Annual Report 2011-12v Annual Report 2011 12 The following indicators help to measure performance...

Annual Report

2011–12

www.dpmc.gov.au

Departm

ent of the Prime M

inister and Cabinet

Annual R

eport 2011–12

Annual Report

2011–12

ii

Department of the Prime Minister and Cabinet

Contact us

For all inquiries regarding this report please contact: Assistant Secretary, Ministerial Liaison, Communications and Governance, Department of the Prime Minister and Cabinet (ABN 18 108 001 191).

Address: Andrew Fisher Building Email: [email protected] One National Circuit Barton ACT 2600 Australia

Mail: PO Box 6500 Telephone: (02) 6271 5111 Canberra ACT 2600 +61 2 6271 5111 (international) Australia

Internet: www.dpmc.gov.au Fax: (02) 6271 5414 +61 2 6271 5414 (international)

Translation services The Department of Immigration and Citizenship 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. 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, 2012

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Creative Commons licence With the exception of the Coat of Arms and all photos and graphics, this 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. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode.

iii

Annual Report 2011–12

Letter of transmittal

iv


PART 1 introduces readers to PM&C with a description of the portfolio and a review from the Secretary that includes key highlights and a summary of our performance during 2011–12.

PART 2 provides detail on how the Department performed during the period against its outcome and departmental and administered programs.

PART 3 details management and accountability processes, including corporate governance, external scrutiny, purchasing and asset management, human resource management, information and knowledge management, social equity impacts, and ecologically sustainable development and environmental performance processes.

PART 4 contains the audited financial statements for 2011–12 and explanatory information.

PART 5 comprises appendices outlined in the review from the Secretary.

PART 6 comprises the glossaries and indexes that provide useful additional information.

This is the Secretary’s report to the Prime Minister for the financial year ended 30 June 2012.

This Annual Report relates to the Department of the Prime Minister and Cabinet’s (PM&C) performance for 2011–12 against the measures outlined in the Portfolio Budget Statements and the Portfolio Additional Estimates Statements for the same period. The report forms a primary mechanism of accountability to the Parliament of Australia in relation to services provided. It also provides information for the community and stakeholders.

The report has been prepared in line with the Requirements for departmental annual reports for departments, executive agencies and FMA Act bodies (the Annual Report Requirements), as approved by the Joint Committee of Public Accounts and Audit on 28 June 2012. The compliance index (page 218) will direct you to where information required by the Annual Report Requirements can be found in this report.

This report is available in print from 32 libraries around Australia and the online version can be accessed on the PM&C website: www.dpmc.gov.au.

About this report

v


The following indicators help to measure performance across the Department:

§ 3,604 briefs were provided to the Prime Minister and other Portfolio Ministers

§ 529 of these briefs were provided for use in the Cabinet or Cabinet committees

§ approximately 155,000 items of correspondence were processed

§ 509 question time briefs were delivered to the Prime Minister and Portfolio Ministers

§ 95 parliamentary questions on notice were managed.

Our staff

As at 30 June 2012, we had a total of 602 employees, including part-time and non-ongoing employees, employed in ongoing functions of the Department (based on headcount). Some key statistics on our workforce include:

§ 60.8 per cent are women

§ 77.2 per cent are under the age of 45

§ 96.8 per cent are ongoing

§ 93.3 per cent are full time

§ 99.8 per cent are based in Canberra

§ 0.8 per cent identify as Indigenous

There were a further 118 staff who were inoperative or employed in associated functions.

Our role

Operating at the heart of the Australian Government, the primary role of the Department of the Prime Minister and Cabinet (PM&C) is to provide high-quality policy and implementation advice and support to the Prime Minister, the Cabinet, Cabinet committee chairs, our Portfolio Ministers and Parliamentary Secretaries and the Government as a whole. Our advice seeks to drive principles-based, strategic and coordinated policy solutions to Australia’s national challenges and to support the implementation of the Government’s priorities.

Our performance

Our key performance indicators (KPIs) and deliverables are used to assess and monitor our performance and provide an important record of our support for the Government’s policy objectives; how public money was spent and whether planned achievements were on track. PM&C has substantially met each deliverable and KPI for 2011–12, as we have done over the past three years.

Our finances

Machinery of government changes to the Department over the course of 2011–12 affected our financial structures. These are reflected in the financial statements presented in this report. Transfers of functions to and from the Department occurred relatively seamlessly and our financial management responsibilities were met in full.

Summary

vi


Contact us ii

Letter of transmittal iii

About this report iv

Summary v

Part 1: Overview 1The portfolio 2

The Department 5

From the Secretary 9

Part 2: Performance report 15Domestic policy 16

National security and international policy 29

Strategic policy and implementation 38

Support services for government operations 42

Commonwealth Heads of Government Meeting 2011 54

Official and ceremonial support 56

Part 3: Management and accountability 61Corporate governance 62

External scrutiny 66

Management of human resources 67

Work health and safety 80

Purchasing 82

Consultants 82

Freedom of information 83

Advertising and market research 84

Ecologically sustainable development and environmental performance 84

Information technology 90

Grant programs 91

Contents

vii


Part 4: Financial statements 93How we are funded 94

Key results 94

Statement by the Secretary and Chief Financial Officer 103

Independent auditor’s report 104

Financial statements 106

Index to the notes of the financial statements 119

Part 5: Appendices 211Appendix A – The PM&C Craft 212

Appendix B – What do we want the Australian Public Service to be? 214

Part 6: Glossary and indexes 217Compliance index 218

Index of figures 221

List of abbreviations 222

Glossary of key terms 225

Alphabetical index 227

Part 1:

OverviewThe portfolio 2

The Department 5

From the Secretary 9

2 Part 1: Overview


§ The Hon Warren Snowdon MP, Minister Assisting the Prime Minister on the Centenary of Anzac

§ The Hon Gary Gray AO MP, Minister for the Public Service and Integrity

§ The Hon Mark Dreyfus QC MP, Cabinet Secretary

§ Senator the Hon Jan McLucas, Parliamentary Secretary to the Prime Minister.

Portfolio changes

Significant changes occurred within the Prime Minister and Cabinet portfolio during 2011–12. These changes (described below) have been as a result of machinery of government changes reflected in the Administrative Arrangements Orders (AAO) of 19 October 2011, 7 and 14 December 2011 and 9 February 2012.

Transfers from the Prime Minister and Cabinet portfolio were:

§ the Office of the Australian Information Commissioner to the Attorney-General’s portfolio, including responsibility for the Australian Information Commissioner Act 2010

§ the privacy and freedom of information policy function to the Attorney-General’s Department, including responsibility for the Australian Information Commissioner Act 2010, the Freedom of Information Act 1982 and the Privacy Act 1988

§ the Australian Institute of Family Studies to the Families, Housing, Community Services and Indigenous Affairs portfolio, including responsibility for parts of the Family Law Act 1975

§ the Department of Regional Australia, Regional Development and Local Government and its related entity the National Capital Authority to a new portfolio, the Regional Australia, Local Government, Arts and Sport portfolio

The Prime Minister and Cabinet portfolio has a unique and privileged role at the forefront of public and government administration.

As at 30 June 2012, the portfolio comprised one Department of State, one Commonwealth company and seven prescribed agencies.

Department of State

§ Department of the Prime Minister and Cabinet

Commonwealth company

§ National Australia Day Council Limited

Prescribed agencies

§ Australian National Audit Office

§ Australian Public Service Commission

§ National Mental Health Commission

§ Office of National Assessments

§ Office of the Commonwealth Ombudsman

§ Office of the Inspector-General of Intelligence and Security

§ Office of the Official Secretary to the Governor-General

Our Ministers

As at 30 June 2012, the portfolio had the following Ministers and Parliamentary Secretaries:

§ The Hon Julia Gillard MP, Prime Minister

§ Senator the Hon Stephen Conroy, Minister Assisting the Prime Minister on Digital Productivity

§ The Hon Mark Butler MP, Minister Assisting the Prime Minister on Mental Health Reform and Minister for Social Inclusion

The portfolio

3Part 1: Overview


§ Old Parliament House to the Regional Australia, Local Government, Arts and Sport portfolio

§ the national security science and innovation function to the Department of Defence.

New functions transferred to the PM&C portfolio were:

§ the cyber security policy function from the Attorney-General’s Department to the Department of the Prime Minister and Cabinet

§ the National Mental Health Commission, established on 1 January 2012 as an executive agency.

§ responsibility for cultural affairs, including moveable cultural heritage, support for the arts and Indigenous international repatriation, including related entities, to the Regional Australia, Local Government, Arts and Sport portfolio

§ responsibility for sport and recreation, including related entities, to the Regional Australia, Local Government, Arts and Sport portfolio

§ the National Archives of Australia to the Regional Australia, Local Government, Arts and Sport portfolio, including responsibility for the Archives Act 1983

Photo 1.1 Mr Stephen Sedgwick AO, Australian Public Service Commissioner, the Prime Minister the Hon Julia Gillard MP and Dr Ian Watt AO, Secretary of the Department of the Prime Minister and Cabinet at the launch by the Prime Minister of 2012 – The Year Ahead, communicating the priorities of the Government

4 Part 1: Overview


Figure 1.1 PM&C portfolio changes to agencies and functions during 2011–12

From PM&C portfolio To

Attorney-General’s portfolio

Cyber security policy function

National security science and innovation function

Office of the Australian Information Commissioner

Privacy and freedom of information policy function

Department of Regional Australia, Local

Government, Arts and Sport

Arts and cultural development functions

Sports and recreation functions

Old Parliament House

National Archives of Australia

Australian Institute of Family Studies

National Mental Health Commission (new agency)

Defence portfolio

Attorney-General’s portfolio

Regional Australia, Local Government,

Arts and Sport portfolio

Families, Housing, Community Services

and Indigenous Affairs portfolio

5Part 1: Overview


Outcome and program structure

The Department worked to achieve one outcome: Coordination of government activities; policy development; advice and program delivery to support and inform the Prime Minister, the Cabinet and the Cabinet Secretary.

This outcome was supported by two programs: Prime Minister and Cabinet and Official and ceremonial support.

The Department

Figure 1.2 PM&C’s outcome and program structure

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

Program 1.1

Prime Minister and Cabinet

Program component 1.1.1

Domestic policy


National security and international policy


Strategic policy and implementation


Support services and government operations


Commonwealth Heads of Government Meeting 2011

Program 1.2

Official and ceremonial support

This is consistent with the outcome and program structure (see Figure 1.2) and performance targets in the Portfolio Budget Statements 2011–12 and Portfolio Additional Estimates Statements 2011–12. There were no subsequent changes to the performance targets in the reporting period.

6 Part 1: Overview


Domestic Policy Group

The Domestic Policy Group supported the development of economic, environmental, productivity and social policies. We coordinated the Council of Australian Governments (COAG) arrangements, provided advice and support for the Budget process and policy advice in relation to the G20 (including the operational arrangements for Australia’s hosting of G20 in 2014). We also ensured that forward-looking strategic policy was prioritised in the face of the day-to-day demands of government.

National Security and International Policy Group

The National Security and International Policy Group provided advice on Australia’s foreign policy, trade and treaty matters, defence, intelligence, non proliferation, counter-terrorism, law enforcement, border security and emergency management. The Group also played a leadership role in the development of improved information management and integrated whole of government cyber policy.

Governance Group

The Governance Group provided advice on legal policy, parliamentary and government matters, honours policy, and support services to the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries. The Group delivered the Department’s enabling and support functions. The Group oversaw the implementation and ongoing delivery of key programs, policies and initiatives, including the Government’s Australian Public Service reform, delivery and community engagement agendas. In 2011–12, it also delivered administrative and logistical arrangements for the Commonwealth Heads of Government meeting held in Perth in October 2011.

Group structure

A new reporting structure came into effect from 14 May 2012. The key changes were:

§ transfer of the Strategy and Delivery Division to the Domestic Policy Group

§ transfer of functions in the (former) Implementation Division to Government Division (APS reform) and Ministerial Support Division (community engagement)

§ changed reporting arrangements for the Cabinet Implementation Unit

§ transfer of the National Security Chief Information Officer/Cyber Policy Coordinator functions to the Deputy National Security Adviser position

§ changed divisional responsibilities in the National Security Group with information sharing policy transferring to the Defence, Intelligence and Information Sharing Division and cyber policy transferring to the Cyber Policy and Homeland Security Division.

As at 30 June 2012, the Department had three groups: Domestic Policy, National Security and International Policy and Governance. Detail on the role of each Group is provided below. Detail on the executive leadership of each group is provided in the Corporate Governance section of the report (see page 62).

Part 1: Overview


7

PM&C Staff

8 Part 1: Overview


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9Part 1: Overview


From the Secretary

Performance

The Department has had a successful year, responding well and effectively to the challenges and competing priorities that come with a very busy Government agenda, and the particular demands of minority Government, while substantially meeting each of our 2011–12 key performance indicators.

We supported the implementation of the Government’s national security and global engagement priorities. We drove policy solutions to Australia’s domestic challenges, most notably on social and economic policy and were responsible for advice and support on machinery of government and public sector governance across the APS. We also provided advice on the Government’s legislation program, parliamentary matters, ministerial arrangements and legal and constitutional matters.

We worked on high profile issues of national significance, in collaboration with our colleagues across the APS, such as the 2012–13 Budget, the Cyber White Paper, the Australia in the Asian Century White Paper, the National Disability Insurance Scheme (NDIS) Taskforce and the Environmental Regulation Reform Taskforce.

Detail on the breadth and depth of PM&C’s work in 2011–12 is provided in the Department’s report of performance in Part 2 of this report.

Departmental restructure

In 2011–12, the PM&C portfolio underwent significant changes. These included a departmental restructure in May 2012. The restructure enabled us to better align our policy functions with the Prime Minister’s priorities while ensuring we maintained our focus on delivering our core responsibilities. Further detail is at page 6 of this report.

I first worked at the Department of the Prime Minister and Cabinet (PM&C) between March 1994 and March 2001, initially as the First Assistant Secretary of the Economic Division and then as the Deputy Secretary of the Economic, Industry and Resources Group. When I returned to the Department to take up the position of Secretary in September 2011, I found the core business of PM&C largely unchanged. In this respect I agree with Sir Geoffrey Yeend, Secretary of PM&C from 1978 to 1986, who wrote in PM&C’s first Annual Report in 1978–79:

‘The basic functions [of PM&C] do not change; nor does the basic character of the Department, and the intense pressure in working in the forefront of government activity continues.’

During the one hundred and one years that PM&C has supported the government of the day we have developed and honed our core role of providing high quality policy advice and support to the Prime Minister, the Cabinet, our Ministers and the Government. From major policy reform to supporting the Prime Minister’s international visits, our focus remains on what matters most to the Prime Minister, our Ministers and the Government as a whole.

We also take a lead role in the Australian Public Service (APS), helping to make sure that the public service provides the best possible advice to Government, and we do this by organising processes, facilitating dialogue, asking questions and, when required, taking the lead on issues.

10 Part 1: Overview


staff, our clear focus on providing high quality policy advice and support for the Prime Minister and the Cabinet, our flexibility in adapting to the priorities of the day and our understanding and control of government process.

The Review identified a number of ways in which PM&C can improve its practices:

§ by the senior leadership team communicating their expectations of PM&C officers more clearly and more frequently

§ through greater clarity of purpose and all PM&C officers becoming better at knowing what the Review called the ‘PM&C Craft’, which is about working on what matters to Government, about being selective and sensitive in the use of our time and energy and about only getting involved, for example, when an issue is a priority for Government, or when it affects multiple departments and needs central coordination to achieve a good outcome

§ through PM&C taking a more strategic approach to recruitment and the development of our people, particularly by hiring and developing good people managers

§ by continuing to better organise our corporate systems, including our information and communications technology, our human resources and our financial systems.

In 2012–13 we will focus on implementing practical strategies to address these findings and on making them relevant to all staff. I will also be looking beyond PM&C as the findings contain lessons that are applicable to all government agencies.

Further information on the ‘PM&C Craft’ is at Appendix A and the full Capability Review will be released later in 2012.

Finances

Machinery of government changes to the Department over the course of 2011–12 affected our financial structures. These are reflected in the financial statements presented in this report. Transfers of functions to and from the Department occurred relatively seamlessly and our financial management responsibilities were met in full.

People

Our performance was underpinned by the integrity and professionalism of our staff, their expertise and their specialised knowledge and capacity to respond quickly and flexibly. PM&C staff develop their skills, interests and APS careers at the centre of Government and movement of staff between PM&C and the rest of the APS enhances the skill base of both PM&C and the APS as a whole.

We will continue to engage with and develop our people. In 2011–12 the key human resource outcomes were the development of the Human Capital Strategy 2011–2014 and the implementation of the PM&C Enterprise Agreement 2011–14 and supporting employment guidelines.

Improving our organisation

Ahead of the Game: Blueprint for the Reform of Australian Government Administration recommended that all departments undertake a Capability Review.

In 2011–12 PM&C became the first department to undergo a formal, independent review, by a senior team from the Australian Public Service Commission.

The team praised PM&C for its ‘many strengths’ including the commitment and motivation of our

11Part 1: Overview


The year ahead

The next 12 months will be exciting and challenging and our key priorities will be:

§ supporting the Council of Australian Governments (COAG) and its senior officials in progressing the COAG reform agenda in areas such as skills, disability, schools funding and competition and regulatory reform

§ leading and supporting efforts to strengthen the national security community, including implementation of the Independent Review of the Intelligence Community

§ finalising the Australia in the Asian Century White Paper to consider the likely economic and strategic changes in the region and what more can be done to position Australia for the Asian century, and leading its implementation

§ developing the framework for the launch of the NDIS

§ continuing engagement in the G20 Forum and planning for Australia’s hosting of the G20 in 2014

§ implementing the findings of PM&C’s Capability Review.

I have greatly enjoyed my first year as Secretary of the Department and as the head of the APS. That enjoyment reflects the quality of the people I work with and the importance of the issues we are involved in. I look forward to another challenging year in 2012-13, working with my colleagues both in the Department and across the APS.

I J Watt Secretary

Leadership of the APS

As the head of the APS, I have a strong interest in building an APS that is the Australian Government’s first choice for policy advice, policy implementation and program and service delivery. While the APS does not have, and has never had, a monopoly on these services, we must ensure that it is the organisation the Government looks to first and foremost.

To do this we must function as a single APS, engaging early on issues of national significance and working collegiately in teams that go well beyond department and agency boundaries.

As stewards of the APS, the Secretaries of Departments of State lead by example with collegiate and collaborative behaviour. In June 2012 I chaired the annual retreat of the Secretaries’ Board where Secretaries discussed, amongst other issues, our vision for the APS. Arising from this discussion was a set of principles agreed to by all Secretaries that identifies the role and ethos of the APS. The statement, ‘What do we want the Australian public service to be?’, can be found at Appendix B. I think that these ideas are a useful way of thinking about how we should operate as an APS.

By embracing opportunities like the Capability Review, and by adopting the principles referred to above, PM&C in conjunction with all APS agencies can help ensure that we are the source of policy and program advice, implementation and delivery to which the Government turns first.

12 Part 1: Overview


Feature Celebrating PM&C’s First

One Hundred YearsOn Monday 11 July 2011 the Department marked the beginning of its centenary year with the launch of its first official history, From Postbox to Powerhouse.

At a morning tea attended by a large number of PM&C staff and former PM&C Secretaries Michael Codd AC, John Menandue AO and Max Moore-Wilton AC, then Secretary Terry Moran AO congratulated the book’s three authors: Pat Weller, Joanne Scott and Bronwyn Stevens, on the ‘wonderful history’ they had produced and acknowledged the contribution of Ross Laurie, ‘the fourth author’, who passed away during the project.

Mr Moran explained how the book’s title charts the evolution of the Department from a ‘clearing house for correspondence from the Prime Minister to London and the states’ to an agency that plays ‘a crucial role in the Cabinet process and with administrative arrangements and in decisions that affect every corner of the nation’.

In his highly entertaining book review, Senator John Faulkner, representing the Prime Minister, described the history of PM&C as ‘a chronicle of the centrality of government in the life of the Australian community and the good that can be achieved through thoughtful public policy’.

Co-author Professor Pat Weller also gave some insight into the challenge of distilling a hundred years of complex events, controversial debates and colourful personalities into a mere 300 pages.

In a sweet conclusion to proceedings, International Division’s Stephanie Hillman, was awarded first prize in the PM&C Centenary Cake competition.

The centenary was also honoured in true PM&C style on 10 February 2012 when the normally utilitarian surrounds of the PM&C amenities room were transformed into a setting reminiscent of Baz Luhrman’s The Great Gatsby as the Secretary and the Photo 1.2 Senator the Hon. John Faulkner at the launch of the centenary

history of PM&C From Postbox to Powerhouse

13Part 1: Overview


Department’s staff celebrated the centenary by hosting the Prime Minister, the Hon Julia Gillard MP, former Prime Minister, the Hon John Howard AC and a number of former Secretaries.

Both the Prime Minister and Mr Howard spoke warmly of the vital role the Department plays in supporting the leader of the Government of the day. Former Prime Minister, the Hon Bob Hawke AC also sent a message conveying his gratitude to PM&C and paid special tribute to the Ceremonial and Hospitality Branch for their support during his time as Prime Minister.

The gala also marked the official naming of One National Circuit as the Andrew Fisher Building in honour of the man who began his working life in the coal mines of Scotland at the age of ten and went on to serve as Prime Minister of Australia three times between 1908 and 1915.

The Prime Minister acknowledged the ‘powerful legacy’ of Andrew Fisher, including the foundation of the Royal Australian Navy, the Commonwealth Bank and the national capital in Canberra as well as maternity allowances and workers’ compensation for Commonwealth employees. Alongside these significant national reforms, Prime Minister Fisher was also responsible for the creation of a separate Prime Minister’s Department in 1911.

Before the Prime Minister asked Mr Howard to help her unveil the plaque, she reflected that, a hundred years on, ‘The Department plays a central policy development and coordination role across government, realising Andrew Fisher’s vision of an agency that would support the Prime Minister of the day’.

Photo 1.3 Stephanie Hillman with her winning entry in the PM&C Centenary Cake Competition

Part 2:

Performance reportDomestic policy 16

National security and international policy 29

Strategic policy and implementation 38

Support services for government operations 42

Commonwealth Heads of Government Meeting 2011 54

Official and ceremonial support 56

16 Part 2: Performance report


PERFORMANCE REPORT

KPI: High level of satisfaction of the Prime Minister, Cabinet committee chairs, Portfolio Ministers 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.

KPI: High level of satisfaction of the Cabinet committee chairs with timeliness and quality of advice and briefing with respect to the matters coming forward before the committees and administration of the forward program of committee work.

Feedback indicated that the Cabinet committee chairs were satisfied with the quality and timeliness of advice and briefing with respect to matters coming forward before the committees.

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 meetings and ensuring a well coordinated delivery of the broad COAG agenda.

Feedback indicated that the Prime Minister, the Prime Minister’s Office, other departments and the States and Territories were satisfied with the contribution made by the Department to the successful conduct of the August 2011 and April 2012 COAG meetings.

§ Strategy and Delivery Division (see Program component 1.1.3, page 38, for the performance report).

The Australia in the Asian Century Taskforce is a separate unit within the Group.

The COAG Reform Council is an important component of the domestic policy program. It operates independently of the Department, providing objective, credible assessments and reporting on the performance of governments in national reform areas, referred by COAG.

Domestic policy covers a wide range of issues – economic, environmental and social – that have a profound effect on the lives of all Australians.

The Domestic Policy Group comprises five divisions:

§ Social Policy Division

§ Industry, Infrastructure and Environment Division

§ The Office of Work and Family

§ Economic Division

Domestic policy (Program component 1.1.1)

17Part 2: Performance report


§ providing advice and coordination support to the Government and agencies to help deliver the 2012–13 Budget

§ advising on the Clean Energy Future package, including carbon pricing and programs to assist industry, communities and households

§ advising on the Murray-Darling Basin Plan, reform of Australia’s state and federal environmental regulation system and development of a NPA aimed at ensuring a sustainable approach to coal seam gas and coal mining

§ assisting the Department of Broadband, Communications and the Digital Economy (DBCDE) and the Department of Finance and Deregulation (Finance) with implementing the National Broadband Network

§ providing advice on industry structural adjustment issues, including support for the Prime Minister's Taskforce on Manufacturing, and assistance to develop the Skills Reform statement

§ advising the Prime Minister on the National Disability Insurance Scheme (NDIS), including the development of the $1 billion launch sites commitment, funded in the 2012–13 Budget, and the creation of the NDIS Board, chaired by the Secretary and supported by the Commonwealth NDIS Taskforce

§ supporting the Advisory Panel’s release of an issues paper and undertaking comprehensive consultation for the Australia in the Asian Century White Paper.

Highlights 2011–12

This year, the Domestic Policy Group advised the Prime Minister and the Cabinet and worked with departments to progress critical, high-profile policy initiatives, including:

§ establishing the National Mental Health Commission within the PM&C portfolio and supporting the delivery of the COAG agreement on a new $200 million mental health National Partnership Agreement (NPA)

§ supporting the Prime Minister to finalise the National Health Reform Agreement, which was agreed by all States and Territories through COAG in August 2011 and the ongoing implementation of the reforms

§ developing the Government’s social inclusion report, Foundations for a Stronger Fairer Australia, and the National Volunteering Strategy to ensure volunteering is supported

§ working with the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) to finalise the negotiations for a new NPA for Skills Reform

§ working with the Department of Education, Employment and Workplace Relations (DEEWR) on the development of the Living Longer, Living Better aged care reform package announced in the 2012-13 Budget

§ working with DEEWR to deliver the Building Australia’s Future Workforce package

§ delivering and supporting forums chaired by the Prime Minister including the Future Jobs Forum, Business Advisory Forum and the Prime Minister’s Economic Forum

§ supporting the Prime Minister for the G20 summits in France in November 2011 and Mexico in June 2012, as well as supporting the G20 Sherpa for several senior G20 officials’ meetings



Health reform

We supported the Prime Minister in developing and finalising the National Health Reform Agreement, which was agreed by all States and Territories through COAG in August 2011. We continue to co-chair the Health Reform Implementation Group, the peak cross-jurisdictional committee responsible for overseeing implementation of the reforms. Working with the Department of Health and Ageing and the Department of the Treasury (the Treasury), we supported the commencement of new public hospital funding arrangements from 1 July 2012. This included development of consistent legislation in the Commonwealth and the States and Territories to give effect to key elements of the reforms, the establishment of the new National Health Funding Body and the development of a payment system to support the flow of funding to Local Hospital Networks and public hospitals.

Mental health reform

In the 2011–12 Budget, the Government announced a $2.2 billion mental health reform package, designed to improve the lives of those living with mental illness and to promote mental health. We were instrumental in the establishment of Australia’s first National Mental Health Commission, to increase transparency and accountability and to provide national prominence to mental health. The Commission, established as an executive agency in the PM&C portfolio, commenced operation on 1 January 2012. We worked with the States and Territories towards the delivery of two elements of national mental health reform: COAG’s agreement on 13 April 2012 to a new $200 million mental health NPA to address critical service gaps and the development of a 10 year roadmap for reform.

Social Policy Division

The Social Policy Division provides advice to the Prime Minister, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries on significant social policy issues that affect the Australian community, including early childhood and school education, health and ageing programs, arts, sport, employment and immigration.

The Social Policy Division works in an environment of challenging policy reform, requiring detailed policy analysis and implementation oversight, and in many cases detailed negotiation with the States and Territories. In 2011–12, key reform areas spanned aged care, workforce participation, health reform, mental health and school education. We worked with DEEWR to develop the Government’s initial response to the Review of Funding for Schooling and to begin discussions with the States and Territories about Review’s recommendations.

Our role is to support the development, implementation and review of the Government’s social policy agenda. Our advice is developed and informed by consultations with Commonwealth, State and Territory departments, industry and community stakeholders.

As a result of a departmental restructure during 2011–12, the early childhood, schools and youth team joined Social Policy Division and the Division took responsibility for arts and cultural policy. The skills reform and higher education team was relocated to the Industry, Infrastructure and Environment Division and the Indigenous policy team was relocated to the Office of Work and Family.



Schools and early childhood

In 2011–12, we assisted DEEWR in the negotiations of the Empowering Local Schools NPA which provided $475.5 million over seven years (2011-2018) for participating schools to make decisions at a local level. We also worked closely with DEEWR on all early childhood, schools and youth attainment NPAs which drive the Government’s key education reforms to improve young people’s educational outcomes from preschool to post-school transitions to work or further education.

Industry, Infrastructure and Environment Division

Industry, Infrastructure and Environment Division advises the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries on matters relating to industry, innovation, energy, resources, small business, tourism, climate change, the environment, heritage, water, agriculture, fisheries, forestry, customs, skills, research, tertiary education, infrastructure, transport, regional services, regulatory reform, competition and consumer policy, copyright, communications, broadcasting and the digital economy.

Industry, skills and innovation

We worked closely with DIISRTE to finalise the negotiations for a revised National Agreement for Skills and Workforce Development, a new NPA for Skills Reform and a NPA on Training Places for Single and Teenage Parents. We provided high-level advice to the Prime Minister on higher education reforms including the implementation of demand driven funding arrangements for undergraduate university places and the higher education, and maths and science measures announced in the 2012–13 Budget.

Increasing labour force skills and participation

We provided advice to the Prime Minister on measures to ensure that everyone who is able to can participate in the workforce. The Building Australia’s Future Workforce (BAFW) package was a centrepiece of the 2011–12 Budget and included broad-ranging measures to build an educated and skilled workforce and provide opportunities for all Australians to experience the benefits of work. In collaboration with DEEWR, we developed governance and implementation arrangements for delivering and reporting on the BAFW package. In addition, we worked with the Department of Immigration and Citizenship in developing reforms to Australia’s Skilled Migration Program. These reforms will help the program to meet Australia’s economic needs, respond faster to labour market demand and help ensure that the limited skilled migration places go to those who will make the greatest contribution to Australia.

Aged care

On 20 April 2012, the Prime Minister announced a comprehensive package of reforms to build a better, fairer, more sustainable and more nationally consistent aged care system. The $3.7 billion (over five years from 2012–13) Living Longer, Living Better reform package responds to the Productivity Commission’s recommendations and was developed following extensive community and stakeholder consultation. The reforms focus on providing more support and care in the home, better access to residential care for those who need it, more support for people with dementia and a stronger aged care workforce. We led the Department’s involvement, by providing advice to the Prime Minister and ensuring close collaboration across relevant Australian Government agencies throughout the development of the package.



Agriculture, water and the environment

We collaborated with other agencies to secure an Intergovernmental Agreement to build a stronger biosecurity system and to implement the $276 million Tasmanian Forests Intergovernmental Agreement and the five year renewal of the $2.2 billion Caring for Our Country Program.

In 2011–12, Australia announced the intention to create the world's largest network of marine reserves to secure the rich biodiversity of Australian marine life. We worked with the Department of Sustainability, Environment, Water, Population and Communities (SEWPAC) in the development of this policy. We also advised the Prime Minister on the progress of water reform, including the development of the Murray-Darling Basin Plan. In April 2012, we established a Joint Team with SEWPAC, led by PM&C, to implement COAG's commitment to environment regulation reform to streamline and accredit state environment assessment and approval processes under the Environment Protection and Biodiversity Conservation Act 1999. We were also closely involved in the development of a NPA aimed at ensuring a sustainable approach to coal seam gas and coal mining developments.

In consultation with DIISRTE, we worked on the formation of the Prime Minister’s Taskforce on Manufacturing which was established to develop a shared vision for the future of the manufacturing sector and to respond to the challenges facing the industry. We also provided advice to the Prime Minister on industry policy, including on productivity, innovation and structural adjustment issues.

Climate change, energy, infrastructure and communications

We worked closely with other Australian Government agencies to ensure the implementation of the Clean Energy Future package, including carbon pricing and programs to assist industry and households. We also provided advice on climate change adaptation policy, international climate change policy, energy efficiency, energy markets and energy security.

Working with the Department of Infrastructure and Transport and the Department of Regional Australia, Local Government, Arts and Sport, we provided advice on infrastructure, transport and regional policy matters, including infrastructure funding and financing and the development of the next phase of the Nation Building Program and regional policy. In conjunction with DBCDE and Finance, we continued to assist with the development of the National Broadband Network. We also worked alongside other Australian Government agencies to develop initiatives to increase Australia’s digital productivity. We provided secretariat support to the Regional Australia Regional Development Committee of Cabinet.



Social inclusion

During 2011–12, we provided advice to the Prime Minister and the Minister for Social Inclusion and helped to progress the social inclusion agenda across government and the community sector. We provided secretariat support to the Social Policy Social Inclusion Committee of Cabinet.

We assisted agencies to report against the social inclusion strategic change indicators in their annual reports and analysed the impact of disadvantage on social cohesion in Australia. We also monitored and provided advice on the whole-of-government Reliance Framework and the Department of Human Services service delivery reform agenda.

The Foundations for a Stronger Fairer Australia report highlighted the Government’s achievements against the social inclusion agenda since the release of its social policy statement. The report was launched as part of Social Inclusion Week 2011.

We supported the Australian Social Inclusion Board (ASIB) to engage with stakeholders, hold meetings in Canberra, Sydney and Melbourne, undertake site visits to community organisations delivering services to people experiencing disadvantage and meet with community, not-for-profit and government representatives. We also supported the Board in its ongoing measurement and reporting work, which culminated in the release of the Board’s key social inclusion report, How Australia is Faring, in August 2012.

Through our support to the Secretaries’ Committee on Social Policy and the Secretaries’ Committee on Indigenous Affairs we assisted the Secretaries of the Attorney-General’s Department; Education, Employment and Workplace Relations; Families, Housing,

Office of Work and Family

PERFORMANCE REPORT

KPI: High level of satisfaction of the Minister for Social Inclusion with the advice provided in relation to the Government’s Social Inclusion and Not-for-Profit reform agendas.

Feedback indicated that the Minister and his office were satisfied with the advice provided.

KPI: High level of satisfaction of the chairs of the Australian Social Inclusion Board and the Not-for-Profit Sector Reform Council with the quality of support provided by the departmental secretariat.

Feedback indicated that the chairs of the Australian Social Inclusion Board and the Not-for-Profit Sector Reform Council were satisfied with the support provided by the departmental secretariat.

KPI: Number of individuals assisted towards volunteering: Volunteer management

Around 260,000 individuals were assisted towards volunteering in 2011–12.

The Office of Work and Family (OWF) advises the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries on a range of issues including families, seniors, disability, gambling, housing, women, children, disaster recovery, Closing the Gap for Indigenous Australians and service delivery reform. We also support the Prime Minister and the Minister for Social Inclusion on social inclusion priorities, volunteering, social investment, philanthropy and not-for-profit reform.



We supported the Minister for Social Inclusion’s work to advance social enterprise and social innovation in Australia, by developing policy options to encourage the growth of social investment and philanthropy. We led work on a coordinated, whole-of-government approach to social investment, including hosting several roundtables and forums with leading experts in this field. Convening a day-long seminar on social impact measurement in February 2012, we brought together interested stakeholders across Commonwealth and State governments and the not-for profit sector.

In December 2011, we organised the Members of Parliament (MPs) National Volunteer Awards. Over 100 MPs gave awards to volunteers in their electorates to recognise their outstanding contribution to the community. 2011 was the 10th anniversary of the International Year of the Volunteer (IYV10) and award packs included an IYV10 commemorative stamp and coin set.

Early in 2012, we completed a review of the Volunteer Management Program and the Minister for Social Inclusion approved ongoing funding for 50 Volunteer Resource Centres (VRCs) using longer term funding agreements. These agreements use a new short form not-for-profit grant agreement template being piloted by Finance as part of the ‘reducing red tape’ agenda. We worked closely with Finance to develop the template to ensure that the agreements include harmonised activities and performance indicators and help VRCs to support socially inclusive volunteering, in line with the National Volunteering Strategy priorities.

Community Services and Indigenous Affairs; Finance and Deregulation; Health and Ageing; Human Services; Industry, Innovation, Science, Research and Tertiary Education; Regional Australia, Local Government, Arts and Sport; Sustainability, Environment, Water, Population and Communities; and the Treasury, in their consideration of key social policy initiatives and the exchange of ideas relating to cross-portfolio policy priorities.

Following the recommendations from ASIB’s Governance Models for Location-Based Initiatives report released in February 2011, we supported the development and implementation of the Better Futures, Local Solutions Program announced as part of the 2011–12 Budget. The program is trialling new and innovative approaches to tackling disadvantage in 10 Australian communities and aims to bring together government and service providers on the ground to deliver holistic support to disadvantaged job seekers.

Not-for-profit sector

We continued to support the implementation of the National Compact: working together and the not-for-profit reform agenda. The Office supported the Not-for-Profit Sector Reform Council to ensure that the voice of the not-for-profit sector was heard in the development of new regulatory arrangements and other reform priorities. This included: prioritising the production of a Non-Profit Institutions Satellite Account for the 2012–13 financial year; supporting the establishment of the Australian Charities and Not-for-profits Commission as an independent statutory office from 1 October 2012; working to identify opportunities to reduce red tape; and considering the future workforce challenges for the not-for-profit sector.



We jointly chaired an interagency NDIS Taskforce to establish the launch of the NDIS by 2013, comprising representatives from across the Australian Public Service.

Through this work, advice to the Prime Minister on the development of a NDIS culminated in the Government’s funding of $1 billion in the 2012–13 Budget for launch sites across Australia.

Families, social support and Indigenous policy

On 15 February 2012, the Prime Minister presented the Australian Government’s fourth annual report to Parliament on progress to address the Closing the Gap targets. We undertook a whole-of-government assessment of the prospects of achieving each target and advised on priorities for further action.

We continued to work with the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and other agencies on a number of key priorities for the Government, including engagement with the National Congress of Australia’s First Peoples, recognition of Indigenous Australians in the Constitution and native title issues. The review

National Disability Insurance Scheme

In August 2011, the Council of Australian Governments agreed on the need for major reform of disability services in Australia through a National Disability Insurance Scheme (NDIS), which will fundamentally change the nature of disability care and support in Australia.

We have worked closely with the States and Territories to provide advice to COAG on the development of the scheme. In late 2011, we chaired a working group comprising representatives from all First Ministers Departments to develop the high-level principles that all governments have now agreed will guide consideration of the Productivity Commission’s recommendations on NDIS.

As at 30 June, we were providing whole-of-government leadership through the NDIS Board, chaired by the Secretary of PM&C. The Board provides high-level oversight and strategic assurance of scheme design, implementation, and Commonwealth - State relations and reports to the Prime Minister, Minister for Disability Reform, the Treasurer and the Minister for Finance and Deregulation.

Feature Launch of the Social Inclusion ReportTo mark Social Inclusion Week in November 2011, the former Minister for Social Inclusion, the Hon Tanya Plibersek MP, launched a report on the Australian Government’s social inclusion achievements, Foundations for a Stronger, Fairer Australia, at Parliament House.

The report was developed by the Social Inclusion Unit, which worked with other agencies to highlight the whole-of-government progress that has been made in the social inclusion agenda.

The report is available on the social inclusion website at: www.socialinclusion.gov.au.

Photo 2.1 Chair of the Prime Minister’s Social Inclusion Board, Patricia Faulkner AO, and Jonathon Welch AM at the launch of Foundations for a Stronger, Fairer Australia

http://www.socialinclusion.gov.au



In 2011–12, Australia again faced a number of natural disaster events that affected communities across the country, with some experiencing flooding over two consecutive disaster seasons creating significant challenges for reconstruction and recovery. We worked closely with other Commonwealth and State agencies to provide disaster assistance to the States through the Natural Disaster Relief and Recovery Arrangements and direct financial assistance to individuals through the Australian Government Disaster Recovery Payment. We also supported and monitored the ongoing recovery effort from the disaster events of the 2010–11 summer, which devastated Queensland and much of Victoria.

of the National Indigenous Reform Agreement was completed in partnership with agencies and State and Territory governments; it focused on improved measurement and accountability of performance against the Closing the Gap targets.

We provided ongoing advice to the Government on its commitment to address the adverse effects of problem gambling on families and communities.

