chief minister and treasury directorate annual report 2013 ... › ... › 0003 › 644061 ›...

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NOTE:

The Chief Minister and Treasury Directorate ceased to exist on 7 July 2014 with the commencement of the Administrative Arrangements 2014 (No 1), which created the Chief Minister, Treasury and Economic Development Directorate. Further details are provided in B.1 Organisational Overview under the heading Our Current and Future Priorities.

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Content Content ................................................................................................................................. iii

Abbreviations and Acronyms ............................................................................................... vii

A. Transmittal Certificate ........................................................................................................... 1

A.1 Transmittal Certificates ................................................................................................... 2

B. Performance Reporting ......................................................................................................... 5

B.1 Organisational Overview ................................................................................................. 6

Our Purpose, Objectives and Values .................................................................................. 6

Our Role ............................................................................................................................. 6

Our Structure ..................................................................................................................... 7

Our Performance ............................................................................................................... 8

Our Current and Future Priorities .................................................................................... 12

B.2 Performance Analysis .................................................................................................... 14

Output 1.1 Government Policy and Strategy ................................................................... 14

Output 1.2 Public Sector Management ........................................................................... 17

Output 1.3 Industrial Relations Policy ............................................................................. 21

Output 1.4 Coordinated Communications and Community Engagement ...................... 24

Output 2.1 Economic Management ................................................................................ 28

Output 2.2 Financial Management .................................................................................. 31

Output EBT 1 Superannuation Provision Account ........................................................... 34

Output EBT 1 Territory Banking Account ......................................................................... 36

B.3 Community Engagement and Support .......................................................................... 37

Significant Community Engagement Activities ................................................................ 37

Grants/Assistance/Sponsorship Programs ...................................................................... 40

B.4 Sustainable Development .............................................................................................. 44

C. Governance and Accountability Reporting .......................................................................... 48

C.1 Internal Accountability .................................................................................................. 49

Management Structure .................................................................................................... 49

Executive Remuneration .................................................................................................. 54

Significant Management Committees ............................................................................. 54

C.2 Risk Management and Internal Audit ............................................................................ 56

Risk Management ............................................................................................................ 56

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Internal Audit ................................................................................................................... 56

C.3 Fraud Prevention ........................................................................................................... 58

C.4 Legislative Assembly Inquiries and Reports ................................................................... 58

Select Committee on Estimates 2013‐14 Report 1: Appropriation Bill 2013‐14 ............ 59

Public Accounts Committee Report 3: Report on Annual and Financial Reports 2011‐12.......................................................................................................................................... 59

Public Accounts Committee Report 5: Appropriation Bill 2013‐2014 (No 2) ................. 60

C.5 Auditor‐General and Ombudsman Reports ................................................................... 61

Report No.7/2013: Report on 2012‐13 Financial Audits ................................................ 61

Report No.2/2014: Report on the Water and Sewerage Pricing Process ....................... 62

Report No.5/2014: Capital Works Reporting .................................................................. 63

D. Legislation Based Reporting ................................................................................................ 64

D.1 Public Interest Disclosures ............................................................................................ 65

D.2 Freedom of Information ................................................................................................ 65

Section 7 Statement ......................................................................................................... 65

Section 8 Statement ......................................................................................................... 67

Section 79 Statement ....................................................................................................... 67

D.3 Human Rights Act .......................................................................................................... 69

D.4 Territory Records Act ..................................................................................................... 70

D.5 Legal Services Directions ............................................................................................... 73

Model Litigant Guidelines ................................................................................................ 73

Law Officers (General) Legal Services Direction 2012 ..................................................... 73

D.6 Notices of Non Compliance ........................................................................................... 74

D.7 Bushfire Risk Management............................................................................................ 74

D.8 Commissioner for the Environment .............................................................................. 74

E. Human Resources Management Reporting ......................................................................... 76

E.1 Human Resource Management ..................................................................................... 77

E.2 Learning and Development ............................................................................................ 77

Staff Development ........................................................................................................... 78

E.3 Work Health and Safety ................................................................................................. 79

Injury Prevention ............................................................................................................. 79

Workplace Consultation .................................................................................................. 79

Health and Wellbeing ...................................................................................................... 80

Inspection and Audits ...................................................................................................... 80

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Training ............................................................................................................................ 80

Provisional Improvement Notice ..................................................................................... 81

Accident or Incident Reporting and Notifiable Incidents ................................................ 81

Injury Management ......................................................................................................... 81

E.4 Workplace Relations ...................................................................................................... 81

SEAs and AWAs ................................................................................................................ 82

E.5 Staffing Profile ................................................................................................................ 82

F. Financial Management Reporting ........................................................................................ 86

F.1 Financial Management ................................................................................................... 87

F.2 Financial Statements ...................................................................................................... 87

F.3 Capital Works ................................................................................................................. 87

Reconciliation of Funding and Expenditure ..................................................................... 88

F.4 Asset Management ........................................................................................................ 88

Assets Managed ............................................................................................................... 88

Asset Maintenance and Upgrade .................................................................................... 88

Office Accommodation .................................................................................................... 89

F.5 Government Contracting ............................................................................................... 89

Procurement Overview .................................................................................................... 89

Government Procurement Policies .................................................................................. 89

Procurements Exempted from Quotation and Tender Threshold Requirements ........... 89

F.6 Statement of Performance ............................................................................................ 92

Annexed Reports ...................................................................................................................... 94

ACT Executive ....................................................................................................................... 95

Overview .......................................................................................................................... 95

Gallagher Ministry ............................................................................................................ 95

Staff .................................................................................................................................. 96

ACT Compulsory Third Party Insurance Regulator .............................................................. 98

Performance Reporting .................................................................................................... 98

Internal Accountability ................................................................................................... 102

Risk Management and Internal Audit ............................................................................ 102

Legislative Assembly Inquiries and Reports ................................................................... 103

Auditor General and Ombudsman Reports ................................................................... 103

Human Resources Management Reporting ................................................................... 103

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Government Contracting ............................................................................................... 103

Default Insurance Fund ...................................................................................................... 105

The Organisation ............................................................................................................ 105

Uninsured Employer Fund (UEF) .................................................................................... 106

Collapsed Insurer Fund (CIF) .......................................................................................... 107

External Services Providers ............................................................................................ 108

Non‐Applicable Reporting Requirements .......................................................................... 110

ACT Executive ................................................................................................................. 110

Compulsory Third Party Insurance Regulator ................................................................ 110

Default Insurance Fund .................................................................................................. 110

Alphabetical Index ............................................................................................................. 112

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Abbreviations and Acronyms ACAT ACT Civil and Administrative Tribunal

ACT Australian Capital Territory

ACTPS Australian Capital Territory Public Service

ALM Asset Liability Management

ANU Australian National University

AWA Australian Workplace Agreement

CAF Council for the Australian Federation

CFO Chief Finance Officer

CIWC Continuous Improvement and Workers’ Compensation Branch

CMTD Chief Minister and Treasury Directorate

CMTEDD Chief Minister, Treasury and Economic Development Directorate

COAG Council of Australian Governments

CRM Customer Relationship Management

CTP Compulsory Third Party

EFG Economic and Financial Group

FABD Finance and Budget Division

FOI Freedom of Information

FTE Full time Equivalent

GPS Global Positioning System

GST Goods and Services Tax

ICT Information and Communication Technology

IMICT Information Management and Information and Communication Technology

IFA Infrastructure Finance and Advisory Division

KPI Key Performance Indicator

MOU Memorandum of Understanding

NICTA National ICT Australia

NSW New South Wales

OAM Medal of the Order of Australia

OIR Office of Industrial Relations

PID Public Interest Disclosure

PPP Public Private Partnership

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RED Respect, Equity and Diversity

SEA Special Employment Arrangement

SERBIR Senior Executive Responsible for Business Integrity and Risk

SEROC South East Region Organisation of Councils

SPA Superannuation Provision Account

TBA Territory Banking Account

TPF The Partnerships Framework

VVVF Vietnam Veterans and Veterans’ Federation ACT Inc

WCC Workplace Consultative Committee

Transmittal Certificates 1

A. Transmittal Certificate


A.1 Transmittal Certificates

Performance Reporting 5

B. Performance Reporting


B.1 Organisational Overview

Our Purpose, Objectives and Values The Chief Minister and Treasury Directorate’s (CMTD) stated purpose was to lead the public sector and work collaboratively both within government and the community to achieve Government outcomes. To accomplish this, the Directorate set the following strategic objectives:

building coordinated and integrated policy development and service delivery across government;

supporting informed decision‐making by government; maintaining the right workforce; improving satisfaction with community engagement; achieving a budget operating surplus; maintaining a AAA credit rating; and maintaining net financial liabilities within the range of AAA rated jurisdictions.

CMTD adopted the ACT Public Service values of Respect, Integrity, Collaboration and Innovation.

