–
–
–
–
–
Cl
osin
g bal
ance
at 3
0 Ju
ne23
,148
24,4
808,
175
8,16
215
8,11
97,
966
189,
442
40,6
08Cl
osin
g bal
ance
attr
ibut
able
to th
e Aus
tral
ian
Gov
ernm
ent
23,1
4824
,480
8,17
58,
162
158,
119
7,96
618
9,44
240
,608
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
y (c
on
tin
ued
) e
Qu
it i
n 2
011
cH
ang
es Ju
ne 3
0 o
F en
ded
atem
ent d
iore p th
es
t orf
188
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apter
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ents
The above statement should be read in conjunction with the accompanying notes.
2011 2010 Notes $’000 $’000
OPERATING ACTIVITIESCash receivedGoods and servicesNet GST receivedAppropriationsTotal cash received
20,3355,907
138,688164,930
23,3163,761
103,351130,428
Cash used EmployeesSuppliersGrantsTotal cash usedNet cash from (used by) operating activities 11
85,06766,149
9,725160,941
3,989
72,16753,8684,829
130,864
(436)
INVESTING ACTIVITIESCash receivedProceeds from sales of property, plant and equipment Total cash received
2727
3636
Cash usedPurchase of property, plant and equipmentTotal cash usedNet cash used by investing activities
9,2969,296
(9,269)
5,8975,897
(5,861)
Department of the Prime Minister and Cabinet
c a s H F l o w s ta t e m e n tfor the period ended 30 June 2011
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ents
2011 2010Notes $’000 $’000
FINANCING ACTIVITIESCash receivedAppropriations – equity injections 1,616 3,668Appropriations – departmental capital budget 3,487 –Total cash receivedNet cash from fi nancing activities
Net decrease in cash held
5,103 3,6685,103 3,668
(177) (2,629)Cash and cash equivalents at the beginning of the reporting period 739 3,368Cash received – restructuring 10 7,451 –Cash and cash equivalents at the end of the reporting period 6A 8,013 739
Department of the Prime Minister and Cabinet
c a s H F l o w s ta t e m e n t ( c o n t i n u e d )for the period ended 30 June 2011
190
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The above statement should be read in conjunction with the accompanying notes.
2011 2010 $’000 $’000
BY TYPECommitments receivableGST recoverable on commitments (13,396) (12,286)Other commitments (6,909) (8,698)Total commitments receivable (20,305) (20,984)
Commitments payableCapital commitmentsLeasehold improvements – 897Total capital commitments – 897
Other commitmentsOperating leases 101,024 109,112Grant commitments 3,116 5,310OtherTotal other commitmentsNet commitments by type
50,702 20,748154,842 135,170134,537 115,083
BY MATURITYCommitments receivableOne year or less (8,032) (5,192)From one to five years (7,307) (10,002)Over five years (4,966) (5,790)Total operating lease income (20,305) (20,984)
Commitments payableCapital commitmentsOne year or less – 897From one to five years – – Over five years – – Total capital commitments – 897
Operating lease commitmentsOne year or less 9,911 10,153From one to five years 36,488 35,522Over five years 54,625 63,437Total operating lease commitments 101,024 109,112
Department of the Prime Minister and Cabinet
s c H e d u l e o F c o m m i t m e n t sas at 30 June 2011
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Th e above statement should be read in conjunction with the accompanying notes.
2011 2010$’000 $’000
Grant commitmentsOne year or less 3,116 3,573From one to fi ve years – 1,737Over fi ve years – – Total grant commitments 3,116 5,310
Other commitmentsOne year or less 41,558 8,675From one to fi ve years 9,144 11,814Over fi ve years – 259Total other commitmentsNet commitments by maturity
50,702 20,748134,537 115,083
Note:
Commitments are GST inclusive where relevant.
Operating lease commitment – leases for offi ce accommodation Offi ce accommodation lease payments are subject to periodic increases in accordance with the rent review provisions of the lease. Th e lease for One National Circuit, Barton, ACT, 2600 commenced in 2006–07 for a period of 15 years.
Other commitments payable/receivableOther commitments payable includes contracts entered into for the provision of information and communication technology services for the department and shared services for a number of agencies. A corresponding commitment receivable has been recognised in regards to expected future contributions from other agencies.
Agreements for the provision of motor vehicles to senior executive offi cersNo contingent rentals exist. Th ere are no renewal or purchase options available to the department for motor vehicle leases.
Department of the Prime Minister and Cabinet
s c H e d u l e o F c o m m i t m e n t s ( c o n t i n u e d )as at 30 June 2011
192
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The above statement should be read in conjunction with the accompanying notes.
Contingent assets and liabilitiesPM&C is not aware of any departmental contingent liabilities or assets as at signing date that would require disclosure in the financial statements.
There were no departmental contingent liabilities or assets reported in 2009–10.
Department of the Prime Minister and Cabinet
s c H e d u l e o F c o n t i n g e n c i e sas at 30 June 2011
193
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Th e above statement should be read in conjunction with the accompanying notes.
Th e following non-fi nancial non-current assets were added in 2010–11 (Note 7C/7E):
Other
Total buildings
$’000
property, plant and
equipment$’000
Heritage and
cultural$’000
Intangibles$’000
Total $’000
Additions funded in the current yearBy purchase – appropriation ordinary annual services
Departmental capital budget – 2,605 – 882 3,487Ordinary operating costs – 3,380 901 95 4,376
By purchase – appropriation other services
Equity injections – 1,616 – – 1,616By purchase – other 19 – – – 19From acquisition of entities or operations (including restructuring) 81,972 1,086 58,708 52 141,818Total funded additions funded in the current year 81,991 8,687 59,609 1,029 151,316Total additions 81,991 8,687 59,609 1,029 151,316
Th e following non-fi nancial non-current assets were added in 2009–10 (Note 7C/7E):
Other property, Heritage
plant and and Buildings equipment cultural Intangibles Total
$’000 $’000 $’000 $’000 $’000Additions funded in the current yearBy purchase – appropriation ordinary annual services
Ordinary operating costs – 1,871 – 1,396 3,267By purchase – appropriation other services
Equity injections – 3,081 – 61 3,142Assets fi rst foundTotal funded additions funded
– 11 – 11
in the current year – 4,963 – 1,457 6,420Total additions – 4,963 – 1,457 6,420
Department of the Prime Minister and Cabinet
s c H e d u l e o F a s s e t a d d i t i o n sfor the period ended 30 June 2011
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2011 2010 Notes $’000 $’000
INCOME ADMINISTERED ON BEHALF OF GOVERNMENTRevenueNon-taxation revenueInterest 17A 165 – Other revenueTotal non-taxation revenueTotal revenues administered
17B 1,473 11,638 1
on behalf of government 1,638 1
GainsOther gainsTotal gains administered on behalf of government
Total income administered
17C 1,000 –
1,000 –
on behalf of government 2,638 1
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENTEmployee benefitsSuppliers expensesGrants
18A18B18C
8876,087
102,960
8274,2943,362
Depreciation and amortisationRoyaltiesWrite-down and impairment of assetsFinance costs
18D18E18F18G
92219,652
2570
218 – 2
592CAC Act body payment itemTotal expenses administered on behalf of government
18H 269,429
400,509
–
9,295
Department of the Prime Minister and Cabinet
s c H e d u l e o F a d m i n i s t e r e d i t e m sfor the period ended 30 June 2011
The above statement should be read in conjunction with the accompanying notes.
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2011 2010Notes $’000 $’000
ASSETS ADMINISTERED ON BEHALF OF GOVERNMENTFinancial assetsCash and cash equivalents 19A 148 12Receivables 19B 10,304 47Other investments 19C 7,285,708 773Total fi nancial assets 7,296,160 832
Non-fi nancial assetsLand and buildings 19D/19F 33,879 41,265Property, plant and equipment 19E/19F 1,929 1,181Other 19G 221 38Total non-fi nancial assets 36,029 42,484Total assets administered on behalf of government 7,332,189 43,316
LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENTPayablesSuppliers 20A 3,926 163Grants 20B 3,361 – Other 20C 72 60Total payables 7,359 223
ProvisionsEmployee provisions 20D 344 260Non-cash benefi ts – former Governors-General 20E 10,668 11,077Other provisions 20F 126 139Total provisions 11,138 11,476Total liabilities administered on behalf of government 18,497 11,699
Department of the Prime Minister and Cabinet
s c H e d u l e o F a d m i n i s t e r e d i t e m s ( c o n t i n u e d )for the period ended 30 June 2011
Th e above statement should be read in conjunction with the accompanying notes.
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2011 2010 Notes $’000 $’000
ADMINISTERED CASH FLOWSOPERATING ACTIVITIESCash receivedNet GST received 4,365 470Other 2,956Total cash received 7,321
Cash used
124594
Employees 802 1,172Suppliers 5,791 5,840Grant payments 123,820 3,362Royalties paid 19,652 – CAC Act body payment item 269,429 – Total cash used 419,494Net cash used by operating activities (412,173)
10,374(9,780)
INVESTING ACTIVITIESCash usedPurchase of property, plant and equipment 1,560 13CAC Act body investments 7,039 – Total cash used 8,599Net cash used by investing activities (8,599)
13(13)
Net increase/(decrease) in cash held (420,772) (9,793)Cash and cash equivalents at the beginning of the reporting period 12 1Cash from Official Public Account for:
Appropriations 427,203 10,919427,203
Cash to Official Public Account for:
10,919
Appropriations (6,295) (1,115)(6,295) (1,115)
Cash and cash equivalents at the end of the reporting period 19A 148 12
The above statement should be read in conjunction with the accompanying notes.
Department of the Prime Minister and Cabinet
S C H E D U L E O F A D M I N I S T E R E D I T E M S ( C O N T I N U E D )for the period ended 30 June 2011
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2011 2010Notes $’000 $’000
ADMINISTERED COMMITMENTS BY TYPECommitments receivableGST recoverable on commitments (2,514) (161)Total commitments receivable (2,514) (161)
Commitments payableOther commitmentsOperating leases 2,141 1,054Grant commitments 25,724 – Other 256 714
28,121 1,76825,607 1,607
Total other commitmentsNet commitments by type
BY MATURITYCommitments receivableOne year or less (2,041) (76)From one to fi ve years (472) (84)Over fi ve years (1) (1)Total commitments receivable
Commitments payableOperating lease commitmentsOne year or lessFrom one to fi ve yearsOver fi ve years
(2,514) (161)
680 5051,448 536
13 13Total operating lease commitments 2,141 1,054
Grant commitmentsOne year or less 22,017 – From one to fi ve years 3,707 – Over fi ve years – – Total grant commitments 25,724 –
Department of the Prime Minister and Cabinet
S C H E D U L E O F A D M I N I S T E R E D I T E M S ( C O N T I N U E D )for the period ended 30 June 2011
Th e above statement should be read in conjunction with the accompanying notes.
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Notes2011
$’0002010 $’000
Other commitmentsOne year or less 213 328From one to five years 43 386Over five years – – Total other commitments 256 714Net commitments by maturity 25,607 1,607
Note:
Commitments are GST inclusive where relevant.
General description of leasing arrangementsOperating leases comprise leases of office accommodation for the former Governors-General. Lease payments are subject to periodic increase in accordance with the rent review provisions of the lease.
Notes2011 $’000
2010 $’000
ADMINISTERED CONTINGENCIESAdministered contingent liabilitiesClaims for damages or costs 70 – Total contingent liabilities 70 –
Details of contingent liabilities in the above table are disclosed in Note 22: Administered contingent assets and liabilities, along with information of significant remote contingencies and contingencies that cannot be quantified.
There were no administered contingent liabilities or assets reported in 2009–10.
Department of the Prime Minister and Cabinet
s c H e d u l e o F a d m i n i s t e r e d i t e m s ( c o n t i n u e d )for the period ended 30 June 2011
The above statement should be read in conjunction with the accompanying notes.
199
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apter
12
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ents
AD
MIN
IST
ER
ED
ASS
ET
AD
DIT
ION
STh
e fol
lowi
ng n
on-fi
nanc
ial n
on-c
urre
nt as
sets
wer
e add
ed in
2010
–11 (
Not
e 19F
):Bu
ildin
gs$’
000
Prop
erty,
plan
t and
equi
pmen
t $’
000
Tota
l$’
000
Add
ition
s fun
ded
in th
e cur
rent
year
By p
urch
ase –
appr
opria
tion
ordi
nary
annu
al se
rvice
sO
rdin
ary
oper
atin
g co
sts1,
560
–
1,56
0A
sset
s rec
eive
d fre
e of c
harg
e –
1,
000
1,00
0Fr
om ac
quisi
tion
of en
titie
s or o
pera
tions
(inc
ludi
ng re
struc
turin
g)33
,120
–
33,1
20To
tal f
unde
d add
ition
s fun
ded i
n th
e cur
rent
year
34,6
801,
000
35,6
80To
tal a
dditi
ons
34,6
801,
000
35,6
80
AD
MIN
IST
ER
ED
ASS
ET
AD
DIT
ION
STh
e fol
lowi
ng n
on-fi
nanc
ial n
on-c
urre
nt as
sets
were
adde
d in
200
9–10
(Not
e 19F
):Bu
ildin
gs$’
000
Prop
erty,
plan
t and
equi
pmen
t $’
000
Tota
l$’
000
Add
ition
s fun
ded
in th
e cur
rent
year
By p
urch
ase –
appr
opria
tion
ordi
nary
annu
al se
rvice
sO
rdin
ary
oper
atin
g co
sts –
13
13To
tal f
unde
d add
ition
s fun
ded i
n th
e cur
rent
year
–
1313
Tota
l add
ition
s –
13
13
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
sc
Hed
ule
oF
adm
inis
ter
ed i
tem
s (
co
nti
nu
ed)
for t
he pe
riod e
nded
30
June
201
1
Th e a
bove
stat
emen
t sho
uld
be re
ad in
conj
unct
ion
with
the a
ccom
pany
ing
note
s.
200
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i n d e x t o t H e n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t s
Note 1. Summary of significant accounting policiesNote 2. Events occurring after the balance sheet dateNote 3. ExpensesNote 4. IncomeNote 5. Other comprehensive incomeNote 6. Financial assetsNote 7. Non-financial assetsNote 8. PayablesNote 9. ProvisionsNote 10. RestructuringNote 11. Cash flow reconciliationNote 12. Contingent liabilities and assetsNote 13. Impact of CHOGM Taskforce on the income statementNote 14. Senior executive remunerationNote 15. Remuneration of auditorsNote 16. Financial instrumentsNote 17. Income administered on behalf of governmentNote 18. Expenses administered on behalf of governmentNote 19. Assets administered on behalf of governmentNote 20. Liabilities administered on behalf of governmentNote 21. Administered reconciliation tableNote 22. Administered contingent assets and liabilitiesNote 23. Administered investmentsNote 24. Administered financial instrumentsNote 25. AppropriationsNote 26. Special accountsNote 27. Compensation and debt reliefNote 28. Assets held in trustNote 29. Reporting of outcomes
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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n o t e 1 . s u m m a r y o F s i g n i F i c a n t a c c o u n t i n g P o l i c i e s
1.1 Objectives of the departmentTh e department is an Australian Government controlled entity.
Th e department is structured to meet three outcomes:
• Outcome 1 – coordination of government activities; policy development; advice and program delivery to support and inform the Prime Minister, the Cabinet and the Cabinet Secretary
• Outcome 2 – participation in, and access to, Australia’s arts and culture through developing and supporting cultural expression
• Outcome 3 – improved opportunities for community participation in sport and recreation, and excellence in high performance athletes, including through investment in sport infrastructure and events, research and international cooperation.
Th e department’s outcomes include both departmental and administered items.
Machinery of government changes announced during the year resulted in the transfer of arts and culture programs and sport programs to the department. Th e department’s outcome structure has been updated to better refl ect the work of the department following this change. Further details on the department’s outcome structure is described at page 20.
Th e department’s activities contributing toward this outcome are classifi ed as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the department in its own right. Administered activities involve the management or oversight by the department, on behalf of the government, of items controlled or incurred by the government.
Th e continued existence of the department in its present form and with its present programs is dependent on government policy and on continuing appropriations by the parliament for the department’s administration and programs.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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1.2 Basis of preparation of the financial statementsThe financial statements and notes are required by section 49 of the Financial Management and Accountability Act 1997 and are general purpose financial statements.
The financial statements and notes have been prepared in accordance with:
• Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2010
• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.
The financial statements and notes have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
The financial statements and notes are 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 the department or a future sacrifice of economic benefits will be required 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 unrealised are reported in the schedule of commitments and the schedule of contingencies.
Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when, and only when, the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
Administered revenues, expenses, assets, liabilities and cash flows reported in the schedule of administered items and related notes are accounted for on the same basis and using the same policies as for departmental items, except as otherwise stated in Note 1.21.
Department of the Prime Minister and Cabinet
N O T E S T O A N D F O R M I N g p A R T O F T H E F I N A N C I A L S TA T E M E N T Sfor the period ended 30 June 2011
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1.3 Signifi cant accounting judgements and estimates In the process of applying the accounting policies listed in this note, the department has made the following judgements that have the most signifi cant impact on the amounts recorded in the fi nancial statements:
• the employee provision is based on the actuarial assessment determined by the Australian Government Actuary (AGA)
• the fair value of land and buildings has been taken to be the market value of similar properties or depreciated replacement value as determined by an independent valuer
• the provision for non-cash former Governors-General entitlements is based on the actuarial assessment determined by the AGA
• heritage and cultural assets are stored, managed, repaired and restored in ways that will maintain their heritage and cultural value over time. As such, for most of these assets an assumption is made that they have indefi nite useful lives and therefore no depreciation is recognised.
1.4 New Australian Accounting StandardsAdoption of new Australian Accounting Standard requirementsNo accounting standard has been adopted earlier than the application date as stated in the standard.
Th e following new standards and amendments to standards issued prior to the signing of the statement by the Secretary and Chief Financial Offi cer, were applicable to the current reporting period and had a fi nancial impact on the entity:
• AASB 7 Financial instruments: disclosures – June 2010 (compilation)
• AASB 118 Revenue – May 2009 (compilation)
• AASB 132 Financial instruments: presentation – June 2010 (compilation)
• AASB 139 Financial instruments: recognition and measurement – December 2009 (compilation)
Other amendments to standards or interpretations, that were issued prior to the signing of the statement by the Secretary and Chief Financial Offi cer and are applicable to the current reporting period, did not have a fi nancial impact and are not expected to have a future fi nancial impact on the department.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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Future Australian Accounting Standard requirementsThe following new standards, amendments to standards or interpretations were issued by the Australian Accounting Standards Board prior to the signing of the statement by the Secretary and Chief Financial Officer, and are expected to have a financial impact on the entity for future reporting periods:
• AASB 5 Non–current assets held for sale and discontinued operations – October 2010 (compilation)
• AASB 9 Financial instruments – December 2010 (compilation) • AASB 101 Presentation of financial statements – October 2010 (compilation)• AASB 107 Statement of cash flows – October 2010 (compilation)• AASB 108 Accounting policies, changes in accounting estimates and errors –
December 2009 (compilation)• AASB 110 Events after the reporting period – December 2009 (compilation)• AASB 118 Revenue – October 2010 (compilation)• AASB 119 Employee benefits – October 2010 (compilation)• AASB 124 Related party disclosures – December 2009 (principal)• AASB 132 Financial instruments: presentation – October 2010 (compilation)• AASB 137 Provisions, contingent liabilities and contingent assets –
October 2010 (compilation)• AASB 139 Financial instruments: recognition and measurement –
October 2010 (compilation)• AASB 1031 Materiality – December 2009 (compilation) • AASB 1054 Australian additional disclosures – May 2011 (principal) • AASB 2010–6 Amendments to Australian accounting standards –
disclosures on transfers of financial assets [AASB 1 and AASB 7] – November 2010
• AASB 2010–7 Amendments to Australian accounting standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 and 1038 and Interpretations 2, 5, 10, 12, 19 and 127] – December 2010
• Interp. 4 Determining whether an arrangement contains a lease – December 2009 (compilation)
• Interp. 115 Operating leases: incentives – October 2010 (compilation)• Interp. 127 Evaluating the substance of transactions involving the legal form
of a lease – October 2010 (compilation) • Interp. 132 Intangible assets: web site costs – October 2010 (compilation)
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
205
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ents
Other new standards, amendments or interpretations that were issued prior to the signing of the statement by the Secretary and Chief Financial Offi cer and are applicable to the future reporting period are not expected to have a future fi nancial impact on the department.
