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Annual Report 2012–13

DEPARTMENT OF THE PRIME MINISTER AND CABINET ANNUAL REPORT 2012–13

ii

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

One National Circuit

Barton ACT 2600

Australia

Mail: PO Box 6500

Canberra ACT 2600

Australia

Internet: www.dpmc.gov.au

Email: [email protected]

Telephone: (02) 6271 5111

+61 2 6271 5111 (international)

Fax: (02) 6271 5414

+61 2 6271 5414 (international)

Translation services

The Department of Immigration and Border Protection 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, 2013

Ownership of intellectual property rights in this publication

Unless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is

owned by the Commonwealth of Australia (referred to below as the Commonwealth).

Creative Commons 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: www.creativecommons.org/licenses/by/3.0/au/legalcode.

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Letter of transmittal


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About this report

This is the Secretary’s report to the Prime Minister for the financial year ended 30 June 2013.

This Annual Report relates to the Department of the Prime Minister and Cabinet’s (PM&C) performance for

2012–13 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 communicates information to the community and stakeholders.

The report has been prepared in line with the Requirements for 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 24 June 2013. The compliance index (on page 173) 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. The report comprises five parts:

• 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 2012–13.

• Part 2 reports on how the Department performed during the period against our outcome and in relation to our

departmental and administered programs.

• Part 3 details management and accountability processes, including corporate governance, external scrutiny,

purchasing arrangements, management of human resources, work health and safety, and ecologically

sustainable development and environmental performance processes.

• Part 4 contains the audited financial statements for 2012–13 and explanatory information.

• Part 5 comprises the glossaries and indexes that provide useful additional information.

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Summary

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, our Portfolio Ministers, including the Cabinet Secretary and the Parliamentary

Secretary, and the Government as a whole. PM&C also 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 the Department’s role in supporting the Government’s policy objectives; how

public money was spent and whether planned achievements were on track. PM&C has met each deliverable and

KPI for 2012–13, as we have done over the past three years. The following indicators help to measure performance

across the Department:

• 2,285 briefs were provided to the Prime Minister, the Cabinet, and our Portfolio Ministers and

Parliamentary Secretary

• 547 of these briefs were provided for use by the Cabinet or Cabinet committees

• 194,024 items of correspondence were processed

• 122 question time briefs were delivered to the Prime Minister and Portfolio Ministers

• 293 Senate Estimates questions on notice were managed

• 50 parliamentary questions on notice were managed.

Our staff

As at 30 June 2013 we had a total of 587 employees, including part-time and non-ongoing employees, employed in

the ongoing functions of the Department (based on headcount). Some key statistics on our workforce include:

• 62.3 per cent are women • 91.4 per cent are full time

• 77.0 per cent are under the age of 45 • 93.5 per cent are based in Canberra

• 94.1 per cent are ongoing • 0.8 per cent identify as Indigenous

There were a further 211 staff who were inoperative or employed in associated functions, most notably the

Group of Twenty (G20) Taskforce.


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Contents

Contact us ii

Letter of transmittal iii

About this report iv

Summary v

Part 1: Overview for 2012–13 1

The portfolio 1

The Department 2

From the Secretary 5

Part 2: Performance report 10

Domestic policy 11

National security and international policy 24

Governance 32

Group of 20 Meeting 2014 47

Part 3: Management and accountability 50

Corporate governance 51

External scrutiny 53

Management of human resources, work health and safety 54

Purchasing 64

Consultants 64

Advertising and market research 65

Grant programs 65

Ecologically sustainable development and environmental performance 66

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Part 4: Financial statements 69

How we are funded 70

Key results in 2012–13 70

Statement by the Chief Executive and Chief Financial Officer 78

Independent Auditor’s report 76

Financial statements 79

Index to the notes 92

Part 5: Glossary and indexes 172

Compliance index 173

Index of figures 176

List of abbreviations 177

Glossary of key terms 180

Alphabetical index 182

Part 1: Overview for 2012–13

The portfolio .............................................................................................................................................................................. 1

The Department .......................................................................................................................................................................2

From the Secretary................................................................................................................................................................5

PART 1: OVERVIEW

1

The 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 2013 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 2013 the portfolio had the following Ministers and Parliamentary Secretaries:

• The Hon Kevin Rudd MP, Prime Minister

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

(this Ministerial position ceased on 1 July 2013)

• The Hon Dr Craig Emerson MP, Minister Assisting the Prime Minister on Asian Century Policy

(this Ministerial position ceased on 1 July 2013)

• The Hon Mark Dreyfus QC MP, Minister for the Public Service and Integrity

• The Hon Mark Butler MP, Minister for Social Inclusion and Minister Assisting the Prime Minister on

Mental Health Reform (these Ministerial positions ceased on 1 July 2013)

• The Hon Jason Clare MP, Cabinet Secretary (not held by Mr Clare from 1 July 2013)

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

• The Hon Dr Andrew Leigh MP, Parliamentary Secretary to the Prime Minister (not held by Dr Leigh from

1 July 2013).


2

The Department

Departmental structure

There were no significant changes to the structure of the Department from the 2011–12 reporting period.

As at 30 June 2013 the Department had three groups: Domestic Policy, National Security and International Policy

and Governance. Detail on each Group’s role is provided below. The Department’s structure is at Figure 1.1.

Domestic Policy Group

The Domestic Policy Group supported the development of economic, environmental, productivity and social

policies. It coordinated the Council of Australian Governments (COAG) arrangements, provided advice and

support for the Budget process and policy advice in relation to the Group of Twenty (G20). The Group 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, information sharing,

cyber policy, border security and crisis management and the coordination of the national security budget. The

Group assists the National Security Adviser in providing a high level of leadership, direction and coordination to

the National Security Community.

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 committees and our Portfolio Ministers and

Parliamentary Secretary. This Group delivered the Department’s enabling and support functions and monitored

the delivery of key Government programs, policies and initiatives. During the 2012–13 reporting period, for the

purpose of administrative efficiency, the Group took responsibility for the G20 Operations Division.

PART 1: OVERVIEW

3

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4

Outcome and program structure

The Department worked to achieve our 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 first

program consisted of four program components identified in Figure 1.2 (as broadly reflected in the Department’s

structure). This program structure is consistent with the outcome and program framework and performance

targets in the Portfolio Budget Statements 2012–13. There were no subsequent changes to the performance targets

in the reporting period.

Figure 1.2 PM&C’s outcome and program framework

Program 1.1

Prime Minister and Cabinet

Program component 1.1.1

Domestic policy


National security and

international policy


Support services for

Government operations


Group of 20 Meeting 2014

Program 1.2

Official and ceremonial support

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

PART 1: OVERVIEW

5

From the Secretary

The year 2012–13 was a year of challenge and achievement for the Department of the Prime Minister and Cabinet

(PM&C), as it was for the public sector as a whole. We supported a complex and busy Government agenda through

another year of minority government, playing a policy and implementation leadership and coordination role in

relation to major national reforms in areas as diverse as disability, international affairs and education.

It was also a year in which PM&C progressed some important internal work arising from last year’s Capability

Review and a year in which we led the early development of a strategy to enhance and embed greater

Asia-relevant capabilities across the Australian Public Service (APS).

Performance

We met each of our 2012–13 key performance indicators. We supported the Prime Minister and Government in

relation to the Cabinet processes, Ministerial and machinery of government changes, legal and constitutional

questions and the legislation program.

As always, the overwhelming bulk of our work over the course of the year was dedicated to the pursuit of

Prime Ministerial and Governmental priorities. A highlight was the finalisation of a major, national social-policy

reform – the National Disability Insurance Scheme (NDIS), now called DisabilityCare Australia (DCA). We played

a leadership and coordination role in the development of the scheme both through joint leadership with the

Department of Families, Housing, Community Services and Indigenous Affairs of the NDIS Taskforce and our

support of the Prime Minister at the COAG.

Also in the domestic sphere, we participated, with the Department of Education, Employment and Workplace

Relations, in the development of national schools funding reforms and the National Plan for School Improvement.

Both these reforms involved a significant investment of PM&C personnel and resources over long periods.

Other highlights of the year involved shorter, sharper immersion in one-off or emerging Government priorities.

For example, to tight deadlines, we collaborated with APS and State and Territory colleagues to determine the

parameters of the Royal Commission into Institutional Responses to Child Sexual Abuse and helped establish the

Royal Commission.

The year also saw the establishment, in collaboration with other Commonwealth agencies, of the Australian

Cyber Security Centre, the new central clearing house for cyber events of national importance.

And in collaboration with the Department of Health and Ageing we developed a $4.1 billion policy to provide

basic dental treatment to children and low-income adults.

In the international arena, we supported in Australia’s successful bid to secure a seat on the United Nations

Security Council and the Government’s preparations for the end of Australia’s military and civilian mission in

Afghanistan’s Uruzgan province.

The year 2012–13 also saw the release by the Prime Minister of a White Paper on Australia’s engagement with the

Asian region – Australia in the Asian Century. The White Paper was the culmination of a significant amount of

work by the Australia in the Asian Century White Paper Taskforce, hosted by PM&C. The White Paper continues

to have significant, direct implications for the Department as we lead the effort to embed Asia-relevant knowledge

and skills into the core skill set of APS officers.

The Prime Minister’s international focus during the year was very much on the region and Australia’s regional

partnerships. We supported that focus through our policy advice and our coordination and support of

Prime Ministerial visits to India, China, Papua New Guinea, Cambodia and Indonesia.


6

On 1 December 2013 Australia will assume the presidency of the G20, the premier forum for economic policy

cooperation among the major economies of the world. Ahead of Australia’s hosting of the G20 Leaders Summit

in 2014, we have spent the past year building operational and policy capacity to ensure a smooth and successful

presidency.

On 1 December 2012 Australia became a member of the G20 ‘troika’ – comprising the past, current and future chairs

of the G20. As troika member and future host, we have worked closely with 2013 G20 president Russia to help

prepare outcomes for a productive agenda in 2014.

PM&C has always worked for the Government of the day and worked to support the Prime Minister and the

Cabinet of the day. In late June 2013 staff from PM&C worked to effect the transition from Prime Minister Gillard

to Prime Minister Rudd. In short timeframes we provided essential advice, met the needs of the outgoing

Prime Minister, the incoming Prime Minister and established and formalised the new Ministry, as we have done

for each and every Ministry since the establishment of the Department in 1911.

PM&C people

PM&C’s priority is to continue to be the first and best source of advice and support to the Prime Minister of the

day. To that end, as Secretary, I seek to recruit the best (on merit), retain the best (with satisfying and challenging

work), and collaborate actively right across the APS and beyond.

As the central agency of the APS, we take seriously our role as a steward of the conventions and knowledge of the

public service. At the same time we take seriously our duty to lead through innovation and excellence.

Over the past year our senior leadership has been considering the results of the Department’s recent Capability

Review and ways in which we can respond to its recommendations relating to collaboration and inclusiveness.

We work hard to cultivate a positive and challenging work culture, and to inculcate in our ranks something we

refer to as the PM&C ‘Craft’. Essentially, this is a way of working to support, with the best possible advice and

the best possible service, the Prime Minister of the day, the Cabinet, our Portfolio Ministers and Parliamentary

Secretaries and the Government. This involves a commitment to collaboration, across the Department, across the

APS and across the community.

I am a strong believer that the public service ought to reflect the diversity of the citizenry it serves. As Head of the

APS, and Chair of the APS Diversity Council, I drive an agenda of workplace diversity across the service, as well

as within the Department.

Recent work in this area includes the finalisation of the third PM&C Reconciliation Action Plan and progress in

relation to women in leadership positions. As one of the Sex Discrimination Commissioner’s Male Champions

of Change, I am proud to lead a Department in which more than half of our most senior leadership positions are

occupied by women.

As Head of the APS my determination is to see more women in leadership positions right across the service. I will

tolerate no complacency within my own workplace either, which is why, in the past year, I have supported the

establishment of the PM&C Women’s Network, to advise me on structural and cultural barriers to the advancement

of women within the Department.

Finally, at PM&C excellence should be, and is, rewarded. To recognise exceptional individual and team

performance and celebrate examples of the PM&C ‘Craft’ in action I have, in the past 12 months, instituted a

twice-yearly presentation of Secretary’s Awards for Excellence. Those recognised have made a great contribution

to PM&C, to the Australian Government and to Australia.

PART 1: OVERVIEW

7

The Year Ahead

2013–14 will be another busy year for PM&C.

As always, we will work hard to ensure that we remain the first choice for dependable and strategic advice and

support to the Prime Minister.

Our early focus, in the wake of the 2013 Federal Election, will be on serving the incoming Prime Minister and,

where necessary, adjusting our existing processes and priorities to support the Prime Minister, the Cabinet and

the Government.

This may include facilitating machinery of government changes, as well as supporting the development and

implementation of new government policy in collaboration with other departments and agencies.

Another primary focus of the year will be our G20 presidency: finalising the agenda, hosting meetings of

ministers and officials and preparing for the G20 Leaders Summit to be held in Brisbane in November 2014.

The Brisbane G20 Leaders Summit will be the most significant meeting of world leaders Australia has hosted.

Dozens of heads of state and heads of government, 4,000 delegates and 3,000 domestic and international media

professionals will come to Brisbane, with significant supporting events in other locations.

PM&C’s G20 Taskforce is a large special-purpose operational team. The Taskforce coordinates Australia’s G20

policies, manages logistics and co-ordinates security for the suite of G20 meetings and will continue discussions

both inside and outside the G20 to ensure that the forum has a ‘whole of G20’ agenda, containing actions to create

jobs, lift growth, strengthen resilience and enhance the G20’s reputation.

In 2013–14 we will continue to lead the work being carried out to enhance Asia-specific capabilities at all levels

and across all agencies of the APS, as the centre of global economic output shifts to the Asian region. This will not

be the work of a single year, but the focus of many years to come. Increasingly, Asia-specific capabilities won’t be

regarded as ‘specialist’ skills, but part of the general suite of skills expected of all public servants, from those in

front-line service-delivery jobs through to senior decision-makers.

The coming year will be one of fiscal restraint across the APS, and we will not be immune. A more stringent fiscal

situation is a powerful signal to innovate and find ways to be more effective and efficient. As always, we will be

judged by the manner in which we respond creatively and proactively to a challenge.

I J Watt

Secretary

Photo 1.1 The Secretary and the National Security Adviser, Dr Margot McCarthy, with the former Prime Minister, the Hon Julia Gillard MP, and the Prime Minister of India, the Hon Dr Manmohan Singh, October 2012.


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Public Service Medal recipients and Secretary’s Excellence Awards The Public Service Medal recognises outstanding service by employees of the Australian Government

and State, Territory and local government employees. In the past year, two PM&C staff received the award:

Ms Pip Spence, First Assistant Secretary, Cabinet Division, for her outstanding public service and her

contribution to the Australian community through the telecommunications regulations reform associated with

the implementation of the National Broadband Network; and Ms Renée Leon, Deputy Secretary, Governance,

for outstanding public service to public administration and law in leadership roles in the Australian Capital

Territory and the Commonwealth.

The Secretary’s Excellence Awards are designed to recognise individuals or teams that have achieved above and

beyond their normal duties and have made an outstanding contribution to the Department. In 2012–13 those

recognised for their achievements were:

• the team that helped produce 2012 The Year Ahead: Our Plans for Australia, the Australia in the Asian Century

White Paper Taskforce, the staff involved in providing support for the Prime Minister’s visit to China and

the NDIS Taskforce – for Excellence in Team Performance

• Emma Rees, Susan Fitzgerald, Nicole Middleton, Sam Gounder and Lee Gordon – for Excellence in

Leadership and Collaboration

• Simon Rees – for Excellence in Improving Our Organisation

• David Denney and David Pullen – for Excellence in Innovation

• Theresa Manning and Alison Jenkins – for Excellence in Supporting and Promoting Diversity in

the Workplace.

Photo 1.2 Public Service Medal Recipients

Ms Renée Leon and Ms Pip Spence.

Photo 1.3 Recipients of the Secretary’s

Excellence Awards, June 2013.

PART 1: OVERVIEW

9

PM&C staff

Part 2: Performance report

Domestic policy ......................................................................................................................................................................11

National security and international policy .......................................................................................................24

Governance ............................................................................................................................................................................. 32

Group of 20 Meeting 2014 .............................................................................................................................................. 47

PART 2: PERFORMANCE REPORT

11

Our program deliverables and key performance indicators (KPIs) are published in the Portfolio Budget Statements

which are released annually to accompany the Budget. They are used to assess and monitor our performance. In

2012–13 we achieved all of our deliverables and met our KPIs. An assessment of how each Group has progressed

toward achieving the relevant outcome is provided in the performance narrative under each Group heading.

Domestic policy

Domestic policy covers a wide range of issues - economic, environmental and social - that have a profound effect

on the lives of all Australians.

Six divisions comprise the Domestic Policy Group. These are:

• Social Policy Division

• Industry, Infrastructure and Environment Division

• Office of Work and Family

• Economic Division

• Strategy and Delivery Division

• G20 Policy Division (see the Group of 20 (G20) Meeting 2014 performance report at page 47).

While it operates independently of the Department, the Council of Australian Governments Reform Council (CRC)

is also an important component of our domestic policy program. Directed by the peak intergovernmental forum

in Australia, the Council of Australian Governments (COAG), the CRC provides objective, credible assessments

and reporting on the performance of State and Territory Governments in key areas of national reform.

Highlights 2012–13

This year, the Domestic Policy Group advised the Prime Minister and the Cabinet and worked with other

departments and, in some cases, State and Territory Governments to progress critical, high-profile policy

initiatives, including:

• developing the proposed Schools Funding Reforms and the National Plan for School Improvement in response

to the 2011 Review of Funding for Schooling

• negotiating launches and full scheme agreements with State and Territory Governments for the National

Disability Insurance Scheme (NDIS)/DisabilityCare Australia (DCA)

• supporting the implementation of the Australia in the Asian Century White Paper

• working with the Department of Health and Ageing (DoHA) to develop the Government’s Dental Reform

Package

• leading negotiations across Government to extend a National Partnership Agreement (NPA) to oversee

disaster recovery and reconstruction work following the floods caused by ex-tropical cyclone Oswald in

January 2013

• supporting the establishment of the Australian Charities and Not-for-profits Commission to support a robust,

vibrant, independent and innovative not-for-profit sector

• assisting development of significant intergovernmental agreements (IGA) including the National Education

Reform Agreement; and agreements for Tasmanian Forests and Water Reform in the Murray-Darling Basin


12

Highlights 2012–13 (continued)

• working with the Department of Finance and Deregulation to establish the whole of government

Efficiency Working Group supporting the Prime Minister’s Business Advisory Forum held in Canberra on

6 December 2012 (which discussed progress on key regulation and competition reforms agreed by COAG)

• supporting three meetings of COAG in which significant social, economic and environmental reform agendas

were agreed and progressed

• advising the Prime Minister on implementation of the Government’s response to the Fair Work Act Review,

ongoing implementation of consumer credit reforms, and a register of foreign owned agricultural land

• advising and coordinating support to help deliver the 2012–13 Mid-Year Economic and Fiscal Outlook and

2013–14 Budget

• establishing the National Panel for Economic Reform (NPER), including initial meetings on improving

education and training systems and supporting productive workforces.

Figure 2.1 KPIs for the Domestic Policy Group

Domestic policy (Program component 1.1.1) Met

High level of satisfaction of the Prime Minister, the Cabinet and Cabinet committee chairs, Portfolio

Ministers and the Parliamentary Secretaries with the quality and timeliness of advice, briefing, activities

and/or support.

P

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.

P

Satisfaction of other central agencies, portfolio departments and other key stakeholders, with the

cooperation and collaboration of the Department.P

Number of individuals assisted towards volunteering: 250,000 P

High level of satisfaction with the quality of support provided by the departmental secretariat to bodies

supported by the Department, including the Australian Social Inclusion Board and the Not-for-Profit Sector

Reform Council.

P

Grants are administered in compliance with reporting mechanisms, objectives and other provisions of the

grant funding deeds.P

Compliance with all relevant legislation. P

Social Policy Division

The Social Policy Division advises 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. Our advice is developed and informed by consultations with Commonwealth, State and Territory

departments as well as with industry and community stakeholders.

We work in an environment of challenging policy reform, requiring detailed policy analysis and implementation

oversight. In 2012–13 key reform areas that we advised on included dental and mental health reform, early

childhood and school education, and the development of Australia’s first national cultural policy in almost

20 years.


13

Dental health reform

We worked closely with DoHA to develop the Government’s $4.1 billion Dental Reform Package which contains

three initiatives: Grow Up Smiling, a child dental benefits schedule; an NPA for Adult Public Dental Services; and

a Flexible Grants Program. Under the NPA, the Government will provide $1.3 billion to the State and Territory

Governments from 1 July 2014 to expand public dental services for adults, assisting up to 1.4 million low income

adults. In addition, we worked with DoHA to develop the Government’s support package for public dental waiting

lists, which will benefit 400,000 people.

Mental health reform

Working with DoHA and the State and Territory Governments, we supported COAG’s agreement to the Roadmap

for National Mental Health Reform 2012–2022 (the Mental Health Roadmap). This commitment will assist in

improving the lives of people with mental illness, their families, carers and communities. Complementing the

release of the Mental Health Roadmap, we were closely involved in the establishment of the new COAG Working

Group on Mental Health Reform that will implement the Mental Health Roadmap in practical terms.

Sport

We led the Department’s input to finalise Commonwealth commitments for Australia’s hosting of the 2015 Asian

Football Confederation Cup, and joint hosting with New Zealand of the 2015 International Cricket Council Cricket

World Cup.

Cultural policy

We worked closely with the Office for the Arts in the Department of Regional Australia, Local Governments, Arts

and Sport (DRALGAS) to develop Creative Australia, the first national cultural policy in almost 20 years.

Multiculturalism

In partnering with the Department of Immigration and Citizenship (DIAC) to implement the Government’s

multicultural policy, The People of Australia, we supported the Government’s Response to the Access and Equity

Inquiry. This has been complemented by ongoing work on a number of issues driven by multicultural and

community groups, contributing to the celebration and promotion of diversity and supporting a broad range of

culturally and linguistically diverse communities and organisations.

Employment

In collaboration with the Department of Education, Employment and Workplace Relations (DEEWR) we

monitored the delivery of the Building Australia’s Future Workforce package, a centrepiece of the 2011–12 Budget,

designed to build a more educated and skilled workforce and provide opportunities for Australians to experience

the benefits of work. In addition, we supported the review of Employment Services that will determine the

delivery of services when current contracts for Job Services Australia and the Disability Management Service

expire in June 2015.

Schools and Early Childhood

We supported the negotiation and development of the new NPA on Universal Access to Early Childhood

Education, which provides $660 million over 18 months to support the State and Territory Governments in

providing universal access to early childhood education.


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National Partnership Agreement on Early Childhood EducationOn 9 December 2012, COAG agreed that a Senior Officials’ Working Group on Early Childhood Education should

be established and that PM&C should take the lead in negotiating an NPA on Universal Access to Early Childhood

Education. Education is a fundamental component of COAG’s commitment to early childhood development.

The resulting Agreement (which came into effect on 18 June 2013) provides $660 million to the State and Territory

Governments to support access for all children to an early childhood education program in the year before they

start school.

Close collaboration with DEEWR and co-chairing arrangements with Victoria exemplified a best practice

approach to achieving key policy outcomes.

This arrangement also established many strong and lasting working relationships and gave team members a

more nuanced understanding of the complex working environment that officials must negotiate in order to

reach satisfactory and worthwhile agreements.

Photo 2.1 The early childhood team with the new NPA on Universal Access to Early Childhood Education.

Industry, Infrastructure and Environment Division

The Industry, Infrastructure and Environment Division advises on matters relating to industry, innovation,

energy, resources, small business, tourism, climate change, the environment, water, agriculture, fisheries, forestry,

customs, skills, research, tertiary education, infrastructure, transport, regional development, communications and

the digital economy.


15

Industry, skills and innovation

We provided advice to the Prime Minister on A Plan for Australian Jobs – the Australian Government’s Industry and

Innovation Statement, developed by the Department of Industry, Innovation, Climate Change, Science, Research and

Tertiary Education (DIICCSRTE). In consultation with DIICCSRTE we advised on the establishment of a priority

public good funding stream within the Cooperative Research Centres program, to deliver primary research

outcomes with wider social and environmental benefits. We liaised closely with DIICCSRTE and provided advice

on support packages for firms subject to disproportional structural adjustment pressures.

Working with DIICCSRTE, we supported the implementation of the NPA on Skills Reform designed to provide

a more efficient, accessible, equitable and transparent vocational education and training sector with higher

quality training that is responsive to the needs of students, industry and employers. We also continued to provide

advice on higher education policy, including implementation of demand driven funding for undergraduate

university places.

We have also been involved in negotiations to progress the National Occupational Licencing Scheme, which will

help deliver a consistent licencing scheme across Australia in selected trades.

Infrastructure, communications, climate change and energy

In collaboration with the Department of Infrastructure and Transport and DRALGAS, we advised on regional,

transport and infrastructure issues, including finalisation of the next phase of the Nation Building Program,

and the release of reports into High Speed Rail and on Wilton and Richmond as possible sites for a second major

airport for Sydney.

We organised and supported the Prime Minister’s Forum on the Digital Economy held in December 2012,

attended by leaders across the digital economy. Advice on emerging technology trends, such as the adoption

of cloud computing, and policies required to support the growth of the digital economy were provided to the

Prime Minister.

Significant intergovernmental agreementsIn 2012–13 we worked closely with Commonwealth and State agencies to develop and finalise IGAs in a range of

policy areas. We were involved in two important environment policy initiatives – the IGA and NPA for Water

Reform in the Murray-Darling Basin, and the Tasmanian Forests IGA and NPA.

Working closely with the Department of Sustainability, Environment, Water, Population and Communities

(DSEWPaC) and Treasury, we ensured that the Murray-Darling Basin agreements supported the objectives of

the Murray-Darling Basin Plan by improving river and wetland health, putting water use on a more sustainable

footing and providing farmers and communities with more confidence to plan for a future with less water, while

also upholding the principles of the overarching Commonwealth-State relations framework. The agreements

will be implemented over the next seven years to help governments and local communities manage the changes

required for a healthy Basin.

The Prime Minister and the Premier signed the Tasmanian Forests agreements in May 2013, following the

passage of legislation through the Tasmanian Parliament on 30 April 2013 to guarantee wood supplies for

industry and to protect additional areas of native forests. The Tasmanian Forests agreements outline the roles

and responsibilities of governments and funding commitments to support the forest industry and its workers

and communities, to manage new protected areas and to assist the Tasmanian economy to diversify and create

more jobs.


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We worked with other departments to implement the Clean Energy Future Package, develop the 2012 Energy White

Paper, advise on developments in gas markets and coordinate the Commonwealth’s contribution to energy market

reforms endorsed by COAG in December 2012. We provided input into the Prime Minister’s priority of energy

market reform and advice on reforms considered by COAG.

Agriculture, customs and environment

We supported the Department of Agriculture, Fisheries and Forestry to develop the National Food Plan and align

the Plan with the Australia in the Asian Century White Paper. We also advised on drought assistance and delivery of

income support to farmers in financial difficulty.

We collaborated with agencies on measures to support industry and environmental sustainability. This included

advice on finalisation of the Murray-Darling Basin Plan and arrangements with Basin States. We worked with

DSEWPaC to implement measures for greater environmental protection of water resources impacted by coal seam

gas and large coal mining developments and advised on finalisation of the 2013 Tasmanian Forests IGA. Improving

Australia’s environmental regulatory arrangements is a priority for the Government and we have supported

efforts to enhance efficiency and increase certainty for business, while maintaining high environmental

standards.

Office of Work and Family

The Office of Work and Family advises 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 supported the Prime Minister and the Minister for Social Inclusion on social inclusion priorities,

volunteering, social investment, philanthropy and not-for-profit reform.

Families, Indigenous policy and social support

In 2012–13 we continued our support of the NDIS Taskforce as it worked towards the rollout of DisabilityCare

Australia – a new way of providing community linking and individualised support for people with permanent

and significant disability, their families, and carers. We also supported the establishment of the Royal Commission

into Institutional Responses to Child Sexual Abuse Taskforce.

This year we contributed to positive outcomes for Indigenous Australians, including significant progress on

the Closing the Gap goals. We provided advice and support on the Constitutional recognition of Indigenous

Australians, issues of native title, and engaged closely with the newly established National Congress of Australia’s

First Peoples.

We worked with other departments to implement major reforms in the delivery of social services to Australians.

This included work with the Department of Human Services toward a new, online government services portal,

MyGov. We helped develop provisional benchmarks for both the National Affordable Housing Agreement and

the National Disability Agreement. We assisted in the development of a foundation to Prevent Violence Against

Women and their Children, and provided advice and support to the Prime Minister on the importance of women’s

participation in society and the economy.

During 2012–13 Australia again faced a number of natural disasters that affected communities across the country.

Working closely with the Prime Minister, the Queensland Government, and other Commonwealth Government

agencies, we helped implement a revised NPA to facilitate Queensland’s recovery from ex-tropical cyclone Oswald.


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National Disability Insurance Scheme TaskforceIn 2012–13 we were closely involved in bringing DisabilityCare Australia (DCA) into being. Working as part

of a joint Taskforce with our colleagues from the Department of Families, Housing, Community Services and

Indigenous Affairs (FaHCSIA) and eight other Commonwealth departments, we helped create a scheme to

transform disability support services in Australia.

Whether developing legislation for Parliament, establishing the DCA Board and Advisory Council, or proposing

funding models to ensure the full deployment of the scheme by 2019, we supported a number of the Taskforce’s

major outcomes. In addition, we played a key role in:

• the preparation of the National Disability Insurance Act 2013 and its establishment of the DCA and the DCA Board

and Advisory Council – the role of the Board will be to determine the strategic direction of the DCA and

ensure the scheme’s financial sustainability

• the IGA signed between the Commonwealth and all eight State and Territory Governments that established

the parameters for the initial phase of the DCA, and the separate agreements that deploy the full scheme in

New South Wales (NSW), Victoria, South Australia, Queensland, Tasmania, the Australian Capital Territory

(ACT) and the Northern Territory – these agreements are the result of our efforts to foster good working

relationships between Commonwealth and State and Territory officials

• identifying Commonwealth-State funding contributions for the trial and eventual launch of the full scheme

• ensuring the timely transition of existing Commonwealth disability support programs into the DCA

• developing legislation to provide certainty on the income tax, income support means-testing and Goods and

Services Tax (GST) treatment of DCA funded support services.

Photo 2.2 The former Prime Minister, the Hon Julia Gillard MP, with the NDIS Joint Taskforce

at a morning tea thanking them for their work in delivering this reform.


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Not-for-profit sector

We continued to support the Prime Minister with the not-for-profit agenda, including work across government to

support the establishment of the Australian Charities and Not-for-profits Commission. From 3 December 2012, the

Commission has sought to foster a sustainable and innovative not-for-profit sector while also promoting increased

accountability and transparency and a reduction of unnecessary regulatory obligations on Australian charities. In

cooperation with the sector, we developed a Code of Best Practice for Engagement with the not-for-profit sector to

support stronger consultation practices and ensure that the unique value and perspective of the sector is reflected

in Government policy. In addition, we continued to coordinate and administer the Volunteer Management

Program, which places volunteers in the not-for-profit sector. In 2012–13 we increased this KPI by 20 per cent

(50,000 people) by placing 300,000 volunteers. We also hosted the first bi-annual forum with peak volunteering

bodies to strengthen engagement with the volunteering sector, and supported the relaunch of GoVolunteer, a

website that matches people interested in volunteering with appropriate opportunities.

Social inclusion

With our support, the Australian Social Inclusion Board continued to provide evidence-based advice to

Government on improving the quality of services and maximising the resources available to those most in need

of help. The Board advised Government on a number of issues, including employment services; older women and

homelessness; service delivery reform; and financial capability.

The second edition of the Board’s report on social inclusion indicators – How Australia is Faring – was released in

August 2012.

Economic Division

The Economic Division provides advice 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 and Commonwealth-State relations.

Economic policy

We provided analysis and advice on the economic outlook and conditions of the Australian and international

economy, lifting Australia’s productivity performance, lifting competition, and reducing the impact of regulation

on business, governments and the not-for-profit sector.

We also provided support to the Productivity Committee of Cabinet, the delivery of the NPA to Deliver a Seamless

National Economy and the Business Advisory Forum (BAF).