During the year, we provided advice and support to the Prime Minister to help her highlight the importance of women’s participation in society and the economy, including promoting greater representation of women on government boards. We also assisted in the development of the 2012 Women’s Statement by the Minister for the Status of Women.

Feature PM&C’s Role in the BudgetEvery year, Fiscal and Tax Policy Branch (Fiscal Policy) and the Cabinet Secretariat work in conjunction with the Department of the Treasury, the Department of Finance and Deregulation and agencies across Government to deliver the annual Budget. Our involvement in the Budget process is to provide advice to the Prime Minister, to coordinate policy at a whole-of-government level, and drive policy development and innovation to ensure the delivery of the Government’s high priority initiatives and to support the Government’s consideration of all Budget proposals.

Over several months, Fiscal Policy and the Cabinet Secretariat led the participation of PM&C policy areas and line agencies in the Budget process and supported the effective operation of the Expenditure Review Committee (ERC) of Cabinet. This included providing advice on the overall Budget context; reviewing and advising Ministers on all Budget-related documents; ensuring compliance with the Budget rules and related decisions; and preparing ERC decisions. Every Budget provides specific challenges and this year was no different as the Government worked towards its commitment to return the Budget to surplus. We supported this effort by guiding the development of new policy proposals for consideration through collaboration with portfolios.

On 8 May 2012, Budget Night, this hard work culminated in the Treasurer delivering the Budget to the Parliament. Together after months of toil and long hours in the office, the Fiscal Policy and Cabinet Secretariat teams and other central agency staff were invited to the Cabinet Suite where the Prime Minister, the Treasurer and the Minister for Finance and Deregulation hosted a function to thank staff for their efforts.

Photo 2.2 The Prime Minister the Hon Julia Gillard MP and Dean Thompson from PM&C in the Cabinet suite following the Budget Speech



In conjunction with other areas of the Department we provided policy advice and organisational support to the Prime Minister in hosting high-level events on the Australian economy, namely the Future Jobs Forum, the Business Advisory Forum and the Prime Minister’s Economic Forum. These forums were chaired by the Prime Minister and attended by First Ministers, business CEOs, representatives of Australia’s peak business organisations and union leaders.

Fiscal and tax policy

We worked with the Treasury and Finance, including through the Budget Coordination Committee, to ensure effective coordination and to support senior Ministers’ consideration of all taxation and expenditure policy proposals both during the Budget process and throughout the year. We provided support for the Expenditure Review Committee of Cabinet and integrated advice to the Prime Minister on the fiscal outlook and the associated fiscal strategy.

Within the Department, we engaged in extensive consultation with divisions to ensure they had the information necessary to assess Budget proposals, provided guidance on Budget accounting and presentation of financial information and contributed to the assessment of new policy proposals against other competing Government priorities.

Financial sector

We provided advice on a range of financial sector policies and their implementation, including the ban on mortgage exit fees, the future of financial advice, the financial claims scheme (as part of the competitive and sustainable banking system package),

Economic Division

PERFORMANCE REPORT

KPI: Satisfaction of other central agencies and portfolio departments, with 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.

Feedback indicated that the Department maintained and built upon strong working relationships with other departments, in particular the Treasury, Finance and the Department of Foreign Affairs and Trade to deliver improved outcomes, particularly around the Budget process and the G20.

Economic Division advises the Prime Minister on a range of economic issues affecting Australia, including the Budget, the financial sector, productivity, competition and consumer policy, regulatory reform, the international economy, foreign investment, the G20 and Commonwealth-State relations.

Domestic economy

We continued to play a key role by providing regular advice and analysis to the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries 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, including secretariat support for the Productivity Committee of Cabinet, research and analysis of Australia’s productivity performance and workplace relations policies, notably the Social and Community Services sector pay equity case.



G20

Together with International Division, we supported the Prime Minister and senior Australian Government officials attending G20 summits in Cannes, France in November 2011 and Los Cabos, Mexico in June 2012. Global economic growth and jobs, the euro area crisis and open trade were priority issues for both summits. To prosecute Australia’s economic priorities, we provided strategic economic policy advice on all elements of the G20 agenda, including on country-specific commitments to restore growth and create jobs, increasing the resources of the International Monetary Fund, reform of the global financial system, the advancement of open trade and antiprotectionism and development priorities, including food security.

consumer credit and key reforms in relation to superannuation policy. We also provided policy advice on financial stability reforms, including both the introduction of covered bonds and reforms initiated domestically to complement a large body of global regulatory reforms, particularly those agreed within the G20.

Global economy and foreign investment policy

We continued to monitor and advise on international economic developments, particularly the sovereign debt and banking sector crisis in the euro area and its potential impact on Australia’s economic performance. We also provided policy advice on sensitive and significant foreign investment applications.

Feature Public Service Medal - Ron PerryThe Public Service Medal recognises outstanding service by government employees. In 2011–12 Ron Perry, Head of the COAG Unit in PM&C, received the Public Service Medal for outstanding public service for his work involving the Council of Australian Governments (COAG).

In his current role, Ron has provided first-class service to the Prime Minister, Premiers and Chief Ministers and the President of the Australian Local Government Association. He has also provided excellent service to State, Territory and Commonwealth Governments through long-term contribution to inter-governmental relations and through the secretariat for COAG. His exceptional professionalism, non-partisan and enduring relationships with State and Territory officials have assisted COAG face many demanding challenges.

Ron joined the Department in August 1990 to work on then Prime Minister Hawke’s new federalism initiative, specialising in aspects of micro-economic reform. In late 1995 he was appointed the Commonwealth’s Olympic liaison officer and for over five years he coordinated the Commonwealth’s non-security involvement in the staging of the Sydney 2000 Games. After the Games he worked across a number of policy areas in Industry, Infrastructure and Environment Division before becoming involved in intergovernmental relations work in 2002. In 2009 he was appointed to head the COAG Unit.

Photo 2.3 2011–12 Public Service Medal recipient, Ron Perry



COAG Reform Council

PERFORMANCE REPORT

KPI: High level of satisfaction of the Prime Minister, Premiers and Chief Ministers with the quality of performance assessment and reporting provided by the COAG Reform Council.

Feedback from all jurisdictions indicated a high level of satisfaction with the quality of performance assessment and reporting provided by the COAG Reform Council.

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 2011–12, the Council presented 15 reports to COAG, including reports on the six National Agreements and four reports on NPAs with reward payments.

The Council conducts an annual survey to assess the level of satisfaction of governments across nine key performance indicators (KPIs). In this year’s survey, jurisdictions have again assessed the Council and its work positively, with all indicators scoring at least five out of six. The accessibility and usefulness of the Council’s website, a new KPI this year, received the highest rating.

A full report on the survey results will be contained in the Council’s annual progress report published in October each year. Further information about the Council’s work can be found on its website at www.coagreformcouncil.gov.au.

Outside of the summits, we provided extensive briefing and policy advice to the Prime Minister, drawing on expertise and input from across Government as well as ongoing and regular interaction with officials from other G20 countries.

Council of Australian Governments (COAG)

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. During 2011–12, we supported a number of COAG related activities, including:

§ two meetings of COAG, the inaugural meeting of the Business Advisory Forum and nine senior officials meetings and videoconferences

§ the development a number of intergovernmental agreements including:

�� the NPA on Mental Health Reform

�� the NPA on Skills Reform

�� the NPA on Rewards for Great Teachers

§ coordinating responses to 11 COAG Reform Council reports

§ working with the Steering Committee for the Review of Government Services Provision, the COAG Reform Council and the Productivity Commission to facilitate the monitoring and assessment of the COAG Reform Agenda

§ coordinating the reviews of the performance frameworks of the six National Agreements and the NPA on Homelessness

§ coordinating whole-of-government responses to the Senate Select Committee on the Future of the Australian Federation and the Joint Committee of Public Accounts and Audit’s Inquiry into National Funding Agreements.

http://www.coagreformcouncil.gov.au



The Taskforce and Advisory Panel undertook an extensive consultation process throughout Australia and in the region to discuss the White Paper with representatives from industry, academia, community groups and State, Territory and foreign governments. Members of the Taskforce travelled to every State and Territory in Australia and internationally to Indonesia, India, Singapore, China and Japan.

The consultation process also included extensive engagement with the public through online channels, including blogs, forums and competitions hosted by popular existing websites such as The Conversation, The Interpreter (run by the Lowy Institute), the East Asia Forum and the Australian Institute of International Affairs.

Australia in the Asian Century Taskforce

The Prime Minister announced the development of the Australia in the Asian Century White Paper on 28 September 2011. The White Paper will be a comprehensive review of economic and strategic change in Asia and its implications for Australia and will set out a blueprint for Australia to navigate the opportunities and challenges of the Asian century. The principles set out in the White Paper will guide policy development to 2025 in domestic economic and social policy as well as foreign policy.

A cross-agency Taskforce was established in PM&C to support the Prime Minister, a dedicated committee of Cabinet and an Advisory Panel in preparing the White Paper. The Taskforce has worked collaboratively with agencies across government to develop policy and draft text for the White Paper.

Supported by the Taskforce, the Advisory Panel released an issues paper on 17 December 2011 that set out a series of questions to prompt discussion and generate submissions to the White Paper. At 30 June 2012, over 270 submissions had been received, discussing issues such as the rise of Asia, Australia’s Asia-relevant capabilities, people-to-people links and Australia’s competitiveness.



§ worked to develop the Cyber White Paper, which will provide a strategic blueprint for ensuring Australia can maximise the benefits and minimise the risks of the digital age

§ supporting the Prime Minister’s leadership of Australia’s engagement with Afghanistan

PERFORMANCE REPORT

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.

Feedback from the Prime Minister, relevant Ministers and senior officials indicated satisfaction with the timeliness and quality of advice provided and the achievement of key tasks.

KPI: Advancement of the Government’s international priorities that promote Australia’s security, prosperity, international profile and influence.

The Prime Minister and the Prime Minister’s Office indicated satisfaction with the support provided in advancing the Government’s international priorities.

KPI: Successful development and whole-of-government integration of foreign and international security strategies as required by the Government.

Feedback indicated that the Department successfully co-ordinated the development and provision of whole-of-government advice for the Government on foreign and international security strategies.


The group comprises three divisions:

§ Cyber Policy and Homeland Security Division

§ Defence, Intelligence and Information Sharing Division

§ International Division.

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

§ plays a leadership role in the development of improved information management and integrated, whole-of-government cyber policy.

National security and international policy (Program component 1.1.2)

In 2011–12, the National Security and International Policy Group was involved in advising the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries and working with departments to progress a number of important and often high-profile national security and international policy initiatives, including:



§ promoting Australia’s candidacy for a non-permanent seat on the United Nations Security Council for the 2013–14 term by supporting the Prime Minister’s personal advocacy of Australia’s credentials with world leaders, including at major multilateral and regional summits

§ supporting the Prime Minister’s role as Chair-in-Office of the Commonwealth at CHOGM 2011 in Perth by achieving strong outcomes on food security, polio vaccinations, building resilient states and Commonwealth reform

§ bolstering Trans-Tasman ties by developing policy outcomes from and support for, the Prime Minister’s hosting of the annual Australia-New Zealand Leaders’ Meeting in January 2012

§ strengthening multilateral cooperation to address global challenges, including through leader-level engagement, supporting the Prime Minister’s attendance at the Nuclear Security Summit in Seoul in March 2012 and the Prime Minister’s participation in the United Nations Conference on Sustainable Development (Rio+20) in June 2012.

§ delivering the National Security Adviser’s Senior Leadership Forum to over 250 national security senior officials from 23 Commonwealth, State and Territory agencies

§ overseeing implementation of the Independent Review of the Intelligence Community

§ working with Economic Division to promote a coordinated international response to global economic challenges through supporting the Prime Minister’s engagement in, and policy outcomes from, the G20 Summits in Cannes in November 2011 and Los Cabos in June 2012, and providing early advice for the G20 in 2014

§ enhancing Australia’s ties with key regional partners through policy coordination of whole-of-government engagement with China, India and Japan; supporting visits by the Prime Minister to Indonesia in November 2011 for the inaugural leaders’ meeting, South Korea in March 2012 and Singapore in April 2012; and also supporting the Prime Minister’s meetings with visiting leaders

§ deepening Australia’s regional engagement by leading policy development to support the Prime Minister’s attendance at the East Asia Summit in Bali in November 2011, the APEC Leaders Meeting in Honolulu in November 2011 and the 40th Pacific Islands Forum in Wellington in September 2011

§ helping strengthen Australia’s security alliance with the United States by supporting the Prime Minister’s hosting of United States President Barack Obama’s visit to Australia in November 2011, during which the Prime Minister announced enhanced defence cooperation with the US

Photo 2.4 The Prime Minister visiting the Gyesong Catholic Girls High School in Seoul in March 2012



PERFORMANCE REPORT

KPI: Effective whole-of-government responses to major national security related crises or emergencies.

Feedback indicated that the Department provided effective whole-of-government responses to major national security-related crises or emergencies.

KPI: Satisfaction of the National Counter-Terrorism Committee (NCTC) with secretariat support provided to the committee.

Informal feedback indicated that NCTC members were satisfied with the support provided.

KPI: Successful strategic leadership and coordination of a whole-of-government approach to cyber policy, including cyber security policy (transferred from the Attorney-General’s Department by the Administrative Arrangements Order of 14 December 2011).

The transfer of responsibility for cyber security policy ensures central governance and has enhanced the Department’s ability to successfully lead, coordinate and implement whole-of-government cyber policy.

KPI: Successful delivery of the Cyber White Paper.

We undertook extensive public consultation throughout 2011–12 and worked to develop Australia’s first Cyber White Paper, which is expected to be delivered in the coming months.

Cyber Policy and Homeland Security Division

The Cyber Policy and Homeland Security Division advises the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries on integrated, whole-of-government policy, priorities and strategy in the areas of national security, cyber, critical infrastructure protection, counter-terrorism, law enforcement, border security and emergency management issues. We provided advice on, and coordinated the development of, whole-of-government national security policies responding to natural disasters in Australia and also in relationship to continuing efforts to manage our borders and further enhancing the cohesiveness of Australia’s national security community.

Cyber policy

A key focus was the work we undertook to develop the Cyber White Paper, expected to be publicly released in the coming months, which will provide a strategic blueprint to ensure Australia is well positioned to maximise the benefits and opportunities and minimise the risks of the digital age. We also coordinated and delivered the first Cyber Defence University Challenge to boost the profile of cyber security as a profession among Australian university students.

Counter-terrorism

We provided policy advice on, and coordination of, the Department’s involvement with a range of counter-terrorism matters, including coordination of our involvement in counter-terrorism court cases, terrorism listings, international counter-terrorism engagement, operational priorities and responses to international incidents.



We provided policy advice on, and coordinated the arrangements of, incorporating New Zealand as a member of the NCTC and the NEMC, to ensure close coordination on counter-terrorism and emergency management policy between our two countries.

National security

We supported the National Security Policy Coordination Group (NSPCG), chaired by the Deputy National Security Adviser. Meeting every two months, the NSPCG considered a range of strategic security issues, including updates to the Cyber White Paper and the Pacific Maritime Security Program.

Border protection

We successfully led the coordination and provision of advice to the Prime Minister on border protection policy issues, both onshore and offshore. We provided secretariat support to a senior level multi-agency taskforce, chaired by the National Security Adviser.

During the year, we coordinated and supported the whole-of-government development of border control policies, taking account of Australia’s humanitarian obligations, work within the Bali Process and the Regional Cooperation Framework.

We supported the NCTC in its role to contribute to the security of the Australian community through the coordination of a nation-wide cooperative framework to counter terrorism and its consequences. This included supporting NCTC meetings in December 2011 and May 2012 and four meetings of the NCTC’s Capability Steering Group. We also coordinated a review of the NCTC to streamline its organisation and processes, supported the implementation of the outcomes of the 2011 NCTC Triennial Review of the National Counter-Terrorism Arrangements and coordinated a range of out-of-session NCTC business.

We facilitated the tabling by the Independent National Security Legislation Monitor (INSLM), Mr Bret Walker SC, of his first annual report to Parliament on 18 March 2012. The INSLM’s role is to review the operation, effectiveness and implications of Australia’s national security and counter-terrorism legislation on an ongoing basis.

Emergency management

We continued to support the Deputy National Security Adviser in co-chairing the National Emergency Management Committee (NEMC), which implemented important initiatives such as flood mapping, risk policy and land use planning and building codes.

During January to March 2012, we helped to coordinate delivery of Commonwealth assistance to people affected by severe flooding in New South Wales, Victoria and Queensland. We also established a departmental crisis capability, which may be activated to provide whole-of-government coordination and advice during extreme crisis.



Feature Cyber Defence University

Challenge The inaugural Cyber Defence University Challenge was held on 3 to 4 April 2012. PM&C coordinated the Challenge with assistance from Telstra and other Australian Government departments and Australian universities. This initiative stemmed from work undertaken during the development of the Cyber White Paper and in recognition that Australia has a shortage of IT security professionals.

The Challenge tested the cyber security problem-solving skills of Australian undergraduate teams, utilising an online scenario which required participants to identify IT vulnerabilities within a fictitious business and develop solutions to the problems they discovered.

Courtesy of Telstra, the four members of the triumphant University of New South Wales team will travel to, and participate in, the 2012 Black Hat Conference in Las Vegas. Congratulations also go to Edith Cowan University (WA) in second place and the Australian National University (ACT), which came third.

The Challenge received overwhelmingly positive feedback. It certainly achieved its aims of helping raise public awareness of cyber issues in Australia as well as highlighting career opportunities to encourage the development of Australian graduates in ICT fields, particularly cyber security.

The Challenge is a positive example of government, industry and academia collaborating to overcome the challenges that are associated with being a modern digital economy. Such partnerships are the cornerstone to securing Australia’s digital future.

Photo 2.5 The PM&C team behind the 2012 Cyber Defence University Challenge



PERFORMANCE REPORT

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.

Informal feedback indicated that the Department successfully coordinated the national security community and contributed to enhanced information sharing, collaboration and cooperation. The implementation of initiatives under the Homeland and Border Security Review (the Smith Review) was completed in 2010-11.

KPI: High level of satisfaction of the Prime Minister with advice in relation to the progress of and challenges, risks and opportunities regarding Defence operations, Force 2030 and the Strategic Reform Program.

Feedback indicated the Prime Minister’s satisfaction with advice provided on priority matters in the Defence portfolio, including the Australian Defence Force’s overseas and domestic operational commitments, implementing the Defence White Paper 2009: Force 2030 and the Strategic Reform Program.

KPI: Successful leadership and coordination of the national intelligence community, including enhanced levels of cooperation and interoperability across the community, leading to provision of valuable intelligence support to government.

The Department provided coordination of the national intelligence community, including enhanced levels of intelligence cooperation and support through the PM&C-led National Intelligence Coordination Committee.

KPI: Successful conclusion of the 2011 Independent Review of the Intelligence Community and the provision of high quality advice to the Government on its recommendations and on implementation issues.

The Department supported the Independent Review of the Intelligence Community which was successfully concluded in August 2011, by providing advice to the Government on the recommendations of the Review and continuing to oversee their implementation.

Defence, Intelligence and Information Sharing Division

The Defence, Intelligence and Information Sharing Division provides coordination and integrated policy advice in the areas of defence,

intelligence coordination and cooperation matters, national security and a secure, coordinated and effective national security information management environment.



We led the Department’s consideration of the following complex issues involving a broad range of interests and agencies:

§ national security aspects of space policy

§ establishment of the Australian Civilian Corps through the Australian Civilian Corps Act 2011

§ progress into the Review of the Woomera Prohibited Area

§ ADF gender restrictions.

Intelligence policy

The Independent Review of the Intelligence Community reported in August 2011. We played a key role in supporting the Government’s response to the review including the provision of advice to the Government on its findings and the implementation of its recommendations. We continue to play a role in managing and overseeing implementation and integrating the recommendations into ongoing activities to ensure the national intelligence community functions effectively, efficiency and with clarity and purpose.

We also encouraged further integration of foreign, security and law enforcement intelligence coordination, cooperation and activities through the National Intelligence Coordination Committee (NICC). We supported the NICC, which is now the primary forum for the expanded national intelligence community’s structural development and coordination, through the National Security Adviser as chair of the NICC and by providing secretariat functions.

On intelligence-related policy issues including data management and legislative proposals, we provided support and worked closely with the Office of the Inspector-General of Intelligence and Security.

Defence policy

We supported the Prime Minister’s consideration of major defence issues – most significantly those relating to Department of Defence (Defence) operations and major capital acquisitions, including:

§ supporting the Government’s consideration of transition planning for operations in Afghanistan, East Timor and the Solomon Islands

§ supporting the Government’s consideration of a significant number of decisions in relation to major capital acquisitions, including key decisions in the $7.5 billion vehicle replacement project for the Army (Project Overlander), a replacement platform for maritime patrol and response and $214 million for initial studies into the design and construction of Australia’s future submarines

§ advising on defence reviews including the US Global Force Posture Review, the ADF Force Posture Review and the United States’ review of Global Force Posture

§ working closely with other central agencies and Defence to ensure the quality and rigour of advice to Government.

We supported the Secretary’s participation in the Secretaries’ Committee on National Security, the Defence Strategic Reform Advisory Board and other strategic forums relating to defence. We also supported the Deputy National Security Advisor as Chair of the Strategic Policy Coordination Group.



International Division

International Division provides the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries with integrated policy advice on Australia’s key foreign trade, aid and treaty priorities.

Global economy

We worked collaboratively in supporting the Prime Minister’s efforts to promote a coordinated international response to fragility in the global economy and to promote Australian priorities through her participation in the G20 Summits in Cannes in November 2011 and Los Cabos in June 2012.

Afghanistan

We coordinated policy advice to the Prime Minister and the Cabinet to support decision making on the future of Australia’s engagement with Afghanistan as the international community’s role in the country evolves and security responsibility is progressively handed over to the Afghan National Security Forces (ANSF) by 2014.

We also supported the Prime Minister’s visits to Afghanistan in November 2011 and to Chicago for the North Atlantic Treaty Organisation

National security policy and planning framework

We successfully delivered the National Security Adviser’s Senior Leadership Forum, where the participants from a number of Government agencies noted the benefits of collaborating on strategic issues and challenges. We are also developing the next National Security Statement, which the Prime Minister intends to deliver in 2012.

We continued to work on ways to improve the processes supporting and integrating the National Security Strategic Policy Framework. This includes updating Australia’s national security priorities, continuing to improve the Coordinated National Security Budget process and developing a risk-based approach to national security policy and planning.

Information sharing

In 2011–12, the national security community made positive progress in dealing with cultural, policy and technical barriers to information sharing to ensure the right people receive the correct information at the right time to help them make the best possible decisions.

Consistent with our strategic objectives of driving efficient information-sharing through improved governance, strengthening trust, creating wide-ranging secure communications links, building capabilities and enhancing collaboration, we continue to work with the national security community to deliver the key third-year milestones in the National Security Information Environment Roadmap: 2020 Vision and to further strengthen secure and appropriate information sharing with allied partners.

Photo 2.6 The Prime Minister and Afghan President Karzai sign the Australia-Afghanistan Comprehensive Long-Term Partnership in Chicago on 20 May 2012



September 2011 and pursuit of initiatives from PIF including increased support for climate change mitigation, education, health, labour mobility and fisheries

§ the Prime Minister’s visit to Turkey in April 2012, including for her meeting with her Turkish counterpart, Recep Tayyip Erdoğan, participation in the dawn service at Gallipoli’s historic Anzac Cove and attendance at services at the Australian war memorial in Lone Pine and the New Zealand memorial at Chunuk Bair

§ the Prime Minister’s meeting in Brazil with her counterpart, President Rousseff – the first visit by a leader in either direction – during which a strategic partnership was launched.

Efforts to promote progress on key global issues, such as sustainable development, green growth and food security, were a strong focus at the United Nations Conference on Sustainable Development (Rio+20) in Brazil in June 2012, where we supported the Prime Minister’s push for strong outcomes on oceans and sustainable development goals, both of which were included in the Summit outcomes document.

We continued to play a key role in supporting the Prime Minister’s advocacy on Australia’s candidacy for a non-permanent seat on the United Nations Security Council for the 2013–14 term, including in her meetings with international leaders during bilateral visits and major multilateral meetings.

Nuclear security and non-proliferation

We provided policy advice regarding nuclear non-proliferation and disarmament. A highlight was supporting the Prime Minister’s participation in the Nuclear Security Summit in Seoul in March 2012, reinforcing Australia’s strong reputation on nuclear security and pressing for further global action to secure nuclear facilities and material.

meeting and the International Security Assistance Force Summit in May 2012 where key decisions were made regarding transition in Afghanistan and sustainment of the ANSF.

Bilateral and regional engagement

We supported the Prime Minister’s activities in advancing Australia’s relationships with key Asian countries and whole-of-government engagement with vital regional partners, including India, China, Japan and Indonesia. In 2011–12 we assisted with:

§ the Prime Minister’s hosting of visits by the leaders of Thailand and East Timor

§ the inaugural Indonesia-Australia Leaders’ Meeting between the Prime Minister and Indonesian President Yudhoyono in Bali in November 2011

§ a Prime Ministerial visit to South Korea in March 2011, which included a meeting with President Lee Myung-bak, a speech on Australia in the Asian Century at Yonsei University and participation in an e-classroom link between Australian and Korean students using the National Broadband Network

§ the Prime Minister’s attendance at the East Asia Summit in Bali in November 2011 and her participation in the APEC Leaders’ Meeting in Honolulu.

We also supported other key areas of engagement through direct support and coordination of:

§ the Prime Minister’s hosting of President Barack Obama’s visit to Australia in November 2011

§ the annual Australia-New Zealand Leaders’ Meeting and a joint meeting of Australian and New Zealand Cabinet Ministers in Melbourne in January 2012

§ the Prime Minister’s attendance at the 40th Pacific Islands Forum (PIF) in Wellington in



§ developing a better practice guide for Practical place-based initiatives

§ introducing a new reporting process and methodology to enable a greater level of data and analysis on future delivery confidence as well as enhancing the reporting capability for implementation exercises.

Strategy and Delivery Division

The Strategy and Delivery Division develops strategic policy advice for the Government, identifies long-term strategic issues and undertakes projects on complex public policy challenges. The Division provides high-quality strategic policy advice to the Prime Minister, the Cabinet, Cabinet committee chairs, Portfolio Ministers and Parliamentary Secretaries and the Secretary by working closely with divisions within PM&C and other Australian Government agencies.

This year, issues we were involved in included:

§ a range of emerging policy priorities and challenges such as service systems, education and economic policy

§ developing reforms to improve the delivery and implementation of government policies, programs and services

§ strengthening our environment scanning capacity, including through the preparation of papers on emerging issues

§ convening the Strategic Policy Network to support a forum for discussion and sharing of strategic policy better practice and lessons learned, including the use of the online strategic policy toolkit

§ establishing and convening the ‘What’s Next?’ monthly seminar series for PM&C staff to discuss emerging strategic policy ideas and insights with guest speakers.

The strategic policy and implementation program 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.

Following a departmental restructure in May 2012 the strategic policy component of the program was delivered by the Strategy and Delivery Division within the Domestic Policy Group and the implementation component administered by the Cabinet Implementation Unit was moved to the Governance Group.

PERFORMANCE REPORT

KPI: High level of satisfaction of the Prime Minister with the quality, accuracy and timeliness of advice and achievement of key tasks.

Feedback from the Prime Minister and the Prime Minister’s Office indicated that the work of the strategic policy and implementation areas was valued and provided effective management of implementation planning and robust monitoring of the delivery progress of the Government’s key priorities.


In 2011–12, the strategic policy and implementation program was involved in:

§ strengthening our environment scanning capability and working with the Australian Public Service Commission (APSC) in supporting an APS200 horizon scanning workshop held in May 2012 to further enhance strategic capability

§ extending the Strategic Policy Network to include learning and development opportunities for Executive Level and other staff from across the Australian Public Service (APS)

Strategic policy and implementation (Program component 1.1.3)



What’s Next? seminar series

The seminar series supports the development of strategic capability in the Department and encourages staff to consider a range of perspectives of the nation’s strategic policy agenda. The questions posed are: what should PM&C be thinking about when advising the Government about strategic policy? what is or should be next for the Government? Speakers include former State Premiers, academics and policy experts from universities and think tanks and social justice advocates. Follow-up discussions between the speaker and relevant policy areas within the Department further increase this engagement. The series has been very well attended. Informal feedback from staff indicates that the seminar series has stimulated useful debate and insights about strategic policy across the Department.

PM&C Practical place-based initiatives: a better practice guide

The PM&C Practical place-based initiatives: a better practice guide, launched 7 March 2012, explored a range of Commonwealth, State and local government programs in relation to their level of local community involvement in design and delivery. We drew together a practical focused understanding of place-based initiatives using existing research and reviews of successful and unsuccessful initiatives, along with interviews of more than 130 public officials, practitioners and academics. A better practice guide was then developed for Commonwealth officers, including five essential components for effective place-based initiatives: understand the place, partner with the community, get governments working together, empower people on the ground and make change stick.

Feature Homelessness – delivering

cross-agency policy outcomes In 2011–12, we worked with the Department of Families, Housing, Community Services and Indigenous Affairs as well as other Australian Government departments and agencies to develop an innovative framework to address the cross-portfolio challenges presented by homelessness.

Homelessness is a difficult and complex issue, a policy challenge with multiple interrelated causes. The Government’s 2008 White Paper, The Road Home: A National Approach to Reducing Homelessness, listed some of the factors that contribute to homelessness, including domestic violence, a shortage of affordable housing, unemployment, mental illness, family breakdown and drug and alcohol abuse. In The Road Home, the Government committed to halving the overall rate of homelessness by 2020 and offering accommodation to all rough sleepers who need it by 2020. Recognising the cross-agency complexity involved, PM&C worked with multiple departments to develop an innovative framework that facilitated cross-portfolio collaboration and better supported the Government in meeting its homelessness goals. The Department identified shared goals and individual priorities and developed a governance structure that tracked outcomes, helping to improve cooperation between a wide range of agencies in areas as diverse as housing supply, education and employment services, healthcare provision and mental health services.

These arrangements will provide an ongoing focus on the key milestones and progress measures necessary to implement the Government’s strategies for reducing homelessness.



§ developed a number of external communication products on implementation including a new edition of the PM&C Guide to Implementation Planning

§ conducted interviews with Deputy Secretaries across all departments in order to identify areas of specific implementation expertise and skills that could be deployed or applied on existing or future implementation tasks

§ introduced a new reporting process and methodology to enable a greater level of data and analysis on future delivery confidence as well as enhancing predictive capability to know when implementation exercises may be heading off track

§ through the APSC, assisted in the development of the SES Leadership Development Framework to ensure a strong focus on implementation and delivery capability

§ presented to the SES cohorts of 15 portfolios on implementation planning, reporting, new Cabinet requirements and the new mechanisms in place to share implementation expertise and skills across the APS

§ held four meetings of the APS Policy Implementation Network and hosted several special meetings that included high-profile guest speakers such as Sir Gus O’Donnell (then Head of the UK Civil Service) and Mr David Pitchford (Executive Director of the UK Major Projects Authority)

§ in close collaboration with portfolios, conducted a range of in-depth implementation assessments of specific initiatives and provided advice to the Prime Minister on recommended actions to improve delivery confidence.

Cabinet Implementation Unit

The Cabinet Implementation Unit (CIU) assists the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries on the implementation and delivery of the Government’s strategic priorities. This includes providing the Prime Minister and the Cabinet with regular progress reports and working across Government to ensure that key Government decisions are implemented on time, on budget and to expectations.

During 2011–12, we worked with portfolios and the States and Territories to provide COAG with two reports on the implementation status of major COAG initiatives and decisions.

A significant focus over the past year has been on:

§ integrating implementation and delivery planning into the Cabinet decision making process to ensure that all complex and challenging policy proposals considered by the Cabinet have comprehensive implementation plans and delivery advice attached

§ seeking to work with portfolios on promulgating implementation best practice and sharing implementation and delivery expertise and skills across the APS, including through the strong engagement and practical use of the APS Policy Implementation Network.

During 2011–12, we also:

§ provided direct support in nine implementation exercises including Building Australia’s Future Workforce, the Clean Energy Futures Package and Stronger Futures in the Northern Territory



to the large number of key priorities which require intensive cross-portfolio collaboration as well as developing further implementation resources for use across the APS.

Looking ahead, we will continue to drive strengthened implementation and delivery capacity across the APS through our unique view across the delivery agenda of Government. We will allocate significant time and resources

Feature A stronger Cabinet

Implementation UnitIn response to Ahead of the Game: Blueprint for the Reform of Australian Government Administration the role of the Cabinet Implementation Unit (CIU) was strengthened to better address two key tasks: the improvement of policy implementation and the introduction of shared outcomes across portfolios.

Good policy implementation is just as important as good policy development. Many of the Government’s key initiatives involve five portfolios or more and the majority require intensive cross-portfolio collaboration. To deliver services to the Australian people, portfolios must work together as one APS, cooperating and collaborating on design, planning and implementation.

For all complex policy proposals presented to the Cabinet, the CIU now ensures that implementation challenges are identified and addressed through comprehensive planning.

Enhancing collaboration: We work with PM&C divisions and other departments and agencies to bring the right players together at the right time, from policy design, planning and execution to monitoring implementation.

Building capability: Leveraging a unique view across the Government’s delivery agenda, we connect pockets of implementation expertise across Government, helping agencies to help each other, systematically identifying implementation challenges at an early stage and working with agencies to develop strategies or advice to the Cabinet to overcome these challenges.

Reporting, monitoring and acting: We report to the Prime Minister and the Cabinet on the progress of the Government’s most significant priorities, including providing early warning of potential problems and ensuring that they are addressed. In 2011–12 we invested in improving our predictive capability (to know when implementation exercises may be heading off track) and in building a culture of asking for help and involving others.

Photo 2.7 The Cabinet Implementation Unit



§ working collaboratively across policy and community engagement areas, and with other areas of PM&C, to organise a number of high profile events hosted by the Prime Minister: the Future Jobs Forum, the Business Advisory Forum and the Prime Minister’s Economic Forum

§ streamlining reporting on the handling of ministerial items (briefs and correspondence) to ensure an increased focus on meeting deadlines within the Department, which has resulted in improvements in the timeliness of work delivered to the Prime Minister and other Portfolio Ministers

§ continuing development of a Public Interest Disclosure Bill on whistle-blower protection in the Commonwealth public sector

§ managing a significant increase in freedom of information (FOI) activity - the Department and Portfolio Ministers receiving 208 FOI requests in 2011–12 (20 per cent more than in 2010–11) - and resolving 129 requests in 2011–12 (39 per cent more than in 2010–11)

§ coordinating the Government legislation program by preparing 18 briefs to the Prime Minister on Private Members’ business, 210 legislation submissions to the Parliamentary Secretary to the Prime Minister, and issuing 11 legislation circulars to departments and agencies

§ providing advice leading to the establishment of two new medals in the Australian honours system (the National Emergency Medal and the Australian Operational Service Medal) and the extension of eligibility for the Police Overseas Service Medal

§ contributing to the preparation of advice to Government in relation to the High Court challenge to the National School Chaplaincy Program.

Support services for government operations are provided by Government Division, Ministerial Support Division and Cabinet Division within the Governance Group.

PERFORMANCE REPORT

KPI: High level of satisfaction of the Cabinet and its committees, the Prime Minister, Portfolio Ministers and Parliamentary Secretaries, the Governor-General and Federal Executive Council 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.

KPI: High level of satisfaction of other stakeholders with liaison, advice and assistance.

Informal feedback indicated a high level of satisfaction for the advice, support and training provided to other stakeholders, including Government departments and agencies.


This year the Department supported the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries by:

§ receiving, registering, tracking and analysing 155,000 items of incoming correspondence for the Prime Minister and Portfolio Ministers

§ delivering 3,604 departmental briefings to the Prime Minister and Portfolio Ministers

§ supporting five Community Cabinet meetings, involving around 1,600 registered attendees, an average of 44 ministerial meetings at each event and 14 questions asked at each public forum

Support services for government operations (Program component 1.1.4)



We also supported the Prime Minister in implementing machinery of government changes, through the preparation of amendments to the Administrative Arrangements Order for consideration by the Governor-General. We provided support for the implementation of changes to the Ministry and provided advice on a range of remuneration and governance issues.

Legal policy matters

We contributed to whole-of-government advice to the Prime Minister and others on a broad range of legal policies and issues, including human rights, Federal courts and Commonwealth legal services matters. In coordinating and progressing the portfolio’s legislation program, we also prepared advice for Portfolio Ministers.

We continued working on the development of legislation on public interest disclosures in the Commonwealth public sector, announced by the Government in March 2010. This included working with the Office of Parliamentary Counsel and other government agencies and providing advice to the Minister for the Public Service and Integrity.

During the year we provided policy advice to Portfolio Ministers on a number of constitutional and electoral matters. This included advice on the implementation of reforms to the rules of royal succession that were agreed to by the leaders of the realms (the 16 nations of which The Queen is Head of State) in October 2011, which will allow for succession regardless of gender and remove the bar on succession for persons who marry a Catholic.

Government Division

Government Division is responsible for advice and support on the machinery of government and in providing advice on public sector governance across the Australian Public Service. 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, 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.

PERFORMANCE REPORT

KPI: High level of satisfaction of Portfolio Ministers with advice and support on policies relating to certain legislation.

Informal feedback indicated that Portfolio Ministers were satisfied with the support and the range of associated reports, advice and products provided.

Parliamentary and government matters

We provided support to the Prime Minister, the Parliamentary Secretary to the Prime Minister, the Leader of the House and the Manager of Government Business in the Senate in coordinating the Government’s legislation program, including preparation of material for meetings of the Parliamentary Business Committee, and managing the legislation approval process. We also supported the approval of legislation for introduction in the Parliament and provided briefing for the Prime Minister on private Members’ business.



In response to that decision, on 26 June 2012 the Government introduced the Financial Framework Legislation Amendment Bill (No.3) 2012. The Financial Framework Legislation Amendment Act (No.3) 2012 commenced on 28 June 2012 and provides legislative authority covering over 450 grants and programs.

We coordinated the processing of FOI applications to the Department and Portfolio Ministers and provided advice to FOI decision-makers for these applications. We also coordinated FOI consultation requests from other agencies, particularly concerning the Cabinet document exemption. We issued FOI Guidance Notes in July 2011 to assist agencies when considering the Cabinet document exemption and the deliberative document exemption. These are available at: www.dpmc.gov.au/foi and www.ag.gov.au/Freedomofinformation.

We were the respondent in, or contributed to, the following FOI-related proceedings:

§ in August 2011, in the matter of Re Philip Morris Limited and Prime Minister [2011] AATA 556, the Administrative Appeals Tribunal (AAT) affirmed a decision by an FOI decision-maker in the Prime Minister’s Office to exempt documents from release on a request relating to plain packaging of tobacco

§ in November 2011, Philip Morris Limited withdrew an application for review by the AAT of a decision by the Department to exempt documents from release on a request relating to plain packaging of tobacco. As a result of the withdrawal, the AAT dismissed the application without proceeding to a review of the Department’s decision.

Legal proceedings

We assisted with the Department’s response to court-ordered discovery obligations, including instructing on the Commonwealth’s defence to a challenge to public interest immunity claims in Spencer v Commonwealth of Australia & Anor (ACD24/2007). The applicant in that case challenged claims made by the Commonwealth that a number of documents did not have to be produced to the applicant because they were privileged on the grounds of public interest immunity as the documents revealed or tended to reveal Cabinet deliberations. The challenge was the subject of hearings before the Federal Court on 20 April and 7 June 2012. On 7 June, the Federal Court upheld in full the Commonwealth’s claims for public interest immunity. The Court’s decision is the subject of an application for leave to appeal to the Full Federal Court.

In relation to the High Court challenge to the National School Chaplaincy Program (expanded and renamed the National School Chaplaincy and Student Welfare Program in 2012) we contributed to the preparation of advice to the Government.