1.5 RevenueRevenue from governmentAmounts appropriated for departmental output appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue when the department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.
From 1 July 2010 revenue from government no longer includes funding for depreciation and amortisation.
Appropriations receivable are recognised at their nominal amounts.
Other types of revenueRevenue from the sale of goods is recognised when:
• the risks and rewards of ownership have been transferred to the buyer
• the department retains no managerial involvement or eff ective control over the goods
• the revenue and transaction costs incurred can be reliably measured
• it is probable that the economic benefi ts associated with the transaction will fl ow to the department.
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. Th e revenue is recognised when:
• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured
• the probable economic benefi ts associated with the transaction will fl ow to the entity.
Th e stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of reporting period. Allowances are made when collectability of the debt is no longer probable.
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1.6 GainsSale of assetsGains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.
Resources received free of chargeResources 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.
Contributions of assets at no cost or for nominal consideration are recognised at their fair value when the asset qualifies for recognition (with the exception of assets valued at cost), unless received from another government agency as a consequence of a restructuring of administrative arrangements. Fair value is assessed by asset class as described in Note 1.18.
Resources received free of charge are recorded as either revenue or gains depending on their nature.
1.7 Transactions with the Australian Government as owner Contributed equityAmounts appropriated which are designated as ‘equity injections’ or from 1 July 2010, departmental capital budget appropriations (less any formal reductions) are recognised directly in contributed equity in that year. Equity injection appropriations in Acts passed after the commencement of the period are recognised from the date of royal assent.
Restructuring of administrative arrangementsNet assets/liabilities received from or relinquished to another Australian Government agency or authority under a restructuring of administrative arrangements are recognised as contributions or distributions of equity respectively, at their net book value.
Other distributions to ownersThe FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend.
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1.8 GrantsTh e department applies a uniform policy for all grants.
Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed; or (ii) the grant eligibility criteria have been satisfi ed, but payments due have not been made. A commitment is recorded when the government enters into an agreement to make these grants but services have not been performed or criteria satisfi ed. Where grants moneys are paid in advance of performance or eligibility, a prepayment is recognised.
1.9 Employee benefi tsLiabilities for ‘short-term employee benefi ts’ (as defi ned in AASB 119 Employee benefi ts) and termination benefi ts due within 12 months of end of reporting period are measured at their nominal amounts.
Th e nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
Other long-term employee benefi ts are measured as net total of the present value of the defi ned benefi t obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.
(a) LeaveTh e liability for employee benefi ts includes provisions for annual leave and long service leave. Th e provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the department is estimated to be less than the annual entitlement for sick leave.
Th e leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will apply at the time the leave is taken, including the department’s employee superannuation contribution rates to the extent that leave is likely to be taken during service rather than paid out on termination.
Th e liability for annual leave for employees refl ects the value of total annual leave entitlements at 30 June 2011 and is recognised as a current liability, with amounts expected to be taken or paid within 12 months measured at nominal values and amounts not expected to be taken or paid within 12 months measured at net present value.
Th e liability for long service leave has been determined by reference to the work of the Australian Government Actuary. Th e estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and infl ation.
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The department received $3,420 under the Paid Parental Leave Scheme during 2010– 11; these amounts were offset against the amounts paid to employees in the statement of comprehensive income.
(b) Separation and redundancyProvision is made for separation and redundancy benefit payments. The department recognises a provision for termination when it has a detailed formal plan for the terminations and has informed those employees affected that the terminations will be carried out.
(c) SuperannuationStaff of the department are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance and Deregulation as an administered item.
The department makes employer contributions to the employee superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the government of the superannuation entitlements of the department’s employees. The department accounts for the contributions as if they were contributions to defined contribution plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions as at year end.
1.10 LeasesA distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets. In operating leases, the lessor effectively retains substantially all such risks and benefits.
Where an asset is acquired by means of a finance lease, the asset is capitalised and recognised at the lower of the fair value of the leased asset and the present value of minimum lease payments at the inception of the contract and a liability is also recognised at the same time for the same amount.
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Th e discount rate used to calculate the present value of the minimum lease payments is the interest rate implicit in the lease. Assets acquired under a fi nance lease are amortised over the useful life of the asset. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are expensed on a straight line basis over the term of the lease which is representative of the pattern of benefi ts derived from the leased assets.
1.11 Borrowing costsAll borrowing costs are expensed as incurred.
1.12 Cash and cash equivalentsCash and cash equivalents includes cash on hand, cash held with outsiders, demand deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignifi cant risk of changes in value. Cash is recognised at its nominal amount.
1.13 Financial assetsTh e department classifi es its fi nancial assets as loans and receivables.
Th e classifi cation depends on the nature and purpose of the fi nancial assets and is determined at the time of initial recognition.
Financial assets are recognised and derecognised upon ‘trade date’.
Eff ective interest methodTh e eff ective interest method is a method of calculating the amortised cost of a fi nancial asset and of allocating interest income over the relevant period. Th e eff ective interest rate is the rate that exactly discounts estimated future cash receipts over the expected life of the fi nancial asset, or, where appropriate, a shorter period.
Income is recognised on an eff ective interest rate basis except for fi nancial assets that are recognised ‘at fair value through profi t or loss’.
Loans and receivablesTrade receivables, loans and other receivables that have fi xed or determinable payments that are not quoted in an active market are classifi ed as ‘loans and receivables’. Th ey are included in current assets, except for maturities greater than 12 months after the balance sheet date. Th ese are classifi ed as non-current assets. Loans and receivables are measured at amortised cost using the eff ective interest method less impairment. Interest is recognised by applying the eff ective interest rate.
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Impairment of financial assetsFinancial assets are held at amortised cost and are assessed for impairment at each balance date.
If there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the income statement.
1.14 Financial liabilitiesFinancial liabilities are classified as other financial liabilities.
Financial liabilities are recognised and derecognised upon ‘trade date’.
Other financial liabilitiesOther financial liabilities 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.
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 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).
1.15 Contingent liabilities and contingent assetsContingent liabilities and contingent assets are not recognised in the balance sheet but are disclosed in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote.
1.16 Financial guarantee contractsFinancial guarantee contracts are accounted for in accordance with AASB 139 Financial instruments: recognition and measurement. They are not treated as a contingent liability, as they are regarded as financial instruments outside the scope of AASB 137 Provisions, contingent liabilities and contingent assets.
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1.17 Acquisition of assets Assets are recorded at cost on acquisition except as stated below. Th e cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised at the amounts at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.
1.18 Infrastructure, plant and equipment Asset recognition thresholdPurchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are signifi cant in total). Th ere is a $nil threshold for heritage and cultural assets (consisting mainly of artwork).
Th e 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. Th is is particularly relevant to ‘make good’ provisions in property leases taken up by the department where there exists an obligation to restore the lease to its original condition. Th ese costs are included in the value of the departmental and administered property, plant and equipment with a corresponding provision for the ‘make good’ recognised.
Revaluations Fair values for each class of asset are determined as shown below:
Asset class Fair value measured atLand Market selling priceBuildings exc. leasehold improvements Market selling price or, in the case of
specialised assets, depreciated replacement costLeasehold improvements Depreciated replacement costInfrastructure, plant and equipment Market selling price or, in the case of
specialised assets, depreciated replacement costHeritage and cultural assets Market selling price
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Following initial recognition at cost, infrastructure, plant and equipment are carried at fair value less subsequent 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 class that was previously recognised through profit and loss. Revaluation decrements for a class of assets are recognised 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 is restated to the revalued amount.
All leasehold improvement assets including infrastructure, plant and equipment were formally valued as at 30 April 2010 by Preston Rowe Paterson NSW Ltd.
DepreciationDepreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the department using, in all cases, the straight line method of depreciation.
Depreciation rates (useful lives) are reviewed at each reporting date and necessary adjustments are made in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated only when assets are revalued.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
2011 2010Departmental assetsBuildings on freehold land 30–50 years n/aLeasehold improvements lease term lease termPlant and equipment 4 to 10 years 4 to 10 yearsAdministered assetsBuildings on freehold land 30–50 years 100 yearsLeasehold improvements lease term lease termPlant and equipment 4 to 50 years 4 to 50 years
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Th e department has items of property, plant and equipment that are heritage and cultural assets. Heritage and cultural assets within the department have been assessed to have indefi nite lives or useful limited lives. Th ese heritage and cultural assets are stored, managed, displayed, repaired and restored in ways that will maintain their cultural or heritage value over time. Where conservation, restoration and preservation activities demonstrate that an asset will be maintained for an indefi nite period, these items are considered to have indefi nite useful lives and are therefore, not subject to depreciation which is in accordance with the implementation guidance (G4) provided in AASB 116.
ImpairmentAll assets were assessed for impairment at 30 June 2011. 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.
Th e recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash fl ows expected to be derived from the asset. Where the future economic benefi t of an asset is not primarily dependent on the asset’s ability to generate future cash fl ows, and the asset would be replaced if the department were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Assets held for saleAs at 30 June 2011 no assets were classifi ed as being held for sale.
DerecognitionAn item of property, plant and equipment is derecognised upon disposal or when no further future economic benefi ts are expected from its use or disposal.
Heritage and cultural assetsHeritage and cultural items include artworks held by the National Portrait Gallery (NPG) and Artbank that are of national, historical or cultural signifi cance.
Both NPG and Artbank maintain their own documented processes and procedures for the storage, documentation, restoration and preservation of various artworks depending on their type and sensitivity.
Th e NPG applies the principles articulated in the International Council of Museums code of ethics for museums. Artbank maintain an ongoing preservation and collections maintenance program to preserve the physical integrity of the artwork within the collection. Both plans include conservation and preservation policies relating to the storage of these items under appropriate conditions, cataloguing, maintenance and restoration.
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1.19 Intangibles The department’s intangible assets comprise internally developed software for internal use and off the shelf software applications. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the department’s software are 4 to 5 years (2009–10: 4 to 5 years).
All software assets were assessed for indications of impairment as at 30 June 2011.
1.20 TaxationThe department is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST).
Revenues, expenses, assets and liabilities are recognised net of GST, except:
• where the amount of GST incurred is not recoverable from the Australian Taxation Office
• for receivables and payables which are recognised inclusive of GST
• commitments payable and commitments receivable.
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1.21 Reporting of administered activities Administered revenues, expenses, assets, liabilities, contingencies and commitments and cash fl ows are disclosed in the schedule of administered items and related notes.
Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of accounting standards.
(a) Administered cash transfers to and from the Offi cial Public AccountRevenue collected by the department for use by the government rather than the department is administered revenue. Collections are transferred to the Offi cial Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of the government. Th ese transfers to and from the OPA are adjustments to the administered cash held by the department on behalf of the government and reported as such in the statement of cash fl ows in the schedule of administered items and in the administered reconciliation table in Note 21: Administered reconciliation table.
(b) RevenueAll administered revenues are revenues relating to the course of ordinary activities performed by the department on behalf of the Australian Government.
(c) Loans and receivablesWhere loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the eff ective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through profi t or loss.
(d) Former Governors-General benefi tsEntitlements provided to former Governors-General are decided by the Prime Minister of the day. Th e department has responsibility for the administration of non-cash benefi ts provided to former Governors-General. Th ese entitlements are regarded as post-employment benefi ts and represent the provision of offi ce facilities, administrative support and transport. A future liability for these benefi ts is recognised in the administered accounts. Relevant disclosures are made at Note 20E.
(e) Administered investmentsAdministered investments in subsidiaries, joint ventures and associates are not consolidated because their consolidation is relevant only at the whole-of-government level.
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Administered investments other than those held for sale are classified as available-for-sale and are measured at their fair value as at 30 June 2011. Fair value has been taken to be the Australian Government’s proportional interest in the net assets of the entities as at the end of the reporting period.
(f ) GrantsThe department administers a number of grants on behalf of the government. The department applies a uniform policy for all grants.
Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed; or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the government enters into an agreement to make these grants but services have not been performed or criteria satisfied. Where grants moneys are paid in advance of performance or eligibility, a prepayment is recognised.
(g) Administered employee benefitsThe expense and liabilities for services rendered by staff employed in the Prime Minister’s official establishments are recognised as an administered item. Accounting policies are consistent with those applied to departmental items.
(h) Payments to CAC Act bodiesPayments to CAC Act bodies from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio department. The loan to the Australian Sports Commission is reported at its nominal value and was transferred to the department from DoHA through the machinery of government changes (see Note 10 and 19B). The appropriation to the department is disclosed in Table A of the Appropriations note.
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n o t e 2 . e V e n t s o c c u r r i n g a F t e r t H e b a l a n c e s H e e t d a t e
Th e department is not aware of any post balance date event with a material eff ect on the fi nancial statements.
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n o t e 3 . e x P e n s e s
2011 $’000
2010 $’000
Note 3A. Employee benefitsWages and salaries 64,995 54,161Superannuation:
Defined contribution plans 8,072 7,070Defined benefit plans 4,167 2,761
Leave and other entitlements 10,222 6,504Separations and redundancies 540 21Other 472 420Total employee benefits 88,468 70,937
Note 3B. SuppliersGoods and servicesConsultants, legal, contractors and secondees 20,304 8,252Equipment, repairs and maintenance 2,044 1,496General expenses 10,843 11,235Office accommodation, facility management and security 3,103 1,296Information technology and communication 19,200 19,163Total goods and services 55,494 41,442
Goods and services are made up of:Provision of goods – related entities 182 273Provision of goods – external parties 3,600 3,434Rendering of services – related entities 12,377 8,815Rendering of services – external parties1 39,335 28,920
Total goods and services 55,494 41,442
Other supplier expensesOperating lease rentals – external parties:
Minimum lease repayments1 10,492 9,234Workers compensation expenses 742 434Total other supplier expenses 11,234 9,668Total supplier expenses 66,728 51,1101 Cleaning costs were incorrectly allocated to minimum lease payments in 2009–10.
The comparative has been updated to reflect a reclassification to goods and services expense.
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2011$’000
2010$’000
Note 3C. GrantsPublic sector:
Australian Government entities (related entities) 956 – Private sector:
Non-profi t organisations 8,820 5,086Overseas organisations1 5,000 –Other 15 –
Total grants 14,791 5,0861 Contribution to the New Zealand earthquake recovery eff ort.
Note 3D. Depreciation and amortisationDepreciation:
Buildings 912 – Property, plant and equipment 4,889 4,258
Total depreciation 5,801 4,258
Amortisation:Intangibles – computer software 1,048 747
Total amortisation 1,048 747Total depreciation and amortisation 6,849 5,005
Note 3E. Finance costsUnwinding of discount 23 23Total fi nance costs 23 23
Note 3F. Write-down and impairment of assetsAsset write-downs and impairments from:
Impairment on fi nancial instruments 23 3Impairment of property, plant and equipment 6 –
Total write-down and impairment of assets 29 3
Note 3G. Losses from asset salesProperty, plant and equipment:
Proceeds from sale (27) (36)Carrying value of assets sold 69 257Selling expense – 21
Total losses from asset sales 42 242
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n o t e 4 . i n c o m e
2011 $’000
2010 $’000
RevenueNote 4A. Sale of goods and rendering of servicesProvision of goods – related entities 114 – Provision of goods – external parties 1,560 93Rendering of services – related entities 8,582 14,029Rendering of services – external parties 6,581 4,285Total sale of goods and rendering of services 16,837 18,407
GainsNote 4B. Resources received free of chargeSeconded staff 2,833 2,550ANAO audit fee 185 145Assets received free of charge 202 – Assets first found – 11Total other gains 3,220 2,706
Revenue from governmentNote 4C. Revenue from governmentAppropriations:
Departmental appropriation 155,541 114,655Total revenue from government 155,541 114,655
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n o t e 5 . o t H e r c o m P r e H e n s i V e i n c o m e
2011$’000
2010$’000
Note 5A. Changes in asset revaluation reserveRevaluation of property, plant and equipment – 2,497Revaluation of make good 13 55Total changes in asset revaluation reserve 13 2,552
Note 5B. Total comprehensive income (loss) attributable to the departmentTotal comprehensive income (loss) attributable to the Australian Government1 (1,319) 5,914Plus: non-appropriated expenses
Depreciation and amortisation expenses 6,849 –Total comprehensive income (loss) attributable to the department 5,530 5,914
1 As per the statement of comprehensive income
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n o t e 6 . F i n a n c i a l a s s e t s
2011 $’000
2010 $’000
Note 6A. Cash and cash equivalentsCash on hand or on deposit 636 739Special accounts 7,377 – Total cash and cash equivalents 8,013 739
Note 6B. Trade and other receivablesGoods and services:
Goods and services – related entities 1,675 2,321Goods and services – external parties 1,327 82
Total receivables for goods and services 3,002 2,403
Appropriation receivable:For existing programs 41,077 26,922For departmental supplementations 5,201 2,860For special accounts 3,199 –
Total appropriations receivable 49,477 29,782
Other receivables:GST receivable from the Australian Taxation Office 7 489
Total other receivables 7 489Total trade and other receivables (gross) 52,486 32,674
Less impairment allowance account:Goods and services 101 –
Total impairment allowance account 101 – Total trade and other receivables (net) 52,385 32,674
Receivables are expected to be recovered in:No more than 12 months 52,385 32,674More than 12 months – –
Total trade and other receivables (net) 52,385 32,674
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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2011$’000
2010$’000
Receivables are aged as follows:Not overdue 52,046 32,446Overdue by:
0 to 30 days 260 4531 to 60 days 55 18361 to 90 days 34 –
More than 90 days 91 – Total receivables (gross) 52,486 32,674
Th e impairment allowance account is aged as follows:Not overdue – – Overdue by:
0 to 30 days – – 31 to 60 days – – 61 to 90 days 10 –
More than 90 days 91 – Total impairment allowance account 101 –
Reconciliation of the impairment allowance account:Movement in relation to 2011
Goods and services
$'000Total $'000
Opening balance – – Amounts written off (15) (15)Amounts recovered and reversed – – Amounts recognised – restructure (Note 10) 116 116Increase/decrease recognised in net surplus – –
Closing balance 101 101
Department of the Prime Minister and Cabinet
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Department of the Prime Minister and Cabinet
N O T E S T O A N D F O R M I N g p A R T O F T H E F I N A N C I A L S TA T E M E N T Sfor the period ended 30 June 2011
Movement in relation to 2010Goods and
services $'000
Total $'000
Opening balance 14 14Amounts written off (14) (14)Amounts recovered and reversed – – Increase/decrease recognised in net surplus – –
Closing balance – –
2011 $’000
2010 $’000
Note 6C. Accrued revenueRecovery of departmental costs 6,189 2,993Total accrued revenue 6,189 2,993
Accrued revenues are expected to be recovered in:No more than 12 months 6,189 2,993More than 12 months – – Total accrued revenue 6,189 2,993
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 7 . n o n - F i n a n c i a l a s s e t s
2011$’000
2010$’000
Note 7A. BuildingsBuildings on freehold land
Fair value 85,425 – Accumulated depreciation (4,397) –
Total buildings on freehold land 81,028 –
Leasehold improvementsFair value 171 – Accumulated depreciation (120) –
Total leasehold improvements 51 – Total buildings 81,079 –
Note 7B. Property, plant and equipmentHeritage and cultural
Fair value 59,675 – Accumulated depreciation (211) –
Total heritage and cultural 59,464 –
Other property, plant and equipmentFair value 36,530 32,629Accumulated depreciation (6,242) (672)Work in progress 5,316 70
Total other property, plant and equipment 35,604 32,027Total property, plant and equipment 95,068 32,027
No indicators of impairment were found for non-fi nancial assets. All revaluations were conducted in accordance with the revaluation policy stated at Note 1. A revaluation was conducted as at 30 April 2010 by independent valuer Preston Rowe Paterson NSW Pty Ltd.