Our Role The Directorate provided strategic policy advice and high level support to our principal stakeholders, the Chief Minister, Treasurer, and Minister for Workplace Safety and Industrial Relations, on policy development, service delivery and whole of government issues.

The Director‐General of CMTD, as Head of Service chaired the ACT Public Service Strategic Board which provides whole of government leadership to the ACTPS.

As a central agency, a key focus was the oversight of the implementation of ACT Government priorities and the provision of advice and direction across the ACT Public Service (ACTPS). This included a specific role in areas such as financial and economic management for the Territory, sustainability policy alignment, demographic and regional policy and relationships, managing the ACT’s intergovernmental relationships and supporting the Chief Minister’s role on the Council of Australian Governments (COAG).

The Directorate led preparation of the annual budget and whole of government financial reports; provided advice on financial management, economic issues and revenue policy; and supported machinery of government and Cabinet processes.

The Directorate was responsible for strategic planning and direction on public sector standards, including across government employment, workforce culture and capability, industrial relations, and the promotion of transparency, ethics and accountability. The Directorate also had responsibility for the enhancement of workplace health and safety and private sector workers’ compensation through policy development, advice to the Government, and coordination of Territory consultative bodies.


The Directorate was also responsible for whole of government communications, the provision of public affairs advice and the coordination of the compliance with campaign advertising legislation and guidelines by all directorates. This included work to enhance communications and community engagement across government, and to seek the community’s views as part of decision‐making processes.

In undertaking the above work the Directorate also supported and assisted our other key stakeholders:

the Cabinet and the Government; the ACT Legislative Assembly; the ACT community; and ACT government directorates, agencies and authorities.

Our Structure The Director‐General CMTD was also the Head of Service and in this role chaired the Strategic Board which provided whole of government leadership and strategic direction to the ACTPS. The Strategic Board membership comprises Directors‐General from all ACTPS Directorates, the Under Treasurer, the Commissioner for Public Administration, and the Deputy Director‐General, Policy and Cabinet CMTD as secretary.

The CMTD included Treasury with four divisions: Economics and Financial, Finance and Budget, Expenditure Review, and Infrastructure Finance and Advisory, all reporting through the Under Treasurer to the Director‐General. The three other Divisions within Chief Minister and Treasury Directorate, Policy and Cabinet; Workforce Capability and Governance; and Culture and Communications; reported directly to the Director‐General.

The Executive Management Group comprised the Director‐General, the Under Treasurer, the Deputy Director‐General Policy and Cabinet, the Deputy Director‐General Workforce Capability and Governance, Director Communications Engagement and Protocol, Director Strategic Finance and Director Corporate Management, and met monthly to review corporate governance issues, including finance and human resource matters.

Below is the Directorate’s Executive Structure as at 30 June 2014. Further information on each area is included in Section C.1 Internal Accountability.


Chief MinisterKaty Gallagher MLA

Minister for Workplace Safety and Industrial

RelationsSimon Corbell MLA

TreasurerAndrew Barr MLA

Head of Service and Director‐GeneralKathy Leigh

Under TreasurerDavid Nicol

Economic and Financial GroupExecutive Director

Karen Doran

Infrastructure Finance and Advisory Division

A/g Executive Director, InfrastructurePeter Murray

Expenditure Review DivisionExecutive Director

Neil Bulless

Finance and Budget DivisionExecutive DirectorStephen Miners

CommunicationsA/g DirectorAnita Perkins

Workplace Capability andGovernance Division

Deputy Director‐GeneralCommissioner for Public

AdministrationAndrew Kefford

Policy and Cabinet DivisionDeputy Director‐General

Dave Peffer

The Directorate’s 2013‐14 Corporate Plan set out the planning framework and strategic objectives. The Corporate Plan aligned with the ACT Government’s priorities. Operational planning and resource allocation, setting of objectives, financial performance and accountability indicators was also undertaken and communicated through documents including the Annual Budget Papers, Business Unit Plans and Staff Performance Plans.

Our Performance The Directorate established the following strategic objectives for 2013‐14.

Building Coordinated and Integrated Policy Development and Service Delivery across Government The effective delivery of the Government’s policy and objectives requires coordination, cohesion and alignment of efforts across the ACTPS. The Directorate led and coordinated whole of government strategy, policy development and service delivery.


Measures to reduce red tape and regulatory reform are a feature of the Government’s reform program. The Regulatory Reform Team was established within the Directorate at the start of 2014 to coordinate regulation and process reform efforts across government, including the development of accountability indicators to reduce red tape and deliver tangible benefits to business and the community.

During the year the Infrastructure Finance and Advisory Division was established to coordinate and support across government, the selection, funding, implementation, delivery and whole‐of‐life transaction management of complex and major infrastructure projects. Work to date has included the development of The Partnerships Framework for the delivery of major infrastructure projects.

CMTD chaired the National Disability Insurance Scheme Inter‐Directorate Committee that met regularly to monitor the issues identified in progressing this reform and provided a mechanism for reporting outcomes from the various working groups to directorates. The Directorate also led the negotiations on the Bilateral Schedule Agreement, which provides the foundation for the trial site in the ACT.

The Directorate coordinated the ACT Government’s efforts in relation to the Royal Commission into Institutional Responses to Child Sexual Abuse, including:

coordinating replies to five notices to produce; leading a government working party which supports the Royal Commission as it relates

to the ACT; and coordinated the ACT Government’s input into issues papers prepared by the Royal

Commission.

The Directorate also coordinated consultation and undertook the lead role on a number of internal reviews and projects aimed at ensuring the public service operates as efficiently and effectively as possible. These included:

reviewing and developing new public sector legislation; finalising the ACT Public Service Administrative and Related Classifications Enterprise

Agreement 2013‐2017; and undertaking a service wide assessment of due diligence actions being undertaken to

comply with the requirements of the Work Health and Safety Act 2011.

Supporting Informed Decision‐Making by Government Decision‐making is central to government. Sound policy and advice assists the Cabinet in coordinating and structuring its crucial strategic policy and direction setting for the ACT Government as a whole. The Directorate supported informed decision‐making by ensuring that advice to the Government was evidence‐based, timely, accurate, robust and covered essential issues succinctly, clearly and in sufficient detail. This included provision of:

advice on complex policy matters including intergovernmental relations; employment advice on the ACTPS and on the relationship between businesses and

workers; rigorous economic advice, analysis and forecasting; and


strategic advice throughout the 2014‐15 Budget on process, fiscal strategy, financial updates and initiatives being considered.

As part of its role, the Directorate also provided policy advice and support to the Strategic Board. The Board was supported by committees considering issues including workforce capacity and capability, improving life outcomes for members of the Aboriginal and Torres Strait Islander communities, overseeing whole of government budget processes and pressures, strategic direction on the planning and delivery of government infrastructure and procurement, planning and delivery of government business systems and ICT and improving the quality of policy advice supporting decisions of Cabinet and the Strategic Board.

Maintaining the Right Workforce The ACTPS needs to have a workforce with the requisite skills and capacity to deliver quality services for the community and to help take the Territory forward.

To address our workforce challenges into the future, the Directorate took a lead role in engendering a respectful and inclusive working environment and encouraging consistency in people management throughout the ACTPS.

The Directorate developed and delivered the inaugural ACT Public Sector 2014 All Staff Survey to obtain an evidence‐based understanding of the lived culture experiences of staff across the Sector. The results of the Survey will provide data on the effectiveness of reform initiatives, including the ACTPS Code of Conduct and new performance framework, as well as assisting in the development of future workforce management strategies, and/or targeted intervention initiatives for specific agencies.

The Directorate also commenced development of a new public sector act that promotes a values‐based public sector. The planned legislation will further embed the single service model through a significant whole of government emphasis, including vesting all employment powers at the Head of Service level, and a focus on collaboration. The aim of a one service model is to create efficiencies through a single management approach, as well as to encourage individual workers to identify with the public sector as a whole so that a holistic, coordinated approach is taken to servicing the Territory and fulfilling the Government’s agenda.

Improved Satisfaction with Community Engagement The Government is committed to engaging the Canberra community in the development and delivery of government policies, programs, public works and services. Enhancing citizen engagement and participation builds trust in government and makes processes more transparent, accountable and responsive to the public’s views.

The Directorate continues to develop and implement a range of initiatives to effectively engage with Canberrans. Most recently the focus has been on the further development of online and social media tools to communicate with the community, specific initiatives include:

ACT Government Digital Mail Service, which provides government information in a more timely and targeted way;


Canberra Digital Community Connect, which uses the National Broadband Network to provide opportunities for community groups to run online events that people can view and participate in from home;

Mobile Canberra App, which uses GPS technology and ACT Government data to provide information on more than 9,800 local amenities; and

Time to Talk Canberra website, which was upgraded in 2013 to reflect the increased use of social media platforms in the community, with an emphasis on more effective use of Facebook and Twitter.

Achieving a Budget Operating Surplus The Government’s fiscal objective is to achieve an operating surplus, temporary deficits must only occur if they are offset by surpluses at other times.