On 20 June 2012, the High Court in Williams v Commonwealth of Australia & Ors [2012] HCA 23 held that an agreement under the Program and payments made by the Commonwealth under that agreement, were invalid on the ground they were not supported by the executive power of the Commonwealth. A majority of Justices so held on the basis that the Commonwealth executive government could not enter into agreements and make payments without legislative authority: appropriation legislation was not sufficient.



Feature Coordinating the Government’s

legislative programOn the face of it, the introduction of bills into the Parliament is a relatively smooth and routine process. However, behind the scenes there are many people involved, each with their own part to play.

The team in the Parliamentary Affairs and Legislation Section provides briefing on the majority of requests from Ministers to the Prime Minister seeking minor policy approval for legislation. We provide support to the Parliamentary Business Committee of Cabinet, which manages the Government’s legislation program, and we brief the Parliamentary Secretary to the Prime Minister on the legislation approval process.

It should come as no surprise that in the week ahead of a Parliamentary sitting period, we are a hive of activity. With few exceptions, every piece of Government legislation to be introduced into the Parliament, bills and amendments, comes through our section. In 2011–12, we handled 230 bills and briefed the Parliamentary Secretary to the Prime Minister on over 170 requests for minor policy approval. We also produced material for each Parliamentary Business Committee meeting as well as public lists of unproclaimed legislation and legislation proposed for introduction in the upcoming sittings of the Parliament.

Anne O’Connor and David Belgrove, who share responsibility for all 20 portfolios, ensure that all approvals are in place, relevant Ministers have been consulted and the bill is ready for introduction. Anne Dowd oversees all aspects of the approvals process and signs off the briefing to the Parliamentary Secretary to the Prime Minister, recommending introduction and addressing any outstanding minor policy issues. Mike Grocott supports the whole team, ensuring that papers are sorted, printed, assembled and distributed, often with little time to spare.

We could not do our jobs without the unwavering support and collaborative work of the policy branches and officers in other departments, particularly the hearty band of Legislation Liaison Officers across all departments and the drafters at the Office of Parliamentary Counsel – and we thank you all. Photo 2.8 Parliamentary Affairs and Legislation Section

(L-R: Mike Grocott, David Belgrove, Anne O’Connor and Anne Dowd)



Flag to subscribers to the Commonwealth Flag Network. We also provided advice on the appropriate use of the Commonwealth Coat of Arms, including approval for its use in educational material or for teams representing Australia in international competitions. Advice was also provided to Government agencies regarding the Australian Government Branding Design Guidelines.

Administered item: National Australia Day Council

PERFORMANCE REPORT

KPI: NADC grant administered in compliance with the reporting mechanisms, objectives and other provisions of the grant funding deed.

NADC performed effectively during the year and provided acceptable financial, audit and progress reports on its funded activities within the timeframes stipulated in the deed.

The National Australia Day Council is a Commonwealth-owned, not-for-profit company within the Prime Minister and Cabinet 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.

In 2011–12, the Government provided $3.47 million to the National Australia Day Council (NADC), administered through PM&C.

Australian honours system

During 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 consider honours to public servants, such as the Public Service Medal. The National Emergency Medal, the Australian Operational Service Medal and substantial changes to the eligibility for Police Overseas Service Medal received royal approval this year.

We administered nominations for non-Australians for honorary awards in the General Division of the Order of Australia and the Governor-General made 13 honorary appointments during the year. The Australian honours website www.itsanhonour.gov.au continued to be a valuable source of news and information about honours.

We also arranged 12,549 congratulatory messages from the Prime Minister to Australians celebrating significant birthdays and wedding anniversaries.

National symbols

We provided information and advice about national symbols, including the Australian National Flag and the Australian National Anthem, including through the website www.itsanhonour.gov.au. We distributed advice on special occasions about the flying of the Australian National Flag, the Australian Aboriginal Flag and the Torres Strait Islander

http://www.australiaday.gov.au

http://www.itsanhonour.gov.au

http://www.itsanhonour.gov.au



Feature Supporting the

Prime Minister’s ForumsIn 2011–12, officers from policy and community engagement areas within PM&C worked together to successfully organise a number of high profile events hosted by the Prime Minister. These included the Future Jobs Forum, the Business Advisory Forum and the Prime Minister’s Economic Forum. The forums brought together representatives from business, industry bodies, unions, community organisations, academics and State and Territory Governments and generated insightful dialogue on policy challenges and potential areas for future reform. They also helped build an understanding among participants and the public of the major issues facing the Australian economy.

There were a range of policy outcomes resulting from the forums, which are being taken forward by the Government, including:

§ the establishment of the Prime Minister’s Taskforce on Manufacturing

§ COAG agreement to undertake further work and report back on a new regulatory reform agenda at the next Business Advisory Forum

§ the commitment, at the Economic Forum, to the reduction of the company tax rate as a top priority of the Business Tax Working Group and to provide stronger incentives for employment services to identify interstate job opportunities.

Staff from Economic Division, Industry, Infrastructure and Environment Division and the Ministerial Support Division worked closely to carry out both the policy work and the operational arrangements for the forums drawing on strong working relationships with other departments.

Photo 2.9 The Prime Minister addressing the Economic Forum in June 2012

Photo 2.10 The Secretary with the Future Jobs Forum team



§ provided support on speeches, internal communications (including the redevelopment of the intranet) and quality assurance on briefs to the Prime Minister in regard to editorial standards

§ assisted with online engagement including support for the Prime Minister’s website, www.pm.gov.au

§ coordinated all arrangements for the Prime Minister’s community engagement activities

§ provided home department support services to the Prime Minister’s Office and relevant Portfolio Ministers

§ managed the Department’s internal governance arrangements.

In 2011–12, there was a small decrease in the overall amount of correspondence received and a continuing shift from hardcopy correspondence to emails sent by the public.

Ministerial Support Division

The Ministerial Support Division (MSD) co-ordinated the delivery of departmental services to the Prime Minister and other Portfolio Ministers and Parliamentary Secretaries, supported internal communication mechanisms such as the intranet and prepared draft speeches. MSD also supported the Department’s Audit Committee and managed essential corporate governance activities. Additionally, following a departmental restructure, MSD planned, coordinated and delivered a series of Community Cabinet meetings across Australia. During 2011–12, we:

§ received, registered, tracked and analysed 155,000 items of incoming correspondence and coordinated briefing material for the Prime Minister and our Portfolio Ministers and Parliamentary Secretaries

§ ensured all incoming items for the Prime Minister and other Portfolio Ministers were registered and allocated to the appropriate area usually within 24 hours but no later than 48 hours after receipt, to facilitate improvements in departmental response times

Figure 2.1 Summary of items of correspondence processed

Correspondence processed 2009-10 2010-11 2011–12

Number of items 148,000 158,000 155,000

Figure 2.2 Numbers of Senate Estimates questions on notice

Estimate title1 2009 2010 2011 2012

AE - Additional Estimates (February) 155 193 56 100

BE - Budget Estimates (May) 119 95 116 125

SBE - Supplementary Budget Estimates (October) 106 132 2342 N/A3

Notes:1 Questions are excluded from these departmental figures where the response is managed by a separate

portfolio agency.2 All Senate Estimates questions on notice for the 2011–12 financial year were tabled by the due date.3 N/A for SBE 2012: The estimates round will occur in the 2012-13 financial year.

http://www.pm.gov.au



Feature Arranging the Prime Minister’s

Community Cabinet meetingsThe Community Engagement section manages the Community Cabinet Program. Community Cabinet meetings are part of the Prime Minister’s commitment to provide opportunities for direct access to the Government. Each of the Ministers attending holds up to five 10 minute ministerial meetings with individuals or small groups. There is also a community reception, often catered by the host school, followed by a public forum where people can ask unscripted questions directly of the Prime Minister and Ministers.

Thirty-four meetings have been held at 34 schools across Australia since 2008, nearly 16,000 people have registered to attend, 1,803 ministerial meetings have been held and 452 questions have been asked at the public forums. This year engagement opportunities for all participants have increased with new innovations including: vox pop interviews with participants; a Facebook site to encourage engagement prior to the meeting and to report to the community after the meeting; a community-centered approach applied to meeting promotion (such as more appealing advertising in local papers, local letterbox drops) and a new people-friendly design on the Department’s website.

Briefing and reporting is still a large component of the Community Cabinet process. After the meeting a summary report, a transcript and meeting photos are published on www.dpmc.gov.au and the Facebook site.

Photo 2.11 The Community Cabinet Facebook page increasing the reach of the program and sharing community experiences

Photo 2.12 Anna Long and Saskia Bourne from the Community Engagement Section interview a community member. During 2012, vox pop interviews were introduced to provide attendees with an opportunity to reflect on their experience at Community Cabinet. Their feedback is used to improve Community Cabinet meetings



Figure 2.3 Performance relating to parliamentary questions

Questions on Notice (QON) 2009-10 2010-11 2011–12Parliamentary questions handled

Questions on hand at 1 July 17 9 5New questions received 61 331 90Questions transferred to other Ministers 9 1 15Responses lodged 59 28 77Withdrawn 1 1 0Lapsed 0 7 0Average days taken to respond2

House of Representatives questions 69 59 51

Senate questions 76 61 37

Notes:1 Questions directed to PM&C Portfolio Ministers are included only where PM&C supported the Minister in

relation to the matter raised in the QON and supported the Minister in responding to the question.2 These figures are average number of days, for relevant responses, between questions being asked and

responses being lodged.

Community engagement

The Community Engagement section planned, coordinated and delivered 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 and where members of the public can ask questions of, or make statements to, the Prime Minister and other Ministers. In 2011–12, we coordinated arrangements for five Community Cabinet meetings:

§ Yeronga, Queensland on 1 September 2011

§ Kingston, Tasmania on 5 October 2011

§ Werribee, Victoria on 17 November 2011

§ Parramatta, New South Wales on 4 April 2012

§ Berwick, Victoria on 16 May 2012.

Meetings involved around 1,600 registered attendees, an average of 44 ministerial meetings

at each event and 14 questions asked at each public forum.

We also provided support for the Prime Minister’s other community engagement activities, including the Future Jobs Forum on 6 October 2011 and the Prime Minister’s Economic Forum on 12 to 13 June 2012.

Cabinet Division

PERFORMANCE REPORT

KPI: High level of satisfaction of key stakeholders and achievement of key tasks delivered to agreed timeframes for the meetings of Cabinet and sub-committees of Cabinet detailed in Figure 2.4 below.

Feedback from the Prime Minister, the Cabinet Secretary and the Official Secretary to the Governor-General indicated satisfaction with our support and responsiveness in servicing the Cabinet and the Federal Executive Council. Informal feedback from other stakeholders was also favourable.



Feature The Federal Executive Council

Secretariat The Federal Executive Council is established by section 62 of the Constitution to advise the Governor-General in the government of the Commonwealth. The Governor-General, at meetings of the Council, makes regulations, approves key appointments, authorises Australia’s entry into international treaties and grants land to Indigenous Australians. No regulation, statutory appointment or international treaty is legal until it has been approved by the Governor-General in Council.

The Council is supported by a secretariat in Cabinet Division. It is the Secretariat’s responsibility to organise Ministers’ attendance at Council meetings, advise departments of Federal Executive Council requirements and procedures and act as the liaison between Ministers’ offices, departments and Government House. The Secretariat is responsible for clearing all explanatory material and authorising instruments before they are presented to the Governor-General and providing covering briefs for each meeting item to the Governor-General and Councillors.

The Secretariat is a fascinating place to work, mainly by virtue of the breadth of material that it scrutinises. In the past financial year, the Secretariat has handled material ranging from the appointment of the Race Discrimination Commissioner to the Australian Human Rights Commission, and regulations enforcing sanctions against the Côte d’Ivoire, to granting portions of Northern Territory land to the Kenbi Land Trust and declaring 19 February as a national day of observance to be known as the Bombing of Darwin Day. Our team considers it a privilege to be able to work with Government House to support the Governor-General.

Photo 2.13 The Federal Executive Council Secretariat with Her Excellency Ms Quentin Bryce AC CVO Governor-General of the Commonwealth of Australia at Government House

During 2011–12, we provided support for the Cabinet and 12 Cabinet committees and sub-committees. This included overseeing the establishment of the Australia in the Asian Century Committee, as well as the Expenditure Review Committee sub-committee on Service Delivery and Coordination, and the National Security Committee (NSC) Major Capability Acquisition sub-committee.

There were 196 Cabinet and committee meetings held in 2011–12, of which two were held interstate. In addition, the Secretariat provided support for 19 meetings of the Secretaries’ Committee on National Security. There was an improvement in the timeliness of the release of minutes for the Cabinet and its committees (excluding the NSC) for the 2011–12 financial year from 48 per cent to



55 per cent. This achievement was realised despite an increase of some 17 per cent in the number of meetings for the Cabinet and its committees. The decrease in the timeliness of the release of NSC minutes reflected the 35 per cent increase in the number of meetings held. We also supported Her Excellency Ms Quentin Bryce AC CVO Governor-General of the Commonwealth of Australia, with high-level administrative support to the Federal Executive Council. Support for the Federal

Figure 2.4 Services to the Cabinet and other decision makers

Services 2009-10 2010-11 2011–12Meetings held by the Cabinet and its committees

Cabinet 41 40 52

Ministry 5 5 2

National Security Committee 30 20 27

Parliamentary Business Committee 18 14 18

Other Cabinet committees 103 85 97Total meetings held by the Cabinet and its committees 197 164 196

Cabinet meetings held outside Canberra (not including Cabinet committee meetings) 13 1 2

Other committee meetings held outside Canberra 19 3 4

Secretaries’ Committee on National Security 14 12 19Cabinet minutes released within 24 hours of meeting

National Security Committee 65% 50% 38%

Cabinet and all other committees 80% 48% 55%

Other indicators of Cabinet workload

Cabinet documents lodged 743 544 491

Cabinet minutes recorded 1,4961 1,146 1,524

Support for the Governor-General in the Federal Executive Council

Meetings held 27 22 22

Papers considered 656 484 585

Availability of papers two working days before meeting 90% 97.3% 98.5%

Note:1 The figure differs from that provided in the 2009–10 Annual Report which was 1,988 because the number

of Cabinet minutes reported in 2009–10 included extracts of minutes (where only a part of a minute is provided rather than a completed minute).

Executive Council improved upon the previous year with 98.5 per cent of papers available at least two days before Council meetings.

We assisted the National Archives of Australia in preparing the release of Cabinet documents up to December 1991, as Australia transitions from a 30 year closed period to 20 years. These documents will be available for request at www.naa.gov.au. We also provided advice on FOI applications for Cabinet related documentation.



Feature CHOGM 2011Australia hosted the 2011 Commonwealth Heads of Government Meeting (CHOGM) in Perth in October, becoming the first Commonwealth country to host the meeting three times, following meetings in Melbourne in 1981 and Coolum in 2002. CHOGM 2011 was the largest gathering of world leaders held in Australia.

CHOGM 2011 was a significant meeting in the life of the Commonwealth and this fact was underscored by attendance at the event – 51 of 53 member countries were represented in Perth, with the overwhelming majority represented at Head of Government level. As host, the Australian Government had responsibility for driving the policy setting and agenda in consultation with the Commonwealth membership and Commonwealth Secretariat to ensure successful outcomes were achieved. The Department’s International Division led the policy work, coordinating whole-of-government policy input for CHOGM 2011 in conjunction with the Department of Foreign Affairs and Trade.

A Taskforce was also formed within the Department in January 2010 to oversee the logistics and administrative arrangements for the event, including accommodation and transport. Four months out from CHOGM, 60 members of the Taskforce relocated from Canberra to continue preparations on the ground in Perth.

As well as the summit itself, CHOGM 2011 presented a unique opportunity for the Prime Minister to hold a series of valuable bilateral meetings with leaders from other countries. The Prime Minister hosted ten formal bilateral meetings in Perth, including with Prime Minister Cameron of the United Kingdom, President Zuma of South Africa, Prime Minister Harper of Canada, and President Jonathan of Nigeria. In total, briefing materials for over 50 bilateral meetings for the Prime Minister were prepared ahead of CHOGM 2011.

Successfully hosting large multilateral events like CHOGM does not happen by chance; it requires a high degree of cooperation and liaison between Federal and State Government agencies and a lot of hardworking staff behind the scenes. The success of CHOGM 2011 was reflective of the genuine and constructive working relationships that exist at all levels of the Australian Government, and has continued Australia’s impressive track record in hosting major world-class events. The Taskforce was led by Terry Crane LVO who had also worked on the CHOGM 2002 Taskforce. Photo 2.14 The team behind CHOGM 2011



§ finalising arrangements with contractors for key event services including host broadcast, venue design and fit-out, opening ceremony production, accreditation and transportation

§ finalising security arrangements which were shared between the Australian Government and the Western Australian Government in accordance with long standing procedures and arrangements. The security overlay for CHOGM worked very well and there were no security incidents during the event

§ coordinating arrangements for the parallel and associated events held immediately prior to CHOGM 2011, including the Commonwealth Business Forum, the Commonwealth People’s Forum, the Commonwealth Youth Forum and various sporting events

§ managing the logistical and administrative arrangements at event time for the Caribbean Community (CARICOM) Meeting, Commonwealth and Developing Small States Foreign Ministers Meeting and the Pre-CHOGM Foreign Ministers Meeting.

CHOGM 2011

A 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 and the Department of Foreign Affairs and Trade were jointly responsible for policy and meeting content.

A Secretary-level Steering Committee, established in early 2010, provided high-level direction and guidance on event management and security issues, endorsed policy matters and determined and integrated agency responsibilities. A security sub-committee provided high-level support to the Steering

PERFORMANCE REPORT

KPI: High level of satisfaction of the Prime Minister with the management of CHOGM 2011.

Feedback from the Prime Minister indicated satisfaction with the planning and management of CHOGM 2011.

KPI: The successful promotion of Australia to international delegates through the meeting arrangements.

Feedback from Commonwealth member countries indicated satisfaction with the high level of logistical and administrative support provided in the lead up to and during CHOGM 2011. The Taskforce provided a comprehensive media centre to facilitate international media coverage of the event. The Taskforce also worked closely with key stakeholders to maximise promotional opportunities in the lead up to and during the meeting.


CHOGM 2011 was held from 28 to 30 October 2011 in Perth, Western Australia. This is the third time that Australia has played host to Commonwealth Heads of Government meetings—with previous meetings held in Melbourne in 1981 and Coolum in 2002.

During 2011–12, the CHOGM 2011 Taskforce completed preparations for and delivered CHOGM 2011. Key activities included:

§ hosting two advance visits for representatives from Commonwealth member countries during July

§ hosting a visit by the Deputy Secretary-General of the Commonwealth, demonstrating arrangements and planning for the event

§ training and mobilising 500 volunteers in partnership with Volunteering WA

Commonwealth Heads of Government Meeting 2011 (Program component 1.1.5)



§ providing an intensive training program for 120 liaison officers to underpin delegate relations activities

§ arranging construction of a temporary international airport terminal to process the customs, immigration and quarantine requirements of arriving state aircraft and the construction of an enclosed tower to allow media to film and photograph arriving Heads of Government from outside the airport perimeter

§ continuing community engagement activities including public information sessions and an online subscription and Twitter feed.

Committee and advised senior officials and the Government on strategy and planning for a safe and secure CHOGM 2011.

The Taskforce worked closely with the Commonwealth Secretariat (based in London), relevant Australian Government departments and agencies, Western Australian Government departments and the Western Australian Police, regarding the logistical and support planning for the meeting.

Other key activities included:

§ briefing High Commissions and senior Government officials in Canberra

Photo 2.15 CHOGM 2011 Opening Ceremony - presentation of a gift to Her Majesty The Queen by Noongar Representative Elders



§ by coordinating a number of significant visits and events including:

�� the Royal Visit by Her Majesty The Queen and His Royal Highness The Duke of Edinburgh (19-29 October 2011)

�� the State Visit by the Honorable Barack Obama, President of the United States of America (16-17 November 2011)

�� the visit by His Royal Highness Crown Prince Frederik and Her Royal Highness Crown Princess Mary of Denmark (19-27 November 2011)

§ to the Prime Minister to undertake eight overseas visits to 11 nations

§ by coordinating a range of State occasions and official hospitality events around Australia including State funerals.

Prime Minister’s overseas travel

We planned and coordinated eight official visits overseas for the Prime Minister, including:

§ New Zealand (Pacific Islands Forum) (6-8 September 2011)

§ France (G20), United Arab Emirates and Afghanistan (1-8 November 2011)

§ United States of America (APEC) (11-15 November 2011)

§ Indonesia (East Asia Summit) (18-20 November 2011)

§ Republic of Korea (Nuclear Security Summit) (25-28 March 2012)

§ Singapore and Turkey (ANZAC Day Service) (22-27 April 2012)

§ United States of America (ISAF Meeting) (19-23 May 2012)

§ Mexico (G20) and Brazil (Rio+20) (17-24 June 2012).

The Ministerial Support Division (MSD) through the Ceremonial and Hospitality Branch 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. MSD also supported the operations of the Prime Minister’s official residences and supported the provision of services to former Governors-General.

PERFORMANCE REPORT

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 from the Prime Minister and the Prime Minister’s Office, letters of appreciation from visitors and their diplomatic representatives, post-visit cables from Australia’s overseas missions and other feedback from the recipients of official hospitality and state functions indicated a high level of satisfaction with the Department’s management of the government’s hospitality for overseas dignitaries, official ceremonies and the program of official visits.


During 2011–12, we provided essential logistical and administrative support:

§ for the operations of the Prime Minister’s official establishments and the offices of the Prime Minister and other Portfolio Ministers

§ to six former Governors-General, including their staff

Official and ceremonial support (Program 1.2)



§ Secretary-General of the United Nations, the United Nations High Commissioner for Refugees, President of the World Bank, President of the Asian Development Bank, Member of the Political Bureau of the Communist Party of China (CPC) Central Committee and Party Secretary of the CPC Guangdong, Secretary-General of the North Atlantic Treaty Organisation and His Royal Highness Crown Prince Frederik and Her Royal Highness Crown Princess Mary of Denmark

§ Ministers from the People’s Republic of China, the European Union, Russia, India, Laos, the United States of America and Saudi Arabia.

We also managed 170 airport facilitations for Heads of State and Heads of Government transiting or making private visits to Australia.

Guest of government visits to Australia

We arranged and facilitated 32 guest of government visits to Australia this year (see Figure 2.5), an increase of 12 from the previous year. These ranged from Royal, State, Head of Government and ministerial level visits and included official hospitality. Visits under the guest of government program in 2011–12 included:

§ Her Majesty The Queen and His Royal Highness The Duke of Edinburgh

§ Heads of State of the United States of America, Nigeria, Seychelles, Gabon, Lebanon and Portugal

§ Heads of Government of the European Commission, New Zealand, Papua New Guinea, Trinidad and Tobago, United Kingdom, Norway, Timor-Leste and Thailand

Photo 2.16 The Prime Minister and US President Barack Obama during the President’s first visit to Australia in November 2011



Figure 2.5 Summary of ceremonial and hospitality services

Services 2009-10 2010–11 2011–12Prime Minister’s overseas visits

Visits made 7 8 8

Nations visited1 14 14 11

Total duration of visits (whole or part days) 45 48 42Official visits to Australia by guests of the Australian Government

Heads of State 6 2 7

Heads of Government 3 4 8

Ministers 11 12 11

Other guests2 5 2 6Total visits excluding airport facilitations 25 20 32

Airport facilitations3 190 115 170Other events of state

State funerals 0 1 3

State memorial services 0 2 1

Additional events 36 20 25Total other events of state 36 23 29Notes: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.

§ National Emergency Medal presentation ceremonies in both Canberra (26 January 2012) and Flowerdale (27 January 2012) and a presentation ceremony for the inaugural National Police Service Medal (Canberra, 19 September 2011)

§ the PM’s XI Cricket Match (Canberra, 3 February 2012)

§ Her Majesty The Queen’s Diamond Jubilee Beacon Lighting Ceremony (Canberra, 4 June 2012).

Other major events

Other events we coordinated in 2011–12 included:

§ morning tea in honour of the 2012 Australian of the Year Awards Finalists (Canberra, 25 January 2012) and an Australia Day 2012 Reception (Canberra, 26 January 2012)

§ COAG Meetings (Canberra, 19 August 2011 and 13 April 2012)

§ state funerals for the Honourable David Jull (Brisbane, 23 September 2011), the Right Honourable Sir Zelman Cowen AK GCMG GCVO QC (Melbourne, 13 December 2011), the Honourable Lionel Bowen AC (Sydney, 11 April 2012) and a State Memorial Service for the Honourable Clyde Holding (Melbourne, 16 August 2011)



PERFORMANCE REPORT

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 indicated that the former Governors-General were generally satisfied with the Department’s administrative support and the timely payment of allowances.

We provided administrative support to six former Governors-General, including support for their staffing and office arrangements and related entitlements.

Following Sir Zelman Cowen’s death on 8 December 2011, we worked closely with his family to ensure that his papers were held in accordance with their wishes and to close his office.

Official establishments

The Department manages the operations of the Prime Minister’s two official residences: The Lodge in Canberra and Kirribilli House in Sydney. We also provided secretariat support for four meetings of the Official Establishments Trust and administered the grant-in-aid for the Australiana Fund. Throughout the financial year, 16 charity events were held at The Lodge and Kirribilli House under the Official Establishments Charities Program.

PERFORMANCE REPORT

KPI: High level of satisfaction with the quality and timeliness of advice and secretariat support for the Official Establishments Trust.

Feedback indicated that the Official Establishments Trust was generally satisfied with the support it received and that the Department provided accurate and timely advice and services.

Part 3:

Management and accountability Corporate governance 62

External scrutiny 66

Management of human resources 67

Work health and safety 80

Purchasing 82

Consultants 82

Freedom of information 83

Advertising and market research 84

Ecologically sustainable development and environmental performance 84

Information technology 90

Grant Programs 91

62 Part 3: Management and accountability


Executive Leadership Group

The Executive Leadership Group (ELG) 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 affecting the Department, including any ongoing or emerging risks, and monitors the Department’s performance in meeting its outcomes. The members of the ELG as at 30 June 2012 were:

Dr Ian Watt AO (Secretary) was responsible for the overall leadership of the Department. Dr Watt was appointed as Secretary of the Department in September 2011.

Dr Gordon de Brouwer PSM (Associate Secretary, Domestic Policy) led and coordinated the Department’s Domestic Policy Group and was appointed to the position in June 2011. Dr de Brouwer also provides leadership as Australia’s G20 sherpa.

Dr Margot McCarthy (Associate Secretary, National Security Adviser) led the National Security and International Policy Group. Dr McCarthy led and coordinated Australia’s national security community, 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. Dr McCarthy was appointed to the position of National Security Adviser in February 2012.

Ms Rebecca Cross (Deputy Secretary, Social Policy) was responsible for leading on 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; and social inclusion and the not-for-profit sector. Ms Cross was appointed to the position of Deputy Secretary in August 2011.

Governance is the framework of relationships (people), structures (committees), systems, processes and culture that supports the operations of an organisation. Good governance ensures the achievement of the Department’s overall outcomes in an open and transparent way. It encompasses authority, accountability, stewardship, leadership, direction and control exercised in the Department.

As part of our commitment to good governance, the Department promotes a culture that encourages and supports all staff to be accountable for their actions; act with integrity, trust, honesty and respect; commit to excellence; focus on performance; and ensure the efficient effective and ethical management of people and resources.

Elements of our corporate governance framework include business planning, audit and assurance activities, risk management, fraud prevention and control, committees, the chief executive’s instructions, policies and guidelines and performance agreements.

Committees

To support the Secretary, we have a number of groups and committees:

§ Executive Leadership Group

§ Senior Management Group

§ Corporate Management Meeting

§ Audit Committee

§ Security Committee

§ Investment Review Committee

§ People and Leadership Committee

§ Consultative Committee

§ Health and Safety Committee

§ Graduate Support Group.

Corporate governance

63Part 3: Management and accountability


Corporate Management Meeting

The Corporate Management Meeting comprises the ELG plus the First Assistant Secretary (FAS) Corporate Services Division (CSD). The group meets monthly to discuss corporate strategy and deals with all corporate management decisions and issues across the Department.

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 frameworks and its external accountability responsibilities.

At 30 June 2012, the Audit Committee comprised: Ms Renée Leon, Chair and Deputy Secretary Governance; Mr Paul Ronalds, member and FAS Office of Work and Family; Mr Richard Sadleir, member and FAS Defence, Intelligence and Information Sharing Division; Mr Will Laurie, external independent member; and Ms Jenny Morison, external independent member.

During 2011–12, the Audit Committee held quarterly meetings in September, December, March and June and financial statement meetings in July and August. The Audit Committee approved our strategic internal audit plan, our internal audit annual work program and our internal audit reports on performance and compliance issues. The Audit Committee also reviewed our financial statements, recommended the approval of our annual Certificate of Compliance, and endorsed our fraud control plan and our risk management framework and plan.

Security Committee

The Security Committee provides advice to the Secretary on actions to counter or manage security threats. The committee meets twice

Ms Renée Leon (Deputy Secretary, Governance) was responsible for the overall governance of the Department, including the Department’s enabling and support functions and support services and advice to the Prime Minister, the Cabinet, and Portfolio Ministers and Parliamentary Secretaries and was also an ex-officio member of the Council of the Order of Australia and is a member of the National Australia Day Council. Ms Leon joined the Department as Deputy Secretary in July 2011.

Mr Allan McKinnon (Deputy Secretary, Deputy National Security Adviser) supported the work of the National Security Adviser across the breadth of her national security and international policy responsibilities. Mr McKinnon 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. Mr McKinnon was appointed to the position of Deputy National Security Adviser in June 2012.

Dr Paul Schreier (Deputy Secretary, Economic and Strategy) was responsible for leading economic and strategic advice, including industry, innovation, research and tertiary education, transport, environment, resources and energy, communications, regional matters, agriculture, climate change, workplace relations, tax, competition, regulation and economic policy. Dr Schreier was appointed to the position of Deputy Secretary in August 2011.

Senior Management Group

The Senior Management Group comprises the ELG, 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.



(Deputy Chair), the FAS CSD, the Assistant Secretary People, Capability and Performance Branch (PCPB) and representatives from each group. The PLC met quarterly during 2011–12, and progressed a number of HR issues such as learning and development initiatives, conditions of employment and the management of health and safety at PM&C. The committee was also instrumental in the development and progression of the Human Capital Strategy 2011–14.

Consultative Committee

The Consultative Committee represents all employees at PM&C who are covered by the PM&C Enterprise Agreement 2011–2014 (EA) and provides a forum for management and employees to discuss matters affecting the workplace. Employee representatives are 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 (Chair), the Assistant Secretary PCPB, one management representative and 15 divisional representatives. The committee met four times during 2011–12 and considered a range of issues including pulse (staff) survey results, employment guidelines, workplace relations issues, performance management and capability development initiatives.

Health and Safety Committee

The role of the Health and Safety Committee (HSC) is to facilitate discussion and cooperation between management and employees and others who work on PM&C premises (for example, the Office of the Inspector-General of Intelligence and Security and the ‘One’ Hub café) regarding health and safety issues in the workplace.

a year and comprises the Deputy Secretary Governance (Chair); Deputy of the National Security Chief Information Officer; the Assistant Secretary G20 Taskforce; division heads of International, Corporate Services, Government, Economic, Ministerial Support, Cyber Policy and Homeland Security divisions and the Office of Work of Family. Ex-officio members were the Chief Information Officer, the Agency Security Adviser and the IT Security Adviser. During 2011–12, the Security Committee considered issues including: the new Protective Security Framework, the new security classification system, ICT security policy, security breaches, security incidents and investigations.

Investment Review Committee

The Investment Review Committee makes recommendations to the ELG regarding the strategic direction for the asset replacement and investment program and for capital management planning and the budgeting process, timetable, assumptions and rules for the Department. The committee meets twice a year and comprises the Deputy Secretary Governance (Chair), FAS Economic Division, FAS CSD, Chief Financial Officer and the Chief Information Officer.

People and Leadership Committee

The People and Leadership Committee (PLC) was established to provide a more strategic, whole of PM&C approach to human resources (HR) and leadership strategy.

The PLC provides strategic advice to the Secretary and the ELG on integrating the Department’s people planning and leadership development with the Department’s strategic direction and business priorities. Membership includes the Deputy Secretary Governance (Chair), the Deputy Secretary Economic Strategy



levels, including strategic, operational, financial and fraud risk. Risk is also 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 on 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. The annual update was informed by feedback from senior managers, outcomes from the Department’s annual internal audit program, as well as the views of Audit Committee members and the ELG.

The Audit Committee recommends the plan for approval by the ELG, monitors the implementation of treatment strategies and tracks risks. The revised 2011–12 plan was approved by ELG on 5 July 2011.

Ethical standards

PM&C is strongly committed to promoting and maintaining the standard of behavior 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 part of the foundation of all HR policies and procedures.

Through our induction program, our employees are educated on their obligations as members of

The HSC is chaired by the Assistant Secretary PCPB. Membership includes management and health and safety representatives from across the Department.

The committee, in conjunction with PCPB, was responsible for assisting in the development of the Health and Safety Management Arrangements (HSMAs) under the superseded Occupational Health and Safety Act 1991 (OHS Act). Please see page 80 for discussion regarding our policies and performance on work health and safety.

The committee meets quarterly in accordance with our Work Health and Safety Strategy 2012–2014 and the Work Health and Safety Act 2011 (WHS Act).

Graduate Support Group

The role of the Graduate Support Group (GSG) is to ensure the Graduate Development Program meets 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 Ms Helen McDevitt, FAS Social Policy Division and membership comprised an SES officer from each of the groups, one former graduate and the Assistant Secretary PCPB. The GSG met nine times during 2011–12 to discuss and progress issues such as rotations, learning and development, recruitment and the 2013 graduate recruitment timeline.

Risk management

A positive culture of risk management is a central element of our operations and essential to ensuring our success in achieving outcomes. The Department’s risk management framework is developed following analysis at a number of



have assessed how satisfied our key clients were with our services.

If we receive any complaints, we deal with them appropriately as the situation demands. This might be a direct response, an internal investigation, an escalation to a senior officer, a 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.

Fraud prevention and control

We maintain a comprehensive fraud control plan, based on fraud risk assessments, that complies with the Commonwealth Fraud Control Guidelines 2011. We regularly review fraud prevention and control measures and are committed to continuous improvement in fraud prevention and detection. We are implementing strategies for raising awareness and fraud prevention as set out in the Fraud Control Plan 2010–12.

the APS and are made aware of the availability of the following documents on the intranet: APS Values, APS Code of Conduct and the Code of Conduct for Ministerial Staff.

We reviewed the Bullying and Harassment Prevention Guidelines following commencement of the WHS Act and have seen a reduction in enquiries to the Harassment Contact Officer Network following the review.

We regularly participated in the Ethics Contact Officer Network. The network plays a key role in supporting the ongoing work of the Ethics Advisory Service and provides best practice advice on ethical matters.

Performance against service charter and complaints

The Department provides very limited services directly to the public. Our key clients are the Prime Minister, the Cabinet, and Portfolio Ministers and Parliamentary Secretaries. In the performance report for each of our groups, we

A number of cross agency audits were of relevance to the Department, including Development and Implementation of Key Performance Indicators to Support the Outcomes and Programs Framework; Information and Communications Technology Security: Management of Portable Storage Devices; Establishment and Use of Procurement Panels; and Records Management in the Australian Public Service. We implement recommendations arising from cross agency audits as appropriate.

External audit

In 2011–12, the Australian National Audit Office (ANAO) undertook a performance audit in PM&C (together with the Departments of Foreign Affairs and Trade and Broadband, Communications and the Digital Economy) on the administration of the Australia Network tender process. The audit did not make any recommendations in light of the termination of the tender process but identified lessons learned and made suggestions for future tender processes.

External scrutiny



the Australian Federation as well as the Joint Committee of Public Accounts and Audit Inquiry on National Funding Arrangements. Officers from the Department appeared before the Senate Finance and Public Administration Committee during their inquiry into the operations of the Lobbying Code of Conduct.

The Australian Information Commissioner (AIC) and the Freedom of Information Commissioner (FOIC) may undertake an external review of freedom of information (FOI) decisions made by the Department. The AIC and FOIC also deal with complaints about the handling of FOI requests. In 2011–12, four external review requests were made to the AIC. Four complaints about the Department were finalised. Two of the complaints were withdrawn by the applicant and another was converted into a review of the decision. In the other, the AIC noted concerns about the delay in finalising the FOI application. The Department has reviewed its FOI processes with a view to improving those processes, including addressing delays in providing decisions. The Department also provided increased resources for FOI case management during 2011–12.

Audits of relevance to the portfolio

No portfolio agency was involved in an ANAO audit in 2011–12.

Other external scrutiny

We have 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.

There were, however, some judicial decisions that the Department needed to take account of, including the High Court in Williams v Commonwealth of Australia & Ors [2012] HCA 23, which held that an agreement under the National School Chaplaincy Program and payments made by the Commonwealth under that agreement, were invalid on the grounds that the expenditure required legislative authorisation.

There were three cases of scrutiny by Parliamentary Committees. The Economic Division was subject to scrutiny from the Senate Select Committee on the Future of

§ targeting and tailoring recruitment to attract outstanding employees at all levels from the public, private and not-for-profit sectors and academia

§ aligning our learning and development to core competencies for our Department to ensure that we have highly qualified and capable employees

In 2011–12, we made a significant investment in developing the capability and capacity of our employees by:

§ increasing our graduate intake from 27 in 2011 to 45 in 2012 (due to the increase in the size of the Department with the Arts and Sport Group and the participation of a number of portfolio agencies in this year’s program)

Management of human resources



To ensure that we have the ability to attract and retain high-calibre candidates in a very competitive environment we:

§ provide competitive salaries

§ have a comprehensive capability development framework

§ offer the experience of working in a central agency and an ability to enhance understanding and experience in a whole-of-government environment

§ 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 value to employees.

§ developing targeted, customised in-house capability development modules to enhance the proficiency of employees

§ providing a range of health and wellbeing programs and the school holiday program to provide employees with a balance between work and personal life.

These initiatives have enabled the Department to deliver high-quality policy advice, program management and government administration to support the Prime Minister, the Cabinet, and Portfolio Ministers and Parliamentary Secretaries.

Our people

As at 30 June 2012, we had a total of 602 employees down from 907 at 30 June 2011, including part-time and non-ongoing employees engaged in ongoing functions (based on headcount). There were a further 118 staff who were inoperative or were employed in associated functions (see Figure 3.1). The substantial decrease in our workforce was a result of the machinery of government changes reflected in the Administrative Arrangements Order. The most significant reduction occurred when employees from the Office for the Arts and Office for Sport were transferred to the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS). The wind down of the CHOGM 2011 Taskforce and Government funding decisions also resulted in a decrease in our overall workforce. A detailed profile of our workforce is provided in Figure 3.3.

We have seen a shift in the overall profile of the Department due to the impact of the machinery of government changes. We continue to have a diverse workforce and of the 602 staff employed in ongoing functions: approximately 60.8 per cent are female and 77.2 per cent are under 45 years. The geographical spread and the diversity profile, including the number of employees who identify as Indigenous, has changed with the number of non-Canberra employees falling.

Workplace agreements

During 2011–12, we implemented the Department of the Prime Minister and Cabinet Enterprise Agreement 2011–14 (EA), including revising our existing and developing new employment guidelines on entitlements such as higher duties allowance, Departmental Liaison Officer allowance and management of inoperative employees.

We reviewed our HR delegations in line with the EA to give Executive Level (EL) staff greater responsibility and accountability. These changes were rolled out in September 2011 through mandatory training sessions for our EL and SES employees. Figure 3.2 sets out data on employment arrangements.

The Department stopped offering AWAs to employees, both new and existing, in November 2007.

Additional information on remuneration is set out on page 72. Information on Executive remuneration is outlined in the financial statements on page 158.