No revaluation adjustments were recorded in 2010–11 for buildings or property, plant and equipment. (2009–10: $2,496,696 upward revaluation to the asset revaluation reserve in equity).
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Not
e 7C.
Ana
lysis
of pr
oper
ty, p
lant
and e
quip
men
tTA
BLE
A –
Rec
onci
liatio
n of
the o
peni
ng an
d cl
osin
g ba
lanc
es o
f pro
pert
y, pl
ant a
nd eq
uipm
ent (
2010
–11)
Build
ings
Leas
ehol
d im
prov
emen
tsTo
tal l
and
and
build
ings
Her
itage
and
cultu
ral
Oth
er p
rope
rty,
plan
t and
eq
uipm
ent
$’00
0To
tal
$’00
0A
s at 1
July
201
0W
ork
in p
rogr
ess
–
–
–
–
7070
Gro
ss b
ook
valu
e –
–
–
–
32
,629
32,6
29A
ccum
ulat
ed d
epre
ciatio
n/am
ortis
atio
n an
d im
pairm
ent
–
–
–
–
(672
)(6
72)
Net
boo
k va
lue 1
July
201
0 –
–
–
–
32
,027
32,0
27A
dditi
ons:
By p
urch
ase
–
1919
901
7,60
18,
521
From
acqu
isitio
n of
entit
ies o
r ope
ratio
ns
(inclu
ding
restr
uctu
ring)
81,9
3438
81,9
7258
,708
1,08
614
1,76
6Im
pairm
ents
reco
gnise
d in
the o
pera
ting
resu
lt –
–
–
–
(6
)(6
)D
epre
ciatio
n ex
pens
e(9
06)
(6)
(912
)(7
6)(4
,813
)(5
,801
)
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
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Build
ings
Leas
ehol
d im
prov
emen
tsTo
tal l
and
and
build
ings
Her
itage
and
cultu
ral
Oth
er p
rope
rty,
plan
t and
eq
uipm
ent
$’00
0To
tal
$’00
0D
ispos
als:
From
disp
osal
of en
titie
s or o
pera
tions
(inc
ludi
ng
restr
uctu
ring)
–
–
–
–
(291
)(2
91)
Oth
er d
ispos
als –
–
–
(6
9) –
(6
9)N
et b
ook
valu
e 30
June
201
181
,028
5181
,079
59,4
6435
,604
176,
147
Net
boo
k va
lue a
s of 3
0 Jun
e 201
1 rep
rese
nted
by:
Wor
k in
pro
gres
s –
–
–
–
5,
316
5,31
6G
ross
boo
k va
lue
85,4
2517
185
,596
59,6
7536
,530
181,
801
Acc
umul
ated
dep
recia
tion
and
impa
irmen
t(4
,397
)(1
20)
(4,5
17)
(211
)(6
,242
)(1
0,97
0)C
losin
g ne
t boo
k va
lue a
t 30
June
201
181
,028
5181
,079
59,4
6435
,604
176,
147
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
228
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TABLE B – Reconciliation of the opening and closing balances of property, plant and equipment (2009–10)
Other property,
plant and equipment
$’000Total $’000
As at 1 July 2009Work in progress 113 113Gross book value 33,868 33,868 Accumulated depreciation/amortisation and impairment (5,030) (5,030)Net book value 1 July 2009 28,951 28,951Additions:
By purchase 4,952 4,952Asset first found 11 11
Revaluations and impairments through other comprehensive income 2,497 2,497Depreciation/amortisation expense (4,258) (4,258)Other movements 53 53Disposals:
Other disposals (179) (179)Net book value 30 June 2010 32,027 32,027Net book value as of 30 June 2010 represented by:Work in progress 70 70Gross book value 32,629 32,629Accumulated depreciation and impairment (672) (672)Closing net book value at 30 June 2010 32,027 32,027
Department of the Prime Minister and Cabinet
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2010$’000
Note 7D. IntangiblesComputer software:
Internally developed – in progress 1,027 385Internally developed – in use 3,987 3,859Purchased 1,340 1,028
Total intangibles (gross) 6,354 5,272
Accumulated amortisation (3,119) (2,018)Total intangibles (net) 3,235 3,254
No indicators of impairment were found for intangible assets.
All revaluations were conducted in accordance with the revaluation policy stated at Note 1.
No intangibles are expected to be sold or disposed of within the next 12 months.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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Note 7E. Analysis of intangiblesTABLE A – Reconciliation of the opening and closing balances of intangibles (2010–11)
Computer software – internally developed
$’000
Computer software – purchased
$’000Total$’000
As at 1 July 2010Work in progress 385 – 385Gross book value 3,859 1,028 4,887Accumulated amortisation and impairment (1,376) (642) (2,018)Net book value 1 July 2010 2,868 386 3,254Additions:
By purchase 717 260 977From acquisitions of entities or operations (including restructuring) – 52 52
Amortisation (828) (220) (1,048)Net book value 30 June 2011 2,757 478 3,235Net book value as of 30 June 2011 represented by:Work in progress 1,027 – 1,027Gross book value 3,987 1,340 5,327Accumulated amortisation and impairment losses (2,257) (862) (3,119)Closing net book value at 30 June 2011 2,757 478 3,235
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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TABLE B – Reconciliation of the opening and closing balances of intangibles (2009–10)
Computer software – internally developed
$’000
Computer software – purchased
$’000Total$’000
As at 1 July 2009Work in progress 312 – 312Gross book value 4,421 1,837 6,258Accumulated depreciation/amortisation and impairment (2,644) (1,311) (3,955)Net book value 1 July 2009 2,089 526 2,615Additions:
By purchase 1,423 34 1,457Amortisation (613) (134) (747)Disposals:
Other disposals (31) (40) (71)Net book value 30 June 2010 2,868 386 3,254Net book value as of 30 June 2010 represented by:Work in progress 385 – 385Gross book value 3,859 1,028 4,887Accumulated depreciation/amortisation and impairment losses (1,376) (642) (2,018)Closing net book value at 30 June 2010 2,868 386 3,254
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
2011$’000
2010$’000
Note 7F. InventoriesInventories held for sale:
Finished goods 53 – Total inventories held for sale 53 – Total inventories 53 –
No items of inventory were recognised at fair value less cost to sell.All inventory is expected to be sold or distributed in the next 12 months.
Note 7G. Other non-financial assetsPrepayments 3,899 875Lease incentive – 24Total prepayments 3,899 899
Prepayments are expected to be recovered in:No more than 12 months 3,822 899More than 12 months 77 –
Total prepayments 3,899 899
No indicators of impairment were found for other non-financial assets.
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 8 . P aya b l e s
2011$’000
2010$’000
Note 8A. SuppliersTrade creditors 13,874 4,898Total suppliers payable 13,874 4,898 Supplier payables are expected to be settled within 12 months:
Related entities 1,940 2,360External parties 11,934 2,538
Total supplier payable 13,874 4,898
Settlement is usually made within 30 days.
Note 8B. GrantsPublic sector:
Australian Government entities (related entities) – 8Private sector:
Not-for-profi t organisations 5,703 629Total grants 5,703 637
Total grants are expected to be settled in:No more than 12 months 5,703 637More than 12 months – –
Total grants, subsidies and personal benefi ts 5,703 637
Settlement is usually made according to the terms and conditions of each grant. Th is is usually within 30 days of performance or eligibility.
Note 8C. Other payablesSalaries and wages 2,771 3,095Superannuation 362 310Other 187 68Unearned income 3,482 603Total other payables 6,802 4,076
Total other payables are expected to be settled in:No more than 12 months 6,546 4,076More than 12 months 256 –
Total other payables 6,802 4,076
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 9 . P r o V i s i o n s
2011$’000
2010$’000
Note 9A. Employee provisionsAnnual leave 12,689 8,278Long service leave 16,178 9,542Total employee provisions 28,867 17,820
Employee provisions are expected to be settled in:
No more than 12 months 23,544 15,383More than 12 months 5,323 2,437
Total employee provisions 28,867 17,820
Note 9B. Other provisionsLease provision 4,543 3,816Make good provision 384 333Provision for lease incentive 306 398Total other provisions 5,233 4,547
Other provisions are expected to be settled in:No more than 12 months 119 398More than 12 months 5,114 4,149
Total other provisions 5,233 4,547
Reconciliation of other provisions:Movement in relation to 2011
Lease provision
$’000
Make good provision
$’000
Provision for lease incentive
$’000Total$’000
Carrying amount 1 July 2010 3,816 333 398 4,547Additional provisions made 727 21 – 748Amounts brought on through restructuring (Note 10) – 30 – 30Amounts used – – (92) (92)Amounts reversed – (23) – (23)Unwinding of discount or charge in discount rate – 23 – 23
Closing balance 30 June 2011 4,543 384 306 5,233
The department currently has six agreements for the leasing of premises which have provisions requiring the department to restore the premises to their original condition at the conclusion of the lease. The department has made a provision to reflect the present value of this obligation.
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 0 . r e s t r u c t u r i n g
Note 10A. Departmental restructuringAs a result of a restructuring of administrative arrangements, the department assumed responsibility for the following functions on 14 September 2010:
• National compact with not-for-profi ts, volunteering and philanthropy and the international Indigenous repatriation program from the Department of Families, Housing, Community Services and Indigenous Aff airs (FaHCSIA). Assets and liabilities were transferred as at 31 January 2011.
• Cyber policy coordination, funding was received from the Australian Security Intelligence Organisation and the Department of Defence. No assets or liabilities were transferred as part of this function.
• Sport and recreation function from the Department of Health and Ageing (DoHA). Assets and liabilities were transferred as at 28 October 2010.
• Cultural aff airs, including movable cultural heritage and support for the arts from the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC). Th is arrangement transferred the National Portrait Gallery and the Art Rental Special Account. Assets and liabilities were transferred as at 31 January 2011.
In respect of functions assumed, the net book values of assets and liabilities transferred to the department for no consideration and recognised as at the date of transfer were:
2011$’000
Department of Families, Housing, Community Services and Indigenous Aff airsAssets recognised
Appropriation receivable 143Total assets recognised 143Liabilities recognised
Employee provisions 275Total liabilities recognised 275Net liabilities assumed (132)Department of Health and AgeingAssets recognised
Appropriation receivable 945Inventories 23
Total assets recognised 968Liabilities recognised
Employee provisions 1,141Total liabilities recognised 1,141Net liabilities assumed (173)
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ents
2011$’000
Department of Sustainability, Environment, Water, Population and Communities Assets recognised
Cash and cash equivalents 7,451Trade and other receivables 883Appropriation receivable 7,123Land and buildings 81,972Property, plant and equipment 59,794Intangibles 52Inventories 30Other non-financial assets 55
Total assets recognised 157,360Liabilities recognised
Supplier payables 732Other payables 1,686Employee provisions 5,958
Other provisions 33Total liabilities recognised 8,409Net assets assumed 148,951
Net assets assumed from all entities 148,646
Department of the Prime Minister and Cabinet
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Income and expenses for the functions assumed by the department were as follows:
2011$’000
National compact with not-for-profi ts, volunteering and philanthropy and the international Indigenous repatriation programIncomeRecognised by the department – Recognised by FaHCSIA – Total income –
ExpensesRecognised by the department 347Recognised by FaHCSIA 630Total expenses 977
Sport functionIncomeRecognised by the department 399Recognised by DoHA – Total income 399
ExpensesRecognised by the department 5,277Recognised by DoHA 1,681Total expenses 6,958
Arts and culture programsIncomeRecognised by the department 4,282Recognised by DSEWPaC 2,243Total income 6,958
ExpensesRecognised by the department 32,996Recognised by DSEWPaC 29,853Total expenses 62,849
Department of the Prime Minister and Cabinet
N O T E S T O A N D F O R M I N g p A R T O F T H E F I N A N C I A L S TA T E M E N T Sfor the period ended 30 June 2011
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As a result of a restructuring of administrative arrangements, the department relinquished responsibility for the following functions:
• Office of the Australian Information Commissioner on 1 November 2010 to the Office of the Australian Information Commissioner.
• Office of the Commonwealth Coordinator General on 14 September 2010 to the Department of Infrastructure and Transport. No assets or liabilities were transferred as part of this function.
• The ownership and property management of official establishments on 14 September 2010 to the Department of Finance and Deregulation. No assets or liabilities were transferred as part of the departmental function.
In respect of functions relinquished, the following assets and liabilities were transferred by the department:
2011$’000
Office of the Australian Information CommissionerAssets relinquished
Property, plant and equipment 291Appropriation receivable 2,160
Total assets relinquished 2,451Net assets relinquished to all entities 2,451
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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Note 10B. Administered restructuringAs a result of a restructuring of administrative arrangements, the department assumed responsibility for the following functions:
• National compact with not-for-profi ts, volunteering and philanthropy and the international Indigenous repatriation program on 14 September 2010 from FaHCSIA. No assets and liabilities were transferred as part of the administered restructuring.
• Sport and recreation function on 14 September 2010 from DoHA. Assets and liabilities were transferred as at 28 October 2010. Assets primarily consisted of administered investments in CAC Act bodies and a loan to the Australian Sports Commission which were transferred to the department from DoHA through the machinery of government changes.
• Cultural aff airs function, including movable cultural heritage and support for the arts moved from DSEWPaC on 14 September 2010. Assets and liabilities were transferred as at 31 January 2011. Assets primarily consisted of administered investments in CAC Act bodies.
In respect of functions assumed, the net book values of assets and liabilities transferred to the department for no consideration and recognised as at the date of transfer were:
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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ents
2011$’000
Department of Health and AgeingAssets recognised
Trade and other receivables 80Administered investments 266,565Loan receivable 4,000
Total assets recognised 270,645Net assets assumed 270,645
Department of Sustainability, Environment, Water, Population and CommunitiesAssets recognised
Trade and other receivables 1,438Administered investments 7,000,903Land and buildings 33,120Other non-financial assets 200
Total assets recognised 7,035,661Liabilities recognised
Supplier payables 40Grant payables 16,057
Total liabilities recognised 16,097Net assets assumed 7,019,564
Net assets assumed from all entities 7,290,209
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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Income and expenses for the functions assumed by the department were as follows:
2011$’000
National compact with not-for-profi ts, volunteering and philanthropy and the international Indigenous repatriation programIncomeRecognised by the department – Recognised by FaHCSIA – Total income –
ExpensesRecognised by the department 123Recognised by FaHCSIA 5,572Total expenses 5,695
Sports functionIncomeRecognised by the department 1,144Recognised by DoHA – Total income 1,144
ExpensesRecognised by the department 48,910Recognised by DoHA 19,966Total expenses 68,876
Arts and culture programsIncomeRecognised by the department 494Recognised by SEWPaC 1,935Total income 2,429
ExpensesRecognised by the department 72,521Recognised by SEWPaC 128,854Total expenses 201,375
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
As a result of a restructuring of administrative arrangements, the department relinquished responsibility for the ownership and property management of official establishments on 14 September 2010 to the Department of Finance and Deregulation.
In respect of functions relinquished, the following assets and liabilities were transferred by the department:
2011$’000
Department of Finance and DeregulationAssets relinquished
Land and buildings 41,394Total assets relinquished 41,394Net assets relinquished to all entities 41,394
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 1 . c a s H F l o w r e c o n c i l i a t i o n
2011$’000
2010$’000
Reconciliation of cash and cash equivalents as per balance sheet to cash fl ow statementCash and cash equivalents as per:
Cash fl ow statement 8,013 739Balance sheet 8,013 739
Diff erence – –
Reconciliation of net cost of services to net cash from operating activities:Net cost of services (156,873) (111,293)Add revenue from government 155,541 114,655
Adjustments for non-cash itemsNet loss from sale of assets 42 242Depreciation and amortisation 6,849 5,005Net write down of non-fi nancial assets 6 3Net GST received – (32)Assets received free of charge (202) –
Changes in assets/liabilitiesDecrease/(increase) in net receivables (17,063) (13,213)Increase/(decrease) in employee provisions 4,814 1,900Increase/(decrease) in suppliers payable 5,384 716Increase/(decrease) in unearned income 2,879 (258)Increase/(decrease) in make good provisions 13 – Increase/(decrease) in grants payable 5,066 257Increase/(decrease) in other provisions 686 1,438Increase/(decrease) in other payables (153) 36Decrease/(increase) in prepayments (3,000) 108Net cash from / (used by) operating activities 3,989 (436)
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 2 . c o n t i n g e n t l i a b i l i t i e s a n d a s s e t s
Quantifiable contingenciesThe department is not aware of any quantifiable contingent liabilities or assets as at signing date that would require disclosure in the financial statements.
Unquantifiable contingenciesThe department is not aware of any unquantifiable contingent liabilities and assets as at the signing date that would require disclosure in the financial statements.
Significant remote contingenciesThe department is not aware of any remote contingent liabilities and assets as at the signing date that would require disclosure in the financial statements.
There were no departmental contingent liabilities or assets reported in 2009–10.
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 3 . i m P a c t o F c H o g m ta s K F o r c e o n t H e 2 0 1 1 i n c o m e s ta t e m e n t
Departmental (excluding CHOGM Taskforce)
$’000
CHOGM Taskforce
$’000Total‘$’000
EXPENSESEmployee benefi ts 84,575 3,893 88,468 Supplier expenses 59,658 7,070 66,728 Grants 14,541 250 14,791 Depreciation and amortisation 6,808 41 6,849 Finance costs 23 – 23 Write-down and impairment of assets 29 – 29 Losses from asset sales 42 – 42 Total expenses 165,676 11,254 176,930
LESS:OWN-SOURCE INCOMERevenueSale of goods and rendering of services 16,837 – 16,837 Total revenue 16,837 – 16,837
GainsResources received free of charge 3,220 – 3,220 Total gains 3,220 – 3,220 Total own-source income 20,057 – 20,057
Net cost of services 145,619 11,254 156,873 Revenue from government 137,672 17,869 155,541 Surplus (defi cit) attributable to the Australian Government (7,947) 6,615 (1,332)
OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserve 13 – 13 Total comprehensive income (loss) attributable to the Australian Government (7,934) 6,615 (1,319)
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n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 4 . s e n i o r e x e c u t i V e r e m u n e r a t i o n
Note 14A. Senior executive remuneration expense for the reporting period
2011 2010
Short-term employee benefits
Salary (including annual leave taken) 11,861,000 10,633,154
Annual leave accrued 121,244 186,972
Other1 1,503,380 1,441,450
Total short-term employee benefits 13,485,624 12,261,576
Post-employment benefits
Superannuation 2,097,086 1,797,155
Total post-employment benefits 2,097,086 1,797,155
Other long-term benefits
Long-service leave 327,247 264,086
Total other long-term benefits 327,247 264,086
Termination benefits – –
Total 15,909,957 14,322,817
1 Includes motor vehicle, other allowances and reportable fringe benefits.
Notes:
(a) Note 14A relates to senior executives employed during the year.