Current projections see a deficit of $332.8 million in 2014–15, falling through 2015–16, with the budget returning to balance in 2016–17 and surplus in 2017–18. The Territory’s debt level will increase as it borrows to invest in transformational and productive infrastructure but it will remain at an affordable level that is among the lowest of all Australian states and territories. Debt will be reduced by returning the budget to balance from 2016–17 and divesting of ageing assets.

Maintaining a AAA Credit Rating Standard & Poor’s Ratings Services assesses the Territory’s credit rating each year. The Directorate assists the Government to maintain this credit rating through the provision of sound policy advice and prudent financial management.

The Territory currently has a AAA stable outlook credit rating, the highest possible. This rating was last affirmed by Standard & Poor’s in October 2013, reflecting a very positive view of the ACT Government’s financial management, the very high‐income economy, high budgetary flexibility and liquidity, and limited contingent liabilities.

Standard & Poor’s is currently in the process of reviewing the current credit rating following the release of the 2014‐15 Budget with the rating announcement expected by the end of September 2014.

Maintain Net Financial Liabilities within the Range of AAA Rated Jurisdictions Net financial liabilities are a broad measure of General Government Sector liabilities, including net debt and superannuation liabilities. The ACT continues to have a strong balance sheet, and remains below the weighted average level for all AAA rated jurisdictions.

The 2014‐15 Budget maintains the ACT’s Net Financial Liabilities within the range of AAA rated jurisdictions.

Annualised long‐term return of 5 per cent real (Superannuation Provision Account) The annualised real return of the portfolio (net of inflation and fees) achieved over time is updated annually. It is a measure of the average annual compounded return achieved over the measurement period. Over the past eighteen years to 30 June 2014, the portfolio


achieved a return of CPI + 5 per cent per annum (net of fees) which is matching the long term annualised target return objective.

Liability funding percentage (Superannuation Provision Account) As at 30 June 2014, the proportion of the Territory Government’s superannuation liabilities that are covered by assets in the Superannuation Provision Account was 41 per cent. This result reflects the current historically low level of domestic interest rates. The applicable spot discount rate required by Australian Accounting Standards to value the superannuation liability at 30 June 2014 was 4.08 per cent (4.29 per cent at 30 June 2013), the use of a lower discount rate leads to a higher liability valuation.

Utilising a more appropriate liability valuation which incorporates the long term budget discount rate assumption of 6 per cent, the valuation of the liability would be materially lower and the current funding ratio would improve to approximately 56 per cent.

Our Current and Future Priorities In July 2014 the Chief Minister announced changes to the Administrative Arrangements, creating the Chief Minister, Treasury and Economic Development Directorate. The new Directorate brings together the former Chief Minister and Treasury Directorate; the Commerce and Works Directorate; the Economic Development Directorate; artsACT, concessions and community facilities from the Community Services Directorate; and ACT Property Group from the Territory and Municipal Services Directorate. The new Directorate will focus on keeping the ACT economy strong while also being able to enhance internal effectiveness and efficiency, and drive a strong digital focus within government.

The restructure also introduced the concepts of clusters to emphasise key collaborative relationships. The three clusters are:

Strengthening governance, promoting opportunities comprising the new Chief Minister, Treasury and Economic Development Directorate together with Justice and Community Safety Directorate;

Supporting our community comprising Community Services Directorate, Health Directorate and the Education and Training Directorate; and

Enhancing our city with Environment and Planning Directorate, Territory and Municipal Services Directorate and Capital Metro Agency.

Chief Minister, Treasury and Economic Development Directorate (CMTEDD) will take an active role both within its cluster and across the ACTPS to support collaboration.

Another focus for CMTEDD in 2014‐15, is the Asbestos Response Taskforce established within the Directorate to provide a coordinated response by the Government to loose‐fill asbestos issues. The Taskforce acts as a single point of contact for those in the community affected by, or who have concerns about, loose‐fill asbestos.

Other priorities going forward for Chief Minister, Treasury and Economic Development Directorate include:

continuing coordination of regulatory and reform processes across government to reduce red tape and deliver tangible benefits and savings to business, the community and the government;


developing a longer term Land Release Program to reflect market demand, enhance urban redevelopment outcomes, respond to changes in the economic climate and support affordable and sustainable development in the Territory;

finalising a new Public Sector Bill to provide a modern employment framework includng a simple statement of the role and employment arrangements for the ACTPS and wider public sector and the values of respect, integrity, collaboration and innovation, which will explicitly apply to the whole public sector, including statutory officeholders and agency heads;

overseeing the ACT Courts Redevelopment Project, the Territory’s first Public Private Partnership;

progressing key elements of the City to the Lake vision, including design of the West Basin public realm, the arterial roads concept design, finalising options for a new Canberra Theatre and progressing the financial business case for the Australia Forum;

supporting commercial innovation and the export performance of ACT businesses through targeted programs and support, including greater in‐market activity delivered through Digital Canberra and increased resourcing for the CBR Innovation Network;

developing iConnect which will establish a secure online portal to provide access to core government services and payment transactions through a single sign‐on for each customer;

continuing work on the review of the Financial Management Act 1996 with the aim of introducing amendments to achieve more streamlined, efficient and effective financial management legislation in the Territory;

replacing the Territory’s revenue system to provide a solid platform for revenue collection into the next ten years, to allow for citizen self service, on‐line billing, improved compliance and the integration of concessions into the Territory’s taxation system;

delivering major events, including hosting three International Cricket Council Cricket World Cup matches at Manuka Oval, seven AFC Asian Cup matches at GIO Stadium, Floriade, Floriade Nightfest and the Enlighten Autumn Festival;

continuing to develop and implement strategies to increase overnight visitor expenditure in the ACT from $1.8 billion to $2.5 billion per annum by 2020;

finalising the migration of business systems and supporting infrastructure currently hosted at Callam Offices to the new state‐of‐the‐art data centre facility; and

developing whole of government approaches to digital records management.

In 2015 we can also look forward to 650 Shared Services staff moving to the new office block in Gungahlin. The building will offer our staff a workplace that is more efficient in supporting innovation, collaboration and productivity.

I would like to thank the staff of the Chief Minister and Treasury Directorate for the support they have provided me since I commenced in the Directorate in February 2014 and I look forward to working with all the staff in the new Chief Minister, Treasury and Economic Development Directorate in 2014‐15.

Kathy Leigh Director‐General


B.2 Performance Analysis This section should be read in conjunction with the Statement of Performance in Volume 2 of the 2013‐14 Chief Minister and Treasury Directorate Annual Report.

Output 1.1 Government Policy and Strategy Overview The Directorate provided advice and direction across the ACT Public Service on complex policy matters, incorporating a central agency coordination role in strategic planning, regulation reform, social and economic policy, spatial planning, regional policy and strategy and across government information.

CMTD supported the Chief Minister and Cabinet through the provision of policy and support. The Director‐General was Secretary of Cabinet, and CMTD provided Cabinet secretariat functions and advice. CMTD also provided secretariat and policy support to the ACT Public Service Strategic Board chaired by the Director‐General as Head of Service.

CMTD supported the Chief Minister representing the ACT at intergovernmental forums, notably the Council of Australian Governments (COAG) and the Council for the Australian Federation (CAF). The Directorate managed and coordinated the ACT’s relationships with other jurisdictions, most significantly with the Commonwealth and NSW Governments, and surrounding local councils which are members of the South East Regional Organisation of Councils (SEROC).

Highlights Against this Output in 2013‐14 the Directorate:

provided secretariat services to Cabinet and the ACT Public Service Strategic Board, including supporting the Chief Minister and Head of Service in their roles of Chair;

supported the ACT’s participation in COAG and CAF through provision of strategic and tactical advice to the Chief Minister and Cabinet, participation in COAG Senior Officials’ meetings, ongoing coordination and policy development for national reform initiatives, policy support for across government working groups and participation in national working groups;

supported the ACT’s involvement in the activities of the Royal Commission into Institutional Responses to Child Sexual Abuse, through:

o preparation of submissions to Royal Commission issues papers on Working with Children Checks, Towards Healing, Preventing Sexual Abuse of Children in Out of Home Care, and Statutory Victims of Crime Compensation Schemes,

o coordination of the response to a Notice to Produce relating to the statutory victims of crime scheme and established a cross governmental working party to support public hearings held during June 2014, and

o provision of support for a public forum in advance of the hearings;

delivered projects relating to the ACT’s regulatory environment, including:


o the Red Tape Reduction Legislation Amendment Bill 2014, introduced in the Legislative Assembly on 5 June 2014, which aims to reduce red tape to businesses and the community through better regulatory processes,

o the ACT Government’s economic stimulus package for the building and construction industry, which includes the release of civil contracts for estate works, changes to lease variation charges, significant reduction in extension of time charges relating to commencement and completion development fees, and the drafting of legislation to facilitate major projects across the ACT, and