Figure 3.1 Staff distribution at 30 June 2012

PM&C functions Number of staff at 30 JuneOngoing functions

Cabinet Division 31Cabinet Implementation Unit 21Corporate Services Division 99Cyber Policy and Homeland Security Division 30Defence, Intelligence and Information Sharing Division 32Economic Division 53Executive 19Government Division 42Graduates 45Industry, Infrastructure and Environment Division 38International Division 28Ministerial Support Division 46Office of Work and Family 46Social Policy Division 37Strategy and Delivery Division 35

Ongoing functions total 602Associated functions

Australia in the Asian Century Taskforce1 3CHOGM 2011 Taskforce 3COAG Reform Council 28National Disability Insurance Scheme Taskforce 9Former Governors-General2 7

Other

Inoperatives3 68Total 720Notes:1 These staff were supplemented by 14 secondees from other divisions and departments as at 30 June 2012.2 Staff employed for the support of former Governors-General.3 Includes staff on paid leave greater than three months (maternity leave, long service leave, annual leave)

and staff on leave without pay (external temporary transfers, overseas travel or study) and other temporary employment in the interests of the APS.

Figure 3.2 Trends in employment agreements

Agreements 2009 2010 2011 2012Section 24(1) determination (S24)1

SES 60 68 76 64Non-SES 0 0 0 0Enterprise Agreement (EA)1

SES 0 0 0 0Non-SES 556 588 1,014 654Total2 616 656 1,089 7183

Notes:1 All SES staff were covered by a S24 determination and all non-SES staff were covered by the EA.2 This figure includes both ongoing and non-ongoing employees but does not include the Secretary.3 This figure does not include the Special Adviser.



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Senior executive remuneration

All 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.

Performance bonuses

Performance bonuses have been phased out in the Department and none were paid to our employees in 2011–12.

Productivity gains

We worked towards achieving productivity initiatives that were identified during the EA negotiations and throughout the year. The implementation of such initiatives enhances 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.

We introduced enhancements to our HR systems to streamline processes, including:

§ the introduction of online end-to-end recruitment processes through the E-recruit system

§ upgrades to Aurion (the Department’s HR Information Management System) to introduce back-end processing efficiencies and a more contemporary experience for employees through the self-service arrangement

§ the commencement of work to automate paper-based processes.

Figure 3.4 Trends in base salary

Trends at 30 June

2010 2011 2012

Min Max Min Max Min Max

APS1–3 38,529 53,453 39,685 55,057 41,272 57,259

APS 4–6 55,189 78,792 56,845 88,900 59,119 92,456

EL1 84,692 94,412 92,806 113,122 96,518 117,647

EL2 98,576 117,320 108,019 136,145 112,340 141,591

SES Band 1 135,000 176,777 139,050 182,080 139,256 204,455

SES Band 2 175,000 215,270 187,500 221,728 210,000 237,026

SES Band 3 249,000 333,413 249,000 298,700 273,900 388,498

Secretary The Secretary’s remuneration is determined by the Remuneration Tribunal.



Figure 3.5 Human resources workforce profile – numbers, commencements, retentions and separations

Staff 2009 2010 2011 2012Total staff 617 657 1,090 720

Non-ongoing staff (included in total employee numbers) 44 38 90 24Commencements

Ongoing non-APS recruits

Graduates 15 29 27 45

Other non-APS recruits 46 76 77 104Ongoing APS recruits

Promoted into PM&C 10 8 20 14

Transferred into PM&C 73 72 103 771

Recruited as non-ongoing 65 62 76 36Total commencements 209 247 303 276Retention of ongoing staff

Turnover rate 24% 23% 22% 31%2

Promoted within PM&C 44 45 92 75

Non-ongoing transfer out of PM&C 9 9 51 30Separations

Non-ongoing arrangement ceased 12 56 62 1193

Transferred out of PM&C 71 45 88 117

Promoted out of PM&C 24 24 21 16

Machinery of government change n/a n/a 4 3474

Resignation or retirement 29 60 68 92

Retrenchment 2 1 4 3

Invalidity/death 0 1 1 0

Underperformance 0 0 0 1Total separations 138 187 248 695Notes:1 Includes 8 staff from the machinery of government changes of the Cyber Policy function. 2 Based on separations of ongoing employees, not including machinery of government separations.3 Includes 66 CHOGM Taskforce employees concluding their contracts.4 Includes 341 Arts and Sport function employees transferred to the DRALGAS and 6 privacy and FOI

employees transferred to the Attorney-General’s Department.



Recruitment

2011–12 saw a high level of recruitment occurring within PM&C. The key reasons for this were the establishment of a number of new taskforces including the Australia in the Asian Century Taskforce, the National Disability Insurance Scheme Taskforce, the G20 Taskforce, recruitment to specialist roles for arts and sports while a part of the Department until December 2011 and turnover in the Department.

In 2011–12, we also facilitated the selection processes of a number of statutory appointments. The continuation of targeted recruitment programs such as the Graduate Program, Vacation Employment Program, Prime Minister’s Indigenous Executive Leadership Fellowship and the Indigenous Traineeship Program assisted us in ensuring the Department was continually skilled with a range of diverse employees across each of the different classifications.

Capability development

We continue to maintain 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 2011–12, 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 by strengthening the Department’s capability and enhancing the leadership and technical expertise of our employees through a range of in-house and externally provided learning opportunities.

The CDF initiatives addressed five areas of development: leadership, professional

Workforce planning, retention and turnover

Our employee turnover rate in 2011–12 increased by nine per cent from 2010–11. 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.

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 extensively in 2010 and further elements were reviewed during 2011. Implementation will continue into 2012–13. Enhancements included:

§ the development of a Performance Culture Framework

§ upgrades to the performance management module in Aurion

§ improvements to the performance agreement templates

§ the establishment of core competencies for the Department

§ training for all employees on the performance management approach

§ a pilot of training for managers on developing a high-performance culture.



Many of our employees attended the Secretary’s seminar series to gain insight from national and international experts on a range of current policy issues, including mental health, national security, climate change and leadership. In addition, employees were invited to participate in the Executive Lunchbox series to gain exposure to other areas of the Department. These monthly lunchtime events are hosted by senior executives and provide all staff with an informal opportunity to meet with members of the senior executive cohort to gain a greater understanding of current issues within the Department.

Graduate program

Recruitment for the 2012 Graduate Development Program (GDP) was undertaken from April to August 2011, resulting in 820 applications received from a variety of academic and employment backgrounds. A total of 45 graduates were employed for the 2012 GDP, including two Indigenous graduates, who were recruited through the APS Indigenous graduate program, coordinated by the Australian Public Service Commission (APSC).

Providing exposure to the major issues of government in a rewarding, supportive and challenging environment, the 2012 GDP offers graduates the opportunity to participate in two job rotations within the Department. Graduates were also provided the opportunity for rotations in some of our portfolio agencies: DRALGAS, the National Archives of Australia and the APSC. Graduates are 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 undertake

development, core skills development, mandatory training and graduate development, through 116 programs, against which 1,329 staff attendances were recorded. Employees had access to the following types of development:

§ formal training and structured learning

§ secondment, taskforce and cross-agency project work

§ on-the-job training, mentoring and coaching

§ a series of seminars addressing key issues.

During 2011–12, all employees were able to access the Department’s Studies Assistance Scheme which provided support to 95 employees, enabling them to undertake formal courses of study relevant to their work and the work of the broader APS. A total of 78 employees accessed the Career Advisory Panel, which provides advice to address issues such as enhancing management skills and techniques, building leadership styles and implementing career development plans.

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, as well as offering a range of other programs, to address core and professional capability requirements.

Customised in-house writing and policy programs were developed to enhance the capability of staff within the Department. These programs were well attended and provided valuable insight through co-facilitation by senior departmental officers and external facilitators.



Feature Children’s Christmas Party The PM&C Children’s Christmas Party is held each year on the first Sunday in December to allow the children of staff in the Department and their families to get together, have some fun and get into the Christmas spirit.

The 2011 party was held in the grounds of The Lodge with the generous permission of the Prime Minister. One hundred and seventy-five children and 259 family members attended the party on a clear, sunny and not too warm day.

A range of games, face painting and a jumping castle provided by The Gecko Gang helped raise the energy levels and excitement of the children before Santa made his entrance to the party with the Jerrabomberra ACT Rural Fire Service Brigade and their fire truck.

In the week leading up to the event there is a flurry of activity with Jo Jackson (on behalf of Santa) spending hours with Jeff at Toyworld Fyshwick choosing the right toys for all the children and coordinating a team of volunteers to wrap presents and package up the lolly bags, which are nearly as important as receiving a present on the day from Santa.

Special thanks also to Santa’s helper Sean Giddings. As Santa can’t be everywhere in the festive season, it was great that Sean was able to help Santa out on this special occasion.

The Lodge has become the place to go for this annual event and is certainly a hit with the children. Whether it be the kids sliding down the embankment on toboggans or playing cricket on the lush green lawn – everyone goes home from the party exhausted, but with a smile on their faces and a lolly bag full of goodies. We are sure that the event features in more than a few ‘show and tell’ sessions at schools around Canberra.

The party is financed by the fundraising efforts of the PM&C Social Club.

Photo 3.1 Santa’s helper (Sean Giddings) handing out presents at the Children’s Christmas Party at The Lodge



Internship program

In 2012, the Department welcomed two interns as part of the annual mid-year internship program and placed a further three interns in the Attorney-General’s Department and the Department of Climate Change and Energy Efficiency. The program aims to raise the profile of a public sector career path for Australian postgraduates studying at some of the world’s best universities. Interns have the opportunity to contribute to challenging public policy work on some of the highest priority issues facing Australia.

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 employees, with contracts ranging from three to nine months. Secondees to the Department are generally placed at the APS 6 or EL 1, depending on their skills and experience. Not only does the program give participants access to high-quality and transferable skills and strategic policy analysis and project management experience, it strengthens our relationship with external experts and provides a development experience for the individuals involved. In 2011–12 we engaged three non-ongoing industry secondees.

Prime Minister’s Indigenous Executive Leadership Fellowship

The Prime Minister’s Indigenous Executive Leadership Fellowship is an initiative of PM&C and the Australia and New Zealand School of Government (ANZSOG). The aim of this

a suite of learning and development courses tailored specifically around working at PM&C and in the broader APS. This includes a policy masterclass, a project management course, Cabinet training, budget training, writing for the APS, negotiation training, resilience training as well as foundations of the APS environment such as ethics, workplace safety and risk management.

Graduates were provided with opportunities to gain exposure to the broader APS through initiatives such as central agency annual networking functions, the APSC networking functions and participation in the APSC Great Graduate Debate (Kurt Winter and Amy Chandran represented PM&C in this years’ debate).

Vacation employment program

In November 2011, we welcomed 12 university students to the Department through the Vacation Employment Program (VEP). This program provides university students the opportunity to learn about the processes of Government from the inside and to contribute to the work of PM&C through a ten week placement over the university summer break. The VEP is a valuable opportunity to encourage students to seek further employment with the Department after the completion of their studies, either as graduates or general entry level. Three of the 2011 VEP participants have continued their employment with PM&C.

VEP participants experienced highlights such as the Centenary Gala Event, a tour of Parliament House and meeting the Prime Minister at the departmental Christmas Party.



initiative is to increase and foster high-level Indigenous leadership within the APS. The 2012 successful applicant was appointed in January 2012 to a Senior Executive Band 1 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.

Disability reporting

Since 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 have no longer been 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 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.



Feature 2012 Graduates in profile In February 2012, PM&C welcomed 45 new graduates, the largest graduate intake in the Department’s history. Three members of this diverse group, David Harrison-Smith (DHS), Lex Ruby Howe (LRH) and Rebecca Chhan (RC) talk about what drew them to PM&C and their graduate experience to date.

Why PM&C?

DH-S: While working at the Defence Materiel Organization in the United States and the Department of Immigration and Citizenship in Sydney, I had an opportunity to see the practical implications of policy-making firsthand, it wasn’t long before I thought ‘I want to be involved in making these decisions’.

LRH: I grew up in a Canberra household with two parents who were public servants. Years of dinner table conversations shaped my academic and professional desires, and I found myself drawn to the heart of Government here in PM&C.

RC: I have always wanted to work on issues that matter, and to help improve people’s lives through the work that I do, I thought PM&C was the best place to achieve these goals.

Which areas of the Department have you worked in so far?

LRH: I started in the Office for the Not-for-Profit Sector. I worked on implementing the National Volunteer Strategy as well as policy surrounding long term growth of the social investment market. It was a great mix of central and line agency experiences.

RC: During my placement in Strategy and Delivery Division I was fortunate enough to work on social policy areas that I’m passionate about. I have worked alongside incredibly bright and talented individuals and engaged with a variety of people from across the Department and the APS.

DH-S: My first rotation in the Department was in the Cabinet Division and I enjoyed the frenetic drive of Cabinet meetings and urgent submissions. But it is the opportunity to step back and take a considered look at the broad view of Government business that I have found the most rewarding part of my experience in the Department so far.

Photo 3.2 2012 Graduates (L-R: Lex Ruby Howe, Rebecca Chhan and David Harrison-Smith)



Figure 3.6 Health and safety performance

Detail of program 2009–10 2010–11 2011–12

Workstation assessments 161 166 185

Flu vaccinations 267 334 261Wellbeing indicators

Staff receiving employee assistance 31 56 73

Bullying and harassment 1 0 21

Incident management

Notifications of accidents and dangerous occurrences (s68 occurrences) 1 4 3

Directions or notices issued to PM&C under the OHS Act (s29, 30, 45, 46, 47) / WHS Act (s70, 85, 90, 191, 195, 198) 0 0 0

Note:1 Formal bullying and harassment claims. Of these one was finalised and one was under investigation as at

30 June 2012.

§ 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 YMCA

§ access to vaccination against the influenza virus in March 2012

§ 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 and reflection room.

First aid officers are located throughout premises occupied by the Department to ensure immediate assistance is available when needed.

Consistent with the requirements of section 68 of the OHS Act and section 35 of the WHS Act, there were three notifications to Comcare of an injury or dangerous incident during the year. There were no directions or notices issued to PM&C under the OHS Act (sections 29, 30, 45, 46 and 47) or the WHS Act (sections 70, 85, 90, 191, 195 and 198).

The WHS Act came into effect on 1 January 2012, replacing the OHS Act. We conducted mandatory training sessions for all managers, supervisors and SES officers to ensure everyone understood their responsibilities under the new legislation. The Department’s duty of care was extended from employees to include volunteers and contractors under the WHS Act.

To ensure PM&C complied with the new legislation a due diligence framework was established. The Work Health and Safety Strategy 2012–2014 replaced the Health and Safety Management Arrangements that were required under the OHS Act. PM&C’s Health and Safety Committee is formed in accordance with the strategy and membership includes management and health and safety representatives from across PM&C.

We utilised a number of early intervention strategies to minimise any potential WHS risks and to facilitate work-life balance. These included:

§ preventative and specialist workstation assessments

§ access to the employee assistance program for employees and their immediate family members

Work health and safety



Feature 2011 Hartley Lifecare Ability

Cycle ChallengeStaff from PM&C participated in the 2011 Hartley Lifecare Ability Cycle Challenge, over three days in November 2011. This was the third time PM&C has participated in this event. This year’s challenge involved more than 240 participants riding over 430 kilometres from Canberra to Charlotte’s Pass and back over the three days.

It was an extremely demanding ride and a great personal achievement for all participants. There were three stages: day one was a 168 kilometre ride from Canberra to Jindabyne through Bredbo, Cooma and Berridale; on Saturday the ride hit the mountains with a gruelling 90 kilometre stage to Charlotte’s Pass in the NSW Alps and return to Jindabyne; and day three saw the ride return 168 kilometres to Canberra.

Twelve riders representing PM&C, participated and the team raised around $17,000 (including a significant contribution from NEC Australia) which went directly to Hartley Lifecare, a Canberra-based local charity which provides care and accommodation to children and adults with physical and complex difficulties in the ACT and surrounding region.

In total, teams from various departments and local business raised over $459,000.

Photo 3.3 The PM&C Hartley Lifecare Ability Cycle Challenge team 2011 – morning tea break at Bredbo on the way to Jindabyne



information or creative solutions to assist in the Department’s decision making.

Prior to engaging consultants, the Department takes into account skills and resources required for the task, the skills available internally and the cost-effectiveness of engaging external

The Department engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. Consultants are typically engaged to investigate or diagnose a defined issue or problem; carry out defined reviews or evaluations; or provide independent advice,

All major contracts for activities previously performed in-house included a requirement for contractors to allow access to their premises by the ANAO. Information on our planned procurement for the coming year, giving prospective suppliers the opportunity to plan for potential work with the Department, is published in our annual procurement plan, which is available at www.tenders.gov.au. There were no contracts in 2011–12 that were exempt from being reported on AusTender.

Performance of purchaser–provider arrangements

No funds were appropriated for PM&C to deliver outcomes through purchaser-provider arrangements and accordingly there are no arrangements to report.

Asset management

PM&C’s strategic business is to provide advice to and support for the Prime Minister, the Cabinet, and Portfolio Ministers and Parliamentary Secretaries. As a part of this role, the Department provides asset management for a range of departmental and administered assets.

Our procurement policies and practices reflect the principles set out in the Commonwealth Procurement Guidelines (CPGs). We focus on:

§ value for money

§ encouraging competition

§ the efficient, effective and ethical use of Government resources

§ 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 2011–12 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.

Purchasing

Consultants



expertise. The decision to engage a consultant is made in accordance with the CPGs and relevant internal policies.

The Department is required to report on AusTender consultancy contracts awarded where the contract value is $10,000 or more.

Figure 3.7 Trends in consultancies

Consultancies 2009–10 2010–11 2011–12

Number of existing consultancies 4 6 5

Number of new consultancies 34 26 33

Total consultancies 38 32 38

Total expenditure $1.26m $4.21m $1.76m

Freedom of information

Agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report.

Figure 3.8 Freedom of information requests and performance

FOI requests handled 2009-10 2010-11 2011–12

Requests on hand at 1 July 18 42 55

New requests received 92 174 208

Requests withdrawn 26 47 78

Requests transferred to other agencies 7 21 21

Requests resolved 35 93 129Timeliness of responses

Requests dealt with in line with FOI Act deadlines 51% 78% 75%

Please refer to the AusTender website at www.tenders.gov.au.

In 2011–12, we spent a total of $1,757,863 on consultancies: $469,217 on five existing consultancies and $1,288,645 on 33 new consultancy contracts. Details of trends in consultancies are shown in Figure 3.7.

Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements. PM&C’s IPS information, including its plan is at: www.dpmc.gov.au/foi/ips. In 2011–12, documents released in 45 FOI access decisions were posted to the Department’s disclosure log.

http://www.tenders.gov.au

http://www.dpmc.gov.au/foi/ips



Figure 3.9 2011–12 Advertising and market research

Firm Service providedPayments made

in 2011–12Market research organisations

Open Mind Research Group Philanthropy and the arts market research 183,269

All market research organisations 183,269Media advertising organisations

Adcorp Australia Recruitment, state funerals and Community Cabinet meetings

367,215

All media advertising organisations 367,215

of recruitment, advising of state funerals and Community Cabinet meetings.

We also spent a total of $183,269 on market research by Open Mind Research Group for the purposes of researching philanthropy and the arts market. This research commenced prior to the machinery of government change involving the arts and sports functions. The final product was delivered to both PM&C and DRALGAS.

§ the environmental impacts of their operations during the year and measures taken to minimise those impacts (subsection (6)(c), (d) and (e)).

Ecologically sustainable development

As outlined in the Department’s Environmental Policy Statement we are committed to each of the five principles of sustainable development (integration, precaution, intergeneration,

The 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), which requires Australian Government departments to report on:

§ how their activities accord with, and their outcomes contribute to, the principles of ecologically sustainable development (subsection (6)(a) and (b))

In 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.

In 2011–12, PM&C spent a total of $367,215 on the placement of advertising for the purposes

Advertising and market research

Ecologically sustainable development and environmental performance



§ reducing the number of printers to decrease power usage

§ encouraging use of the double-sided printing default setting

§ providing facilities to support staff to ride and walk to work

§ supporting the use of recycled paper and recycling systems.

Our decision-making processes effectively integrate long-term and short-term economic, environmental and social considerations.

Environmental performance

During 2011–12, 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.

NABERS

Our building at One National Circuit was built in accordance with the Australian Building Greenhouse Rating (ABGR) scheme (now the National Australian Built Environment Rating System (NABERS)) to have an energy rating of 4.5 stars. For the period July 2011 to July 2012, 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.

biodiversity and valuation) identified in the EPBC Act, where they apply to our operations. In 2011–12, in order to further the five principles, we continued to:

§ conserve energy, water, paper and other natural resources while still providing a comfortable working environment

§ minimise waste through recycling and using recycled products and materials wherever practical

§ prevent and minimise pollution from our activities

§ provide an environmentally sound workplace and progressively implement a range of environmentally sound work practices

§ include environmental impacts in our purchasing policies where appropriate

§ comply with all relevant Australian Government, and State and Territory environmental legislation, regulations, policies and initiatives

§ foster an environmentally responsible culture throughout PM&C and encourage staff to develop new ideas and initiatives

§ communicate our commitment to staff and the public.

We implemented a number of other strategies to minimise the impact on the environment including:

§ using the TelePresence facilities for many of our meetings with the States and Territories

Figure 3.10 NABERS for the Andrew Fisher Building

Detail Base building Whole building Water

NABERS rating



As part of the EMS, we set goals at the beginning of each financial year and report against achievements of those goals at the end of the financial year (see Figure 3.11).

Figure 3.11 Performance against environment goals

Goal Outcomes achieved

Reduce waste going to landfill

§ recycled 94 per cent of waste from One National Circuit § maintained our waste recording systems, regularly monitoring the level of waste recycling

§ promoted recycling via posters in the building and the use of screensavers

Reduce energy consumption and greenhouse emissions

§ maintained NABERS energy ratings of 4.5 stars for base building and whole of building

§ departmental pool vehicles averaged a Green Vehicle Guide (GVG) rating of 12.43. The whole fleet averaged a GVG rating of 12.74

§ UGL Services completed a carbon footprint report for 2011–12 § 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 2012 for the sixth year in a row § introduced video-conferencing for interviews of interstate and international candidates

Reduce water wastage § continued using the rainwater storage tank in the basement to flush toilets and water the gardens

Environmental Management Committee for One National Circuit

§ held monthly Building Management Committee meetings in line with our Green Lease obligations

§ held two meetings of the Environmental Committee to review energy usage and investigate any anomalies to identify opportunities to reduce energy usage

Increase staff awareness of environmental issues and responsibilities

§ promoted the ride to work and walk to work days in 2011 § continued to provide staff with awareness material through the Go Green @ One National campaign

Annual Environmental Management System Review

§ engaged UGL Services to conduct an annual review (external audit) of our EMS in July 2011

Environmental management system

Our continual commitment to the environment is reflected through our Environmental Management System (EMS), based on the Australian Standard AS/NZS 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.



10 per cent and our base building natural gas consumption reduced by 5.6 per cent.

Carbon footprint

We assess our carbon footprint in accordance with the National Greenhouse Accounts Factors issued by the Department of Climate Change

Figure 3.13 Trends in carbon dioxide emissions

Detail 2009–10 2010–11 2011–12% change from

2010-11

Emissions in tonnes of carbon dioxide equivalent

3,790 CO2-e 4,570 CO

2-e 4,601 CO

2+0.68

Figure 3.14 Trends in emissions by source

Emission item (as a %) 2009–10 2010–11 2011–12% change from

2010-11 to 2011–12

Electricity 56 52 51 -1.92

Air travel 31 36 38 +5.56

Waste to landfill 0 1 0 -100

Supply of electricity 7 6 6 0

Extraction of diesel 0 0 0 0

Extraction of petrol 0 0 0 0

Natural gas 4 3 3 0

Diesel from generator 0 0 0 0

Air conditioning 2 2 2 0

Petrol from pool vehicles 0 0 0 0

Fridges 0 0 0 0Total 100 100 100 Not applicable

Figure 3.12 Trends in energy usage

Energy use 2009–10 2010–11 2011–12 % change

Tenant light and power 1,536,850kWh 1,834,408kWh 1,868,312 kWh +1.85%

Base building electricity 834,712kWh 812,731kWh 731,113 kWh -10%

Natural gas consumption 2,591 GJ 2,178 GJ 2,056 GJ -5.6%

Energy usage at One National Circuit

During 2011–12, our tenant light and power energy usage increased by 1.85 per cent, while our base building electricity decreased by

and Energy Efficiency in July 2010. The outcome for the 2009–10, 2010–11 and 2011–12 carbon footprint assessments is shown below.



Leased vehicles

In 2011–12, departmental pool vehicles averaged a GVG rating of 12.43. The whole fleet averaged a GVG rating of 12.74.

Figure 3.15 Trends in leased vehicle targets

Target 2009–10 2010–11 2011–12 % change

% fleet meeting GVG target 75 82 85 +3.66

Waste management

All 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 the proportion of waste being recycled in order to minimise associated

waste production through efficient consumption of resources and recycling of waste products.

During 2011–12, the percentage of waste recycled reduced to 94 per cent.

Figure 3.16 Trends in recycled waste

Waste 2009–10 2010–11 2011–12

Rubbish – not recycled (%) 4 4 6

Rubbish – recycled (%) 96 96 94

Figure 3.17 Recycled graphic

0

20,000

40,000

2009-10 2010-11 2011-12

60,000

80,000

100,000Rubbish

Total Recycled

88,277

3,932 3,855 5,048

88,513 89,539



Figure 3.18 Trends in breakdown of recycled waste

Recycling item 2009–10 2010–11 2011–12 % change

Paper 36,850 kg 37,110 kg 36,170 kg -2.5%

Towelling paper etc 33,330 kg 34,300 kg 34,970 kg +1.95%

Commingled 3,703.5 kg 3,594.5 kg 3,947 kg +9.8%

Cardboard 10,530 kg 9,850 kg 10,470 kg +6.3%

Printer cartridges 640 kg 625 kg 571 kg -8.6%

Compost 3,027 kg 2,987 kg 3,406 kg +14%

Polystyrene 196 kg 46 kg 5 kg -89%

Feature The Facilities and

Accommodation teamIn the Facilities and Accommodation team our motto is ‘if we are doing our job well the Department shouldn’t notice us doing our job’.

The Facilities and Accommodation team helps the rest of the Department do their job – whether it is something as simple as having a desk adjusted or setting up accommodation for a new taskforce, we are there to help with the minimum of fuss.

Along with helping out with the day-to-day facilities and property business-as-usual activities in the Andrew Fisher Building in the last 12 months, we have delivered some significant property outcomes. The machinery of government change for the Office of the Arts and the Office for Sport kept us busy both during the transition into the Department and when transitioning out.

Along with these major property projects, we responded to the accommodation needs within the Andrew Fisher Building, including space for new taskforces and requirements following the Department’s restructure.

We also act as the ‘behind the scenes’ event manager for the Department, setting up our meeting spaces for large and small events. This includes everything from turning the amenities area into a sophisticated cocktail space for the Centenary Gala celebration and making space for the school holiday program to arranging facilities for the regular all-staff meetings.

We are also responsible for the environmental performance of the Department’s accommodation. We were very proud that the building was included as a green lease case study in April 2012 in the Better Practice Guide for Public Sector Environmental Management published by the Australian National Audit Office.

Photo 3.4 The Facilities and Accommodation Team (L-R: Gai Crawley, Simon Rees, Gillian Bailey and Des Swift)



Water

One National Circuit is highly water efficient and in 2011 the building received a 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, waterless urinals and low-flow showers.

Information technology

The Information Services Branch (ISB) provides information and communication technology (ICT) and business services to business areas within PM&C to enable our outcomes to be met.

During 2011–12, ISB continued to provide the following range of services to PM&C staff and the offices of the Prime Minister, and Portfolio Ministers and Parliamentary Secretaries:

§ core ICT services, telephony management and switchboard operators, secure gateway and web hosting services, web and application services and ICT security services

§ library services, records management, facilities management and accommodation services, and protective security services.

We continued to provide a range of services, via Memoranda of Understanding (MOU), to the Department of Climate Change and Energy Efficiency, the National Water Commission, the COAG Reform Council and the Museum of Australian Democracy at Old Parliament House.

During the year, we implemented a new MOU to deliver a full range of ICT and business services to the Arts and Sport Group of DRALGAS and the National Mental Health Commission. We also established arrangements to provide library services to the Office of National Assessments.

Highlights during 2011–12, included the deployment of a new Standard Operating Environment incorporating Microsoft Windows 7 and Office 2010 and the completion of a project to improve our ICT Disaster Recovery capability. A mobility trial was conducted to assess the use of new emergent technologies to improve access to the Department’s IT services for staff travelling interstate or overseas. We have also supported key policy initiatives by implementing consultation websites such as the National Cultural Policy, Cyber White Paper and the Australia in the Asian Century White Paper, as well as a video competition site that was launched to promote volunteering for young people in 2012.

We successfully completed two significant property projects during the year – the establishment of new office accommodation for the Arts and Sport Group and office accommodation in Sydney for the National Mental Health Commission.

In January 2012, the Library released an online collection of Prime Ministerial transcripts dating from the early 1940s through to the beginning of the Howard government. These transcripts have existed in hard copy within the Department and have now been scanned, optically character recognised and made publicly available. The collection of approximately 40,000 pages includes media releases, speeches and interviews,



and is the most complete collection of Prime Ministerial transcripts in Australia.

Together with the National Archives of Australia, we completed Record Authorities to formalise the archival and preservation

procedures to be used for records of the National Portrait Gallery and the Office for Sport. We continued our work on the management of the records from numerous royal commissions which are some of the nation’s most important historical documents.

In 2011–12, PM&C continued to administer the following grant programs:

§ National Australia Day Council

§ The Australiana Fund

§ Volunteering Australia.

Grant Programs

Further information on grants awarded by the Department during the period 1 July 2011 to 30 June 2012 is available at www.dpmc.gov.au.

Feature Gregory Rofeta: My experience with

PM&C under the Pacific Executive Program

The Pacific Executive (PACE) Program was developed by ANZSOG in collaboration with AusAID to build capacity and strengthen reform in the Pacific region. It is designed for executive level public sector employees who have been identified as emerging and future leaders.

As a participant in the Pacific Executive (PACE) Program 2011–12, I had the privilege of being placed with the Department of the Prime Minister and Cabinet in Canberra. This gave me the opportunity to study Australia’s system of government and also learn more about the support that the Department provides to the Prime Minister as the Head of Government, and to the Cabinet and its committees.

I learnt a lot during my eight weeks with the Department. One of the highlights of my placement was a visit to Hobart with the Community Engagement team where I had the opportunity to observe the team set up and facilitate a Community Cabinet meeting. It was fascinating to see how the wider Tasmanian community voiced their concerns, at times with emotion, face to face with their leaders, and the assurance Ministers or the Prime Minister gave them to look into their concerns. This to me was democracy at its best. I also had the opportunity to visit Parliament in session where I was able to watch heated debates during Question Time.

The meetings I had with a number of officers of the Department were great as I was able to learn from them how PM&C interacts with the Government and the level of policy support and advice that the public service provides.

The major objective of my placement was to draw a comparison between the Australian system of government and the processes in my own country. I feel that I have met that objective. My experiences at PM&C have given me a strong desire to make some improvements to our system when I return to the Solomon Islands.

Photo 3.5 2011 PACE Program participant Gregory Rofeta

http://www.dpmc.gov.au

Part 4:

Financial StatementsHow we are funded 94

Key results 94

Statement by the Secretary and Chief Financial Officer 103

Independent auditor’s report 104

Financial statements 106

Index to the notes of the financial statements 119

94 Part 4: Financial statements


How we are fundedParliament, 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 the Government, which controls how we use them and requires us to account for them separately.

PM&C’s resources are outlined in Figure 4.1 and the allocation of expenses to outcomes and administered items for 2011–12 is detailed in Figure 4.2. 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 performance

Our overall focus is on providing accurate estimates and achieving balanced financial outcomes. Figure 4.2 ‘Expenses by outcome’ details performance against the 2011–12 estimated actuals published in the 2012–13 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.

Key results in 2011–12PM&C received an unqualified audit report on the 2011–12 financial statements from the Australian National Audit Office.

Departmental finances

Income increased from $175.6 million in 2010–11 to $207.9 million in 2011–12. This increase in funding reflects the delivery of the Commonwealth Heads of Government Meeting (CHOGM) 2011 and an increase in the recovery of pass through costs to other agencies.

The Department assumed responsibility for the following functions during 2011–12:

§ Cyber security policy from the Attorney-General’s Department

§ The Prime Minister’s History Prize from the Department of Education, Employment and Workplace Relations (later transferred to the Department of Regional Australia, Local Government, Arts and Sport with the arts and sports functions).

95Part 4: Financial statements


The Department also relinquished responsibility for the following functions:

§ Arts and culture to the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS)

§ Sport and recreation to DRALGAS

§ Mental health reform to the National Mental Health Commission

§ Privacy and freedom of information reform to the Attorney-General’s Department

§ National security grants to the Department of Defence

§ Indigenous Broadcasting and Media Section to the Department of Broadband, Communication and the Digital Economy.

The Department finished the 2011–12 financial year with a $10.5 million deficit. This deficit included $8.2 million of non-appropriated depreciation and amortisation expense and a $2.6 million approved operating loss relating to timing of costs associated with the successful delivery of CHOGM 2011. CHOGM 2011 and the respective funding arrangements is detailed further in Note 1 and Note 13 of the financial statements.

Equity decreased considerably from $189.4 million in 2010–11 to $27.3 million in 2011–12. This is primarily due to the net assets that were relinquished under various machinery of government changes outlined above and the $10.5 million deficit incurred in 2011–12.

2011–12 2010–11 Change

$'m $'m $'mTRENDS IN DEPARTMENTAL FINANCES

Revenue from government 171.4 155.5 15.9

Other revenue 36.5 20.1 16.4

Total income 207.9 175.6 32.3 Employee expenses 109.6 88.5 21.1

Supplier expenses 98.1 66.7 31.4

Other expenses 10.7 21.7 (11)

Total expenses 218.4 176.9 41.5

Deficit attributed to the Australian Government (10.5) (1.3) (9.2)

Plus non-appropriated depreciation and amortisation expense 8.2 6.8 1.4

Surplus/(deficit) attributed to the Department (2.3) 5.5 (7.8)

Financial assets A 24.9 66.6 (41.7)

Non-financial assets B 41.6 183.3 (141.7)

Liabilities C 39.2 60.5 (21.3)

Net assets (A+B-C) 27.3 189.4 (162.1)



Administered finances

The Department administers expenses on behalf of the Government related to: state occasions and official visits; the operational support of the Prime Minister’s official residences; secretariat support for the National Counter-Terrorism Committee; administration of a grant for the National Australia Day Council; support to former Governors-General and management of the national compact, philanthropy and volunteering. The Department also administered both the arts and culture, and sport and recreation functions until they were transferred to DRALGAS under the AAO of 14 December 2011.

Expenses administered on behalf of the Government increased from $400.5 million in 2010–11 to $616.5 million in 2011–12 primarily reflecting the longer period of tenure for the arts and sport functions in the Department during 2011–12.

Financial assets have significantly decreased in 2011–12 reflecting the transfer of the administered investments in Commonwealth Authorities and Companies Act 1997 (CAC Act) bodies to DRALGAS as part of the AAO. Details of the administered investments can be found in Note 20C of the financial statements.

Non-financial assets have decreased by $34.2 million in 2011–12 primarily reflecting the transfer of the National Institute of Dramatic Arts building to DRALGAS.

2011–12 2010–11 Change

$'m $'m $'m TRENDS IN ADMINISTERED FINANCES

Other revenue 2.7 2.6 0.1

Total income 2.7 2.6 0.1

Grant expenses 152.1 102.9 49.2

Supplier expenses 9.6 6.1 3.5

Other expenses 2.8 22.1 (19.3)

CAC Act body payments 451.9 269.4 182.5

Total Expenses 616.5 400.5 216.0 Financial assets 1.0 7,296.2 (7,295.2)

Non-financial assets 1.8 36.0 (34.2)

Liabilities 14.9 18.5 (3.6)



Figure 4.1 - PM&C resource statement

Actual available appropriation

for 2011–12Payments made

2011–12

Remaining balance 2011–12

$’000 $’000 $’000

(a) (b) (a)–(b)Ordinary annual services

Departmental appropriation1 223,101 257,813 (34,712)

Total 223,101 257,813 (34,712)

Administered expenses

Outcome 1: Policy and support 19,427 19,392

Outcome 2: Arts and cultural development

122,689 122,689

Outcome 3: Sport and recreation 20,530 20,530

Payments to CAC Act bodies 426,343 426,343

Total 588,989 588,954

Total ordinary annual services A 812,090 846,767

Other servicesAdministered expenses

Specific payments to States, ACT, NT and local government

- -

Total - -

Departmental non-operating

Equity injections 563 241 322

Total 563 241 322

Administered non-operating

Payments to CAC Act bodies 25,587 25,587

Total 25,587 25,587

Total other services B 26,150 25,828

Special appropriations - -

Total special appropriations C - -

Total appropriation excluding special accounts

838,240 872,595



PM&C resource statement (continued)

Actual available appropriation

for 2011–12Payments made

2011–12

Remaining balance 2011–12

$’000 $’000 $’000

(a) (b) (a)–(b)Special accounts

Opening 11,751 - 11,751

Appropriation receipts 1,096 - 1,096

Non-appropriation receipts to special accounts 2,943 - 2,943

Payments made from special accounts - 2,929 (2,929)

Restructuring - 12,260 (12,260)

Total D 15,790 15,189 601

Total resourcing A+B+C+D 854,030 887,784

Less appropriations drawn from annual or special appropriations above and credited

to special accounts and/or CAC act bodies through annual appropriations 453,026 451,930

Total net resourcing for PM&C 401,004 435,854

1. Appropriation Act (No.1) 2011–12 and Appropriation Act (No.3) 2011–12. This includes prior year appropriations and s31 relevant agency receipts. Further details refer to Note 29 to the financial statements.



Figure 4.2 - Expenses by outcome and program

The following table is prepared on an expense basis. Variations between budgets and actuals partly reflect higher recoverable costs than budget which are allocated to sub programs using an attribution model.

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 2011–12

$’000

Actual 2011–12

$’000Variation

$’000Program 1: Prime Minister and Cabinet

1.1.1: Domestic policyAdministered expenses

Ordinary annual services 6,001 6,024 (23)

(Appropriation Bill 1)

Departmental expenses

Departmental appropriations2 60,808 70,629 (9,821)

Expenses not requiring appropriation in the Budget 4,124 3,531 593

Total for Program 1.1.1 70,933 80,184 (9,251)

1.1.2: National security and international policyAdministered expenses

Ordinary annual services 111 409 (298)



Departmental appropriations2 32,142 28,815 3,327


Total for Program 1.1.2 36,916 33,420 3,496

1.1.3: Support services for government operations Administered expenses

Ordinary annual services 3,918 3,494 424








Budget1 2011–12

$’000

Actual 2011–12

$’000Variation

$’0001.1.5: Commonwealth Heads of Government Meeting 2011


Departmental appropriations2 42,069 42,804 (735)

Expenses not requiring appropriation in the Budget - 472 (472)


1.2: Official and ceremonial support Administered expenses





Expenses not requiring appropriation in the Budget 249 241 8

Total for Program 1.2 12,175 13,792 (1,617)

Budget1 2011–12

$’000

Actual 2011–12

$’000Variation

$’000Outcome 1 totals by appropriation type



(Appropriation Bill No.1)




Total expenses for Outcome 1 199,611 213,468 (13,857)

Average staffing levels (number) 712 691 21

Note: Since the publication of the 2010–11 Annual Report, PM&C has changed the structure of the program components comprising ‘Program 1: Prime Minister and Cabinet’. The table above reflects expenditure and revenue against the revised program structure published in the 2012–13 Portfolio Budget Statements. No costs were incurred against 1.1.4 and as such this program component has been excluded from the table above.

Expenses by outcome and program (continued)



Outcome 2: Participation in, and access to, Australia’s arts and culture through developing and supporting cultural expression.

Budget1 2011–12

$’000

Actual 2011–12

$’000Variation

$’000Program 2.1: Arts and cultural development


Ordinary annual services 129,382 125,132 4,250


Special accounts - - -


Departmental appropriations2 19,461 18,151 1,310

Expenses not requiring appropriation in the Budget 3,285 2,217 1,068

Total expenses for Outcome 2 152,128 145,500 6,628

Average staffing levels (number) 159 159 -

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.