(b) Note 14A was prepared on an accrual basis.
(c) Note 14A excludes acting arrangements and part-year service where remuneration expensed was less than $150,000.
(d) No performance bonuses were expensed during the reporting period, or comparative period in relation to senior executives.
247
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Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
Not
e 14B
. Ave
rage
annu
al re
mun
erat
ion
pack
ages
and b
onus
paid
for s
ubsta
ntiv
e sen
ior e
xecu
tives
as at
the e
nd of
the r
epor
ting p
erio
d
as at
30
June
201
1as
at 3
0 Ju
ne 2
010
Fixe
d el
emen
tsFi
xed
elem
ents
Fixe
d el
emen
ts an
d bo
nus p
aid
Seni
or
exec
utiv
eN
o.Sa
lary $
Allo
wanc
es $To
tal $
Seni
or
exec
utiv
eN
o.Sa
lary $
Allo
wanc
es $ T
otal $
Tota
l rem
uner
atio
n (in
cludi
ng p
art-
time a
rrang
emen
ts):
Less
than
$15
0,00
0 –
–
–
– –
–
$1
50,0
00 to
$17
9,99
927
146,
456
20,5
5816
7,01
423
144,
430
23,0
6916
7,49
9$1
80,0
00 to
$20
9,99
928
166,
131
22,4
1018
8,54
123
167,
049
23,2
1719
0,26
6$2
10,0
00 to
$23
9,99
97
208,
915
16,4
2922
5,34
413
209,
961
23,0
0023
2,96
1$2
40,0
00 to
$26
9,99
97
229,
973
19,7
1424
9,68
7 –
–
–
–
$2
70,0
00 to
$29
9,99
93
255,
953
25,6
6428
1,61
75
255,
006
25,8
0028
0,80
6$3
00,0
00 to
$32
9,99
91
274,
011
26,9
9330
1,00
42
303,
020
14,5
0031
7,52
0$3
30,0
00 to
$35
9,99
91
311,
418
25,0
0033
6,41
81
333,
413
25,0
0035
8,41
3$3
60,0
00 to
$38
9,99
9 1
3
85,4
99
– 3
85,4
99
134
1,61
225
,000
366,
612
$390
,000
to $
419,
999
139
9,50
7–
399,
507
–
–
–
–
$420
,000
to $
449,
999
142
9,72
0–
429,
720
144
1,20
9 –
44
1,20
9$4
50,0
00 to
$47
9,99
92
459,
320
–45
9,32
0 –
–
–
–
To
tal
7969
248
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Notes to Note 14B:(a) Note 14B reports on substantive senior executives who are employed by the
department as at the end of the reporting period. Fixed elements are based on the employment agreement for each individual – each row represents an average annualised figure (based on headcount) for the individuals in the remuneration package band (i.e. the ‘Total’ column). As at 30 June 2011 this included:
(a) 11 additional senior executives in relation to restructuring activities of the department (refer Note 10) (2010: 0)
(b) 6 senior executives on extended leave (2010: 11)
(c) 1 senior executive for CHOGM (2010: 1)
(d) 3 senior executives for the COAG Reform Council (2010: 2)
(e) Special adviser (2010: Nil)
(f ) Australian Mental Health Commissioner Designate (2010: Nil)
(b) The salary included for the Secretary has been calculated in accordance with the Public Sector Act 1999 (Determination under Section 61; Secretaries’ remuneration and other conditions).
(c) Performance bonuses are available to senior executives who commenced with the department during the year in relation to restructuring activities. Bonuses will be based on the performance rating of each individual and are payable in 2011–12. The maximum bonus that an individual could receive was 9 per cent of their base salary. No performance bonuses were paid to senior executives during the reporting period, or comparative period.
Variable elements:Variable elements are not included in the ‘Fixed elements and bonus paid’ table above. The following variable elements are available as part of senior executives’ remuneration package:
(a) On average senior executives were entitled to the following leave entitlements:
• annual leave (AL): entitled to 20 days (2010: 20 days) each full year worked (pro-rata for part-time SES)
• personal leave (PL): entitled to 18 days (2010: 18 days) or part-time equivalent
• long service leave (LSL): in accordance with Long Service Leave (Commonwealth Employees) Act 1976.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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(b) Senior executives were members of one of the following superannuation funds:
• Commonwealth Superannuation Scheme (CSS): this scheme is closed to new members, and employer contributions were averaged at 27.4 per cent (2010: 21 per cent). More information on CSS can be found at http://www.css.gov.au
• Public Sector Superannuation Scheme (PSS): this scheme is closed to new members, and current employer contributions were set at 14.4 per cent (2010: 14.7 per cent). More information on PSS can be found at http://www.pss.gov.au
• Public Sector Superannuation Accumulation Plan (PSSap): employer contributions were set at 15.4 percent (2010: 15.4 per cent), and the fund has been in operation since July 2005. More information on PSSap can be found at http://www.pssap.gov.au
• Other: there were some senior executives who had their own superannuation arrangements (e.g. self-managed superannuation funds). Th eir employer contributions were set at 15.4 per cent (2010: 15.4 per cent).
(c) Various salary sacrifi ce arrangements were available to senior executives including super, motor vehicle and expense payment fringe benefi ts.
Note 14C. Other highly paid staff During the reporting period, there were no employees (2010: nil), that did not have a role as senior executive (therefore were not disclosed as senior executives in Note 14A and Note 14B), whose salary plus performance bonus was $150,000 or more.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
250
Annu
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inan
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 5 . r e m u n e r a t i o n o F a u d i t o r s
2011$’000
2010$’000
Financial statement audit services are provided free of charge to the department.
The fair value of the services provided was:Audit services 185 145
Total of fair value of services provided 185 145
No other services were provided by the auditors of the financial statements.
251
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 6 . F i n a n c i a l i n s t r u m e n t s
2011$’000
2010$’000
Note 16A. Categories of fi nancial instrumentsFinancial assetsLoans and receivables:
Cash and cash equivalents 8,013 739Goods and services receivables 3,002 2,403Accrued revenue 6,189 2,993
Carrying amount of fi nancial assets 17,204 6,135
Financial liabilitiesAt amortised cost:
Suppliers 13,874 4,898Grants 5,703 637
Carrying amount of fi nancial liabilities 19,577 5,535
Note 16B. Net income and expense from fi nancial assetsLoans and receivables
Impairment (23) –Net gain/(loss) loans and receivables (23) – Net gain/(loss) from fi nancial assets (23) –
252
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Note 16C. Fair value of financial instrumentsThe fair value of financial instruments approximate their carrying amounts.
Note 16D. Credit riskThe department is exposed to minimal credit risk as loans and receivables are comprised of cash, goods and services receivable and accrued revenue. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of these outstanding receivables, 2011: $3,001,782 (2010: $2,403,234). The department has assessed the risk of the default on payment and has allocated the following amounts to an impairment allowance account, 2011: $100,895 (2010: $453).
The department manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship.
The department holds no collateral to mitigate against credit risk.
The following table illustrates the department’s gross exposure to credit risk.
2011$’000
2010$’000
Financial assetsCash and cash equivalents 8,013 739Goods and services receivables 3,002 2,403Accrued revenue 6,189 2,993
Total 17,204 6,135
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
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Credit quality of fi nancial instruments not past due or individually determined as impaired
Not past due nor
impaired
Not past due nor
impaired
Past due or
impaired
Past due or
impaired2011$’000
2010$’000
2011$’000
2010$’000
Cash and cash equivalents 8,013 739 – – Goods and services receivables 2,562 2,175 440 228Accrued revenue 6,189 2,993 – –
Total 16,764 5,907 440 228
Ageing of fi nancial assets that are past due but not impaired for 2011
0 to 30 days
$’000
31 to 60 days
$’000
61 to 90 days
$’00090+ days
$’000Total$’000
Cash and cash equivalents – – – – –Goods and services receivables 260 55 24 – 339Accrued revenue – – – – –
Total 260 55 24 – 339
Ageing of fi nancial assets that are past due but not impaired for 2010
0 to 30 days
$’000
31 to 60 days
$’000
61 to 90 days
$’00090+ days
$’000Total$’000
Cash and cash equivalents – – – – – Goods and services receivables 45 183 – – 228Accrued revenue – – – – –
Total 45 183 – 228
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
254
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
Note 16E. Liquidity riskThe department’s financial liabilities are suppliers and grants payable. The exposure to liquidity risk is based on the notion that the department will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the department (e.g. advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.
Maturities for non-derivative financial liabilities 2011
On demand
$’000
Within 1 year
$’000
1 to 2 years$’000
2 to 5 years$’000
> 5 years$’000
Total$’000
Suppliers – 13,874 – – – 13,874
Grants – 5,703 – – – 5,703
Total – 19,577 – – – 19,577
Maturities for non-derivative financial liabilities 2010
On demand
$’000
Within 1 year
$’000
1 to 2 years$’000
2 to 5 years$’000
> 5 years$’000
Total$’000
Suppliers – 4,898 – – – 4,898
Grants – 637 – – – 637
Total – 5,535 – – – 5,535
Note 16F. Market riskThe department holds basic financial instruments that do not expose the department to certain market risks. The department is not exposed to interest risk, currency risk or other price risk.
255
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 7 . i n c o m e a d m i n i s t e r e d o n b e H a l F o F g o V e r n m e n t
2011$’000
2010$’000
RevenueNon-taxation revenueNote 17A. InterestLoans 165 – Total interest 165 –
Note 17B. Other revenuePrior year recoveries 493 1Other 980 – Total other revenue 1,473 1
GainsNote 17C. Other gainsAssets received free of charge 1,000 – Total other gains 1,000 –
256
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 8 . e x P e n s e s a d m i n i s t e r e d o n b e H a l F o F g o V e r n m e n t
2011$’000
2010$’000
Note 18A. Employee benefitsWages and salaries 574 493Superannuation:
Defined contribution plans 58 25Defined benefit plans 33 66
Leave and other entitlements 222 243Total employee benefits 887 827
Note 18B. SuppliersGoods and servicesOutsourced providers, contractors and consultants 994 376Equipment, repairs and maintenance 551 496General expenses 1,694 1,041Travel 1,956 1,858Information communications and technology 639 306Office accommodation, facility management and security 197 174Total goods and services 6,031 4,251
Goods and services are made up of:Provision of goods – related entities 8 – Provision of goods – external parties 768 549Rendering of services – related entities 1,725 816Rendering of services – external parties 3,530 2,886Total goods and services 6,031 4,251Other supplier expensesOperating lease rentals – external parties:
Minimum lease payments 56 43Total other supplier expenses 56 43Total suppliers 6,087 4,294
Note 18C. GrantsPublic sector:
Australian Government entities (related entities) 17,834 3,362Local governments 896 – Other 17,426 –
Private sector:Non-profit organisations 66,804 –
Total grants 102,960 3,362
257
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
2011$’000
2010$’000
Grants relate to the following functions:Sport and recreation 47,796 – Arts and culture 51,784 – Legislative and executive aff airs 3,380 3,362Total grants 102,960 3,362
Note 18D. Depreciation and amortisationDepreciation:
Buildings 824 67Property, plant and equipment 98 151
Total depreciation and amortisation 922 218
Note 18E. RoyaltiesRoyalties paid 19,652 – Total royalties paid 19,652 –
Note 18F. Write-down and impairment of assetsAsset write-downs and impairments from:
Impairment of property, plant and equipment 2 2Total write-down and impairment of assets 2 2
Note 18G. Finance costsUnwinding of discount 570 592Total fi nance costs 570 592
Note 18H. CAC Act body payment itemAustralia Council 40,802Australian Film, Television and Radio School 9,897Australian National Maritime Museum 8,572National Film and Sound Archive 10,261National Gallery of Australia 12,332National Library of Australia 20,502National Museum of Australia 11,151Screen Australia 2,411Australian Sports Commission 153,501
Total payments to CAC Act bodies 269,429
258
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 1 9 . a s s e t s a d m i n i s t e r e d o n b e H a l F o F g o V e r n m e n t
2011$’000
2010$’000
FINANCIAL ASSETSNote 19A. Cash and cash equivalentsCash on hand or on deposits 110 12Special accounts 38 – Total cash and cash equivalents 148 12
Note 19B. ReceivablesGoods and services:
Goods and services receivable – related entities 213 7Goods and services receivable – external parties 72 11
Total goods and services 285 18
Advances and loans:Australian Sports Commission 4,000 –
Total advances and loans 4,000 –
Other receivables:Interest 165 – GST receivable from the Australian Taxation Office 5,854 29
Total other receivables 6,019 29Total receivables (net) 10,304 47
Receivables are expected to be recovered in:No more than 12 months 6,304 47More than 12 months 4,000 –
Total trade and other receivables (net) 10,304 47
Receivables were aged as follows:Not overdue 9,975 34Overdue by:
Less than 30 days 312 730 to 60 days 17 – 61 to 90 days – – More than 90 days – 6
Total receivables (gross) 10,304 47Credit terms were within 30 days (2010: 30 days).
259
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Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
2011$’000
2010$’000
Note 19C. Other investmentsEquity interest in:
National Australia Day Council Limited 820 773Australia Council 20,178 – Australian Film, Television and Radio School 10,918 – Australian National Maritime Museum 287,986 – National Film and Sound Archive 226,891 – National Gallery of Australia 4,256,800 – National Library of Australia 1,689,765 – National Museum of Australia 417,007 – Screen Australia 54,975 – Australian Business Arts Foundation Limited 1,058 – Bundanon Trust 31,956 – Australian Sports Commission 277,376 – Australian Sports Foundation Limited 9,978 –
Total other investments 7,285,708 773
Refer to Note 23 for details on the principal activities of each of the department’s administered investments.
Th e department’s investment in these entities is measured at fair value as at 30 June. Fair value has been taken to be the net assets of the entity as at balance date.
260
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2011$’000
2010$’000
NON-FINANCIAL ASSETSNote 19D. Land and buildingsLand at fair value – 34,500Buildings on freehold land
Fair value 37,726 6,765Accumulated depreciation (6,860) – Work in progress 3,013 –
Total land and buildings 33,879 41,265
Note 19E. Property, plant and equipmentOther property, plant and equipment:
Fair value 2,041 1,199Accumulated depreciation (112) (18)
Total other property, plant and equipment 1,929 1,181Total property, plant and equipment 1,929 1,181
No indicators of impairment were found for land and buildings or property, plant and equipment. All revaluations were conducted in accordance with the revaluation policy stated at Note 1. A revaluation was conducted as at 30 June 2010 by independent valuer Preston Rowe Paterson NSW Pty Ltd.
No revaluation adjustments were recorded for 2010–11. (2009–10: land decrement of $200,000; building increment of $696,332; property, plant and equipment decrement of $63,212 were applied against the asset revaluation reserve).
No property, plant or equipment is expected to be sold or disposed of within the next 12 months.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
261
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Not
e 19F
. Ana
lysis
of pr
oper
ty, i
nfra
struc
ture
, pla
nt an
d equ
ipm
ent
TAB
LE A
– R
econ
cilia
tion
of th
e ope
ning
and
clos
ing
bala
nces
of p
rope
rty,
plan
t and
equi
pmen
t (20
10–1
1)
Land
$’00
0Bu
ildin
gs$’
000
Oth
er p
rope
rty,
plan
t an
d eq
uipm
ent
$’00
0To
tal
$’00
0A
s at 1
July
201
0G
ross
boo
k va
lue
34,5
006,
765
1,19
942
,464
Acc
umul
ated
dep
recia
tion
and
impa
irmen
t –
–
(1
8)(1
8)N
et b
ook
valu
e 1 Ju
ly 2
010
34,5
006,
765
1,18
142
,446
Add
ition
s:By
pur
chas
e –
1,
560
–
1,56
0Pr
ovid
ed fr
ee o
f cha
rge
–
–
1,00
01,
000
From
acqu
isitio
n of
entit
ies o
r ope
ratio
ns (i
nclu
ding
restr
uctu
ring)
–
33,1
20 –
33
,120
Impa
irmen
ts re
cogn
ised
in th
e ope
ratin
g re
sult
–
–
(2)
(2)
Dep
recia
tion
expe
nse
–
(824
)(9
8)(9
22)
Disp
osals
:Fr
om d
ispos
al of
entit
ies o
r ope
ratio
ns (i
nclu
ding
restr
uctu
ring)
(34,
500)
(6,7
42)
(152
)(4
1,39
4)O
ther
disp
osals
–
–
–
–
Net
boo
k va
lue 3
0 Ju
ne 2
011
–
33,8
791,
929
35,8
08
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
262
Annu
Al R
epoR
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
Land
$’00
0Bu
ildin
gs$’
000
Oth
er p
rope
rty,
plan
t an
d eq
uipm
ent
$’00
0To
tal
$’00
0N
et b
ook
valu
e as o
f 30
June
201
1 re
pres
ente
d by
:G
ross
boo
k va
lue
–
40,7
392,
041
42,7
80A
ccum
ulat
ed d
epre
ciatio
n an
d im
pairm
ent
–
(6,8
60)
(112
)(6
,972
)C
losin
g ne
t boo
k va
lue a
t 30
June
201
1 –
33
,879
1,92
935
,808
263
annu
aL r
epor
t 20
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1Ch
apter
12
/ F
inan
cial s
tatem
ents
TABL
E B
– R
econ
cilia
tion
of th
e ope
ning
and
closin
g ba
lance
s of p
rope
rty, p
lant a
nd eq
uipm
ent (
2009
–10)
Land
$’00
0Bu
ildin
gs$’
000
Oth
er p
rope
rty,
plan
t and
equi
pmen
t$’
000
Tota
l$’
000
As a
t 1 Ju
ly 2
009
Gro
ss b
ook
valu
e34
,700
6,25
91,
545
42,5
04A
ccum
ulat
ed d
epre
ciatio
n/am
ortis
atio
n an
d im
pairm
ent
–
(124
)(1
92)
(316
)N
et b
ook
valu
e 1 Ju
ly 2
009
34,7
006,
135
1,35
342
,188
Add
ition
s:By
pur
chas
e –
–
13
13R
evalu
atio
ns an
d im
pairm
ents
reco
gnise
d th
roug
h ot
her c
ompr
ehen
sive i
ncom
e(2
00)
697
(64)
433
Dep
recia
tion
expe
nse
–
(67)
(151
)(2
18)
Mov
emen
t in
mak
e goo
d –
–
32
32D
ispos
als –
–
(2
)(2
)N
et b
ook
valu
e 30
June
201
034
,500
6,76
51,
181
42,4
46N
et b
ook
valu
e as o
f 30
June
201
0 re
pres
ente
d by
:G
ross
boo
k va
lue
34,5
006,
765
1,19
942
,464
Acc
umul
ated
dep
recia
tion
and
impa
irmen
t –
–
(1
8)(1
8)C
losin
g ne
t boo
k va
lue a
t 30
June
201
034
,500
6,76
51,
181
42,4
46
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
264
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
2011$’000
2010$’000
Note 19G. Other non-financial assetsPrepayments 221 38
Total other non-financial assets 221 38
Total other non-financial assets are expected to be recovered in:
No more than 12 months 221 38More than 12 months – –
Total other non-financial assets 221 38
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
265
annu
aL r
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t 20
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apter
12
/ F
inan
cial s
tatem
ents
n o t e 2 0 . l i a b i l i t i e s a d m i n i s t e r e d o n b e H a l F o F g o V e r n m e n t
2011$’000
2010$’000
Payables
Note 20A. SuppliersTrade creditors 3,926 163Total suppliers 3,926 163
Supplier payables are expected to be settled within 12 months:
Related entities 273 11External parties 3,653 152
Total suppliers 3,926 163
Settlement is usually made within 30 days.