Fiscal

We worked with Treasury and the Department of Finance and Deregulation (Finance) to ensure effective

coordination and support for senior Ministers’ consideration of expenditure policy proposals, both during the

Budget process and throughout the year. We also supported the Expenditure Review Committee of Cabinet and

advised the Prime Minister on the fiscal outlook and associated fiscal strategy.

We worked extensively within PM&C to ensure divisions had the information necessary to assess expenditure

proposals, we provided guidance on expenditure accounting and presentation of financial information, and

contributed to the assessment of new policy proposals against other competing Government priorities.


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Tax, financial and workplace relations

Working with Treasury and DEEWR, we advised the Prime Minister on a range of taxation, financial and

workplace relations policy issues. This included advice to support implementation of the Government’s response

to the Fair Work Act Review, reforms to the corporate bond market and various taxation and superannuation

matters considered in the 2013–14 Budget.

We also analysed developments in domestic and international financial markets.

National Panel for Economic Reform

We supported the establishment of the National Panel for Economic Reform (NPER), including drafting terms

of reference and establishing processes for the NPER’s meetings, secretariat support, policy development and

coordination for two meetings of the NPER. We also prepared for a third meeting that was to be held in early

July 2013, but was postponed.

At its meetings the NPER considered the skills and education system, and innovative and productive workplaces.

Commonwealth-State relations

The Prime Minister is the Chair of COAG and the Secretary of PM&C is the Chair of the Senior Officials Meeting.

We provided secretariat support to three meetings of the COAG, one meeting of the BAF and 11 Senior Officials

meetings.

We also chaired ten meetings of a multi-jurisdictional working group considering expiring NPAs and ways to

streamline the development of new agreements.

We assisted the development of significant IGAs, including the National Education Reform Agreement and nine

implementation plans under the NPA on Stronger Futures in the Northern Territory.

In addition, we coordinated COAG responses to ten CRC reports, and participated in the Steering Committee for

the Review of Government Services Provision.

COAG Reform Council

The CRC was established by COAG to assist it to drive its reform agenda. Independent of individual governments,

the CRC reports directly to COAG on reforms of national significance that require cooperative action by

Australian governments.

During 2012–13 the CRC presented 11 reports to COAG, including reports on the six National Agreements, four

reports on NPAs with reward payments and an overall report on progress with the reform agenda.

In addition to the CRC’s central role in reporting to governments, it also gives priority to engaging relevant

stakeholders and the broader community in the process of accountability and performance reporting on the

national reform agenda. To assist with this, the CRC has sought independent reviews of its National Agreement

reports for plain English and readability – with all reports scoring in the ‘very good’ range or above. The CRC

complements this work with active public engagement through the media and social media, as well as regular

keynote addresses to stakeholder groups and events.


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Business engagementIn 2012–13 PM&C supported the Government’s engagement with business through a variety of different forums,

including the Business Advisory Forum (BAF), the National Panel for Economic Reform (NPER), the Australian

Business 20 (B20) Leadership Group and the Prime Minister’s Forum on the Digital Economy.

Economic Division worked with staff across PM&C and in other Government departments, and with the

NPER Working Group, to provide policy and operational support for the BAF and NPER meetings. Industry,

Infrastructure and Environment Division performed similar functions for the Digital Economy Forum and the

G20 Taskforce for the B20 Leadership Group.

The BAF gave senior business leaders the opportunity to engage directly with the Prime Minister, Premiers,

Chief Ministers and the President of the Australian Local Government Association ahead of COAG meetings on

issues related to competition and regulatory reform. At its 6 December 2012 meeting, the BAF signed a National

Compact on Regulatory and Competition Reform.

The NPER was established in 2012–13 to bring together government, business, the union movement and

the community sector to agree on long term productivity reforms and champion these reforms to achieve

community consensus. At its meetings, NPER discussed ways in which the skills and education system can

support Australia’s future workforce needs and how to achieve more productive and innovative workplaces.

Two measures in the 2013–14 Budget were informed by the early work of the NPER.

The Prime Minister’s Forum on the Digital Economy brought together leaders of 40 innovative companies to discuss

how Australia can maintain its edge and capture the opportunities the digital economy presents for the nation.

In February 2013 the Australian Business 20 Leadership Group, which comprises 27 prominent Australian

business people, was established. The Group will lead the organisation of the B20 when Australia hosts the

G20 in 2014. The B20 brings together business leaders from across the world to provide advice to G20 leaders.

It recognises that the private sector, as the main driver of economic activity, has a key role to play in achieving

strong, sustainable and balanced economic growth.

Photo 2.3 The former Prime Minister, the Hon Julia Gillard MP, discusses the challenges and opportunities of the growing

digital economy with participants at the Prime Minister’s Forum on the Digital Economy (Sydney, 4 October 2012).


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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 in collaboration with divisions

within PM&C and other Australian Government agencies.

Australia in the Asian Century (White Paper) Implementation Taskforce

Following the commissioning of the Australia in the Asian Century White Paper (the White Paper) in 2011 and the

subsequent formation of the Australia in the Asian Century Taskforce, the White Paper was completed and

launched on 28 October 2012. As the first step in developing Australia’s long term policy of engagement with Asia,

the White Paper sets out the strategic blueprint that Australia will use to build its engagement and take advantage

of growing opportunities in Asia.

In 2012–13 we established and supported the governance arrangements to oversee implementation of the White

Paper, working with a wide range of agencies. To support the implementation of the White Paper we helped

develop an Australian Public Service (APS) Asian Century Capability Strategy and conducted analysis on Health

and Aged Care opportunities in Asia and Regional Value Chains.

Working across the APS

In 2012–13 we worked to establish a Royal Commission into Institutional Responses to Child Sexual Abuse within

tight timeframes, drawing on expertise from across the APS. We played a pivotal role in convening the right

people at short notice, and leading the development of practical advice to the Government.

We also made significant contributions to long-term strategic issues, such as responding to the recommendations

of the Review of Funding for Schooling, developing an update to the National Digital Economy Strategy, working

on refugee status determination and developing the Government’s first National Security Strategy. These projects

involved research and analysis, conceptual thinking and significant stakeholder engagement to develop solid

theoretical frameworks and concrete actions.

Environment scanning

During the year, we continued to strengthen and diversify our environment scanning capacity to better anticipate

long-term trends and opportunities facing the Government. We contributed to the Australasian Joint Agencies

Scanning Network, and facilitated internal discussions around emerging issues to inform the Government’s policy

thinking. We also convened regular meetings of a Strategic Policy Network for the APS, and hosted regular guest

speakers for the Department.

We continued to build good stakeholder relationships with other agencies, the research sector, and industry,

including through a number of secondment programs.


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The Royal Commission into Institutional Responses to Child Sexual AbuseIn November 2012 the Prime Minister recommended to the Governor-General that a Royal Commission

into institutional child sexual abuse be established. An interim Taskforce with officials from PM&C, the

Attorney-General’s Department (AGD) and FaHCSIA was formed within PM&C. Taking account of stakeholder

feedback, the Taskforce worked to:

• establish a preferred model for the Royal Commission

• develop the Royal Commission’s terms of reference

• advise on changing legislation to allow the Royal Commission to hear evidence in private

• identify possible Royal Commissioners

• prepare documentation for the Prime Minister requesting the issue of Letters Patent by the Governor-General

(the legal instrument required to formalise the arrangements).

On 11 January 2013, the Governor-General issued Letters Patent appointing a six-member Royal Commission.

The Honourable Justice Peter McClellan AM was appointed Chair of the Commission. He is supported by

five other Commissioners – Mr Robert Atkinson AO APM, Justice Jennifer Coate, Mr Robert Fitzgerald AM,

Professor Helen Milroy and Mr Andrew Murray.

Following the issuing of the Letters Patent, the Taskforce was dissolved. As the current lead agency, AGD

continues to work with PM&C and FaHCSIA, as well as the Office of the Royal Commission, which has been

established to support the work of the Commissioners.

The Royal Commission will deliver an interim report by 30 June 2014 and is scheduled to submit its final report

to the Governor-General by 31 December 2015.

Photo 2.4 The Commissioners: (left to right) Mr Bob Atkinson AO APM, Professor Helen Milroy,

Justice Peter McClellan AM (Chair), Justice Jennifer Coate, Mr Robert Fitzgerald AM and Mr Andrew Murray.


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The Better Schools PlanIn September 2012 the Prime Minister set out the Australian Government’s plan for the future of school

education policy and funding. The plan included a new school funding model accompanied by specific school

education policy directions, with the overarching aim of propelling Australia’s education system into the top

five countries by 2025. The plan was a response to the 2011 independent Review of Funding for Schooling, which

found that the current funding arrangements for schooling were unnecessarily complex, lacked coherence

and transparency and involved a duplication of funding effort in some areas. It also found that there was an

imbalance between the funding responsibilities of the Australian Government and the State and Territory

Governments across the schooling sectors. The Review of Funding for Schooling recommended that a significant

increase in funding was required across all schooling sectors, based on individual student need and accompanied

by continued and renewed efforts to strengthen and reform Australia’s schooling system.

A joint PM&C and DEEWR Taskforce was established and located in PM&C to support the Prime Minister and the

Minister for School Education in leading negotiations with education jurisdictions on the Better Schools Plan,

which incorporates the National Education Reform Agreement (NERA) (the intergovernmental agreement with

States setting out the new arrangements) and the National Plan for School Improvement (NPSI) (the document

setting out the evidence-based reforms jurisdictions will need to implement in return for their funding).

The Schools’ Reform Taskforce is a good example of PM&C ‘Craft’ in practice. The Taskforce drew together

the expert knowledge of line departments and the unique skill sets of central agency staff, particularly in

relation to Commonwealth-State relations, to drive work on a matter of high priority for the Prime Minister

and the Australian Government. During 2013 we worked closely with State and Territory Governments and

the Catholic and Independent schooling sectors to reach agreements on school education policy and funding

reforms. The negotiations addressed the key components of the Australian Government’s Better Schools Plan,

including: drafting and finalising the NERA, the NPSI and the Australian Education Act 2013; negotiating the new

schools’ funding model and funding distribution arrangements; agreeing to new accountability and reporting

requirements; and finalising arrangements for non-participating jurisdictions.

At 30 June 2013 with the passage of the Australian Education Act 2013 and the participation of the NSW, ACT,

South Australian and Tasmanian Governments, more than 60 per cent of Australian students, including all

those attending Catholic and Independent schools, were covered by the Better Schools Plan. As at 30 June 2013

discussions were ongoing with other State and Territory Governments.

Photo 2.5 The former Prime Minister, the Hon Julia Gillard MP, with the joint Schools’ Reform Taskforce at a

morning tea thanking them for their work on school education and funding reform.


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National security and international policy

The National Security and International Policy Group advanced the Government’s policy objectives through

provision of advice, coordination and leadership on:

• foreign trade, overseas aid and international law priorities

• defence, homeland and border security priorities and intelligence coordination and cooperation

• national security policy and planning

• the development of a secure coordinated and effective national security information management and

whole of government cyber policy.

The Group comprises three divisions:

• Cyber Policy and Homeland Security Division

• Defence, Intelligence and Information Sharing Division

• International Division.


In 2012–13 the National Security and International Policy Group provided advice to the Prime Minister on

national security and international policy initiatives, including:

• supporting the Prime Minister’s leadership of Australia’s whole of government engagement with Afghanistan,

including planning for the completion of Australia’s military and civilian deployment in Uruzgan province by

the end of 2013

• enhancing ties with key regional partners by supporting the Prime Minister’s visits to India

(15 to 17 October 2012) and China (5 to 10 April 2013) – these visits resulted in strengthened bilateral architecture

with both countries including agreement to annual leaders meetings and to upgraded Ministerial contact

• strengthening engagement with Indonesia by supporting the annual leaders meeting in Darwin in July and

the Prime Minister’s attendance at the Bali Democracy Forum in November as well as participation in the

memorial service marking the tenth anniversary of the October 2002 Bali bombings

• helping secure Australia’s seat as a non-permanent member of the United Nations (UN) Security Council in

2013–14 through support of the Prime Minister in bilateral meetings and at regional and multilateral summits,

particularly the UN General Assembly Leaders Week in New York in September 2012

• helping secure key Australian economic and political regional goals through policy advice and support for

the Prime Minister’s attendance at the Asia-Pacific Economic Cooperation forum (APEC) Leaders’ Meeting in

Vladivostok in September 2012, the Asia–Europe Meeting (ASEM) on 4–7 November 2012 in Vientiane and the

East Asia Summit (EAS) in Phnom Penh on 19–21 November 2012

• advancing Australia’s trade liberalisation agenda by providing whole of government coordination and

supporting the Prime Minister’s advocacy on bilateral free trade agreements with China, India, Japan and

South Korea

• deepening ties in the Pacific by supporting the Prime Minister’s attendance at the Pacific Islands Forum in

Rarotonga in August 2012, visits to New Zealand in February 2013 and Papua New Guinea in May 2013

• leading the preparation and launch of Australia’s first National Security Strategy


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• leading establishment of the central initiative of the National Security Strategy – the Australian Cyber

Security Centre (ACSC) which facilitates a cohesive and effective whole of government response to

cyber incidents

• delivering the annual Coordinated National Security Budget in partnership with Finance, Treasury and the

National Security Community

• supporting the Secretaries Committee on National Security that considered all items considered by the

National Security Committee of Cabinet

• formalising New Zealand’s membership of the National Counter-Terrorism Committee (NCTC) to create the

Australia – New Zealand Counter-Terrorism Committee (ANZCTC); and streamlining and improving the

ANZCTC’s business processes

• hosting a multi-agency taskforce to support the work of the Expert Panel on Asylum Seekers and developing

an implementation strategy for the recommendations of the Panel’s Report

• revising the Australian Government Crisis Management Framework, which sets out the roles and

responsibilities of Ministers and senior officials in responding to a crisis.

Figure 2.2 KPIs for the National Security and International Policy Group

National security and international policy (Program component 1.1.2) Met

High level of satisfaction of the Prime Minister, the Cabinet and Cabinet committee chairs and the

Parliamentary Secretary with the quality and timeliness of advice, briefing, activities and/or support.P

Successful national leadership and coordination of the National Security Community and the national

intelligence community, including on cyber policy and information sharing.P

Advancement of the Government’s international priorities that promote Australia’s security, prosperity,

international profile and influence.P

Provision of whole of government responses to major national security related crises or emergencies. P

Successful development and whole of government integration of foreign and international security strategies

as required by the Government.P

High level satisfaction with the quality of support provided by the departmental secretariat to bodies

supported by the Department, including the National Counter-Terrorism Committee and the Independent

National Security Legislation Monitor.

P





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Cyber Policy and Homeland Security Division

The Cyber Policy and Homeland Security Division advises on policy and strategy in the areas of border security,

counter-terrorism, cyber policy, crisis coordination and law enforcement.

Border protection

We led the coordination and provision of advice to the Prime Minister on countering people smuggling and

irregular maritime arrivals. In particular, we coordinated and provided support to the multi-agency Border

Protection Taskforce, chaired by PM&C. We also hosted a multi-agency taskforce to support the work of the

Expert Panel on Asylum Seekers and developed the implementation strategy for the recommendations of the

Panel’s Report.

We advised on the Prime Minister’s engagement with foreign leaders on irregular migration and people smuggling

issues. We also contributed to the Australian Customs and Border Protection Service reform agenda.

Counter-terrorism

In 2012 New Zealand joined Australia’s counter-terrorism coordination efforts and the national committee was

renamed the Australia-New Zealand Counter-Terrorism Committee (ANZTC). We coordinated the activities of the

ANZCTC, managing committee business, including meetings in December 2012 and June 2013.

We provided advice to the Prime Minister on COAG’s counter-terrorism legislation review and two international

terrorism incidents.

We supported the Independent National Security Legislation Monitor (INSLM), Mr Bret Walker SC, to develop

his annual report to the Prime Minister on 20 December 2012. The report focused on the powers available under

the counter-terrorism legislative regime. We also assisted the INSLM in conducting public hearings in accordance

with the Independent National Security Legislation Monitor Act 2010.

Cyber policy

The 2013 National Security Strategy emphasised the need for better integration of cyber policy and operations.

To achieve this, we worked with other agencies to develop the Australian Cyber Security Centre (ACSC), which

will be Australia’s premier cyber security capability, and the Cyber Security Operations Board (CSOB), to oversee

Australia’s operational cyber security capabilities.

We led the interdepartmental Cyber Policy Group and International Engagement Group, which together ensured

effective cooperation and coordination of cyber policy across government. Internationally, we promoted

Australia’s positions on key cyber issues, such as internet governance, including at the Budapest Conference on

Cyberspace. In consultation with relevant government agencies and Telstra, we coordinated the second annual

Cyber Security Challenge, an event that raises interest in cyber security careers amongst university students and

education providers.

Crisis management

We revised the Australian Government Crisis Management Framework, which provides guidance to Ministers

and senior officials during the response to any crisis that occurs within Australia or that affects our interests

overseas.


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Ten years of the National Counter-Terrorism CommitteeAfter 11 September 2001 the Prime Minister, State Premiers and Territory Chief Ministers met at a special summit

to agree on new ways to tackle terrorism. One of the key outcomes of this meeting was the formation

of the National Counter-Terrorism Committee (NCTC).

The NCTC marked its tenth anniversary in October 2012 and welcomed New Zealand as a full member. The

committee was renamed the Australia – New Zealand Counter-Terrorism Committee (ANZCTC). New Zealand’s

membership provided formal recognition of the importance of trans-Tasman cooperation in security matters.

For ten years, the committee has led Australia’s effort to build nationwide capabilities to counter terrorism.

The Department has co-chaired the committee since its commencement and has provided secretariat support

since 2003.

In the ten years since its inception, the committee has:

• ensured strategic directions for counter-terrorism are aligned with the current threat environment

• practised national and local responses to terrorist threats and attacks in a number of exercises

• developed the skills of our first-responder, intelligence and investigative professionals to meet the evolving

terrorism threats

• refined the way in which government communicates with the public about terrorism

• worked cooperatively across governments and with partners such as universities to better understand, and

counter, violent extremism.

The ANZCTC is a positive example of an intergovernmental committee which has strengthened the cooperative

relationships between the Commonwealth and State and Territory jurisdictions and, more recently, between

Australia and New Zealand.

Photo 2.6 The ANZCTC met in Wellington in June 2013, the first meeting in

New Zealand since New Zealand became a full member of the Committee.


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Law enforcement

We provided advice to the Prime Minister on combating gang violence and organised crime and on the Offshore

Oil and Gas Resources Sector Security Inquiry.

We worked with other agencies to implement a trial of criminal history information sharing with New Zealand

for employment vetting purposes. The trial, conducted with the Queensland Government, is part of a broader

package of reciprocal sharing of criminal history information to support border control and law enforcement.

The trial demonstrated the feasibility of exchanging criminal history information and highlighted the benefit of

expanding the initial trial.

Defence, Intelligence and Information Sharing Division

The Defence, Intelligence and Information Sharing Division provides coordination and advice in relation to

defence, intelligence, the national security policy framework, and the national security information management

environment.

Defence and intelligence policy

In 2012–13 we supported the Prime Minister’s consideration of major defence issues – most significantly, those

relating to strategic policy, Defence operations and major capital acquisitions. In particular, we continued to

support the Government’s consideration of transition planning for operations in Afghanistan, East Timor and

the Solomon Islands. We also provided advice on major defence acquisitions and future Defence capability

requirements.

We prepared and assisted with advice on Defence reviews, including the US Global Force Posture Review and the

Australian Defence Force (ADF) Posture Review.

In 2012 we undertook a comprehensive review of the national intelligence priority-setting framework in order to

address the Government’s policy and operational priorities.

In facilitating the Government’s defence and intelligence policy needs, we supported the National Security

Adviser in chairing the National Intelligence Coordination Committee through providing secretariat support

and intelligence policy advice. In this role we also worked closely with agencies across the national intelligence

community, including the Office of the Inspector-General of Intelligence and Security.

We continued to oversee the implementation of recommendations of the 2011 Independent Review of the

Intelligence Community. By integrating these recommendations into ongoing activities, we are continuing to

ensure the national intelligence community functions more effectively.

Information sharing and national strategic policy framework

We supported the Government’s consideration of overarching strategic national security policy issues and, in

particular, the Prime Minister’s launch and ongoing implementation of Australia’s first National Security Strategy.

We continued to work on strategic direction, supporting whole of government national security policy

development and promoting a cohesive national security culture. This included improvements to priority setting,

resource allocation through the Coordinated National Security Budget process and the application of practical and

risk-based analytical approaches to national security policy and planning.

Consistent with our commitments under the National Security Information Environment Roadmap: 2020 Vision, we

made further progress in removing barriers to secure and appropriate information sharing.


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International Division

The International Division provides advice on foreign policy, trade and aid priorities, strategy, bilateral relations

and Australia’s engagement with regional and international organisations.

Australia in the Asian Century

In 2012–13 there was an enhanced focus on Australia’s role in the Asia-Pacific region and on giving effect to the

Government’s strategy set out in the Australia in the Asian Century White Paper (released on 28 October 2012).

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,

particularly through:

• the Prime Minister’s visit to China in April 2013 when agreement was reached to hold annual leaders meetings

and Ministerial-level economic and foreign and strategic dialogues (see the feature on page 31)

• the Prime Minister’s visit to India in October 2012, which secured agreement to annual Prime Ministerial

meetings; to a new Ministerial dialogue on energy security; and to commencing negotiations on a civil nuclear

cooperation agreement

• the Prime Minister’s meeting with Indonesian President His Excellency Dr Susilo Bambang Yudhoyono in

Darwin in July 2012, which delivered an agreement to commence negotiations on the Indonesia–Australia

Comprehensive Economic Partnership Agreement

• the visit by the President of Myanmar in March 2013, the first by a Head of State from that country since 1974,

marking a significant strengthening of the bilateral relationship and underlining Australia’s support for the

reform process underway in that country

• the Prime Minister’s engagement with other Asian leaders during visits to Australia by the Prime Minister of

Singapore, the President of the Philippines and the Sultan of Brunei.

We supported the Prime Minister’s active role at key regional and multilateral forums including APEC

(September 2012), the Asia-Europe Meeting (November 2012) and the EAS (November 2012). Attendance by the

Prime Minister at the EAS reinforced Australia’s commitment to building the summit as the premier body for

regional dialogue across the whole spectrum of regional political, security and economic issues. ASEM marked

the Prime Minister’s first visit to Asia following the launch of the Australia in the Asian Century White Paper and

provided an opportunity to explain the white paper to key regional leaders.

Engagement in the Pacific

The annual Australia – New Zealand Leaders’ Meeting was held in Queenstown in February 2013 marking the

40th anniversary of the Closer Economic Relations agreement and resulting in the agreement to a range of

measures designed to further deepen economic integration. We worked with the Department of Foreign Affairs

and Trade (DFAT) and our New Zealand counterparts to facilitate this meeting.

Planning and briefing was provided for the Prime Minister’s visit to Papua New Guinea, during which the signing

of a Joint Declaration for a new Papua New Guinea – Australia Partnership reflected the evolution of the bilateral

relationship to a new level of cooperation based on trust, respect and common values. We also supported the

Prime Minister’s attendance at the Pacific Islands Forum in August 2012, which included the announcement of a

$320 million initiative to increase the proportion of Pacific women in leadership and decision-making roles.


30

Bali bombings 10th anniversary Memorial Service, October 2012On 12 October 2012 the Prime Minister travelled to Bali, Indonesia to commemorate the 10th anniversary

of the 2002 Bali bombings. In cooperation with the Government of Indonesia, the Australian Government

held a Memorial Service at the Garuda Wisnu Kencana Cultural Park in Bali which was attended by over

1,200 people. On the same day the Governor-General led a Memorial Service in the Great Hall of Parliament

House in Canberra.

We worked closely with other Government agencies and Australia’s Embassy in Indonesia to support the

Prime Minister’s visit and assist with whole of government coordination of the memorial services and

the delivery of the Bali Memorial Assistance package. This assistance was provided by the Government to

Australians who were seriously injured and to the families of the Australians who lost their lives in the 2002

bombings, to help them cover the costs of attending the services.

During the visit the Prime Minister toured the Sanglah Hospital burns unit, which provided critical care to

many Australians in the first hours after the bombing, and thanked those, Indonesians and Australians, who

worked side by side in the rescue and recovery process.

The visit highlighted Australia’s close friendship with Indonesia and sent a strong message that the 2002 acts of

violent extremism have only served to bring our two countries closer together. The effective counter-terrorism

and law enforcement cooperation built between Australia and Indonesia in response to the Bali bombings has

grown into an enduring partnership, to the benefit of both countries.

Photo 2.7 The former Prime Minister, the Hon Julia Gillard MP, and Indonesian Minister of Foreign Affairs,

His Excellency Dr R.M Marty M Natalegawa, at the Bali Service.


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Prime Minister’s visit to China, April 2013In April 2013 the Prime Minister visited China, holding substantive discussions with China’s

President Xi Jinping and Premier Li Keqiang just weeks after China’s historic leadership transition.

Reflecting the Government’s commitment, as outlined in the Australia in the Asian Century White Paper, to a

stronger and more comprehensive relationship with China, the Prime Minister led the most senior Australian

political delegation ever to visit China. The Prime Minister was joined by the Minister for Foreign Affairs, the

Minister for Trade and Competitiveness and the Minister for Financial Services and Superannuation.

During the visit Australia and China agreed to hold annual leaders meetings and Ministerial-level economic

and foreign and strategic dialogues. These arrangements will give renewed strategic direction to the bilateral

relationship.

This major step forward was accompanied by a range of policy announcements spanning business and finance,

tourism, international cooperation, defence and climate change. Among these announcements were the

establishment of direct trading between the Australian dollar and the Chinese renminbi; cooperation to address

some of the region’s most pressing development issues, such as drug resistant malaria and HIV/AIDS; and an

agreement to work together on the shared challenges of carbon pollution and climate change.

We played a key role in supporting the Prime Minister’s visit by working closely with Australian Government

agencies and Australia’s Embassy and consulates in China to deliver focused, timely whole of government advice

reflecting Australia’s growing engagement with China.

Photo 2.9 Former Prime Minister, the Hon Julia Gillard MP, presents a large jar of Vegemite to a student of Chenjinglun High School in Beijing during her visit to China in April 2013.

Photo 2.8 Former Prime Minister, the Hon Julia Gillard MP, inspects a Chinese honour guard with China’s Premier, His Excellency Mr Li Keqiang during her April 2013 visit to China.


32

International leadership

Work leading to Australia’s successful campaign for a non-permanent seat on the UN Security Council intensified

early in 2012–13. This included support for the Prime Minister at the United Nations General Assembly Leaders

Week in September 2012 in New York, which underscored Australia’s longstanding support for UN objectives

and built Australia’s multilateral profile on regional and global issues, including through the Prime Minister’s

leadership role as co-chair of the UN Secretary-General’s Millennium Development Goals Advocacy Group.

Assistance was provided to the Prime Minister as Commonwealth Chair-in-Office, including on delivery of the

Charter of the Commonwealth. The Charter sets out, for the first time, the values of the Commonwealth and is a

significant achievement under Australia´s term.

We provided advice and support for the Prime Minister’s leadership of Australia’s engagement with Afghanistan

including, in consultation with international partners, advice on the agreement to the transition of lead security

responsibility to the Afghan National Security Forces by 2014.

We also advised on non-proliferation and disarmament issues and deployments of the Australian Civilian Corps.

Governance

Support services for Government operations and official and ceremonial support are provided by the

Governance Group.

The Group comprises five divisions:

• Government Division

• Ministerial Support Division

• Cabinet Division

• Corporate Services Division

• G20 Operations Division.

Also within the Group is the Cabinet Implementation Unit.


This year we supported the Prime Minister, the Cabinet, Cabinet committees and our Portfolio Ministers,

including the Cabinet Secretary and the Parliamentary Secretary by:

• receiving, registering, tracking and analysing 194,024 items of incoming correspondence and coordinating

2,285 briefs for the Prime Minister and our Portfolio Ministers

• coordinating a number of significant visits and events including:

- the State Visit by His Excellency Dr Susilo Bambang Yudhoyono, President of the Republic of Indonesia

- the Royal Visit by Their Royal Highnesses, The Prince of Wales and The Duchess of Cornwall

- the National Memorial Service for the 10th Anniversary of the 2002 Bali Bombings

• providing essential support to the Prime Minister to undertake nine overseas visits to 12 nations


33


• coordinating a range of State occasions and official hospitality events around Australia, including State

Funerals

• launching the Department’s new intranet, boosting internal communication and focusing on the people and

the life of the Department

• coordinating arrangements for the delivery of eight Community Cabinet meetings across Australia

• making major advances in our operational planning for the G20 summit in 2014 (see the G20 performance

report at page 47)

• supporting development and implementation of the Department’s Capability Action Plan following the

2011–12 Capability Review

• coordinating the Government’s legislation program involving regular briefings to the Prime Minister on

private Members’ business, over 400 briefs to the Parliamentary Secretary to the Prime Minister on legislation

as well as issuing 11 legislation circulars to departments and agencies

• reviewing the implementation risk for 22 Portfolio Budget Submissions, including over 280 individual new

proposals and engaging with agencies to provide substantive implementation planning advice on 19 complex

new proposals

• developing the Public Interest Disclosure Bill 2013, introduced into Parliament on 21 March 2013, establishing a

scheme for investigating and responding to allegations of wrongdoing in the Commonwealth public sector

• receiving and managing 138 new freedom of information (FOI) requests

• leading work to achieve agreement with State Governments to a means of implementing important reforms

that modernise the rules of Royal succession in Australia

• assisting with the establishment of the Royal Commission into Institutional Responses to Child Sexual Abuse,

including the development of amendments to the Royal Commission Act 1902 to support ‘private sessions’ to be

undertaken by the inquiry.

Figure 2.3 KPIs for the Governance Group

Support services for government operations (Program component 1.1.3) Met


Ministers and the Parliamentary Secretaries, the Governor-General and Federal Executive Council, with the

quality and timeliness of advice, briefing, activities and/or support.

P




grant funding deeds. P



34

Figure 2.3 KPIs for the Governance Group (continued)

Official and ceremonial support (Program 1.2) Met


Ministers and the Parliamentary Secretaries, former Governors-General and the Governor-General

designate with the quality and timeliness of advice, briefing, activities and/or support.

P

Satisfaction of departments, agencies and other key stakeholders, with the cooperation and collaboration of

the Department.P

High level of satisfaction with the quality of support provided by departmental secretariat to bodies

supported by the Department, including the Official Establishments Trust.P


grant funding deeds.P

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. P


Government Division

The Government Division provides advice to the Prime Minister, and Portfolio Ministers and the Parliamentary

Secretaries on the Government’s legislation program, parliamentary matters, Ministerial arrangements, public

service matters, legal and constitutional policy matters, legislation administered by the Portfolio Ministers, royal

commissions and Australian honours and symbols policy.

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. We also

supported the approval of legislation for introduction in the Parliament and provided regular briefing for the

Prime Minister on private Members’ business.

In addition, we supported the Prime Minister in implementing changes to the Ministry as well as preparing

amendments to the Administrative Arrangements Order for consideration by the Governor-General. We

provided advice on a range of governance and remuneration policy issues and coordinated an update to the Annual

Report Requirements for consideration by the Joint Committee of Public Accounts and Audit.

Legal policy matters

We contributed to whole of government advice to the Prime Minister on a broad range of legal policies and

issues, including human rights, Federal courts and privacy as well as administration and support relating to the

Ombudsman Act 1976.

We coordinated and progressed the portfolio’s legislation program, including developing legislation on public

interest disclosures in the Commonwealth public sector (see the Public Interest Disclosure Bill feature).

We developed legislation to support the work of the Royal Commission into Institutional Responses to Child

Sexual Abuse. The Royal Commissions Amendment Act 2013 was passed by the Parliament on 20 March 2013 and

commenced on 28 March 2013.


35

Public Interest Disclosure legislation We worked on the development of legislation to establish a scheme for investigating and responding to

allegations of wrongdoing in the Commonwealth public sector and providing protections for current or former

public officials who raise such allegations. The Public Interest Disclosure Bill 2013 was introduced into the House

of Representatives on 21 March 2013 and the Public Interest Disclosure (Consequential Amendment) Bill 2013 was

introduced on 29 May 2013. The Bills were agreed to by the House of Representatives on 19 June 2013 and both

Bills, as amended, were then passed by the Senate on 26 June 2013.