Budget1 2011–12

$’000

Actual 2011–12

$’000Variation

$’000Program 3.1: Sport and recreation


Ordinary annual services 24,322 20,170 4,152


Special accounts 296 424 (128)



Expenses not requiring appropriation in the Budget 118 8 110

Total expenses for Outcome 3 28,054 23,983 4,071

Average staffing levels (number) 30 30 -

1. As per the estimated actual for 2011–12 disclosed in the 2012–13 Portfolio Budget Statements.

2. Departmental appropriation combines “Ordinary annual services (Appropriation Act No.1 and Revenue from independent sources (s31)”

Expenses by outcome and program (continued)



Understanding our financial statements

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 (FMA Act). 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.

§ A schedule of commitments: This shows the Department’s intention to create liabilities or assets, as evidenced by undertakings or agreements to make/obtain future payments to/from other entities.

§ A schedule of contingencies: This details assets and liabilities that have not been recognised in the financial statements because they are contingent on a certain event occurring before they meet the recognition criteria.



Statement by the Chief Executive and Chief Financial Officer



Independent Auditor’s Report




The above statement should be read in conjunction with the accompanying notes.


STATEMENT OF COMPREHENSIVE INCOMEfor the period ended 30 June 2012

2012 2011

Notes $’000 $’000EXPENSES

Employee benefits 3A 109,586 88,468

Supplier 3B 98,139 66,728

Grants 3C 2,257 14,791

Depreciation and amortisation 3D 8,170 6,849

Finance costs 3E 7 23

Write-down and impairment of assets 3F 247 29

Losses from asset sales 3G 1 42

Total expenses 218,407 176,930 LESS OWN-SOURCE INCOME Own-source revenue

Sale of goods and rendering of services 4A 32,182 16,837

Total own-source revenue 32,182 16,837 Gains

Resources received free of charge 4B 4,247 3,220

Reversals of previous asset write-downs and impairment 4C 96 -

Total gains 4,343 3,220

Total own-source income 36,525 20,057 Net cost of services 181,882 156,873

Revenue from Government 4D 171,368 155,541

Deficit attributable to the Australian Government (10,514) (1,332) OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus 5A - 13 Total comprehensive loss attributable to the Australian Government (10,514) (1,319)




BALANCE SHEETas at 30 June 2012

2012 2011

Notes $’000 $’000ASSETS Financial assets

Cash and cash equivalents 6A 2,640 8,013

Trade and other receivables 6B 16,906 52,385

Accrued revenue 6C 5,378 6,189

Total financial assets 24,924 66,587 Non-financial assets

Land and buildings 7A - 81,079

Property, plant and equipment 7B 34,517 95,068

Intangibles 7D 5,795 3,235

Inventories 7F - 53

Other non-financial assets 7G 1,310 3,899

Total non-financial assets 41,622 183,334

Total assets 66,546 249,921 LIABILITIES Payables

Suppliers 8A 7,687 13,874

Grants 8B 399 5,703

Other 8C 3,487 6,802

Total payables 11,573 26,379 Provisions

Employee provisions 9A 21,918 28,867

Other 9B 5,719 5,233

Total provisions 27,637 34,100 Total liabilities 39,210 60,479

Net assets 27,336 189,442 EQUITY

Contributed equity 6,527 158,119

Reserves 8,175 8,175

Retained surplus (accumulated deficit) 12,634 23,148

Total equity 27,336 189,442

Note: The decrease in net assets since 2011 is due to functions relinquished to other Government agencies as part of Administrative Arrangements Orders. Further details of these functions are described in Note 10.



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STATEMENT OF CHANGES IN EQUITYfor the period ended 30 June 2012




STATEMENT OF CASH FLOWSfor the period ended 30 June 2012

2012 2011

Notes $’000 $’000OPERATING ACTIVITIES Cash received

Sales of goods and rendering of services 33,402 20,335

Net GST received 8,738 5,907

Appropriations 211,916 138,688

Other receipts 13,465 -

Total cash received 267,521 164,930 Cash used

Employees 108,032 85,067

Suppliers 123,341 66,149

Grants 7,563 9,725

Section 31 receipts transferred to OPA 28,082 -

Total cash used 267,018 160,941

Net cash from operating activities 11 503 3,989 INVESTING ACTIVITIES Cash received

Proceeds from sales of property, plant and equipment - 27

Total cash received - 27 Cash used

Purchase of property, plant and equipment 10,242 8,319

Purchase of intangibles 4,254 977


Net cash used by investing activities (14,496) (9,269) FINANCING ACTIVITIES Cash received

Appropriations - equity injections 3,552 1,616

Appropriations - Departmental Capital Budget 5,068 3,487

Total cash received 8,620 5,103

Net cash from (used by) financing activities 8,620 5,103 Net decrease in cash held (5,373) (177)

Cash and cash equivalents at the beginning of the reporting period

8,013 739

Cash received - restructuring - 7,451

Cash and cash equivalents at the end of the reporting period 6A 2,640 8,013



SCHEDULE OF COMMITMENTSas at 30 June 2012

2012 2011

$’000 $’000BY TYPECommitments receivable

GST recoverable on commitments (11,182) (13,396)

Operating leases (6,381) (6,909)

Total commitments receivable (17,563) (20,305) Commitments payable

Operating leases 115,904 101,024

Grant commitments 1,164 3,116

Other commitments payable 13,965 50,702

Total commitments payable 131,033 154,842

Net commitments by type 113,470 134,537 BY MATURITY Commitments receivable

One year or less (6,290) (8,032)

From one to five years (5,392) (7,307)

Over five years (5,881) (4,966)

Total commitments receivable (17,563) (20,305) Commitments payable Operating lease commitments

One year or less 10,722 9,911

From one to five years 44,916 36,488

Over five years 60,266 54,625

Total operating lease commitments 115,904 101,024 Grant commitments

One year or less 607 3,116

From one to five years 557 -

Over five years - -

Total grant commitments 1,164 3,116 Other commitments



Over five years - -

Total other commitments 13,965 50,702


Net commitments by maturity 113,470 134,537

Note: Commitments are GST inclusive where relevant.



SCHEDULE OF COMMITMENTSas at 30 June 2012

Operating lease commitment - leases for office accommodation

Office accommodation lease payments are subject to periodic increases in accordance with the rent review provisions of the lease. The lease for One National Circuit, Barton, ACT, 2600 commenced during 2006–07 for a period of 15 years.

The lease for the National Mental Health Commission commenced during 2011–12 for a period of seven years.

Other commitments payable/receivable

Other 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 officers

No contingent rentals exist. There are no renewal or purchase options available to the Department for motor vehicle leases.




SCHEDULE OF CONTINGENCIESas at 30 June 2012

2012 2011

$’000 $’000Contingent assets

Claims for damages or costs 99 -

Total departmental contingent assets 99 -

Details of contingent assets in the above table are disclosed in Note 12, along with information on significant remote contingencies and contingencies that cannot be quantified.

There were no departmental contingent liabilities or assets reported in 2010–11.




SCHEDULE OF ADMINISTERED COMPREHENSIVE INCOMEfor the period ended 30 June 2012

2012 2011

Notes $’000 $’000EXPENSES

Employee benefits 18A 828 887

Suppliers 18B 9,582 6,087

Grants 18C 152,135 102,960

Depreciation and amortisation 18D 1,428 922

Royalties 18E - 19,652

Finance costs 18F 566 570

Write-down and impairment of assets 18G 4 2

Payment to CAC Act bodies 18H 451,930 269,429

Total expenses administered on behalf of Government 616,473 400,509 LESS OWN-SOURCE INCOME Own-source revenue Non-taxation revenue

Interest 19A 100 165

Other 19B 2,587 1,475

Total non-taxation revenue 2,687 1,640

Total own-source revenue administered on behalf of Government 2,687 1,640 Gains

Other gains 19C - 1,000

Total gains administered on behalf of Government - 1,000

Total own-source income administered on behalf of Government 2,687 2,640 Net cost of services 613,786 397,869

Deficit (613,786) (397,869)

OTHER COMPREHENSIVE INCOME

Actuarial losses relating to former Governors-General entitlements (3,627) (210)

Total comprehensive income (3,627) (210) Total comprehensive loss (617,413) (398,079)




SCHEDULE OF ADMINISTERED ASSETS AND LIABILITIESas at 30 June 2012

2012 2011

Notes $’000 $’000ASSETS Financial assets

Cash and cash equivalents 20A 1 148

Receivables 20B 71 10,304

Other investments 20C 964 7,285,708

Total financial assets 1,036 7,296,160 Non-financial assets

Land and buildings 21A/C - 33,879

Property, plant and equipment 21B/C 1,788 1,929

Other non-financial assets 21D 97 221

Total non-financial assets 1,885 36,029 Total assets administered on behalf of Government 2,921 7,332,189

LIABILITIES Payables

Suppliers 22A 345 3,926

Grants 22B 388 3,361

Other payables 22C 56 72

Total payables 789 7,359 Provisions

Employee provisions 23A 370 344

Non-cash benefits - former Governors-General benefits 23B 13,640 10,668

Other provisions 23C 132 126

Total provisions 14,142 11,138 Total liabilities administered on behalf of Government 14,931 18,497

Net liabilities (12,010) 7,313,692




ADMINISTERED RECONCILIATION SCHEDULEfor the period ended at 30 June 2012

2012 2011

$’000 $’000Opening administered assets less administered liabilities as at 1 July 7,313,692 31,617

Plus:

Administered income 2,687 2,638

Less:

Administered expenses (non CAC Act) (164,543) (131,080)

Payments to CAC Act bodies (451,930) (269,429)

Administered transfers to/from the Australian Government

Appropriation transfers from OPA

Annual appropriation for administered expenses (non CAC Act) 180,681 150,735

Annual appropriation for payment to CAC Act bodies 451 930 276,468

Transfers to OPA (16,379) (6,295)

Movement in make good - 4

Restructuring (7,324,665) 7,248,815

Administered investments 144 10,429

Revaluation of liabilities relating to former Governors-General entitlements (3,627) (210)

Closing administered assets less administered liabilities as at 30 June (12,010) 7,313,692





SCHEDULE OF ADMINISTERED CASH FLOWSfor the period ended at 30 June 2012

2012 2011

Notes $’000 $’000OPERATING ACTIVITIES Cash received

Net GST received 5,770 4,365

Other 5,723 2,956

Total cash received 11,493 7,321 Cash used

Employees 799 802

Suppliers 19,628 5,791

Grant payments 155,109 123,820

Royalties paid - 19,652

CAC Act body payments 451,930 269,429


Net cash used by operating activities 24 (615,973) (412,173) INVESTING ACTIVITIES Cash used

Purchase of property, plant and equipment 409 1,560

CAC Act body investments - 7,039

Total cash used 409 8,599 Net cash used by investing activities (409) (8,599)

Net decrease in cash held (616,382) (420,772)

Cash and cash equivalents at the beginning of the reporting period 148 12

Cash from OPA for:

Appropriations 632,614 427,203

632,614 427,203

Cash to OPA for:

Appropriations (16,379) (6,295)

(16,379) (6,295) Cash and cash equivalents at the end of the reporting period 20A 1 148



SCHEDULE OF ADMINISTERED COMMITMENTSas at 30 June 2012

2012 2011

$’000 $’000BY TYPE Commitments receivable

GST recoverable on commitments (1,425) (2,514)

Total commitments receivable (1,425) (2,514) Commitments payable

Operating leases 1,890 2,141

Research and development 13,365 25,724

Other commitments payable 425 256


Net commitments by type 14,255 25,607 BY MATURITY Commitments receivable

One year or less (568) (2,041)

From one to five years (845) (472)

Over five years (12) (1)

Total commitments receivable (1,425) (2,514) Commitments payable Operating lease commitments

One year or less 612 680


Over five years 134 13

Total operating lease commitments 1,890 2,141 Research and development commitments



Over five years - -

Total research and development commitments 13,365 25,724 Other commitments

One year or less 226 213

From one to five years 199 43

Over five years - -

Total other commitments 425 256

Net commitments by maturity 14,255 25,607

Note: Commitments are GST inclusive where relevant.

General description of leasing arrangements

Operating 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.




SCHEDULE OF ADMINISTERED CONTINGENCIESas at 30 June 2012

2012 2011

$’000 $’000Administered contingent liabilities

Claims for damages or costs - 70

Total administered contingent liabilities - 70

Details of contingent liabilities in the above table are disclosed in Note 25, along with information of significant remote contingencies and contingencies that cannot be quantified.

There were no contingent assets disclosed in 2011–12.



INDEX TO THE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the period ended at 30 June 2012

Note 1. Summary of significant accounting policies ........................................................................120

Note 2. Events after the reporting period .........................................................................................132

Note 3. Expenses ...............................................................................................................................133

Note 4. Income ..................................................................................................................................135

Note 5. Other comprehensive income ..............................................................................................136

Note 6. Financial assets .....................................................................................................................137

Note 7. Non-financial assets ..............................................................................................................139

Note 8. Payables .................................................................................................................................146

Note 9. Provisions .............................................................................................................................. 147

Note 10. Restructuring ........................................................................................................................148

Note 11. Cash flow reconciliation ......................................................................................................155

Note 12. Contingent assets and liabilities ..........................................................................................156

Note 13. Impact of CHOGM Taskforce on the 2012 statement of comprehensive income .............157

Note 14. Senior executive remuneration ............................................................................................158

Note 15. Remuneration of auditors ....................................................................................................165

Note 16. Financial instruments ..........................................................................................................166

Note 17. Financial assets reconciliation .............................................................................................169

Note 18. Administered expenses ........................................................................................................ 170

Note 19. Administered income ........................................................................................................... 172

Note 20. Administered financial assets .............................................................................................. 173

Note 21. Administered non-financial assets ....................................................................................... 175

Note 22. Administered payables ......................................................................................................... 179

Note 23. Administered provisions ......................................................................................................180

Note 24. Administered cash flow reconciliation ................................................................................182

Note 25. Administered contingent assets and liabilities ....................................................................183

Note 26. Administered investments ...................................................................................................184

Note 27. Administered financial instruments ...................................................................................185

Note 28. Administered financial assets reconciliation ......................................................................189

Note 29. Appropriations .....................................................................................................................190

Note 30. Special accounts and FMA Act section 39 investments ....................................................197

Note 31. Compensation and debt relief..............................................................................................201

Note 32. Assets held in trust ...............................................................................................................202

Note 33. Reporting of outcomes .........................................................................................................203

Note 34. Net cash appropriation arrangements .................................................................................208


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the period ended at 30 June 2012


Note 1. Summary of significant accounting policies

1.1 Objectives of the Department

The Department of the Prime Minister and Cabinet (the Department) is a not-for-profit Australian Government controlled Department of State.

The objective of the Department is to provide policy advice and support to the Prime Minister, the Cabinet, Cabinet Committee Chairs, and Portfolio Ministers and Parliamentary Secretaries.

The Department is structured to meet the following outcome:

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.

In 2011–12 the Department’s activities were identified under the following programs and program components:

Program 1.1: Prime Minister and Cabinet

§ Program 1.1.1: Domestic policy

§ Program 1.1.2: National security and international policy

§ Program 1.1.3: Strategic policy and implementation

§ Program 1.1.4: Support services for government operations

§ Program 1.1.5: Commonwealth Heads of Government Meeting 2011.

Program 1.2: Official and Ceremonial Support

§ Program 1.2: Official and ceremonial support.

The Department administers on behalf of the Government, the following activities:

Program 1.1: Prime Minister and Cabinet

§ Volunteer management program

§ Secretariat support to the National Counter-Terrorism Committee

§ Parliamentary House Briefing Room

§ Grant payments to the National Australia Day Council Limited

§ Compensation and legal expenses.

Program 1.2: Official and ceremonial support

§ Operations support for the Prime Minister’s official residences

§ Support to former Governors-General

§ State occasions and official visits.




Machinery of government changes announced during the 2011–12 financial year resulted in the transfer of the following outcomes to the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS):

§ 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.

Machinery of government changes resulted in material variances between 2010–11 and 2011–12.

Further details of other functions relinquished and assumed as part the 2012 Machinery of government changes that fall within existing outcomes are detailed in Note 10.

The continued existence of the Department in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Department’s administration and programs.

The Department’s activities contributing toward these outcomes are classified 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.

1.2 Basis of preparation of the financial statements

The financial statements are general purpose financial statements and are required by section 49 of the FMA Act.

The financial statements have been prepared in accordance with:

§ Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011

§ Australian Accounting Standards and interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except where certain assets and liabilities are recorded 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 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. Liabilities and assets that are unrecognised are reported in the schedule of commitments or 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.




1.3 Significant 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 significant impact on the amounts recorded in the financial statements:

§ the provision for employee entitlements is based on the actuarial assessment determined by the Australian Government Actuary

§ the provision for non-cash former Governors-General entitlements is based on the actuarial assessment determined by the Australian Government Actuary

§ the provision for the restoration of leased premises (make good).

The Department made no other assumptions or estimates identified as having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

1.4 New Australian accounting standards

Adoption of New Australian Accounting Standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

The following revised standards and interpretations were issued prior to the sign-off date, were applicable to the current reporting period and had a financial impact on the Department:

§ AASB 7 - Financial Instruments: Disclosures - November 2010 (Compilation)

§ AASB 101 - Presentation of Financial Statements - May 2011 (Compilation)

§ AASB 108 - Accounting Policies, Changes in Accounting Estimates and Errors - May 2011 (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 132 - Financial Instruments: Presentation - May 2011 (Compilation)

§ AASB 137 - Provisions, Contingent Liabilities and Contingent Assets - October 2010 (Compilation)

§ AASB 139 - Financial Instruments: Recognition and Measurement - October 2010 (Compilation)

§ Interp. 132 - Intangible Assets – Web Site Costs - October 2010 (Compilation)

§ Interp. 115 - Operating Leases – Incentives - October 2010 (Compilation).

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the Department.




Future Australian Accounting Standard requirements

The following new or reissued standards were issued by the Australian Accounting Standards Board prior to the sign-off date, and are expected to have a financial impact on the Department for future reporting periods:

§ AASB 9 - Financial Instruments - December 2010 (Principal)

§ AASB 13 - Fair Value Measurement - September 2011 (Principal)

§ AASB 119 - Employee Benefits - September 2011 (Principal).

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the future reporting period are not expected to have a future financial impact on the Department.

1.5 Revenue

Revenue 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 effective control over the goods

§ the revenue and transaction costs incurred can be reliably measured

§ it is probable that the economic benefits associated with the transaction will flow to the Department.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

§ the amount of revenue, stage of completion and transaction costs incurred can be reliably measured

§ the probable economic benefits associated with the transaction will flow to the Department.

The stage of completion of contracts at the reporting date is determined by reference to the proportion of 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 the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 - Financial Instruments: Recognition and Measurement.

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue from Government 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. Appropriations receivable are recognised at their nominal amounts.

Funding received or receivable from agencies (appropriated to the agency as a CAC Act body payment item for payment to this entity) is recognised as revenue from Government by the CAC Act body unless the funding is in the nature of an equity injection or a loan.




1.6 Gains

Resources received free of charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements.

Sale of assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Australian Government as owner

Equity injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets are recognised directly in contributed equity in that year.

Restructuring of administrative arrangements

Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Return of Commonwealth Heads of Government Meeting 2011 funding

The Department was funded for the Commonwealth Heads of Government Meeting (CHOGM) 2011 on a no win / no loss basis. No win / no loss funding represents funding provided to agencies for programs that are not intended to financially benefit or disadvantage an agency. The funds can only be used for the specified purpose for which they are appropriated. Any surplus funds must be returned to the Budget and additional funding will be provided for any overspends incurred. The Department is expecting to return surplus funds to the Budget once the expenditure acquittal for the event has been completed (refer Note 13).

1.8 Grants

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.




1.9 Employee benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 - Employee Benefits) and termination benefits due within 12 months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No 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.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Department’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined at 30 June 2012 by reference to the work of an actuary. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. The Department recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

The Department’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or another fund of their choice.

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 in the Department of Finance and Deregulation’s (Finance) administered schedules and notes.

The Department makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. 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 for the final fortnight of the year.




1.10 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. 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 at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

1.11 Borrowing costs

All borrowing costs are expensed as incurred.

1.12 Cash and cash equivalents

Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, 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 insignificant risk of changes in value and cash in special accounts.

1.13 Financial assets

The Department classifies its financial assets as loans and receivables. Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Impairment of financial assets

Financial assets are assessed for impairment at the end of each reporting period. If there is objective evidence that an impairment loss has been incurred for loans and receivables, 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 statement of comprehensive income.




1.14 Financial liabilities

All financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These 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 assets

Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which 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 contracts

Financial 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.

1.17 Acquisition of assets

Assets are recorded at cost on acquisition except as stated below. The 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 income 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 as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.




1.18 Infrastructure, plant and equipment

Asset recognition threshold

Purchases 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 significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This 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. These costs are included in the value of the Department’s 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 measurementBuildings excluding leasehold improvements Market selling price

Leasehold improvements Depreciated replacement cost

Infrastructure, plant and equipment Market selling price

Following initial recognition at cost, property, plant and equipment were carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended 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 reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable 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), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.




Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2012 2011Departmental assets

Buildings on freehold land N/A N/A

Leasehold improvements Lease term Lease term

Plant and equipment 1 to 50 years 4 to 10 years

Administered assets

Buildings on freehold land N/A 100 years

Leasehold improvements Lease term Lease term

Plant and equipment 4 to 112 years 4 to 112 years

Impairment

All assets were assessed for impairment during April 2012 as part of the stocktake process. 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.

The 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 flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, 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.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Heritage and cultural assets

Heritage and cultural items include artworks held by the National Portrait Gallery (NPG) and Artbank that are of national, historical or cultural significance.

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.

The 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.

The NPG and Artbank were transferred to DRALGAS as part of the Administrative Arrangements Order (AAO) of 14 December 2011.

Accommodation fit-out

Property, plant and equipment includes accommodation fit-out assets for eight leases including the Department’s primary office at One National Circuit, Barton, ACT, 2600.




1.19 Intangibles

The Department’s intangibles primarily comprise internally developed software for internal use. 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 two to seven years.

All software assets were assessed for indications of impairment during 2011–12.

1.20 Taxation

The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

§ where the amount of GST incurred is not recoverable from the Australian Taxation Office

§ for receivables and payables

§ commitments payable and receivable.

1.21 Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules 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 Australian Accounting Standards.

Administered cash transfers to and from the Official Public Account (OPA)

Revenue collected by the Department for use by the Government rather than the Department is administered revenue. Collections are transferred to the OPA maintained by Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These 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 schedule of administered cash flows and in the administered reconciliation schedule.

Revenue

All administered revenues are revenues relating to ordinary activities performed by the Department on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

Loans and receivables

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through the schedule of administered comprehensive income.




Former Governors-General benefits

The Department has responsibility for the administration of non-cash benefits provided to former Governors-General. These entitlements are regarded as post-employment benefits and represent the provision of office facilities, administrative support and transport. A future liability for these benefits is recognised in the administered accounts.

Administered investments

Administered investments in subsidiaries, joint ventures and associates are not consolidated because their consolidation is relevant only at the whole-of-government level.

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 2012. 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 reporting period.

Administered employee benefits

The 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.

Grants

The Department administers a number of grants on behalf of the Government.

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.

Payments to CAC Act bodies

Payments 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 appropriation to the Department is disclosed in Note 29A.




Note 2. Events after the reporting periodDepartmental

A contingent asset of $98,842 reported in the departmental schedule of contingencies crystallised after the reporting period following both parties reaching a settlement agreement. The Department has finalised the settlement in 2012–13.

There were no other known events occurring after the reporting period that could impact on the financial statements.

Administered

There are no known events occurring after the reporting period that could impact on the financial statements.




Note 3. Expenses1

2012 2011

$’000 $’000

Note 3A: Employee benefits

Wages and salaries 77,476 64,995

Superannuation:

Defined contribution plans 8,964 8,072

Defined benefit plans 5,755 4,167

Leave and other entitlements 15,107 10,222

Separation and redundancies 785 540

Other 1,499 472

Total employee benefits 109,586 88,468

Note 3B: Supplier

Goods and services

Consultants, legal, contractors and secondees 23,451 20,304

Equipment, repairs and maintenance 2,233 2,044

General expenses 12,480 6,495

Office accommodation, facility management and security 7,445 3,103

Information and communication technology2 31,663 19,200

Travel and accommodation 8,462 4,348

Total goods and services 85,734 55,494 Goods and services are made up of:

Provision of goods - related entities 613 182

Provision of goods - external parties 5,624 3,600

Rendering of services - related entities 21,308 12,377

Rendering of services - external parties 58,189 39,335

Total goods and services 85,734 55,494 Other supplier expenses

Operating lease rentals - external parties:

Minimum lease payments 11,223 10,492

Workers compensation expenses 1,182 742

Total other supplier expenses 12,405 11,234

Total supplier expenses 98,139 66,728




2012 2011

$’000 $’000

Note 3C: Grants

Public sector:

Australian Government entities (related entities) 237 2,261

State and Territory governments 370 1,382

International governments 39 390

Private sector:

Non-profit organisations 1,611 5,758

Overseas organisations - 5,000

Total grants 2,257 14,7911 2012 expenses include costs associated with the successful delivery of the Commonwealth Heads of

Government Meeting 2011. Further details on the impact of this event to PM&C’s accounts are detailed in Note 13.

2 Includes costs for the delivery of goods and services provided to other Commonwealth agencies. A corresponding increase in revenue is shown in Note 4.

Note 3D: Depreciation and amortisation

Depreciation

Buildings 1,269 912

Property, plant and equipment 5,454 4,889

Total depreciation 6,723 5,801 Amortisation

Intangibles - computer software 1,447 1,048

Total amortisation 1,447 1,048

Total depreciation and amortisation 8,170 6,849

Note 3E: Finance costs

Unwinding of discount on make good 7 23

Total finance costs 7 23

Note 3F: Write-down and impairment of assets

Asset write-downs and impairments from:

Impairment of property, plant and equipment 247 29

Total write-down and impairment of assets 247 29

Note 3G: Losses from asset sales

Property, plant and equipment:

Proceeds from sale - (27)

Carrying value of assets sold 1 69

Total losses from asset sales 1 42




Note 4. Income2012 2011

$’000 $’000REVENUE

Note 4A: Sale of goods and rendering of services

Provision of goods - related entities - 114

Provision of goods - external parties 13 1,560


Rendering of services - external parties 11,245 6,581

Total sale of goods and rendering of services 32,182 16,837

GAINS

Note 4B: Resources received free of charge

Seconded staff 3,436 2,833

ANAO audit fee 185 185

Assets received free of charge 626 202

Total other gains 4,247 3,220

Note 4C: Reversals of previous asset write-downs and impairment

Reversal of previous asset write-downs 96 -

Total reversals of previous asset write-downs and impairments 96 -

REVENUE FROM GOVERNMENT

Note 4D: Revenue from Government

Appropriations:

Departmental appropriation 171,368 155,541

Total revenue from Government 171,368 155,541




Note 5. Other comprehensive income 2012 2011

$’000 $’000

Note 5A: Changes in asset revaluation surplus

Revaluation of make good - 13

Total changes in asset revaluation surplus - 13




Note 6. Financial assets 2012 2011

$’000 $’000

Note 6A: Cash and cash equivalents

Cash on hand or on deposit 2,640 636

Special accounts - 7,377

Total cash and cash equivalents 2,640 8,013

Note 6B: Trade and other receivables

Good and services

Goods and services - related entities 5,077 1,675

Goods and services - external parties 268 1,327

Total receivables for goods and services 5,345 3,002 Appropriations receivable

For existing programs 11,081 41,077

For departmental supplementations - 5,201

For special accounts - 3,199

Total appropriations receivable 11,081 49,477 Other receivables

GST receivable from the Australian Taxation Office (ATO) 480 7

Total other receivables 480 7

Total trade and other receivables (gross) 16,906 52,486 Less impairment allowance account:

Goods and services - 101

Total impairment allowance account - 101

Total trade and other receivables (net) 16,906 52,385 Receivables are expected to be recovered in:

No more than 12 months 16,906 52,385

More than 12 months - -

Total trade and other receivables (net) 16,906 52,385 Receivables are aged as follows:

Not overdue 16,212 52,046

Overdue by:

0 to 30 days 133 260

31 to 60 days - 55

61 to 90 days 450 34

More than 90 days 111 91

Total receivables (gross) 16,906 52,486




2012 2011

$’000 $’000

The 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

Movements in relation to 2012

Goods and services Total

$’000 $’000Opening balance 101 101

Amounts written off - -

Amounts recovered and reversed (96) (96)

Amounts recognised - restructure (Note 10) (5) (5)

Increase/decrease recognised in net surplus - -

Closing balance - - Movements in relation to 2011

Goods and services Total

$’000 $’000Opening balance - -

Amounts written off (15) (15)

Amounts recovered and reversed - -

Amount recognised - restructure (Note 10) 116 116

Increase/decrease recognised in net surplus - -

Closing balance 101 101

Note 6C: Accrued revenue

Provision of shared services 5,378 6,189

Total accrued revenue 5,378 6,189 Accrued revenues are expected to be recovered in:



Total accrued revenue 5,378 6,189




Note 7. Non-financial assets 2012 2011

$’000 $’000

Note 7A: Buildings

Buildings on freehold land

Fair value - 85,425

Accumulated depreciation - (4,397)

Total buildings on freehold land - 81,028 Leasehold improvements

Fair value - 171

Accumulated depreciation - (120)

Total leasehold improvements - 51

Total buildings - 81,079

Note 7B: Property, plant and equipment

Heritage and cultural

Fair value - 59,675

Accumulated depreciation - (211)

Total heritage and cultural - 59,464 Other property, plant and equipment

Fair value 37,738 36,530

Accumulated depreciation (10,098) (6,242)

Work in progress 6,877 5,316

Total other property, plant and equipment 34,517 35,604

Total property, plant and equipment 34,517 95,068

No indicators of impairment were found for non-financial 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 2011–12 for buildings or property, plant and equipment. (2010–11: Nil).




Not

e 7C

: Rec

onci

liati

on o

f the

ope

nin

g an

d cl

osin

g ba

lanc

es o

f pro

pert

y, p

lant

and

equ

ipm

ent (

2011

–12)

B

uild

ings

Lea

seho

ld

impr

ovem

ents

Tot

al

land

and

bu

ildi

ngs

Her

itag

e an

d cu

ltur

al

Oth

er

prop

erty

, pl

ant &

eq

uipm

ent

Tot

al

$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0A

s at

1 Ju

ly 2

011

Wor

k in

pro

gres

s-

--

-5,

316

5,31

6

Gro

ss b

ook

valu

e85

,425

171

85,5

9659

,675

36,5

3018

1,80

1

Acc

umul

ated

dep

reci

atio

n/a

mor

tisa

tion

and

impa

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ent

(4,3

97)

(120

)(4

,517

)(2

11)

(6,2

42)

(10,

970)

Net

boo

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1 Ju

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81,0

2851

81,0

7959

,464

35,6

0417

6,14

7

Add

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ns:

By

purc

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--

-1,

431

8,80

010

,231

Impa

irm

ents

rec

ogni

sed

in t

he o

pera

ting

res

ult

--

--

(247

)(2

47)

Dep

reci

atio

n ex

pen

se(1

,269

)(1

1)(1

,280

)(1

26)

(5,3

17)

(6,7

23)

Dis

posa

ls:

Fro

m d

ispo

sal o

f ent

itie

s or

ope

rati

ons

(incl

udin

g re

stru

ctur

ing)

(79,

759)

(40)

(79,

799)

(60,

769)

(4,3

22)

(144

,890

)

Oth

er d

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--

--

(1)

(1)

Net

boo

k va

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30 Ju

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012

--

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34,5

1734

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N

et b

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of 3

0 Ju

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repr

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ted

by

Wor

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s-

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-6,

877

6,87

7

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-37

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37,7

38

Acc

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dep

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-(1

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0 Ju

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--

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34,5

1734

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Not

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f the

ope

nin

g an

d cl

osin

g ba

lanc

es o

f pro

pert

y, p

lant

and

equ

ipm

ent (

2010

–11)

B

uild

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Lea

seho

ld

impr

ovem

ents

Tota

l la

nd a

nd

build

ings

Her

itag

e an

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ltur

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Oth

er

prop

erty

, pl

ant &

eq

uipm

ent

Tota

l

$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0A

s at

1 Ju

ly 2

010

Wor

k in

pro

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s-

--

-70

70

Gro

ss b

ook

valu

e-

--

-32

,629

32,6

29

Acc

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dep

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n/a

mor

tisa

tion

and

impa

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--

--

(672

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72)

Net

boo

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1 Ju

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--

--

32,0

2732

,027

A

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By

purc

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-19

1990

17,

601

8,52

1

Fro

m a

cqui

siti

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f ent

itie

s or

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rati

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(incl

udin

g re

stru

ctur

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81,9

3438

81,9

7258

,708

1,08

614

1,76

6

Impa

irm

ents

rec

ogni

sed

in t

he o

pera

ting

res

ult

--

--

(6)

(6)

Dep

reci

atio

n ex

pen

se(9

06)

(6)

(912

)(7

6)(4

,813

)(5

,801

)

Dis

posa

ls:

Fro

m d

ispo

sal o

f ent

itie

s or

ope

rati

ons

(incl

udin

g re

stru

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--

--

(291

)(2

91)

Oth

er d

ispo

sals

--

-(6

9)-

(69)

Net

boo

k va

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30 Ju

ne 2

011

81,0

2851

81,0

7959

,464

35,6

0417

6,14

7

Net

boo

k va

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as o

f 30

June

201

1 re

pres

ente

d by

Wor

k in

pro

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s-

--

-5,

316

5,31

6

Gro

ss b

ook

valu

e85

,425

171

85,5

9659

,675

36,5

3018

1,80

1

Acc

umul

ated

dep

reci

atio

n an

d im

pair

men

t(4

,397

)(1

20)

(4,5

17)

(211

)(6

,242

)(1

0,97

0)

Clo

sin

g ne

t boo

k va

lue

at 3

0 Ju

ne 2

011

81,0

2851

81,0

7959

,464

35,6

0417

6,14

7




2012 2011

$’000 $’000

Note 7D: Intangibles

Computer software

Internally developed - in progress 2,548 1,027

Internally developed - in use 4,655 4,991

Purchased 3,040 336

Total intangibles (gross) 10,243 6,354 Accumulated amortisation (4,448) (3,119)

Total intangibles (net) 5,795 3,235

No indicators of impairment were found for intangible assets.

No intangibles are expected to be sold or disposed of within the next 12 months.




Not

e 7E

: Rec

onci

liati

on o

f the

ope

nin

g an

d cl

osin

g ba

lanc

es o

f int

angi

bles

(201

1–12

)

C

ompu

ter

soft

war

e in

tern

ally

dev

elop

edC

ompu

ter

sof

twar

e pu

rcha

sed

Tot

al

$’

000

$’00

0$’

000

As

at 1

July

201

1

Wor

k in

pro

gres

s1,

027

-1,

027

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ss b

ook

valu

e3,

987

1,34

05,

327

Acc

umul

ated

am

orti

sati

on a

nd im

pair

men

t(2

,257

)(8

62)

(3,1

19)

Net

boo

k va

lue

1 Ju

ly 2

011

2,75

747

83,

235

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itio

ns:

By

purc

hase

or

inte

rnal

dev

elop

men

t2,

362

1,88

94,

251

Am

orti

sati

on(1

,068

)(3

79)

(1,4

47)

Dis

posa

ls:

Fro

m d

ispo

sal o

f ent

itie

s or

ope

rati

ons

(incl

udin

g re

stru

ctur

ing)

(131

)(1

13)

(244

)

Net

boo

k va

lue

30 J

une

2012

3,92

01,

875

5,79

5

N

et b

ook

valu

e as

of 3

0 Ju

ne 2

012

repr

esen

ted

by

Wor

k in

pro

gres

s2,

548

-2,

548

Gro

ss b

ook

valu

e4,

655

3,04

07,

695

Acc

umul

ated

am

orti

sati

on a

nd im

pair

men

t(3

,283

)(1

,165

)(4

,448

)

3,

920

1,87

55,

795




Not

e 7E

: Rec

onci

liati

on o

f the

ope

nin

g an

d cl

osin

g ba

lanc

es o

f int

angi

bles

(201

0–11

)

C

ompu

ter

soft

war

e in

tern

ally

dev

elop

edC

ompu

ter

sof

twar

e pu

rcha

sed

Tota

l

$’

000

$’00

0$’

000

As

at 1

July

201

0

Wor

k in

pro

gres

s38

5-

385

Gro

ss b

ook

valu

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859

1,02

84,

887

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umul

ated

am

orti

sati

on a

nd im

pair

men

t(1

,376

)(6

42)

(2,0

18)

Net

boo

k va

lue

1 Ju

ly 2

010

2,86

838

63,

254

Add

itio

ns:

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purc

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or

inte

rnal

dev

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Fro

m a

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siti

ons

of e

ntit

ies

or o

pera

tion

s (in

clud

ing

rest

ruct

urin

g)-

5252

Am

orti

sati

on(8

28)

(220

)(1

,048

)

Dis

posa

ls:

Oth

er-

--

Net

boo

k va

lue

30 Ju

ne 2

011

2,75

747

83,

235

Net

boo

k va

lue

as o

f 30

June

201

1 re

pres

ente

d by

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k in

pro

gres

s1,

027

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027

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ss b

ook

valu

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umul

ated

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orti

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on a

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sin

g ne

t boo

k va

lue

at 3

0 Ju

ne 2

011

2,75

747

83,

235




2012 2011

$’000 $’000

Note 7F: Inventories Inventories held for sale:

Finished goods - 53

Total inventories held for sale - 53

Total inventories - 53

Note 7G: Other non-financial assets Prepayments 1,310 3,899

Total prepayments 1,310 3,899 Payments are expected to be recovered in:


More than 12 months 71 77

Total prepayments 1,310 3,899

No indicators of impairment were found for other non-financial assets.




Note 8. Payables 2012 2011

$’000 $’000

Note 8A: Suppliers

Trade creditors 7,687 13,874

Total suppliers payable 7,687 13,874 Supplier payables are expected to be settled within 12 months:

Related entities 533 1,940

External parties 7,154 11,934

Total suppliers payable 7,687 13,874

Settlement is usually made within 30 days.

Note 8B: Grants

Public sector:

Australian Government entities (related entities) 28 -

Private sector:

Non-profit organisations 371 5,703

Total grants 399 5,703 Total grants are expected to be settled in:

No more than 12 months 399 5,703


Total grants 399 5,703

Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.

Note 8C: Other payables

Salaries and wages 2,034 2,771

Separation and redundancies payable 413 -

Superannuation 300 362

Other 238 187

Unearned income 502 3,482

Total other payables 3,487 6,802 Total other payables are expected to be settled in:


More than 12 months - 256

Total other payables 3,487 6,802




Note 9. Provisions 2012 2011

$’000 $’000

Note 9A: Employee provisions

Annual leave 9,117 12,689

Long service leave 12,801 16,178

Total employee provisions 21,918 28,867 Employee provisions are expected to be settled in:


More than 12 months 3,805 5,323

Total employee provisions 21,918 28,867

Note 9B: Other provisions

Lease provision 5,057 4,543

Make good provision 375 384

Provision for lease incentive 287 306

Total other provisions 5,719 5,233 Other provisions are expected to be settled in:

No more than 12 months 169 134

More than 12 months 5,550 5,099

Total other provisions 5,719 5,233

Lease

provision

Make good

provisions

Provision for lease

incentives Total

$’000 $’000 $’000 $’000Carrying amount 1 July 2011 4,543 384 306 5,233

Additional provisions made 550 36 79 665

Amounts transferred out through restructuring - (30) - (30)

Amounts used (36) (21) (98) (155)

Unwinding of discount or change in discount rate - 6 - 6

Closing balance 30 June 2012 5,057 375 287 5,719

At 30 June 2012 the Department had four 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 created a provision to reflect the present value of this obligation.