Note 20B. GrantsPrivate sector:
Non-profi t organisations 3,361 – Total grants 3,361 –
Total grants are expected to be settled in:No more than 12 months 3,361 – More than 12 months – –
Total grants 3,361 –
Settlement is usually made according to the terms and conditions of each grant. Th is is usually within 30 days of performance or eligibility.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
266
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
2011$’000
2010$’000
Note 20C. Other payablesSalaries and wages 23 23Superannuation 4 3Other 22 27GST payable to Australian Taxation Office 23 7Total other payables 72 60
Total other payables are expected to be settled in:No more than 12 months 72 60More than 12 months – –
Total other payables 72 60
Provisions
Note 20D. Employee provisionsLeave 344 260Total employee provisions 344 260
Employee provisions are expected to be settled in:No more than 12 months 307 236More than 12 months 37 24
Total employee provisions 344 260
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
267
annu
aL r
epor
t 20
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apter
12
/ F
inan
cial s
tatem
ents
2011$’000
2010$’000
Note 20E. Non-cash benefi ts – former Governors-General benefi tsNon-cash benefi ts – former Governors-General 10,668 11,077Total non-cash benefi ts – former Governors-General benefi ts 10,668 11,077
Th e amounts recognised in the balance sheet are as follows:Present value of unfunded obligations 10,668 11,077Net liability in balance sheet 10,668 11,077
Amounts in balance sheet:Liabilities 10,668 11,077
Net liability in balance sheet 10,668 11,077
Th e amounts recognised in the income statement are as follows:Current service cost – – Finance costs 563 587Expense 563 587
Net actuarial losses (gains) recognised in equity 210 669
Changes in the value of the defi ned benefi t obligation are as follows:Net liability at 1 July 11,077 11,107Service cost – – Finance costs 563 587Actuarial losses 210 669Benefi ts paid (1,182) (1,286)Net liability at 30 June 10,668 11,077
Principal actuarial assumptions at the reporting date (expressed as weighted averages):2011 2010
Discount rate at 30 June 5.21% 5.1%Future salary increases 4.00% 4.0%Infl ation rate 2.50% 2.5%Rate of expenditure slow down with age 3.00% 3.0%
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
268
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
2011$’000
2010$’000
Note 20F. Other provisionsMake good provision 104 110Lease provision 22 29Total other provisions 126 139
Other provisions are expected to be settled in:No more than 12 months – – More than 12 months 126 139
Total other provisions 126 139
Lease provision
$’000
Make good provision
$’000Total$’000
Reconciliation of other provisions:Carrying amount 1 July 2010 29 110 139
Additional provisions made 1 – 1 Amounts used – – – Amounts reversed (8) (13) (21)Unwinding of discount or change in discount rate – 7 7
Closing balance 2011 22 104 126
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
269
annu
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apter
12
/ F
inan
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 2 1 . a d m i n i s t e r e d r e c o n c i l i a t i o n ta b l e
2011$’000
2010$’000
Opening administered assets less administered liabilities as at 1 July 31,617 15,217
Plus: administered income 2,638 1Less: administered expenses (non CAC Act) (131,080) (9,295)
Payments to CAC Act bodies (269,429) – Administered transfers to/from Australian Government:
Appropriation transfers from OPA:Annual appropriations for administered expenses (non CAC Act) 150,735 10,919Annual appropriations for payment to CAC Act bodies 276,468 –
Transfers to OPA (6,295) (1,115)Movement in make good 4 28Restructuring 7,248,815 16,017Administered investments 10,429 81Asset revaluations – 433Revaluation of liabilities relating to former Governors-General entitlements (210) (669)Closing administered assets less administered liabilities as at 30 June 7,313,692 31,617
270
annu
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epor
t 20
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apter
12
/ F
inan
cial s
tatem
ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 2 2 . a d m i n i s t e r e d c o n t i n g e n t a s s e t s a n d l i a b i l i t i e s
Claims for damages or costs Total
2011$’000
2010$’000
2011$’000
2010$’000
Contingent liabilitiesBalance from previous period – – – –New 70 – 70 –
Total contingent liabilities 70 – 70 –
Quantifiable contingenciesThe administered schedule of contingencies reports contingent liabilities in respect of claims for damages/costs of $70,000 (2010: nil). The amount represents an estimate of the liability based on precedent in such cases.
Unquantifiable contingenciesThe department is aware of the following administered unquantifiable contingent liabilities as at the signing date:
2015 Asian Football Confederation (AFC) Asian Cup — government guaranteesThe Australian Government has committed to guarantees including requirements on immigration, work permits, customs, taxation, security and the protection of commercial rights, and to provide broad indemnities for the conduct of the 2015 Asian Cup. The guarantees commenced in 2011 and will conclude in 2015. The total cost associated with the guarantees is unquantifiable at this stage.
Australian Government support for the Queensland Government bid to host the 2018 Commonwealth Games on the Gold Coast — government guaranteesThe Australian Government has committed to support the Queensland Government’s bid for the 2018 Commonwealth Games. For the bid to be compliant, the Australian Government must provide guarantees which will come into effect if the bid is won. These guarantees include requirements on immigration, customs, work permits, taxation, security, protection of commercial rights, and communications and information technology. Details of the costs associated with the guarantees are not available at this time. The guarantees will not come into effect if the bid is unsuccessful.
271
annu
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epor
t 20
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apter
12
/ F
inan
cial s
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
Signifi cant remote contingenciesTh e department is aware of the following administered remote contingent liabilities as at the signing date:
National Aboriginal and Islander Skills Development Association (NAISDA) — construction works Th e Australian Government has provided an indemnity from 1 June 2010 to 31 December 2012 in favour of the Central Coast Regional Development Corporation (formerly the Festival Development Corporation), a New South Wales Government statutory authority and landlord of the Mt Penang Parklands in Gosford. Th e indemnity relates to construction works being carried out by the Australian Government on behalf of NAISDA Dance College at Mt Penang Parklands.
Th ere were no administered contingent liabilities or assets reported in 2009–10.
272
annu
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12
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inan
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ents
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
n o t e 2 3 . a d m i n i s t e r e d i n V e s t m e n t s
The principal activities of each of the department’s administered investments are as follows:
National Australia Day Council LimitedPromotes national pride, active citizenship and the observance and celebration of Australia Day; administration of the Australian of the Year awards, which includes awards for the Young Australian of the Year, the Senior Australian of the Year and Australia’s Local Hero; distribution of grants to state/territory Australia Day Councils and provision of recommendations and advice to the Australian Government on all matters relating to year-round national pride activities.
Australia CouncilIs responsible for the creation, presentation and appreciation of distinctive cultural works by providing assistance to Australian artists and making their works accessible to the public. It aims to enrich our national’s culture through support and promotion of the arts. A body corporate established under the Australia Council Act 1975.
Australian Film, Television and Radio SchoolAims to provide a more sustainable screen and broadcasting industry through advanced industry-focused education and training for talented students, professionals and organisations. A body corporate established under the Australian Film, Television and Radio School Act 1973.
Australian National Maritime Museum Promotes knowledge, appreciation and enjoyment of Australia’s maritime heritage by managing the national maritime collection and staging programs, exhibitions and events. A body corporate established under the Australian National Maritime Museum Act 1990.
National Film and Sound Archive Is responsible for increasing understanding and appreciation of Australia’s audiovisual history by developing, preserving, maintaining and promoting the national audiovisual collection and providing access to audiovisual material of historic and cultural significance. A body corporate established under the National Film and Sound Archive Act 2008.
National Gallery of AustraliaProvides access to works of art and information about them locally, nationally and internationally. A body corporate established under the National Gallery Act 1975.
273
annu
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12
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inan
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ents
National Library of Australia Provides access to a national collection of library material. It also ensures that documentary resources of national signifi cance relating to Australia and the Australian people, as well as signifi cant non-Australian library materials, are collected, preserved and made accessible through the library itself and through arrangements with other libraries. A body corporate established under the National Library Act 1960.
National Museum of Australia Manages the national museum’s collections and provides access through public programs and exhibitions. Other activities include researching Australian history, developing and maintaining a national collection of historical material, creating exhibitions and programs which explore our heritage and history, and making it more accessible to Australians. A body corporate established under the National Museum Act 1980.
Screen AustraliaSupports and promotes the development of a highly creative, innovative and commercially sustainable Australian screen production industry. A body corporate established under the Screen Australia Act 2008.
Australia Business Arts Foundation Limited A Commonwealth company established to promote private sector support for the arts. Its primary objective is to connect the arts, business and donors.
Bundanon Trust A trust established to develop and manage the Bundanon properties in the Shoalhaven NSW as an arts and education centre. Incorporated in Australia.
Australian Sports Commission Develops and invests in sport at all levels in Australia; provides leadership, coordination and support for the sport sector, and promotes an eff ective national sporting system. A body corporate established under the Australian Sports Commission Act 1989.
Australian Sports Foundation LimitedAssists sporting, community, educational and other government organisations to raise funds for the development of sport infrastructure.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
274
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n o t e 2 4 . a d m i n i s t e r e d F i n a n c i a l i n s t r u m e n t s
2011$’000
2010$’000
Note 24A. Categories of financial instrumentsFinancial assetsLoans and receivables:
Cash and cash equivalents 148 12Receivables 450 18Advances and loans 4,000 –
Total 4,598 30
Available for sale:Equity interest in:
National Australia Day Council Limited 820 773Australia Council 20,178 – Australian Film, Television and Radio School 10,918 – Australian National Maritime Museum 287,986 – National Film and Sound Archive 226,891 – National Gallery of Australia 4,256,800 – National Library of Australia 1,689,765 – National Museum of Australia 417,007 – Screen Australia 54,975 – Australian Business Arts Foundation Limited 1,058 – Bundanon Trust 31,956 – Australian Sports Commission 277,376 – Australian Sports Foundation Limited 9,978 –
Total 7,285,708 773Carrying amount of financial assets 7,290,306 803Financial liabilitiesAt amortised cost
Supplier payables 3,926 163Grant payables 3,361 –
Carrying amount of financial liabilities 7,287 163
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
275
annu
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t 20
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apter
12
/ F
inan
cial s
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ents
2011$’000
2010$’000
Note 24B. Net income and expense from fi nancial assetsFinancial assetsLoans and receivables
Interest revenue 165 – Net gain from loans and receivables 165 – Net gain from fi nancial assets 165 –
Note 24C. Fair value of fi nancial instrumentsTh e fair value of fi nancial instruments approximate their carrying amounts. Th e equity interests in administered investments are measured at fair value as at 30 June 2011. Fair value is based on non-market inputs as the valuation is taken to be the net assets of each entity as at balance date.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
276
annu
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ents
Note 24D. Credit riskThe administered activities of the department are not exposed to a high level of credit risk as the majority of financial assets are cash and cash equivalents, and trade receivables. The department manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. The maximum amount of credit risk is the risk that arises from potential default of a debtor. This amount is equal to the amount of these outstanding receivables, 2011: $449,710 (2010:$18,170)
The department has assessed the risk of the default on payment and has allocated amounts to an impairment allowance account, 2011: nil (2010: nil).
The department holds no collateral to mitigate against administered credit risk.
The following table illustrates the administered activities of the department’s gross exposure to credit risk:
2011$’000
2010$’000
Financial assetsLoans and receivables:
Cash and cash equivalents 148 12Receivables 450 18Advances and loans 4,000 –
Available for sale:Equity interest in:
National Australia Day Council Limited 820 773Australia Council 20,178 – Australian Film, Television and Radio School 10,918 – Australian National Maritime Museum 287,986 – National Film and Sound Archive 226,891 – National Gallery of Australia 4,256,800 – National Library of Australia 1,689,765 – National Museum of Australia 417,007 – Screen Australia 54,975 – Australian Business Arts Foundation Limited 1,058 – Bundanon Trust 31,956 – Australian Sports Commission 277,376 – Australian Sports Foundation Limited 9,978 –
Total 7,290,306 803
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
277
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12
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Credit quality of fi nancial instruments not past due or individually determined as impaired.Not past due nor impaired
2011$’000
Not past due nor impaired
2010$’000
Past due or impaired
2011$’000
Past due or impaired
2010$’000
Loans and receivables:Cash and cash equivalents 148 12 – – Receivables 121 5 329 13Advances and loans 4,000 – – –
Available for sale:Equity interest in:
National Australia Day Council Limited 820 773 – – Australia Council 20,178 – – – Australian Film, Television and Radio School 10,918 – – – Australian National Maritime Museum 287,986 – – – National Film and Sound Archive 226,891National Gallery of Australia 4,256,800 – – – National Library of Australia 1,689,765 – – – National Museum of Australia 417,007 – – – Screen Australia 54,975 – – – Australian Business Arts Foundation Limited 1,058 – – – Bundanon Trust 31,956 – – – Australian Sports Commission 277,376 – – – Australian Sports Foundation Limited 9,978 – – –
Total 7,289,977 790 329 13
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
278
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ents
Ageing of financial assets that are past due but not impaired for 20110 to
30 days$’000
31 to 60 days
$’000
61 to 90 days
$’00090+ days
$’000Total$’000
Loans and receivables:Cash and cash equivalents – – – – – Receivables 312 17 – – 329Accrued revenue – – – – –
Total 312 17 – – 329
Ageing of financial assets that are past due but not impaired for 20100 to
30 days$’000
31 to 60 days
$’000
61 to 90 days
$’00090+ days
$’000Total$’000
Loans and receivables:Cash and cash equivalents – – – – – Receivables 7 – – 6 13Accrued revenue – – – – –
Total 7 – – 6 13
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
279
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12
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ents
Note 24E. Liquidity riskTh e department’s administered fi nancial liabilities are supplier and grant payables. Th e exposure to liquidity risk is based on the notion that the department will encounter diffi culty in meeting its obligations associated with administered fi nancial liabilities. Th is is highly unlikely due to appropriation funding and mechanisms available to the department (e.g. advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its fi nancial obligations.
Maturities for non-derivative fi nancial liabilities 2011On
demand$’000
Within 1 year$’000
1 to 2 years
$’000
2 to 5 years
$’000> 5 years
$’000Total$’000
Other liabilities – Supplier payables – 3,926 – – – 3,926Grant payables – 3,361 – – – 3,361
Total – 7,287 – – – 7,287
Maturities for non-derivative fi nancial liabilities 2010On
demand$’000
Within 1 year$’000
1 to 2 years
$’000
2 to 5 years
$’000> 5 years
$’000Total$’000
Other liabilities Supplier payables – 163 – – – 163
Total – 163 – – – 163
Note 24F. Market riskTh e department holds basic fi nancial instruments that do not expose the department to certain market risks. Th e department is not exposed to interest risk, currency risk or other price risk.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
280
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12
/ F
inan
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ents
no
te 2
5. a
PP
ro
Pr
iati
on
s
Not
e 25A
. Ann
ual a
ppro
pria
tions
2011
App
ropr
iatio
nsA
ppro
pria
tion
appl
ied
in 2
011
(cur
rent
and
prio
r yea
rs)
$'00
0Va
rianc
e$'
000
Appr
opri
atio
n Ac
tFM
A Ac
tTo
tal
appr
opria
tion
$’00
0
Ann
ual
appr
opria
tion
$’00
0
App
ropr
iatio
ns
redu
ced(
a)$’
000
AFM
(b)
$’00
0Se
ctio
n 30
$’00
0Se
ctio
n 31
$’00
0Se
ctio
n 32
$’00
0D
EPA
RT
ME
NTA
LO
rdin
ary a
nnua
l ser
vice
s13
6,35
9–
–60
619
,030
20,4
1117
6,40
617
2,24
94,
157
Oth
er se
rvic
esE
quity
500
––
––
218
718
1,61
6(8
98)
Loan
s–
––
––
––
––
Tota
l dep
artm
enta
l13
6,85
9–
–60
619
,030
20,6
2917
7,12
417
3,86
53,
259
AD
MIN
IST
ER
ED
Ord
inar
y ann
ual s
ervi
ces
Adm
inist
ered
item
s47
,253
(8,4
50)
41,3
3160
3–
68,0
0114
8,73
814
1,23
47,
504
Paym
ents
to C
AC
Act
bod
ies
––
––
–27
6,66
927
6,66
927
6,46
820
1
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
281
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
2011
App
ropr
iatio
nsA
ppro
pria
tion
appl
ied
in 2
011
(cur
rent
and
prio
r yea
rs)
$'00
0Va
rianc
e$'
000
Appr
opri
atio
n Ac
tFM
A Ac
tTo
tal
appr
opria
tion
$’00
0
Ann
ual
appr
opria
tion
$’00
0
App
ropr
iatio
ns
redu
ced(
a)$’
000
AFM
(b)
$’00
0Se
ctio
n 30
$’00
0Se
ctio
n 31
$’00
0Se
ctio
n 32
$’00
0O
ther
serv
ices
Spec
ifi c p
aym
ents
to
state
s, A
CT,
NT
and
loca
l go
vern
men
t–
––
––
250
250
250
–
Tota
l adm
inist
ered
47,2
53(8
,450
)41
,331
603
–34
4,92
042
5,65
741
7,95
27,
705
Not
es:
(a)
App
ropr
iatio
ns re
duce
d un
der A
ppro
pria
tion
Acts
(No.
1,3,
5) 2
010–
11: s
ectio
ns 1
0, 11
, 12
and
15 an
d un
der A
ppro
pria
tion
Acts
(No.
2,4,
6) 2
010–
11: s
ectio
ns 1
2,13
, 14
and
17.
Dep
artm
enta
l app
ropr
iatio
ns d
o no
t lap
se at
fi na
ncial
year
-end
. How
ever,
the r
espo
nsib
le m
inist
er m
ay d
ecid
e tha
t par
t or a
ll of
a de
partm
enta
l app
ropr
iatio
n is
not r
equi
red
and
requ
est
the F
inan
ce M
inist
er to
redu
ce th
at ap
prop
riatio
n. Th
e re
duct
ion
in th
e app
ropr
iatio
n is
eff e
cted
by t
he F
inan
ce M
inist
er’s
dete
rmin
atio
n an
d is
disa
llowa
ble b
y Par
liam
ent.
(b)
Adv
ance
to th
e Fin
ance
Min
ister
(AFM
) – A
ppro
pria
tion
Acts
(No.
1,3,
5) 2
010–
11: s
ectio
n 13
and
Appr
opria
tion
Acts
(No.
2,4,
6) 2
010–
11: s
ectio
n 15
.
(c)
In 2
010–
11, t
here
wer
e no
adju
stmen
ts th
at m
et th
e rec
ogni
tion
crite
ria o
f a fo
rmal
addi
tion/
addi
tion
redu
ctio
n in
reve
nue,
in ac
cord
ance
with
FM
O D
iv 10
1, bu
t at l
aw th
e ap
prop
riatio
ns h
ave n
ot b
een
amen
ded
befo
re th
e end
of t
he re
porti
ng p
erio
d.
(d) Th
e fo
llowi
ng ag
encie
s spe
nd m
oney
from
the C
RF o
n be
half
of th
e dep
artm
ent:
Dep
artm
ent o
f Sus
tain
abili
ty, E
nviro
nmen
t, W
ater
, Pop
ulat
ion
and
Com
mun
ities
and
the D
epar
tmen
t of
Hea
lth an
d A
gein
g.
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
282
Annu
Al R
epoR
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
2010
App
ropr
iatio
nsA
ppro
pria
tion
appl
ied
in 2
010
(cur
rent
and
prio
r yea
rs)
$’00
0Va
rianc
e$’
000
Appr
opri
atio
n Ac
tFM
A Ac
tTo
tal
appr
opria
tion
$’00
0
Ann
ual
appr
opria
tion
$’00
0
App
ropr
iatio
ns
redu
ced(
a)$’
000
AFM
(b)
$’00
0
Sect
ion
14 (A
ct
No.