The scheme provides for stand-alone whistleblower protection at the federal level for the first time, which will

apply broadly across the Commonwealth public sector, including to departments, APS agencies, the Australian

Defence Force, Commonwealth companies and intelligence agencies.

Given this broad application, we consulted widely across the public sector in the development of the legislation.

Photo 2.10 PM&C Staff who contributed to the development of the Public Interest Disclosure legislation.


36

Legal proceedings

We continued our involvement in the discovery process given by the Commonwealth in Spencer v Commonwealth

of Australia & Anor (ACD24/2007). The applicant challenged privilege claims for public interest immunity on the

grounds the documents revealed or tended to reveal Cabinet deliberations. On 7 June 2012 the Federal Court

upheld in full the Commonwealth’s claims for public interest immunity. The Court’s decision was the subject of an

application for leave to appeal to the Full Federal Court. On 26 November 2012 the Full Federal Court dismissed

the applicant’s application for leave to appeal. The Court awarded costs to the Commonwealth.

FOI applications

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.

The Department and Portfolio Ministers received 138 new FOI requests in 2012–13 and notified 88 access decisions,

with 90 per cent of decisions notified within the statutory deadlines under the FOI Act. In 2012–13 documents

released in 28 FOI access decisions were posted to the Department’s disclosure log. Figure 2.4 contains further

statistics on FOI requests and performance.

Figure 2.4 Freedom of information requests and performance

FOI requests handled 2010–11 2011–12 2012–13

Requests on hand at 1 July 42 55 35

New requests received 174 208 138

Requests withdrawn 47 78 42

Requests transferred to other agencies 21 21 21

Access decision notified 93 129 88

Timeliness of responses

Percentage of access decisions notified within statutory deadlines 78% 75% 90%

We undertook an FOI systems improvement project and redeveloped the processes and procedures for processing

FOI requests within the Department.

Australian honours and symbols

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, the Australian Bravery

Decorations Council and the National Emergency Medal Committee. We also provided secretariat services to the

committees that consider honours to public servants, such as the Public Service Medal.

We developed and delivered Australian Government recognition of the service of members of the Australian

Women’s Land Army (AWLA). At a reception at Parliament House on 20 August 2012, former members were

presented with certificates of appreciation signed by the Governor-General, a commemorative brooch designed

by the Department of Defence and a copy of a publication produced by the Australian War Memorial for the

anniversary documenting the history of the AWLA: Serving on the Home Front. Three hundred and seventy-five

former AWLA members were recognised during 2012–13.


37

In August 2012 we were advised of Her Majesty The Queen’s approval of new Guidelines concerning the acceptance

and wearing of foreign honours and awards. The new Guidelines were developed in consultation with the

Australian Honours and Awards Secretariat of Government House, DFAT and Defence, to improve the process both

for foreign countries seeking to offer honours and awards to Australians, and for Australians seeking approval to

accept and wear honours and awards.

On the Prime Minister’s recommendation, in April 2013 Her Majesty The Queen approved the use of the title

‘the Honourable’ by Australian Governors-General, including former Governors-General.

We administered nominations for non-Australians for honorary awards in the General Division of the Order of

Australia and the Governor-General made 25 honorary appointments during the year.

We provided information and advice about national symbols, including the Australian National Flag and the

Australian National Anthem, including through the It’s an Honour 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 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.

We also arranged 12,102 congratulatory messages from the Prime Minister to Australians celebrating significant

birthdays and wedding anniversaries.

National Australia Day Council

The National Australia Day Council (NADC) is a Commonwealth owned, not-for-profit company within the

Prime Minister’s portfolio, reporting under the provisions of the Commonwealth Authorities and Companies Act 1997 and

the Corporations Act 2001. The 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 the National Australia Day Council website.

In 2012–13 the Government provided $3.4 million to the NADC, administered through PM&C. The NADC performed

effectively during the year and provided acceptable financial, audit and progress reports on its funded activities

within the timeframes stipulated in the grant funding provisions.

Ministerial Support Division

The Ministerial Support Division coordinates the delivery of departmental services to the Prime Minister and our

Portfolio Ministers and Parliamentary Secretary, including managing the delivery of briefing and correspondence,

providing support to Ministerial offices, preparing draft speeches and providing internal communications

support. We also support the delivery of Community Cabinet meetings and manage the Department’s internal

governance arrangements, including supporting the Audit Committee and internal audit program; fraud control;

risk management; operational planning and preparation of the Department’s annual report. Under Program 1.2,

we provide high-level support for the State Occasions and the Official Visits Program, the operations of the

Prime Minister’s official residences and for former Governors-General.

Internal communications and speeches

We supported internal communication through coordinating and drafting articles for promotion on the intranet

and the staff e-newsletter, Watt’s On, managed the Communications Working Group, developed a Departmental

Media Policy and drafted speeches for the Secretary and senior executive. We managed the intranet redevelopment,

launched in September 2012, to enhance internal communication and information sharing and to create a sense

of community across the Department. We also supported the Prime Minister through the preparation of draft

speeches, video messages and other written material and provided quality assurance on briefs.

http://www.australiaday.org.au/corporate/about-us/national-australia-day-council.aspx


38

Internal governance and audit

We supported the Department’s internal governance arrangements through the establishment of the Department’s

Governance Framework and through ongoing work in the areas of audit, fraud, risk and internal governance. More

information about those arrangements is addressed in Part 3: Management and accountability (on page 50).

Supporting the Prime Minister, our Portfolio Ministers and their offices

We continued to facilitate the flow of all parliamentary, correspondence and briefing items between the

Department and the Prime Minister and our Portfolio Ministers, including our Parliamentary Secretary. In

2012–13 there was a continuing shift from hardcopy correspondence to emails sent to the Prime Minister by the

public. The Department provided responses to all Senate questions on notice either on the due date or within one

day of the due date.

Figure 2.5 Performance relating to processed correspondence and parliamentary questions

Correspondence and parliamentary questions 2010–11 2011–12 2012–13

Correspondence processed

Number of items 158,000 155,000 194,024

Questions on Notice (QON) handled

Questions on hand at 1 July 9 5 1

New questions received 331 90 50

Questions transferred to other Ministers 1 15 3

Responses to questions lodged 28 77 34

Questions withdrawn/lapsed 1 / 7 0 0

Response time for House of Representatives questions2 59 51 66

Response time for Senate questions2 61 37 50

Numbers of Senate Estimates questions on notice3

AE - Additional Estimates (February) 56 100 74

BE - Budget Estimates (May) 116 125 98

SBE - Supplementary Budget Estimates (October) 2344 125 N/A5

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 Average number of days, for relevant responses, between questions being asked and responses being lodged.3 Questions are excluded from these departmental figures where the response is managed by a separate portfolio agency.4 All Senate Estimates questions on notice for 2011 were tabled by the due date.5 N/A for SBE 2013: The estimates round will occur in 2013–14.


39

Community engagement

We planned, coordinated and delivered eight 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 Ministerial meetings, where community members

can pursue matters of interest to them. This is followed by a Public Forum, where members of the public can ask

questions of the Prime Minister and other Ministers. In 2012–13 Community Cabinet meetings were held in the

following locations:

• Ipswich, Queensland on 10 July 2012

• Orelia, Western Australia on 5 September 2012

• Launceston, Tasmania on 3 October 2012

• Kippa-Ring, Queensland on 14 November 2012

• Aberfoyle Park, South Australia on 20 February 2013

• Thornlie, Western Australia on 27 March 2013

• Norwood, Victoria on 17 April 2013

• Regents Park, Sydney on 22 May 2013.

Meetings involved around 3,173 registered attendees, an average of 35 Ministerial meetings at each event and

14 questions asked at each public forum.

At the end of 2012 we administered an online survey to participants of the six Community Cabinet meetings held

in the 2012 calendar year to explore attendee motivation, experience and engagement expectations and guide

improvements to the program. Responses indicated that attendance was largely motivated by the opportunity to

engage directly with Government and that attendees highly valued the question and answer focus of Community

Cabinet. Most respondents characterised the experience as a genuine opportunity to talk to, and hear from,

Government first-hand and said they would be willing to come again or participate in other types of Government

engagement activities.

We created a Facebook page in 2012 to promote the meetings and improve reporting on meeting outcomes. Post

meeting reporting via social media has been well received by attendees and is acquiring something of a broader

online audience with the site recently achieving over 2,000 ‘likes’. Community response to the official photo

albums of each meeting has been particularly strong as well as the ‘Speaks’ series of posts which enable attendees

to share the issue most important to them with the wider online community.

Official Establishments

Under program 1.2, we managed 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. Throughout the financial year, four charity events were held at Kirribilli House under the

Official Establishments Charities Program.

We provided administrative support to five former Governors-General, including support for their staffing and

office arrangements and related entitlements.


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Community Cabinet Team

Photo 2.11 The Community Cabinet team and PM&C volunteers met the former Prime Minister, the Hon Julia Gillard MP,

and the former Cabinet Secretary, the Hon Mark Dreyfus QC MP, at the final Community Cabinet meeting held in 2012, hosted by Hercules Road State School, Kippa-Ring, Queensland.

Photo 2.13 PM&C graduates welcome public attendees to the Regents Park Community Cabinet.

Photo 2.12 The former Prime Minister the Hon Julia Gillard MP, the Minister for Families, Community Services, Indigenous Affairs and Disability Reform, the Hon Jenny Macklin MP and Local Member Mike Symon MP meet with representatives from Deafblind Victorians at the Ringwood Community Cabinet meeting.


41

Ceremonial and hospitality support

Through Program 1.2, we also provided high-level support for major events, such as guest of government visits,

ceremonies and state occasions, and co-ordinated the logistical arrangements for the Prime Minister’s

overseas visits.

During 2012–13 we provided essential logistical and administrative support:

• to the Prime Minister to undertake nine overseas visits to 12 nations

• by coordinating a range of State occasions and official hospitality events around Australia, including

State Funerals.

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

• Cook Islands (Pacific Islands Forum) (29–30 August 2012)

• Russia (APEC) (7–9 September 2012)

• United States of America (United Nations General Assembly) (23–29 September 2012)

• Indonesia (10th Anniversary Bali Memorial Service), Afghanistan and India (11–18 October 2012)

• Laos (Asia–Europe Meeting, ASEM) and Indonesia (Bali Democracy Forum) (4–9 November 2012)

• Cambodia (East Asia Summit, EAS) (19–21 November 2012)

• New Zealand (8–10 February 2013)

• China (5–10 April 2013)

• Papua New Guinea (9–11 May 2013).

We arranged and facilitated 39 guest of government visits to Australia this year (see Figure 2.6), an increase of

seven 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 2012–13 included:

• Their Royal Highnesses The Prince of Wales and The Duchess of Cornwall

• Heads of State of Indonesia, Chile, Philippines, Mozambique, Myanmar, and Brunei Darussalam

• Heads of Government of Zimbabwe, the Solomon Islands, Singapore and Papua New Guinea

• His Royal Highness Prince Philippe of Belgium, Her Royal Highness Princess Bajrakitiyabha of Thailand,

United Nations (UN) Under Secretary-General and Executive Director of UN Women, the Director-General of

the International Atomic Energy Agency, the Secretary-General of the Association of Southeast Asian Nations

(ASEAN), the State Councillor China and the President of the Asian Development Bank

• Ministers from Armenia, Albania, the United States of America, Vietnam, the United Kingdom, Sweden,

Saudi Arabia, Afghanistan, Chile, Timor-Leste, Poland, Morocco, Sri Lanka and Mauritania.


42

Figure 2.6 Summary of ceremonial and hospitality services

Services 2010–11 2011–12 2012–13

Prime Minister’s overseas visits

Visits made 8 8 9

Nations visited1 14 11 11

Total duration of visits (whole or part days) 48 42 40

Official visits to Australia by guests of the Australian Government

Heads of State 2 7 6

Heads of Government 4 8 4

Ministers 12 11 18

Other guests2 2 6 11

Total visits excluding airport visitations 20 32 39

Airport facilitations3 115 170 110

Other events of state

State Funerals 1 3 2

State Memorial Services 2 1 2

Additional events 20 25 29

Total other events of state 23 29 33

Notes:

1 Nations may be visited more than once in a given year.2 Guests include visitors who are royalty but are not Heads of State.3 Airport facilitation involved coordinating airport and border control procedures for 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.

We also managed airport facilitations for Heads of State and Heads of Government transiting or making private

visits to Australia. Other major events we coordinated in 2012–13 included:

• morning tea in honour of the 2013 Australian of the Year Awards Finalists (Canberra, 25 January 2013) and an

Australia Day 2013 Reception (Canberra, 26 January 2013)

• COAG Meetings (Canberra, 25 July 2012, 7 December 2012 and 19 April 2013)

• State Funerals for the Honourable Joe Riordan AO (Sydney, 23 November 2012) and the Honourable Joan Child AO

(Melbourne, 5 March 2013), a State Memorial Service for Mrs Hazel Hawke AO (Sydney, 25 June 2013) and the

National Memorial Service for the tenth Anniversary of the 2002 Bali Bombings (Canberra, 12 October 2012)

• receptions for the Australian Olympic Team (19 August 2012) and the AWLA (20 August 2012)

• morning tea for the 25th Anniversary of the Open Gardens Australia (Canberra, 25 August 2012)

• the PM’s XI Cricket Match (Canberra, 29 January 2013)

• dinner to celebrate the 40th Anniversary of Diplomatic Relations with China (Canberra, 12 December 2012).


43

Cabinet Division

The Cabinet Division includes the Cabinet Secretariat which provides administrative services to the Cabinet

and its committees to support the Government’s decision-making processes. The Division is also responsible

for supporting the Federal Executive Council, the Secretaries’ Committee on National Security, maintaining

the registry of Cabinet documents for the current Government and preserving the Cabinet records of previous

Governments.

Figure 2.7 Services to the Cabinet and other decision makers

Services 2010–11 2011–12 2012–13

Meetings held by the Cabinet and its committees in Canberra / Cabinet and committee meetings held outside Canberra

Cabinet 39 / 1 50 / 2 40 / 2

National Security Committee 20 / 0 27 / 0 19 / 0

Other Cabinet committees1 101 / 3 113 / 4 86 / 3

Total meetings held by the Cabinet and its committees 164 196 150

Percentage of Cabinet Minutes released within 24 hours / 48 hours of meeting

Cabinet 69 / 82 73 / 95 61 / 88

National Security Committee 50 / 92 38 / 82 35 / 68

All other committees 32 / 64 42 / 74 40 / 63

Other indicators of Cabinet workload

Cabinet documents lodged 544 491 596

Cabinet minutes recorded 1,146 1,524 1,260

Other meetings

Secretaries’ Committee on National Security 12 19 18

Support for the Governor-General in the Federal Executive Council

Meetings held 22 22 25

Papers considered 484 585 555

Availability of papers two working days before meeting 97.3% 98.5% 89.6%

Note:

1 The 2010–11 figure includes five Ministry and 14 Parliamentary Business Committee meetings; the 2011–12 figure

includes two Ministry and 18 Parliamentary Business Committee meetings; and the 2012–13 figure includes two

Ministry and 16 Parliamentary Business Committee meetings. All meetings were held in Canberra.

During 2012–13 we provided support for the Cabinet and 13 Cabinet committees and sub-committees. This included

overseeing the establishment of the G20 Committee of Cabinet, which provides policy direction and oversees

operational requirements required for Australia’s successful hosting of the G20 in 2014. There were 150 Cabinet

and committee meetings held in 2012–13, of which five were held interstate. In addition, the Secretariat provided

support for 18 meetings of the Secretaries’ Committee on National Security.


44

We also supported Her Excellency the Honourable Quentin Bryce AC CVO, the Governor-General of the

Commonwealth of Australia, and provided high-level administrative support to the Federal Executive Council

which met 25 times in 2012–13.

We assisted the National Archives of Australia in preparing the release of Cabinet documents including the

transfer of records up to March 1996, as Australia transitions from a 30 closed period to 20 years. These documents

will become available for request at www.naa.gov.au. As required by the Cabinet Handbook, we provided advice

on FOI applications for Cabinet related documentation.

Cabinet Implementation Unit

The Cabinet Implementation Unit (CIU) assists with 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 collaboratively across Government to support implementation of key decisions on time, on budget and to

the Government’s expectations.

During 2012–13 we provided the Prime Minister and the Cabinet with quarterly reports on progress towards

achieving the Government’s most significant priorities. We also worked with departments and monitored

delivery of the Government’s commitments to the Australian Greens and independent Members of Parliament,

and worked with the State and Territory Governments to provide COAG with a report on the implementation

status of major COAG initiatives.

We continued our proactive engagement with departments and agencies by providing direct support to

25 implementation exercises, including six major cross portfolio implementation exercises. We also reviewed

the implementation risks for 22 Portfolio Budget Submissions, including over 280 individual new proposals.

Our ongoing involvement with the Australian Public Service Commission (APSC) Senior Executive Service

(SES) Leadership Development Framework included presentations at APSC training on developing Cabinet

Submissions. We also conducted 27 presentations and extended lectures to departments and agencies, presented a

guest lecture at the Australian National University (ANU) Crawford School of Public Policy on implementation

and delivery, and presented at the 1st Biennial Australian Implementation Conference. We built on our external

communication products by enhancing the CIU corporate website, producing a series of toolkit papers for 2013

release and expanding readership of our quarterly newsletter to over 500 regular subscribers.

Expertise in implementation was shared through collaboration with departments and agencies on complex

implementation challenges. We used a ‘hub and spokes’ model to connect departments and agencies to examples

of good practice and to people who have expertise in delivering similar programs, either by directly linking

different areas together or by engaging the collective expertise of the program managers’ community of practice.

This has resulted in stronger connections between agencies, more sharing of lessons learnt and expertise and

higher quality implementation of Government initiatives.

We supported three meetings of the APS Policy Implementation Network (APS PIN) as well as three APS PIN

workshops on implementing the Australia in the Asian Century White Paper, the NDIS and proposals for a

Whole of Government Evaluation Framework.

In November 2012 the APS PIN was showcased at the Organisation for Economic Co-operation and Development

(OECD) Public Governance Committee in Paris as a best practice example of practical innovation in

implementation and delivery, reflecting Australia’s reputation among OECD member countries as a leader in

public administration and public sector reform.


45

Cabinet Operations Team Cabinet and Cabinet committee meetings are supported by a small team from the Cabinet Secretariat. The

Cabinet Operations team is responsible for helping plan the meetings, distributing papers to Ministers and, on

the day, ensuring the smooth operation of the meeting itself.

Prior to each Cabinet and committee meeting, the team coordinates the flow of information, including

circulation of business lists and associated documentation. For meetings they relocate to the Cabinet Suite

at Parliament House where they assist the official notetakers - PM&C officers responsible for documenting

the outcomes of meetings. Once the Cabinet Secretary has approved the minutes of a Cabinet meeting, the

Cabinet Operations team releases them to Cabinet Ministers and relevant departments for action.

Two roles within the Cabinet Secretariat deserve special attention. The first is the face of the Cabinet Operations

team during meetings: the Cabinet Attendant. The Cabinet Attendant is responsible for managing the logistics of

each meeting, from setting up the Cabinet Room, to helping secure the attendance of Ministers and officials.

The other is the Cabinet Liaison Officer, located within the Prime Minister’s office. The Cabinet Liaison

Officer supports the Prime Minister, Cabinet Ministers and committee members in relation to all Cabinet and

committee meetings through the provision of papers to the Prime Minister for Cabinet and committee meetings.

Working in the Cabinet Operations team offers an interesting insight to the inner workings of Government and

the opportunity to see the whole spectrum of Government process from the initial policy idea through to public

announcement and implementation.

Photo 2.14 The Cabinet Operations Team in the Cabinet Room at Parliament House.


46

Australian Public Service Policy Implementation NetworkThe Australian Public Service Policy Implementation Network (APS PIN) was established in 2011 in response

to Ahead of the Game: Blueprint for the Reform of Australian Government Administration, and seeks to transform

implementation practices and outcomes across the APS. The APS PIN is a group of 27 Deputy Secretaries, each

with significant implementation experience.

The APS PIN had a successful year in 2012–13. In November 2012 the APS PIN was showcased at the OECD’s

Public Governance Committee in Paris as a best practice example of practical innovation in implementation

and delivery. The valuable contribution of the APS PIN to the whole of government delivery agenda was

acknowledged when, for the first time, a PIN member with considerable experience implementing complex

projects joined a program board outside their area of policy expertise. Mr Simon Lewis, then Associate Secretary

at the Department of Defence, was brought onto the NDIS program board as a ‘critical friend’ and neutral expert.

The APS PIN met three times during the year to discuss themes of monitoring and early warnings, evaluation,

and delivery discoveries and challenges after crisis with guest speakers from the APS, the private sector, and

the ACT and New Zealand Governments. Three additional special sessions were held for APS PIN members to

workshop challenging live issues, and support senior officers responsible for implementation.

Photo 2.15 The APS PIN discuss how to effectively brief Ministers on implementation challenges and solutions.

The APS PIN will continue to help build APS capability in implementation by sharing their experience and

wisdom more broadly through learning group networks. This approach will see senior officers from different

portfolios meet together with a PIN member to share expertise across Government and promote greater

collaboration on implementation and delivery.


47

Corporate Services Division

The Corporate Services Division provides the key enabling functions to the Department and consists of the

Financial Management Branch, the Information Services Branch and the People, Capability and Performance

Branch. During 2012–13 we focused on delivering against the Capability Action Plan and on enhancing the

People and Leadership capabilities across the Department. We also enhanced our governance and reporting

arrangements and implemented integrated people, Information Technology (IT) and finance strategies to support

the Department now, and into the future.

Importantly, we worked with our stakeholders to enable the achievement of business outcomes. This included

strengthening our IT applications and infrastructure to provide greater flexibility for staff and to improve overall

productivity of the Department.

Further information on the functions of the Division is available in the Management and Accountability Section

at Part 3 of this report (on page 50).

Group of 20 Meeting 2014In November 2011 the Group of Twenty (G20) members decided that Australia would host the G20 forum in 2014.

This forum, which brings together 20 of the world’s most significant developed and emerging economies, has

been endorsed by the leaders of these economies as their premier forum for international economic cooperation.

Australia’s G20 presidency is a unique opportunity to influence global economic policy and to showcase Australia.

Since 1 December 2012 Australia has been a member of the G20 troika, and we have been working with Russia

(as the current president) and Mexico (as the previous year’s president) to deliver strong outcomes in 2013.

Australia’s G20 presidency begins on 1 December 2013.

Figure 2.8 KPIs for the G20 Taskforce

Group of 20 Meeting 2014 (Program component 1.1.4) Met


Ministers and the Parliamentary Secretaries, with the quality and timeliness of advice, briefing, activities

and/or support.

P

Satisfaction of other central agencies, portfolio departments and other key stakeholders with the cooperation

and collaboration of the Department.P

The successful promotion of Australia through the meeting outcomes and arrangements. P


G20 Taskforce

In 2012 the G20 Taskforce was established to oversee policy coordination and operational arrangements for

Australia’s G20 presidency and to coordinate Australia’s participation in the preparatory meetings for the

St Petersburg summit to be held in September 2013.

The Prime Minister announced on 11 July 2012 that the 2014 leaders summit would be held in Brisbane on

15–16 November at the Brisbane Convention and Exhibition Centre. With approximately 4,000 delegates and

3,000 domestic and international media expected to attend, this will be the largest meeting of world leaders

that Australia has hosted.


48

Throughout the year, the G20 Taskforce provided advice to the Prime Minister, the Cabinet and senior officials

on policy and operational matters, working closely with other Australian Government agencies, particularly

Treasury and DFAT. Within the Australian Government, governance arrangements are in place to provide

high-level direction and guidance of Australia’s G20 preparations. This includes a Secretary-level steering

committee comprising Commonwealth and Queensland state agency heads. Sub-committees on policy, security

and event coordination report directly to the steering committee.

In laying the groundwork for success in 2013 and 2014, the G20 Taskforce has worked closely with Russia and

other G20 members to achieve outcomes in 2013 that support growth and jobs, as well as to prepare the ground for

a productive agenda in 2014. Taskforce members attended Sherpa meetings in Russia in preparation for the G20

summit to be held in St Petersburg on 5–6 September 2013.

They also visited G20 members including Brazil, China, the European Union, France, Germany, Indonesia, the

United States and the United Kingdom to discuss policy priorities, with further visits to member countries to

follow. Taskforce members also participated in a number of outreach events, including the World Economic

Forum in Davos in January 2013 and the UN General Assembly thematic debate on global economic governance

in April 2013.

The taskforce consulted broadly with the business community, civil society, the labour movement and the

academic community and formalised Australian leadership arrangements for business and civil society groups to

contribute to G20 processes in 2013 and to lead these groups in 2014.

Detailed planning commenced for accommodation, venues, accreditation, media, information and communcations

technology (ICT), airports, transport and delegate liaison for the summit and preparatory meetings.

The G20 Taskforce has responsibility for overall security coordination for the host year, and is working closely

with State Governments, in particular the Queensland Government, to ensure the dignity and security of all

delegates throughout the year.


49

Australia and the G20 in 2013The G20 brings together 20 of the world’s largest economies to collaborate on global economic issues. The

key event in the G20 calendar is the leaders summit, which in 2013 took place in St Petersburg, Russia on

5–6 September. Underpinning this meeting of the world’s most influential political leaders is a year-long series

of discussions among finance ministers and central bank governors, senior officials and a range of groups

including international business (the ‘B20’), civil society (‘C20’), think-tanks (‘Think-20’), organised labour (‘L20’)

and youth (‘Y20’).

Australia will take over from Russia as host of the G20 on 1 December 2013. In preparation for this, PM&C’s G20

related activities started to ramp up in earnest from 1 December 2012, when Australia joined the G20 ‘troika’, with

past host Mexico and current host Russia. The troika members work together to assist the current host to manage

the agenda, conduct outreach with other countries, and ensure continuity in the G20’s activities.

The core priority for the G20 in 2013 has been boosting jobs and growth. Australia has been working closely

with Russia on this priority, which includes encouraging private sector investment and making financial

regulation more effective and transparent. Australia is working with Russia and other members to strengthen

the global economy by promoting sustainable, growth-supporting fiscal and monetary policy. We are supporting

Russia’s efforts to encourage open markets, resist protectionism and reform global financial institutions. Other

G20 priorities include development, anti-corruption, and energy policy to build shared prosperity.

Most of the issues tackled by the G20 are complex and progress can take time. The G20 is of great importance

to Australia because it gives us an unparalleled opportunity to help shape the world economy in a way that can

improve the lives of Australians and people around the world.

Photo 2.16 PM&C’s G20 Policy Team for 2013.

Part 3: Management and accountability

Corporate governance ......................................................................................................................................................51

External scrutiny ................................................................................................................................................................ 53

Management of human resources, work health and safety ...................................................................54

Purchasing ................................................................................................................................................................................64

Consultants ..............................................................................................................................................................................64

Advertising and market research ............................................................................................................................65

Grant Programs ....................................................................................................................................................................65

Ecologically sustainable development and environmental performance ................................. 66

PART 3: MANAGEMENT AND ACCOUNTABILITY

51

Corporate governance

Governance is the framework of relationships (people), structures (committees), systems, processes and culture

that supports the operations of an organisation. Good governance helps us achieve our outcomes. 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 in the achievement of our objectives, we have a number of committees. These are

outlined in Figure 3.1.

Figure 3.1 Departmental committees

Committee Purpose

Executive Leadership

Group (ELG)

Deals with management decisions and issues across PM&C. It considers strategic issues

impacting on the Department, including any ongoing or emerging risks, and monitors

performance in delivering outcomes.

Corporate

Management Group

Discusses key issues and priorities affecting corporate services.

Senior Management

Group

Discusses key business issues, including business priorities, key commitments and any

ongoing or emerging risks.

Audit Committee Provides independent assurance and assistance to the Secretary on PM&C’s risk, control and

compliance framework, and its external accountability responsibilities.

Security Committee Provides advice to the Secretary on actions to counter or manage security threats and

considers issues including ICT security policy, password policy changes, email security

classification, website blocking, security breaches, security incidents and investigations.

Finance and

Investment

Committee

Oversights and monitors the delivery of the Department’s Finance Strategy and provides

advice and assurance to the Secretary on all financial issues, including recommending annual

and forward budgets, and capital investment decisions for endorsement.

Information

Management

and Technology

Committee

Oversights and monitors the delivery of the Department’s Information Technology

Strategic Direction to 2016 and provides advice and assurance to the Secretary regarding

ICT management, operations and expenditure.

People and Leadership

Committee (PLC)

Provides strategic advice to the Secretary on integrating the Department’s people planning,

including leadership priorities and development within the Department’s strategic direction

and business priorities.

http://pmc-intranet/about-pmc/committees-meetings/executive-leadership-group

http://pmc-intranet/about-pmc/committees-meetings/executive-leadership-group

http://pmc-intranet/about-pmc/committees-meetings/corporate-management-group

http://pmc-intranet/about-pmc/committees-meetings/corporate-management-group

http://pmc-intranet/information-sheets/audit-protocols-audit-committee

http://pmc-intranet/about-pmc/committees-meetings/security-committee

http://pmc-intranet/about-pmc/committees-meetings/finance-and-investment-committee



http://pmc-intranet/about-pmc/committees-meetings/information-management-and-technology-committee




http://pmc-intranet/about-pmc/committees-meetings/people-and-leadership-committee

http://pmc-intranet/about-pmc/committees-meetings/people-and-leadership-committee


52

Figure 3.1 Departmental committees (continued)

Committee Purpose

Health and Safety

Committee

A sub-committee of the PLC that facilitates discussion and cooperation regarding work

health and safety (WH&S) issues and assists in the developing Health and Safety Management

Arrangements through consultation with all staff.

Consultative

Committee

A sub-committee of the PLC that provides a forum for management and employees to

discuss matters affecting the workplace. Employee representatives are elected from each

division to provide employees with an opportunity to contribute ideas and raise concerns

about our workplace.

Graduate Support

Group

A sub-committee of the PLC that ensures that the Graduate Development Program and

graduate recruitment strategy meet the Department’s needs, and facilitate communication,

consultation, cooperation and input from divisions and graduates on matters that affect the

graduate program.

Capability Review

Implementation

Committee

Monitors progress of implementation of the Department’s Capability Action Plan.

Risk management

A positive culture of risk management is a central element of our operations and key to our success in achieving

outcomes. Risk management within PM&C is not a stand-alone activity; it is an essential element of good corporate

governance and is integrated with the Department’s approach to all aspects of our business.

The Department’s risk management framework is consistent with the international standard ISO 31000:2009,

and outlines the Department’s approach to effective risk management providing the basis for integrating risk

management into everyday PM&C business activities. Risk is 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 2012–13 update was informed by feedback from

senior managers, outcomes from the Department’s annual internal audit program, as well as the views of the

Secretary, 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 2012–13 plan was approved on 9 November 2012.

Ethical standards

PM&C is strongly committed to promoting and maintaining the standard of behaviour outlined in the APS Values

and APS Code of Conduct, as set out in the Public Service Act 1999. The APS Values and APS Code of Conduct are an

integral part of the human resources framework and is part of the foundation of all HR policies and procedures.

http://pmc-intranet/about-pmc/committees-meetings/health-and-safety-committee

http://pmc-intranet/about-pmc/committees-meetings/health-and-safety-committee

http://pmc-intranet/about-pmc/committees-meetings/consultative-committee

http://pmc-intranet/about-pmc/committees-meetings/consultative-committee

http://pmc-intranet/about-pmc/committees-meetings/capability-review-implementation-committee




53

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

made aware of the APS Values and APS Code of Conduct.

We actively participated in the Ethics Contact Officer Network through regular attendance at network meetings.

The network plays a key role in supporting the ongoing work of the Ethics Advisory Service and provides best

practice advice on ethical matters.

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. Strategies for raising awareness and

fraud prevention as set out in the Fraud Control Plan 2012–14 continue to be implemented.

External scrutiny

External Audit

During 2012–13 the Australian National Audit Office (ANAO) undertook two audits involving the activities

of PM&C:

Control of Credit Card Use – This was a cross portfolio audit of the Australian Trade Commission, PM&C and

Geoscience Australia. The audit objective was to assess whether Australian Government agencies were effectively

controlling the use of credit cards for official purposes. The report found that all agencies had generally satisfactory

arrangements in place to control the use of credit cards for official purposes. The incidence of misuse in the sample

of credit card transactions examined by the ANAO was very low, and the audited agencies’ controls were effective

in identifying such misuse, with evidence of follow-up action where necessary.