Note 10. RestructuringThere have been a number of changes to the Department’s functions and outcome structure since the publication of the 2010–11 financial statements. As a result of the AAOs of 19 October 2011, and 7 and 14 December 2011, and transfer under Section 32 determinations, the Department had one outcome:

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.

The following outcomes transferred to the DRALGAS following the AAO of 14 December 2011:

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.

Functions transferred by Outcome

Outcome 1:

Relinquished

§ The national security science and innovation function was relinquished to the Department of Defence following the AAO change of 14 December 2011.

§ On 1 January 2012 the National Mental Health Commission (NMHC) was established as an executive agency in the Prime Minister and Cabinet portfolio. The function operated within the Department until the date of establishment. Funding allocated to the Department in the 2011–12 Budget transferred to the NMHC under a Section 32 determination.

§ The privacy and freedom of information (FOI) policy function was relinquished to the Attorney-General’s Department (AGD) following the AAO change of 19 October 2011.

Assumed

§ The Department assumed responsibility for the cyber security policy function from AGD following the AAO change of 14 December 2011.

Outcome 2 and 3:

Relinquished

§ The Indigenous broadcasting and media sector function was relinquished to the Department of Broadband, Communications and the Digital Economy (DBCDE) under a Section 32 determination.

§ The arts, culture, sport and recreation function was relinquished to DRALGAS following the AAO change of 14 December 2011.

These restructures have resulted in a significant reduction to both the size and complexity of the Department’s balance sheet. The net assets relinquished during 2011–12 totalled $157.1 million. A ‘nil’ balance of net assets was received for the single function assumed during 2011–12.




Not

e 10

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ts

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579

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20

12

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s an

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Not

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estr

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(con

tinu

ed)

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11

Vol

unte

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g an

d ph

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y an

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e in

tern

atio

nal I

ndig

enou

s re

patr

iati

on p

rogr

amSp

ort a

nd r

ecre

atio

nC

ultu

ral a

ffai

rs

Off

ice

of t

he

Aus

tral

ian

Info

rmat

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Com

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sion

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HC

SIA

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000

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Cas

h an

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451

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bles

--

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on r

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ries

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lant

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Tot

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8-

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275

1,14

18,

409

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Net

ass

ets/

(lia

bilit

ies)

ass

umed

(132

)(1

73)

148,

951

-




20

11

Vol

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g an

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ity

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732

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129

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LIN

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ISH

ED

Ass

ets

reli

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Not

e 10

B: A

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iste

red

rest

ruct

urin

g 20

12

2011

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s an

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2012

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--

Tot

al a

sset

s re

linq

uish

ed7,

324,

705

-

--

41,3

94

Lia

bilit

ies

reli

nqui

shed

Roy

alti

es p

ayab

le40

-

--

-

Sup

plie

r pa

yabl

es-

-

--

-

Gra

nts

paya

ble

-

--

--

Tot

al li

abil

itie

s re

linq

uish

ed40

-

--

-

Net

ass

ets

reli

nqui

shed

7,32

4,66

5

--

-41

,394

1 Fo

r de

tail

s on

201

0–11

res

truc

ture

s re

fer

to t

he 2

010–

11 f

inan

cial

sta

tem

ents

con

tain

ed in

the

201

0–11

An

nual

Rep

ort.




Note 11. Cash flow reconciliation 2012 2011

$’000 $’000Reconciliation of cash and cash equivalents as per balance sheet to cash flow statementCash and cash equivalents as per

Cash flow statement 2,640 8,013

Balance sheet 2,640 8,013

Difference - - Reconciliation of net cost of services to net cash from operating activities

Net cost of services (181,882) (156,873)

Add revenue from Government 171,368 155,541 Adjustments for non-cash items

Net loss from sale of assets 247 42

Depreciation and amortisation 8,170 6,849

Net write down of non-financial assets 1 6

Reversal of previous asset write-downs and impairment (96) -

Assets received free of charge (626) (202) Changes in assets / liabilities

(Increase) / decrease in net receivables 24,578 (17,063)

(Increase) / decrease in inventory 23 -

Increase / (decrease) in employee provisions 1,940 4,814

Increase / (decrease) in supplier payables (19,434) 5,384

Increase / (decrease) in unearned income - 2,879

Increase / (decrease) in make good provisions - 13

Increase / (decrease) in grants payable (5,304) 5,066

Increase / (decrease) in other provisions 522 686

Increase / (decrease) in other payable (1,409) (153)

(Increase) / decrease in prepayments 2,405 (3,000)

Net cash from operating activities 503 3,989




Note 12. Contingent assets and liabilitiesQuantifiable contingencies

The departmental schedule of contingencies reports contingent assets in respect to claims for damages/costs of $98,842. The amount represents the expected settlement based on legal advice.

As detailed in Note 2: Events after the reporting period, the $98,842 contingent asset crystallised after the reporting period following both parties reaching a settlement agreement.

Unquantifiable contingencies

The Department is not aware of any departmental unquantifiable contingent liabilities and assets as at the signing date that would require disclosure in the financial statements.

Significant remote contingencies

The Department is not aware of any remote departmental 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 2010–11.




Note 13. Impact of CHOGM Taskforce on the 2011–12 Statement of Comprehensive Income

Departmental (excluding CHOGM

Taskforce)CHOGM Taskforce Total

$’000 $’000 $’000EXPENSES

Employee benefits 104,519 5,067 109,586

Supplier expenses 61,199 36,940 98,139

Grants 1,804 453 2,257

Depreciation and amortisation 8,156 14 8,170

Finance costs 7 - 7

Write-down and impairment of assets 247 - 247

Losses from asset sales 1 - 1

Total expenses 175,933 42,474 218,407 LESS OWN-SOURCE INCOME Revenue

Sale of goods and rendering of services 32,182 - 32,182

Total revenue 32,182 - 32,182 Gains

Resources received free of charge 3,789 458 4,247

Reversal of previous asset write-downs and impairments 96 - 96

Total gains 3,885 458 4,343

Total own-source income 36,067 458 36,525 Net cost of services 139,866 42,016 181,882

Revenue from Government 131,881 39,487 171,368

Surplus (deficit) attributable to the Australian Government (7,985) (2,529) (10,514)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation reserve - - -

Total comprehensive income (loss) attributable to the Australian Government (7,985) (2,529) (10,514)

The Government provided $58.7 million over three years to the Department for the delivery of CHOGM in October 2011. This funding was provided on a no win / no loss basis requiring the Department to return any surplus funds to the Budget at the completion of the event. As at 30 June 2012, $4.2 million remained unspent and is included in the Department’s appropriation receivable balance. The final amount returned to the Budget will be determined as part of the acquittal process to be performed in 2012–13.




Note 14. Senior executive remunerationNote 14A: Senior executive remuneration expense for the reporting period

2012 2011

$ $Short-term employee benefits

Salary (including annual leave taken) 13,056,849 11,982,244

Other1 1,403,154 1,503,380

Total short-term employee benefits 14,460,003 13,485,624 Post-employment benefits

Superannuation 2,278,869 2,097,086

Total post-employment benefits 2,278,869 2,097,086 Other long-term benefits

Long service leave 361,345 327,247

Total other long-term benefits 361,345 327,247 Termination benefits - -

Total 17,100,217 15,909,9571 Includes motor vehicle, other allowances and reportable fringe benefits

Notes:

§ Note 14A relates to senior executives employed during the year.

§ Note 14A is prepared on an accrual basis.

§ Note 14A excludes acting arrangements and part-year service where total remuneration expensed during the period of acting at the senior executive level was less than $150,000.

§ No performance bonuses were expensed during the reporting period, or comparative period in relation to senior executives.




Not

e 14

B: A

vera

ge a

nnu

al r

epor

tabl

e re

mun

erat

ion

paid

to s

ubst

anti

ve s

enio

r ex

ecut

ives

dur

ing

the

repo

rtin

g pe

riod

20

11–1

2

Ave

rage

an

nual

rep

orta

ble

rem

uner

atio

n1

Sen

ior

exec

utiv

esSa

lary

2

Con

trib

uted

su

pera

nnu

atio

n3

Rep

orta

ble

allo

wan

ces4

Bon

us

paid

5T

otal

No.

$$

$$

$T

otal

rem

uner

atio

n

(incl

udin

g pa

rt-ti

me

arra

nge

men

ts)

les

s th

an $

150,

000

4159

,233

5,76

35

-65

,001

$15

0,00

0 to

$17

9,99

96

133,

312

29,4

48-

-16

2,76

0

$18

0,00

0 to

$20

9,99

921

172,

858

26,3

57-

-19

9,21

5

$21

0,00

0 to

$23

9,99

913

181,

499

41,0

6238

-22

2,59

9

$24

0,00

0 to

$26

9,99

95

221,

869

33,8

65-

-25

5,73

4

$27

0,00

0 to

$29

9,99

96

236,

663

44,8

41-

-28

1,50

4

$30

0,00

0 to

$32

9,99

9-

--

--

-

$33

0,00

0 to

$35

9,99

94

295,

441

44,0

70-

-33

9,51

1

$36

0,00

0 to

$38

9,99

9-

--

--

-

$39

0,00

0 to

$41

9,99

9-

--

--

-

$42

0,00

0 to

$44

9,99

91

329,

870

93,4

46-

-42

3,31

6

$45

0,00

0 to

$47

9,99

92

335,

552

136,

959

--

472,

511

$48

0,00

0 to

$50

9,99

91

428,

100

63,3

92-

-49

1,49

2

Tot

al10

0




1. This table reports substantive senior executives who received remuneration paid through the Department’s payroll system during the reporting period. It does not include package based benefits paid on behalf of employees outside of the Department’s payroll system such as the Executive Vehicle Scheme.

2. ‘Reportable salary’ includes the following:

§ gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column)

§ reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits)

§ exempt foreign employment income.

3. The ‘contributed superannuation’ amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals’ payslips.

4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.

5. No performance bonuses were expensed during the reporting period, or comparative period in relation to substantive senior executives.

6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘reportable salary’ column, excluding salary sacrificed superannuation, which is reported in the ‘contributed superannuation’ column.

Notes:

§ Each row is an averaged figure based on headcount for individuals in the band.

§ The SES numbers shown in Table 14B differ to the Human Resource Workforce profile shown at page 70 of this annual report as table 14B shows all substantive senior executives who received remuneration during the reporting period compared to the workforce profile which shows staff as at a point in time (30 June).




20

10–1

1

Ave

rage

an

nual

rep

orta

ble

rem

uner

atio

n1

Seni

or

exec

utiv

esR

epor

tabl

e sa

lary

2

Con

trib

uted

su

pera

nnua

tion

3

Rep

orta

ble

allo

wan

ces4

Bon

us p

aid5

Tota

l

No.

$$

$$

$T

otal

rem

uner

atio

n

(incl

udin

g pa

rt-ti

me

arra

nge

men

ts)

less

tha

n $1

50,0

0049

47,1

0310

,374

21-

57,4

98

$150

,000

to $

179,

999

1014

5,46

723

,712

175

-16

9,35

4

$180

,000

to $

209,

999

1916

1,19

233

,380

--

194,

572

$210

,000

to $

239,

999

1718

2,25

041

,982

--

224,

232

$240

,000

to $

269,

999

223

3,38

230

,463

--

263,

845

$270

,000

to $

299,

999

522

9,81

549

,107

859

-27

9,78

1

$300

,000

to $

329,

999

128

3,30

238

,177

--

321,

479

$330

,000

to $

359,

999

228

6,86

855

,891

--

342,

759

$360

,000

to $

389,

999

--

--

--

$390

,000

to $

419,

999

137

0,92

643

,943

--

414,

869

$420

,000

to $

449,

999

134

5,01

194

,467

-

439,

478

$450

,000

to $

479,

999

140

5,06

656

,104

--

461,

170

$480

,000

to $

509,

999

--

--

--

$510

,000

to $

539,

999

142

5,75

210

8,94

5-

-53

4,69

7

Tot

al10

9




1. This table reports substantive senior executives who received remuneration paid through the Department’s payroll system during the reporting period. It does not include package based benefits paid on behalf of employees outside of the Department’s payroll system such as the Executive Vehicle Scheme.

2. ‘Reportable salary’ includes the following:

§ gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column)

§ reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits)

§ exempt foreign employment income.

3. The ‘contributed superannuation’ amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals’ payslips.

4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.

5. No performance bonuses were expensed during the reporting period, or comparative period in relation to substantive senior executives.

6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘reportable salary’ column, excluding salary sacrificed superannuation, which is reported in the ‘contributed superannuation’ column.

Notes:

§ Each row is an averaged figure based on headcount for individuals in the band.

§ The SES numbers shown in Table 14B differ to the Human Resource Workforce profile shown at page 70 of this annual report as table 14B shows all substantive senior executives who received remuneration during the reporting period compared to the workforce profile which shows staff as at a point in time (30 June).




Not

e 14

C: O

ther

hig

hly

paid

sta

ff

2011

–12

Ave

rage

an

nual

rep

orta

ble

rem

uner

atio

n1

Sen

ior

exec

utiv

esR

epor

tabl

e sa

lary

2

Con

trib

uted

su

pera

nnu

atio

n3

Rep

orta

ble

allo

wan

ces4

Bon

us

paid

5T

otal

No.

$$

$$

$T

otal

rep

orta

ble

rem

uner

atio

n (in

clud

ing

part

tim

e ar

ran

gem

ents

)

$150

,000

to $

179,

999

4113

3,26

327

,363

36-

160,

662

$180

,000

to $

209,

999

517

1,48

021

,142

--

192,

622

Tot

al46

1.

Thi

s ta

ble

repo

rts

staf

f:

§ w

ho w

ere

empl

oyed

by

the

entit

y du

ring

the

repo

rtin

g pe

riod

§ w

hose

rep

orta

ble

rem

uner

atio

n w

as $

150,

000

or m

ore

for

the

finan

cial

per

iod

§ w

ere

not r

equi

red

to b

e di

sclo

sed

in T

able

s A

, B o

r di

rect

or d

iscl

osur

es.

E

ach

row

is a

n av

erag

ed f

igur

e ba

sed

on h

eadc

ount

for

indi

vidu

als

in t

he b

and.

2.

‘Rep

orta

ble

sala

ry’ i

nclu

des

the

follo

win

g:

§ gr

oss

paym

ents

(les

s an

y bo

nuse

s pa

id, w

hich

are

sep

arat

ed o

ut a

nd d

iscl

osed

in th

e ‘b

onus

pai

d’ c

olum

n)

§ re

port

able

frin

ge b

enef

its (a

t the

net

am

ount

pri

or to

‘gro

ssin

g up

’ to

acco

unt f

or ta

x be

nefit

s)

§ ex

empt

fore

ign

empl

oym

ent i

ncom

e.

3.

The

‘con

trib

uted

sup

eran

nuat

ion’

am

ount

is t

he a

vera

ge a

ctua

l sup

eran

nuat

ion

cont

ribu

tion

s pa

id to

sta

ff in

tha

t rep

orta

ble

rem

uner

atio

n ba

nd d

urin

g th

e re

port

ing

peri

od, i

nclu

ding

any

sal

ary

sacr

ific

ed a

mou

nts,

as

per

the

indi

vidu

als’

pays

lips.

4.

‘Rep

orta

ble

allo

wan

ces’

are

the

aver

age

actu

al a

llow

ance

s pa

id a

s pe

r th

e ‘to

tal a

llow

ance

s’ lin

e on

indi

vidu

als’

paym

ent s

umm

arie

s.

5.

‘Bon

us p

aid’

rep

rese

nts

aver

age

actu

al b

onus

es p

aid

duri

ng t

he r

epor

ting

per

iod

in t

hat r

epor

tabl

e re

mun

erat

ion

band

. The

‘bon

us p

aid’

wit

hin

a pa

rtic

ular

ba

nd m

ay v

ary

betw

een

fina

ncia

l yea

rs d

ue to

var

ious

fact

ors

such

as

indi

vidu

als

com

men

cing

wit

h or

leav

ing

the

enti

ty d

urin

g th

e fi

nanc

ial y

ear.

6.

Var

ious

sal

ary

sacr

ific

e ar

rang

emen

ts w

ere

avai

labl

e to

oth

er h

ighl

y pa

id s

taff

incl

udin

g su

pera

nnu

atio

n, m

otor

veh

icle

and

exp

ense

pay

men

t fri

nge

bene

fits

. Sa

lary

sac

rifi

ce b

enef

its

are

repo

rted

in t

he ‘r

epor

tabl

e sa

lary

’ col

umn,

exc

ludi

ng s

alar

y sa

crif

iced

sup

eran

nuat

ion,

whi

ch is

rep

orte

d in

the

‘con

trib

uted

su

pera

nnu

atio

n’ c

olum

n.




20

10–1

1

Ave

rage

an

nual

rep

orta

ble

rem

uner

atio

n1

Sen

ior

exec

utiv

esR

epor

tabl

e sa

lary

2

Con

trib

uted

su

pera

nnu

atio

n3

Rep

orta

ble

allo

wan

ces4

Bon

us

paid

5T

otal

No.

$$

$$

$T

otal

rep

orta

ble

rem

uner

atio

n (in

clud

ing

part

tim

e ar

ran

gem

ents

)

$150

,000

to $

179,

999

2812

3,30

930

,044

-8,

849

162,

202

$180

,000

to $

209,

999

315

6,04

921

,034

-7,

755

184,

838

Tot

al31

1.

Thi

s ta

ble

repo

rts

staf

f:

§ w

ho w

ere

empl

oyed

by

the

entit

y du

ring

the

repo

rtin

g pe

riod

§ w

hose

rep

orta

ble

rem

uner

atio

n w

as $

150,

000

or m

ore

for

the

finan

cial

per

iod

§ w

ere

not r

equi

red

to b

e di

sclo

sed

in T

able

s A

, B o

r di

rect

or d

iscl

osur

es.

E

ach

row

is a

n av

erag

ed f

igur

e ba

sed

on h

eadc

ount

for

indi

vidu

als

in t

he b

and.

2.

‘Rep

orta

ble

sala

ry’ i

nclu

des

the

follo

win

g:

§ gr

oss

paym

ents

(les

s an

y bo

nuse

s pa

id, w

hich

are

sep

arat

ed o

ut a

nd d

iscl

osed

in th

e ‘b

onus

pai

d’ c

olum

n)

§ re

port

able

frin

ge b

enef

its (a

t the

net

am

ount

pri

or to

‘gro

ssin

g up

’ to

acco

unt f

or ta

x be

nefit

s)

§ ex

empt

fore

ign

empl

oym

ent i

ncom

e.

3.

The

‘con

trib

uted

sup

eran

nuat

ion’

am

ount

is t

he a

vera

ge a

ctua

l sup

eran

nuat

ion

cont

ribu

tion

s pa

id to

sta

ff in

tha

t rep

orta

ble

rem

uner

atio

n ba

nd d

urin

g th

e re

port

ing

peri

od, i

nclu

ding

any

sal

ary

sacr

ific

ed a

mou

nts,

as

per

the

indi

vidu

als’

pays

lips.

4.

‘Rep

orta

ble

allo

wan

ces’

are

the

aver

age

actu

al a

llow

ance

s pa

id a

s pe

r th

e ‘to

tal a

llow

ance

s’ lin

e on

indi

vidu

als’

paym

ent s

umm

arie

s.

5.

‘Bon

us p

aid’

rep

rese

nts

aver

age

actu

al b

onus

es p

aid

duri

ng t

he r

epor

ting

per

iod

in t

hat r

epor

tabl

e re

mun

erat

ion

band

. The

‘bon

us p

aid’

wit

hin

a pa

rtic

ular

ba

nd m

ay v

ary

betw

een

fina

ncia

l yea

rs d

ue to

var

ious

fact

ors

such

as

indi

vidu

als

com

men

cing

wit

h or

leav

ing

the

enti

ty d

urin

g th

e fi

nanc

ial y

ear.

6.

Var

ious

sal

ary

sacr

ific

e ar

rang

emen

ts w

ere

avai

labl

e to

oth

er h

ighl

y pa

id s

taff

incl

udin

g su

pera

nnu

atio

n, m

otor

veh

icle

and

exp

ense

pay

men

t fri

nge

bene

fits

. Sa

lary

sac

rifi

ce b

enef

its

are

repo

rted

in t

he ‘r

epor

tabl

e sa

lary

’ col

umn,

exc

ludi

ng s

alar

y sa

crif

iced

sup

eran

nuat

ion,

whi

ch is

rep

orte

d in

the

‘con

trib

uted

su

pera

nnu

atio

n’ c

olum

n.




Note 15. Remuneration of auditors 2012 2011

$'000 $'000

Financial statement audit services are provided free of charge by the Australian National Audit Office (ANAO).

The fair value of the services provided was:

Financial statement audit services 185 185

Total of fair value of services provided 185 185

No other services were provided by the auditors of the financial statements.




Note 16. Financial instruments 2012 2011

$'000 $'000

Note 16A: Categories of financial instruments

Financial assets

Loans and receivables:

Cash and cash equivalents 2,640 8,013

Goods and services receivables 5,345 3,002

Accrued revenue 5,378 6,189

Carrying amount of financial assets 13,363 17,204 Financial liabilities

At amortised cost:

Suppliers 7,687 13,874

Grants 399 5,703

Carrying amount of financial liabilities 8,086 19,577

Note 16B: Net income and expense from financial assets

Loans and receivables

Impairment - (23)

Net gain/(loss) loans and receivables - (23)

Net gain/(loss) from financial assets - (23)

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, 2012: $5,344,516 (2011: $3,001,782). The Department has assessed the risk of the default on payment and has not allocated any amounts to an impairment allowance account (2011: $100,895).

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 entity's gross exposure to credit risk.

2012 2011

$'000 $'000Financial assets

Cash and cash equivalents 2,640 8,013

Goods and services receivables 5,345 3,002

Accrued revenue 5,378 6,189

Total 13,363 17,204 Credit quality of financial 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 impaired

2012 2011 2012 2011

$'000 $'000 $'000 $'000

Cash and cash equivalents 2,640 8,013 - -

Goods and services receivables 4,651 2,562 694 440

Accrued revenue 5,378 6,189 - -

Total 12,669 16,764 694 440 Ageing of financial assets that were past due but not impaired for 2012

0 to 30 31 to 60 61 to 90 90+ days days days days Total

$'000 $'000 $'000 $'000 $'000 Cash and cash equivalents - - - - -

Goods and services receivables 133 - 450 111 694

Accrued revenue - - - - -

Total 133 - 450 111 694 Ageing of financial assets that were past due but not impaired for 2011


$'000 $'000 $'000 $'000 $'000

Cash and cash equivalents - - - - -

Goods and services receivables1 260 55 24 - 339

Accrued revenue - - - - -

Total 260 55 24 - 3391 Figures disclosed net of provision for doubtful debts.




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 2012

On Within 1 1 to 2 2 to 5 > 5

demand year years years years Total

$'000 $'000 $'000 $'000 $'000 $'000 Suppliers - 7,687 - - - 7,687

Grants - 399 - - - 399

Total - 8,086 - - - 8,086 Maturities for non-derivative financial liabilities 2011

On Within 1 1 to 2 2 to 5 > 5

demand year years years years Total

$'000 $'000 $'000 $'000 $'000 $'000

Suppliers - 13,874 - - - 13,874

Grants - 5,703 - - - 5,703

Total - 19,577 - - - 19,577

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.




Note 17. Financial assets reconciliation 2012 2011

$'000 $'000

NotesFinancial assets

Total financial assets as per balance sheet 24,924 66,587

Less non-financial instrument components:

Appropriation receivables 11,081 49,477

GST receivable from the ATO 480 7

Total non-financial instrument components 11,561 49,484

Total financial assets as per financial instruments note1 16A 13,363 17,1031 Figure disclosed net of statutory receivables.




Note 18. Administered expenses 2012 2011

$'000 $'000

Note 18A: Employee benefits

Wages and salaries 643 574

Superannuation:

Defined contribution plans 74 58

Defined benefit plans 33 33

Leave and other entitlements 78 222

Total employee benefits 828 887

Note 18B: Suppliers

Goods and services

Outsourced providers, contractors and consultants 1,662 994

Equipment, repairs and maintenance 492 551

General expenses 1,675 1,694

Travel 4,623 1,956

Information and communication technology 820 639

Office accommodation, facility management and security 226 197

Total goods and services 9,498 6,031 Goods and services are made up of

Provision of goods - related entities 4 8

Provision of goods - external parties 672 768


Rending of services - external parties 7,066 3,530

Total goods and services 9,498 6,031 Other supplier expenses

Operating lease rentals - external parties:

Minimum lease payments 84 56

Total other supplier expenses 84 56

Total suppliers 9,582 6,087

Note 18C: Grants

Public sector:

Australian Government entities (related entities) 70,863 17,834

Local governments 6,256 896

State and Territory governments 783 4,460

Private sector:

Non-profit organisations 54,603 62,247

Commercial entities 19,279 17,317

Overseas organisations 351 206

Total grants 152,135 102,960




2012 2011

$'000 $'000

Note 18D: Depreciation and amortisation

Depreciation:

Buildings 1,147 824

Property, plant and equipment 281 98

Total depreciation and amortisation 1,428 922

Note 18E: Royalties

Royalties paid - 19,652

Total royalties - 19,652

Note 18F: Finance costs

Unwinding of discount 566 570

Total finance costs 566 570

Note 18G: Write-down and impairment of assets

Asset write-downs and impairments from:

Impairment of property, plant and equipment 4 2

Total write-down and impairment of assets 4 2

Note 18H: Payment to CAC Act bodies

Australia Council 138,536 40,802

Australian Film, Television and Radio School 14,081 9,897

Australian National Maritime Museum 17,063 8,572

National Film and Sound Archive of Australia 15,338 10,261

National Gallery of Australia 33,641 12,332

National Library of Australia 34,279 20,502

National Museum of Australia 31,015 11,151

Screen Australia 15,977 2,411

Australian Sports Commission 152,000 153,501

Total payments to CAC Act bodies 451,930 269,429




Note 19. Administered income 2012 2011

$'000 $'000

Note 19A: Interest

Loans 100 165

Total interest 100 165

Note 19B: Other revenue

Return of prior year grant funding 2,519 493

Other 68 982

Total other revenue 2,587 1,475

Note 19C: Other gains

Assets received free of charge - 1,000

Total other gains - 1,000




Note 20. Administered financial assets 2012 2011

$'000 $'000

Note 20A: Cash and cash equivalents

Cash on hand or on deposit 1 110

Special accounts - 38

Total cash and cash equivalents 1 148

Note 20B: Receivables

Good and services:

Goods and services receivable - related entities 1 213

Goods and services receivable - external parties 9 72

Total goods and services 10 285 Advances and loans

Australian Sports Commission - 4,000

Total advances and loans - 4,000 Other receivables

Interest - 165

GST receivable from the ATO 61 5,854

Total other receivables 61 6,019

Total trade and other receivables (net) 71 10,304 Receivables are expected to be recovered in:


More than 12 months - 4,000

Total trade and other receivables (net) 71 10,304 Receivables are aged as follows:

Not overdue 66 9,975

Overdue by:

0 to 30 days - 312

31 to 60 days - 17

61 to 90 days - -

More than 90 days 5 -

Total receivables (gross) 71 10,304

Credit terms were within 30 days (2011: 30 days).




2012 2011

$’000 $’000

Note 20C: Other investments

Equity interest in

National Australia Day Council Limited 964 820

Australia Council - 20,178

Australian Film, Television and Radio School - 10,918

Australian National Maritime Museum - 287,986

National Film and Sound Archive of Australia - 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 Foundation Limited - 9,978

Total other investments 964 7,285,708 Other financial assets are expected to be recovered in

No more than 12 months - -

More than 12 months 964 7,285,708

Total other investments 964 7,285,708

Refer to Note 26 for details on the principal activities of each of the Department’s administered investments.

The Department’s investment in these entities is measured at fair value as at 30 June 2012. Fair value has been taken to be the net assets of the entity as at the balance date.




Note 21. Administered non-financial assets 2012 2011

$'000 $'000

Note 21A: Land and buildings

Buildings on freehold land:

Fair value - 37,726

Accumulated depreciation - (6,860)

Work in progress - 3,013

Total land and buildings - 33,879

Note 21B: Property, plant and equipment

Other property, plant and equipment:

Fair value 2,176 2,041

Accumulated depreciation (388) (112)

Total other property, plant and equipment 1,788 1,929

Total property, plant and equipment 1,788 1,929

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 April 2010 by independent valuer Preston Rowe Paterson NSW Pty Ltd.

No revaluation adjustments were recorded for 2011–12. (2010–11: Nil).

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.




Not

e 21

C: R

econ

cilia

tion

of t

he o

pen

ing

and

clos

ing

bala

nces

of p

rope

rty,

pla

nt a

nd e

quip

men

t (20

11–1

2)

L

and

Bui

ldin

gsO

ther

pro

pert

y,

plan

t & e

quip

men

tT

otal

$’

000

$’00

0$’

000

$’00

0A

s at

1 Ju

ly 2

011

Gro

ss b

ook

valu

e-

40,7

392,

041

42,7

80

Acc

umul

ated

dep

reci

atio

n an

d im

pair

men

t-

(6,8

60)

(112

)(6

,972

)

Net

boo

k va

lue

1 Ju

ly 2

011

-33

,879

1,92

935

,808

A

ddit

ion

s:

By

purc

hase

-12

628

340

9

Impa

irm

ents

rec

ogni

sed

in t

he o

pera

ting

res

ult

--

(4)

(4)

Dep

reci

atio

n ex

pen

se-

(1,1

47)

(281

)(1

,428

)

Dis

posa

ls:

Fro

m d

ispo

sal o

f ent

itie

s or

ope

rati

ons

(incl

udin

g re

stru

ctur

ing)

-(3

2,85

8)(1

39)

(32,

997)

Net

boo

k va

lue

30 Ju

ne 2

012

--

1,78

81,

788

N

et b

ook

valu

e as

of 3

0 Ju

ne 2

012

repr

esen

ted

by

Gro

ss b

ook

valu

e-

-2,

176

2,17

6

Acc

umul

ated

dep

reci

atio

n an

d im

pair

men

t-

-(3

88)

(388

)

-

-1,

788

1,78

8




Not

e 21

C: R

econ

cilia

tion

of t

he o

pen

ing

and

clos

ing

bala

nces

of p

rope

rty,

pla

nt a

nd e

quip

men

t (20

10–1

1)

L

and

Bui

ldin

gsO

ther

pro

pert

y,

plan

t & e

quip

men

tTo

tal

$’

000

$’00

0$’

000

$’00

0A

s at

1 Ju

ly 2

010

Gro

ss b

ook

valu

e34

,500

6,76

51,

199

42,4

64

Acc

umul

ated

dep

reci

atio

n an

d im

pair

men

t-

-(1

8)(1

8)

Net

boo

k va

lue

1 Ju

ly 2

010

34,5

006,

765

1,18

142

,446

Add

itio

ns:

By

purc

hase

-1,

560

-1,

560

Pro

vide

d fr

ee o

f cha

rge

--

1,00

01,

000

Fro

m a

cqui

siti

on o

f ent

itie

s or

ope

rati

ons

(incl

udin

g re

stru

ctur

ing)

-33

,120

-33

,120

Impa

irm

ents

rec

ogni

sed

in t

he o

pera

ting

res

ult

-

(2)

(2)

Dep

reci

atio

n ex

pen

se-

(824

)(9

8)(9

22)

Dis

posa

ls:

Fro

m d

ispo

sal o

f ent

itie

s or

ope

rati

ons

(incl

udin

g re

stru

ctur

ing)

(34,

500)

(6,7

42)

(152

)(4

1,39

4)

Net

boo

k va

lue

30 Ju

ne 2

011

-33

,879

1,92

935

,808

N

et b

ook

valu

e as

of 3

0 Ju

ne 2

011

repr

esen

ted

by

Gro

ss b

ook

valu

e-

40,7

392,

041

42,7

80

Acc

umul

ated

dep

reci

atio

n an

d im

pair

men

t-

(6,8

60)

(112

)(6

,972

)

-

33,8

791,

929

35,8

08




2012 2011

$'000 $'000

Note 21D: Other non-financial assets

Prepayments 97 221

Total other non-financial assets 97 221 Total other non-financial assets are expected to be recovered in:


More than 12 months 31 -

Total other non-financial assets 97 221




Note 22. Administered payables 2012 2011

$'000 $'000

Note 22A: Suppliers

Trade creditors 345 3,926

Total suppliers 345 3,926 Supplier payables expected to be settled within 12 months:

Related entities 37 273

External parties 308 3,653

Total suppliers 345 3,926

Settlement is usually made within 30 days.

Note 22B: Grants

Private sector

Non-profit organisations 388 3,361

Total grants 388 3,361 Total grants:



Total grants 388 3,361

Note 22C: Other payables

Salaries and wages 27 23

Superannuation 4 4

Other 25 22

GST payable to ATO - 23

Total other payables 56 72 Total other payables are expected to be settled in:



Total other payables 56 72




Note 23. Administered provisions 2012 2011

$'000 $'000

Note 23A: Employee provisionsAnnual leave 178 201

Long service leave 192 143

Total employee provisions 370 344 Employee provisions are expected to be settled in:



Total employee provisions 370 344

Note 23B: Non-cash benefits - former Governors-General benefits

Non-cash benefits - former Governors-General benefits 13,640 10,668

Total non-cash benefits - former Governors-General benefits 13,640 10,668 The amounts recognised in the balance sheet are as follows:

Present value of unfunded obligations 13,640 10,668

Net liability in balance sheet 13,640 10,668 Amounts in balance sheet:

Liabilities 13,640 10,668

Net liability in balance sheet 13,640 10,668 The amounts recognised in the Statement of Comprehensive Income are as follows:

Finance costs 560 563

Expense 560 563 Net actuarial losses recognised in equity 3,627 210

Changes in the value of the defined benefit obligations are as follows:

Net liability at 1 July 10,668 11,077

Finance costs 560 563

Actuarial losses 3,627 210

Benefits paid (1,215) (1,182)

Net liability at 30 June 13,640 10,668 Principal actuarial assumptions at the reporting date (expressed as weighted averages):

2012 2011

Discount rate at 30 June 3.04% 5.21%

Future salary increases 4.00% 4.00%

Inflation rate 2.50% 2.50%

Rate of expenditure slow down with age 3.00% 3.00%




2012 2011

$'000 $'000

Note 23C: Other provisions

Make good provisions 110 104

Lease provisions 22 22

Total other provisions 132 126 Other provisions are expected to be settled in:



Total other provisions 132 126

Reconciliation of other provisions

Lease provision

Make good provision

Total

$’000 $’000 $’000Carrying amount 1 July 2011 22 104 126

Additional provisions made 9 - 9

Amounts used (9) - (9)

Amounts reversed - - -

Unwinding of discount or change in discount rate - 6 6

Closing balance 2012 22 110 132




Note 24. Administered cash flow reconciliation 2012 2011

$'000 $'000Reconciliation of cash and cash equivalents as per balance sheet to cash flow statement

Cash and cash equivalents as per

Cash flow statement 1 148

Balance sheet 1 148

Difference - - Reconciliation of net cost of services to net cash from operating activities

Net cost of services (613,786) (397,869) Adjustments for non-cash items

Depreciation / amortisation 1,428 922

Assets received free of charge - (1,000)

Losses from sale of assets 4 2 Changes in assets / liabilities

(Increase) / decrease in net receivables (175) (4,534)

(Increase) / decrease in prepayments 124 (183)

Increase / (decrease) in grants payable (2,974) (12,697)

Increase / (decrease) in employee provisions 26 83

Increase / (decrease) in supplier payables (3,582) 3,513

Increase / (decrease) in former Governors-General benefits 2,972 -

Increase / (decrease) in other payable (16) 5

Increase / (decrease) in other provisions 6 (415)

Net cash from (used by) operating activities (615,973) (412,173)




Note 25. Administered contingent assets and liabilities

Claims for

damages or costs Total

2012 2011 2012 2011

$'000 $'000 $'000 $'000Contingent liabilities

Balance from previous period 70 - 70 -

Expired (70) 70 (70) 70

New - - - -

Total contingent liabilities - 70 - 70

Quantifiable contingencies The Department is not aware of any administered quantifiable contingent liabilities or assets as at signing date that would require disclosure in the financial statements (2011: $70,000).

Unquantifiable contingencies The Department is not aware of any administered unquantifiable contingent liabilities or assets as at signing date that would require disclosure in the financial statements.

Significant remote contingencies The Department is not aware of any administered remote contingent liabilities or assets as at signing date that would require disclosure in the financial statements.




Note 26. Administered investmentsThe principal activities of each of the Department's administered investments are as follows:

National Australia Day Council Limited

Promotes 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.




Note 27. Administered financial instruments 2012 2011

$’000 $’000

Note 27A: Categories of financial instrumentsFinancial assets


Cash and cash equivalents 1 148

Receivables 10 450

Advances and loans - 4,000

Total 11 4,598 Available for sale:

Equity interest in:














Total 964 7,285,708

Carrying amount of financial assets 975 7,290,306 Financial liabilities

At amortised cost:

Supplier payables 345 3,926

Grant payables 388 3,361

Carrying amount of financial liabilities 733 7,287

Note 27B: Net income and expense from financial assetsFinancial assets


Interest revenue - 165

Net gain from loans and receivables - 165

Net gain from financial assets - 165




Note 27C: Fair value of financial instrumentsThe fair value of financial instruments approximate their carrying amounts. The equity interests in administered investments are measured at fair value as at 30 June. 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.

Note 27D: 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, 2012: $10,052 (2011: $449,710)

The Department has assessed the risk of the default on payment and has allocated amounts to an impairment allowance account, 2012: Nil (2011: 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:

2012 2011



Cash and cash equivalents 1 148

Receivables 10 450

Advances and loans - 4,000 Available for sale:

Equity interest in:














Total 975 7,290,306




Credit quality of financial instruments not past due or individually determined as impaired

Not past due nor

impaired

Not past due nor

impairedPast due or

impairedPast due or

impaired

2012 2011 2012 2011

$'000 $'000 $'000 $'000


Cash and cash equivalents 1 148 - -

Receivables 5 121 5 329

Advances and loans - 4,000 - - Available for sale:

Equity interest in:

National Australia Day Council Limited 964 820 - -

Australia Council - 20,178 - -

Australian Film, Television and Radio School - 10,918 - -

Australian National Maritime Museum - 287,986 - -

National Film and Sound Archive of Australia - 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 970 7,289,977 5 329 Ageing of financial assets that were past due but not impaired for 2012


$'000 $'000 $'000 $'000 $'000Loans and receivables:

Receivables - - - 5 5

Total - - - 5 5 Ageing of financial assets that were past due but not impaired for 2011


$'000 $'000 $'000 $'000 $'000


Receivables 312 17 - - 329

Total 312 17 - - 329




Note 27E: Liquidity risk The Department’s administered financial liabilities are supplier and grant payables. The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with administered 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 2012

On Within 1 1 to 2 2 to 5 > 5 demand year years years years Total

$'000 $'000 $'000 $'000 $'000 $'000Other liabilities:

Supplier payables - 345 - - - 345

Grant payables - 388 - - - 388

Total - 733 - - - 733 Maturities for non-derivative financial liabilities 2011

On Within 1 1 to 2 2 to 5 > 5 demand year years years years Total

$'000 $'000 $'000 $'000 $'000 $'000

Other liabilities:

Supplier payables - 3,926 - - - 3,926

Grant payables - 3,361 - - - 3,361

Total - 7,287 - - - 7,287

Note 27F: 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.




Note 28. Administered financial assets reconciliation 2012 2011


Total financial assets per schedule of administered assets and liabilities 1,036 7,296,160

Less non-financial instrument components:

Other receivables 61 5,854

Total non-financial instrument components 61 5,854

Total financial assets as per financial instruments note1 975 7,290,3061 Figure disclosed net of statutory receivables.