1)
Sect
ion 30
$’00
0
Sect
ion 31
$’00
0
Sect
ion 32
$’00
0D
EPA
RT
ME
NTA
LO
rdin
ary a
nnua
l ser
vice
s11
2,27
2(8
07)
–
–
174
21,5
14 –
13
3,15
313
1,83
31,
320
Oth
er se
rvic
esE
quity
3,66
8–
–
–
–
–
3,66
82,
815
853
Loan
s –
–
–
–
–
–
–
–
–To
tal d
epar
tmen
tal
115,
940
(807
) –
–
17
421
,514
–
136,
821
134,
648
2,17
3A
DM
INIS
TE
RE
DO
rdin
ary a
nnua
l ser
vice
sA
dmin
ister
ed it
ems
10,2
20(2
26)
–
–
119
–
–
10,1
139,
851
262
Tota
l adm
inist
ered
10,2
20(2
26)
–
–
119
– –
10
,113
9,85
126
2
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
283
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
Not
es:
(a)
App
ropr
iatio
ns re
duce
d un
der A
ppro
pria
tion
Acts
(No.
1,3)
200
9–10
: sec
tions
10,
11 an
d 12
and
unde
r App
ropr
iatio
n Ac
ts (N
o. 2,
4) 2
009–
10: s
ectio
ns 1
3 an
d 14
. D
epar
tmen
tal a
ppro
pria
tions
do
not l
apse
at fi
nanc
ial y
ear-
end.
How
ever
, the
resp
onsib
le m
inist
er m
ay d
ecid
e tha
t par
t or a
ll of
a de
partm
enta
l app
ropr
iatio
n is
not
requ
ired
and
requ
est t
he F
inan
ce M
inist
er to
redu
ce th
at ap
prop
riatio
n. Th
e re
duct
ion
in th
e app
ropr
iatio
n is
eff e
cted
by
the F
inan
ce M
inist
er’s
dete
rmin
atio
n an
d is
disa
llowa
ble b
y pa
rliam
ent.
On
29 Ju
ne 2
010,
the F
inan
ce M
inist
er d
eter
min
ed a
redu
ctio
n in
dep
artm
enta
l app
ropr
iatio
ns fo
llowi
ng a
requ
est b
y th
e Par
liam
enta
ry
Secr
etar
y to
the P
rime M
inist
er. Th
e am
ount
of t
he re
duct
ion
dete
rmin
ed u
nder
App
ropr
iatio
n Ac
t (N
o1) 2
009–
10 w
as: $
477,
000.
On
18 F
ebru
ary
2011
, the
Fin
ance
M
inist
er d
eter
min
ed a
redu
ctio
n in
dep
artm
enta
l app
ropr
iatio
ns in
relat
ion
to th
e no-
win
no-lo
ss fu
ndin
g fo
r the
Pac
ifi c I
sland
For
um 2
009.
Th e a
mou
nt o
f the
redu
ctio
n de
term
ined
und
er A
ppro
pria
tion
Act (
No1
) 200
9–10
was
: $32
9,98
9.
(b)
Adv
ance
to th
e Fin
ance
Min
ister
(AFM
) – A
ppro
pria
tion
Acts
(No.
1,3)
200
9–10
: sec
tion
13 an
d Ap
prop
riatio
n Ac
ts (N
o. 2,
4) 2
009–
10: s
ectio
n 15
.
(c)
In 2
009–
10, t
here
wer
e no
adju
stmen
ts th
at m
et th
e rec
ogni
tion
crite
ria o
f a fo
rmal
addi
tion/
redu
ctio
n in
reve
nue,
in ac
cord
ance
with
FM
O D
iv 10
1, bu
t at l
aw th
e app
ropr
iatio
ns h
ave
not b
een
amen
ded
befo
re th
e end
of t
he re
porti
ng p
erio
d.
(d)
Dur
ing
2009
–10
no o
ther
agen
cies s
pent
mon
ey fr
om th
e CRF
on
beha
lf of
the d
epar
tmen
t.
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
284
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
2011$’000
2010$’000
Note 25B. Unspent departmental annual appropriations (‘recoverable GST exclusive’)Appropriation Act (No. 2) 2006–07 – 1,092Appropriation Act (No. 4) 2007–08 1,612 1,612Appropriation Act (No. 1) 2008–09 945 –Appropriation Act (No. 4) 2008–09 162 686Appropriation Act (No. 1) 2009–10 9,754 20,439Appropriation Act (No. 2) 2009–10 933 3,093Appropriation Act (No. 1) 2010–11 26,870 –Appropriation Act (No. 1) 2010–11 – cash held by the department 636 –Appropriation Act (No. 1) Capital Budget (DCB) 2010–11 83 –Appropriation Act (No. 2) 2010–11 718 –Total 41,713 26,922
Note:
Funding that relates to prior year appropriations was transferred to the department during the year as part of restructuring activities.
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
285
Annu
Al R
epoR
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
Not
e 25C
. Red
uctio
n in
adm
inist
ered
item
s (‘re
cove
rabl
e GST
exclu
sive)
2011
Am
ount
requ
ired
– by
A
ppro
pria
tion
Act
Am
ount
requ
ired
– as
repr
esen
ted
byTo
tal a
mou
nt
requ
ired
Tota
l am
ount
ap
prop
riate
dTo
tal r
educ
tion
Ord
inar
y ann
ual s
ervi
ces
Act
(No.
1)A
ct (N
o.3)
Spen
tR
eten
tion
Out
com
e 110
,089
,422
.36
–
9,97
0,72
1.78
118,
700.
5810
,089
,422
.36
10,2
41,2
54.8
415
1,83
2.48
Out
com
e 260
,643
,477
.99
29,1
53,2
26.4
685
,383
,506
.69
4,41
3,19
7.76
89,7
96,7
04.4
596
,668
,169
.29
6,87
1,46
4.84
Out
com
e 347
,249
,430
.05
1,00
0,00
0.00
44,4
82,8
44.1
43,
766,
595.
9148
,249
,430
.05
49,6
76,1
60.1
31,
426,
730.
08O
ther
serv
ices
Act
(No.
1)A
ct (N
o.3)
Spen
tR
eten
tion
Spec
ifi c p
aym
ents
to st
ates
, AC
T, N
T
and
loca
l gov
ernm
ent
Out
com
e 325
0,00
0.00
–
250,
000.
00 –
25
0,00
0.00
250,
000.
00 –
Not
es:
(a)
Num
bers
in th
is se
ctio
n of
the t
able
are d
isclo
sed
to th
e cen
t.
(b)
Adm
inist
ered
item
s for
201
0–11
wer
e red
uced
to th
ese a
mou
nts w
hen
the fi
nan
cial s
tate
men
ts ar
e tab
led in
Par
liam
ent a
s par
t of t
he d
epar
tmen
t’s 2
010–
11 an
nual
repo
rt.
Th is
redu
ctio
n is
eff e
ctiv
e in
2011
–12,
but t
he am
ount
s are
refl e
cted
in T
able
A in
the 2
010–
11 fi
nanc
ial s
tate
men
ts in
colu
mns
‘app
ropr
iatio
n re
duct
ions
’ as t
hey
are a
djus
tmen
ts to
the 2
010–
11 ap
prop
riatio
ns.
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
NO
TES
TO
AN
D F
OR
MIN
g p
ART
OF
THE
FIN
ANC
IAL
STA
TEM
ENTS
for t
he pe
riod e
nded
30
June
201
1
286
Annu
Al R
epoR
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
2010
Am
ount
requ
ired
– by
App
ropr
iatio
n A
ctA
mou
nt re
quire
d –
as
repr
esen
ted
byTo
tal a
mou
nt
requ
ired
Tota
l am
ount
ap
prop
riate
dTo
tal r
educ
tion
Ord
inar
y ann
ual s
ervi
ces
Act
(No.
1)A
ct (N
o.3)
Spen
tR
eten
tion
Out
com
e 19,
993,
550.
75 –
9,
061,
545.
8893
2,00
4.87
9,99
3,55
0.75
10,2
20,0
00.0
022
6,44
9.25
Not
es:
(a)
Num
bers
in th
is se
ctio
n of
the t
able
are d
isclo
sed
to th
e cen
t.
(b)
Adm
inist
ered
item
s for
200
9–10
wer
e red
uced
to th
ese a
mou
nts w
hen
the fi
nanc
ial st
atem
ents
were
tabl
ed in
par
liam
ent a
s par
t of t
he d
epar
tmen
t’s 2
009–
10 an
nual
repo
rt. Th
is re
duct
ion
is eff
ectiv
e in
2010
–11,
but t
he am
ount
s are
refle
cted
in T
able
A in
the 2
009–
10 fi
nanc
ial st
atem
ents
in co
lum
ns ap
prop
riatio
n re
duct
ions
’ as t
hey
are a
djus
tmen
ts to
the
2009
–10
appr
opria
tions
.
Dep
artm
ent o
f the
Prim
e Min
ister
and C
abin
et
no
tes
to
an
d F
or
min
g P
art
oF
tHe
Fin
anc
ial
sta
tem
ents
for t
he pe
riod e
nded
30
June
201
1
287
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
n o t e 2 6 . s P e c i a l a c c o u n t s
Services for Other Entities and Trust Moneys Special Account
2011$’000
2010$’000
Appropriation: Financial Management and Accountability Act 1997; section 20Establishing Instrument: Determination 2008/13Purpose: Th is account was created to disburse amounts held on trust or otherwise for the benefi t of a person other than the Commonwealth.Balance brought from previous period 5 1
Other receipts 20 6Total increase 20 6Available for payments 25 6
Payments made – other 25 (2)Total decrease 25 (2)Total balance carried to the next period – 5Represented by:
Cash held by the department – 5
Art Rental Special Account (departmental) 2011$’000
2010$’000
Appropriation: Financial Management and Accountability Act 1997; section 20Establishing Instrument: Determination 2006/18Purpose: Amounts may be debited from the special account for:
(a) acquire, deaccession, lease, promote, develop, exhibit, lend, conserve and undertake any other activities in relation to managing an art rental collection for the Commonwealth
(b) activities that are incidental to the purposes mentioned in paragraph (a)(c) the repayment of amounts where an Act or other law requires or permits the repayment
of an amount received.Balance brought forward from previous period – –
Balance – restructuring 1,880 –Receipts from sales of goods and rendering of services 1,289 –
Total increase 3,169 –
Available for payments 3,169 –Payments made to suppliers 771 –Payments to employees 510 –
Total decrease 1,281 –Total balance carried to the next period 1,888 –
Represented by:Cash held by the department 1,888 –
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
288
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
Cultural Ministers’ Council Special Account (departmental)
2011$’000
2010$’000
Appropriation: Financial Management and Accountability Act 1997; section 20Establishing Instrument: Determination 2005/43Purpose: Amounts may be debited from the special account for:
(a) conducting activities of the working parties initiated by the Cultural Ministers’ Council(b) activities that are incidental to the purpose mentioned in paragraph (a)(c) the repayment of amounts where an Act or other law requires or permits the repayment of
an amount received.Balance brought forward from previous period – –
Balance – restructuring 160 –Other receipts 486 –
Total increase 646 –Available for payments 646 –
Payments to suppliers 60 –Payments made – grants 35 –
Total decrease 95 –Total balance carried to the next period 551 –Represented by:
Cash transferred to the OPA 551 –National Collections Special Account (departmental)
2011$’000
2010$’000
Appropriation: Financial Management and Accountability Act 1997; section 20Establishing Instrument: Determination 2005/44Purpose: Amounts may be debited from the special account for:
(a) conducting projects, programmes and strategies approved by the responsible agency, associated with future directions, needs and priorities of the collection sector
(b) activities that are incidental to the purpose mentioned in paragraph (a)(c) the repayment of amounts where an Act or other law requires or permits the
repayment of an amount received.Balance brought forward from previous period – –
Balance – restructuring 276 –Total increase 276 –Available for payments 276 –
Payments made to suppliers 49 –Total decrease 49 –Total balance carried to the next period 227 –Represented by:
Cash transferred to the OPA 227 –
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
289
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
National Portrait Gallery Special Account (departmental)
2011$’000
2010$’000
Appropriation: Financial Management and Accountability Act 1997; section 20Establishing Instrument: Determination 2005/42Purpose: Amounts may be debited for:
(a) acquisitions of works of art for the National Portrait Gallery(b) organising National Portrait Gallery activities and mounting exhibitions in accordance
with the gallery's programme(c) assisting with National Portrait Gallery Circle of Friends events(d) activities that are incidental to the purpose mentioned in paragraphs (a), (b) or (c)(e) the repayment of amounts where an Act or other law requires or permits the repayment of
an amount received.Balance brought forward from previous period – –
Balance – restructuring 5,626 –Other receipts 373 –
Total increase 5,999 –Available for payments 5,999 –
Payments made to suppliers 452 –Total decrease 452 –Total balance carried to the next period 5,547 –Represented by:
Cash held by the department 5,489 –Cash transferred to the OPA 58
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
290
Annu
Al R
epoR
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
Return of Indigenous Cultural Property Special Account (departmental)
2011$’000
2010$’000
Appropriation: Financial Management and Accountability Act 1997; section 20Establishing Instrument: Determination 2005/45Purpose: Amounts may be debited from the special account for:
(a) developing and conduction projects, programmes and strategies associated with the repatriation of Indigenous cultural material, on behalf of the Cultural Ministers' Council
(b) activities that are incidental to the purpose mentioned in paragraph (a)(c) the repayment of amounts where an Act or other law requires or permits the repayment
of an amount received.Balance brought forward from previous period – –
Balance – restructuring 1,570 –Appropriation for reporting period 826 –
Total increase 2,396 –Available for payments 2,396 –
Payments made to suppliers 33 –Total decrease 33 –Total balance carried to the next period 2,363 –Represented by:Cash transferred to the OPA 2,363 –
National Cultural Heritage Special Account (administered)
2011$’000
2010$’000
Appropriation: Financial Management and Accountability Act 1997; section 21Establishing Instrument: Protection of Moveable Cultural Heritage Act 1986; section 25Purpose: Amounts standing to the credit of the National Cultural Heritage Account may be expended for the purpose of facilitating the acquisition of the Australian protected objects for display or self keeping.
Balance brought forward from previous period – –Balance – restructuring 36 –Appropriation for reporting period 464 –
Total increase 500 –Available for payments 500 –
Payments to suppliers 245 –Total decrease 245 –Total balance carried to the next period 255 –Represented by:
Cash transferred to the OPA 255 –
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
291
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
Sports and Recreation Special Account (administered)
2011$’000
2010$’000
Appropriation: Financial Management and Accountability Act 1997; section 20Establishing Instrument: Financial Management and Accountability Act 1997; section 20Purpose: To undertake sport and recreation related projects of common interest to the Sport and Recreation Ministers' Council, its successor or subordinate bodies, and that benefi t all or a majority of members.Balance brought forward from previous period – –
Balance – restructuring 533 –Other receipts 646 –
Total increase 1,179 –Available for payments 1,179 –
Payments made to suppliers 259 –Total decrease 259 –Total balance carried to the next period 920 –Represented by:
Cash transferred to the OPA 920 –
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
292
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
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n o t e 2 7 . c o m P e n s a t i o n a n d d e b t r e l i e F
2011$’000
2010$’000
DepartmentalNo ‘Act of Grace’ expenses were incurred during the reporting period. (2010: no expenses). Nil NilNo waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2010: no waiver). Nil NilNo payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2010: no payments). Nil NilNo ex-gratia payments were provided for during the reporting period. (2010: no payments). Nil NilNo payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 during the reporting period. (2010: no payments). Nil Nil
AdministeredNo ‘Act of Grace’ expenses were incurred during the reporting period. (2010: no expenses). Nil NilNo waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2010: no waiver). Nil NilNo payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2010: no payments). Nil NilNo ex-gratia payments were provided for during the reporting period. (2010: no payments). Nil NilNo payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 during the reporting period. (2010: no payments). Nil Nil
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
293
annu
aL r
epor
t 20
10–1
1Ch
apter
12
/ F
inan
cial s
tatem
ents
n o t e 2 8 . a s s e t s H e l d i n t r u s t
Monetary assetsFinancial assets held in trust were disclosed in Note 26. Special accounts in the table titled Services for Other Entities and Trust Moneys Special Account.
2011 2010$’000 $’000
Cash at bankTotal amount held at the beginning of the reporting period 5 1Receipts 20 6Payments (25) (2)Total amount held at the end of the reporting period – 5
Department of the Prime Minister and Cabinet
n o t e s t o a n d F o r m i n g P a r t o F t H e F i n a n c i a l s ta t e m e n t sfor the period ended 30 June 2011
294
Annu
Al R
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t 20
10–1
1Ch
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12
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Annu
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1Ch
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A P P E N D I X
Protection of Movable Cultural Heritage Act 1986 report 301
301
ANNU
AL R
EPOR
T 20
10–1
1Ap
pend
ix
p R o t e C t i o n o F M o v A b l e C u lt u R A l h e R i tA g e A C t 1 9 8 6 R e p o R t
IntroductionThe Protection of Movable Cultural Heritage Act 1986 (PMCH Act) protects Australia’s heritage of significant movable cultural objects and supports the protection by foreign countries of their heritage of movable cultural objects. This report is prepared in accordance with section 47 of the PMCH Act and covers the operation of the Act from 1 July 2010 to 30 June 2011. Further information is available at www.arts.gov.au.
The PMCH Act regulates the export of cultural heritage objects from Australia. It protects objects which, if exported, would significantly diminish Australia’s cultural heritage. The PMCH Act includes provisions that allow Australia to respond to an official request by a foreign government to return objects that have been illegally exported in contravention of that country’s cultural heritage laws.
National Cultural Heritage AccountThe purpose of the National Cultural Heritage Account is to facilitate the acquisition of Australian protected objects for display or safekeeping. The following significant Australian objects were acquired with assistance from the account during 2010–11:
• Rennie Ellis Photographic Collection, State Library of Victoria
• DAP Beaufort Bomber Mark V – A9-13, Australian Aircraft Restoration Group.
Compliance and EnforcementThe department responded to 40 enquiries on a diverse range of objects being exported and imported including fossils, human remains and antiquities. Objects illegally exported from another country in contravention of the cultural heritage laws of that country, and imported to Australia, may be subject to seizure and forfeiture to the Commonwealth for return to the requesting government. The department, in response to a request from the Royal Government of Cambodia, seized and returned over 30 Cambodian protected objects.
Administrative Appeals TribunalSection 48 of the PMCH Act provides that certain decisions of the minister may be reviewed by the Administrative Appeals Tribunal (AAT). During 2010–11, the AAT received one application for review of a decision, with the application yet to be heard. One other application, made in 2008, was withdrawn.
A P P E N D I X
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Figure A1 Summary of export permit applications and assessments in 2010–11
Number of Number of Export applications applications objects
Applications received during 2010–11 79 765
Applications finalised during 2010–11 110 844
Applications active at 30 June 2011 7 8
Number of Number of Outcomes of applications finalised outcomes objects
Permanent export permits issued 11 11
Temporary export permits issued 6 6
Applications finalised – no permit required 63 757
Certificates of exemption issued 19 59
Permits refused 5 5
Applications withdrawn 6 6
Total 110 844
Figure A2 Membership of the National Cultural Heritage Committee in 2010–11
Member Term of appointment
Chair: Dr Patrick Greene OBE Appointed member 06/05/10 to 30/06/13Appointed Chair 10/03/11 to 30/06/13
Professor Daryl Le Grew Re-appointed 06/05/10 to 31/12/10
Professor Andrew Reeves Appointed 03/04/11 to 31/03/14
Ms Avril Quaill Re-appointed 10/03/11 to 31/03/14
Ms Anne-Marie Schwirtlich Appointed 09/05/07 to 08/05/11
Dr Ian Galloway Appointed 16/09/08 to 30/09/11
Mr Phillip Gordon Appointed 16/09/08 to 30/09/11
Chair: Dr Darryl McIntyre Appointed 06/05/10 to 30/06/13Resigned 12/11/10
Dr Suzanne Miller Appointed 22/07/08 to 30/09/11
Professor Kenneth Polk Appointed 15/05/10 to 15/05/13
Professor Janice Reid AM Appointed 10/03/11 to 31/03/14
Ms Kylie Winkworth Re-appointed 19/07/10 to 31/12/13
Compliance index 304
Index of figures 308
List of abbreviations 310
Glossary of key terms 315
Alphabetical index 317
G L O S S A R y A N D I N D E X E S
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C o M p l i A n C e i n D e x As per the Requirements for Departmental Annual Reports, below is the compliance index providing a page reference for the location of each item.