In relation to the Department specifically, the report referenced the nearly 30 per cent of transactions that were

acquitted outside the Department’s required timeframe. The Department’s credit card acquittal timeframe is

the result of a management decision that enables the expenses to be recorded against the relevant areas of the

Department for month end reporting. In setting a tight timeframe that in the majority of cases, the cardholder,

their supervisor and the card acquitting officer can meet, there was the expectation that it would not be met in

all cases. The Chief Financial Officer is actively managing late acquittal which has resulted in an improvement in

timely acquittals. The Department has also enhanced its controls in the areas highlighted by the ANAO, including

through the addition of an explicit reference to reporting obligations on disputed or fraudulent transactions on the

acknowledgement form signed by new cardholders.

Administration of Government Advertising Arrangements: August 2011 to March 2013 – This was a cross portfolio audit

of PM&C, the former Department of Climate Change and Energy Efficiency; the Department of Broadband,

Communications and the Digital Economy; the Department of Families, Housing, Community Services and

Indigenous Affairs; and the Department of Finance and Deregulation. The audit objectives were to assess the

effectiveness of the agencies’ administration in developing advertising campaigns and implementing key

processes against the requirements of the Australian Government’s campaign advertising framework, and other

key legal and administrative requirements; as well as the ongoing administration of the campaign advertising

framework. There were no findings specific to the Department.


54

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.

However, we responded to a challenge by the applicant in Spencer v Commonwealth of Australia & Anor (ACD24/2007)

to discovery given by the Commonwealth in those proceedings (see page 36).

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. In 2012–13

16 external review requests were made to the AIC and there were no complaints. Four external review requests

were finalised during 2012–13 as follows (case citations included where a decision was published by the Office of

the AIC):

• One decision of the Department was set aside and the AIC substituted a new decision. The Department’s

decision had refused access to two documents. The AIC’s substituted decision gave access to those two

documents, with redactions to one of the documents. The redactions were of material not within the scope of

the applicant’s request (Parnell and Department of the Prime Minister and Cabinet [2012] AICmr 31 (22 November 2012)).

• One decision was affirmed to refuse access to documents under section 24(1) of the FOI Act. The AIC was

satisfied that a practical refusal reason existed, specifically that the work involved in processing the request

would substantially and unreasonably divert the resources of the Department from its other operations

(Davies and Department of the Prime Minister and Cabinet [2013] AICmr 10 (22 February 2013)).

• Two review requests were withdrawn by the applicant under section 54R of the FOI Act.

One complaint (lodged in 2011–12) was finalised during 2012–13 relating to a delay in responding to an FOI request.

The FOI Commissioner was not inclined to make any particular findings in relation to the handling of the request

other than to note that the Department’s handling of the request was deficient and to monitor the Department’s

performance regarding timeliness in any future complaints to the Office of the AIC.

Management of human resources, work health and safety

Our people

As at 30 June 2013 we had a total of 587 employees engaged in ongoing functions, down from 602 employees as at

30 June 2012. A further 131 staff were employed in associated functions, most notably the G20 Taskforce. There

were also 80 inoperative staff, up from 68 in the previous year. These figures are based on headcount and include

part-time and non-ongoing employees. Further information is provided at Figure 3.2.

We continue to have a diverse workforce, and of the 587 staff employed in ongoing functions, approximately

62.3 per cent are female and 77 per cent are under 45 years. Further information is provided in the human resources

workforce profile at Figure 3.3.

The Australian Public Service Commission’s (APSC) Capability Review recommended that the Department take

a strategic approach to recruitment and people development in order to build the workforce of the future. We

have worked collaboratively across business areas to integrate workforce planning into the Department’s broader

strategic business and financial planning. This work will continue into 2013–14 and include the finalisation of an

agency Workforce Plan.


55

To ensure that we continue 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.

Figure 3.2 Staff distribution figures (based on headcount)

PM&C functions Number of staff at 30 June 2012 Number of staff at 30 June 2013

Ongoing functions 602 587

Associated functions 501 1312

Inoperatives3 68 80

Total 720 798

Notes:

1 This figure for 2011–12 includes three staff from the Australia in the Asian Century Taskforce; three staff from the

Commonwealth Heads of Government Meeting (CHOGM) 2011 Taskforce; nine staff from the NDIS Taskforce;

28 staff from the COAG Reform Council and seven staff employed for the support of former Governors-General. 2 This figure for 2012–13 includes three staff from the Australia in the Asian Century Taskforce; 86 staff from the G20

Taskforce; 11 staff from the NDIS Taskforce; 24 staff from the COAG Reform Council; and seven 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.


56

Figure 3.3 Workforce profile (based on headcount)

Workforce profile1

At June 2012 At June 2013

Ongoing Non-ongoing Total Ongoing Non-ongoing Total

Job classification

Secretary 1 0 1 1 0 1

Special Adviser 1 0 1 0 0 0

SES Band 3 8 0 8 7 0 7

SES Band 2 16 0 16 17 0 17

SES Band 1 40 0 40 42 0 42

EL2 114 1 115 113 6 119

EL1 184 2 186 216 18 234

APS4–6 272 18 290 316 22 338

APS1–3 15 3 18 15 1 16

Graduate 45 0 45 24 0 24

Total 696 24 720 751 47 798

Location

ACT 664 21 685 718 28 746

NSW 28 2 30 25 1 26

QLD 1 0 1 6 17 23

VIC 3 1 4 2 1 3

Other jurisdictions 0 0 0 0 0 0

Overseas 0 0 0 0 0 0

Total 696 24 720 751 47 798

Staff age profile

Age < 25 37 6 43 44 5 49

Age 25 – 34 315 10 325 333 16 349

Age 35 – 44 189 2 191 212 14 226

Age 45 – 54 114 4 118 113 6 119

Age 55 – 64 36 2 38 43 5 48

Age 65 + 5 0 5 6 1 7

Total 696 24 720 751 47 798

Equal employment opportunity group participation and workplace arrangements

Female 429 19 448 474 26 500

Non-English speaking background 40 0 40 22 0 22

Indigenous 6 0 6 6 0 6

People with a disability 15 0 15 15 0 15

Working part time 45 2 47 67 2 69

Employees volunteering personal data 80% 85%

Notes:

1 Figures include staff employed in ongoing and associated functions and staff who are inoperative.


57

Developing our staff

In 2012–13 we made a significant investment in developing the capability and capacity of our employees by:

• continuing to target and tailor recruitment to attract outstanding candidates at all levels from the public, private

and not-for-profit sectors and academia

• improving the Department’s Performance Culture Framework

• aligning our learning and development to core competencies for our Department to ensure we have highly

qualified and capable employees

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

employees

• embedding the PM&C ‘Craft’ into the Department’s Capability Development Framework

• providing a range of health and wellbeing programs and a school holiday program to provide employees with a

balance between work and personal life.

These initiatives are helping our staff to continue to deliver high-quality policy advice and government

administration to support the Prime Minister, the Cabinet and our Portfolio Ministers, including the Cabinet

Secretary and the Parliamentary Secretary.

Recruitment

In 2012–13 there was an increase in recruitment by PM&C (compared to 2011–12) due to the establishment of a

Taskforce to support the G20 meeting in November 2014.

We also implemented our first Recruitment and Retention Strategy in early 2013. The Strategy has been developed

to position the Department as an employer of choice, to help attract and retain quality staff and to help ensure we

are appropriately resourced to respond to the needs of the Government. The purpose of the strategy is to deliver

transparent, merit based selection processes (that include a high level of candidate care) and to reduce turnover

while retaining quality staff, thereby reducing the number of recruitment processes required.

The continuation of targeted recruitment programs such as the Graduate Program, Vacation Employment

Program and the APSC Indigenous Pathways Graduate Program has also assisted us in ensuring we have a more

diverse workforce.

Performance culture

The Performance Management Development Scheme (PMDS), underpinned by a new Performance Culture

Framework and specified core competencies, outlines our approach to managing and enhancing the performance

of our employees. The PMDS allows us to understand and achieve our business outcomes and manage performance

to align our role to support our key stakeholders.

Following an extensive review of performance management, the Performance Culture Framework and PMDS

were changed to include a new performance indicator, ‘behaviours’. This ensures a strong focus on not only what

we do but how we do it. Both indicators are rated with equal importance when assessing an employee’s overall

performance.


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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 2012–13 our capability development

activities were guided by the results of the Capability Review. Key action items were implemented throughout

the year, including a revised induction program, mentoring, coaching, an increased focus on developing people

management skills and building the PM&C ‘Craft’ into the Capability Development Framework.

The capability development initiatives addressed a number of development areas: leadership and management;

core and foundation skills development; mandatory training; and graduate development. Our employees attended

a range of development opportunities throughout the year, including:

• formal training and structured learning

• secondment, taskforce and cross-agency project work

• on-the-job learning, mentoring and coaching

• a series of seminars addressing key issues.

Eligible employees in PM&C can apply for the Department’s Study Assistance Scheme. A total of 119 employees

accessed this scheme this year, enabling them to undertake formal courses of study relevant to their work and the

work of the broader APS. A total of 70 employees (SES and non-SES) also accessed the Career Advisory Service

throughout the financial year, a service that provides employees with advice on leadership, team management and

career development planning.

To address core and professional capability requirements, we continued to foster our relationship with the

Australian National University through participation in leadership programs facilitated by the National Security

College and through the Crawford School at the Australian National Institute of Public Policy, HC Coombs Policy

Forum and the Australia and New Zealand School of Government (ANZSOG), as well as offering a range of other

programs. We also participate in programs to enhance public sector governance through our relationships with

the ANZSOG Institute of Governance at the University of Canberra and the Institute of Public Administration

Australia.

Customised in-house writing and policy programs were also developed to enhance the capability of our staff.

These programs were well attended and provided valuable insight through co-facilitation by senior departmental

officers and external facilitators. Additionally, an in-house program to develop coaching capability to enhance on

the job learning was initiated, with sessions being held in May and June 2013.

Selected high potential employees from the Department were given the opportunity to participate in a range of

leadership events and programs. These benefit the Department through the development of individual knowledge

and skills as well as the creation of professional networks and the insight gained into new ideas and concepts

being generated across government and the private sector.

Many of our employees also attended the Secretary’s Seminar Series to gain insight from national and

international experts on a range of current issues, including leadership, gender equity and government integrity.


59

Implementation of PM&C Capability ReviewIn 2011–12 we underwent a formal, independent capability review by an external senior team as part of the

broader APS Capability Review Program. The review found that PM&C is an organisation comprising quality

people who are self-motivated and committed to advising and supporting the Prime Minister and the Cabinet.

A number of strengths were identified, along with four areas for improvement: broadening leadership through

collaboration; enhancing strategy and delivery through the PM&C ‘Craft’; building the workforce of the future;

and strengthening the Department’s foundation of governance and corporate infrastructure.

During 2012–13 we worked to implement the findings of the capability review. Our Capability Action Plan

(the Action Plan) was released in October 2012. The Action Plan identified 11 key areas for us to take action on.

Each has been assigned an Executive champion who takes the lead in coordinating implementation across the

Department; progressing specific activities and providing input and ideas.

We also established a Capability Review Implementation Committee to monitor progress of implementation

of the Action Plan and to provide regular reports to the Executive as well as approve the quarterly reports to

the APSC.

Some examples of implementation measures carried out in 2012–13 include: refocusing induction training to

address ‘what we do’ and ‘how we do it’; promoting coaching and mentoring training to all EL and SES staff;

and incorporating the PM&C ‘Craft’ into the Department’s business planning arrangements.

Employment Programs

Graduate program

Recruitment for the 2013 Graduate Development Program (GDP) was undertaken from March to July 2012,

resulting in 1,152 applications received from a variety of academic and employment backgrounds. A total of

24 graduates were employed for the 2013 GDP, including one Indigenous graduate, who was recruited through the

APS Indigenous Pathways Program coordinated by the APSC.

Providing exposure to the major issues of government in a rewarding, supportive and challenging environment,

the 2013 GDP offers graduates the opportunity to participate in two job rotations within the Department.

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, graduates undertake 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 are provided with opportunities to gain exposure to the broader APS through initiatives such as central

agency networking functions, APSC networking functions and participation in the APSC Great Graduate Debate.

Vacation employment program

In November 2012 we welcomed nine 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 the Department 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.


60

EL2 secondment program

In 2012–13 the Department initiated a 12 month EL2 secondment program to provide high potential EL2 staff from

other APS agencies with the opportunity to undertake a placement in the Department. A total of 18 nominations

were received from across nine agencies, and six employees were selected for placement.

Internal mobility program

In 2012–13 an Internal Mobility Program was piloted in the Department. The program provides high performing

employees with opportunities to enhance their development and career aspirations whilst encouraging them to

stay with the Department. Nominations were received from 17 staff, and four were selected and placed in their

preferred division for the 12-month program.

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 former Department of Climate Change and

Energy Efficiency. The program aims to raise the profile of a public sector career path for Australian post-graduates

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 to work as non-ongoing employees for up to nine months. The program strengthens our relationship

with external experts and provides a development experience for the individuals involved. In 2012–13 one

non-ongoing secondee was placed in the Strategy and Delivery Division (SDD) under the PM&C industry

secondment program.

The first secondee under the Eidos Institute Secondment Program was also placed in SDD. Under this program,

secondees are drawn from research institutions affiliated with the Eidos Institute – an independent collaborative

think tank – to undertake three month secondments. Secondees are postdoctoral fellows or early career academics

in disciplines identified as relevant to the project work of the Department.

Diversity

We have continued to focus on diversity issues and implement key initiatives from the Workplace Diversity

Strategy 2011–14 and the Reconciliation Action Plan 2011–13 to improve diversity outcomes for key diversity

cohorts, including Aboriginal and Torres Strait Islander people and people with disability.

In 2012–13 we:

• supported the Secretary in his role as a Male Champion of Change - the Male Champions of Change program

aims to use the champions’ individual and collective influence and commitment to ensure the issue of women’s

representation in leadership is elevated on the national business agenda

• supported the Secretary in his role of Chair of the APS Diversity Council and worked closely with

Commonwealth agencies to bring visibility to diversity issues, share best practice and monitor performance

• worked with our PM&C Diversity Champion and Executive Indigenous Champion to support our diversity

cohorts and promote diversity outcomes across the Department


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International Women’s DayOn International Women’s Day 2013 the Secretary launched the PM&C Women’s Network, a group that will

provide opportunities to examine the issues facing women in PM&C and the APS more broadly, and share

practical experience in navigating a successful and satisfying APS career. The network, which was initially

proposed by a staff member, will offer genuine support and encouragement to all women in the Department.

Photo 3.1 The Secretary opening PM&C’s International Women’s Day event on 8 March 2013.

PM&C has played an important role in paving the way for women’s representation in leadership roles across

the APS. Within the Department there is a high representation of female leaders, 45.7 per cent of the Senior

Executive Service (SES) and 62 per cent of the Department as a whole are women, which is above the State of the

Service Report 2011–12 averages of 39 per cent and 57 per cent, respectively.

The highest representation of women in the Department is at the Executive Level 1 (EL1) level. The only

classification where there are more men than women is at the SES Band 1 level. We have a long and proud

tradition of supporting and promoting women in the workplace, and these statistics reflect that commitment.

As a Male Champion of Change, the Secretary is committed to improving the representation of women in the

public service, especially in leadership positions. The Secretary and senior leaders in the Department continue to

encourage and support those who aspire to leadership positions to achieve it, regardless of gender.

As part of the Male Champions of Change program, the Secretary is actively involved in working toward

ensuring staff returning from parental leave are not adversely affected by their time away from work.

The overall aim is to examine some of the barriers women have to equality in the workforce and equal

representation in leadership, to come up with practical responses that can be employed within the Department,

and to share these strategies with others.


62

• continued our Gold membership with the Australian Network on Disability

• collaborated with staff to develop our Reconciliation Action Plan 2013–15 launched in July 2013

• celebrated events, including International Women’s Day, National Families Week, National Reconciliation

Week, National Aboriginal and Islander Day Observance Committee (NAIDOC) Week and the International

Day of People with Disability.

The PM&C Women’s Network was launched by the Secretary on International Women’s Day on 8 May 2013. The

Women’s Network has been established to help all members to fully develop their professional capabilities and

support women’s leadership within the Department and across the APS.

The PM&C Indigenous Employee Network was launched by the Secretary and the Executive Indigenous Champion

during 2013 National Reconciliation Week celebrations to consult on matters important to Aboriginal and Torres

Strait Islander employees. The purpose of the network is to provide support to its members, offer strategic advice

to the Department on workplace and workforce issues impacting on our Aboriginal and Torres Strait Islander

employees, as well as to promote cultural awareness opportunities.

The new National Disability Strategy 2010–20 sets out a ten year national policy framework to improve the lives

of people with disability, promote participation and create a more inclusive society. Agency level information on

people with a disability can be found at www.dss.gov.au. More detail on social inclusion matters generally can be

found at www.socialinclusion.gov.au.

Work health and safety

An online training module was created to train all employees on their WH&S responsibilities. The module forms

part of the induction process for new starters.

The Health and Safety Committee was formed in accordance with the Work Health and Safety Strategy 2012–14

and membership includes management and health and safety representatives from across the Department.

A number of early intervention strategies were used throughout 2012–13 to minimise potential health and safety

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

• access to an information and resource service which assists employees to balance their work and personal life,

providing information on dependent care, locating home help, pet care and other health or wellbeing services

• an on-site school holiday care program run by the YMCA

• access to vaccination against the influenza virus

• various health programs, such as exercise classes and yoga

• an intranet page that provides information on PM&C’s family-friendly policies and initiatives

• an on-site carers/reflection room.

First Aid Officers and Harassment Contact Officers are located throughout premises occupied by the Department

to ensure immediate assistance is available when needed.

Consistent with the requirements of section 38 of the Work Health and Safety Act 2011 (WHS Act), there was one

notification to Comcare of an injury or dangerous incident during the year. There were no directions or notices

issued to the Department under the WHS Act (sections 70, 85, 90, 191, 195 and 198).

http://www.fahcsia.gov.au

http://www.socialinclusion.gov.au


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Employment arrangements

Workplace arrangements

Our employees continued to work under the PM&C Enterprise Agreement 2011–14 (EA). Figure 3.4 sets out the data

on employment arrangements.

Figure 3.4 Trends in employment agreements

Agreements 2011 2012 2013

SES – Section 24(1) determination (S24)1 76 64 66

Non-SES – Enterprise Agreement1 1 014 654 731

Total2 1,089 7183 797

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.

Additional information on remuneration is set out in Figure 3.5. Information on executive remuneration is

outlined in the financial statements on page 126.

Figure 3.5 Trends in base salary

Trends at 30 June

2011 2012 2013

Min Max Min Max Min Max

APS 1–3 39,685 55,057 41,272 57,259 42,304 58,691

APS 4–6 56,845 88,900 59,119 92,456 60,597 94,767

EL1 92,806 113,122 96,518 117,647 98,931 120,588

EL2 108,019 136,145 112,340 141,591 115,148 145,131

SES Band 1 139,050 182,080 139,256 204,455 148,227 209,566

SES Band 2 187,500 221,728 210,000 237,026 215,250 240,875

SES Band 3 249,000 298,700 273,900 388,498 250,000 348,434

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

Productivity gains

We worked towards achieving a range of productivity initiatives throughout the year to enhance our ability to

deliver high-quality, responsive support and advice to the Prime Minister, the Cabinet and our Portfolio Ministers,

including the Cabinet Secretary and the Parliamentary Secretary. Through innovative development of people,

structures and processes, the aim is to deliver results that will improve our collective and individual productivity.


64

We introduced enhancements to our Human Resource (HR) systems to streamline processes, including:

• the implementation of a single point of contact HR helpdesk to provide consistent, timely and accurate advice

to employees

• an increased focus on customer service

• the introduction of an online learning management system

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

Performance bonuses

Performance bonuses were phased out in the Department in 2010 and none were paid to our employees in 2012–13.

Purchasing

Our procurement policies and practices reflect the principles set out in the Commonwealth Procurement Rules

(CPRs). We focus on:

• value for money

• encouraging competition

• the efficient, effective, economical 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 2012–13 we published details of:

• publicly-available business opportunities with a value of $80,000 or more on AusTender www.tenders.gov.au

• actual contracts awarded with a value of $10,000 or more on AusTender www.tenders.gov.au

• actual contracts with a value of $100,000 or more on our website www.dpmc.gov.au, as required by

Senate Order 192.

All major contracts for activities previously performed in-house included a requirement for contractors to allow

access to their premises by the 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 2012–13 that were exempt

from being reported on AusTender.

Consultants

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, information or creative solutions to

assist in the Department’s decision making.


65

Prior to engaging consultants, the Department takes into account the skills and resources required for the task,

the skills available internally and the cost-effectiveness of engaging external expertise. The decision to engage a

consultant is made in accordance with the CPRs and relevant internal policies.

The Department is required to report on AusTender consultancy contracts awarded where the contract value is

$10,000 or more. Please refer to the AusTender website at www.tenders.gov.au.

In 2012–13 we spent a total of $2,287,557 on consultancies: $1,048,514 on (11) existing consultancies and $1,239,043

on (39) new consultancy contracts. Details of trends in consultancies are shown in Figure 3.6. The increase in

expenditure on consultancies in 2012–13 (compared to 2011–12) is a result of work required for Australia’s hosting of

the G20 in 2014.

Figure 3.6 Trends in consultancies

Consultancies 2010–11 2011–12 2012–13

Number of existing consultancies 6 5 7

Number of new consultancies 26 33 37

Total consultancies 32 38 44

Total expenditure $4.21m $1.76m $2.29m

Advertising and market research

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 2012–13 PM&C spent a total of $56,377 on the placement of advertising for recruitment services and state

funeral notices.

Grant Programs

In 2012–13 PM&C continued to administer the following grant programs:

• National Australia Day Council

• Australiana Fund

• Volunteer Management Program.

Further information on grants awarded by the Department during the period 1 July 2012 to 30 June 2013 is

available at www.dpmc.gov.au.


66

Ecologically sustainable development and environmental performance

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))

• 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 our Environmental Policy Statement we are committed to each of the five principles of sustainable

development (integration, precaution, intergeneration, biodiversity and valuation) identified in the EPBC

Act, where they apply to our operations. In 2012–13 we continued to mitigate the effects of our impact on the

environment by:

• conserving energy, water, paper and other natural resources while still providing a comfortable working

environment

• minimising waste through recycling and using recycled products and materials wherever practical

• preventing and minimising pollution from our activities

• providing an environmentally sound workplace and progressively implementing a range of environmentally

sound work practices

• including environmental impacts in our purchasing policies where appropriate

• complying with all relevant Australian Government, State and Territory environmental legislation,

regulations, policies and initiatives

• fostering an environmentally responsible culture throughout the Department and encouraging staff to develop

new ideas and initiatives

• using TelePresence facilities for many of our meetings with the State and Territory Governments

• encouraging the use of double-sided printing

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

• supporting the use of recycled paper and recycling systems

• communicating our environmental commitments to staff and the public.


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Environmental Performance

During 2012–13 we continued to demonstrate environmental responsibility by minimising the negative effects we

have on the environment in the areas of energy efficiency, waste and water (refer to Figure 3.7). This includes:

• implementing our Environmental Management System (EMS), based on the Australian Standard AS/NZS

ISO 14001, and conducting regular reviews of the EMS

• maintaining a National Australian Built Environment Rating System rating of 4.5 stars for whole building

energy and achieving a five star rating for base building energy and water

• holding monthly Building Management Committee meetings in line with our Green Lease obligations and

quarterly Environmental Committee meetings to review energy usage and analyse consumption

• continuing to provide staff with environmental awareness material through the Go Green @ One National

campaign

• engaging UGL Services to complete a carbon footprint report for 2012–13

• introducing timed lighting in the car park at One National Circuit

• changing to LED lighting in external lights and in the foyer of One National Circuit

• regularly monitoring levels of waste recycling

• supporting the use of electronic solutions (i.e. iPads) to reduce paper usage

• commencing desk side recycling bins to replace waste baskets

• continuing to use a 70,000 litre rainwater tank to flush toilets and water gardens

• introducing new recycling and waste bins in the café

• introducing new drought tolerant plants to the One National Circuit gardens.


68

Figure 3.7 Impact of Department’s operations on the environment

Performance measure Indicator(s) 2011–12 2012–13 % change

Energy efficiency

Total consumption of

energy

Energy usage at One National Circuit – tenant

light and power (kWh)

1,868,312 1,801,529 3.57 % reduction

Base building electricity (kWh) 731,113 751,794 2.82 % increase

Natural gas consumption (GJ) 2,056 2,418 17.61 % increase

Total consumption of

green energy

Green energy usage at One National Circuit

(kWh)

186,831 180,152 3.57 % reduction

Carbon dioxide

emissions

Amount of CO2 produced (tonnes) 4,601 4,302 6.5 % reduction

Relative energy uses Percentage of green energy in total usage (%) 10 10 unchanged

Amount of total energy purchased/consumed

(kWh per employee)

3000.206 2220.791 25.98 % reduction

Waste

Total waste production Amount of waste produced (tonnes) 96.26 100.12 4.0 % increase

Un-recyclable waste

production

Amount of waste going to landfills (tonnes) 5.05 6.57 30.1 % increase

Recyclable waste

production (excluding

office paper)

Amount of waste going to recycling facilities

(tonnes)

91.21 93.55 2.57% increase

Paper waste production Amount of waste paper going to recycling

facilities (tonnes)

71.2 78.6 10.39 % increase

Relative waste

production

Amount of the total waste (tonnes per employee) 0.14 0.13 7.14 % reduction

Water

Consumption of water2 Amount of water purchased/consumed (kL) 4721 9196 94.8 % increase

Notes:

1 A colder winter period in 2012–13 resulted in increased boiler operation.2 Mains water consumption is supplemented by a 70 kL rain water tank which services the toilets and irrigation

systems at One National Circuit.

Part 4: Financial Statements

How we are funded ............................................................................................................................................................70

Key results in 2012–13 ........................................................................................................................................................70

Independent Auditor’s report ..................................................................................................................................... 76

Statement by the Chief Executive and Chief Financial Officer .......................................................... 78

Financial statements .......................................................................................................................................................... 79

Index to the notes to and forming part of the financial statements ................................................92


70

How we are funded

Parliament, via the Appropriation Acts, provides PM&C with two types of funding: departmental and

administered.

PM&C uses departmental resources to deliver services (programs). We also administer payments, revenues and

other resources on behalf of 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 2012–13 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 2012–13 estimated actuals published in the 2013–14

Portfolio Budget Statements. Items are shown by outcome and program. For example Program 1.1 refers to

Outcome 1, program 1.

Key results in 2012–13

PM&C received an unqualified audit report on the 2012–13 financial statements from the Australian National

Audit Office.

PART 4: FINANCIAL STATEMENTS

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Departmental finances

Income decreased from $207.9 million in 2011–12 to $148.0 million in 2012–13. This decrease in funding mainly

reflects the effect in the prior year of the successful delivery of the Commonwealth Heads of Government

Meeting (CHOGM) 2011, the part year impact of hosting the arts and sports function, partially off-set by the

increase in activity from the G20 Taskforce.

The Department finished the 2012–13 financial year with a $7.6 million deficit. After removing the $7.9 million

impact of non-appropriated depreciation and amortisation expense, the Department ended the year with a

$0.3 million surplus.

2012–13 2011–12 Change

$’m $’m $’m

TRENDS IN DEPARTMENTAL FINANCES

Revenue from Government 121.0 171.4 (50.4)

Other revenue 27.0 36.5 (9.5)

Total income 148.0 207.9 (59.9)

Employee expenses 88.3 109.6 (21.3)

Supplier expenses 58.0 98.1 (40.1)

Other expenses 9.3 10.7 (1.4)

Total expenses 155.6 218.4 (62.8)

Deficit attributed to the Australian Government (7.6) (10.5) 2.9

Plus non-appropriated depreciation and amortisation expense 7.9 8.2 (0.3)

Surplus (deficit) attributable to the Department 0.3 (2.3) 2.6

Financial assets A 19.3 24.9 (5.6)

Non-financial assets B 40.5 41.6 (1.1)

Liabilities C 39.7 39.2 0.5

Net assets (A+B-C) 20.1 27.3 (7.2)


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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; management of the national compact with not-for-profit organisations,

philanthropy and volunteering program; management of the Parliament House Briefing Room and

compensation and legal expenses.

Expenses administered on behalf of the Government decreased from $616.5 million in 2011–12 to $15.9 million in

2012–13 primarily reflecting the transfer of the arts and sport functions to Department of Regional Australia,

Local Government, Arts and Sports (DRALGAS) during 2011–12.

2012–13 2011–12 Change

$’m $’m $’m

TRENDS IN ADMINISTERED FINANCES

Other revenue 0.1 2.7 (2.6)

Total income 0.1 2.7 (2.6)

Supplier expenses 5.4 9.6 (4.2)

Grant expenses 8.9 152.1 (143.2)

Other expenses 1.7 2.8 (1.2)

CAC Act body payments - 451.9 (451.9)

Total expenses 15.9 616.5 (600.6)

Financial assets 1.2 1.0 0.2

Non-financial assets 1.8 1.9 (0.1)

Liabilities 13.9 14.9 (1.0)


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Figure 4.1 PM&C resource statement

Actual available

appropriation

for 2012–13

Payments

made

2012–13

Remaining

balance

2012–13

$’000 $’000 $’000

(a) (b) (a)-(b)

Ordinary annual services1

Departmental appropriation2 159,794 157,117 2,677

Total 159,794 157,117 2,677

Administered Expenses3

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. 16,502 15,917

Total 16,502 15,917

Total ordinary annual services A 176,296 173,034

Other services

Administered expenses

Specific payments to States, ACT, NT and Local government - -

Total - -

Departmental non-operating4

Equity injections 9,600 - 9,600

Total 9,600 - 9,600

Administered non-operating

Administered assets and liabilities - 129

Total - 129

Total other services B 9,600 129

Special appropriations - -

Total special appropriations C - -

Total appropriation excluding special accounts 185,896 173,163

Special accounts5 - - -

Total special accounts D - - -

Total resourcing

A+B+C+D 185,896 173,162

Less appropriations drawn from annual or special appropriations

above and credited to special accounts and/or CAC Act bodies

through annual appropriations - -

Total net resourcing for PM&C 185,896 173,162


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1 Appropriation Act (no.1) 2012–13. This includes prior year appropriations and s31 relevant agency receipts. Further details

refer to Note 29 to the financial statements.

2 Includes an amount of $2.867m in 2012–13 for the Departmental Capital Budget. For accounting purposes this amount

has been designated as ‘contributions by owners’.

3 Includes an amount of $0.243m in 2012–13 for the Administered Capital Budget. For accounting purposes this amount

has been designated as ‘contributions by owners’.

4 Appropriation Act (No.2) 2012–13.

5 Does not include ‘Special Public Money’ held in accounts like Other Trust Monies accounts (OTM). Services for other

Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys special accounts

(SOETM).

Figure 4.2 Expenses by outcome and program

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.

Budget* Actual expenses Variation

2012–13 2012–13 2012–13

$’000 $’000 $’000

(a) (b) (a) - (b)

Program 1.1: Prime Minister and Cabinet


Ordinary annual services (Appropriation Bill No. 1) 14,940 15,917 (977)

Departmental expenses


Expenses not requiring appropriation in the Budget year2 10,782 10,167 615

Total for Program 1.1 173,659 171,469 2,190

Outcome 1 Totals by appropriation type


Ordinary annual services (Appropriation Bill No. 1) 14,940 15,917 (977)

Departmental expenses


Expenses not requiring appropriation in the Budget year2 10,782 10,167 615

Total expenses for Outcome 1 173,659 171,469 2,190

Average staffing level (number) 698 689 9

* Full year budget, including any subsequent adjustment made to the 2012–13 Budget.

1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from

independent sources (s31)’.

2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense,

make good expense, audit fees and secondees.


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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 cashflow statement: 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.