Not

e 29

. A

ppro

pria

tion

sN

ote

29A

: An

nual

app

ropr

iati

ons

('rec

over

able

GST

exc

lusi

ve')

20

12 A

ppro

pria

tion

sA

ppro

pria

tion

ap

plie

d in

20

11–1

2 (c

urre

nt a

nd

prio

r ye

ars)

A

ppro

pria

tion

Act

FMA

Act

Tot

al

appr

opri

atio

n

A

nnu

al

appr

opri

atio

nA

ppro

pria

tion

s re

duce

d (a

)A

FM

(b)

Sect

ion 30

Sect

ion 31

Sect

ion 32

Var

ianc

e (c)

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

DE

PAR

TM

EN

TA

L

Ord

inar

y an

nual

ser

vice

s20

5,55

9-

--

41,5

47(2

4,00

5)22

3,10

1(2

57,8

13)

34,7

12

Oth

er s

ervi

ces

Equ

ity

735

--

-

(172

)56

3(3

,288

)2,

725

Loa

ns

--

--

-

--

-

Tot

al d

epar

tmen

tal

206,

294

--

-41

,547

(24,

177)

223,

664

(261

,101

)37

,437

AD

MIN

IST

ER

ED

Ord

inar

y an

nual

ser

vice

s

Adm

inis

tere

d it

ems

260,

176

(35)

-1,

404

(9

7,53

1)16

4,01

4(1

69,0

45)

5,03

1

Pay

men

ts to

CA

C A

ct b

odie

s68

5,20

1-

--

(2

33,2

71)

451,

930

(451

,930

)-

Oth

er s

ervi

ces

Adm

inis

tere

d as

sets

and

lia

bilit

ies

175

--

-

-17

5(5

,679

)5,

504

Tot

al a

dmin

iste

red

945,

552

(35)

-1,

404

-(3

30,8

02)

616,

119

(626

,655

)10

,536

Not

es:

(a) A

ppro

pria

tion

Act

s (N

o. 1

, 3) 2

011–

12: s

ecti

ons

10, 1

1, 1

2 an

d 15

. App

ropr

iati

on A

cts

(No.

2, 4

) 201

1–12

: sec

tion

s 13

and

14.

Dep

artm

enta

l app

ropr

iati

ons

do n

ot la

pse

at f

inan

cial

yea

r-end

. How

ever

, the

res

pon

sibl

e M

inis

ter

may

dec

ide

that

par

t or

all o

f a d

epar

tmen

tal a

ppro

pria

tion

is n

ot r

equi

red

and

requ

est t

hat

the

Fina

nce

Min

iste

r re

duce

tha

t app

ropr

iati

on. T

he r

educ

tion

in t

he a

ppro

pria

tion

is e

ffec

ted

by t

he F

inan

ce M

inis

ter’s

det

erm

inat

ion

and

is d

isal

low

able

by

Parl

iam

ent.

In

2012

, the

re w

as n

o re

duct

ion

in d

epar

tmen

tal a

nd n

on-o

pera

ting

dep

artm

enta

l app

ropr

iati

ons.

(b

) Adv

ance

to t

he F

inan

ce M

inis

ter

(AFM

) – A

ppro

pria

tion

Act

s (N

o. 1

, 3) 2

011–

12: s

ecti

on 1

3 an

d A

ppro

pria

tion

Act

s (N

o. 2

, 4) 2

011–

12: s

ecti

on 1

5.

(c) V

aria

nce

rela

tes

to d

raw

dow

n of

pri

or y

ear

appr

opri

atio

ns.




20

11 A

ppro

pria

tion

sA

ppro

pria

tion

ap

plie

d in

20

10–1

1 (c

urre

nt a

nd

prio

r ye

ars)

Var

ianc

e (c)

A

ppro

pria

tion

Act

FMA

Act

Tota

l ap

prop

riat

ion

A

nnua

l ap

prop

riat

ion

App

ropr

iati

ons

redu

ced

(a)

AFM

(b

)Se

ctio

n 30Se

ctio

n 31Se

ctio

n 32

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

DE

PAR

TM

EN

TA

L

Ord

inar

y an

nual

ser

vice

s13

6,35

9-

--

19,6

3620

,411

176,

406

(172

,249

)4,

157

Oth

er s

ervi

ces

Equ

ity

500

--

-

218

718

(1,6

16)

(898

)

Tot

al d

epar

tmen

tal

136,

859

--

-19

,636

20,6

2917

7,12

4(1

73,8

65)

3,25

9

AD

MIN

IST

ER

ED

Ord

inar

y an

nual

ser

vice

s

Adm

inis

tere

d it

ems

47,2

53(8

,450

)41

,331

603

68

,001

148,

738

(141

,234

)7,

504

Pay

men

ts to

CA

C A

ct b

odie

s-

--

-

276,

669

276,

669

(276

,468

)20

1

Oth

er s

ervi

ces

Stat

es, A

CT,

NT

and

lo

cal g

over

nmen

t-

--

-

250

250

(250

)-

Tot

al a

dmin

iste

red

47,

253

(8,4

50)

41,3

3160

3

344,

920

425,

657

(417

,952

)7,

705

Not

es:

(a) A

ppro

pria

tion

Act

s (N

o. 1

, 3) 2

010–

11: s

ecti

ons

10, 1

1, 1

2 an

d 15

. App

ropr

iati

on A

cts

(No.

2, 4

) 201

0–11

: sec

tion

s 13

and

14.

Dep

artm

enta

l app

ropr

iati

ons

do n

ot la

pse

at f

inan

cial

yea

r-end

. How

ever

, the

res

pon

sibl

e M

inis

ter

may

dec

ide

that

par

t or

all o

f a d

epar

tmen

tal a

ppro

pria

tion

is n

ot r

equi

red

and

requ

est t

hat

the

Fina

nce

Min

iste

r re

duce

tha

t app

ropr

iati

on. T

he r

educ

tion

in t

he a

ppro

pria

tion

is e

ffec

ted

by t

he F

inan

ce M

inis

ter’s

det

erm

inat

ion

and

is d

isal

low

able

by

Parl

iam

ent.

In

2011

, the

re w

as n

o re

duct

ion

in d

epar

tmen

tal a

nd n

on-o

pera

ting

dep

artm

enta

l app

ropr

iati

ons.

(b

) Adv

ance

to t

he F

inan

ce M

inis

ter

(AFM

) – A

ppro

pria

tion

Act

s (N

o. 1

, 3) 2

010–

11: s

ecti

on 1

3 an

d A

ppro

pria

tion

Act

s (N

o. 2

, 4) 2

010–

11: s

ecti

on 1

5.

(c) V

aria

nce

rela

tes

to d

raw

dow

n of

pri

or y

ear

appr

opri

atio

ns.




Not

e 29

B: D

epar

tmen

tal a

nd a

dmin

iste

red

capi

tal b

udge

ts ('

reco

vera

ble

GST

exc

lusi

ve')

20

11–1

2 C

apit

al b

udge

t app

ropr

iati

ons

Cap

ital

bud

get a

ppro

pria

tion

s ap

plie

d in

20

11–1

2 (c

urre

nt a

nd p

rior

yea

rs)

Var

ianc

e

A

ppro

pria

tion

Act

FMA

Act

Tot

al c

apit

al

budg

et

appr

opri

atio

ns

Pay

men

ts fo

r no

n-fi

nan

cial

as

sets

(c)

Pay

men

ts

for

othe

r pu

rpos

esT

otal

pa

ymen

ts

An

nual

ca

pita

l bu

dget

App

ropr

iati

ons

redu

ced(b

)Se

ctio

n 32

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0D

EPA

RT

ME

NT

AL

Ord

inar

y an

nual

se

rvic

es

Cap

ital

bud

get(a

)7,

682

-(2

,697

)4,

985

(4,2

54)

-(4

,254

)73

1

AD

MIN

IST

ER

ED

Ord

inar

y an

nual

se

rvic

es

Cap

ital

bud

get(a

)1,

905

-(6

63)

1,24

2(4

09)

(770

)(1

,179

)63

Not

es:

(a) D

epar

tmen

tal a

nd a

dmin

iste

red

capi

tal b

udge

ts w

ere

appr

opri

ated

thr

ough

App

ropr

iati

on A

cts

(No.

1,3,

5) 2

011–

12. T

hey

form

par

t of o

rdin

ary

annu

al

serv

ices

and

are

not

sep

arat

ely

iden

tifi

ed in

the

App

ropr

iati

on A

cts.

For

mor

e in

form

atio

n on

ord

inar

y an

nual

ser

vice

s ap

prop

riat

ion,

ple

ase

see

Tabl

e A

: A

nnu

al a

ppro

pria

tion

s.

(b) A

ppro

pria

tion

s re

duce

d un

der

App

ropr

iati

on A

cts

(No.

1,3

,5) 2

011–

12: s

ecti

ons

10,1

1,12

and

15

or v

ia a

det

erm

inat

ion

by t

he F

inan

ce M

inis

ter.

(c) P

aym

ents

mad

e on

non

-fina

ncia

l ass

ets

incl

ude

purc

hase

of a

sset

s, e

xpen

ditu

re o

n as

sets

whi

ch h

as b

een

capi

talis

ed, c

osts

incu

rred

to m

ake

good

an

asse

t to

its

orig

inal

con

diti

on, a

nd t

he c

apit

al r

epay

men

t com

pone

nt o

f fin

ance

leas

es.




20

10–1

1 C

apit

al b

udge

t app

ropr

iati

ons

Cap

ital

bud

get a

ppro

pria

tion

s ap

plie

d in

20

10–1

1 (c

urre

nt a

nd p

rior

yea

rs)

Var

ianc

e

A

ppro

pria

tion

Act

FMA

Act

Tot

al c

apit

al

budg

et

appr

opri

atio

ns

Pay

men

ts fo

r no

n-fi

nan

cial

as

sets

(c)

Pay

men

ts

for

othe

r pu

rpos

esT

otal

pa

ymen

ts

An

nual

ca

pita

l bu

dget

App

ropr

iati

ons

redu

ced(b

)Se

ctio

n 32

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0D

EPA

RT

ME

NT

AL

Ord

inar

y an

nual

se

rvic

es

Oth

er s

ervi

ces

Cap

ital

bud

get(a

)2,

778

-79

23,

570

(3,4

87)

-(3

,487

)83

AD

MIN

IST

ER

ED

Ord

inar

y an

nual

se

rvic

es

Cap

ital

bud

get(a

)28

4-

-28

4-

--

284

Not

es:

(a) D

epar

tmen

tal a

nd a

dmin

iste

red

capi

tal b

udge

ts w

ere

appr

opri

ated

thr

ough

App

ropr

iati

on A

cts

(No.

1,3,

5) 2

010–

11. T

hey

form

par

t of o

rdin

ary

annu

al

serv

ices

and

are

not

sep

arat

ely

iden

tifi

ed in

the

App

ropr

iati

on A

cts.

For

mor

e in

form

atio

n on

ord

inar

y an

nual

ser

vice

s ap

prop

riat

ion,

ple

ase

see

Tabl

e A

: A

nnu

al a

ppro

pria

tion

s.

(b) A

ppro

pria

tion

s re

duce

d un

der

App

ropr

iati

on A

cts

(No.

1,3

,5) 2

010–

11: s

ecti

ons

10,1

1,12

and

15

or v

ia a

det

erm

inat

ion

by t

he F

inan

ce M

inis

ter.

(c) P

aym

ents

mad

e on

non

-fina

ncia

l ass

ets

incl

ude

purc

hase

of a

sset

s, e

xpen

ditu

re o

n as

sets

whi

ch h

as b

een

capi

talis

ed, c

osts

incu

rred

to m

ake

good

an

asse

t to

its

orig

inal

con

diti

on, a

nd t

he c

apit

al r

epay

men

t com

pone

nt o

f fin

ance

leas

es.




Note 29C: Unspent annual appropriations ('recoverable GST exclusive')

Authority

2012 2011

$'000 $'000DEPARTMENTAL

Appropriation Act (No.4) 2007–08 - 1,612

Appropriation Act (No.1) 2008–09 945 945

Appropriation Act (No.4) 2008–09 - 162


Appropriation Act (No.2) 2009–10 - 933


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) 2010–11 114 718

Appropriation Act (No.1) 2011–12 9,700 -

Appropriation Act (No.1) 2011–12 - cash held by the department 2,640 -

Appropriation Act (No.2) 2011–12 322 -

Total 13,721 41,713

ADMINISTERED

Appropriation Act (No.4) 2008–09 129 129


Appropriation Act (No.1) 2010–11 55 1,368

Appropriation Act (No.1) Capital Budget (DCB) 2010–11 133 284

Appropriation Act (No.1) 2010–11 - cash held by the department - 110


Appropriation Act (No.1) 2011–12 47 -

Appropriation Act (No.3) 2011–12 528

Appropriation Act (No.4) 2011–12 67

Appropriation Act (No.1) 2011–12 - cash held by the department 1 -

Appropriation Act (No.1) Capital Budget (DCB) 2011–12 62

Appropriation Act (No.3) Capital Budget (DCB) 2011–12 152 -

Total 1,174 30,530




Not

e 29

D: R

educ

tion

in a

dmin

iste

red

item

s ('r

ecov

erab

le G

ST e

xclu

sive

')

2011

–12

Am

ount

req

uire

d1 -

by A

ppro

pria

tion

Act

Tot

al a

mou

nt

requ

ired

1

Tot

al a

mou

nt

appr

opri

ated

2T

otal

red

ucti

on3

Ord

inar

y an

nual

ser

vice

sA

ct (N

o.1)

Act

(No.

3)

Out

com

e 1

$16,

657,

000.

00

$2,7

35,3

74.0

7 $1

9,39

2,37

4.07

$1

9,42

7,00

0.00

$3

4,62

5.93

Out

com

e 2

$122

,688

,530

.36

$0.

00$1

22,6

88,5

30.3

6 $1

22,6

88,5

30.3

6 $0

.00

Out

com

e 3

$20,

529,

513.

80

$0.0

0$2

0,52

9,51

3.80

$2

0,52

9,51

3.80

$0

.00

Not

es:

1. A

mou

nt r

equi

red

as p

er A

ppro

pria

tion

Act

(Act

1 s

. 11;

Act

2 s

. 12)

. 2.

Tot

al a

mou

nt a

ppro

pria

ted

in 2

011–

12.

3. T

otal

red

ucti

on e

ffec

tive

in 2

012–

13.

§In

acc

orda

nce

with

the

requ

irem

ents

of t

he F

MO

’s th

e nu

mbe

rs in

this

sec

tion

of th

e ta

ble

mus

t be

disc

lose

d to

the

cent

.

§A

dmin

iste

red

item

s fo

r 20

11–1

2 w

ere

redu

ced

to th

ese

amou

nts

whe

n th

e fin

anci

al s

tate

men

ts w

ere

tabl

ed in

Par

liam

ent a

s pa

rt o

f the

ent

ity’s

201

1–12

ann

ual

repo

rt. T

his

redu

ctio

n w

as e

ffec

tive

in 2

013,

but

the

amou

nts

wer

e re

flec

ted

in T

able

A in

the

2011

–12

finan

cial

sta

tem

ents

in th

e co

lum

n ‘A

ppro

pria

tions

red

uced

’ as

they

wer

e ad

just

men

ts to

201

1–12

app

ropr

iatio

ns.




2010

–11

Am

ount

req

uire

d1 -

by A

ppro

pria

tion

Act

Tot

al a

mou

nt

requ

ired

1

Tot

al a

mou

nt

appr

opri

ated

2T

otal

red

ucti

on3

Ord

inar

y an

nual

ser

vice

sA

ct (N

o.1)

Act

(No.

3)

Out

com

e 1

$10,

089,

422.

36

$0.0

0$1

0,08

9,42

2.36

$1

0,24

1,25

4.84

$1

51,8

32.4

8

Out

com

e 2

$60,

643,

477.

99

$29,

153,

226.

46

$89,

796,

704.

45

$96,

668,

169.

29

$6,8

71,4

64.8

4

Out

com

e 3

$47,

249,

430.

05

$1,0

00,0

00.0

0 $4

8,24

9,44

0.05

$4

9,67

6,16

0.13

$1

,426

,730

.08

Oth

er s

ervi

ces

Spec

ific

pay

men

ts to

Sta

tes,

AC

T,

NT

and

loca

l gov

ernm

ent

Out

com

e 3

$250

,000

.00

$0.0

0$2

50,0

00.0

0 $2

50,0

00.0

0 $0

.00

Not

es:

1. A

mou

nt r

equi

red

as p

er A

ppro

pria

tion

Act

(Act

1 s

. 11;

Act

2 s

. 12)

. 2.

Tot

al a

mou

nt a

ppro

pria

ted

in 2

010–

11.

3. T

otal

red

ucti

on e

ffec

tive

in 2

011–

12.

§In

acc

orda

nce

with

the

requ

irem

ents

of t

he F

MO

’s th

e nu

mbe

rs in

this

sec

tion

of th

e ta

ble

mus

t be

disc

lose

d to

the

cent

.

§A

dmin

iste

red

item

s fo

r 20

10–1

1 w

ere

redu

ced

to th

ese

amou

nts

whe

n th

e fin

anci

al s

tate

men

ts w

ere

tabl

ed in

Par

liam

ent a

s pa

rt o

f the

ent

ity’s

201

0–11

ann

ual

repo

rt. T

his

redu

ctio

n w

as e

ffec

tive

in 2

012,

but

the

amou

nts

wer

e re

flec

ted

in T

able

A in

the

2010

–11

finan

cial

sta

tem

ents

in th

e co

lum

n ‘A

ppro

pria

tions

red

uced

’ as

they

wer

e ad

just

men

ts to

201

0–11

app

ropr

iatio

ns.




Not

e 30

. Sp

ecia

l acc

ount

s an

d FM

A A

ct s

ecti

on 3

9 (‘r

ecov

erab

le G

ST e

xclu

sive

’)

Serv

ices

for

Oth

er

Ent

itie

s an

d T

rust

M

oney

s1

Art

s R

enta

l Sp

ecia

l Acc

ount

2

Cul

tura

l Min

iste

r's

Cou

ncil

Spec

ial

Acc

ount

3

Cul

tura

l Spe

cial

A

ccou

nt4

Nat

ion

al

Col

lect

ion

s Sp

ecia

l Acc

ount

5

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

Bal

ance

bro

ught

forw

ard

from

pr

evio

us

peri

od-

51,

888

-55

1-

--

227

-

Bal

ance

- re

stru

ctur

ing

--

-1,

880

-16

0-

--

276

Rec

eipt

s fr

om s

ale

of g

oods

and

ren

deri

ng

of s

ervi

ces

--

1,52

51,

289

180

--

-20

-

App

ropr

iati

on fo

r re

port

ing

peri

od-

--

--

--

--

-

Oth

er r

ecei

pts

658

20-

--

486

255

--

-

Tot

al in

crea

se65

820

1,52

53,

169

180

646

255

-20

276

Ava

ilab

le fo

r pa

ymen

ts65

825

3,41

33,

169

731

646

255

-24

727

6

Pay

men

ts m

ade

- oth

er-

(25)

--

(255

)-

--

--

Pay

men

ts m

ade

to s

uppl

iers

--

(657

)(7

71)

(376

)(6

0)-

-(5

3)(4

9)

Pay

men

ts m

ade

to e

mpl

oyee

s-

-(8

51)

(510

)-

--

--

-

Pay

men

ts m

ade

to g

rant

s-

--

-(1

00)

(35)

--

--

Inve

stm

ents

mad

e fr

om t

he s

peci

al a

ccou

nt-

--

--

--

--

-

Res

truc

turi

ng*

--

(1,9

05)

--

-(2

55)

-(1

94)

-

Tot

al d

ecre

ase

-(2

5)(3

,413

)(1

,281

)(7

31)

(95)

(255

)-

(247

)(4

9)

Adm

inis

tere

d

Pay

men

ts m

ade

to s

uppl

iers

--

--

--

--

--

Tot

al a

dmin

iste

red

decr

ease

s-

--

--

--

--

-

Tot

al d

ecre

ase

-(2

5)(3

,413

)(1

,281

)(7

31)

(95)

(255

)-

(247

)(4

9)

Tot

al b

alan

ce c

arri

ed t

o th

e ne

xt p

erio

d65

8-

-1,

888

-55

1-

--

227

* A

s a

con

sequ

ence

of t

he A

AO

of 1

4 D

ecem

ber

2011

, the

se s

peci

al a

ccou

nts

wer

e tr

ansf

erre

d to

DR

ALG

AS.




Nat

ion

al P

ortr

ait

Gal

lery

Spe

cial

A

ccou

nt6

Ret

urn

of I

ndig

enou

s C

ultu

ral P

rope

rty

Spec

ial A

ccou

nt7

Nat

ion

al C

ultu

ral

Her

itag

e Sp

ecia

l A

ccou

nt8

Spor

ts a

nd

Rec

reat

ion

Spec

ial

Acc

ount

9

20

1220

1120

1220

1120

1220

1120

1220

11

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

Bal

ance

bro

ught

forw

ard

from

pre

viou

s pe

riod

5,54

7-

2,36

3-

255

-92

0-

Bal

ance

- re

stru

ctur

ing

-5,

626

-1,

570

36

-53

3

Rec

eipt

s fr

om s

ale

of g

oods

and

ren

deri

ng o

f ser

vice

s-

--

--

--

-

App

ropr

iati

on fo

r re

port

ing

peri

od26

7-

829

826

-46

4-

-

Oth

er r

ecei

pts

6937

31

--

-29

264

6

Tot

al in

crea

se33

65,

999

830

2,39

6-

500

292

1,17

9

Ava

ilab

le fo

r pa

ymen

ts5,

883

5,99

93,

193

2,39

625

550

01,

212

1,17

9

Pay

men

ts m

ade

- oth

er-

--

--

--

-

Pay

men

ts m

ade

to s

uppl

iers

(84)

(452

)(6

2)(3

3)-

--

-

Pay

men

ts m

ade

to e

mpl

oyee

s-

--

--

--

-

Pay

men

ts m

ade

to g

rant

s-

-(9

3)-

--

--

Inv

estm

ents

mad

e fr

om t

he s

peci

al a

ccou

nt-

--

--

--

-

Res

truc

turi

ng*

(5,7

99)

-(3

,038

)-

--

--

Tot

al d

ecre

ase

(5,8

83)

(452

)(3

,193

)(3

3)-

--

-

Adm

inis

tere

d

Pay

men

ts m

ade

to s

uppl

iers

--

--

-(2

45)

(382

)(2

59)

Pay

men

t mad

e to

gra

nts

--

--

(16)

--

-

Res

truc

turi

ng*

--

--

(239

)-

(830

)-

Tot

al a

dmin

iste

red

decr

ease

s-

--

-(2

55)

(245

)(1

,212

)(2

59)

Tot

al d

ecre

ase

(5,8

83)

(452

)(3

,193

)(3

3)(2

55)

(245

)(1

,212

)(2

59)

Tot

al b

alan

ce c

arri

ed t

o th

e ne

xt p

erio

d-

5,54

7-

2,36

3-

255

-92

0

* A

s a

con

sequ

ence

of t

he A

AO

of 1

4 D

ecem

ber

2011

, the

se s

peci

al a

ccou

nts

wer

e tr

ansf

erre

d to

DR

ALG

AS.




1 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Instrument: Determination 2008/13 Purpose: This account was created to disburse amounts held on trust or otherwise for the benefit of a person

other than the Commonwealth.

2 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Instrument: Determination 2006/18 Purpose: 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.

3 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Instrument: Determination 2005/43 Purpose: Amounts may be debited from the special account for: (a) conducting activities of the working parties initiated by the Cultural Minister's 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.

4 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Instrument: Financial Management and Accountability Act 1997; section 20 Purpose: Any amount required or permitted to be paid in relation to activities that are approved by the

Minister for the Arts and are joint arrangements with one or more State and Territory governments may be debited from the Cultural Special Account.

5 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Instrument: Determination 2005/44 Purpose: 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.

6 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Instrument: Determination 2005/42 Purpose: 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.




7 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Instrument: Determination 2005/45 Purpose: Amounts may be debited from the special account for: (a) developing and conducting 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.

8 Appropriation: Financial Management and Accountability Act 1997; section 21 Establishing Instrument: Protection of Moveable Cultural Heritage Act 1986; section 25 Purpose: 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.

9 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Instrument: Financial Management and Accountability Act 1997; section 20 Purpose: To undertake sport and recreation related projects of common interest to the Sport and Recreation

Ministers' Council, its successor or subordinate bodies, and that benefit all or a majority of members.

Compliance with statutory conditions for payments from the Consolidated Revenue Fund

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. Finance provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

During 2011–12, the Department developed a plan to review exposure to risks of not complying with statutory conditions on payments from special accounts. The plan involved:

§ identifying each special account

§ determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions and assessing the extent to which existing payment systems and processes satisfy those conditions

§ considering legislative or procedural changes to reduce the risk of non-compliance in the future to an acceptably low level.

The Department identified eight special accounts involving statutory conditions for payment.

As at 30 June 2012 this work had been completed in respect of all special accounts with statutory conditions for payment. The work conducted has identified no issues of non-compliance with Section 83.

As a consequence of the AAOs of 14 December 2011, seven out of the eight special accounts identified were transferred to DRALGAS.




Note 31. Compensation and debt reliefDepartmental No ‘Act of Grace’ expenses were incurred during the reporting period (2011: No expenses).

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the FMA Act (2011: No waivers).

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2011: No payments).

No ex-gratia payments were provided for during the reporting period (2011: No payments).

No payments were provided in special circumstances relating to Australian Public Service (APS) employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2011: No payments).

AdministeredNo ‘Act of Grace’ expenses were incurred during the reporting period (2011: No expenses).

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the FMA Act (2011: No waivers).

No payments were provided under the CDDA Scheme during the reporting period (2011: No payments).

No ex-gratia payments were provided for during the reporting period (2011: No payments).

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the PS Act during the reporting period (2011: No payments).




Note 32. Assets held in trustMonetary assets

2012 2011

$'000 $'000Cash at bank

Total amount held at the beginning of the reporting period - 5

Receipts 658 20

Payments - (25)

Total amount held at the end of the reporting period 658 -

Financial assets held in trust were disclosed in Note 30. Special accounts in the account titled Services for Other Entities and Trust Moneys Special Account.




Not

e 33

. R

epor

ting

of o

utco

mes

The

Dep

artm

ent a

ttri

bute

s co

rpor

ate

shar

ed it

ems

base

d up

on a

vera

ge s

taff

ing

leve

ls to

ref

lect

ful

l cos

t of d

eliv

ery.

The

bas

is o

f att

ribu

tion

in t

he

tabl

e be

low

is c

onsi

sten

t wit

h th

e ba

sis

used

for

the

Bud

get.

Not

e 33

A: N

et c

ost o

f out

com

e de

liver

y

O

utco

me

1O

utco

me

2O

utco

me

3P

aym

ents

to

C

AC

Act

bod

ies

Tot

al

20

1220

1120

1220

1120

1220

1120

1220

1120

1220

11

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0D

epar

tmen

tal

Exp

ense

s(1

94,6

49)

(145

,592

)(2

0,36

8)(2

7,09

3)(3

,390

)(4

,245

)

(2

18,4

07)

(176

,930

)

Ow

n-so

urce

inco

me

35,1

1216

,639

1,40

53,

253

816

5

36

,525

20,0

57

Adm

inis

tere

d

Exp

ense

s(1

7,04

8)(9

,601

)(1

27,3

10)

(72,

721)

(20,

185)

(48,

758)

(451

,930

)(2

69,4

29)

(616

,473

)(4

00,5

09)

Ow

n-so

urce

inco

me

621,

000

2,23

149

439

41,

144

--

2,68

72,

638

Net

cos

t of o

utco

me

deliv

ery

(176

,523

)(1

37,5

54)

(144

,042

)(9

6,06

7)(2

3,17

3)(5

1,69

4)(4

51,9

30)

(269

,429

)(7

95,6

68)

(554

,744

)

Not

e: F

urth

er in

form

atio

n on

out

com

es is

det

aile

d in

Not

e 1.

1




Not

e 33

B: M

ajor

cla

sses

of d

epar

tmen

tal e

xpen

se, i

ncom

e, a

sset

s an

d lia

bilit

ies

by o

utco

me

O

utco

me

1O

utco

me

2O

utco

me

3T

otal

20

1220

1120

1220

1120

1220

1120

1220

11

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0D

epar

tmen

tal e

xpen

ses

Em

ploy

ee b

enef

its

(91,

661)

(74,

223)

(14,

814)

(12,

399)

(3,1

11)

(1,8

46)

(109

,586

)(8

8,46

8)

Sup

plie

rs(9

3,95

7)(5

6,00

8)(3

,925

)(8

,470

)(2

57)

(2,2

50)

(98,

139)

(66,

728)

Gra

nts

(2,0

61)

(10,

119)

(196

)(4

,601

)-

(71)

(2,2

57)

(14,

791)

Dep

reci

atio

n an

d am

orti

sati

on

(6,7

15)

(5,2

00)

(1,4

33)

(1,5

71)

(22)

(78)

(8,1

70)

(6,8

49)

Fin

ance

cos

ts(7

)(2

2)-

(1)

--

(7)

(23)

Wri

te-d

own

and

impa

irm

ent o

f ass

ets

(247

)(2

0)-

(9)

--

(247

)(2

9)

Los

ses

from

ass

et s

ales

(1)

--

(42)

--

(1)

(42)

Tot

al(1

94,6

49)

(145

,592

)(2

0,36

8)(2

7,09

3)(3

,390

)(4

,245

)(2

18,4

07)

(176

,930

)

Dep

artm

enta

l inc

ome

Sal

es o

f goo

ds a

nd r

ende

ring

of s

ervi

ces

31,4

0313

,656

779

3,03

6-

144

32,1

8216

,836

Res

ourc

es r

ecei

ved

free

of c

harg

e3,

613

2,98

262

621

78

214,

247

3,22

0

Rev

ersa

ls o

f pre

viou

s as

set w

rite

-dow

ns

and

impa

irm

ent

96-

--

--

96-

Rev

enue

fro

m G

over

nmen

t 15

3,26

013

2,05

815

,503

19,5

322,

605

3,95

117

1,36

815

5,54

1

Tot

al18

8,37

214

8,69

616

,908

22,7

852,

613

4,11

620

7,89

317

5,59

7




O

utco

me

1O

utco

me

2O

utco

me

3T

otal

20

1220

1120

1220

1120

1220

1120

1220

11

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0D

epar

tmen

tal a

sset

s

Cas

h an

d ca

sh e

quiv

alen

ts2,

640

636

-7,

377

--

2,64

08,

013

Tra

de a

nd o

ther

rec

eiva

bles

16

,906

30,7

41-

16,8

66-

4,77

816

,906

52,3

85

Acc

rued

rev

enue

5,

378

6,18

9-

--

-5,

378

6,18

9

Lan

d an

d bu

ildin

gs-

--

81,0

79-

--

81,0

79

Pro

pert

y, p

lant

and

equ

ipm

ent

34,5

1734

,181

-60

,887

--

34,5

1795

,068

Int

angi

bles

5,79

53,

183

-52

--

5,79

53,

235

Inv

ento

ries

-

--

30-

23-

53

Pre

paym

ents

1,31

03,

837

-62

--

1,31

03,

899

Tot

al66

,546

78,7

67-

166,

353

-4,

801

66,5

4624

9,92

1

Dep

artm

enta

l lia

bilit

ies

Sup

plie

rs(7

,687

)(1

1,02

2)-

(1,6

99)

-(1

,153

)(7

,687

)(1

3,87

4)

Gra

nts

(399

)(2

,207

)-

(3,4

96)

--

(399

)(5

,703

)

Oth

er p

ayab

les

(3,4

87)

(4,4

84)

-(2

,318

)-

-(3

,487

)(6

,802

)

Em

ploy

ee p

rovi

sion

s(2

1,91

8)(2

1,77

6)-

(6,0

62)

-(1

,029

)(2

1,91

8)(2

8,86

7)

Oth

er p

rovi

sion

s (5

,719

)(5

,203

)-

(30)

--

(5,7

19)

(5,2

33)

Tot

al(3

9,21

0)(4

4,69

2)-

(13,

605)

-(2

,182

)(3

9,21

0)(6

0,47

9)




Not

e 33

C: M

ajor

cla

sses

of a

dmin

iste

red

expe

nse

s, in

com

e, a

sset

s, a

nd li

abil

itie

s by

out

com

e

Out

com

e 1

Out

com

e 2

Out

com

e 3

Pay

men

ts t

o

CA

C A

ct b

odie

sT

otal

20

1220

1120

1220

1120

1220

1120

1220

1120

1220

11

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0 A

dmin

iste

red

expe

nse

s

Em

ploy

er B

enef

its

(828

)(8

87)

--

--

--

(828

)(8

87)

Sup

plie

rs(5

,789

)(4

,566

)(3

,607

)(8

86)

(186

)(6

35)

--

(9,5

82)

(6,0

87)

Gra

nts

(9,2

47)

(3,4

55)

(122

,889

)(5

1,38

2)(1

9,99

9)(4

8,12

3)-

-(1

52,1

35)

(102

,960

)

Dep

reci

atio

n an

d am

orti

sati

on(6

14)

(121

)(8

14)

(801

)-

--

-(1

,428

)(9

22)

Roy

alti

es-

--

(19,

652)

--

--

-(1

9,65

2)

Fin

ance

cos

ts(5

66)

(570

)-

--

--

-(5

66)

(570

)

Wri

te-d

own

and

impa

irm

ent o

f ass

ets

(4)

(2)

--

--

--

(4)

(2)

Pay

men

ts to

CA

C A

ct b

odie

s-

--

--

-(4

51,9

30)

(269

,429

)(4

51,9

30)

(269

,429

)

Tot

al(1

7,04

8)(9

,601

)(1

27,3

10)

(72,

721)

(20,

185)

(48,

758)

(451

,930

)(2

69,4

29)

(616

,473

)(4

00,5

09)

Adm

inis

tere

d in

com

e

Int

eres

t-

--

-10

016

5-

-10

016

5

Oth

er r

even

ue62

-2,

231

494

294

979

--

2,58

71,

473

Oth

er g

ain

s-

1,00

0-

--

--

--

1,00

0

Tot

al62

1,00

02,

231

494

394

1,14

4-

-2,

687

2,63

8




Out

com

e 1

Out

com

e 2

Out

com

e 3

Pay

men

ts t

o

CA

C A

ct b

odie

sT

otal

20

1220

1120

1220

1120

1220

1120

1220

1120

1220

11

$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0A

dmin

iste

red

asse

ts

Cas

h an

d ca

sh e

quiv

alen

ts1

12-

--

136

--

114

8

Rec

eiva

bles

7182

-2,

445

-7,

777

--

7110

,304

Oth

er in

vest

men

ts96

482

0-

7,00

0,90

3-

283,

985

--

964

7,28

5,70

8

Lan

d an

d bu

ildin

gs-

--

33,8

79-

--

--

33,8

79

Pro

pert

y, p

lant

and

equ

ipm

ent

1,78

81,

929

--

--

--

1,78

81,

929

Oth

er n

on-fi

nanc

ial a

sset

s97

40-

181

--

--

9722

1

Tot

al2,

921

2,88

3-

7,03

7,40

8-

291,

898

--

2,92

17,

332,

189

Adm

inis

tere

d li

abil

itie

s

Sup

plie

rs(3

45)

(378

)-

(1,2

02)

-(2

,346

)-

-(3

45)

(3,9

26)

Gra

nts

(388

)-

-(2

,181

)-

(1,1

80)

--

(388

)(3

,361

)

Oth

er p

ayab

les

(56)

(42)

-(3

0)-

--

-(5

6)(7

2)

Em

ploy

ee p

rovi

sion

s(3

70)

(344

)-

--

--

-(3

70)

(344

)

For

mer

Gov

erno

rs-G

ener

al p

rovi

sion

(13,

640)

(10,

668)

--

--

--

(13,

640)

(10,

668)

Oth

er p

rovi

sion

s(1

32)

(126

)-

--

--

-(1

32)

(126

)

Tot

al(1

4,93

1)(1

1,55

8)-

(3,4

13)

-(3

,526

)-

-(1

4,93

1)(1

8,49

7)




Note 34. Net cash appropriation arrangements 2012 2011

$'000 $'000Total comprehensive loss less depreciation/amortisation expenses previously funded through revenue appropriations1

(2,344) 5,530

Plus: depreciation/amortisation expenses previously funded through revenue appropriation 8,170 6,849

Total comprehensive loss - as per the Statement of Comprehensive Income (10,514) (1,319)1 From 2010–11, the Government introduced net cash appropriation arrangements, where revenue

appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.




Part 5:

AppendicesAppendix A – The PM&C Craft 212

Appendix B – What do we want the Australian Public Service to be? 214

212 Part 5: Appendices


How we do it

§ Through first class analytic, writing and oral communication skills – excel in being able to present what the Prime Minister needs to know at the time, with the clarity and at the length that is appropriate – presenting clearly a preferred outcome, highlighting any risks and guiding the Prime Minister in handling conflicting parties

§ Choose wisely where we spend our time to influence what matters

§ Consult within PM&C and present a whole of department view – looking out for the interests of other parts of PM&C and sifting intelligence, developing strategies and presenting advice

§ By maintaining a close, but independent relationship with the Prime Minister’s Office

§ Building strong relationships of trust and mutual respect with central agencies and line departments through reciprocal relationships and sharing experience and knowledge to achieve a common goal

What we do

§ Focus on the Prime Minister – know what is important and what will become important

§ Intervene with discrimination - influence what matters

§ Support good government – work closely with departments to ensure that the Cabinet and the Government has clear advice, that policy debate is well informed and choices are clearly presented and that Government decisions are effectively conveyed and acted on

§ Lead through partnership – but do not shirk acting if things are going off track, or big change needs to be inspired or supported from the centre.

Appendix A – The PM&C Craft

213Part 5: Appendices


How we organise for it

§ By recruiting the best ‘up and coming’ people including from line departments and through graduate programs and giving them at least three years experience in PM&C while valuing and providing a career path for the cadre of PM&C experts who have longer experience

§ By using taskforces consisting of experts from line departments and outside the public service when appropriate, together with central agency staff, to work on matters of priority for the Prime Minister and the Cabinet

§ By protecting the capacity to do strategic policy work and over the horizon scanning on the big issues while also ensuring that line divisions maintain the capacity and responsibility to participate in the forward policy agenda in addition to handling day-to-day urgent pressures

§ Ensuring that PM&C has people who are delivery experts as well as policy experts

§ By being clear about our priorities, and providing a supported and integrated ICT, HR and financial environment.

§ Through effective negotiation with other governments, the private sector and civil society

§ By developing strong and respectful professional relationships, networks and linkages with key officials in the States and Territories, in the private sector and civil society

§ Maintaining professional skills through relationships with the best and brightest in line departments, among external thinkers and by being aware of international best practice

§ Understanding how government works – in particular the Cabinet process, the Budget cycle, the legislative process, the major structures of intergovernmental relations domestically and internationally, and public administration and capability (including effective allocation of policy responsibilities across agencies)

§ By planning ahead wherever possible and not mistaking tight deadlines for crises.

214 Part 5: Appendices


We should be passionate about what we do, but we need to be open to the ideas of others and dispassionate in our assessment of ourselves. We should be realistic but ambitious about the results possible for ourselves, for government and for Australia.

Our culture should encourage constructive debate about ideas and innovation; and identify and manage risk appropriately.

Our policy advice should be well-timed, communicated effectively and analytically sound. The advice (and all of our thinking about our business) should be informed by the past and look to the future. Wherever possible, we should take the 10-year, the 20-year or the 50-year view.

When we deliver services, we need to be both efficient and compassionate, and to encourage and value the contribution the Australian public can make.

Our reputation

It is vital that we be trusted by governments, by the public and by one another. The respect we earn boosts the confidence and influence of the Australian Public Service (APS).

A high-performing APS should be respected for our competence, our intellect, our ideas and our ethics.

Our relationships

Within the public service, we need to be strongly collegiate.

As one APS, we should be mindful of our common purpose. We need not always agree, but we should collaborate generously and

Our contribution

Our objective is to be the advisers, implementers and deliverers of choice for Australian governments, now and in the future.

We need to be well informed about our country, its place in the world and the opportunities that gives us. We need to be highly effective, working to help deliver good government for Australians.

We need to provide continuity for Australia as governments, leaders and priorities changes. That means we should have views about what should change, and what should stay the same.

Our approach

We are united by our ethics and our sense of purpose, and we need to live our values as one organisation working to serve the Government and Australians.