o chairing the Regulatory Reform Panel, which is the Government’s key forum for working with the ACT business community to identify regulatory reform priorities and opportunities;

commissioned a series of research projects including:

o mapping the regulatory burden faced by firms within the hospitality, building and construction and higher education sectors, including surveying individual businesses concerning their experience of regulation,

o developing an econometric model to estimate the costs associated with potential new regulatory interventions, and

o surveying general public awareness of the Government’s regulatory activities, perceptions of ‘over‐regulation’ and experiences of regulation in respondents’ employment or personal lives;

coordinated the free public Wi‐Fi project, launched by the Chief Minister on 29 May 2014;

supported the development of the Government’s Digital Canberra Action Plan, available from digitalcanberra.com.au, which sets out initiatives for Canberra to accelerate the development of a high growth digital economy;

facilitated ICT capacity‐building workshops, in partnership with the Canberra Business Council, on ‘Trends in Digital and Web Design’;

supported the development of the Mobile Canberra app detailing amenities around Canberra;

supported the establishment of the ACT Vice‐Chancellors’ Forum and coordinated two delegations to China to promote Canberra as a higher education study destination;

supported the establishment of a Chair of Cancer Research at the Australian National University, to be located at the John Curtin School of Medical Research and The Canberra Regional Cancer Centre, enhancing collaborative projects between Cancer Centre clinicians and cancer researchers at the John Curtin School;

continued implementation of the ACT‐NSW MoU for Regional Collaboration, including commissioning the final project ‐ Industry Investment and Attraction Framework ‐ under the Greater Capital Regional Initiative; which profiled the attributes of people considering investing in the economic development of the Greater Capital Region, identified future regional employment opportunities and detailed how the framework can interact with existing regional tourism and marketing strategies;

led ACT Government’s participation in the South East Regional Organisation of Councils (SEROC) projects, including a cross jurisdictional data project with the Australian Bureau of Statistics, regional marketing opportunities leveraging the Brand Canberra initiative and regional advocacy with federal government representatives of the region;


updated population trend data for the ACT, based on Australian Bureau of Statistics data releases; and

coordinated development of directorates’ transformational service advice which sets out key medium to long term reform proposals to better use technology and transform services.

The Directorate met all of the Output 1.1 accountability indicators, exceeding the target of supporting four COAG and CAF meetings by one due to an additional CAF meeting being held on 18 May 2014.

Future Directions In 2014‐15, the Directorate will:

continue to provide high quality, objective strategic and tactical advice to the Chief Minister and Cabinet on decisions before government;

advise Cabinet on the implementation of decisions across the public service, including options for delivery where required;

continue to drive the government’s reform agenda, including in the areas of regulation, digital and service redesign;

provide policy support as required to directorates on complex matters; and provide ongoing support to facilitate regional and intergovernmental relationships.

Further Information can be obtained from:

Dave Peffer Deputy Director‐General Policy and Cabinet Division +61 2 6207 6136 [email protected]


Output 1.2 Public Sector Management Overview The Directorate provided a central agency policy and advisory role for ACT Public Service (ACTPS) employment. Areas of responsibility covered government employment, industrial relations, human resources, accountability and learning and development. The Group also provided support to the statutory office of the Commissioner for Public Administration, the ACT Remuneration Tribunal, the ACTPS Joint Council and the People and Performance Council.

The Directorate managed the ACT Government accident and incident data repository and was responsible for the management and prevention of workplace injuries in the ACTPS, including return to work and injury management programs for the ACT Government. It provided health and safety consultancy services and safety system improvement programs to directorates. CMTD was also responsible for the development and implementation of the ACTPS Workers’ Compensation and Work Safety Improvement Plan.


reviewed the Public Sector Management Act 1994, to develop a modern, flexible, consistent and streamlined employment framework for the ACT Public Sector;

implemented new learning and development requirements for the graduate program so that participants now receive a graduate certificate qualification;

made arrangements for the design and distribution of the first ACT public sector all staff survey;

assisted the Commissioner for Public Administration to coordinate whole of government input for the review the Public Interest Disclosure Guidelines;

facilitated the implementation of a whole of government public interest disclosure tracking system to all public sector entities; and

commenced a three stage review of the ACTPS Respect Equity and Diversity Framework (RED Framework):

o stage one, completed in April 2014, involved a governance and environment review to elicit the Services’ views on how the RED Framework sits in the contemporary integrity environment,

o stage two commenced with the release of discussion papers in May 2014 to obtain qualitative data from internal and external stakeholders in order to make an assessment of whether the RED Framework has met its objectives,

o stage three will provide a final report on the review following analysis of data received in Stages One and Two and provide recommendations for the future direction of the Respect Equity and Diversity Framework;

continued to implement the ACTPS Workers’ Compensation and Work Safety Improvement Plan, which is designed to reduce work health and safety risks, and improve health and return to work outcomes of ACTPS injured workers;


commenced the incremental implementation of the electronic accident and incident reporting system (RiskMan) which facilitates timely responses to incidents and early intervention by the ACTPS injury management team to assist injured workers;

finalised and implemented the ACTPS Performance Framework, whose objectives are:

o support employee effectiveness for the benefit of the ACTPS through a consistent and sustainable approach to achieving high performance,

o support the ACTPS Values and Signature Behaviours, o provide a consistent approach to the way in which the ACTPS holds its employees

accountable for their work performance, and o embed performance discussions as a familiar and supportive part of working life

in the ACTPS;

provided whole of government case management services to injured workers and their directorates/agencies;

implemented ACTPS capacity building programs for line managers/supervisors; undertook a procurement process for a whole of government early intervention

physiotherapy initiative and rehabilitation provider panel; reviewed and modernised the following whole of government work health safety and

injury management policies in consultation with ACTPS stakeholders:

o Alcohol and Other Drugs Policy, o Work Health and Safety Risk Management, o First Aid in the Workplace, o Workplace Health & Safety Act 2011 – Responsibilities, o Fire Safety & Emergency Planning, and o Personal Protective Equipment (PPE);

commenced a review of the ACT Government workers’ compensation premium devolution model;

developed and commenced implementation of health and wellbeing workplace initiatives across government under the Healthy Weight Action Plan;

established a Steering Committee for the Healthy Weight Initiative and refined its governance arrangements in collaboration with the Health Directorate;

negotiated the introduction of a new enterprise agreement structure of service wide employee category stream based agreements which replaced the previously predominant directorate identified enterprise agreements, which will enable the ACTPS to be more responsive to changing Government priorities and will lead to an enhanced capacity and capability to undertake policy development and service delivery;

negotiated common terms and conditions including pay increases for most of the ACTPS for 2013‐17;

introduced a new leave type of domestic violence leave for staff to provide for up to 20 days paid leave for staff who are experiencing domestic violence, to attend counselling, court and police appointments, and to find alternative accommodation;

introduced important changes to the staff behavioural sections of enterprise agreements giving prominence to counselling, dispute resolution and proper preliminary assessment which should significantly reduce the number of matters that are formally sent to investigation; and


assisted arrangements for a future transition of Government services to the National Disability Insurance Scheme (NDIS) by negotiating a Memorandum of Understanding with relevant unions regarding the retention of staff entitlements and redeployment and redundancy processes that will be adopted.

Five of the seven accountability indicators for this Output were met. Work is continuing on one indicator, the Review of the ACTPS Respect Equity and Diversity Framework, which was due to be completed by April 2014 and is now scheduled to be finished before the end of 2014 with a final report covering the analysis of data received during the review and recommendations for the future direction of the RED Framework.

The other unmet accountability indicator related to the update of the ACTPS recruitment guidelines. This project has been deferred to allow completion of the review of the Public Sector Management Act 1994 and the implementation of the new act.


finalise and implement new public sector legislation; finalise the review of the Respect Equity and Diversity Framework; modernise the government agency annual reporting requirements; seek out administrative efficiencies in the engagement and management of staff across

the public service; update ACTPS Recruitment Guidelines; implement new initiatives under the ACTPS Workers’ Compensation and Work Safety

Improvement Plan aimed at early physiotherapy intervention, supervisor training programs to manage psychological injury risks, mental health and wellbeing awareness resources and workplace mediation and conflict resolution strategies;

develop and roll out enhanced performance monitoring for work injury and hazard reduction;

complete the implementation of RiskMan; implement workplace focused Healthy Weight Action Plan deliverables and develop

healthy lifestyle initiatives for the ACT public sector; assist the Commissioner for Public Administration to coordinate the whole of

government response to the Healthy Weight Action Plan; implement service‐wide enterprise agreement 2013‐17 negotiated outcomes; develop and provide directorates with an ACTPS Complaints Handling and Investigations

Manual; coordinate the selection of a default superannuation fund provider for the ACTPS; draft a modern enterprise award for the ACTPS and represent the Government in Fair

Work Commission full bench modern enterprise award hearings; provide comprehensive written advice to directorates including Shared Services on each

leave entitlement type; advise government and directorates on any change to federal industrial related law

which can impact of the ACTPS including the paid parental leave scheme, employer superannuation contribution rates, the Fair Work Act 2009 (Cwth) and associated Regulations; and

commence work on the development of new ACTPS workplace level standards.