76

Independent Auditor’s report


77


78

Statement by the Chief Executive and Chief Financial Officer


79

STATEMENT OF COMPREHENSIVE INCOME

for the period ended 30 June 2013

2013 2012

Notes $’000 $’000

EXPENSES

Employee benefits 3A 88,288 109,586

Supplier 3B 58,005 98,139

Grants 3C 915 2,257

Depreciation and amortisation 3D 7,938 8,170

Finance costs 3E 9 7

Losses from asset sales 3F 397 248

Total expenses 155,552 218,407

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 4A 25,169 32,182

Total own-source revenue 25,169 32,182

Gains

Resources received free of charge 4B 1,823 4,247

Reversals of previous asset write-downs and impairment 4C - 96

Total gains 1,823 4,343

Total own-source income 26,992 36,525

Net cost of services 128,560 181,882

Revenue from Government 4D 120,962 171,368

Deficit attributable to the Australian Government (7,598) (10,514)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to profit or loss

Changes in asset revaluation surplus 5A 56 -

Total comprehensive income (loss) attributable to the Australian Government (7,542) (10,514)

Note: The decrease in total expenses between 2012 and 2013 is due to three significant changes. Functions relinquished

to other Government agencies as part of the Administrative Arrangements Order. Further details of these functions are

described in Note 10. 2012 expenses include the delivery of the Commonwealth Heads of Government Meeting (CHOGM)

in December 2011. 2013 expenses include initial planning for the 2014 Group of 20 (G20) summit. Further details of this

expenditure is provided in Note 13.

The above statement should be read in conjunction with the accompanying notes.


80

BALANCE SHEET

as at 30 June 2013

2013 2012

Notes $’000 $’000

ASSETS

Financial assets

Cash and cash equivalents 6A 927 2,640

Trade and other receivables 6B 17,019 16,906

Accrued revenue 6C 1,310 5,378

Total financial assets 19,256 24,924

Non-financial assets

Property, plant and equipment 7A 31,124 34,517

Intangibles 7C 5,367 5,795

Other non-financial assets 7E 4,013 1,310

Total non-financial assets 40,504 41,622

Total assets 59,760 66,546

LIABILITIES

Payables

Suppliers 8A 4,721 7,687

Grants 8B 528 399

Other payables 8C 3,974 3,487

Total payables 9,223 11,573

Provisions

Employee provisions 9A 23,663 21,918

Other provisions 9B 6,817 5,719

Total provisions 30,480 27,637

Total liabilities 39,703 39,210

Net assets 20,057 27,336

EQUITY

Contributed equity 6,790 6,527

Reserves 8,231 8,175

Retained surplus 5,036 12,634

Total equity 20,057 27,336



81

STATEMENT OF CHANGES IN EQUITY


R

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gs

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et r

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on

surp

luse

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ibut

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20

1320

1220

1320

1220

1320

1220

1320

12

$’

00

0$’

00

0$’

00

0$’

00

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00

0$’

00

0$’

00

0$’

00

0

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enin

g ba

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ance

car

ried

forw

ard

from

pre

vio

us p

erio

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,634

23,14

88,

175

8,17

56,

527

158,

119

27,3

3618

9,44

2

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d op

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lan

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,634

23,14

88,

175

8,17

56,

527

158,

119

27,3

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9,44

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wit

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wn

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:

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(Not

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)-

--

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140

)-

(157,

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--

--

(4,3

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--

-1,7

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563

1,70

056

3

Dep

artm

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Bud

get (

DC

B)

--

--

2,86

74,

985

2,86

74,

985

Sub-

tota

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s with

ow

ners

--

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263

(151,5

92)

263

(151,5

92)

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at 3

0 J

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5,0

36

12,6

34 8

,231

8,

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6,7

90

6,52

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57

27,3

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bal

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att

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the

Aus

tral

ian

Gov

ernm

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5,0

3612

,634

8,23

18,

175

6,79

06,

527

20,0

5727

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1 The

retu

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of $

4.30

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r 20

12–1

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pres

ents

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the

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f Gov

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11’ w

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otes

.


82

CASH FLOW STATEMENT


2013 2012

Notes $’000 $’000

OPERATING ACTIVITIES

Cash received

Sales of goods and rendering of services 32,418 33,402

Net GST received 3,968 8,738

Appropriations 150,282 211,916

Other receipts - 13,465

Total cash received 186,668 267,521

Cash used

Employees 83,833 108,032

Suppliers 68,608 123,341

Grants 785 7,563

Section 31 receipts transferred to the OPA 33,564 28,082

Total cash used 186,790 267,018

Net cash from (used by) operating activities 11 (122) 503

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment 2,457 10,242

Purchase of intangibles 2,001 4,254


Net cash used by investing activities (4,458) (14,496)

FINANCING ACTIVITIES

Cash received

Contributed equity:

Equity injections - 3,552

Departmental Capital Budget 2,867 5,068


Net cash from financing activities 2,867 8,620

Net decrease in cash held (1,713) (5,373)

Cash and cash equivalents at the beginning of the reporting period 2,640 8,013

Cash and cash equivalents at the end of the reporting period 6A 927 2,640



83

SCHEDULE OF COMMITMENTS

as at 30 June 2013

2013 2012

BY TYPE $’000 $’000

Commitments receivable

Sublease rental income (1,466) (1,989)

Other commitments (15,469) (15,574)

Total commitments receivable (16,935) (17,563)

Commitments payable

Operating leases 106,500 115,904

Grant commitments 602 1,164

Other commitments payable1 84,153 13,965

Total commitments payable 191,255 131,033

Net commitments by type 174,320 113,470

BY MATURITY


Sublease rental income

One year or less (269) (284)

From one to five years (1,197) (1,263)

Over five years - (442)

Total sublease rental income (1,466) (1,989)

Other commitments receivable

One year or less (4,752) (6,006)

From one to five years (7,223) (4,129)

Over five years (3,494) (5,439)

Total other commitments receivable (15,469) (15,574)

Total commitments receivable (16,935) (17,563)

Commitments payable

Operating lease commitments

One year or less 13,065 10,722

From one to five years 44,656 44,916

Over five years 48,779 60,266

Total operating lease commitments 106,500 115,904

Grant commitments

One year or less 557 607

From one to five years 45 557

Over five years - -

Total grant commitments 602 1,164

Other commitments



Over five years - -

Total other commitments 84,153 13,965


Net commitments by maturity 174,320 113,470

Note: Commitments are GST inclusive where relevant.

1 Other commitments payable predominately contains commitments relating to the delivery of the G20 summit.


84

SCHEDULE OF COMMITMENTS

as at 30 June 2013

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, 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 7 years. The lease for

6 O’Connell Street, Sydney commenced in 2011–12 for a period of 6.5 years. The lease for Treasury Place, Melbourne

commenced in 2011–12 for a period of 5 years. The lease for 1 Bligh Street, Sydney, commenced during 2012–13 for a period

of 12 years. The lease for 60 Albert Street, Brisbane is due to commence in 2013–14 for a period of 1.5 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.

Other commitments payable also contains commitments relating to Australia’s hosting of the G20 summit, in particular

deposits for hotel contracts for delegations and commitments made under MOU for other Commonwealth agencies to

deliver related services for the summit.

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.


85

SCHEDULE OF CONTINGENCIES

as at 30 June 2013

2013 2012

Notes $’000 $’000

Contingent assets

Claims for damages or costs 12 - 99

Total departmental contingent assets - 99

There were no departmental contingent assets or liabilities to report for 2012–13.


86

ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME


2013 2012

Notes $’000 $’000

EXPENSES

Employee benefits 18A 956 828

Supplier 18B 5,376 9,582

Grants1 18C 8,888 152,135

Depreciation and amortisation 18D 284 1,428

Finance costs 18E 412 566

Losses from asset sales 18F 1 4

Payments to CAC Act bodies1 18G - 451,930

Total expenses administered on behalf of government 15,917 616,473

LESS:

OWN-SOURCE INCOME

Own-source revenue

Non-taxation revenue

Interest 19A - 100

Other1 19B 119 2,587

Total non-taxation revenue 119 2,687

Total own-source revenue administered on behalf of Government 119 2,687

Total own-source income administered on behalf of Government 119 2,687

Net cost of services 15,798 613,786

Deficit (15,798) (613,786)


Items not subject to subsequent reclassification to profit or loss

Changes in asset revaluation reserves 215 -

Items subject to subsequent reclassification to profit or loss

Actuarial gains/(losses) relating to former Governors-General

entitlements 4 (3,627)

Total other comprehensive income 219 (3,627)

Total comprehensive loss (15,579) (617,413)

1 The decrease since 2012 is due to functions relinquished to other Government agencies as part of the Administrative

Arrangements Order. Further details of these functions are described in Note 10.

The above schedule should be read in conjunction with the accompanying notes.


87

ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES

as at 30 June 2013

2013 2012

Notes $’000 $’000

ASSETS

Financial assets

Cash and cash equivalents 20A 5 1

Trade and other receivables 20B 119 71

Other investments 20C 1,054 964

Total financial assets 1,178 1,036

Non-financial assets

Property, plant and equipment 21A 1,753 1,788

Other non-financial assets 21C 64 97

Total non-financial assets 1,817 1,885

Total assets administered on behalf of Government 2,995 2,921

LIABILITIES

Payables

Suppliers 22A 325 345

Grants 22B 117 388

Other payables 22C 101 56

Total payables 543 789

Provisions

Employee provisions 23A 365 370

Non-cash benefits - former Governors-General benefits 23B 12,820 13,640

Other provisions 23C 169 132

Total provisions 13,354 14,142

Total liabilities administered on behalf of Government 13,897 14,931

Net liabilities (10,902) (12,010)



88

ADMINISTERED RECONCILIATION SCHEDULE

for the period ended at 30 June 2013

2013 2012

$’000 $’000

Opening administered assets less administered liabilities as at 1 July (12,010) 7,313,692

Plus: Administered income 119 2,687

Less: Administered expenses (non CAC Act) (15,917) (164,543)

Payments to CAC Act bodies - (451,930)

Administered transfers to/from Australian Government:

Surplus (deficit) items:

Administered transfers to/from Australian Government

Appropriation transfers from OPA:

Annual appropriation for administered expenses (non CAC Act) 18,137 180,681

Annual appropriation for payment to CAC Act bodies - 451,930

Transfers to OPA (1,554) (16,379)

Movement in make good 14 -

Restructuring - (7,324,665)

Administered investments 90 144

Asset revaluations 215 -

Revaluation of liabilities relating to former Governors-General entitlements 4 (3,627)

Closing administered assets less administered liabilities as at 30 June (10,902) (12,010)


89

ADMINISTERED CASH FLOW STATEMENT


2013 2012

Notes $’000 $’000

OPERATING ACTIVITIES

Cash received

Net GST received 1,214 5,770

Other 123 5,723


Cash used

Employees 915 799

Suppliers 7,505 19,628

Grant payments 9,158 155,109

CAC Act body payments - 451,930


Net cash used by operating activities 24 (16,241) (615,973)

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment 35 409

Total cash used 35 409

Net cash used by investing activities (35) (409)

Net decrease in cash held (16,276) (616,382)

Cash and cash equivalents at the beginning of the reporting period 1 148

Cash from OPA for:

Appropriations 17,858 632,614

17,858 632,614

Cash to OPA for:

Appropriations (1,578) (16,379)

(1,578) (16,379)

Cash and cash equivalents at the end of the reporting period 20 5 1



90

SCHEDULE OF ADMINISTERED COMMITMENTS

as at 30 June 2013

2013 2012

$’000 $’000

BY TYPE


Net GST recoverable on commitments (940) (1,425)

Total commitments receivable (940) (1,425) Commitments payable

Operating leases 1,702 1,890

Research and development 11,868 13,365

Other 176 425


Net commitments by type 12,806 14,255 BY MATURITY


One year or less (591) (568)

From one to five years (349) (845)

Over five years - (12)

Total commitments receivable (940) (1,425) Commitments payable

Operating lease commitments



Over five years - 134

Total operating lease commitments 1,702 1,890 Research and development commitments



Over five years - -

Total research and development commitments 11,868 13,365 Other commitments


From one to five years 23 199

Over five years - -

Total other commitments 176 425


Net commitments by maturity 12,806 14,255

Note: Commitments are GST inclusive where relevant.

General description of leasing arrangements

Operating leases comprise four leases for office accommodation for the former Governors-General. Lease payments are

subject to periodic increase in accordance with the rent review provisions of the lease. The lease for Murray Crescent,

Deakin, commenced in 2008–09 for a period of 5 years. The lease for Treasury Place, Melbourne, commenced in 2011–12

for a period of 5 years. The lease for Collins Street, Melbourne, commenced in 2011–12 for a period of 3 years. The lease

for Eagle Street, Brisbane, commenced in 2012–13 for a period of 5 years.


91

SCHEDULE OF ADMINISTERED CONTINGENCIES

as at 30 June 2013

Administered contingent assets and liabilities

The Department is not aware of any administered contingent assets or liabilities as at the signing date that would

require disclosure in the financial statements.

There were no contingent assets or liabilities disclosed in 2011–12.



92

INDEX TO THE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS


Note 1: Summary of significant accounting policies 93

Note 2: Events after the reporting period 106

Note 3: Expenses 107

Note 4: Income 109

Note 5: Other comprehensive income 110

Note 6: Financial assets 111

Note 7: Non-financial assets 113

Note 8: Payables 117

Note 9: Provisions 118

Note 10: Restructuring 119

Note 11: Cash flow reconciliation 123

Note 12: Contingent assets and liabilities 124

Note 13: Impact of the G20 Taskforce on the 2012–13 Statement of Comprehensive Income 125

Note 14: Senior executive remuneration 126

Note 15: Remuneration of auditors 133

Note 16: Financial instruments 134

Note 17: Financial assets reconciliation 137

Note 18: Administered expenses 138

Note 19: Administered income 140

Note 20: Administered financial assets 141

Note 21: Administered non-financial assets 143

Note 22: Administered payables 145

Note 23: Administered provisions 146

Note 24: Administered cash flow reconciliation 148

Note 25: Administered contingent assets and liabilities 149

Note 26: Administered investments 150

Note 27: Administered financial instruments 151

Note 28: Administered financial assets reconciliation 155

Note 29: Appropriations 156

Note 30: Special accounts and FMA Act section 39 162

Note 31: Compensation and debt relief 166

Note 32: Assets held in trust 167

Note 33: Reporting of outcomes 168

Note 34: Net cash appropriation arrangements 171


93

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS


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,

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 2012–13 the Department’s activities were identified under the following program:

Program 1: Prime Minister and Cabinet

• Domestic policy

• National security and international policy

• Support services for Government operations

• Group of 20 summit 2014

• Official and ceremonial support

The Department administers on behalf of the Government, the following activities:

Program 1: Prime Minister and Cabinet

• Volunteer management program

• Secretariat support to the National Counter-Terrorism Committee

• Parliament House Briefing Room

• Grant payments to the National Australia Day Council Limited

• Compensation and legal expenses

• Operations support for the Prime Minister’s official residences

• Support to former Governors-General

• State occasions and official visits


94



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 Financial

Management and Accountability Act 1997.

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.

In preparing the financial statements the Department identified changes to be made to the comparative for Note

3B: Supplier expenses and 18B: Administered supplier expenses. As a result, the comparatives were changed for the

following categories: Consultants, legal, contractors and secondees, Equipment, repairs and maintenance, General

expenses and Information technology and communication from the 2011–12 financial statements.

In preparing the financial statements the Department identified changes to be made to the comparative for

Note 3F: Losses on asset sales and 18F: Administered losses from asset sales. As a result the comparative was

changed from the 2011–12 financial statements.

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.


95



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 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 - September 2011 (Compilation)

• AASB 101 - Presentation of Financial Statements - September 2011 (Compilation)

• AASB 120 - Accounting for Government Grants and Disclosure of Government Assistance - September 2011

(Compilation)

• AASB 132 - Financial Instruments: Presentation - September 2011 (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, which are expected to have a financial impact on the Department for future reporting periods:

• AASB 7 - Financial Instruments: Disclosures - December 2012 (Compilation)

• AASB 9 - Financial Instruments - September 2012 (Compilation)

• AASB 13 - Fair Value Measurement - December 2012 (Principal)

• AASB 101 - Presentation of Financial Statements - December 2012 (Compilation)

• AASB 107 - Statement of Cash Flows - December 2012 (Compilation)

• AASB 108 - Accounting Policies, Changes in Accounting Estimates and Errors - December 2012 (Compilation)

• AASB 110 - Events after the Reporting Period - September 2012 (Compilation)


96



• AASB 116 - Property, Plant and Equipment - September 2012 (Compilation)

• AASB 117 - Leases - September 2012 (Compilation)

• AASB 118 - Revenue - December 2012 (Compilation)

• 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 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.


97



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 (DCBs) are recognised directly in contributed equity in that year.

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. In 2012–13 the Department acquitted the funding relating to the 2011–12 Appropriation

Act (No.1) and returned surplus funds of $4.304m to the Budget (refer to the Statement of Changes in Equity).

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 grant

moneys are paid in advance of performance or eligibility, a prepayment is recognised.


98



1.9 Employee benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 - Employee Benefits) and termination benefits

due within twelve 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 long service leave liabilities were calculated using the ‘short hand method’ outlined in the FMOs as the

Department had less than one thousand full time equivalent staff at 30 June 2013.

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 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.


99



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.


100



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.


101



1.18 Property, 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 measurement

Buildings 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 are carried at fair value less subsequent

accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency

to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting

date. The regularity of independent valuations 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 reverses a previous revaluation decrement of

the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of

assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation

increment for that class.

All property, plant and equipment assets were formally valued as at 31 May 2013 by Preston Rowe Patterson

NSW Pty Ltd.

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.


102



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:

2013 2012

Departmental assets

Leasehold improvements Lease term Lease term

Plant and equipment 1 to 50 years 1 to 50 years

Administered assets

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 2013 as part of the stocktake process and at 30 June 2013.

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.

Losses from assets sales

Losses from assets sales contain write-down and impairment of assets, as the prior year figure was related to loss

on asset disposal.

Accommodation fit-out

Property plant and equipment includes accommodation fit-out assets for ten leases including the Department’s

primary office at One National Circuit, Barton, ACT.


103



1.19 Intangibles

The Department’s intangible assets 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 2012–13.

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:

a. where the amount of GST incurred is not recoverable from the Australian Taxation Office

b. for receivables and payables

c. 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

Revenue collected by the Department for use by the Government rather than the Department is administered

revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of

Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary

appropriation on behalf of 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.


104



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 2013. 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 and in support for former Governors-General are recognised as administered items. 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.


105



1.22 Compliance with statutory conditions for payments from the Consolidated Revenue Fund

Williams v Commonwealth

The Australian Government continues to have regard to developments in case law, including the High Court’s

most recent decision on Commonwealth expenditure in Williams v Commonwealth (2012) 288 ALR 410, as they

contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance

with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate

actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

Section 83 of the Constitution

During 2012–13 additional legal advice was received that indicated there could be breaches of Section 83 under

certain circumstances with payments for long service leave, goods and services tax and payments under

determinations of the Remuneration Tribunal. The Department will review its processes and controls over

payments for these items to minimise the possibility for future breaches as a result of these payments. The

Department has determined that there is a low risk of the certain circumstances mentioned in the legal advice

applying to the Department. The Department is not aware of any specific breaches of Section 83 in respect of

these items.


106



Note 2: Events after the reporting period

Departmental

On 5 August 2013 the determination to reduce 2012–13 Appropriation Act 1 for $2.4m and 2012–13 Appropriation Act 2

for $7.9m was signed by the Minister for Finance and Deregulation. The determination had the effect of legally

reducing 2012–13 appropriation in the 2013–14 year. There is no effect on the financial statements as the reduction

has been recognised in Revenue from Government as the Government decision regarding the reduction occurred

in 2012–13.

Administered

There are no known events occurring after the reporting period that could impact on the financial statements.


107



Note 3: Expenses

2013 2012

$’000 $’000

Note 3A: Employee benefits

Wages and salaries 63,463 77,476

Superannuation:

Defined contribution plans 7,901 8,964

Defined benefit plans 5,165 5,755

Leave and other entitlements 10,141 15,107

Separation and redundancies 1,144 785

Other 474 1,499

Total employee benefits 88,288 109,586

Note 3B: Supplier

Goods and services

Consultants, legal, contractors and secondees 7,981 23,450

Equipment, repairs and maintenance 971 2,208

General expenses 9,583 12,482

Office accommodation, facility management and security 1,736 7,445

Information technology and communication1 23,806 31,687

Travel 2,447 8,462

Total goods and services 46,524 85,734

Goods and services are made up of:

Provision of goods – related entities 385 613

Provision of goods – external parties 1,961 5,624

Rendering of services – related entities 15,825 21,308

Rendering of services – external parties 28,353 58,189

Total goods and services 46,524 85,734

Other supplier expenses

Operating lease rentals – external parties:

Minimum lease payments 10,653 11,223

Workers compensation expenses 828 1,182

Total other supplier expenses 11,481 12,405

Total supplier expenses 58,005 98,139

Note 3C: Grants

Public sector:

Australian Government entities (related entities) 120 237

State and Territory Governments - 370

International Governments - 39

Private sector:

Non-profit organisations 795 1,611

Total grants 915 2,2571 Includes costs for the delivery of goods and services provided to other Commonwealth agencies. The corresponding

revenue is shown in Note 4A - Sale of goods and rendering of services.


108



2013 2012

$’000 $’000

Note 3D: Depreciation and amortisation

Depreciation:

Buildings - 1,269

Property, plant and equipment 5,509 5,454

Total depreciation 5,509 6,723

Amortisation:

Intangibles - computer software 2,429 1,447

Total amortisation 2,429 1,447

Total depreciation and amortisation 7,938 8,170

Note 3E: Finance costs

Unwinding of discount on makegood 9 7

Total finance costs 9 7

Note 3F: Losses from asset sales

Property, plant and equipment:

Carrying value of assets sold 397 248

Total losses from asset sales1 397 248

1 Comparative figure contains write-down and impairment of assets, disclosed separately in 2012.


109



Note 4: Income

2013 2012

$’000 $’000

Note 4A: Sale of goods and rendering of services

Provision of goods – related entities 8 -

Provision of goods – external parties 26 13



Total sale of goods and rendering of services 25,169 32,182

GAINS

Note 4B: Resources received free of charge

Seconded staff 1,653 3,436

ANAO audit fee 170 185

Assets received free of charge - 626

Total resources received free of charge 1,823 4,247

Note 4C: Reversals of previous asset write-downs and impairment

Reversal of impairment losses - 96

Total reversals of previous asset write-downs and impairments - 96

REVENUE FROM GOVERNMENT

Note 4D: Revenue from Government

Appropriations:

Departmental appropriation 120,962 171,368

Total Revenue from Government 120,962 171,368


110



Note 5: Other comprehensive income

2013 2012

$’000 $’000

Note 5A: Changes in asset revaluation reserve Revaluation of property, plant and equipment 56 -

Total changes in asset revaluation reserve 56 -


111



Note 6: Financial assets

2013 2012

$’000 $’000

Note 6A: Cash and cash equivalents

Cash on hand or on deposit 927 2,640

Total cash and cash equivalents 927 2,640

Note 6B: Trade and other receivables

Good and services:

Goods and services - related entities 2,045 5,077

Goods and services - external parties 60 268

Total receivables for goods and services 2,105 5,345

Appropriations receivable:

For existing programs 13,556 11,081

Total appropriations receivable 13,556 11,081

Other receivables:

GST receivable from the Australian Taxation Office 1,358 480

Total other receivables 1,358 480

Total trade and other receivables (gross) 17,019 16,906

Less impairment allowance account:

Goods and services - -

Total impairment allowance account - -

Total trade and other receivables (net) 17,019 16,906

Receivables are expected to be recovered in:

No more than 12 months 17,019 16,906

More than 12 months - -

Total trade and other receivables (net) 17,019 16,906

Receivables are aged as follows:

Not overdue 16,376 16,212

Overdue by:

0 to 30 days 166 133

31 to 60 days 90 -

61 to 90 days 34 450

More than 90 days 353 111

Total receivables (gross) 17,019 16,906


112



Reconciliation of the Impairment Allowance Account:

Movements in relation to 2013

Goods and services Total

$’000 $’000

Opening balance - -

Amounts written off - -

Amounts recovered and reversed - -

Increase/decrease recognised in net surplus - -

Closing balance - -

Movements in relation to 2012

Goods and services Total

$’000 $’000

Opening 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 - -

Note 6C: Accrued revenue

Provision of shared services 1,310 5,378

Total accrued revenue 1,310 5,378

Accrued revenues are expected to be recovered in:



Total accrued revenue 1,310 5,378


113



Note 7: Non-financial assets

2013 2012

$’000 $’000

Note 7A: Property, plant and equipment

Other property, plant and equipment:

Fair value 27,184 37,738

Accumulated depreciation (566) (10,098)

Work in progress 4,506 6,877

Total other property, plant and equipment 31,124 34,517

Total property, plant and equipment 31,124 34,517

No indicators of impairment were found for property, plant and equipment. A revaluation was conducted as at

31 May 2013 by independent valuer Preston Rowe Paterson NSW Pty Ltd. All revaluations were conducted in accordance

with the revaluation policy stated at Note 1.

Note 7B: Reconciliation of the opening and closing balances of property, plant and equipment (2012–13)

Other property, plant

and equipment Total

$’000 $’000

As at 1 July 2012


Gross book value 37,738 37,738

Accumulated depreciation and impairment (10,098) (10,098)

Net book value 1 July 2012 34,517 34,517

Additions

By purchase 2,457 2,457

Revaluations and impairments recognised in other comprehensive income 56 56

Depreciation expense (5,509) (5,509)

Disposals:

Other (397) (397)

Net book value 30 June 2013 31,124 31,124

Net book value as of 30 June 2013 represented by:



Accumulated depreciation and impairment (566) (566)



114



Not

e 7B

: Rec

onci

liat

ion

of t

he

open

ing

and

clo

sin

g ba

lan

ces

of p

rope

rty,

pla

nt a

nd

equi

pmen

t (20

11–1

2)

B

uild

ings

Lea

seh

old

impr

ovem

ents

To

tal l

and

and

buil

din

gs

Her

itag

e an

d

cult

ural

Oth

er p

rop

erty

,

plan

t an

d

equi

pmen

tT

ota

l

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

As

at 1

July

20

11

Wor

k in

pro

gres

s-

--

-5,

316

5,31

6

Gro

ss b

ook

val

ue85

,425

171

85,5

9659

,675

36,5

3018

1,80

1

Acc

umul

ated

dep

reci

atio

n a

nd

impa

irm

ent

(4,3

97)

(120

)(4

,517

)(2

11)

(6,2

42)

(10

,970

)

Net

bo

ok v

alue

1 Ju

ly 2

011

81,0

2851

81,0

7959

,464

35,6

04

176,

147

Add

itio

ns

By

pur

chas

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--

1,43

18,

800

10,2

31

Dep

reci

atio

n e

xpe

nse

(1,2

69)

(11)

(1,2

80)

(126

)(5

,317

)(6

,723

)

Dis

posa

ls:

Fro

m d

isp

osa

l of e

nti

ties

or

oper

atio

ns

(in

clud

ing

rest

ruct

urin

g)(7

9,75

9)(4

0)

(79,

799)

(60

,769

)(4

,322

)(1

44,8

90)

Oth

er-

--

-(2

48)

(248

)

Net

bo

ok v

alue

30

Jun

e 20

12-

--

-34

,517

34,5

17

Net

bo

ok v

alue

as

of 3

0 Ju

ne

2012

rep

rese

nte

d by

:

Wor

k in

pro

gres

s-

--

-6,

877

6,87

7

Gro

ss b

ook

val

ue-

--

-37

,738

37,7

38

Acc

umul

ated

dep

reci

atio

n a

nd

impa

irm

ent

--

--

(10

,098

)(1

0,0

98)

Net

bo

ok v

alue

30

Jun

e 20

12-

--

-34

,517

34,5

17


115



2013 2012

$’000 $’000

Note 7C: Intangibles

Computer software:

Internally developed – in progress 3,421 2,548

Internally developed – in use 5,416 4,655

Purchased 3,407 3,040

Total intangibles (gross) 12,244 10,243

Accumulated amortisation (6,877) (4,448)

Total intangibles (net) 5,367 5,795

No indicators of impairment were found for intangible assets. No intangibles are expected to be sold or disposed of

within the next 12 months.

Note 7D: Reconciliation of the opening and closing balances of intangibles (2012–13)

Computer software

internally developed

Computer software

purchased Total

$’000 $’000 $’000

As at 1 July 2012

Work in progress 2,548 - 2,548

Gross book value 4,655 3,040 7,695

Accumulated amortisation and impairment (3,283) (1,165) (4,448)

Net book value 1 July 2012 3,920 1,875 5,795

Additions

By purchase or internally developed 1,634 367 2,001

Revaluations and impairments recognised in other

comprehensive income - - -

Amortisation (1,491) (938) (2,429)

Disposals:

Other - - -

Net book value 30 June 2013 4,063 1,304 5,367







116



Note 7D: Reconciliation of the opening and closing balances of intangibles (2011–12)

Computer software

internally developed

Computer software

purchased Total

$’000 $’000 $’000

As at 1 July 2011



Accumulated amortisation and impairment (2,257) (862) (3,119)

Net book value 1 July 2011 2,757 478 3,235

Additions:

By purchase or internally developed 2,362 1,889 4,251

Amortisation (1,068) (379) (1,447)

Disposals:

From disposal of entities or operations (including

restructuring) (131) (113) (244)







2013 2012

$’000 $’000

Note 7E: Other non-financial assets

Prepayments1 4,013 1,310

Total prepayments 4,013 1,310

Payments are expected to be recovered in:


More than 12 months 2,664 71

Total prepayments 4,013 1,310

No indicators of impairment were found for other non-financial assets.

1 Prepayments relate primarily to deposits for hotel accommodation which will be utilised by delegations attending the

G20 summit in November 2014.


117



Note 8: Payables

2013 2012

$’000 $’000

Note 8A: Suppliers

Trade creditors and accruals 4,721 7,687

Total suppliers payable 4,721 7,687

Supplier payables are expected to be settled within 12 months:

Related entities 597 533

External parties 4,124 7,154

Total suppliers payable 4,721 7,687

Settlement is usually made within 30 days.

Note 8B: Grants

Public sector:

Australian Government entities (related entities) - 28

Private sector:

Non-profit organisations 528 371

Total grants 528 399

Total grants are expected to be settled in:

No more than 12 months 528 399



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 1,794 2,034

Separation and redundancies payable 1,651 413

Superannuation 364 300

Unearned income 10 502

Other 155 238

Total other payables 3,974 3,487

Total other payables are expected to be settled in:



Total other payables 3,974 3,487


118



Note 9: Provisions

2013 2012

$’000 $’000

Note 9A: Employee provisions Annual Leave 9,736 9,117

Long service leave 13,927 12,801

Total employee provisions 23,663 21,918

Employee provisions are expected to be settled in:


More than 12 months 17,346 16,026

Total employee provisions1 23,663 21,918

Note 9B: Other provisions Lease provision 5,380 5,057

Make good provision 224 375

Provision for lease incentive 1,213 287

Total other provisions 6,817 5,719

Other provisions are expected to be settled in:


More than 12 months 6,537 5,550

Total other provisions 6,817 5,719

Lease

provision

Make good

provisions

Provision for

lease incentives Total

$’000 $’000 $’000 $’000

Carrying amount 1 July 2012 5,057 375 287 5,719

Additional provisions made 382 - 1,037 1,419

Amounts used (59) (160) (111) (330)

Unwinding of discount or change in discount rate - 9 - 9

Closing balance 30 June 2013 5,380 224 1,213 6,817

At 30 June 2013 the Department had three agreements for the leasing of premises which have provisions requiring the

Department to restore the premises to their original condition at the conclusion of the lease. The Department has created

a provision to reflect the present value of this obligation.

At 30 June 2013 the Department had three agreements for the leasing of premises which have lease incentive provisions

which will be amortised over the remaining lease term. The Department has created a provision to reflect the present

value of the provision.

1 Comparative changed for employee provisions expected to be settled in no more than 12 months and more than 12

months.


119



Note 10: Restructuring

Note 10A: Departmental restructuringThe Department did not assume or relinquish and departmental or administered functions as a result of restructuring

during 2012–13.

Departmental restructuring (2011–12)

Relinquished

• The National Security Science and Innovation function was relinquished to the Department of Defence

following the Administrative Arrangements Order (AAO) change of 14 December 2011.