Our ethical framework requires that we give the advice that we think presents the best way forward, even when it might be unpopular with the Government.

We are independent, and need to maintain that independence.

We need to manage our resources carefully, and be always mindful that the Australian public pays for us to do our jobs and is directly affected by our decisions.

As a public service, we should be self-confident. This means having a well-founded belief in our own ability to work things out, to get things done and to do things well.

Self-confidence will help us to attract and to keep talented public servants, and will help us work in partnership with and be responsive to the government of the day.

Appendix B – What do we want the Australian Public Service to be?

215Part 5: Appendices


We should cleverly exploit the size and diversity of the public service to keep our people interested and to help them learn. We should promote mobility, and seek to enrich our organisations with effective people drawn from varying backgrounds, skills, interests and career experience.

Our leadership

Our leaders are responsible for the future of their organisations, and they need to nurture the talents of each employee so they can give of their best and prepare the best of those around them for future leadership roles.

Our leaders live our values and model the kind of APS that we want to be.

Our leaders are responsible for the effectiveness of the broader public service as well as their organisations. This means they should be good at sharing information, access, resources, skills and people.

Within all our organisations, our leaders should be effective managers who are good with people.

constantly. We should develop both the breadth and depth of our skills base as a public service, beyond our own agencies.

At the same time, we need to seek and welcome external advice, knowledge and expertise; and work with others to assemble and weigh evidence and build constituencies for beneficial change.

Our people

The nature and importance of our work should help us to ensure we have a high quality workforce. We compensate reasonably but not generously and should focus on our main attraction as an employer: offering engaging work that matters to Australians.

Our capacity to advise, to influence and to help change means we can offer a satisfying, diverse and influential career; and we should be competitive with large private sector firms in employing the country’s brightest young people. We then need to be careful to use their talents well.

Part 6:

Glossary and indexesCompliance index 218

Index of figures 221

List of abbreviations 222

Glossary of key terms 225

Alphabetical index 227

218 Part 6: Glossary and indexes


List of Requirements

As per the Requirements for departmental annual reports, below is the compliance index providing a page reference for the location of each item.

Description RequirementLocation page no

Letter of transmittal Mandatory iii

Table of contents Mandatory vi-vii

Index Mandatory 227-239

Glossary Mandatory 225-226

Contact officer(s) Mandatory ii

Internet home page address and Internet address for report Mandatory ii

Review by Secretary

Review by departmental Secretary Mandatory 9

Summary of significant issues and developments Suggested 9

Overview of department’s performance and financial results Suggested v, 9-11, 16-59, 94-101

Outlook for following year Suggested 11

Significant issues and developments – portfolio Portfolio departments – suggested

2-6

Departmental overview

Role and functions Mandatory v, 5-6

Organisational structure Mandatory 8

Outcome and program structure Mandatory 5

Where outcome and program structures differ from PB Statements/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change

Mandatory 2-6

Portfolio structure Portfolio departments - mandatory

2

Report on performance

Review of performance during the year in relation to programs and contribution to outcomes

Mandatory 16-59

Actual performance in relation to deliverables and KPIs set out in PB Statements/PAES or other portfolio statements

Mandatory 16-59

Where performance targets differ from the PBS/PAES, details of both former and new targets, and reasons for the change

Mandatory 5

Narrative discussion and analysis of performance Mandatory 16-59

Compliance index

219Part 6: Glossary and indexes



Trend information Mandatory 16-91

Significant changes in nature of principal functions/services Suggested 2-6

Performance of purchaser/provider arrangements If applicable, suggested

82

Factors, events or trends influencing departmental performance Suggested 2-59

Contribution of risk management in achieving objectives Suggested 65

Social inclusion outcomes If applicable, mandatory

21

Performance against service charter customer service standards, complaints data, and the department’s response to complaints

If applicable, mandatory

66

Discussion and analysis of the department’s financial performance Mandatory 94-208

Discussion of any significant changes from the prior year, from budget or anticipated to have a significant impact on future operations.

Mandatory 94-208

Agency resource statement and summary resource tables by outcomes Mandatory 94-101

Management and accountability

Corporate governance

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 62-66

Names of the senior executive and their responsibilities Suggested 62-63

Senior management committees and their roles Suggested 63-65

Corporate and operational planning and associated performance reporting and review

Suggested 62

Approach adopted to identifying areas of significant financial or operational risk

Suggested 65

Policy and practices on the establishment and maintenance of appropriate ethical standards

Suggested 65-66

How nature and amount of remuneration for SES officers is determined Suggested 72

External scrutiny 66-67

Significant developments in external scrutiny Mandatory 66-67

Judicial decisions and decisions of administrative tribunals Mandatory 67

Reports by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman

Mandatory 66-67

Management of human resources

Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

Mandatory 67-68

Workforce planning, staff turnover and retention Suggested 74

Impact and features of enterprise or collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and AWAs

Suggested 68-72




Training and development undertaken and its impact Suggested 74-75

Work health and safety performance Suggested 80

Productivity gains Suggested 72

Statistics on staffing Mandatory 69-73

Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs

Mandatory 68-69

Performance pay Mandatory 72

Assessment of effectiveness of assets management If applicable, mandatory

82

Assessment of purchasing against core policies and principles Mandatory 82

The annual report must include 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 82-83

Absence of provisions in contracts allowing access by the Auditor-General Mandatory 82

Contracts exempt from the AusTender Mandatory 82

Financial Statements Mandatory 93-208

Other mandatory information

Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011)

Mandatory 80

Advertising and Market Research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory 84

Ecologically sustainable development and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory 84-88

Compliance with the agency’s obligations under the Carer Recognition Act 2010

If applicable, mandatory

Not applicable

Grant programs Mandatory 91

Disability reporting – explicit and transparent reference to agency level information available through other reporting mechanisms

Mandatory 78

Information Publication Scheme statement Mandatory 83

Correction of material errors in previous annual report If applicable, mandatory

Not applicable

List of requirements Mandatory 218



Ref no. Figure title Page no.

1.1 PM&C Portfolio changes to agencies and functions during 2011–12 4

1.2 PM&C’s outcome and program structure 5

1.3 Organisational structure 8

2.1 Summary of items of correspondence processed 48

2.2 Numbers of Senate Estimates questions on notice 48

2.3 Performance relating to parliamentary questions 50

2.4 Services to the Cabinet and other decision makers 52

2.5 Summary of ceremonial and hospitality services 58

3.1 Staff distribution at 30 June 2012 69

3.2 Trends in employment agreements 69

3.3 Human resources workforce profile 70

3.4 Trends in base salary 72

3.5 Human resources workforce profile – numbers, commencements, retentions and separations 73

3.6 Health and safety performance 80

3.7 Trends in consultancies 83

3.8 Freedom of information requests and performance 83

3.9 2011–12 advertising and market research 84

3.10 National Australian Built Environment Rating System (NABERS) for the Andrew Fisher Building 85

3.11 Performance against environment goals 86

3.12 Trends in energy usage 87

3.13 Trends in carbon dioxide emissions 87

3.14 Trends in emissions by source 87

3.15 Trends in leased vehicle targets 88

3.16 Trends in recycled waste 88

3.17 Recycled graphic 88

3.18 Trends in breakdown of recycled waste 89

4.1 PM&C resource statement 97

4.2 Expenses by outcome and program 99

Index of figures



AAO Administrative Arrangements Order

AASB Australian Accounting Standards Board

AAT Administrative Appeals Tribunal

ABC Australian Broadcasting Corporation

ABGR Australian Building Greenhouse Rating

AC Companion of the Order of Australia

ACCC Australian Competition and Consumer Commission

ADF Australian Defence Force

AE Additional Estimates

AIC Australian Information Commissioner

AFM Advance to Finance Minister

AGD Attorney-General’s Department

ANAO Australian National Audit Office

ANIPP Australian National Institute of Public Policy

ANSF Afghan National Security Forces

ANU Australian National University

ANZAC Australia and New Zealand Army Corps

ANZSOG Australian and New Zealand School of Government

APEC Asia–Pacific Economic Cooperation forum

APS Australian Public Service

APSC Australian Public Service Commission

AS Assistant Secretary

ASIB Australian Social Inclusion Board

ATO Australian Taxation Office

AWA Australian Workplace Agreement

BAFW Building Australia’s Future Workforce

BE Budget Estimates

CAC Act Commonwealth Authorities and Companies Act 1997

CARICOM Caribbean Community

CDDA Compensation for Detriment caused by Defective Administration Scheme

CDF Capability Development Framework

CIU Cabinet Implementation Unit

CHOGM Commonwealth Heads of Government Meeting

CNSB Coordinated National Security Budget

CPC Communist Party of China

CPGs Commonwealth Procurement Guidelines

COAG Council of Australian Governments

CRC COAG Reform Council

List of abbreviations



CSD Corporate Services Division

CSS Commonwealth Superannuation Scheme

DBCDE Department of Broadband, Communications and the Digital Economy

DCB Departmental Capital Budget

DEEWR Department of Education, Employment and Workplace Relations

Defence Department of Defence

DFAT Department of Foreign Affairs and Trade

DIISRTE Department of Industry, Innovation, Science, Research and Tertiary Education

DRALGAS Department of Regional Australia, Local Government, Arts and Sport

EA PM&C Enterprise Agreement 2011-14

EL Executive Level

ELG Executive Leadership Group

EMS Environmental Management System

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

ERC Expenditure Review Committee of Cabinet

EU European Union

FaHCSIA Department of Families, Housing, Community Services and Indigenous Affairs

FAS First Assistant Secretary

FBT Fringe Benefits Tax

Finance Department of Finance and Deregulation

FMA Financial Management and Accountability Act 1997

FMO Financial Management Order

FOI freedom of information

FOIC Freedom of Information Commissioner

G20 Group of Twenty Finance Ministers and Central Bank Governors

GDP Graduate Development Program

GSG Graduate Support Group

GST Goods and Services Tax

GVG Green Vehicle Guide

HCA High Court of Australia

HR Human Resource

HSC Health and Safety Committee

HSMA Health and Safety Management Arrangements

ICT Information and Communication Technology

INSLM Independent National Security Legislation Monitor

ISAF International Security Assistance Force

ISB Information Services Branch

IT Information Technology



IPS Information Publication Scheme

IYV10 International Year of the Volunteer 10th Anniversary

JCPAA Joint Committee on Public Accounts and Audit

KPI Key performance indicator

MOU Memoranda of Understanding

MP Member of Parliament

MSD Ministerial Support Division

NABERS National Australian Built Environment Rating System

NADC National Australia Day Council

NAIDOC National Aborigines and Islanders Day Observance Committee

NATO North Atlantic Treaty Organisation

NCTC National Counter-Terrorism Committee

NDIS National Disability Insurance Scheme

NEMC National Emergency Management Committee

NICC National Intelligence Coordination Committee

NMHC National Mental Health Commission

NPA National Partnership Agreement

NPG National Portrait Gallery

NSA National Security Adviser

NSC National Security Committee

NSCIO National Security Chief Information Officer

NSPCG National Security Policy Coordination Group

OHS Act Occupational Health and Safety Act 1991

OPA Official Public Account

OWF Office of Work and Family

PACE Pacific Executive Program

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PCPB People, Capability and Performance Branch

PIF Pacific Islands Forum

PM&C Department of the Prime Minister and Cabinet

PMDS Performance Management and Development Scheme

PSS Public Sector Superannuation Scheme

QON Question on Notice

Rio+20 United Nations Conference on Sustainable Development (June 2012)

SBE Supplementary Budget Estimates

SES Senior Executive Service

SEWPAC Department of Sustainability, Environment, Water, Population and Communities

VEP Vacation Employment Program

VRC Volunteer Resource Centres

WHS Act Work Health and Safety Act 2011



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. The current EA for the Department is PM&C Enterprise Agreement 2011-14.

Expenditure Review Committee of Cabinet: the ministerial committee responsible for examining all expenditure proposals in light of the Government’s overall fiscal strategy.

G20: the Group of Twenty (G20) is the premier forum for international economic cooperation. The G20 is a group of 19 countries and the European Union. G20 Leaders, Finance Ministers and Central Bank Governors meet regularly to address global economic and financial challenges.

inoperative employee: an employee on paid leave greater than three months (maternity leave, long service leave or annual leave) or on leave without pay (external temporary transfers, overseas travel or study) or other temporary employment in the interests of the Australian Public Service.

Administrative 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.

APS200: the senior leadership forum for the Australian Public Service (APS) and has a lead role in communicating the vision of the future APS and building the understanding, engagement and commitment of staff to a forward looking, innovative and continually improving APS. It comprises members of the Secretaries Board, SES Band 3s and selected agency heads (equivalent to Band 3).

Budget: the Australian Government Budget sets out the fiscal and economic outlook for Australia, and includes expenditure and revenue estimates for the current financial year, the budget year and the three forward financial years.

Chief Executive’s Instruction: instructions and guidance provided for accountability requirements under the Financial Management and Accountability Act 1997.

Closing the Gap: Closing the Gap is a commitment by all Australian governments to improve the lives of Indigenous Australians, and in particular provide a better future for Indigenous children. A national integrated Closing the Gap strategy has been agreed through COAG.

Glossary of key terms



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.

Portfolio Additional Estimates Statements: statements that inform senators, members and the public of changes since the Budget to the proposed allocation of resources to government outcomes.

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 2.

secondee: an employee of other agencies/organisations who continues to be employed and paid by their home agency/organisation, under their terms and conditions of employment whilst working in PM&C. Secondees are often used where PM&C is working with the secondee’s home agency/organisation on a particular issue or piece of work.

Key performance indicators: used to assess and monitor the Department’s performance and to provide a record of our progress towards supporting the Government to meet its policy objectives, how public money was spent and whether planned achievements were on track.

machinery of government (MOG) changes: organisational or functional changes affecting the Commonwealth. Common examples of MOG changes include changes to the Administrative Arrangements Order (AAO) following a Prime Ministerial decision to abolish or create a department or to move functions/ responsibilities between departments/agencies and the creation of a new statutory agency or executive agency, or abolition of such agencies.

National Partnership Agreement (NPA): a mechanism that allows for policy or project collaboration between the Commonwealth and the States. A NPA generally provides for financial transfers between the Commonwealth and the States to support this collaboration.

National Funding Agreement: funding agreements between the Commonwealth and State and Territory Governments.

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.

not-for-profit sector: the not-for-profit sector is made up of a diverse range of entities. Called by many different names – third sector, voluntary sector and the social economy – the sector comprises organisations established for a community purpose, whether altruistic or mutual in nature.



A

Aboriginal Flag, 46

Aboriginal peoples, see Indigenous peoples

accountability and management, 61–91

administered finances, 96

Administrative Arrangements Order changes, 2–4, 94–5

financial affects, 10, 96

staffing affects, 68, 73

administrative tribunal decisions, 44, 67

advertising and market research, 84

Afghanistan, 36–7, 56

age of staff, 68, 71

aged care, 19

agriculture, 20

food security, 26, 37

Ahead of the game Blueprint for the Reform of Australian Government Administration, 10, 41

‘PM&C Craft’, 10, 212–13

airport facilitations, 57, 58

Andrew Fisher Building, 13, 85–90

annual reports

Closing the Gap targets, 23

COAG Reform Council, 27

National Security Legislation Monitor, 32

Anzac Day, 37, 56

APEC Leaders’ Meeting, 37, 56

APS, see Australian Public Service

APS200, 38

Army, 35

arts and culture, 3, 18, 84

Office for the Arts, 68

Arts and Sports Group, see Department of Regional Australia, Local Government, Arts and Sport

Asian century, see Australia in the Asian Century

Asian Development Bank, 57

asset management, 82

Associate Secretaries, 62

Attorney-General’s Department, 21–2, 77

cyber security policy responsibilities, 31

Audit Committee, 63

audits, 66–7

internal, 63

AusAID, 91

Australia and New Zealand School of Government (ANZSOG), 77–8

Pacific Executive Program, 91

Australia Day, 58

Council, 46, 63, 91

Australia in the Asian Century, 28, 37

Australia in the Asian Century Taskforce, 16, 28, 69

Australia–New Zealand Leaders’ Meeting, 37

Australian Bravery Decorations Council, 46

Australian Charities and Not-for-profits Commission, 22

Australian Civilian Corps, 35

Australian Defence Force, 34, 35

Australian flags, 46

Australian Government Branding Design Guidelines, 46

Australian Government Disaster Recovery Payment, 24

Australian honours system, 46, 63

Australian Information Commissioner, 2, 67

Australian Institute of Family Studies, 2

Australian Local Government Association, 27

Australian National Audit Office, 66–7

financial statement audit report, 104

Australian National Flag, 46

Australian National University, 33, 75

Australian of the Year Awards, 46, 58

Australian Operational Service Medal, 46

Australian Public Service (APS), 6

Indigenous graduate program, 75

Secretaries’ Board ‘What do we want the Australian public service to be?’ statement, 11, 214–15

Alphabetical index



Cabinet committees, 24, 28

secretariat services, 20, 21, 25, 51–2

Cabinet Division, 42, 51–2

Cabinet documents, 51, 52

Cabinet Implementation Unit, 38, 40–1

Cabinet Secretariat, 24

Capability Development Framework, 74–5

Capability Review, 10

carbon pricing, 20

Caring for Our Country Program, 20

centenary of Department, 12–13

Ceremonial and Hospitality Branch, 13

official and ceremonial support program component, 56–9, 100

charities, 22

events held at official establishments, 59

Chief Information Officer, 64

China, 28, 57

CHOGM, see Commonwealth Heads of Government Meeting 2011

cigarettes, plain packaging of, 44

classification of staff, 70

Clean Energy Future package, 20, 40

climate change, 20

see also energy

Closing the Gap targets, 23, 24

COAG, see Council of Australian Governments

coal, 20

Coat of Arms, 46

Codd, Michael, 12

commencements of staff, 73

see also recruitment

Commonwealth Coat of Arms, 46

Commonwealth companies, 2

Commonwealth Flag Network, 46

Commonwealth Heads of Government Meeting 2011, 30, 53–5

finance, 95, 100

Commonwealth Secretariat, 55

Australian Public Service Commission (APSC), 75, 77

APS200 horizon scanning workshop, 38

Capability Review, 10

SES Leadership Development Framework, 40

Australian Public Service Policy Implementation Network, 40

Australian Social Inclusion Board (ASIB), 21, 22

average staffing levels, 100, 101

awards, see honours and awards

B

Bali, 37

banking, 25–6

Better Futures, Local Solutions Program, 22

biodiversity, 20

biosecurity, 20

border protection, 32

Bowen, Hon Lionel, 58

Brazil, 37, 56

briefs, v, 42, 48, 51

Britain, see United Kingdom

broadband, 20, 37

Budget Coordination Committee, 25

Building Australia’s Future Workforce package, 19

Business Advisory Forum, 27, 47

Business Tax Working Group, 47

C

Cabinet, 51–2

briefs provided to, v

community meetings, 49, 50

decision making, 40



D

de Brouwer, Dr Gordon, 62

defence, 34, 35

see also national security

Defence, Intelligence and Information Sharing Division, 6, 34–6

Defence Strategic Reform Advisory Board, 35

Denmark, 56, 57

Department of Broadband, Communications and the Digital Economy (DBCDE), 20, 95

Department of Climate Change and Energy Efficiency, 77, 90

National Greenhouse Accounts Factors, 87

Department of Defence, 3, 35

Department of Education, Employment and Workplace Relations (DEEWR), 18, 19, 21–2, 94

Department of Families, Housing, Community Services and Indigenous Affairs, 21–2, 23, 39

Department of Finance and Deregulation (Finance), 20, 22, 24

Department of Foreign Affairs and Trade, 54

Department of Health and Ageing, 18, 22

Department of Human Services, 21, 22

Department of Immigration and Citizenship, 19

Department of Industry, Innovation, Science, Research and Tertiary Education (DIISTRE), 19, 20, 22

Department of Infrastructure and Transport, 20

Department of Regional Australia, Local Government, Arts and Sport (DRALGAS), 20, 22, 84, 90

Department of Regional Australia, Regional Development and Local Government, 2

Department of Sustainability, Environment, Water, Population and Communities (SEWPAC), 20, 22

Department of the Treasury, 18, 22, 24

departmental finances, see finance

communications, 20

see also information technology

Community Cabinet meetings, 49, 50

Community Engagement team, 49, 50

company tax, 47

complaints, 66

freedom of information request handling, 67

constitutional policy, 43

consultants, 82–3

Consultative Committee, 64

corporate governance, 48, 62–6

Corporate Management Meeting, 63

Corporate Services Division (CSD), 63, 64

correspondence, 42, 48

Council for the Order of Australia, 46, 63

Council of Australian Governments (COAG), 27, 40, 58

environment regulation reform, 20

health and mental health reform, 18

National Disability Insurance Scheme, 23

regulatory reform agenda, 47

see also National Partnership Agreements

Council of Australian Governments (COAG) Reform Council, 16, 27, 90

Council of Australian Governments (COAG) Unit, 26

counter-terrorism, 31–2

court decisions, 44, 67

Cowen, Sir Zelman, 59

Crane, Terry, 53

crises, see emergency management

Cross, Rebecca, 62

cross-agency audits, 66

culture, see arts and culture

cyber policy, 6, 31

Cyber Defence University Challenge, 33

Cyber Policy and Homeland Security Division, 6, 31–3, 64

Cyber Policy Coordinator functions, 6



emergency management, 32

ICT Disaster Recovery capability, 90

National Emergency Medal, 46, 58

natural disaster events, 24, 32

employee assistance program, 80

employment, 19, 22, 40, 47

global, 26

see also staff

Empowering Local Schools NPA, 19

energy, 20, 40

Enterprise Agreement 2011–2014 (EA), 64, 68, 72

environment, 20, 40

PM&C performance, 84–90

United Nations Conference on Sustainable Development, 37

Environmental Management Committee, 86

Environmental Management System, 86

Environmental Policy Statement, PM&C, 84–5

equal employment opportunity group participation, 68, 71, 75

equity and social inclusion, 21–4

departmental workforce diversity, 68, 71, 75; see also Indigenous staff

euro area crisis, 26

European Commission, 57

European Union, 57

Executive Council, see Federal Executive Council

Executive Leadership Group (ELG), 62–3, 64

approval of risk management plan, 65

satisfaction with domestic policy advice, 16

Executive Level staff, 68, 70

industry secondment program, 77

Expenditure Review Committee of Cabinet, 24

expenses, see finance

external scrutiny, 66–7

departmental organisation, see organisation and structure; restructuring

Deputy National Security Adviser, 63

committees and groups chaired by, 32, 35, 63

Deputy Secretaries, 62–3, 64

digital economy, see information technology

disability insurance, 23, 69

disability reporting, 78

disadvantage, 21–2

disarmament and non-proliferation, 37

disasters, see emergency management

documents, 90–1

briefs and briefings, v, 42, 48, 51

Cabinet related, 51, 52

court-ordered discovery of, 44

Cowen’s (Sir Zelman) papers, 59

see also freedom of information

domestic economy, 19, 25–6, 47

domestic policy (Domestic Policy Group), 16–28

Associate Secretary, 62

E

early childhood, schools and youth attainment National Partnership Agreement, 19

early childhood, schools and youth team, 18

East Asia Summit, 37

East Timor (Timor-Leste), 35, 37, 57

ecologically sustainable development and environmental performance, 84–90

Economic Division, 25–7, 64

economy, 19, 25–7, 47

Edith Cowan University, 33

education and training, 18, 19–20

e-classroom link between Australia and Korea, 37

National Partnership Agreements, 19, 27

see also staff learning and development; universities



G

G20, 26–7, 56, 62, 64

Gabon, 57

gambling, 24

gender restrictions, ADF, 35

global economy, 26–7

global engagement, see international engagement

Gonski Review of Funding for Schooling, 18

governance, 48, 62–6

Governance Group, 6, 38, 42–53

Governance Models for Location-Based Initiative report, 22

Government Division, 6, 42, 43–7, 64

Governor-General, 52

Governors-General, support for former, 59, 69

Graduate Development Program, 65, 73, 75–7, 79

Graduate Support Group, 65

grant programs, 59, 91, 96

guest of government visits, 57, 58

Guide to Implementation Planning, 40

H

health and safety, PM&C, 64–5, 66, 80

health reform, 18

High Court of Australia, 44

higher education, see universities

history of Department, 12

Homeland and Border Security Review, 34

homelessness, 27, 39

honours and awards, 46, 58, 63

Members of Parliament National Volunteer Awards, 22

Public Service Medal, 26

hospital funding, 18

housing, 25

F

Facilities and Accommodation Team, 89

families, 24

Families, Housing, Community Services and Indigenous Affairs portfolio, transfers to, 2

Family Law Act 1975, 2

Faulkner, Senator John, 12

Federal Court of Australia, 44

Federal Executive Council, 51, 52

finance, 10, 63, 64, 93–208

grant programs, 59, 91, 96

remuneration, 72, 78

financial performance, 94–101

financial sector, 25–6

financial statements, 93–208

Audit Committee meetings, 63

fiscal policy, 24, 25

Fisher, Andrew, 13

flags, 46

flooding, 24, 32

food security, 26, 37

Force 2030, 34

forests, 20

former Governors-General, support for, 59, 69

Foundations for a Stronger Fairer Australia, 21, 23

fraud prevention and control, 63, 66

freedom of information (FOI), 42, 44, 83

advice on Cabinet related documentation, 52

complaints, 67

transfer of policy function, 2

Freedom of Information Act 1982, 2, 83

Freedom of Information Commissioner, 67

Freedom of Information (FOI) Guidance Notices, 44

From Postbox to Powerhouse, 12

full time staff, v, 69-77

funding, see finance

Future Jobs Forum, 47



infrastructure, 20

Inspector-General of Intelligence and Security, 35

intelligence, 34, 35

information sharing, 6, 34, 36

internal audit, 63

International Division, 36–7, 54, 64

international economy, 26–7

international engagement, 36–7

overseas visitors, 30, 37, 56, 57, 58; Commonwealth Heads of Government Meeting, 51–3

overseas visits, 26, 30, 36–7, 56, 58; Australia in the Asian Century Taskforce, 28

International Monetary Fund, 26

international security, 31

nuclear non-proliferation and disarmament, 37

International Security Assistance Force (ISAF) Summit, 37, 56

International Year of the Volunteer, 22

internship program, 77

Investment Review Committee, 64

J

Japan, 28

job seekers, disadvantaged, 22

Joint Committee of Public Accounts and Audit, 27

judicial decisions, 44, 67

K

key performance indicators, see performance indicators

Kirribilli House, 59

Korea, 37, 56

How Australia is Faring, 21

Howard, Hon John, 13

Human Capital Strategy 2011–14, 64

human resources, see staff

I

immigration, 19

Implementation Division, 6

implementation of policy, 40–1

income, see finance

Independent National Security Legislation Monitor, 32

Independent Review of the Intelligence Community, 35

India, 28, 57

Indigenous peoples, 23–4

flags, 46

Indigenous policy team, 18

Indigenous staff, v, 68, 71

graduates, 75

Prime Minister’s Indigenous Executive Leadership Fellowship, 77–8

Indonesia, 28, 37, 56

Indonesia–Australia Leaders’ Meeting, 37

induction program, 65–6

industrial relations, see workplace relations

Industry, Infrastructure and Environment Division, 18, 19–20, 47

industry policy, 19–20, 47


information, see intelligence

Information Publication Scheme, 83

Information Services Branch, 90–1

information technology, PM&C, 90

HR systems, 72

video-conferencing and TelePresence facilities, 85, 86




memorial services, state, 58

mental health reform, 18

migration, 19

mining, 20

Minister for Disability Reform, 23

Minister for Finance and Deregulation, 23, 24

Minister for the Status of Women, 24

ministerial correspondence, 42, 48

Ministerial Support Division, 42, 48–50, 64

see also Ceremonial and Hospitality Branch

ministers, 2

services provided to, 42, 48–50

see also Cabinet; Prime Minister

Moore-Wilton, Max, 12

Moran, Terry, 12

Murray–Darling Basin Plan, 20

Museum of Australian Democracy, 90

N

National Agreements, 27

Skills and Workforce Development, 19

National Archives of Australia, 52, 75, 91

transfer from portfolio, 3

National Australia Day Council, 46, 63, 91

National Broadband Network, 20, 37

National Building Program, 20

National Compact: working together, 22

National Counter-Terrorism Committee (NCTC), 31, 32

National Disability Insurance Scheme, 23, 69

National Emergency Management Committee (NEMC), 32

National Emergency Medal, 46, 58

National Health Funding Body, 18

National Health Reform Agreement, 18

L

labour force, see employment

Laos, 57

Laurie, Ross, 12

leadership development, 40

PM&C, 64, 75; Indigenous staff, 77–8

Lebanon, 57

legal policy, 43

legal proceedings, 44, 67

legislation, 42, 45

financial framework, 44

national security and counter-terrorism, 32

public hospital funding, 18

public interest disclosures, 42, 43

legislation circulars, 42

legislation submissions, 42

Leon, Renée, 63

library and library services, 90–1

Living Longer, Living Better, 19

Lobbying Code of Conduct, 67

Local Hospital Networks funding, 18

The Lodge, 59

M

McCarthy, Margot, 62

see also National Security Adviser

McDevitt, Helen, 65

machinery of government changes, see Administrative Arrangements Order changes

McKinnon, Allan, 63

see also Deputy National Security Adviser

management and accountability, 61–91

manufacturing, 20, 47

marine environment, see oceans

market research and advertising, 84



non-English speaking backgrounds (NESB), staff from, 71

non-financial assets, see assets

non-ongoing staff, 70–1, 73


non-proliferation and disarmament, 37

North Atlantic Treaty Organisation, 36–7, 57

Norway, 57

not-for-profit sector, 21, 22

see also volunteering

NPAs, see National Partnership Agreements

Nuclear Security Conference, 37, 56

O

occupational health and safety, 64–5, 66, 80

oceans, 37

marine reserves, 20

office accommodation, 85–90

Office for Sport, 68, 91

Office for the Arts, 68

Office of the Australian Information Commissioner, 2, 67

Office of the Inspector-General of Intelligence and Security, 35

Office of Work and Family, 21–4, 63, 64

official and ceremonial support, 56–9, 100

official establishments, 59, 76

official history of Department, 12

Old Parliament House, 3

Museum of Australian Democracy, 90

One National Circuit, 85–90

official naming, 13

ongoing staff, v, 68, 69–71, 73

Order of Australia, 46, 63

organisation and structure, 2–8

Domestic Policy Group, 29

National Indigenous Reform Agreement review, 24

National Intelligence Coordination Committee, 35

National Mental Health Commission, 18, 90

National Partnership Agreements (NPAs), 27

education and training, 19, 27

employment, 19

mental health, 18

sustainable coal seam gas and coal mining, 20

National Police Service Medal, 58

national security, 31–2, 34–6

committees, 35, 51, 52

see also intelligence

National Security Adviser, 35, 62

Senior Leadership Forum, 30, 36

national security and international policy (National Security and International Policy Group), 29–37

Associate Secretary, 62

National Security Chief Information Officer, 6, 64

National Security College, 75

National Security Committee (NSC), 51, 52

National Security Group, 6

National Security Information Environment Roadmap: 2020, 36

National Security Policy Coordination Group, 32

National Security Policy Strategic Framework, 36

national symbols, 46

National Volunteering Strategy, 22

Natural Disaster Relief and Recovery Arrangements, 24

natural disasters, 24, 32

naval defence, 35

New Zealand, 32, 57

Pacific Islands Forum, 37, 56

Nigeria, 57



Performance Management Development Scheme, 74

performance report, 15–59

Perry, Ron, 26

philanthropy, 22, 84

plain packaging of tobacco, 44

plans and planning

fraud control, 63, 66

internal audit, 63

risk management, 65

workforce, 74

‘PM&C Craft’, 10, 212–13

Police Overseas Services Medal, 46

Police Service Medal, 58

portfolio, 2–4

see also Administrative Arrangements Order changes

portfolio budget statements, 5

portfolio ministers, see ministers

Portugal, 57

postgraduate student internships, 77

Practical place-based initiatives: a better guide, 39

prescribed agencies, 2

Prime Minister, 2, 48

agencies reporting to, 24

Commonwealth Heads of Government Meeting, 30, 51–3

official establishments, 59, 76

overseas visits, 26, 30, 36–7, 56, 58

Prime Minister and Cabinet portfolio, 2–4

Prime Minister and Cabinet program, 5

Prime Ministerial transcripts, 90–1

Prime Minister’s Economic Forum, 47

Prime Minister’s XI Cricket Match, 58

Prime Minister’s History Prize, 94


Prime Minister’s Taskforce on Manufacturing, 20, 47

Governance Group, 42

National Security and International Policy Group, 20

see also restructuring

outcome, 5

P

Pacific Executive Program, 91

Pacific Islands Forum, 37, 56

Pacific Maritime Security Program, 32

Papua New Guinea, 57

parliament


Parliamentary Affairs and Legislation Section, 45

Parliamentary Committees, 27, 67

Senate Estimates questions on notice, 48

parliamentary questions, v, 48, 50

parliamentary secretary, see ministers

pay equity case, 25

People and Leadership Committee, 64

People, Capability and Performance Branch (PCPB), 64, 65

People’s Republic of China, 28, 57

performance bonuses, 72

performance indicators (KPIs), 5

COAG Reform Council satisfaction survey, 27

Commonwealth Heads of Government Meeting 2011, 54

domestic policy, 16, 21, 25, 27

national security and international policy, 29, 34

official and ceremonial support, 56, 59

strategic policy and implementation, 38

support services for government operations, 42, 43, 46, 50



red tape reduction, not-for-profit sector, 22

Regional Australia, Local Government, Arts and Sport portfolio, transfers to, 2–3

see also Department of Regional Australia, Local Government, Arts and Sport

regional policy, 20

regulatory reform, 47

Reliance Framework, 21

remuneration, 72, 78

Republic of Korea, 37, 56

restructuring, 2–4, 6

financial affects, 10, 96, 98

Governance Group, 38

Social Policy Division, 18, 38

staffing affects, 68, 73

Strategic Policy and Implementation Group, 38

revenue, see finance

Review of Funding for Schooling, 18

Review of the Woomera Prohibited Area, 35

Rio+20, 37

risk management, 65

The Road Home White Paper, 39

Ronalds, Paul, 63

royal succession, 43

Royal Visit, 56, 57

Russia, 57

S

Sadleir, Richard, 63

Saudi Arabia, 57

schooling, see education and training

Schreier, Dr Paul, 63

Scott, Joanne, 12

Secretaries Board, 11

Secretaries’ Committee on Indigenous Affairs, 21–2

problem gambling, 24

procurement, see purchasing

productivity, 20, 25

PM&C, 72

Productivity Commission, 27

responses to recommendations, 19, 23

protective security, see security

public hospital funding, 18

public interest disclosures, 42, 43

public interest immunity claims, 44

Public Service Act 1999 section 24(1) determinations, 72

Public Service Medal, 26

purchaser–provider arrangements, 82

purchasing, 82–3

advertising and market research, 84

consultants, 82–3

Q

The Queen, 56, 57

Diamond Jubilee, 58


questions

at Community Cabinet meetings, 49, 50

parliamentary, v, 48, 50

R

records management, 91

recruitment, 67, 73, 74

Graduate Development Program, 65, 73, 75–7, 79


online system, 72

Vacation Employment Program, 77

recycling, 86, 88–9



Social Policy Division, 18–19, 38, 65

Solomon Islands, 35

South Korea, 37, 56

space policy, 35

sport and recreation, 3

Office for Sport, 68, 91

staff, v, 64, 67–81

average levels, 100, 101

Department centenary celebrations, 12–13

staff learning and development, 74–9


work health and safety, 80

staff travel, 87, 90


state funerals, 58

state memorial services, 58

Steering Committee for the Review of Government Services Provision, 27

Stevens, Bronwyn, 12

strategic policy and implementation (Strategic Policy and Implementation Group), 38–41

Strategic Policy Coordination Group, 35

Strategic Policy Network, 38

Strategic Reform Program, 34

Strategy and Delivery Division, 38–9

Studies Assistance Scheme, 75

submarines, 35

support services for government operations, 42–53, 99

sustainable development, 37

coal seam gas and coal mining developments, 20

T

tax policy, 25, 47

TelePresence facilities and video-conferencing, 85, 86

Secretaries’ Committee on National Security, 35, 51, 52

Secretaries’ Committee on Social Policy, 21–2

Secretary, 62

Department centenary celebrations, 12–13

review of year, 9–11

section 24(1) determinations, 72

security, 63–4

Commonwealth Heads of Government Meeting 2011, 54–5

information technology, 31, 33

see also national security

Security Committee, 63–4

Senate Estimates questions on notice, 48

Senate Select Committee on the Future of the Australian Federation, 27, 67

Senior Executive Service, 40, 70


remuneration, 72

work health and safety mandatory training, 80

Senior Management Group, 63

separations of staff, 73

service charter, 66

Seychelles, 57

Singapore, 28, 30, 56

single parents, 19

skilled migration, 19

skills development, see education and training

skills reform and higher education team, 18

Skills Reform NPA, 19

Smith Review, 34

Social Inclusion Unit, 23

social investment and philanthropy, 22, 84

social policy, 18–19, 21–4, 62

homelessness, 27, 39

see also education and training; equity and social inclusion



Prime Minister’s speech at Yonsei, South Korea, 37

skills reform and higher education team, 18

student work experience and internship programs, 77

University of New South Wales, 33

V

Vacation Employment Program, 77


volunteering, 21, 22

CHOGM 2011, 54

grant program, 91

promotion to young people, 90

Volunteering Australia, 91

Volunteering WA, 54

W

Walker, Bret, 32

Watt, Dr Ian, see Secretary

Weller, Pat, 12

‘What do we want the Australian public service to be?’, 11, 214–15

White Papers

Australia in the Asian century, 28

cyber policy, 31

defence, 34

homelessness, 39

Williams v Commonwealth of Australia & Ors, 44

women, 24

staff, 68, 71

Woomera Prohibited Area, 35

work experience placements, 77

terrorism, 31–2

tertiary education, 19–20

Thailand, 37, 57

Timor-Leste (East Timor), 35, 37, 57

tobacco, plain packaging of, 44

Torres Strait Islander Flag, 46

Torres Strait Islanders, see Indigenous peoples

trade, 26

training, see education and training

Training Places for Single and Teenage Parents, 19

transport, 20

Treasurer, 23, 24

Treasury, 18, 22, 24

tribunal decisions, 44, 67

Trinidad and Tobago, 57

Turkey, 37, 56

U

United Arab Emirates, 56

United Kingdom


Royal Visit to Australia, 56, 57

United Nations Conference on Sustainable Development, 37

United Nations High Commissioner for Refugees, 57

United Nations Secretary-General, 57

United Nations Security Council, 37

United States

defence reviews, 35

President Obama, 30, 56, 57

Prime Minister’s visits, 36–7, 56

visitors from, 57

universities, 19–20

Cyber Defence Universities Challenge, 33



work health and safety, 64–5, 66, 80

workforce, see employment; staff

workforce diversity, v, 68, 71, 75

see also Indigenous staff

workforce planning, 74

workplace relations, 25

PM&C, 64, 68, 72

World Bank, 57

Y

Yonsei University, 37

young people, 19, 90

see also education and training



Annual report team This report was developed by the annual report team with help from staff throughout PM&C. The team comprised: Myra Croke, Assistant Secretary, Ministerial Liaison, Communication and Governance; Annette Cronin, Senior Adviser, Governance and Audit; Chris Atkinson; James Newton and Ben Bowring.

Concept, design and typesetting Bluestar Australia Pty Ltd

Photographs The 2011–12 annual report makes use of a range of images, including photographs provided by other government agencies. The front cover incorporates images of PM&C staff members.

Paper The PM&C 2011–12 annual report is printed on Impress Satin. Impress is FSC® Mix Certified and is made from elemental chlorine free bleached pulp sourced from FSC® certified well-managed forests. It is manufactured by an ISO 14001 certified mill.

Annual Report

2011–12

www.dpmc.gov.au

Departm

ent of the Prime M

inister and Cabinet

Annual R

eport 2011–12

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Annual Report 2011-12v Annual Report 2011 12 The following indicators help to measure performance...

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