Bronwen Overton‐Clarke Acting Deputy Director‐General Workforce Capability and Governance +61 2 6205 5147 [email protected]

Michael Young Executive Director Continuous Improvement and Workers’ Compensation +61 2 6207 0796 [email protected]


Output 1.3 Industrial Relations Policy Overview The Directorate provided advice and developed legislation on industrial relations, work safety (including dangerous substances and asbestos), public holidays and daylight saving.

It provided support for the ACT’s contribution to the national harmonisation of work health and safety and workers’ compensation laws, and participated in the Workplace Relations Ministers’ Council, including work under the Intergovernmental Agreement on a National Workplace Relations System; secretariat responsibility for the ACT Work Safety Council was also covered.

The Directorate also continued to take a leading role in coordinating the Government’s implementation of the recommendations in the Getting Home Safely Report, including providing secretariat support to the Deputy Directors’‐General Steering Committee and working closely with directorates to develop and implement responses.

In performing the work under this Output, there was ongoing consultation with key stakeholders, including employer associations, unions, industry participants, local, state and Australian Governments and members of the community.


coordinated the initial whole of government response to dealing with loose‐fill asbestos insulation in ACT homes, including the provision of information to householders and ongoing advice to the government and the community;

developed and implemented regulations to mandate asbestos awareness training; continued, at the national level, negotiations on the implementation of codes of practice

and guidance materials to underpin the model work health and safety legislation; participated at the national level to implement the decision of COAG to review the

model work health and safety legislation to remove unnecessary regulation; participated at the national level to develop uniform legislation across Australia to

regulate explosives; implemented a new regulatory funding model for the Territory’s private sector workers’

compensation scheme, where the costs associated with regulating the scheme are transferred to workers’ compensation insurers through a Regulatory Levy, which in 2014‐15 will be expanded to also partly fund the Territory’s work health and safety regulatory operations;

led a tripartite national initiative to implement a nationally consistent permanent impairment assessment tool and associated supporting infrastructure such as assessor training;

went live with a new Workers’ Compensation Management System, that provides enhanced data security and data quality, a more flexible interface for insurers and a much greater capacity to monitor and report on work injury management in the Territory;

facilitated a Memorandum of Understanding between all States and Territories (excluding Tasmania) wherein agreement was reached to adopt national cross‐border


guidelines to assist employers determine which workers’ compensation jurisdiction they must insure workers who work in more than one state or territory; and

undertook a service‐wide assessment of due diligence actions being undertaken to comply with the requirements of the Work Health and Safety Act 2011 as a precursor to a series of workshops for Executives to ensure best practice work health and safety was applied in all workplaces. A key part of these activities was to undertake a risk assessment of the operations of the Service that has led to the implementation of targeted improvement plans to achieve best practice Work Health and Safety performance.

All but one of the accountability indicators for Output 1.3 were met or surpassed. The one indicator that was not met was the ACT Work Safety Council met on three not four occasions due to other work pressures, matters of immediate importance were considered out of session.

The measures for the accountability indicators relating to the provision of advice on issues affecting ACT workers and issues relating to dangerous substances were both exceeded. This included advice to Government on matters relating to insurance coverage for workers and improvements to the design and operation of the workers’ compensation scheme, the operation and possible expansion of the Long Service Leave (Portable Schemes) Act 2009 reforms to the Holidays Act 1958 and advice on the consequences for ACT workers of amendments to the Fair Work Act 2009 (Cwth). Advice was also provided on issues relating to the liability for the remediation of contaminated land and the ongoing management and liability of asbestos in the Territory.

The Directorate participated in thirty‐one meetings of Safe Work Australia and its various sub‐committees and working groups, twenty‐one more than expected as Safe Work Australia’s work program was broadened. Issues covered included ongoing harmonisation of work health and safety legislation, issues arising from the Getting Home Safely Report that have national consequences, developing uniform explosives legislation across Australia and developing collaborative projects under the Australian work health and safety strategy.


continue to work with Safe Work Australia, other jurisdictions and key stakeholders in the Territory as part of the COAG led review of the model work health and safety legislation;

work with Safe Work Australia and other jurisdictions on the review of the intergovernmental agreement on the regulatory reform of occupational health and safety;

work with Safe Work Australia and other jurisdictions to develop uniform explosives legislation across Australia;

seek to finalise the model regulations for Hazardous Chemicals and Major Hazard Facilities into work health and safety legislation;

recommend initiatives to Government to reduce regulatory costs for business and streamline the workers’ compensation dispute resolution process;

focus on strengthening workers’ compensation premium compliance in the ACT’s private sector workers’ compensation scheme;


modernise the scheme performance monitoring and reporting services by leveraging off the new Workers’ Compensation Management System’s enhanced data quality;

continue to work closely with Safe Work Australia to progress national harmonisation initiatives relating to permanent impairment assessment and deemed diseases; and

clarify cross‐border state of connection tests through legislative change to align with the updated national rules, providing authoritative guidance for the scheme’s Approved Insurers, employers and ultimately the courts in the event of dispute.


Michael Young Executive Director Continuous Improvement and Workers’ Compensation +61 2 6207 0796 [email protected]


Output 1.4 Coordinated Communications and Community Engagement Overview The Directorate was responsible for whole of government communications, engagement, branding, public affairs advice and in 2013 the planning, coordination and delivery of the Centenary of Canberra celebrations.

The Directorate provided advice on protocol, managed hospitality and special events for the Chief Minister, and provided support for members of the Executive and their staff. It also coordinated nominations for the ACT Australian of the Year, the ACT Citizen of the year, ACT Government nominations for the Public Service Medal, and nominations for the Order of Australia.


delivered the Medicare Change Your Address campaign that encouraged new residents to Canberra to update their residential address with Medicare, resulting in 691 Canberrans changing their address, potentially bringing $1,727,500 in extra GST revenue;

delivered the Canberra Gold Awards (which celebrate Canberrans who have contributed to the community for 50 years), the 37th annual Canberra Citizen of the Year award and ceremony, and the ACT Australian of the Year Awards;

delivered media liaison officer training to the Public Information Sub‐Committee of the Australia and New Zealand Counter Terrorism Committee;

provided secretariat support for the Canberra Nara Sister City Committee and hosted a successful visit by the Mayor of Nara and Mayoral delegation in October 2013;

provided secretariat support to the ACT Veterans’ Advisory Council, which met quarterly to discuss issues of importance to the local veterans’ community;

coordinated the sixth and seventh Twitter Cabinets in September 2013 and June 2014 respectively, attracting a total of over 1,500 tweets during both events;

delivered International Association of Public Participation training in community engagement to government communicators and members of community groups;

provided campaign advertising support across government and to the Independent Reviewer;

managed the Coordinated Communications Network of ACT government communications staff and regular media monitoring activities;

raised funds for the construction of sanitation blocks at two schools in Dili and a Scouts Activity Centre as part of the Centenary of Canberra Dollars for Dili project;

coordinated two 'Cabinet in the Community' events, held in conjunction with the openings of the Belconnen Community Health Centre and the refurbished Tuggeranong Community Health Centre;

coordinated the implementation of the ACT Government Digital Mail Service that provides email messages on important government events and initiatives;


coordinated tree planting at the National Arboretum by the Duke and Duchess of Cambridge in April 2014, and the Prime Minister of Singapore in June 2014; and

finalised the delivery of the Centenary of Canberra program further details are provided below.

The Directorate delivered on all of its accountability indicators against this Output:

the Our City, Our Community newsletter was delivered to all Canberra households in September 2013 and March 2014;

the Centenary of Canberra provided two updates to Government in the reporting period; and

the average number of visits per month to the Time to Talk website was 2,333.

Centenary of Canberra

One of the major highlights of 2013‐14 was the delivery of the Centenary program. The Centenary of Canberra’s vision was that ‘All Australians proudly celebrate and share in the Centenary of Canberra, our nation’s capital – the city that tells the story of our country’s freedom, spirit, achievements and aspirations’. To enable this, the program was diverse and included opportunities for visitors and the local community to engage, participate, contemplate and celebrate. The program for the second half of the year included:

Kick Up Your Heels – monthly themed social dances; Parties at the Shops, Parties at your place, and Parties in your Village; Portrait of a Nation: Unmade Edges – Distinctive Places; Harmony Bus which took passengers on a tour of significant multicultural venues around

Canberra; Museum of the Long Weekend; Catalogue of Dreams by Urban Theatre Projects; Treasures of Canberra; Stellrscope; National Indigenous Basketball Championships; National Aboriginal and Torres Strait Islander Golf Championships; Capital O – part of the 2013 Australian Orienteering Championships; the 5th Oceania Pan Hellenic Games Canberra 2013; the Nike Skateboarding Australia Pro/Am Tour; Team of Life by QL2 Theatre, developed through a series of workshops with young

people; the forum Inside Out: New Actions for Change by First Australians held at the National

Convention Centre; BLAK by Bangarra Dance Theatre at Canberra Theatre Centre; Country at M16 Artspace; Jack Charles v The Crown at Canberra Theatre Centre; Windsongs and Waterlines – Where is, What is, Wreck Bay? at Burrunju Aboriginal

Gallery; Rock for Reconciliation at the Street Theatre; Hit the Floor Together at Canberra Theatre Centre; the historically and culturally significant Murra Bidgee Mullangari River Ceremony;


Seeking Biloela at the Street Theatre; the Innovation and Discovery series, a program of events, occasions, tech fests,

exhibitions, star‐gazing sessions, lecture series, experiments, launches and openings throughout the year that celebrated Canberra’s performance as a site of globally leading‐edge research and innovation; and

the Big Issues Big Talk program that brought together a range of lectures, speaker series and conferences throughout 2013.