• The National Mental Health Commission (NMHC) was established as an executive agency in the Prime Minister

and Cabinet Portfolio on 1 January 2012. The function operated within the Department until the date of

establishment.

• 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.

• Indigenous broadcasting and media sector function was relinquished to the Department of Broadband,

Communications and the Digital Economy (DBCDE) effective 1 July 2011.

• The arts, culture, sport and recreation function was relinquished to DRALGAS following the AAO change of

14 December 2011.

Assumed

• The Department assumed responsibility for the cyber security policy function from AGD following the AAO

change of 14 December 2011.


120



Not

e 10

A: D

epar

tmen

tal r

estr

uctu

rin

g

2012

Indi

gen

ous

bro

adca

stin

g

pro

gram

Art

s, c

ultu

re,

spor

ts a

nd

recr

eati

on

Cy

ber

secu

rity

pol

icy

Nat

ion

al

secu

rity

gran

ts

Nat

ion

al

Men

tal H

ealt

h

Com

mis

sion

Pri

vac

y a

nd

FO

I re

form

DB

CD

ED

RA

LGA

SA

GD

Def

ence

NM

HC

AG

D

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

FU

NC

TIO

N A

SSU

ME

D

Ass

ets

reco

gnis

ed

App

ropr

iati

on r

ecei

vab

le -

-19

0

- -

-

To

tal a

sset

s re

cogn

ised

--

190

--

-

Lia

bili

ties

rec

ogn

ised

Em

ploy

ee p

rov

isio

ns

- -

190

-

- -

To

tal l

iabi

liti

es r

eco

gnis

ed-

-19

0-

--

Net

ass

ets/

(lia

bili

ties

) ass

umed

--

--

--

Inco

me

Rec

ogn

ised

by

th

e re

ceiv

ing

enti

ty -

- -

- -

-

Rec

ogn

ised

by

th

e lo

sin

g en

tity

-1,

412

-18

-

-

To

tal i

nco

me

-1,

412

-18

--

Ex

pen

ses

Rec

ogn

ised

by

th

e re

ceiv

ing

enti

ty -

-87

8 -

- -

Rec

ogn

ised

by

th

e lo

sin

g en

tity

-23

,758

1,0

15

799

469

303

To

tal e

xp

ense

s-

23,7

581,8

9379

946

930

3


121



20

12

Indi

gen

ous

bro

adca

stin

g

pro

gram

Art

s, c

ultu

re,

spor

ts a

nd

recr

eati

on

Cy

ber

secu

rity

pol

icy

Nat

ion

al

secu

rity

gran

ts

Nat

ion

al

Men

tal H

ealt

h

Com

mis

sion

Pri

vac

y a

nd

FO

I re

form

DB

CD

ED

RA

LGA

SA

GD

Def

ence

NM

HC

AG

D

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

FU

NC

TIO

N R

EL

INQ

UIS

HE

D

Ass

ets

reli

nqu

ish

ed

Tra

de a

nd

oth

er r

ecei

vab

les

-58

9 -

- -

-

App

ropr

iati

on r

ecei

vab

le10

5 20

,012

-

2,30

0

304

331

Lan

d an

d bu

ildi

ngs

-79

,799

-

- -

-

Pro

pert

y, p

lan

t an

d eq

uipm

ent

-65

,091

-

-11

-

Inta

ngi

bles

-24

4 -

- -

-

Inv

ento

ries

-30

-

- -

-

Oth

er n

on-fi

nan

cial

ass

ets

-18

4 -

- -

-

To

tal a

sset

s re

lin

quis

hed

105

165,

949

-2,

300

315

331

Lia

bili

ties

rec

ogn

ised

Supp

lier

pay

able

s -

839

- -

- -

Oth

er p

ayab

les

-1,9

06

- -

- -

Em

ploy

ee p

rov

isio

ns

158

8,33

0

- -

132

459

Oth

er p

rov

isio

ns

-36

-

- -

-

To

tal l

iabi

liti

es r

elin

quis

hed

158

11,11

1-

-13

245

9

Net

ass

ets/

(lia

bili

ties

) rel

inqu

ish

ed(5

3)15

4,83

8-

2,30

018

3(1

28)


122



Note 10B: Administered restructuringThe Department did not assume or relinquish any departmental or administered functions as a result of restructuring

during 2012–13.

Administered restructuring (2011–12)

Relinquished

• The arts, culture, sport and recreation function was relinquished to DRALGAS following the AAO change of

14 December 2011.

2012

Arts, culture, sports and recreation

DRALGAS

$’000FUNCTIONS ASSUMED Assets recognised

Trade and other receivables -Administered investments -Loan receivable -Land and buildings -Other non-financial assets -

Total assets recognised -

Liabilities recognised Royalties payable -Supplier payables -Grants payable -

Total liabilities recognised -Net assets/(liabilities) assumed -

Income Recognised by the receiving entity -Recognised by the losing entity 2,625

Total Income 2,625

Expenses Recognised by the receiving entity -Recognised by the losing entity 147,495

Total expenses 147,495 FUNCTIONS RELINQUISHED Assets relinquished

Cash and cash equivalents 1,069Trade and other receivables 1,480Administered investments 7,284,888Loan receivable 4,000Interest receivable 266Land and buildings 32,858Other non-financial assets 144

Total assets relinquished 7,324,705

Liabilities relinquished Royalties payable 40

Total liabilities relinquished 40Net assets/(liabilities) relinquished 7,324,665


123



Note 11: Cash flow reconciliation

2013 2012

$’000 $’000

Reconciliation of cash and cash equivalents as per balance sheet to cash flow

statement

Cash and cash equivalents as per:

Cash flow statement 927 2,640

Balance sheet 927 2,640

Difference - -

Reconciliation of net cost of services to net cash from operating activities:

Net cost of services (128,560) (181,882)

Add: Revenue from Government 120,962 171,368

Adjustments for non-cash items

Net loss from sale of assets 397 248

Depreciation and amortisation 7,938 8,170

Reversal of previous asset write-downs and impairment - (96)

Assets received free of charge - (626)

Net GST received (781) (473)

Resources received free of charge - services (1,823) (3,621)

Changes in assets / liabilities

(Increase) / decrease in net receivables (113) 27,861

(Increase) / decrease in accrued revenue 4,068 811

(Increase) / decrease in inventory - 23

(Increase) / decrease in prepayments (2,703) 2,405

Increase / (decrease) in employee provisions 1,745 1,940

Increase / (decrease) in supplier payables (2,966) (19,434)

Increase / (decrease) in grants payable 129 (5,304)

Increase / (decrease) in other payables 487 (1,409)

Increase / (decrease) in other provisions 1,098 522

Net cash from (used by) operating activities (122) 503


124



Note 12: Contingent assets and liabilities

Quantifiable contingencies

The Department is not aware of any departmental quantifiable contingent liabilities and assets as at the signing

date that would require disclosure in the financial statements.

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.


125



Note 13: Impact of the G20 Taskforce on the 2012–13 Statement of Comprehensive Income

Departmental

(excluding G20

Taskforce)

G20

Taskforce Total

$’000 $’000 $’000

EXPENSES

Employee benefits 81,725 6,563 88,288

Supplier expenses 43,966 14,039 58,005

Grants 665 250 915

Depreciation and amortisation 7,938 - 7,938

Finance costs 9 - 9

Losses from asset sales 397 - 397

Total expenses 134,700 20,852 155,552

LESS:

OWN-SOURCE INCOME

Revenue

Sale of goods and rendering of services 25,153 16 25,169

Total revenue 25,153 16 25,169

Gains

Resources received free of charge 1,798 25 1,823

Total gains 1,798 25 1,823

Total own-source income 26,951 41 26,992

Net cost of services 107,749 20,811 128,560

Revenue from Government 98,756 22,206 120,962

Surplus (Deficit) attributable to the Australian Government (8,993) 1,395 (7,598)


Changes in asset revaluation reserve 56 - 56

Total comprehensive income (loss) attributable to the

Australian Government (8,937) 1,395 (7,542)


126



Note 14: Senior executive remuneration

Note 14A: Senior executive remuneration expense for the reporting period 2013 2012

$ $

Short-term employee benefits:

Salary (including annual leave taken) 11,615,486 10,897,230

Other1 1,157,830 1,210,115

Total short-term employee benefits 12,773,316 12,107,345

Post-employment benefits:

Superannuation 2,172,017 1,839,189

Total post-employment benefits 2,172,017 1,839,189

Other long-term benefits:

Long-service leave 436,949 352,811

Total other long-term benefits 436,949 352,811

Termination benefits:

Termination benefits2 422,367 102,994

Total termination benefits 422,367 102,994

Total senior executive remuneration expenses 15,804,649 14,402,339

1 Includes motor vehicle, other allowances and reportable fringe benefits.

2 Termination benefits includes benefits accrued to long standing employees who retired during the period and received

the value of their entitlements.

Notes:

• 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 $180,000.

• No performance bonuses were expensed during the reporting period, or comparative period in relation to senior

executives.

• 61 employees met the criteria for inclusion in the above table for 2012–13 compared to 56 in 2011–12.

• 2012 comparative has been restated to the same basis as 2013 (reporting threshold lifted from $150,000 to $180,000).


127



Not

e 14

B: A

vera

ge a

nn

ual r

epor

tabl

e re

mun

erat

ion

pai

d to

sub

stan

tive

sen

ior

exec

utiv

es d

urin

g th

e re

port

ing

peri

od

2012

–13

Av

erag

e an

nua

l rep

orta

ble

rem

uner

atio

n1

Subs

tan

tiv

e Se

nio

r

Ex

ecut

ives

Rep

orta

ble

Sala

ry2

Con

trib

uted

sup

eran

nua

tion

3

Rep

orta

ble

allo

wan

ces4

Bon

us p

aid5

To

tal r

epor

tabl

e

rem

uner

atio

n

No.

$$

$$

$

To

tal r

emun

erat

ion

(in

clud

ing

part

-tim

e ar

ran

gem

ents

):

less

than

$18

0,0

00

3054

,997

9,77

7-

-64

,774

$180

,00

0 to

$20

9,99

912

168,

301

30,2

42-

-19

8,54

3

$210

,00

0 to

$23

9,99

914

187,5

5435

,672

27-

223,

253

$240

,00

0 to

$26

9,99

96

214,

979

32,6

36-

-24

7,61

5

$270

,00

0 to

$29

9,99

910

239,

951

44,5

94-

-28

4,54

5

$30

0,0

00

to $

329,

999

223

5,44

066

,106

--

301,5

46

$330

,00

0 to

$35

9,99

92

285,

876

59,2

80-

-34

5,15

6

$360

,00

0 to

$38

9,99

91

317,

884

44,8

09

--

362,

693

$390

,00

0 to

$41

9,99

91

330

,561

69,5

68-

-40

0,12

9

$420

,00

0 to

$44

9,99

9-

--

--

-

$450

,00

0 to

$47

9,99

91

371,9

8810

6,55

6-

-47

8,54

4

$480

,00

0 to

$50

9,99

9-

--

--

-

$510

,00

0 to

$53

9,99

91

453,

780

74,9

80-

-52

8,76

0

$540

,00

0 to

$56

9,99

9-

--

--

-

$570

,00

0 to

$59

9,99

9-

--

--

-

$60

0,0

00

to $

629,

00

0-

--

--

-

$630

,00

0 to

$65

9,99

91

575,

326

141,4

77-

-71

6,80

3

Tot

al n

umbe

r of s

ubst

anti

ve se

nior

exe

cuti

ves

81


128



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:

a. gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column)

b. reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits)

c. exempt foreign employment income

d. salary sacrificed benefits.

3. The ‘contributed superannuation’ amount is the average cost to the entity for the provision of superannuation benefits

to substantive senior executives in that reportable remuneration band during the reporting period.

4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment

summaries.

5. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band.

The ‘bonus paid’ within a particular band may vary between financial years due to various factors such as individuals

commencing with or leaving the entity during the financial year.

Notes:

• Each row is an averaged figure based on headcount for individuals in the band.

• The Senior Executive Service (SES) numbers shown in Table 14B differ to the Human Resource Workforce profile

shown in an earlier chapter 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).


129



20

11–1

2

Av

erag

e an

nua

l rep

orta

ble

rem

uner

atio

n1

Subs

tan

tiv

e Se

nio

r

Ex

ecut

ives

Rep

orta

ble

sala

ry2

Con

trib

uted

supe

ran

nua

tion

3

Rep

orta

ble

allo

wan

ces4

Bon

us p

aid5

Tot

al r

epor

tabl

e

rem

uner

atio

n

No.

$$

$$

$

To

tal r

emun

erat

ion

(in

clud

ing

part

-tim

e ar

ran

gem

ents

):

less

than

$18

0,0

00

4768

,690

8,78

75

-77

,482

$180

,00

0 to

$20

9,99

921

172,

858

26,3

57-

-19

9,21

5

$210

,00

0 to

$23

9,99

913

181,

499

41,0

6238

-22

2,59

9

$240

,00

0 to

$26

9,99

95

221,8

6933

,865

--

255,

734

$270

,00

0 to

$29

9,99

96

236,

663

44,8

41-

-28

1,50

4

$30

0,0

00

to $

329,

999

--

--

--

$330

,00

0 to

$35

9,99

94

295,

441

44,0

70-

-33

9,51

1

$360

,00

0 to

$38

9,99

9-

--

--

-

$390

,00

0 to

$41

9,99

9-

--

--

-

$420

,00

0 to

$44

9,99

91

329,

870

93,4

46-

-42

3,31

6

$450

,00

0 to

$47

9,99

92

335,

552

136,

959

--

472,

511

$480

,00

0 to

$50

9,99

91

428,

100

63,3

92-

-49

1,49

2

Tot

al n

umbe

r of s

ubst

anti

ve se

nior

exe

cuti

ves

100


130



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:

a. gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column)

b. reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits)

c. exempt foreign employment income

d. salary sacrificed benefits.

3. The ‘contributed superannuation’ amount is the average cost to the entity for the provision of superannuation benefits

to substantive senior executives in that reportable remuneration band during the reporting period.

4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment

summaries.

5. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band.

The ‘bonus paid’ within a particular band may vary between financial years due to various factors such as individuals

commencing with or leaving the entity during the financial year.

Notes:

• Each row is an averaged figure based on headcount for individuals in the band.

• The SES numbers shown in Table 14B differs to the Human Resource Workforce profile shown in an earlier chapter

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).


131



Not

e 14

C: O

ther

hig

hly

pai

d st

aff

2012

–13

Av

erag

e an

nua

l rep

orta

ble

rem

uner

atio

n1

Oth

er h

igh

ly

paid

sta

ffR

epor

tabl

e sa

lary

2

Con

trib

uted

sup

eran

nua

tion

3

Rep

orta

ble

allo

wan

ces4

Bon

us p

aid5

To

tal r

epor

tabl

e

rem

uner

atio

n

No.

$$

$$

$

To

tal r

epor

tabl

e re

mun

erat

ion

(in

clud

ing

part

tim

e ar

ran

gem

ents

):

$180

,00

0 to

$20

9,99

93

161,9

2226

,911

--

188,

833

Tot

al n

umbe

r of h

ighl

y pa

id st

aff

3

1. Th

is ta

ble

repo

rts

staff

:

a. w

ho

wer

e em

ploy

ed b

y th

e en

tity

dur

ing

the

repo

rtin

g pe

rio

d

b. w

ho

se r

epor

tabl

e re

mun

erat

ion

was

$18

0,0

00

or

mor

e fo

r th

e fi

nan

cial

per

iod

c. w

ere

not

req

uire

d to

be

disc

lose

d in

Tab

les

A, B

or

dire

ctor

dis

clo

sure

s

d. e

ach

row

is a

n a

ver

aged

figu

re b

ased

on

hea

dcou

nt f

or in

div

idua

ls in

the

ban

d.

2. ‘R

epor

tabl

e sa

lary

’ in

clud

es t

he

foll

owin

g:

a. g

ross

pay

men

ts (l

ess

any

bon

uses

pai

d, w

hic

h a

re s

epar

ated

out

an

d di

sclo

sed

in t

he

‘bon

us p

aid

’ col

umn

)

b. r

epor

tabl

e fr

inge

ben

efits

(at t

he

net

am

oun

t pri

or to

‘gro

ssin

g up

’ to

acco

unt f

or ta

x b

enefi

ts)

c. e

xem

pt fo

reig

n e

mpl

oym

ent i

nco

me

d. s

alar

y s

acri

fice

d be

nefi

ts.

3. Th

e ‘c

ontr

ibut

ed s

uper

ann

uati

on’ a

mou

nt i

s th

e av

erag

e co

st to

the

enti

ty fo

r th

e pr

ovis

ion

of s

uper

ann

uati

on b

enefi

ts to

oth

er h

igh

ly p

aid

staff

in t

hat

rep

orta

ble

rem

uner

atio

n b

and

duri

ng

the

rep

orti

ng

peri

od.

4. ‘R

epor

tabl

e al

low

ance

s’ a

re th

e av

erag

e ac

tual

all

owan

ces

paid

as

per

the

‘tota

l all

owan

ces’

lin

e on

indi

vid

uals

’ pay

men

t sum

mar

ies.

5. ‘B

onus

pai

d’ r

epre

sen

ts a

ver

age

actu

al b

onus

es p

aid

duri

ng

the

rep

orti

ng

peri

od

in t

hat

rep

orta

ble

rem

uner

atio

n b

and.

The

‘bon

us p

aid

’ wit

hin

a p

arti

cula

r

ban

d m

ay v

ary

bet

wee

n fi

nan

cial

yea

rs d

ue to

var

ious

fact

ors

such

as

indi

vid

uals

com

men

cin

g w

ith

or

leav

ing

the

enti

ty d

urin

g th

e fi

nan

cial

yea

r.


132



20

11–1

2

Av

erag

e an

nua

l rep

orta

ble

rem

uner

atio

n1

Oth

er h

igh

ly

paid

sta

ffR

epor

tabl

e sa

lary

2

Con

trib

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133



Note 15: Remuneration of auditors

2013 2012

$’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 170 185

Total of fair value of services provided 170 185

No other services were provided by the auditors of the financial statements.


134



Note 16: Financial instruments

2013 2012

$’000 $’000

Note 16A: Categories of financial instruments

Financial assets

Loans and receivables:

Cash and cash equivalents 927 2,640

Goods and services receivables 2,105 5,345

Accrued revenue 1,310 5,378

Carrying amount of financial assets 4,342 13,363

Financial liabilities

At amortised cost:

Trade creditors 4,721 7,687

Grants 528 399

Carrying amount of financial liabilities 5,249 8,086

Note 16B: Net income and expense from financial assetsThere is no income and expense from financial assets for 2012–13 (2011–12: Nil)

Note 16C: Fair value of financial instrumentsThe fair value of financial instruments approximate their carrying amounts.


135



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, 2013: $2,104,960 (2012: $5,344,516).

The Department has assessed the risk of the default on payment and has not allocated any amounts to an impairment

allowance account (2012: Nil).

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.

2013 2012

$’000 $’000

Financial assets

Cash and cash equivalents 927 2,640

Goods and services receivables 2,105 5,345

Accrued revenue 1,310 5,378

Total 4,342 13,363

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

2013 2012 2013 2012

$’000 $’000 $’000 $’000

Cash and cash equivalents 927 2,640 - -

Goods and services receivables 1,462 4,651 643 694

Accrued revenue 1,310 5,378 - -

Total 3,699 12,669 643 694

Ageing of financial assets that were past due but not impaired for 2013

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 166 90 34 353 643

Accrued revenue - - - - -

Total 166 90 34 353 643


0 to 30 31 to 60 61 to 90 90+


$’000 $’000 $’000 $’000 $’000


Goods and services receivables 133 - 450 111 694


Total 133 - 450 111 694


136



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 2013

On demand Within 1 year 1 to 2 years 2 to 5 years > 5 years Total

$’000 $’000 $’000 $’000 $’000 $’000

Trade creditors - 4,721 - - - 4,721

Grants - 528 - - - 528

Total - 5,249 - - - 5,249


On demand Within 1 year 1 to 2 years 2 to 5 years > 5 years Total

$’000 $’000 $’000 $’000 $’000 $’000

Trade creditors - 7,687 - - - 7,687

Grants - 399 - - - 399

Total - 8,086 - - - 8,086

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.


137



Note 17: Financial assets reconciliation

2013 2012

Notes $’000 $’000

Financial assets

Total financial assets as per balance sheet 19,256 24,924

Less non-financial instrument components:

Appropriation receivables 13,556 11,081

GST receivable from the Australian Taxation Office 1,358 480

Total non-financial instrument components 14,914 11,561

Total financial assets as per financial instruments note1 16A 4,342 13,363

1 Figure disclosed net of statutory receivables.


138



Note 18: Administered expenses

2013 2012

$’000 $’000

Note 18A: Employee benefits

Wages and salaries 671 643

Superannuation:

Defined contribution plans 93 74

Defined benefit plans 30 33

Leave and other entitlements 112 78

Separation and redundancies 50 -

Total employee benefits 956 828

Note 18B: Suppliers

Goods and services

Outsourced providers, contractors and consultants 435 1,662

Equipment, repairs and maintenance 587 492

General expenses 1,083 1,675

Travel 2,526 4,623

Information communications and technology 418 820

Office accommodation, facility management and security 261 212

Total goods and services 5,310 9,484 Goods and services are made up of:

Provision of goods – related entities 285 4

Provision of goods – external parties 626 672



Total goods and services 5,310 9,484 Other supplier expenses

Operating lease rentals – external parties:

Minimum lease payments 64 98

Workers compensation expenses 2 -

Total other supplier expenses 66 98

Total suppliers 5,376 9,582

Note 18C: Grants

Public sector:

Australian Government entities (related entities) 3,394 70,863

Local Governments 426 6,256

State and Territory Governments - 783

Private sector:

Non-profit organisations 5,068 54,603

Commercial entities - 19,279

Overseas organisations - 351

Total grants 8,888 152,135


139



2013 2012

$’000 $’000

Note 18D: Depreciation and amortisation

Depreciation:

Buildings - 1,147

Property, plant and equipment 284 281

Total depreciation and amortisation 284 1,428

Note 18E: Finance costs

Unwinding of discount 412 566

Total finance costs 412 566

Note 18F: Losses from asset sales

Property, plant and equipment:

Carrying value of assets sold 1 4

Total losses from asset sales1 1 4

Note 18G: Payments to CAC Act bodies

Australia Council - 138,536

Australian Film, Television and Radio School - 14,081

Australian National Maritime Museum - 17,063

National Film and Sound Archive of Australia - 15,338

National Gallery of Australia - 33,641

National Library of Australia - 34,279

National Museum of Australia - 31,015

Screen Australia - 15,977

Australian Sports Commission - 152,000

Total payments to CAC Act bodies - 451,930

1 Comparative figure contains write-down and impairment of assets, disclosed separately in 2012.


140



Note 19: Administered income

2013 2012

$’000 $’000

Note 19A: Interest

Loans - 100

Total interest - 100

Note 19B: Other revenue

Return of prior year grant funding 3 2,519

Other 116 68

Total other revenue 119 2,587


141



Note 20: Administered financial assets

2013 2012

$’000 $’000

Note 20A: Cash and cash equivalents

Cash on hand or on deposit 5 1

Total cash and cash equivalents 5 1

Note 20B: Trade and other receivables

Good and services:

Goods and services receivable – related entities 24 1

Goods and services receivable – external parties 4 9

Total goods and services 28 10

Other receivables:

GST receivable from the Australian Taxation Office 91 61

Total other receivables 91 61

Total trade and other receivables (gross) 119 71

Less impairment allowance account:

Goods and services - -

Total impairment allowance account - -

Total trade and other receivables (net) 119 71

Receivables are expected to be recovered in:



Total trade and other receivables (net) 119 71

Receivables are aged as follows:

Not overdue 115 66

Overdue by:

0 to 30 days - -

31 to 60 days - -

61 to 90 days - -

More than 90 days 4 5

Total receivables (gross) 119 71

Credit terms were within 30 days (2012: 30 days).


142



2013 2012

$’000 $’000

Note 20C: Investments accounted for using the equity method

Equity interest in:

National Australia Day Council Limited 1,054 964

Total equity accounted investments 1,054 964

Other financial assets are expected to be recovered in:

No more than 12 months - -

More than 12 months 1,054 964

Total equity accounted investments 1,054 964

Refer to Note 26 for details on the principal activities of each of the Department’s administered investments.

The Department’s investment in this entity is measured at fair value as at 30 June 2013. Fair value has been taken to be

the net assets of the entity as at balance date based on the unaudited financial statements.


143



Note 21: Administered non-financial assets

2013 2012

$’000 $’000

Note 21A: Property, plant and equipment

Other property, plant and equipment:

Fair value 1,851 2,176

Accumulated depreciation (98) (388)

Total other property, plant and equipment 1,753 1,788

Total property, plant and equipment 1,753 1,788

No indicators of impairment were found for property, plant and equipment. A revaluation was conducted as at

31 May 2013 by independent valuer Preston Rowe Paterson NSW Pty Ltd. All revaluations were conducted in

accordance with the revaluation policy stated at Note 1.

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.


Other property,

plant and

equipment Total

$’000 $’000

As at 1 July 2012



Net book value 1 July 2012 1,788 1,788

Additions:

By purchase 35 35

Revaluations and impairments recognised in other comprehensive income 215 215

Impairments recognised in the operating result - -

Depreciation expense (284) (284)

Disposals:

Other (1) (1)







144




Buildings

Other property,

plant and

equipment Total

$’000 $’000 $’000

As at 1 July 2011

Gross book value 40,739 2,041 42,780

Accumulated depreciation and impairment (6,860) (112) (6,972)

Net book value 1 July 2011 33,879 1,929 35,808

Additions:

By purchase 126 283 409

Impairments recognised in the operating result - (4) (4)

Depreciation expense (1,147) (281) (1,432)

Disposals:

From disposal of entities or operations

(including restructuring) (32,858) (139) (32,997)

Net book value 30 June 2012 - 1,788 1,788


Gross book value - 2,176 2,176

Accumulated depreciation and impairment - (388) (388)

Net book value 30 June 2013 - 1,788 1,788

2013 2012

$’000 $’000

Note 21C: Other non-financial assets

Prepayments 64 97

Total other non-financial assets 64 97

Total other non-financial assets - expected to be recovered in:


More than 12 months - 31

Total other non-financial assets 64 97


145



Note 22: Administered payables

2013 2012

$’000 $’000

Note 22A: Suppliers

Trade creditors and accruals 325 345

Total suppliers 325 345

Supplier payables expected to be settled within 12 months:

Related entities 73 37

External parties 252 308

Total suppliers 325 345

Settlement is usually made within 30 days.

Note 22B: Grants

Private sector:

Non-profit organisations 117 388


Total grants are expected to be settled in:




Note 22C: Other payables

Salaries and wages 26 27

Separations and redundancies payable 43 -

Superannuation 7 4

Other 25 25

Total other payables 101 56

Total other payables are expected to be settled in:



Total other payables 101 56


146



Note 23: Administered provisions

2013 2012

$’000 $’000

Note 23A: Employee provisions

Annual leave 183 178

Long service leave 182 192

Total employee provisions 365 370 Employee provisions are expected to be settled in:


More than 12 months 267 273

Total employee provisions1 365 370

Note 23B: Non-cash benefits - former Governors-General benefits

Non-cash benefits - former Governors-General 12,820 13,640

Total non-cash benefits - former Governors-General benefits 12,820 13,640 The amounts recognised in the balance sheet are as follows:

Present value of unfunded obligations 12,820 13,640

Net liability in balance sheet 12,820 13,640 Amounts in balance sheet:

Liabilities 12,820 13,640

Net liability in balance sheet 12,820 13,640 The amounts recognised in the income statement are as follows:

Current service cost - -

Finance costs 410 560

Expense 410 560

Net actuarial losses (gains) recognised in equity (4) 3,627 Changes in the value of the defined benefit obligations are as follows:

Net liability at 1 July 13,640 10,668

Service cost - -

Finance costs 410 560

Actuarial losses (gains) (4) 3,627

Benefits paid (1,226) (1,215)

Net liability at 30 June 12,820 13,640 Principal actuarial assumptions at the reporting date (expressed as weighted averages):

Discount rate at 30 June 3.76% 3.04%Future salary increases 4.00% 4.00%Inflation rate 2.50% 2.50%Rate of expenditure slow down with age 3.00% 3.00%

1 Comparative changed for employee provisions expected to be settled in no more than 12 months and more than

12 months.


147



2013 2012

$’000 $’000

Note 23C: Other provisions

Make good provisions 114 110

Lease provisions 55 22

Total other provisions 169 132

Other provisions expected to be settled in:


More than 12 months 113 121

Total other provisions 169 132

Reconciliation of other provisions

Lease

provision

Make good

provision Total

$’000 $’000 $’000

Carrying amount 1 July 2012 22 110 132

Additional provisions made 44 2 46

Amounts used (11) - (11)

Amounts reversed - - -

Unwinding of discount or change in discount rate - 2 2

Closing balance 30 June 2013 55 114 169

At 30 June 2013 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.


148



Note 24: Administered cash flow reconciliation

2013 2012

$’000 $’000

Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement

Cash and cash equivalents as per:

Schedule of administered cash flows 5 1

Schedule of administered assets and liabilities 5 1

Difference - -

Reconciliation of net cost of services to net cash from operating activities:

Net cost of services (15,798) (613,786)

Adjustments for non-cash items

Depreciation / amortisation 284 1,428

Losses from asset sales 1 4

Net GST received 321 -

Changes in assets / liabilities

(Increase) / decrease in net receivables (48) (175)

(Increase) / decrease in prepayments 33 124

Increase / (decrease) in supplier payables (20) (3,582)

Increase / (decrease) in grants payable (271) (2,974)

Increase / (decrease) in other payable 45 (16)

Increase / (decrease) in employee provisions (5) 26

Increase / (decrease) in former Governors-General benefits (820) 2,972

Increase / (decrease) in other provisions 37 6

Net cash from (used by) operating activities (16,241) (615,973)


149



Note 25: Administered contingent assets and liabilities

Claims for damages or costs Total

2013 2012 2013 2012

$’000 $’000 $’000 $’000

Contingent liabilities

Balance from previous period - 70 - 70

Expired - (70) - (70)

New - - - -

Total contingent liabilities - - - -

Quantifiable contingencies

The Department is not aware of any administered quantifiable contingent liabilities or assets as at signing date


Unquantifiable contingencies

The Department is not aware of any administered unquantifiable contingent liabilities or assets as at signing date


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.


150



Note 26: Administered investments

The principal activities of the Department’s administered investment is 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 and Territory Australia Day

Councils and provision of recommendations and advice to the Australian Government on all matters relating to

year-round national pride activities.

The Commonwealth holds a 100% equity interest the National Australia Day Council Limited.


151



Note 27: Administered financial instruments

2013 2012

$’000 $’000

Note 27A: Categories of financial instruments

Financial assets


Cash and cash equivalents 5 1

Goods and services receivable – related entities 24 1

Goods and services receivable – external parties 4 9

Total loans and receivables 33 11

Equity interest in:


Total 1,054 964

Carrying amount of financial assets 1,087 975

Financial liabilities

At amortised cost:

Trade creditors and accruals 325 345

Grant payables 117 388

Total financial liabilities at amortised cost 442 733

Carrying amount of financial liabilities 442 733

Note 27B: Net income and expense from financial assets

Financial Assets

Loans and receivables

Interest revenue1 - 100

Net gain from loans and receivables - 100

Net gain from financial assets - 100

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 2013. 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.

1 The prior year figure was omitted from printing in the 2011–12 financial statements.


152



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, 2013: $27,713 (2012: $10,052).

The Department has assessed the risk of the default on payment and has allocated amounts to an impairment

allowance account, 2013: Nil (2012: 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:

2013 2012

$’000 $’000

Financial assets


Cash and cash equivalents 5 1

Receivables 28 10

Equity interest in:


Total 1,087 975


153



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

2013 2012 2013 2012

$’000 $’000 $’000 $’000

Cash and cash equivalents 5 1 - -

Goods and services receivable – related

entities 24 - - -

Goods and services receivable – external

parties - 5 4 5

National Australia Day Council Limited 1,054 964 - -

Total 1,083 970 4 5


0 to 30 31 to 60 61 to 90 90+


$’000 $’000 $’000 $’000 $’000



parties - - - 4 4


Total - - - 4 4


0 to 30 31 to 60 61 to 90 90+


$’000 $’000 $’000 $’000 $’000



parties - - - 5 5


Total - - - 5 5


154



Note 27E: Liquidity riskThe 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.