Figure B1 Compliance index
LocationDescription Requirement Page no.
Letter of transmittal Mandatory iii
Table of contents Mandatory iv
Index Mandatory 317
Glossary Mandatory 315
Contact officer Mandatory ii
Internet home page address and internet address for report Mandatory ii
Review by departmental secretary Mandatory 1
Summary of significant issues and developments Suggested 1
Overview of department’s performance and financial results Suggested 15 and 170
Outlook for following year Suggested 8
Significant issues and developments – portfolio Portfolio departments – suggested
22
Overview description of department Mandatory 12
Role and functions Mandatory 12
Organisational structure Mandatory 18
Outcome and program structure Mandatory 20
Where outcome and program structures differ from PBS/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change
Mandatory 13
Portfolio structure Mandatory 22
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G L O S S A R y A N D I N D E X E S
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LocationDescription Requirement Page no.
Review of performance during the year in relation to programs and contribution to outcomes
Mandatory 27–120
Actual performance in relation to deliverables and KPIs set out in PBS/PAES or other portfolio statements
Mandatory 27–120
Performance of purchaser/provider arrangements If applicable, suggested
155
Where performance targets differ from the PBS/PAES, details of both former and new targets, and reasons for the change
Mandatory 20
Narrative discussion and analysis of performance Mandatory 27–120
Trend information Mandatory 12–120
Significant changes in nature of principal functions/services Suggested 13
Factors, events or trends influencing departmental performance
Suggested 27–120
Contribution of risk management in achieving objectives Suggested 136
Social justice and equity impacts Suggested 34
Performance against service charter customer service standards, complaints data, and the department’s response to complaints
If applicable, mandatory
138
Discussion and analysis of the department’s financial performance
Mandatory 171
Discussion of any significant changes from the prior year or from budget
Suggested 171
Agency resource statement and summary resource tables by outcomes
Mandatory 174
Developments since the end of the financial year that have affected or may significantly affect the department’s operations or financial results in future
If applicable, mandatory
217
Agency heads are required to certify that their agency comply with the Commonwealth Fraud Control Guidelines
Mandatory iii
Statement of the main corporate governance practices in place
Mandatory 121–168
Names of the senior executive and their responsibilities Suggested 121
Senior management committees and their roles Suggested 134
Corporate and operational planning and associated performance reporting and review
Suggested 121
Approach adopted to identifying areas of significant financial or operational risk
Suggested 136
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Description Requirement Page no.
Policy and practices on the establishment and maintenance of appropriate ethical standards
Suggested 138
How nature and amount of remuneration for SES officers is determined
Suggested 145
Significant developments in external scrutiny Mandatory 138
Judicial decisions and decisions of administrative tribunals Mandatory 75 and 140
Reports by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman
Mandatory 138
Assessment of effectiveness in managing and developing human resources to achieve departmental objectives
Mandatory 140
Workforce planning, staff turnover and retention Suggested 145
Impact and features of enterprise or collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and AWAs
Suggested 144
Training and development undertaken and its impact Suggested 147
Occupational health and safety performance Suggested 151
Productivity gains Suggested 144
Statistics on staffing Mandatory 140
Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs
Mandatory 144
Performance pay Mandatory 145
Assessment of effectiveness of assets management If applicable, mandatory
155
Assessment of purchasing against core policies and principles Mandatory 154
A summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website.
Mandatory 155
Absence of provisions in contracts allowing access by the Auditor-General
Mandatory 154
Location
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LocationDescription Requirement Page no.
Contracts exempt from AusTender Mandatory 155
Financial statements Mandatory 169–299
Occupational health and safety (section 74 of the Occupational Health and Safety Act 1991)
Mandatory 151
Freedom of information (subsection 8(1) of the Freedom of Information Act 1982)
Mandatory 158
Advertising and market research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns
Mandatory 160
Ecologically sustainable development and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)
Mandatory 161
Grant programs Mandatory 168
Disability reporting – explicit and transparent reference to agency-level information accessible through other reporting mechanisms
Mandatory 143
Correction of material errors in previous annual report If applicable, mandatory
Not applicable
List of requirements Mandatory 304
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i n D e x o F F i g u R e sFigure B2 List of figures
Ref No. Figure Title Page No.
2.1 Departmental changes during 2010–11 14
2.2 PM&C organisational structure 18–19
2.3 Our outcome and program framework 21
2.4 Portfolio resourcing trends 24–25
2.5 PM&C staffing overview 26
5.1 Progress on implementation of recommendations 66–69
6.1 Summary of items of correspondence processed 81
6.2 Performance relating to parliamentary questions 81
6.3 Number of Senate estimates questions on notice 81
6.4 Services to Cabinet and other decision makers 83
8.1 Summary of ceremonial and hospitality services 96
9.1 Regional touring programs: 2010–11 metropolitan and regional seasons funded
105
9.2 Regional and touring program statistics 106
9.3 Film tax offsets and the Foreign Actor Certification Scheme 107
11.1 Staff distribution at 30 June 2011 141
11.2 Human resources workforce profile 142–143
11.3 Trends in employment agreements 144
11.4 Trends in base salary 145
11.5 2010–11 performance bonus paid 145
11.6 Human resources workforce profile – numbers, commencements, retentions and separations
146
11.7 Health and safety performance 154
11.8 Trends in consultancies 156
11.9 2010–11 consultancies 156–158
11.10 Freedom of information requests and performance 160
11.11 2010–11 advertising and market research 161
11.12 National Australian Built Environment Rating System (NABERS) for One National Circuit
162
11.13 Trends in energy usage 163
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Ref No. Figure Title Page No.
11.14 Trends in carbon dioxide emissions 163
11.15 Trends in emissions by source 164
11.16 Trends in leased vehicle targets 164
11.17 Performance against environment goals 165
11.18 Trends in recycled waste 166
11.19 Recycled graphic 166
11.20 Trends in breakdown of recycled waste 166
A1 Summary of export permit applications and assessments in 2010–11 302
A2 Membership of the National Cultural Heritage Committee in 2010–11 302
B1 Compliance index 304–307
B2 Index of figures 308–309
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l i s t o F A b b R e v i A t i o n s
AAO
AASB
AAT
ABC
ABGR
ABS
Administrative Arrangements Order
Australian Accounting Standards Board
Administrative Appeals Tribunal
Australian Broadcasting Corporation
Australian Building Greenhouse Rating
Australian Ballet School
ABN Australian Business Number
ACNC
ADF
Australian Charities and Not-for-profits Commission
Australian Defence Force
AE Additional Estimates
AFP Australian Federal Police
AFC Asian Football Confederation
AFL
AFM
Australian Football League
Advance to Financial Minister
AGA
AGIEI
Australian Government Actuary
Australian Government International Exhibitions Insurance
ANAM
ANAO
Australian National Academy of Music
Australian National Audit Office
ANIPP
ANU
ANZSOG
Australian National Institute of Public Policy
Australian National University
Australian and New Zealand School of Government
AO Officer of the Order of Australia
AOFM
APEC
APS
Australian Office of Financial Management
Asia–Pacific Economic Cooperation forum
Australian Public Service
APSC Australian Public Service Commission
ARC Australian Research Council
ASC
ASEAN
Australian Sports Commission
Association of Southeast Asian Nations
ASEM
ASIB
Asia-Europe Meeting
Australian Social Inclusion Board
ASL
AUKMIN
AUSMIN
Average staffing level
Australia–United Kingdom Ministerial Consultations
Australia–United States Ministerial Consultations
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AYO Australian Youth Orchestra
AWA Australian Workplace Agreement
BE Budget Estimates
BPT Border Protection Taskforce
BPWG Border Protection Working Group
CABNET Cabinet network
CAC Commonwealth authorities and companies
CAPPI Canada–Australia Public Policy Initiative
CDDA Compensation for Detriment caused by Defective Administration
CDF Capability Development Framework
CDRG Capability Development Reference Group
CERHOS Ceremonial and Hospitality Branch
CHOGM Commonwealth Heads of Government Meeting
CIU Cabinet Implementation Unit
COAG Council of Australian Governments
CPC Cyber Policy Coordinator
CPG Commonwealth Procurement Guidelines
CRC COAG Reform Council
CSS Commonwealth Superannuation Scheme
DCB Departmental Capital Budget
department, the The Department of the Prime Minister and Cabinet
DEEWR Department of Education, Employment and Workplace Relations
DIAC Department of Immigration and Citizenship
DIRC Defence, Intelligence and Research Coordination Division
DoHA Department of Health and Ageing
DPRK Democratic People’s Republic of Korea
DSEWPaC Department of Sustainability, Environment, Water, Population and Communities
DSRAB Defence Strategic Reform Advisory Board
EA Enterprise Agreement
EAS East Asia Summit
ECONET Ethics Contact Officer Network
EL Executive Level
ELR Educational Lending Right
EPBC Environment Protection and Biodiversity Conservation
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ESD Ecologically sustainable development
EMS Environmental management system
FaHCSIA Department of Families, Housing, Community Services and Indigenous Affairs
FAS First Assistant Secretary
FBT Fringe benefits tax
FFFC Flying Fruit Fly Circus
Finance Department of Finance and Deregulation
FMO Finance Minister’s Orders
FOI Freedom of information
FTE Full-time equivalent
G20 Group of twenty finance ministers and central bank governors
Garnduwa Garnduwa Amborny Wirnan Aboriginal Corporation
GDP Graduate Development Program/Gross Domestic Product
GHG Greenhouse Gas
GSG Graduate Support Group
GST Goods and services tax
GVG Green vehicle guide
HBSR Homeland and Border Security Review
HPCG Homeland and Border Security Policy Coordination Group
HSMA Health and Safety Management Arrangements
IartC Ltd Indigenous Art Code Limited
ICT Information Communication Technology
IDIS Illicit Drugs in Sport
IGIS Inspector-General of Intelligence and Security
IPS Information Publication Scheme
ISB Information Services Branch
IT Information Technology
KG Knight of the Garter
KPI Key Performance Indicator
LSL Long service leave
MCU Ministerial Correspondence Unit
MSD Ministerial Support Division
NABERS National Australia Built Environment Rating System
NADC National Australia Day Council
NAIDOC National Aborigines and Islanders Day Observance Committee
NAISDA National Aboriginal and Islander Skills Development Association
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NATO North Atlantic Treaty Organisation
NBN National Broadband Network
NCITO National Collecting Institutions Touring and Outreach program
NCTC National Counter-Terrorism Committee
NDRB National Disaster Recovery Branch
NEMC National Emergency Management Committee
NESB Non-English speaking background
NFP Not-for-profit
NHM Natural History Museum
NICA National Institute of Circus Arts
NICC National Intelligence Coordination Committee
NIDA National Institute of Dramatic Art
NIRA National Indigenous Reform Agreement
NMHC National Mental Health Commission
NPG National Portrait Gallery
NSC National Security College
NSCIO National Security Chief Information Officer
NSSC National Security Science and Technology
OAIC Office of the Australian Information Commissioner
OECD Organisation for Economic Cooperation and Development
OH&S Occupational health and safety
OPA Official Public Account
OTM Other Trust Monies
OWF Office of Work and Family
PAES Portfolio Additional Estimates Statements
PBC Parliamentary Business Committee
PBS Portfolio Budget Statement
PCO Privy Council Office
PCP People, Capability and Performance Branch
PDV Post, digital and visual effects
PLR Public Lending Right
PM&C Department of the Prime Minister and Cabinet
PMCH Protection of movable cultural heritage
PMDS Performance Management Development Scheme
PMDP Performance Management Development Plan
PSM Public Service Medal
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PSS Public Sector Superannuation Scheme
PSSap Public Sector Superannuation Scheme accumulation plan
RAP Reconciliation Action Plan
RBA Reserve Bank of Australia
SBE Supplementary Budget Estimates
SCNS Secretaries Committee on National Security
SES Senior Executive Service
SIEV Suspected Illegal Entry Vessel
SPCG Strategic Policy Coordination Group
SRC Safety, rehabilitation and compensation
TIS Translating and interpreting services
Treasury Department of the Treasury
VEP Vocational employment program
YMCA Young Men’s Christian Association
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g l o s s A R y o F k e y t e R M sAdministrative Arrangements Order (AAO): An order, issued from time to time by the Governor-General on advice from the Prime Minister, which establishes the matters or outcomes to be dealt with by each department of state, and the Acts to be administered by each minister
administered items: revenues, expenses, assets and liabilities that the government controls but which an agency or authority manages on the government’s behalf
agency: a department of state, department of parliament and prescribed agency under the Financial Management and Accountability Act 1997
Asia–Pacific Economic Cooperation (APEC): the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region, comprising 21 member economies
Australian Workplace Agreement (AWA): an agreement between an employer and an employee about the terms and conditions of employment, made under the Workplace Relations Act 1996
Chief Executive’s Instructions (CEIs): instructions and guidance provided for accountability requirements under the Financial Management and Accountability Act 1997
Commonwealth Heads of Government Meeting (CHOGM): Australia will be hosting the CHOGM in Perth in 2011. A taskforce has been established to undertake all the liaison and logistical work required to conduct the event
Commonwealth Procurement Guidelines (CPGs): establish the core procurement policy framework and articulate the government’s expectations for all agencies subject to the Financial Management and Accountability Act 1997 and their officials when performing duties in relation to procurement
Council of Australian Governments (COAG): the peak intergovernmental forum in Australia, comprising the Prime Minister, state Premiers, territory Chief Ministers and the President of the Australian Local Government Association
enterprise agreement (EA): an agreement about the terms and conditions of employment, made under the Fair Work Act 2009, pertaining to the relationship between the employee and employer
equity: also known as net assets, it is the residual interest in the assets of an entity after deduction of its liabilities
First Ministers: the Prime Minister, state premiers and territory chief ministers
non-ongoing employee: an Australian Public Service employee who is employed for a specific term or task, or for duties that are irregular or intermittent as per paragraph 22(2)(a) of the Public Service Act 1999.