Evaluation of the Centenary of Canberra

The Directorate developed a Monitoring, Evaluation and Reporting Framework, consistent with the ACT Government Evaluation Policy and Guidelines, to assess the program against the goals of the Centenary. The Framework defines the key performance questions for each goal, baseline data, data needs, collection method and frequency. Key Performance Indicators (KPIs) were developed, corresponding to each of the Centenary of Canberra goals. Consistent with the goals of the Centenary of Canberra program, and the KPIs developed, the Centenary of Canberra has collected data to measure and analyse:

consultation, involvement and collaboration of the ACT community, regional community and Australian community in the Centenary of Canberra celebrations;

pride and a sense of ownership in Canberra as the national capital; media coverage of Canberra throughout the Centenary year; public and private investment in Canberra; events, initiatives and projects in the Centenary of Canberra program that are new to

Canberra and either continue to operate in some form or inspire new productions; and the creation of new opportunities for connection with international partners.

The Framework evaluates the success of the Centenary as a whole and not just the activities of the Centenary team.

A preliminary outcomes report was prepared by Langdale Consulting in February 2014. The evaluation of the Centenary will continue until 2020 in accordance with the Framework. The Community Services Directorate will assist CMTEDD in data collection. The Communications team in CMTEDD will coordinate reporting.

Volunteers

Our special thanks to the over 450 registered volunteers who assisted on a number of Centenary of Canberra events. Throughout 2013, 1,461 volunteer shifts were undertaken at 72 Centenary events, for a total of 6,465 hours.


through the Coordinated Communications Network, drive reforms to build and further improve communications capability and capacity;

develop an ACT Government Digital Communications Strategy and Guidelines; conclude and evaluate the Centenary of Canberra program; deliver two Our City, Our Community digital newsletters in September 2014 and

March 2015;


review the ACT Government community engagement guidelines and 'tools', including the Time to Talk website;

review and enhance the ACT Government Branding Guidelines, including use of the CBR brand within government;

deliver the Canberra Citizen of the Year and Chief Minister's Canberra Gold Awards and ceremonies; and

assist with ACT nominations for National Awards (OAM and above), Bravery Awards and Public Service Medals.


Anita Perkins Acting Director Communications +61 2 6205 0035 [email protected]


Output 2.1 Economic Management Overview The Directorate was responsible for providing analysis and advice to the Government and agencies on a range of activities encompassing: economic and financial analysis; financial framework management and asset management; and financial assets and liabilities (including superannuation and insurance).

The Directorate also provided oversight of the operations of the Australian and State Governments’ financial relations framework encompassing the operations of the Intergovernmental Agreement on Federal Financials Relations.

The Directorate’s responsibilities included preparing economic and revenue forecasts, monitoring and reporting on the state of the ACT economy, modelling the ACT economy, providing advice to the Chief Minister, Treasurer and other areas of Government on economic and fiscal matters relating to the Territory and analysing the economic and budgetary effects of long term demographic changes.

It managed the borrowing and investments of the Territory Banking Account (See Output EBT 1 Territory Banking), and the Government’s unfunded employer superannuation liabilities and the investment assets of the Superannuation Provision Account (See Output EBT 1 Superannuation Provision Account).

The Directorate was also responsible for regulation of the ACT Compulsory Third Party (CTP) Insurance Scheme (See Annexed Report). It enhanced the policy and procedures of CTP insurance for vehicles in the ACT with the aim of improving the system of CTP insurance for motorists.

The Directorate administered the Lifetime Care and Support Scheme for persons catastrophically injured in motor vehicle accidents in the ACT on or after 1 July 2014. The Scheme was introduced by the Lifetime Care and Support (Catastrophic Injuries) Act 2014. In addition it had carriage of the remaining National Injury Insurance Scheme reform agenda.


developed revenue initiatives for the 2014‐15 Budget; including tax reform initiatives; prepared economic and revenue forecasts for the ACT Budget and Budget Review; monitored, reported and advised on movements to key economic indicators; provided analysis and advice on economic aspects of projects and policy proposals

including water, energy, climate change, housing and parking; provided administrative and secretariat support to the Industry Panel, established in

April 2014 to review the Independent Competition and Regulatory Commission’s Water and Sewerage 2013‐19 Pricing Direction;

enabled the annual evaluation of the ACT's credit rating; procured 300 new pay parking machines for the ACT’s off‐street car parks, with new

payment options for credit cards and smart phones;


coordinated changes to the system of Extension of Time fees designed to relieve existing debts, simplify fee structures and encourage the completion of developments;

managed the ACT Government’s participation in the 2013‐14 deliberations of the COAG Standing Council on Federal Financial Relations and supporting Heads of Treasuries forum;

managed the flow of federal funding to the ACT totalling $1.8 billion or approximately 42 per cent of ACT general government sector revenue in 2013‐14;

managed the ACT's early participation in the Commonwealth Grants Commission 2015 Methodology Review of GST Revenue Sharing Relativities;

implemented the Lifetime Care and Support Scheme for catastrophically injured persons as a result of a motor accident, which commenced on 1 July 2014; and

supported the functions of the CTP Regulator, including the entry of three additional CTP insurers into the ACT CTP insurance scheme with effect from 15 July 2014 (refer to the annexed Annual Report of the CTP Regulator).

The Directorate met both of its targets in relation to the submission of an annual update to the Commonwealth Grants Commission and a submission to the credit and rating agency Standard and Poor’s Rating Service. In relation to the indicator on briefings of the ACT economy, 111 briefings were completed and published on the Directorate's website against a target of 115. The decrease in briefings was a result of a decision taken to discontinue briefing on a particular indicator due to declining relevance.

Future Directions In 2014‐15, the Directorate will provide economic analysis and advice to the Government and agencies; manage federal financial relations; and provide accounting, financial framework, and insurance policy advice.

The Directorate will:

monitor and advise on the state of the ACT economy; provide input to help deliver the 2014‐15 Budget Review and 2015‐16 Budget; undertake economic and fiscal modelling and revenue forecasting; progress the implementation and further development of tax reform initiatives; provide economic advice on industry sectoral matters; manage the ACT Government’s participation in the Commonwealth’s Asset Recycling

Initiative; provide ongoing administrative and secretariat support to the Industry Panel reviewing

the Independent Competition and Regulatory Commission’s Water and Sewerage 2013‐19 Pricing Direction;

manage and complete ACT participation in the Commonwealth Grants Commission 2015 Methodology Review of State Revenue Sharing Relativities;

manage Treasury participation in the development of the Federal Government’s White Papers on Federalism and National Tax Reform;

progress implementation of the next phase of the catastrophic injury scheme (National Injury Insurance Scheme);

progress improvements to CTP arrangements in the ACT; progress a review and reform of the Financial Management Act 1996; and


contribute to Heads of Treasuries and Council of Federal Financial Relations processes and support the Heads of Treasury Accounting and Reporting Advisory Committee.


Karen Doran Executive Director Economic and Financial Group +61 2 6207 0337 [email protected]


Output 2.2 Financial Management Overview The Directorate is responsible for advising the Government and agencies on the development of the Territory’s Budget, advising on financial issues relating to agencies and the Territory, and for accounting policies and frameworks. It is also responsible for reviews of the services, programs and functions provided by the Government.

The Directorate also brings together specialist capabilities to support the selection, funding, implementation, delivery and whole of life transaction management of complex and major infrastructure projects.