On Within 1 to 2 2 to 5 > 5

demand 1 year years years years Total

$’000 $’000 $’000 $’000 $’000 $’000

Trade creditors and

accruals - 325 - - - 325

Grant payables - 117 - - - 117

Total - 442 - - - 442


On Within 1 to 2 2 to 5 > 5

demand 1 year years years years Total

$’000 $’000 $’000 $’000 $’000 $’000

Trade creditors and

accruals - 345 - - - 345

Grant payables 388 388

Total - 733 - - - 733

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.


155



Note 28: Administered financial assets reconciliation

2013 2012

$’000 $’000

Financial assets

Total financial assets per schedule of administered assets and liabilities 1,178 1,036

Less non-financial instrument components:

Other receivables 91 61

Total non-financial instrument components 91 61

Total financial assets as per financial instruments note1 1,087 975

1 Figure disclosed net of statutory receivables.


156



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anci

al y

ear-

end.

How

ever

, th

e re

spon

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

Fin

ance

Min

iste

r re

duce

th

at a

ppro

pria

tion

. The

redu

ctio

n in

th

e ap

prop

riat

ion

is e

ffec

ted

by t

he

Fin

ance

Min

iste

r’s

dete

rmin

atio

n a

nd

is d

isal

low

able

by P

arli

amen

t.

In 2

012

–13

ther

e w

as a

n a

djus

tmen

t th

at m

et th

e re

cogn

itio

n c

rite

ria

of a

form

al r

educ

tion

in r

even

ue (i

n a

ccor

dan

ce w

ith

FM

O D

iv 10

1) b

ut a

t law

th

e

appr

opri

atio

ns

had

not

bee

n a

men

ded

befo

re t

he

end

of t

he

rep

orti

ng

peri

od.

On

5 A

ugus

t 20

13, t

he

Fin

ance

Min

iste

r is

sued

th

e de

term

inat

ion

to r

educ

e de

part

men

tal a

ppro

pria

tion

s fo

llow

ing

a re

ques

t by

th

e P

rim

e M

inis

ter.

The

amou

nt o

f th

e re

duct

ion

un

der

App

ropr

iati

on A

ct (N

o.1)

20

12–1

3 w

as: $

2,40

1,00

0 a

nd

unde

r A

ppro

pria

tion

Act

(No.

2) 2

012

–13

was

$7,9

00

,00

0.

(b) A

dvan

ce to

th

e F

inan

ce M

inis

ter

(AF

M) –

App

ropr

iati

on A

cts

(No.

1, 3

) 20

12–1

3: s

ecti

on 13

an

d A

ppro

pria

tion

Act

s (N

o. 2

, 4) 2

012

–13:

sec

tion

15.


157



20

12 A

ppro

pria

tion

sA

ppro

pria

tion

appl

ied

in 2

011

–12

(cur

ren

t an

d

prio

r y

ears

)V

aria

nce

(c)

A

ppro

pria

tion

Act

FMA

Act

To

tal

appr

opri

atio

n

An

nua

l

App

ropr

iati

on

App

ropr

iati

ons

redu

ced(a

)A

FM

(b)

Sect

ion

30

Sect

ion

31

Sect

ion

32

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

DE

PAR

TM

EN

TA

L

Ord

inar

y a

nn

ual s

erv

ices

205,

559

--

-41

,547

(24,

00

5)22

3,10

1(2

57,8

13)

(34,

712)

Oth

er s

erv

ices

Equ

ity

735

--

--

(172

)56

3(3

,288

)(2

,725

)

Lo

ans

--

--

--

--

-

To

tal d

epar

tmen

tal

206,

294

--

-41

,547

(24,

177)

223,

664

(261

,101)

(37,

437)

AD

MIN

IST

ER

ED

Ord

inar

y a

nn

ual s

erv

ices

Adm

inis

tere

d it

ems

260

,176

(35)

-1,

404

-(9

7,531

)16

4,0

14(1

69,0

45)

(5,0

31)

Pay

men

ts to

CA

C A

ct

bodi

es68

5,20

1-

--

-(2

33,2

71)

451,9

30(4

51,9

30)

-

Oth

er s

erv

ices

Adm

inis

tere

d as

sets

and

liab

ilit

ies

175

--

--

-17

5(5

,679

)(5

,50

4)

To

tal a

dmin

iste

red

945,

552

(35)

-1,

404

-(3

30,8

02)

616,

119

(626

,654

)(1

0,5

35)

Not

es:

(a) A

ppro

pria

tion

Act

s (N

o. 1,

3) 2

011

–12:

sec

tion

s 10

, 11,

12 a

nd

15. A

ppro

pria

tion

Act

s (N

o. 2

, 4) 2

011

–12:

sec

tion

s 13

an

d 14

. Dep

artm

enta

l app

ropr

iati

ons

do n

ot

laps

e at

fin

anci

al y

ear-

end.

How

ever

, th

e re

spon

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

Fin

ance

Min

iste

r re

duce

th

at a

ppro

pria

tion

. The

redu

ctio

n in

th

e ap

prop

riat

ion

is e

ffec

ted

by t

he

Fin

ance

Min

iste

r’s

dete

rmin

atio

n a

nd

is d

isal

low

able

by P

arli

amen

t. In

20

11, t

her

e w

as n

o re

duct

ion

in d

epar

tmen

tal a

nd

non

-ope

rati

ng

depa

rtm

enta

l app

ropr

iati

ons.

(b) A

dvan

ce to

th

e F

inan

ce M

inis

ter

(AF

M) –

App

ropr

iati

on A

cts

(No.

1, 3

) 20

11–1

2: s

ecti

on 13

an

d A

ppro

pria

tion

Act

s (N

o. 2

, 4) 2

011

–12:

sec

tion

15.

(c) V

aria

nce

rel

ates

to d

raw

dow

n o

f pri

or y

ear

appr

opri

atio

ns.


158



Not

e 29

B: D

epar

tmen

tal a

nd

adm

inis

tere

d ca

pita

l bud

gets

(‘re

cove

rabl

e G

ST e

xcl

usiv

e’)

20

12–1

3 C

apit

al B

udge

t App

ropr

iati

ons

Cap

ital

Bud

get A

ppro

pria

tion

s ap

plie

d in

2012

–13

(cur

ren

t an

d pr

ior

yea

rs)

Var

ian

ce

A

ppro

pria

tion

Act

FMA

Act

To

tal C

apit

al

Bud

get

App

ropr

iati

ons

Pay

men

ts fo

r

non

-fin

anci

al

asse

ts(c

)

Pay

men

ts fo

r

oth

er p

urp

ose

s

To

tal

pay

men

ts

An

nua

l

Cap

ital

Bud

get

App

ropr

iati

ons

redu

ced(b

)Se

ctio

n 3

2

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

DE

PAR

TM

EN

TA

L

Ord

inar

y a

nn

ual s

erv

ices

Cap

ital

Bud

get(a

)2,

867

--

2,86

7(2

,867

)-

(2,8

67)

-

AD

MIN

IST

ER

ED

Ord

inar

y a

nn

ual s

erv

ices

Cap

ital

Bud

get(a

)24

3(3

)-

240

--

-24

0

Not

es:

(a) D

epar

tmen

tal a

nd

Adm

inis

tere

d C

apit

al B

udge

ts a

re a

ppro

pria

ted

thro

ugh

App

ropr

iati

on A

cts

(No.

1,3,

5). Th

ey fo

rm p

art o

f ord

inar

y a

nn

ual s

erv

ices

and

are

not

sep

arat

ely

iden

tifi

ed in

th

e A

ppro

pria

tion

Act

s. F

or m

ore

info

rmat

ion

on

ord

inar

y a

nn

ual s

erv

ices

app

ropr

iati

on, p

leas

e se

e T

able

A: A

nn

ual

appr

opri

atio

ns.

(b) A

ppro

pria

tion

s re

duce

d un

der

App

ropr

iati

on A

cts

(No.

1,3,

5) 2

012

–13:

sec

tion

s 10

,11,12

an

d 15

or

via

a d

eter

min

atio

n b

y t

he

Fin

ance

Min

iste

r.

(c) P

aym

ents

mad

e on

non

-fin

anci

al a

sset

s in

clud

e pu

rch

ase

of a

sset

s, e

xpe

ndi

ture

on

ass

ets

wh

ich

has

bee

n c

apit

alis

ed, c

ost

s in

curr

ed to

mak

e go

od

an

asse

t to

its

orig

inal

con

diti

on, a

nd

the

capi

tal r

epay

men

t com

pon

ent o

f fin

ance

leas

es.


159



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

2011

–12

(cur

ren

t an

d pr

ior

yea

rs)

Var

ian

ce

A

ppro

pria

tion

Act

FMA

Act

To

tal C

apit

al

Bud

get

App

ropr

iati

ons

Pay

men

ts fo

r

non

-fin

anci

al

asse

ts(c

)

Pay

men

ts fo

r

oth

er p

urp

ose

s

To

tal

pay

men

ts

An

nua

l

Cap

ital

Bud

get

App

ropr

iati

ons

redu

ced(b

)Se

ctio

n 3

2

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

DE

PAR

TM

EN

TA

L

Ord

inar

y a

nn

ual s

erv

ices

Oth

er s

erv

ices

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 a

nn

ual s

erv

ices

Cap

ital

Bud

get(a

)1,9

05

-(6

63)

1,242

(40

9)(7

70)

(1,17

9)63

Not

es:

(a) D

epar

tmen

tal a

nd

Adm

inis

tere

d C

apit

al B

udge

ts a

re a

ppro

pria

ted

thro

ugh

App

ropr

iati

on A

cts

(No.

1,3,

5). Th

ey fo

rm p

art o

f ord

inar

y a

nn

ual s

erv

ices

and

are

not

sep

arat

ely

iden

tifi

ed in

th

e A

ppro

pria

tion

Act

s. F

or m

ore

info

rmat

ion

on

ord

inar

y a

nn

ual s

erv

ices

app

ropr

iati

on, p

leas

e se

e T

able

A: A

nn

ual

appr

opri

atio

ns.

(b) A

ppro

pria

tion

s re

duce

d un

der

App

ropr

iati

on A

cts

(No.

1,3,

5) 2

011

–12:

sec

tion

s 10

,11,12

an

d 15

or

via

a d

eter

min

atio

n b

y t

he

Fin

ance

Min

iste

r.

(c) P

aym

ents

mad

e on

non

-fin

anci

al a

sset

s in

clud

e pu

rch

ase

of a

sset

s, e

xpe

ndi

ture

on

ass

ets

wh

ich

has

bee

n c

apit

alis

ed, c

ost

s in

curr

ed to

mak

e go

od

an

asse

t to

its

orig

inal

con

diti

on, a

nd

the

capi

tal r

epay

men

t com

pon

ent o

f fin

ance

leas

es.


160



Note 29C: Unspent annual appropriations (‘recoverable GST exclusive’)2013 2012

Authority $’000 $’000

Departmental

Appropriation Act (No.1) 2008–09 - 945

Appropriation Act (No.2) 2010–11 114 114

Appropriation Act (No.1) 2011–12 - 9,700

Appropriation Act (No.1) 2011–12 - cash held by the department - 2,640


Appropriation Act (No.1) 2012–13 - cash held by the department 927 -

Appropriation Act (No.1) 2012–13 11,420 -

Appropriation Act (No.2) 2012–13 1,700 -

Total 14,483 13,721

Administered



Appropriation Act (No.1) Capital Budget (ACB) 2010–11 133 133




Appropriation Act (No.1) 2011–12 - cash held by the Department - 1



Appropriation Act (No.1) 2012–13 667 -

Appropriation Act (No.1) Capital Budget (ACB) 2012–13 3 -

Total 1,084 1,174


161



Not

e 29

D: R

educ

tion

in a

dmin

iste

red

item

s (‘r

ecov

erab

le G

ST e

xcl

usiv

e’)

2012

–13

Am

oun

t req

uire

d1 -

by A

ppro

pria

tion

Act

To

tal a

mo

unt

requ

ired

1

To

tal a

mo

unt

appr

opri

ated

2 T

ota

l red

ucti

on3

Ord

inar

y A

nn

ual S

erv

ices

Act

(No.

1)A

ct (N

o.3)

Out

com

e 1

$16,

375,

423.

56$0

.00

$16,

375,

423.

56$1

6,50

2,0

00

.00

$126

,576

.44

Not

es:

1. A

mou

nt r

equi

red

as p

er A

ppro

pria

tion

Act

(Act

1 se

ctio

n 11

; Act

2 s

ecti

on 12

).

2. T

otal

am

oun

t app

ropr

iate

d in

20

12–1

3.

3. T

otal

red

ucti

on e

ffec

tiv

e in

20

13–1

4.

• In

acc

orda

nce

wit

h th

e re

quir

emen

ts o

f th

e F

MO

’s th

e n

umbe

rs in

th

is s

ecti

on o

f th

e ta

ble

mus

t be

disc

lose

d to

th

e ce

nt.

• A

dmin

iste

red

item

s fo

r 20

12–1

3 w

ere

redu

ced

to th

ese

amou

nts

wh

en t

hes

e fi

nan

cial

sta

tem

ents

wer

e ta

bled

in P

arli

amen

t as

part

of t

he

enti

ty’s

2012

–13

ann

ual r

epor

t. Th

is r

educ

tion

wil

l be

effec

tiv

e in

20

14, b

ut t

he

amou

nts

wer

e re

flec

ted

in T

able

A in

th

e 20

12–1

3 fi

nan

cial

sta

tem

ents

in th

e co

lum

n

‘App

ropr

iati

ons

redu

ced

’ as

they

wer

e ad

just

men

ts to

20

12–1

3 ap

prop

riat

ion

s.

2011

–12

Am

oun

t req

uire

d1 -

by A

ppro

pria

tion

Act

To

tal a

mo

unt

requ

ired

1

To

tal a

mo

unt

appr

opri

ated

2 T

ota

l red

ucti

on3

Ord

inar

y A

nn

ual S

erv

ices

Act

(No.

1)A

ct (N

o.3)

Out

com

e 1

$16,

657,0

00

.00

$2,7

35,3

74.0

7$1

9,39

2,37

4.0

7$1

9,42

7,00

0.0

0$3

4,62

5.93

Out

com

e 2

$122

,688

,530

.36

$0.0

0$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

0,5

29,5

13.8

0$2

0,5

29,5

13.8

0$0

.00

Not

es:

1. A

mou

nt r

equi

red

as p

er A

ppro

pria

tion

Act

(Act

1 se

ctio

n 11

; Act

2 s

ecti

on 12

).

2. T

otal

am

oun

t app

ropr

iate

d in

20

11–1

2.

3. T

otal

red

ucti

on e

ffec

tiv

e in

20

12–1

3.

• In

acc

orda

nce

wit

h th

e re

quir

emen

ts o

f th

e F

MO

’s th

e n

umbe

rs in

th

is s

ecti

on o

f th

e ta

ble

mus

t be

disc

lose

d to

th

e ce

nt.

• A

dmin

iste

red

item

s fo

r 20

11–1

2 w

ere

redu

ced

to t

hes

e am

oun

ts w

hen

th

ese

fin

anci

al s

tate

men

ts w

ere

tabl

ed in

Par

liam

ent a

s pa

rt o

f th

e en

tity

’s

2011

–12

ann

ual r

epor

t. Th

is r

educ

tion

was

eff

ecti

ve

in 2

013

, but

the

amou

nts

wer

e re

flec

ted

in T

able

A in

th

e 20

11–1

2 fi

nan

cial

sta

tem

ents

in t

he

colu

mn

‘App

ropr

iati

ons

redu

ced

’ as

they

wer

e ad

just

men

ts to

20

11–1

2 ap

prop

riat

ion

s.


162



Not

e 30

: Spe

cial

acc

oun

ts a

nd

FMA

Act

Sec

tion

39

Not

e 30

A: S

peci

al a

ccou

nts

(‘re

cove

rabl

e G

ST e

xcl

usiv

e’)

Serv

ices

for

Oth

er

En

titi

es a

nd

Tru

st

Mon

eys1

Art

s R

enta

l Sp

ecia

l

Acc

oun

t3

Cul

tura

l Min

iste

r’s

Co

unci

l Sp

ecia

l

Acc

oun

t4

Cul

tura

l Sp

ecia

l

Acc

oun

t5

Nat

ion

al

Col

lect

ion

s Sp

ecia

l

Acc

oun

t6

2013

2012

220

1320

1220

1320

1220

1320

1220

1320

12

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

Bal

ance

bro

ugh

t for

war

d fr

om

prev

ious

per

iod

672

--

1,888

-55

1-

--

227

Rec

eipt

s fr

om s

ale

of g

oo

ds a

nd

ren

deri

ng

of s

erv

ices

--

-1,5

25-

180

--

-20

Oth

er r

ecei

pts

2,27

567

2-

--

--

255

--

Tot

al in

crea

ses

2,27

567

2-

1,525

-18

0-

255

-20

Av

aila

ble

for

pay

men

ts2,

947

672

-3,

413

-73

1-

255

-24

7

Dec

reas

es:

Dep

artm

enta

l

Pay

men

ts m

ade

to s

uppl

iers

--

-(6

57)

-(3

76)

--

-(5

3)

Pay

men

ts m

ade

to e

mpl

oyee

s-

--

(851

)-

--

--

-

Pay

men

ts m

ade

to g

ran

ts-

--

--

(10

0)

--

--

Pay

men

ts m

ade

- oth

er(2

,90

0)

--

--

(255

)-

--

-

Res

truc

turi

ng*

--

-(1

,90

5)-

--

(255

)-

(194

)

Tot

al d

epar

tmen

tal d

ecre

ases

(2,9

00

)-

-(3

,413

)-

(731

)-

(255

)-

(247

)

Adm

inis

tere

d

Pay

men

ts m

ade

to s

uppl

iers

--

--

--

--

--

To

tal a

dmin

iste

red

decr

ease

s-

--

--

--

--

-

Tot

al d

ecre

ases

(2,9

00

)-

-(3

,413

)-

(731

)-

(255

)-

(247

)

Tot

al b

alan

ce c

arri

ed to

the

next

per

iod

4767

2-

--

--

--

-

* A

s a

con

sequ

ence

of t

he

Adm

inis

trat

ive

Arr

ange

men

ts O

rder

of 1

4 D

ecem

ber

2011

, th

ese

spec

ial a

ccou

nts

wer

e tr

ansf

erre

d to

DR

ALG

AS.


163



Not

e 30

: Sp

ecia

l acc

oun

ts a

nd

FM

A A

ct s

ecti

on 3

9

Not

e 30

: Spe

cial

acc

oun

ts a

nd

FM

A A

ct S

ecti

on 3

9 (c

onti

nue

d)

Nat

ion

al P

ortr

ait

Gal

lery

Sp

ecia

l

Acc

oun

t7

Ret

urn

of I

ndi

gen

ous

Cul

tura

l Pro

per

ty

Spec

ial A

cco

unt8

Nat

ion

al C

ultu

ral

Her

itag

e Sp

ecia

l

Acc

oun

t9

Spor

ts a

nd

Rec

reat

ion

Spec

ial A

cco

unt10

2013

2012

2013

2012

2013

2012

2013

2012

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

Bal

ance

bro

ugh

t for

war

d fr

om p

rev

ious

per

iod

-5,

547

-2,

363

-25

5-

920

App

ropr

iati

on fo

r re

por

tin

g pe

rio

d-

267

-82

9-

--

-

Oth

er r

ecei

pts

-69

-1

--

-29

2

Tot

al in

crea

se-

336

-83

0-

--

292

Av

aila

ble

for

pay

men

ts-

5,88

3-

3,19

3-

255

-1,2

12

Dec

reas

es:

Dep

artm

enta

l

Pay

men

ts m

ade

to s

uppl

iers

-(8

4)-

(62)

--

--

Pay

men

ts m

ade

to g

ran

ts-

--

(93)

--

--

Pay

men

ts m

ade

- oth

er-

--

--

--

-

Res

truc

turi

ng*

-(5

,799

)-

(3,0

38)

--

--

Tot

al d

epar

tmen

tal d

ecre

ases

-(5

,883

)-

(3,19

3)-

--

-

Adm

inis

tere

d

Pay

men

ts m

ade

to s

uppl

iers

--

--

--

-(3

82)

Pay

men

t mad

e to

gra

nts

--

--

-(1

6)-

-

Res

truc

turi

ng*

--

--

-(2

39)

-(8

30)

To

tal a

dmin

iste

red

decr

ease

s-

--

--

(255

)-

(1,2

12)

Tot

al d

ecre

ases

-(5

,883

)-

(3,19

3)-

(255

)-

(1,2

12)

Tot

al b

alan

ce c

arri

ed to

the

next

per

iod

--

--

--

--

* A

s a

con

sequ

ence

of t

he

Adm

inis

trat

ive

Arr

ange

men

ts O

rder

of 1

4 D

ecem

ber

2011

, th

ese

spec

ial a

ccou

nts

wer

e tr

ansf

erre

d to

DR

ALG

AS.


164



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 The prior year figure for unpaid funds held on behalf of employees was omitted from printing in the 2011–12 financial

statements.


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.



(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)


5 Appropriation: Financial Management and Accountability Act 1997; section 20 Establishing Act: 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.



(a) conducting projects, programmes and strategies approved by the responsible agency, associated with future

directions, needs and priorities of the collection sector




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.


165





( a) developing and conducting projects, programmes and strategies associated with the repatriation of indigenous

cultural material, on behalf of the Cultural Ministers’ Council



9 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.

10 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.


166



Note 31: Compensation and debt relief

Departmental

No ‘Act of Grace’ expenses were incurred during the reporting period (2012: No expenses).

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the

Financial Management and Accountability Act 1997 (2012: No waivers).

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA)

Scheme during the reporting period (2012: No payments).

No ex-gratia payments were provided for during the reporting period (2012: No payments).

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the

Public Service Act 1999 (PS Act) during the reporting period (2012: No payments).

Administered

No ‘Act of Grace’ expenses were incurred during the reporting period (2012: No expenses).

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the

Financial Management and Accountability Act 1997 (2012: No waivers).

No payments were provided under the Compensation for Detriment caused by Defective Administration

(CDDA) Scheme during the reporting period (2012: No payments).

No ex-gratia payments were provided for during the reporting period (2012: No payments).

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the

Public Service Act 1999 (PS Act) during the reporting period (2012: No payments).


167



Note 32: Assets held in trust

2013 2012

$’000 $’000

Monetary assets - Cash at bank1

Total amount held at the beginning of the reporting period 672 -

Receipts 2,275 672

Payments (2,900) -

Total amount held at the end of the reporting period 47 672

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.

1 The prior year figure for unpaid funds held on behalf of employees was omitted from printing in the 2011–12 financial

statements.


168



Not

e 33

: R

epor

tin

g of

out

com

es

The

Dep

artm

ent a

ttri

bute

s co

rpor

ate

shar

ed it

ems

base

d up

on a

ver

age

staf

fin

g le

vel

s to

refl

ect f

ull c

ost

of d

eliv

ery.

The

basi

s of

att

ribu

tion

in th

e

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

of o

utco

me

deli

very

O

utco

me

1O

utco

me

2O

utco

me

3

Pay

men

ts to

CA

C A

ct b

odi

es*

To

tal

20

1320

1220

1320

1220

1320

1220

1320

1220

1320

12

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

Dep

artm

enta

l

Ex

pen

ses

(155,

552)

(194

,649

)-

(20

,368

)-

(3,3

90)

(155,

552)

(218

,40

7)

Ow

n-s

ourc

e in

com

e26

,992

35,11

2-

1,40

5-

8

26

,992

36,5

25

Adm

inis

tere

d

Ex

pen

ses

(15,9

17)

(17,0

48)

-(1

27,3

10)

-(2

0,18

5)-

(451

,930

)(15

,917

)(6

16,4

73)

Ow

n-s

ourc

e in

com

e11

962

-2,

231

-39

4

11

92,

687

Net

co

st o

f out

com

e de

liv

ery

(144,

358)

(176

,523

)-

(144

,042

)-

(23,

173)

-(4

51,9

30)

(144,

358)

(795

,668

)

Not

e: F

urth

er in

form

atio

n o

n o

utco

mes

is d

etai

led

in N

ote

1.1


169



Not

e 33

B: M

ajor

cla

sses

of d

epar

tmen

tal e

xpe

nse

inco

me

asse

ts a

nd

liab

ilit

ies

by o

utco

me

O

utco

me

1O

utco

me

2O

utco

me

3T

ota

l

20

1320

1220

1320

1220

1320

1220

1320

12

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

Dep

artm

enta

l Ex

pen

ses:

Em

ploy

ee b

enefi

ts(8

8,28

8)(9

1,661

)-

(14,

814)

-(3

,111)

(88,

288)

(10

9,58

6)

Supp

lier

ex

pen

ses

(58,

00

5)(9

3,95

7)-

(3,9

25)

-(2

57)

(58,

00

5)(9

8,13

9)

Gra

nts

(9

15)

(2,0

61)

-(1

96)

--

(915

)(2

,257

)

Dep

reci

atio

n a

nd

amor

tisa

tion

(7

,938

)(6

,715

)-

(1,4

33)

-(2

2)(7

,938

)(8

,170

)

Fin

ance

co

sts

(9)

(7)

--

--

(9)

(7)

Lo

sses

fro

m a

sset

sal

es(3

97)

(248

)-

--

-(3

97)

(248

)

Tot

al(15

5,55

2)(1

94,6

49)

-(2

0,3

68)

-(3

,390

)(15

5,55

2)(2

18,4

07)

Dep

artm

enta

l in

com

e:

Sale

s of

go

ods

an

d re

nde

rin

g of

ser

vic

es

25,16

931

,40

3-

779

--

25,16

932

,182

Res

ourc

es r

ecei

ved

fre

e of

ch

arge

1,823

3,61

3-

626

-8

1,823

4,24

7

Rev

ersa

ls o

f pre

vio

us a

sset

wri

te-d

own

s

and

impa

irm

ent

-96

--

--

-96

Rev

enue

fro

m G

over

nm

ent

120

,962

153,

260

-15

,50

3-

2,60

512

0,9

6217

1,368

Tot

al14

7,954

188,

372

-16

,90

8-

2,61

314

7,954

207,

893

Dep

artm

enta

l ass

ets

Cas

h a

nd

cash

equ

ival

ents

927

2,64

0-

--

-92

72,

640

Tra

de a

nd

oth

er r

ecei

vab

les

17,0

1916

,90

6-

--

-17

,019

16,9

06

Acc

rued

rev

enue

1,3

105,

378

--

--

1,310

5,37

8

Pro

pert

y, p

lan

t an

d eq

uipm

ent

31,12

434

,517

--

--

31,12

434

,517

Inta

ngi

bles

5,36

75,

795

--

--

5,36

75,

795

Pre

pay

men

ts4,

013

1,310

--

--

4,0

131,3

10

Tot

al59

,760

66,5

46-

--

-59

,760

66,5

46

Dep

artm

enta

l lia

bili

ties

Supp

lier

s(4

,721

)(7

,687

)-

--

-(4

,721

)(7

,687

)

Gra

nts

(528

)(3

99)

--

--

(528

)(3

99)

Oth

er p

ayab

les

(3,9

74)

(3,4

87)

--

--

(3,9

74)

(3,4

87)

Em

ploy

ee p

rov

isio

ns

(23,

663)

(21,9

18)

--

--

(23,

663)

(21,9

18)

Oth

er p

rov

isio

ns

(6,8

17)

(5,7

19)

--

--

(6,8

17)

(5,7

19)

Tot

al(3

9,70

3)(3

9,21

0)

--

--

(39,

703)

(39,

210

)


170



Not

e 33

C: M

ajor

cla

sses

of a

dmin

iste

red

expe

nse

s, in

com

e, a

sset

s, a

nd

liab

ilit

ies

by o

utco

mes

Out

com

e 1

Out

com

e 2

Out

com

e 3

Pay

men

ts to

CA

C A

ct b

odi

esT

ota

l

20

1320

1220

1320

1220

1320

1220

1320

1220

1320

12

$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0$’

00

0

Adm

inis

tere

d ex

pen

ses:

Em

ploy

ee b

enefi

ts(9

56)

(828

)-

--

--

-(9

56)

(828

)

Supp

lier

s(5

,376

)(5

,789

)-

(3,6

07)

-(1

86)

--

(5,3

76)

(9,5

82)

Gra

nts

(8,8

88)

(9,2

47)

-(1

22,8

89)

-(1

9,99

9)-

-(8

,888

)(15

2,13

5)

Dep

reci

atio

n a

nd

amor

tisa

tion

(284

)(6

14)

-(8

14)

--

--

(284

)(1

,428

)

Fin

ance

co

sts

(412

)(5

66)

--

--

--

(412

)(5

66)

Lo

sses

fro

m a

sset

sal

es(1)

(4)

--

--

--

(1)(4

)

Pay

men

ts to

CA

C A

ct b

odi

es-

--

--

--

(451

,930

)-

(451

,930

)

Tot

al(15

,917

)(1

7,048

)-

(127

,310

)-

(20

,185)

-(4

51,9

30)

(15,9

17)

(616

,473

)

Adm

inis

tere

d in

com

e:

Inte

rest

--

--

-10

0-

--

100

Oth

er r

even

ue11

962

-2,

231

-29

4-

-11

92,

587

Tot

al11

962

-2,

231

-39

4-

-11

92,

687

Adm

inis

tere

d as

sets

Cas

h a

nd

cash

equ

ival

ents

51

--

--

--

51

Tra

de a

nd

oth

er r

ecei

vab

les

119

71-

--

--

-11

971

Equ

ity

acc

oun

ted

inv

estm

ents

1,054

964

--

--

--

1,054

964

Pro

pert

y, p

lan

t an

d eq

uipm

ent

1,753

1,788

--

--

--

1,753

1,788

Oth

er n

on-fi

nan

cial

ass

ets

6497

--

--

--

6497

Tot

al2,

995

2,92

1-

--

--

-2,

995

2,92

1

Adm

inis

tere

d li

abil

itie

s

Supp

lier

s(3

25)

(345

)-

--

--

-(3

25)

(345

)

Gra

nts

(117

)(3

88)

--

--

--

(117

)(3

88)

Oth

er p

ayab

les

(101)

(56)

--

--

--

(101)

(56)

Em

ploy

ee p

rov

isio

ns

(365

)(3

70)

--

--

--

(365

)(3

70)

For

mer

Gov

ern

ors-

Gen

eral

prov

isio

n(1

2,82

0)

(13,

640

)-

--

--

-(1

2,82

0)

(13,

640

)

Oth

er p

rov

isio

n(16

9)(1

32)

--

--

--

(169)

(132

)

Tot

al(13

,897

)(1

4,93

1)-

--

--

-(13

,897

)(1

4,93

1)


171



Note 34: Net cash appropriation arrangements

2013 2012

$’000 $’000

Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through

revenue appropriations1 396 (2,344)

Plus: depreciation/amortisation expenses previously funded through revenue appropriation 7,938 8,170

Total comprehensive income (loss) - as per the Statement of Comprehensive Income (7,542) (10,514)

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: Glossary and indexes

Compliance index ..............................................................................................................................................................173

Index of figures ................................................................................................................................................................... 176

List of abbreviations .........................................................................................................................................................177

Glossary of key terms ....................................................................................................................................................180

Alphabetical index ........................................................................................................................................................... 182

PART 5: GLOSSARY AND INDEXES

173

Compliance index

As per the Requirements for departmental annual reports, below is the compliance index providing a response and

page reference for the location of each item.

Figure 5.1 Compliance index

Description Requirement

Location

page no.

Letter of transmittal Mandatory iii

Table of contents Mandatory vi–vii

Index Mandatory 182–189

Glossary Mandatory 180–181

Contact officer(s) Mandatory ii

Internet home page address and Internet address for report Mandatory ii

Review by departmental secretary Mandatory 5–7

Summary of significant issues and developments Suggested 5–7

Overview of Department’s performance and financial results Suggested v, 5–7, 11–49,

70–171

Outlook for following year Suggested 7

Significant issues and developments – portfolio Portfolio departments –

suggested

1–4

Role and functions Mandatory v, 2–6

Organisational structure Mandatory 3

Outcome and program structure Mandatory 4

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 1–4

Portfolio structure Portfolio departments –

mandatory

1

Review of performance during the year in relation to programs and

contribution to outcomes

Mandatory 11–49

Actual performance in relation to deliverables and KPIs set out in PB

Statements/PAES or other portfolio statements

Mandatory 11–49

Where performance targets differ from the PBS/PAES, details of both

former and new targets and reasons for the change

Mandatory 4

Narrative discussion and analysis of performance Mandatory 11–49

Trend information Mandatory 11–68


174


Location

page no.