outcomes and outputs structure: this structure reflects an agency’s business and enables sound performance reporting to parliament. Outcomes are the results, impacts or consequences of actions by the Australian Government affecting the Australian community. Outputs contribute to outcomes. They are the goods or services produced by agencies on behalf of the government and are specified by price, quantity or quality
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Portfolio Budget Statements (PBS): explain the provisions of the Appropriation Bills (Budget Bills) – that is, where appropriated funds are to be spent
portfolio agencies: government agencies in a portfolio, which are accountable to a minister. For a list of the Prime Minister’s portfolio agencies, see page 22
price of outputs: the government’s contribution to the department’s direct costs in producing required outputs and associated indirect costs, such as corporate overheads. It does not include, for example, revenue from independent sources
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A l p h A b e t i C A l i n D e x
Aabbreviations 310–14accidents or dangerous occurrences 151accrued revenue 224acquisition of assets 211acronyms 309–14Active After-school Communities Program 118
Adams, Gary 112administered items
cash transfers 215contingent assets and liabilities 270–1employee benefit provisions 216expenses 173financial instruments 274–9investments 215–16, 272–3reconciliation table 269restructuring 239–42schedule of 194–9trends in 173
Administrative Appeals Tribunal 75, 301–2
Administrative Arrangements Order 13advertising 160–1Afghanistan, contribution to 57Agreement on National Health Reform 4agriculture policy 32Ahead of the game Blueprint for the
reform of Australian government administration 5, 63–5
amortisation 257analysis of intangibles 230–1analysis of property, plant and equipment 226–8
Andrew, Danielle 80Angus, Chris 129, 129annual appropriations 280–3Anti-Doping Research program 116, 119APEC Cross-Border Privacy Enforcement Arrangement 76
APEC Data Privacy Pathfinder 76APEC Leaders meeting 58appropriations 280–6APS, see Australian Public ServiceArbib, Mark 22, 120Armstrong, Elliott 80Art Rental Special Account 287
arts, see Office for the ArtsArts and Sports Group 13, 158arts training organisations 101, 108ASEAN–Australia summit 47, 58Asia–Europe Meeting 58Asian Cup bid 119, 270assets
acquisition of 211administered on behalf of government 258–64
contingent 210, 244, 270–1derecognition of 213financial 173, 209–10, 222–4held for sale 213held in trust 293heritage and cultural assets 213impairment of 210, 257intangibles 214, 229–31major classes of 296–9management of 155net income and expenses from 275non-financial 173, 225–32, 260–4recognition threshold 211schedule of additions 193write-down of 257
Audit Committee 134–5Australia Business Arts Foundation Limited 273
Australia Council 272Australia Day 2011 Reception 95Australia Day Achievement Awards 50Australian Accounting Standards 203–5Australian Centre for Philanthropy and Nonprofit Studies 38
Australian Charities and Not-For-Profits Commission 38–9
Australian Civilian Corps 56Australian Defence Force 88Australian Export Finance and Insurance Corporation 41
Australian Film, Television and Radio School 272
Australian Football League 112Australian General Service Medal for Korea 78
Australian Government Branding Design Guidelines 78
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Australian Government Crisis Committee 4, 88
Australian Government Disaster Recovery Payment 4, 35
Australian Government Indigenous Coordination Centres 102
Australian Government International Exhibitions Insurance 107
Australian Government Reconstruction Inspectorate 89
Australian Honours System 78Australian Information Commissioner 5, 77Australian National Audit Office 138–9, 171, 182–3
Australian national flag and anthem 78Australian National Institute of Public Policy 66
Australian National Maritime Museum 272Australian National University 148Australian of the Year Awards 95Australian Privacy Principles 75Australian Public Service
APS 200: 5, 66–7APS Values and Code of Conduct 67, 138
collaboration across 33leadership development strategy 68Policy Implementation Network 63, 65Reform and Engagement Branch 64–5Workforce Planning Group 68
Australian Research Council 57Australian Social Inclusion Board 36Australian Sports Commission 5, 273Australian Sports Foundation Limited 273Australian Workplace Agreements 143–4Australiana Fund 96Australia–Pacific Economic Cooperation Data Privacy Sub Group 76
Australia–United Kingdom Ministerial Consultations 92
Australia–United States Ministerial Consultations 46, 92
bBacon, Rachel 127, 127balance sheet 185basis of preparation of the financial statements 202
Basser, Sally 130, 130
Battle of Kapyong 53, 58Beresford, Tim 125, 125Better Regions Program 139Better Start for Children with Disability 35Black, Rufus 56Boosting Productivity Through Regulation
and Competition Reform 42Border Protection Taskforce 50Border Protection Working Group 50borrowing costs 209Bo’sher, Luke 70, 70Brand, Thomas 90, 90Breakthrough Program 113Bryce, Quentin 50, see also Governor-General, support for
budget process 5, 41Building Australia’s Future Workforce 35buildings 225, see also infrastructure, plant and equipment; property, plant and equipment
Bullying and Harassment Prevention Guidelines 138
Bundanon Trust 273
CCabinet, services to 83Cabinet Division 82–3Cabinet Implementation Unit 64–5CAC Act Body Payment Items 257Calma, Tom 152Canada–Australia Public Policy Initiative 54capability development programs 8, 147–8
Capital Region Tourism Excellence Awards 109
Carbon Capture and Storage Flagship Program 32
carbon footprint 163cash and cash equivalents 209, 222, 258cash flow reconciliation 243cash flow statement 188–9cash transfers 215categories of financial instruments 274Centenary of PM & C 9Centre for International Finance and Regulation 41
Ceremonial and Hospitality Branch 52–3, 89, 92–96
changes in equity, statement of 186–7
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Chief Financial Officer, statement by 181China, PM’s visit to 53, 59CHOGM, see Commonwealth Heads of Government Meeting
Christchurch earthquake 6Christmas Island boat tragedy 47, 50Clean Energy Future package 4, 32Clean Energy Solar program 32climate change 32Clinton, Hilary Rodham 94Closing the Gap targets 30COAG, see Council of Australian Governments
Cole, Patricia 80commencements 146Commissioner’s Directions 68commitments, schedule of 190–1committees 3, 134–6, 302Commonwealth authorities 22Commonwealth companies 23Commonwealth Flag Network 78Commonwealth Games 2018 bid 119, 270Commonwealth Heads of Government Meeting 6, 8, 86–8, 98, 245
Commonwealth Marine Reserve Networks 33
communications policy 33Community Cabinet meetings 5, 62community engagement activities 87Community Heritage Grants program 107compensation 292complaint handling 138compliance index 304–7comprehensive income 221Conroy, Stephen 22consultants 155–8Consultative Committee 135Contemporary Music Touring program 104–5
Contemporary Touring Initiative 104–5contingencies, schedule of 192contingent assets and liabilities 210, 244, 270–1
Coordinated National Security Budget 49core skills development 149Cornall, Robert 56corporate governance 122–38Corporate Management Group 134correspondence, items processed 81
Council of Australian Governmentsnew technologies 10on charities 39Reform Council 43Review of Agreements 8support for 5, 42
counter-terrorism 49Crane, Terry 130, 130Crean, Simon 22, 103credit risk 252–3, 276–8crisis coordination 49–50Cross, Rebecca 17, 124, 124, 153cultural development, see Office for the Arts
Cultural Ministers’ Council Special Account 288
Cummings, Greig 80Cusbert, Thomas 44, 44Cyber Policy Coordination 7, 51Cyber White Paper 8, 51cyclones 88–9
DDe Brouwer, Gordon 6, 16, 123,
123, 132–3debt relief 292Defence, Intelligence and Research Coordination Division 55–7
Defence Strategic Reform Program 55Definitive Agreements between NBN Co and Telstra 33
Democratic People’s Republic of Korea 53Department of Agriculture, Fisheries and Forestry 32
Department of Education, Employment and Workplace Relations 4, 35
Department of Families, Housing, Community Services and Indigenous Affairs 13, 30, 235
Department of Finance and Deregulation 13, 63, 97, 242
Department of Health and Ageing 4, 13, 29, 235, 240
Department of Immigration and Citizenship 30
Department of Infrastructure and Transport 13
Department of Regional Australia, Regional Development and Local Government 13
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Executive Indigenous Champion 153expenses 173, 176–9, 218–19, 256–7external scrutiny 138–40
FFahey, John 89fair value of financial instruments 252, 275Families in Australia 2011: Sticking
together in good and tough times 34Federal Election 2010: 2, 74Federal Executive Council 82Fenner, Frank 92, 95Festivals Australia 104–5figures, index of 308film tax offset programs 107finances 8financial assets 173, 209–10, 222–4financial guarantee contracts 210financial instruments 251–4, 274–9financial liabilities 210financial sector 41First Aid officers 151fiscal policy 41Fisher, Andrew 80flooding in Victoria and Queensland 88–9FOI applications 74Foreign Actor Certification Scheme 107Foreign Investment Review Board 41former Governors-General, support for 79, 97, 215, 267
free trade agreements 41freedom of information 76, 158–60Freedom of Information Commissioner 77funding sources 170Furnell, Peta 126, 126Future Fellowships program 57
gG20 meetings 6, 41–2, 58–9gains 205gambling, social cost of 34Garnduwa Amborny Wirnan Aboriginal Corporation 112
Gillard, Julia 50, 53, 58, 93–5addresses NZ Parliament 7as portfolio minister 22North Asia visit 52–3, 58–9overseas visits 6, 92–3
Department of Resources, Energy and Tourism 33
Department of Sustainability, Environment, Water, Population and Communities 13, 236, 240
departmental changes 14departmental finances 171–2departmental overview 12–26departmental restructuring 235–8depreciation 212–13, 257Deputy National Security Adviser 88derecognition of assets 213disability reporting 35, 143discretionary grants 168documents held 159Docwra, Pete 129, 129domestic developments 2–5Domestic Policy Group 12, 28–44Dreyfus, Mark 22drought policy 32
eEast Asia Summit 6, 47, 58–9Easton, Brett 137, 137Eccles, Richard 16, 124, 124, 153ecologically sustainable development 161–6
Economic Division 40–2Educational Lending Right 100Educational Tourism Award 109effective interest method 209electronic document readers 10, 10Emergency Management Australia 50employee benefit provisions 207–8, 216, 234, 256, 266
energy usage 162English, Dominic 127, 127Enterprise Agreements 8, 143–4environment policy 33Environmental Management System 162environmental performance 161–6ethical standards 138Ethics Contact Officer network 138Eveille, Graham 128, 128events occurring after the balance sheet date 217
Executive Diversity Champion 153Executive Group 15–17, 134
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global engagement 6–7glossary 315–16Goodall, Vanessa 60, 60Gounder, Sam 80governance 122–38Governance Group 12Government Division 73–9government issues 74Governor-General, support for 82,
see also former Governors-Generalgraduate program 137, 150Graduate Support Group 136Granfield, Yvonne 80grants 207
administered 216, 256–7, 265as payables 233discretionary 168
Gray, Gary 22Guest of Government Visits to Australia 94Guidelines for post-election consultations
with independent members 2, 74
hHallman, Dan 54Harassment Contact Officer network 138, 151
Harvey, Ron 118HC Coombs Policy Forum 66Health and Safety Committee 135, 151health reform 29heritage and cultural assets 213heritage policy 33Hockley, Andrew 127, 127Homeland and Border Security Division 47–50, 88
Homeland and Border Security Policy Coordination Group 49
Homeland and Border Security Review 47, 56
Homelessness Delivery Review Board 35Honours and Awards Secretariat 78Honours System 78housing supply and affordability reform 40human resource management 140–51,
see also staffing
iIllicit Drugs in Sport program 117immigration 30impairment of assets 210, 257
Implementation Division 64–9income 184, 220–1, 255, 275, 296–9incoming government brief 63independent auditor’s report 182–3Independent National Security Legislation Monitor 47, 49
Independent Review of the Intelligence Community 8, 47, 56
Indigenous Art Code Limited 104Indigenous Australian Art Commercial Code of Conduct 102, 104
Indigenous programs 112–13Indigenous Broadcasting program 106, 113
Indigenous Culture Support program 100, 106
Indigenous Employment initiative 106, 113
Indigenous Sport and Recreation program 112, 117–18
Indigenous reform agenda 30induction programs 149Industry, Infrastructure and Environment Division 32–3
industry policy 33industry secondment program 150–1Information Publication Scheme 74, 158Information Services Branch 167infrastructure, plant and equipment 211–13, 261–3
Ingle, Patrick 80Inspector-General of Intelligence and Security Amendment Bill 2011 56
intangible assets 214, 229–31intelligence policy 56International Counter Homemade Explosives Workshop 60
International Division 57–9international economy 41international engagement on privacy matters 76
International repatriation program 107International Year of Volunteering Tenth Anniversary Advisory Group 36
internship program 150inventories 232investments 215–16, 259, 272–3It’s an Honour Exhibition 78
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JJacobs, Sean 83, 83Jagla, Adam 114Japan, PM’s visit to 52, 59job creation packages 112, 117–18John Holland Award for Best Public Building 109
Jones, Raymond 80journal alert service 131
kKey, John 57, 92key performance indicators,
see performanceKing, Matthew 181King Edward Terrace building 108Kirribilli House 96–7Korea, PM’s visit to 52
lland and buildings 260leadership development 148leased vehicles 164leases 208–9leave entitlements 207–8legal policy issues 74–5legal proceedings 75legislation circulars 74legislation submissions 74Leverett, Frank 132–3Lewis, Duncan 16, 123, 123liabilities
administered 265–8, 270–1contingent 210, 244, 270–1financial 210major classes of 296–9
Library Services 131liquidity risk 254, 279live cattle export trade 32loans 209, 215location offsets 101Lodge, The 96Lundy, Kate 22Lynch, Philippa 128, 128
Mmachinery of government changes 13Maintenance of Indigenous Languages and Records program 100, 106, 113
major classes of departmental expense, income, assets and liabilities by outcomes 296–9
Making Every School a Great School program 35
Malaysia–Australia Free Trade Agreement 57
management and accountability 122–68mandatory training 149Maritime Museums of Australia Project Support scheme 107
market research 160–1market risk 254, 279Marysville and District Historical Society 107
match-fixing 120Mathieson, Tim 58McCarthy, Margot 16, 124, 124McMillan, John 77Medics, The 113, 113Memorandum of Understanding on National Security and Counter-terrorism Cooperative Science and Innovation 47, 57
mental health reform 29Minami Sanriku, Japan 52–3Ministerial Correspondence Unit 80, 80Ministerial Council Transition Working Group 42
Ministerial Support Division 79–82, 92–7ministers 22Moran, Terry 2–9, 15–16, 122, 122, 181Multi-Party Climate Change Committee 4, 32, 64, 82
Murray–Darling Basin 32
nNasir, Luke 80National Aboriginal and Islander Skills Development Association 271
National Aborigines and Islanders Day Observance Committee 20
National Affordable Housing Agreement 40
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National Anti-doping Framework 116National Archives of Australia 82, 159National Arts and Crafts Industry Support program 100, 106, 113
National Australia Day Council 78–9, 272National Broadband Network 4, 33National Collecting Institutions 107National Collection Special Account 288National Compact 38National Counter-terrorism Arrangements 7, 47
National Counter-terrorism Committee 48–9
National Crisis Committee 4, 167National Cultural Heritage Committee 302National Cultural Heritage Special Account 290, 301
National Cultural Policy 5, 102National Disability Strategy 35National Disaster Recovery Branch 88National Disaster Recovery Committee 4, 82
National Disaster Recovery Taskforce 89National Disaster Relief and Recovery Arrangements 4, 35
National Emergency Management Committee 50
National Emergency Medal 78National Film and Sound Archive 272National Gallery of Australia 272National Health Reform Agreement 29National Indigenous Reform Agreement 30National Institute System Intergovernmental Agreement 118
National Intelligence Coordination Committee 56
National Library of Australia 273National Mental Health Commission 4, 29National Museum of Australia 273National Partnership Agreements 5, 42National Plan to Reduce Violence against Women and Their Children 34
National Police Service Medal 78National Policy on Match-fixing in Sport 118, 120
National Portrait Gallery 101–2, 108–11, 289
national securityNational Security Adviser 56, 88National Security and International Policy Group 12, 46–70
National Security Chief Information Officer 51
National Security College 66National Security Information Environment Roadmap 51
National Security Science and Innovation Steering Committee 57
national security science and technology 56–7
Secretary’s review 6–7National Sport and Active Recreation Policy Framework 118
National Strategy for Disaster Resilience 50
national symbols 78National Urban Policy 33National Volunteering Strategy 36natural disasters 4, 35, 49–50, 82, 88–9Natural History Museum, London 103net cost of outcome delivery 294–5net equity 171net income and expenses from financial assets 275
New Zealand 6–7, 49, 57News@One National newsletter 79Noble, Rachel 127, 127non-cash benefits 267non-financial assets 173, 225–32, 260–4notes to and forming part of the financial statements 200–99
not-for-profit sector 36, 38–9Not-for-profit Sector Reform Council 38
oObama, Barack 6, 93objectives 201occupational health and safety 151–4O’Connor, Brendan 22Office for Sport 7, 112, 116–20Office for the Arts 5, 7, 100–14Office for the Not-for-profit Sector 36, 39Office of the Australian Information Commissioner 13, 171, 238
Office of the Commonwealth Coordinator General 171
Office of the Cyber Policy Coordinator 47
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Office of Work and Family 34–6official and ceremonial support 92–7official establishments 96–7One National Circuit Building 162Online Directory of National Security Science 56–7
Order of Australia 78organisational structure 18–19O’Shea, Agnes 152outcome and program structure 20–1
ppaid parental leave scheme 4Parliament House Briefing Room 47, 50Parliamentary Business Committee of Cabinet 74
parliamentary issues 74parliamentary questions 15, 81Parliamentary Standing Group on the Christmas Island Boat Tragedy 50
Passenger Name Records Treaty 76payables 233payments to CAC Act bodies 216PDV offsets 101People of Australia: Australia’s
multicultural policy 30People’s Republic of China, PM’s visit to 53, 59
performanceagainst service charter 138bonuses based on 145departmental overview 15measurement of 170Secretary’s Review 7
Performance Management Development scheme 147
Philip Morris Ltd 75Pilgrim, Timothy 77Playing Australia group 104–5Plibersek, Tanya 22Popple, James 77portfolio budget statements 20portfolio changes 13–14portfolio ministers 22portfolio resourcing trends 24–6prescribed agencies 23Present tense: An imagined grammar
of portraiture in the digital age 108Prime Minister, see Gillard, JuliaPrime Minister’s Business Taskforce 89
Prime Minister’s Indigenous Executive Leadership Fellowship 151
Prime Minister’s Literary Awards 101–2, 104
privacy reform 75–6procurement (purchasing) 154–5Productivity Commission report on gambling 34
Productivity Committee of Cabinet 40productivity gains 144professional development programs 148–9promotions 146property, plant and equipment 225–8, 260–3
Protection of Moveable Cultural Heritage Act 1986: 101, 300–2
provisions 234public interest disclosures 75public lending right 100Public Service Act 1999, amendments to 67–8
Public Service Medal recipients 132–3purchaser–provider arrangements 155purchasing 154–5
QQueensland, natural disasters in 88–9Question Time briefings 15
RRazak, Najib 57, 95receivables 209, 215, 258Reconciliation Action Plan 152–3recruitment 147Red Cross 23, 52red tape reduction 69reduction in administered items 285–6redundancy entitlements 208Regional and Local Community Infrastructure program 139
Regional Arts Fund 106regional touring programs 104–6Reliance Framework Business Case 66remuneration 145, 247–8, 250Remuneration and Other Legislation
Amendment Act 2011: 74Remuneration Tribunal 74renewable energy target 32reporting of administered activities 215–16reporting of outcomes 294–9
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Republic of Korea, PM’s visit to 52resource statement 174–5restructuring 235–42Return of Indigenous Cultural Property program 107, 113, 290
revaluations 211–12revenue 205, 215, 224Review of Australian Government Investment in the Indigenous Broadcasting and Media Sector 102–3
Review of Parliamentary Entitlements 74Review of the Australian Independent Screen Production Sector 5, 102–3
Richardson, Lynsey 80Rimmer, Ben 16, 123, 123risk management 136Ronalds, Paul 126, 126Rowe, Bill 130, 130royalties 257Rudd, Kevin 9
sSavage, Joy 31, 31schedule of administered items 194–9schedule of asset additions 193schedule of commitments 190–1schedule of contingencies 192Schreier, Paul 17, 125, 125Screen Australia 273Seamless National Economy 33Secretaries Board 67–8Secretaries Committee on National Security 55, 82
Secretaries Committee on Social Policy 5Secretary’s Review 2–9section 24(1) determinations 144Security Committee 136Senate Estimates questions on notice 81Senior Executive Service 68, 123–30, 145, 246–9
Senior Management Group 134separations 145–6, 208Services for Other Entities and Trust Moneys Special Account 287
Sharma, Dave 128, 128Shepherd, Malcolm 9SIEV 221 incident 47, 50significant accounting judgements and estimates 203
skilled migration program 30
Smith, Ric 49Smith Review 47, 56Snowdon, Warren 22social and community services sector pay equity 40
social inclusion 36Social Policy Division 29–30Special Accounts 287–91Sport and Recreation program 116–20, 291, see also Office for Sport
Square Kilometre Array 33staff development 147, see also training for employees
staffingaverage levels 4, 24–5by age 140, 143by division 141by function 26by gender 140by level 142by region 142EEO groups 143human resource management 140–51National Portrait Gallery 111numbers 140Secretary’s review 8
standard business reporting 66standard chart of accounts 39State of the Service survey 68statement of changes in equity 186–7statement of comprehensive income 184Sterland, Barry 17, 125, 125Stevens, Neville 103Strategic Centre for Leadership, Learning and Development 5, 67–8
Strategic Policy and Implementation Group 12, 62–9
Strategic Policy Coordination Group 55Strategic Policy Network 63, 65–6Strategy and Delivery Division 63summary of significant accounting policies 201–16
superannuation entitlements 208suppliers 233, 256, 265Support Services for Government Operations 72–83
Sustainable Australia: Sustainable Communities 33
Sutherland, Joan 92, 95
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ttaxation issues 214Taylor, Marie 37, 37, 126, 126Terrell, Kim 129, 129The Australiana Fund 96The Lodge 96The Medics 113, 113The people of Australia: Australia’s
multicultural policy 30Torres Strait Islanders 103Townsville floods 89trade and other receivables 222–4training for employees 8, 87, 147transactions with the Australian government as owner 206
turnover rate 145–6Turvey, David 126, 126
uUnited States, PM’s visit to 59universal service obligation 33unspent department annual appropriations 284
vvacation employment program 90, 150Victoria, natural disasters in 88–9Visions of Australia program 104–5Volunteers program 87
wWadeye Football Club 112Walker, Bret 49waste management 165–6water management 166water policy 32Watt, Ian 9Welch, Bernadette 129, 129Whittakers, Tess 137, 137William, Prince of Wales 89, 92, 94Wimmer, Sachi 128, 128workforce planning 68, 145–6work–life balance 154Workplace Agreements 144World Environment Day 114World Sailing Championships 119Wriedt, Kenneth 95write-down of assets 257
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Annual report preparation
This report was developed by the annual report team with help from staff throughout PM&C. The 2010–11 annual report team comprised from left to right: Chris Atkinson, Annette Cronin, Myra Croke, David de Hoog and Greg Brown.
Concept, design and typesetting
CRE8IVE
Photographs
A number of images, including some featured on the front cover have been provided to PM&C by the National Archives of Australia (NAA) for use in this publication. The images are as follows (clockwise from Flags at Parliament House):
• Flags at Parliament House (BC 60184599, NAA A6135, K11/4/88/3)
• New Parliament House (BC 9029737, NAA A6135, K7/2/92/9)
• Old Parliament House (BC 11169534, NAA A1200, L49934)
• Exhibition Building (BC 5984671, NAA B941, STATES/VIC/ MELBOURNE/BUILDINGS/5)
• Old Parliament House (BC 6816324, NAA A1200, L7001A)
Artwork
The image featured in photos 2.1 and 3.1 is an untitled 1983 acrylic on canvas work by Long Jack Phillipus Tjakamarra, copyright© of the artist 2011, and used under license from the Aboriginal Artists Agency Ltd.
Internet
The following internet addresses provide further information relating to PM&C:
PM&C www.dpmc.gov.au
Careers at PM&C careers.dpmc.gov.au
PM&C annual reports www.dpmc.gov.au/annual_reports/index.cfm
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