Highlights During 2013‐14, the Directorate:

delivered the Territory’s Consolidated Annual Financial Statements, the 2013‐14 Budget Review and the 2014‐15 Budget consistent with legislative requirements and timeframes;

facilitated the 2014‐15 Budget Consultation process, which saw 80 submissions received and provided to the Government for consideration during 2014‐15 Budget planning processes;

prepared the Appropriation Act 2013‐2014 (No. 2) and Appropriation (Office of the Legislative Assembly) Act 2013‐2014 (No. 2) which were introduced into the Assembly on 20 March 2014, and passed in the Assembly on 13 May 2014;

released the Territory’s 2012‐13 ACT Consolidated Annual Financial Statements 7 November 2013;

reviewed the Election Commitments Costing Act 2012, with both the review and the Government response to the review being tabled in the Legislative Assembly on 29 October 2013;

commenced reviews of the Emergency Services Agency, Corrective Services, ACTION and the Commonwealth Fire Payment;

completed reviews of Human Resources and Financial Services, and Parks and City Services; and

assisted the Justice and Community Safety Directorate with a review of ACT Policing Enabling Costs;

developed The Partnerships Framework (TPF), which establishes the framework for:

o delivery of major infrastructure projects under models including Design, Construct, Maintain, Operate and Public Private Partnerships (PPP), and

o provision of infrastructure advice across the ACT Government as required; and

developed Guidelines for Unsolicited Proposals:

o evaluation of unsolicited proposals under a structured framework.

been involved in the ACT Courts PPP project during the procurement phase, and supports the Under Treasurer as Chair of the Steering Committee. A Senior Commercial Manager has been appointed by Directorae to the project and the Directorate remains engaged in an oversight and policy capacity;


provided support and advice for the scoping and facilitation phase of the Capital Metro project, this includes participation in the Market Sounding process, and will include the review of financial and economic modelling; and

been allocated $0.200 million in the 2014‐15 Budget to provide assistance in getting this project investment ready and ensuring the project aligns with The Capital Framework and TPF requirements (if delivered as a PPP).

The Directorate achieved all of its accountability indicators under this Output, including the delivery of the 2014‐15 Budget on 3 June 2014.

Future Directions In 2014‐15 the Directorate will:

undertake a feasibility study on replacing the ageing Budget Development Application system that is integral to the Territory’s budgeting process;

manage the public finances appropriately; provide advice aimed at maintaining a strong balance sheet; progress and continue to improve the Government’s financial management frameworks; coordinate the Government’s budget processes and report on financial outcomes; provide regular updates to the Budget Committee of Cabinet on the Territory’s finances; achieve value for money in the use of government resources; deliver the 2014‐15 Budget Review and the 2015‐16 Budget; provide regular updates to the Government on the progress of its infrastructure

program, including regular reports to the Budget Committee of Cabinet; continue to strengthen the budget planning and management process, as well as

monitor agency financial performance; continue to improve the planning, scheduling and delivery of capital works projects

across the Territory; commence three new reviews of Property Management, Parking Infrastructure and

Services Delivery Models, and the Concession Program; complete all reviews; implement The Partnerships Framework; facilitate the delivery of PPP projects in the Territory, including the ACT Courts PPP

Project, the Capital Metro Project, the Australia Forum and future PPP projects; and provide support and advice on PPP transactions, including transaction execution through

to financial close.


Stephen Miners Executive Director Finance and Budget Division +61 2 6207 5071 [email protected]


Neil Bulless Executive Director Expenditure Review Division +61 2 6207 0264 [email protected]

Peter Murray Acting Executive Director, Infrastructure Infrastructure Finance and Advisory Division +61 2 6207 5650 [email protected]


Output EBT 1 Superannuation Provision Account Overview The Superannuation Provision Account (SPA) was established to recognise the investment assets and defined benefit employer superannuation liabilities of the Territory. The Directorate, through the financial operations of the SPA, assists the Government to effectively manage the defined benefit employer superannuation liabilities of the Territory. This includes the responsibility for the management of the investment funds set aside to meet those liabilities. The SPA also recognises the unfunded superannuation liabilities for the defined benefit superannuation entitlements for the eligible Members of the Legislative Assembly.


managed the SPA investment portfolio in accordance with the established investment plan and policies;

completed the annual actuarial review of the defined benefit employer superannuation liabilities of the Territory;

continued implementation of the operational requirements of the Responsible Investment Policy with:

o improved reporting and disclosure of responsible investment practices on the Directorate’s website including disclosure of all proxy voting activity for the financial year, the proxy voting policy guidelines, the Government’s direct share holdings, and Responsible Investment policy; and

o implementation of customised share benchmarks for the Australian and international direct share holdings incorporating the exclusion of certain prohibited business activities and the integration of an assessment of environmental, social and governance risks and international norms‐based risk criteria;

procured an actuarial services provider, a fund manager in relation to indexed equities investment and a new master custody services provider for the financial investment assets of the SPA;

achieved a net investment portfolio return for the financial year that was greater than the portfolio’s performance benchmark return; and

administered benefit entitlements for Members of the Legislative Assembly defined benefit superannuation arrangement.

SPA met or exceeded all of its accountability measures with the exception of the target of 95 per cent of voting rights being exercised where the result was 93.1 per cent. There were 5,418 share voting proposals for the 2013‐14 financial year with 5,042 voting instructions exercised, resulting in 93.1 per cent of voting rights being exercised. The variance reflects no‐vote instructions in relation to company meetings which require shareholders, wishing to vote, depositing their shares before the date of the meeting with a designated depository, resulting in the shares being unable to be traded over the voting period. The current proxy


voting policy framework incorporates a no‐vote for shares impacted by these types of voting practices.

The accountability indicator relating to the difference between the net investment earnings rate and benchmark was exceeded. The portfolio delivered an investment return for the 2013‐14 financial year of 15.8 per cent (net of fees) against the portfolio’s performance benchmark return of 14.4 per cent. This was mainly due to outperformance of the Australian listed equity investment managers against their individual performance benchmark hurdles.

Government’s Responsible Investment Policy

Reporting and disclosure of responsible investment related activity is available from the Directorate’s website. This includes the disclosure of:

the Government’s Responsible Investment Policy; the Investment Plan; directly‐owned share holdings (updated quarterly); a summary of the Sustainability Proxy Voting guidelines; and share voting activity for the financial year (updated quarterly).


continue to manage the SPA investment portfolio in accordance with the established investment plan and the investment and operational policies;

transition to the new master custody service provider; procure professional investment management and investment advisory service

providers as required; and complete the major triennial actuarial review of the defined benefit employer

superannuation liabilities of the Territory.


Patrick McAuliffe Director Asset Liability Management +61 2 6207 0187 [email protected]


Output EBT 1 Territory Banking Account Overview This Output covers the management of the Territory Banking Account (TBA) and the investment and borrowing activities of the ACT Government. The Directorate provides services to the Government including financial asset and liability management through the establishment of investment and borrowing policies and objectives, and the coordination and implementation of cash management, investment and borrowing activities. The Directorate, through the TBA, recognises and manages the general government’s financial investment assets and borrowing liabilities. Revenues on behalf of the Territory are transferred to the TBA and fortnightly appropriation disbursements are made to agencies from the TBA.


facilitated the centralised daily cash management function; managed the Territory’s debt and TBA investment portfolios; completed a new Territory borrowing in the form of a fixed rate nominal bond

($500 million face value), May 2024 maturity; and procured a new master custody services provider for the financial investment assets of

the TBA.

TBA met all of its accountability indicators. The accountability indicator relating to the difference between the net investment earnings rate and benchmark was exceeded. The investment portfolio delivered an investment return for the 2013‐14 financial year of 3.6 per cent (net of fees), compared to the portfolio’s performance benchmark return of 3.1 per cent. This was mainly due to the performance of the cash enhanced investment portfolio from the portfolio's exposure to high quality investment grade securities across diverse sectors of the Australian credit market.


continue to manage Territory borrowings and associated risks; continue to manage, monitor and review, as necessary, the TBA investment portfolio in

accordance with the established investment policies; transition to the new master custody services provider; and procure professional investment management and investment advisory service

providers as required.


Patrick McAuliffe Director Asset Liability Management +61 2 6207 0187 [email protected]


B.3 Community Engagement and Support

Significant Community Engagement Activities The Directorate continued to provide advice and assistance in relation to effective community engagement, with a focus on the further development of online and social media tools to communicate with the community. A range of traditional and digital initiatives to engage with Canberrans were delivered during the year, including:

the ACT Government Digital Mail Service, an emailing outreach service commenced in February 2014, to provide government information in a more timely and targeted way, with 24 messages to the 27,500 recipients who opted‐in to receive information via email sent to date;

the sixth and seventh Twitter Cabinets were conducted in September 2013 and June 2014 respectively, attracting a total of over 1,500 tweets during both events;

the Our City, Our Community newsletter was delivered to all Canberra households in September 2013 and March 2014, providing up‐to‐date information on government services and initiatives;

a 5th five day community engagement workshop was delivered to government communicators and members of community groups in August 2013, providing practical insights into the use of a range of ‘best practice’ community engagement tools and techniques; and

two ‘Cabinet in the Community’ events were held in conjunction with the openings of the Belconnen Community Health Centre and the refurbished Tuggeranong Community Health Centre, with the Chief Minister and Ministers on‐hand to discuss issues raised by members of the public in an informal setting.

A range of community engagement activities occurred during the year on specific projects as detailed below.