Significant changes in nature of principal functions/ services Suggested 1–4

Factors, events or trends influencing departmental performance Suggested 1–49

Performance of purchaser/provider arrangements If applicable, suggested Not Applicable

Contribution of risk management in achieving objectives Suggested 52

Social inclusion outcomes If applicable, mandatory 18

Performance against service charter customer service standards,

complaints data and the Department’s response to complaints

If applicable, mandatory Not Applicable

Discussion and analysis of the Department’s financial performance Mandatory 70–171

Discussion of any significant changes from the prior year or from budget,

or anticipated to have a significant impact on future operations

Suggested 70–171

Agency resource statement and summary resource tables by outcomes Mandatory 70–74

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 51–53

Names of the senior executive and their responsibilities Suggested 3

Senior management committees and their roles Suggested 51–52

Corporate and operational planning and associated performance

reporting and review

Suggested 51–53

Approach adopted to identifying areas of significant financial or

operational risk

Suggested 52

Policy and practices on the establishment and maintenance of appropriate

ethical standards

Suggested 52–53

How nature and amount of remuneration for SES officers is determined Suggested 63

Significant developments in external scrutiny Mandatory 53–54

Judicial decisions and decisions of administrative tribunals Mandatory 54

Reports by the Auditor-General, a Parliamentary Committee or the

Commonwealth Ombudsman

Mandatory 53

Assessment of effectiveness in managing and developing human

resources to achieve departmental objectives

Mandatory 54–55

Workforce planning, staff turnover and retention Suggested 55

Impact and features of enterprise or collective agreements,

determinations, common law contracts and AWAs

Suggested 63–64

Training and development undertaken and its impact Suggested 57–60

Work health and safety performance Suggested 62

Productivity gains Suggested 63

Statistics on staffing Mandatory 56


175


Location

page no.

Enterprise or collective agreements, IFAs, determinations, common law

contracts and AWAs

Mandatory 63–64

Performance pay Mandatory 63

Assessment of effectiveness of assets management If applicable, mandatory 64

Assessment of purchasing against core policies and principles Mandatory 64

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 64–65

Absence of provisions in contracts allowing access by the

Auditor-General

Mandatory 64

Contracts exempt from AusTender Mandatory 65

Financial Statements Mandatory 70–171

Work health and safety (Part 4 of the Work Health and Safety Act 2011) Mandatory 62

Advertising and Market Research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory 65

Ecologically sustainable development and environmental performance

(Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory 66–68

Compliance with the agency’s obligations under the Carer Recognition

Act 2010

Not Applicable

Grant programs Mandatory 65

Disability reporting – explicit and transparent reference to agency-level

information available through other reporting mechanisms

Mandatory 62

Spatial reporting – expenditure by program between regional and

non-regional Australia

If applicable, mandatory Not Applicable

Correction of material errors in previous annual report If applicable, mandatory Not Applicable

List of Requirements Mandatory 173–175


176

Index of figures

Figure 5.2 List of figures

Figures

Figure 1.1 Departmental structure as at 30 June 2013 3

Figure 1.2 PM&C’s outcome and program framework 4

Figure 2.1 KPIs for the Domestic Policy Group 12

Figure 2.2 KPIs for the National Security and International Policy Group 25

Figure 2.3 KPIs for the Governance Group 33

Figure 2.4 Freedom of information requests and performance 36

Figure 2.5 Performance relating to processed correspondence and parliamentary questions 38

Figure 2.6 Summary of ceremonial and hospitality services 42

Figure 2.7 Services to the Cabinet and other decision makers 43

Figure 2.8 KPIs for the G20 Taskforce 47

Figure 3.1 Departmental committees 51

Figure 3.2 Staff distribution figures (based on headcount) 55

Figure 3.3 Workforce profile (based on headcount) 56

Figure 3.4 Trends in employment agreements 63

Figure 3.5 Trends in base salary 63

Figure 3.6 Trends in consultancies 65

Figure 3.7 Impact of Department’s operations on the environment 68

Figure 5.1 Compliance Index 173

Figure 5.2 List of figures 176

Figure 5.3 Abbreviations 177


177

List of abbreviations

Figure 5.3 Abbreviations

Abbrev Full title

AAO Administrative Arrangements Order

AC Companion of the Order of Australia

ACSC Australian Cyber Security Centre

ADF Australian Defence Force

AE Additional Estimates

AIC Australian Information Commissioner

AGD Attorney-General’s Department

ANAO Australian National Audit Office

ANU Australian National University

Anzac Australia and New Zealand Army Corps

ANZCTC Australia-New Zealand Counter-Terrorism Committee

ANZSOG Australia and New Zealand School of Government

APEC Asia–Pacific Economic Cooperation forum

APS Australian Public Service

APS PIN Australian Public Service Policy Implementation Network

APSC Australian Public Service Commission

ASEAN Association of Southeast Asian Nations

ASEM Asia-Europe Meeting

AWA Australian Workplace Agreement

AWLA Australian Women’s Land Army

B20 Business 20

BAF Business Advisory Forum

BE Budget Estimates

CAC Act Commonwealth Authorities and Companies Act 1997

CIU Cabinet Implementation Unit

CHOGM Commonwealth Heads of Government Meeting

CPRs Commonwealth Procurement Rules

COAG Council of Australian Governments

http://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations


178

Abbrev Full title

CRC COAG Reform Council

CSOB Cyber Security Operations Board

DBCDE Department of Broadband, Communications and the Digital Economy

DCA DisabilityCare Australia

DEEWR Department of Education, Employment and Workplace Relations

Defence Department of Defence

DFAT Department of Foreign Affairs and Trade

DIAC Department of Immigration and Citizenship

DIICCSRTE Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education

DoHA Department of Health and Ageing

DRALGAS Department of Regional Australia, Local Government, Arts and Sport

DSEWPAC Department of Sustainability, Environment, Water, Population and Communities

EA PM&C Enterprise Agreement 2011–14

EAS East Asia Summit

ELG Executive Leadership Group

EMS Environmental Management System

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

FaHCSIA Department of Families, Housing, Community Services and Indigenous Affairs

FMA Financial Management and Accountability Act 1997

FOI freedom of information

FOIC Freedom of Information Commissioner

G20 Group of Twenty Finance Ministers and Central Bank Governors

GDP Graduate Development Program

IGA Intergovernmental agreement

INSLM Independent National Security Legislation Monitor

ISO International standard

KPI Key performance indicator

MP Member of Parliament

NADC National Australia Day Council

NAIDOC National Aboriginal and Islander Day Observance Committee

NCTC National Counter-Terrorism Committee

NDIS National Disability Insurance Scheme


179

Abbrev Full title

NERA National Education Reform Agreement

NPA National Partnership Agreement

NPER National Panel for Economic Reform

NPSI National Plan for School Improvement

OECD Organisation for Economic Co-operation and Development

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PLC People and Leadership Committee

PM&C Department of the Prime Minister and Cabinet

PMDS Performance Management and Development Scheme

QON Question on Notice

SBE Supplementary Budget Estimates

SDD Strategy and Delivery Division

SES Senior Executive Service

UN United Nations

VEP Vacation Employment Program

WHS Act Work Health and Safety Act 2011

WH&S Work Health and Safety


180

Glossary of key terms

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.

Agency: a Department of State, Department of Parliament and prescribed agency under the Financial Management

and Accountability Act 1997.

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.

Central Agency: the Department of the Prime Minister and Cabinet, the Departments of Finance and Deregulation

and the Treasury.

Chief Executive’s Instruction: instructions and guidance provided for accountability requirements under the

Financial Management and Accountability Act 1997.

Closing the Gap: 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.

Commonwealth Procurement Rules (CPRs): establishes the core procurement policy framework and articulates

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 Cabinet 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.

Intergovernmental Agreement (IGA): a mechanism that allows for policy or project collaboration between the

Commonwealth and the State and Territory Governments, defining the roles and responsibilities of each party

and the agreed objectives and outcomes.

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 AAO following a Prime Ministerial decision to

abolish or create a department or to move functions/responsibilities between departments or agencies and the

creation of new statutory agencies or executive agencies, or abolition of such agencies.


181

Mid-Year Economic and Fiscal Outlook: updates the economic and fiscal outlook from the previous Budget. It is

released each year by the end of January or six months after the last Budget, whichever is later.

National Partnership Agreement (NPA): a mechanism that allows for policy or project collaboration between

the Commonwealth and the State and Territory Governments. A NPA generally provides for financial transfers

between the Commonwealth and the States to support this collaboration.

National Security Committee of Cabinet (NSC): focuses on major international security issues of strategic

importance to Australia, border protection policy, national responses to developing situations and classified

matters relating to the Australian Intelligence Community.

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.

Portfolio Additional Estimates Statements (PAES): 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): explains 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 ‘the portfolio’.

Royal Commission: a government inquiry established by the Governor-General pursuant to the Royal Commissions

Act 1902.

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.

Senate Estimates: estimates of government expenditure are referred to Senate committees as part of the annual

budget cycle.


182

AAboriginal and Torres Strait Islander people, v, 56,

60, 62; see also Indigenous AustraliansAboriginal Flag, 37accountability and management, 51–68administered finances, 70, 72; see also financial

statements; resource statementAdministration of Government Advertising Arrangements:

August 2011 to March 2013 (ANAO audit report), 53Administrative Arrangements Order, 34Adult Public Dental Services NPA, 13; see also dental

health reformsadvertising and market research, 65

ANAO audit of, 53affordable housing, 16Afghan National Security Forces, 32Afghanistan, 5, 24, 28, 32, 41age of staff, v, 54, 56; see also staff statisticsaged care, opportunities in Asia, 21agricultural land, foreign ownership, register of, 12agriculture policy, 14, 16aid policy, 24, 29airport facilitations, 42APEC Leaders’ Meeting, 24, 29, 41APS; see Australian Public Service (APS)Asia-Europe Meeting, 24, 29, 41Asia-Pacific Economic Cooperation forum Leaders’

Meeting, 24, 29, 41Asia-relevant capabilities, 5, 7, 21; see also Australia in the

Asian Century White PaperAsian Century Capability Strategy (APS), 21; see also

Asia-relevant capabilities; Australia in the Asian Century White Paper

asylum seekers, 25, 26; see also border security mattersAttorney-General’s Department, 22, 60audit

external, 53internal, 37, 38, 51

Audit Committee, 37AusTender, 64

consultancy reporting, 65Australasian Joint Agencies Scanning Network, 21Australia – New Zealand Counter-Terrorism

Committee, 25, 26, 27Australia – New Zealand Leaders’ Meeting, 29Australia and New Zealand School of Government, 58Australia Day Awards, 37, 42Australia Day Council, 1, 37, 65

Australia in the Asian Century Taskforce, 5, 8, 21Australia in the Asian Century White Paper, 5, 8, 11, 16, 21,

29, 31, 44Australia in the Asian Century (White Paper)

Implementation Taskforce, 5, 21Australian Bravery Decorations Council, 36Australian Charities and Not-for-profits Commission,

11, 18; see also charities, support forAustralian Civilian Corps, deployment, 32Australian Customs and Border Protection Service

reform agenda, 26; see also border security mattersAustralian Cyber Security Centre, 5, 25, 26; see also

cyber securityAustralian Defence Force Posture Review, 28Australian Government Branding Design Guidelines,

37Australian Government Crisis Management

Framework, 25, 26Australian Honours and Awards Secretariat, 37Australian Information Commissioner, 54Australian Institute of National Policy, 58Australian Local Government Association, 20Australian National Anthem, 37Australian National Audit Office (ANAO), 1, 53

independent auditor’s report, 76–77Australian National Flag, 37Australian National University, 44, 58Australian Network on Disability, 62Australian of the Year Awards, 37, 42Australian Public Service (APS)

Asian Century Capability Strategy, 21Code of Conduct, 52–53Diversity Council, 6, 60embedding of Asia-relevant capabilities, 5, 7, 21Policy Implementation Network, 44, 46Values, 52–53

Australian Public Service Commission (APSC), 1Indigenous Pathways Graduate Program, 57, 59Senior Executive Service Leadership Development

Framework, 44Australian Social Inclusion Board, 18; see also social

inclusion policyAustralian Trade Commission, 53Australian Women’s Land Army, 36, 42Australiana Fund, 65awards and medals, 8, 36; see also honours and

awards policy

Alphabetical index


183

BB20; see Business 20 (B20) Leadership GroupBali bombings Memorial Service, 24, 30, 41, 42Bali Democracy Forum, 24Bali Memorial Assistance package, 30Better Schools Plan, 23; see also education funding

reforms; Review of Funding for SchoolingBiennial Australian Implementation Conference, 44bilateral relationships, 24, 29, 31; see also trade policyBorder Protection Taskforce, 26border security matters, 2, 24, 26briefs, v, 29, 32, 33, 34, 37, 38Brunei Darussalam, Head of State visit, 29, 41Building Australia’s Future Workforce package, 13Business Advisory Forum, 12, 18, 19, 20Business 20 (B20) Leadership Group, 20business planning, 54, 59

CCabinet

records, preservation of, 43, 44support services, v, 32, 43–45

Cabinet Division, 32, 43–45Cabinet Handbook, 44Cabinet Implementation Unit, 32, 44Cabinet Operations team, 45Cabinet Secretariat, 43, 45Cambodia, 5, 41

see also East Asia SummitCapability Action Plan, 33, 47, 59; see also Capability

Review, implementation ofcapability development, staff, 47, 54, 57–58; see also

Capability Review, implementation of; staff development and training

Capability Review, implementation of, 5, 6, 33, 54, 58, 59ceremonial support and hospitality services, 4, 32, 33,

37, 41–42charities, support for, 11, 16, 18, 39Charter of the Commonwealth, 32child sexual abuse, Royal Commission on, 5, 16, 21, 22,

33, 34childhood development, early, 13, 14children’s dental services, 5, 13; see also dental health

reformsChile, Head of State visit, 41China, 5, 8, 24, 29, 31, 41, 42, 48classifications, staff, 56Clean Energy Future Package, 16climate change policy, 14, 15

Closer Economic Relations agreement, 29Closing the Gap for Indigenous Australians, 16COAG; see Council of Australian Governments (COAG)Code of Best Practice for Engagement (not-for-profit

sector), 18; see also not-for-profit sector, support forCode of Conduct (APS), 52–53Comcare, 62committees, departmental, 51–52Commonwealth Coat of Arms, 37Commonwealth company, 1, 37; see also National

Australia Day Council LimitedCommonwealth Flag Network, 37Commonwealth-State relations, 15, 18, 19, 23, 27; see also

Council of Australian Governments (COAG)Community Cabinet meetings, 33, 37, 39competition and regulatory reforms, 12, 18, 19, 20complaints handling, FOI requests, 54constitutional policy matters, 5, 16, 34Constitutional recognition of Indigenous Australians, 16consultants, 64–65consumer credit reforms, 12contracts, 64Control of Credit Card Use (ANAO audit report), 53Cook Islands, 41

see also Pacific Islands ForumCoordinated National Security Budget, 25, 28; see also

national securitycorporate governance, 37, 38, 47, 51–53, 58Corporate Services Division, 32, 47correspondence, ministerial, v, 32, 37, 38Council for the Order of Australia, 36Council of Australian Governments (COAG), 2, 5, 11, 19,

20, 44counter-terrorism review, 26meetings, 20, 42reform agendas, 12, 16, 19Reform Council (CRC), 19Senior Official Working Group on Early

Childhood Education, 14Working Group on Mental Health Reform, 13

counter-terrorism matters, 2, 25, 26, 27, 30court cases, 36, 54criminal history information sharing, 28crisis management matters, 2, 25, 26cultural policy, 12, 13Cyber Policy and Homeland Security Division, 24,

26–28Cyber Policy Group (interdepartmental), 26cyber security, 2, 5, 24, 25, 26Cyber Security Challenge, 26Cyber Security Operations Board, 26cyclone recovery program, 11, 16


184

DDefence, Intelligence and Information Sharing

Division, 24, 28defence policy, 2, 24, 28Deliver a Seamless National Economy NPA, 18deliverables, v, 11; see also key performance indicatorsdental health reforms, 5, 11, 12, 13Dental Reform Package, 13; see also dental health reformsDepartment of Agriculture, Fisheries and Forestry, 16Department of Broadband, Communications and the

Digital Economy, 53Department of Climate Change and Energy Efficiency,

53, 60Department of Defence, 36, 37, 46Department of Education, Employment and Workplace

Relations, 5, 13, 14, 19, 23Department of Families, Housing, Community

Services and Indigenous Affairs, 5, 17, 22, 53Department of Finance and Deregulation, 12, 18, 25, 53Department of Foreign Affairs and Trade, 29, 37, 48Department of Health and Ageing, 5, 11, 13Department of Human Services, 16Department of Immigration and Citizenship, 13Department of Industry, Innovation, Science, Research

and Tertiary Education, 15Department of Infrastructure and Transport, 15Department of Regional Australia, Local Governments,

Arts and Sport, 13, 15Department of Sustainability, Environment, Water,

Population and Communities, 15, 16development and training, staff, 47, 54, 57–58, 62; see also

Capability Review, implementation ofdigital economy, 14, 15, 20, 21Digital Economy Forum, 15, 20; see also digital economydisability insurance, 5, 11, 16, 17, 44; see also

DisabilityCare Australia; National Disability Insurance Scheme (NDIS)

Disability Management Service, 13DisabilityCare Australia, 5, 11, 17

rollout, 16see also National Disability Insurance Scheme (NDIS)

DisabilityCare Australia Advisory Council, 17DisabilityCare Australia Board, 17disaster recovery NPA, 11, 16diversity, workplace, 6, 54, 60–62Diversity Champion, 60Diversity Council (APS), 6, 61Domestic Policy Group, 2

performance report, 11–23domestic violence prevention, 16drought assistance, 16

Eearly childhood education, 13, 14East Asia Summit, 24, 29, 41East Timor, transition planning, 28ecologically sustainable development and

environmental performance report, 66–68Economic Division, 11, 18–20economic policy cooperation, 6, 18; see also Group of

Twenty (G20)education, early childhood, 13, 14education and training systems, national, 12, 13, 15, 20education funding reforms, 5, 11, 13, 14, 21, 23employee assistance program, 62employee statistics, v, 6, 54, 55–56, 61employment policy, 12, 13employment programs, departmental, 57, 59–60Employment Services, review of, 13energy market reforms, 16Enterprise Agreement 2011–14, 63environmental performance, departmental, 66–68environmental policy, 14, 15, 16equal employment opportunity statistics, 56; see also

staff statistics; workforce diversityethical standards, 52–53events coordination, 32, 41–42; see also ceremonial

support and hospitality servicesex-tropical cyclone Oswald, recovery program, 11, 16expenditure; see financial statements; resource

statementExpenditure Review Committee (Cabinet), 18Expert Panel on Asylum Seekers, 25, 26external scrutiny, 53–54

FFair Work Act Review, 12, 19farmers, income support for, 16Federal Executive Council, 43, 44financial management, 47financial statements, 70–171fiscal policy, 12, 18flags, 37floods, recovery program, 11; see also natural disaster

recovery measuresforeign aid, 24, 29foreign awards and medals, guidelines on, 37foreign ownership, agricultural land, 12foreign policy, 2, 24forests, Tasmanian, 11, 15, 16


185

Forum on the Digital Economy, 15, 20; see also digital economy

fraud control, 37, 38, 51, 53freedom of information, 33, 36, 44, 54

GG20; see Group of Twenty (G20)General Division of the Order of Australia, 37governance arrangements, internal, 37, 38, 47, 51–53, 58Governance Group, 2

performance report, 32–49Government Division, 32, 34–37Governor-General, 22, 30, 34, 36, 37, 44Governors-General, former, 37, 39GoVolunteer website, 18; see also volunteering sectorGraduate Development Program, 57, 59grant programs, 65Group of Twenty (G20), 2, 6, 49

Business 20 (B20) Leadership Group, 20Committee of Cabinet, 43Leaders Summit, 6, 7, 33, 47–48, 49Meeting 2014, 47–48Operations Division, 2, 32Policy Division, 11Taskforce, 7, 20, 47–48

staffing, v, 54, 57troika membership, 6, 57

guest of government visits, 29, 32, 41–42; see also official hospitality and ceremonial support

HHC Coombs Policy Forum, 58Heads of Government visits, 41, 42Heads of State visits, 29, 32, 41, 42health and safety, staff, 62health care, opportunities in Asia, 21health policy, 12; see also dental health reforms;

mental healthhigher education policy, 14, 15homeland security; see national securityhomelessness, 18honours and awards policy, 2, 34, 36–37housing issues, 16How Australia is Faring, 18human resource management, 54–64

Iincome; see financial statements; funding

arrangements; resource statementincome support, for farmers, 16independent auditor’s report, 76–77Independent National Security Legislation Monitor, 26Independent National Security Legislation Monitor Act

2010, 26Independent Review of the Intelligence Community, 28;

see also intelligence policyIndia, 5, 24, 29, 41Indigenous Australians, 16

departmental staff, v, 56, 60, 62Indigenous Employment Network, 62Indigenous Pathways Graduate Program, 57, 59Indonesia, 5, 24, 30, 32, 41

see also Bali bombings Memorial ServiceIndonesia-Australia Comprehensive Economic

Partnership Agreement, 29Industry, Infrastructure and Environment Division, 11,

14–16, 20industry policy, 14, 15, 16information sharing, 2, 24, 25, 28infrastructure issues, 14, 15institutional response to child sexual abuse, Royal

Commission into, 5, 16, 21, 22, 33, 34intelligence policy, 2, 24, 28intergovernmental agreements (IGAs), 11, 15, 16, 17, 19, 23;

see also Council of Australian Governments (COAG); National Partnership Agreements (NPAs)

internal audit, 37, 38, 51International Division, 24, 29–32International Engagement Group

(interdepartmental), 26international policy, 2, 24International Women’s Day, 61, 62irregular migration, 26; see also border security

mattersIt’s an Honour website, 37; see also honours and awards

policy

JJapan, 24, 29Joint Committee of Public Accounts and Audit, iv, 34Joint Declaration for a Papua New Guinea – Australia

Partnership, 29


186

Kkey performance indicators, v, 5, 11

Domestic Policy Group, 12Governance Group, 33–34Group of Twenty (G20) Taskforce, 47National Security and International Policy

Group, 25Kirribilli House, 39

LLaos, 41

see also Asia-Europe Meetinglaw enforcement matters, 2, 24, 26, 28Leaders Summit (G20), 6, 7, 33, 47–48, 49legal and constitutional policy matters, 2, 16, 34legal proceedings, 36, 54legislation program, 5, 33, 34Letters Patent, 22locations, staff, 56; see also staff statisticsThe Lodge, 39

Mmachinery of government changes, 5, 7Male Champion of Change, 6, 60, 61management and accountability, 51–68market research and advertising, 65

ANAO audit of, 53medals and awards, 8, 36; see also honours and awards

policyMemorial Services, 24, 30, 41, 42mental health, 1, 12, 13Ministers, 1, 16, 23, 31ministerial briefs, v, 29, 32, 33, 34, 37, 38ministerial correspondence, v, 32, 37, 38Ministerial Support Division, 32, 37–43ministerial visits, 41, 42Mozambique, Head of State visit, 41multicultural policy, 13Murray-Darling Basin, water reforms, 11, 15, 16Myanmar, Head of State visit, 29, 41

NNAIDOC Week, 62Nation Building Program, 15National Aboriginal and Islander Day Observance

Committee (NAIDOC) Week, 62

National Affordable Housing Agreement, 16National Archives of Australia, 44National Australia Day Council Limited, 1, 37, 65National Broadband Network, 8National Compact on Regulatory and Competition

Reform, 20National Congress of Australia’s First Peoples, 16National Counter-Terrorism Committee, 25, 27National Digital Economy Strategy, 21; see also digital

economy; Forum on the Digital EconomyNational Disability Insurance Scheme (NDIS), 5, 8, 11, 44

Taskforce, 16, 17National Disability Strategy 2010–20, 62National Education Reform Agreement, 19, 23National Emergency Medal Committee, 36National Families Week, 62National Food Plan, 16National Intelligence Coordination Committee, 28National Memorial Service for the 10th Anniversary

of the Bali Bombings, 32, 42; see also Bali bombings Memorial Service

National Mental Health Commission, 1National Occupational Licensing Scheme, 15National Panel for Economic Reform, 12, 19, 20National Partnership Agreements (NPAs), 19

adult dental services, 13disaster recovery and reconstruction, 11, 16early childhood education, 13, 14Northern Territory future, 19seamless national economy, 18skills reform, 15Tasmanian forests, 11, 15water reform in the Murray-Darling Basin, 11, 15see also intergovernmental agreements (IGAs)

National Plan for School Improvement, 5, 11, 23National Reconciliation Week, 62national security, 2, 21, 24–25, 26–28National Security and International Policy Group, 2

performance report, 24–32National Security Information Environment Roadmap: 2020

Vision, 28national symbols policy, 37native title, 16natural disaster recovery measures, 11, 16NDIS; see National Disability Insurance Scheme (NDIS)New Zealand, 13, 24, 25, 26, 27, 41, 58non-proliferation issues, 2, 32not-for-profit sector, support for, 11, 16, 18NPAs; see National Partnership Agreements (NPAs)


187

Ooccupational health and safety; see work health and

safetyOECD; see Organisation for Economic Co-operation

and Development (OECD) Public Governance Committee

Office for the Arts, 13Office of National Assessments, 1Office of the Commonwealth Ombudsman, 1Office of the Inspector-General of Intelligence and

Security, 1, 28Office of the Official Secretary to the

Governor-General, 1Office of the Royal Commission, 22Office of Work and Family, 11, 16–18Official Establishments Charities Program, 39Official Establishments Trust, 39official hospitality and ceremonial support, 4, 32, 33, 37,

41–42official residences, Prime Minister’s, 37, 39Offshore Oil and Gas Resources Sector Security

Inquiry, 28Open Gardens Australia, anniversary, 42Organisation for Economic Co-operation and

Development (OECD) Public Governance Committee, 44, 46

organisational structure, 2–3organised crime prevention, 28overseas aid, 24, 29overseas visitors, 29, 32, 41–42overseas visits, Prime Ministerial, 5, 8, 24, 29, 30, 31, 41

PPacific Islands Forum, 24, 29, 41Papua New Guinea, 5, 24, 29, 41Papua New Guinea – Australia Partnership, 29Parliamentary Business Committee, 34parliamentary questions on notice, v, 38Parliamentary Secretary to the Prime Minister, 1

support services for, v, 2, 32, 34, 37–43people smuggling, 26; see also asylum seekers; border

security matterspeople with disability

insurance for, 11, 16, 17, 44; see also DisabilityCare Australia; National Disability Insurance Scheme (NDIS)

staff, 56, 60performance, organisational, v, 5–6

summary reports, 11–49see also financial statements

performance agreements, 51performance bonuses, 64performance indicators; see key performance

indicatorsPerformance Management Development Scheme, 57philanthropy, support for, 16; see also charities,

support forPhilippines, Head of State visit, 29, 41A Plan for Australian Jobs – the Australian Government’s

Industry and Innovation Statement, 15planning

business, 54, 59operational, 33, 37, 51

PM&C ‘Craft’, 6, 23, 57, 58, 59Portfolio Budget Statements, iv, 4, 11, 70Portfolio Budget Submission, 33, 44Portfolio Ministers, 1

support services for, v, 2, 32, 34, 37–43portfolio structure, 1preschool education, 13, 14Prevent Violence Against Women and their Children

foundation, 16Prime Minister

overseas visits, 5, 8, 24, 29, 30, 31, 41transition arrangements, 6

Prime Minister’s Forum on the Digital Economy, 15, 20procurement policy and practices, 64Productivity Committee (Cabinet), 18productivity gains, 63–64public dental services, 5, 11, 13Public Interest Disclosure Bill 2013, 33, 35Public Interest Disclosure (Consequential Amendment)

Bill 2013, 35Public Service Medal, 8, 36purchasing policy and practices, 64

QThe Queen, 37questions on notice, v, 38

RReconciliation Action Plan, 6, 60, 61; see also workforce

diversityrecruitment, staff, 6, 54, 55, 57

expenditure, 65recycling measures, 66, 67refugee status determination, 21; see also border security

matters; people smuggling


188

regional engagement, 5, 7, 21, 24, 29, 31, 32, 41–42; see also overseas visits, Prime Ministerial

regional policy, 15regulatory reforms, business, 12, 18, 19, 20remuneration, staff, 63residences, Prime Minister’s official, 37, 39Review of Funding for Schooling, 11, 21, 23Review of Government Service Provision, 19risk management, 37, 38, 51, 52Roadmap for National Mental Health Reform 2012–2022, 13role, v, 1, 2Royal Commission into Institutional Responses to

Child Sexual Abuse, 5, 16, 21, 22, 33, 34Royal succession, rules of, 33Royal visit, 32, 41Russia, 41

SSchools Funding Reforms, 5, 11, 21, 23School’s Reform Taskforce, 23second Sydney Airport report, 15Secretaries Committee on National Security, 25, 43Secretary’s Awards for Excellence, 6, 8Secretary’s review of the year, 5–7security, national, 21, 24Senate Estimate questions on notice, v, 38seniors issues, 16service delivery reforms, 16, 17, 18, 19, 44, 46sexual abuse of children, Royal Commission on, 5, 16,

21, 22, 33, 34Singapore, Head of Government visit, 29, 41skills development, national, 13, 15, 20Skills Reform NPA, 15social inclusion policy, 16, 18social investment, 16; see also charities, support forSocial Policy Division, 11, 12–14Solomon Islands, 28, 41staff salaries, 63staff statistics, v, 6, 54, 55–56, 61State Funerals, 33, 41, 42State Memorial Services, 42State Occasions and Official Visits Program, 37Strategic Policy Network meetings, 21Strategy and Delivery Division, 11, 21–23Stronger Futures in the Northern Territory NPA, 18Study Assistance Scheme, 58support services for government operations, v, 2, 32,

34, 37–43

TTasmanian Forests agreements, 11, 15, 16taxation policy issues, 19telecommunications reforms, award for, 8terrorism; see counter-terrorism matterstertiary education, 14, 15Torres Strait Islander Flag, 37Torres Strait Islander people, employment, 60, 62trade policy, 2, 24, 29training, staff; see staff development and trainingtransport issues, 14, 15Treasury, 15, 18, 19, 25, 48‘troika’ membership, 6, 47; see also Group of Twenty

(G20)

UUnited Nations General Assembly Leaders Week, 24, 32United Nations Secretary-General’s Millennium

Development Goals Advocacy Group, 32United Nations Security Council, 5, 24, 32United States of America, 41Universal Access to Early Childhood Education NPA,

13, 14university education, funding policy, 15US Global Force Posture Review, 28

VVolunteer Management Program, 18, 65volunteering sector, 16, 18

WWater Reform in the Murray-Darling Basin

agreements, 11, 15; see also Murray-Darling Basin, water reforms

whistleblower protection, 35; see also Public Interest Disclosure Bill 2013

White PapersAustralia in the Asian Century White Paper, 5, 8, 11, 16,

21, 29, 31, 442012 Energy White Paper, 16

Whole of Government Evaluation Framework, 44women staff, v, 6, 29, 54, 56, 60, 61Women’s Network, 6, 61, 62work health and safety, 62workforce diversity, 6, 8, 54, 57, 60–62Workforce Plan, 54


189

workforce profile; see staff statisticsworkplace agreements, 63workplace relations policy, 19

ZZimbabwe, Head of Government visit, 41


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Annual report team

This report was developed by the annual report team with help from staff throughout the Department.

The 2012–13 annual report team comprised from left to right: Hannah Keal; Michael Blanchard;

Myra Croke, Assistant Secretary, Ministerial Liaison, Communication and Governance;

Annette Cronin, Senior Adviser, Governance and Audit; Chris Atkinson, Adviser, Governance and Audit.

Concept, design and typesetting

Stripe Design

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by other government agencies.

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