Budget Consultation The 2014‐15 Budget Consultation process was launched on 12 September 2013, seeking the views of interested community members, businesses and local organisations as to how the ACT Government’s resources are allocated, where services could be enhanced, and where possible efficiencies could be made. Background information and links to relevant documentation, including previous budget papers, were made available to the community through the Budget Consultation website www.budgetconsultation.act.gov.au.

A total of 80 written submissions were received, covering a diverse range of issues including disability, health, education, community services, sports and recreation, arts and entertainment, the building industry, land release, public infrastructure, sustainability and public transport, as well as ACT finances. Submissions were made publicly available on the Budget Consultation Website unless the author specified that the submission was confidential.

Directorates and agencies reviewed the individual submissions for consideration in the development of proposals for the 2014‐15 Budget. Views and suggestions provided by the


community were also used to inform decision‐making, drawing on the knowledge and experiences of users and providers of government services.

CMTD also conducted a budget briefing lock‐up for peak community, business and industry organisations, with over 100 people attending a presentation delivered by the Treasurer, Mr Andrew Barr MLA, on Budget Day (3 June 2014). Senior ACT Government agency representatives were available to answer any questions arising from the Treasurer’s presentation.

Digital Canberra Action Plan Development of the Digital Canberra Action Plan involved targeted interviews with sector and industry leaders, research of current and future trends in the drivers of digital change in Australia and overseas, and extensive consultation with the community. This included:

a Chief Minister Roundtable with 16 industry representatives on 3 July 2013 to discuss key opportunities for Canberra as a leading digital city;

crowd sourcing over 200 ideas, votes and comments on the Time to Talk website to help shape the Digital Canberra Action Plan; and

surveying 489 small businesses on their use of ICT and digital tools, as published in the Digital Canberra eBusiness Report 2013 on the CMTD website, resulting in the delivery of a series of business workshops to build digital capacity.

Regulatory Reform and Red Tape Reduction To help identify and prioritise regulatory reform and red tape reduction activities, CMTD consulted with industry and community peak bodies through the Regulatory Reform Panel and surveyed 300 ACT residents to understand community perceptions, values and concerns about regulation in the ACT.

National licensing reform In July 2013, the ACT Government commenced consultation on national licensing reform seeking industry stakeholders’ views, to inform the ACT Government’s deliberations on the Decision Regulation Impact Statement for national licensing reform and whether to participate. The Head of Service wrote to a range of key unions, peak bodies and businesses seeking written submissions and extending an invitation for face to face meetings with officers from the Directorate and relevant ACT regulators.

In response to industry interest, ACT Government officers organised three meetings to cover each of the occupational categories of electrical, plumbing and gasfitting, and property. Around a dozen stakeholders attended each meeting.

As a result of the consultation, industry’s views were incorporated in advice provided to Government. The reform was ultimately not agreed to by the COAG.

Pay parking machine procurement On 27 July 2013, as part of the procurement for pay parking machines, the Directorate released draft specifications for industry comment for a two week period, seeking views on the specifications as well as advice on alternative technological solutions. This informed the formal tender for pay parking machines.


As part of the formal tender, the ACT Government hosted a joint industry briefing session with the National Capital Authority on 2 October 2013. This included an advertisement in The Canberra Times and a link on the CMTD website. Approximately 50 people attended the industry briefing, where ACT Government and National Capital Authority officers provided an overview of the tender and sought and addressed questions from industry.

Review of the Public Sector Management Act 1994 Work commenced on the review of the Public Sector Management Act 1994 in November 2013. A paper outlining concepts for a draft bill was circulated to unions as preparation for an initial consultation session that was held on 10 February 2014. Further consultation sessions on the bill were held on 5 May, 9 May and 17 June 2014.

Review of the Respect Equity and Diversity Framework The Directorate commenced the Review of the RED Framework during the 2013‐14 financial year, with discussion papers distributed to community stakeholders. The closing date for submissions was extended into the 2014‐15 financial year to allow community stakeholders to provide submissions. As at the end of the financial year, only four submissions had been received from community stakeholders. The review is ongoing and will be finalised during the 2014 calendar year.

Centenary of Canberra As part of the Centenary of Canberra Celebrations, a number of community engagement activities took place involving various members of the community. These included:

Centenary School Coordinators’ Group, where three meetings were held during 2013‐14 with primary and secondary school teachers to discuss projects in the Centenary of Canberra Program that were of interest to the education sector, with schools developing their own activities as a result of these meetings;

Youth Artists in Conferencing involved consulting with arts organisations, community organisations, universities and industry groups to obtain residences/placements for artists, with two artists, one curator and 22 students directly engaged in residences or placements;

Portrait of a Nation Unmade Edge involved meetings with representatives from the ‘villages’ around Canberra (Hall, Pialligo, Oaks Estate, Stromlo Settlement, Uriarra and Tharwa), with six projects providing opportunities for each community to explore and express their local stories and histories;

Kids, Creatures and 100 Harlequins Children’s Week Festival was developed in consultation with a number of groups including the Green Teachers’ Network which presented their sustainable produce at the festival, Music Organisations’ Network who assisted in the development of an adaption of Andrew Schultz’s Symphony No.3 – Century which was performed at the Festival, and the Children’s Week Working Group that advised on the planning for the festival; and

SPIN which included a number of different activities including SPIN Saturday and SPIN Hub Capital, engagement in developing these activities involved numerous community groups and individuals, with 2,700 people attending SPIN Saturday and 15,000 taking part in Hub Capital activities.


Consultations were also held with a range of groups to assist in the development of centenary projects such as Parties at the Shops, Parties at your Place, Parties in your Village and the Portrait of a Nation Australian Schools’ Portrait Project.

Grants/Assistance/Sponsorship Programs During 2013‐14 the Directorate provided assistance, sponsorship and grants to a range of organisations as detailed below.

Output 1.1 Government Policy and Strategy Grants Recipient Project Project Purpose Amount ($) John Curtin School of Medical Research, Australian National University (ANU)

The ACT Government has committed $1.5 million over three years (2013‐2016) for start up funding to support the ANU to establish a chair in cancer research. The ANU has committed $5 million to permanently fund the salary of the chair.

The Chair in Cancer Research will work with the Canberra Region Cancer Centre to enhance collaborative projects and research between Cancer Centre clinicians and cancer researchers at the John Curtin School of Medical Research.

$500,000

Regional Development Australia ACT

ACT Government’s contribution towards the joint funding of the RDA ACT with the Federal Government

Improve the coordination and delivery of regional development initiatives including the development of a strategic plan, provision of advice on regional needs, consultation with regional stakeholders and community engagement for the period of July 2013 to June 2014

$158,000

Output 1.2 Public Sector Management Recipient Project Project Purpose Amount ($) ACT Medicare Local Promotion of NewAccess

program To provide NewAccess services and support to ACT Government employees through the implementation of a targeted marketing strategy for the period 14 May 2014 to 20 May 2015.

$18,182

Output 1.4 Coordinated Communications and Community Engagement Community Grants

Annual grants to local community councils are provided to assist with the promotion and conduct of their activities. Community Councils play an important role in providing feedback to the ACT Government on projects and programs that impact on their local area.

Recipient Project Project Purpose Amount ($) Belconnen Community Council

Annual grant to assist local community council

To help communicate the views, expectations and concerns of community members to the ACT Government

12,821


Recipient Project Project Purpose Amount ($) Tuggeranong Community Council



12,821

Gungahlin Community Council



12,821

Weston Creek Community Council



12,821

Inner South Canberra Community Council



12,821

Woden Valley Community Council



5,000

Inner North Community Council



12,821

Vietnam Veterans and Veterans’ Federation ACT Inc. (VVVF)

Grant to assist with VVVF service delivery

Improved services to ACT Vietnam Veterans

70,000

Community Support Fund

The Community Support Fund provides funding for worthy charitable organisations. The Chief Minister receives numerous requests each year to launch a range of appeals for charitable organisations. When these types of events are launched by the Chief Minister, or another Minister, the Community Support Fund allows for a donation to be made to the respective charity on behalf of the ACT Government.

Recipient Project Project Purpose Amount ($) Australia 21 Roundtable Seed funding 5,000Mr Nadanakumar One Young World Conference Support to attend 500Heart Foundation ACT

2013 Big Heart Appeal Donation 3,000

Ben Donohoe Run and Walk for Fun

Appeal Donation 3,000

Canberra Nara Sister City Committee

Nara Peace Park Bronze Plaque

Funding to install plaque 1,782

Wreck Bay Aboriginal Council

25th Anniversary Support for Anniversary 3,000

Reconciliation Australia

Hire of flag poles National Reconciliation Week 1,360

Ms Grinsell‐Jones Our Generation’s Challenge –Oaktree Foundation

Support to attend 500


Recipient Project Project Purpose Amount ($) Barnardos Australia 2014 Mother of the Year Sponsorship 3,000The Garvan Institute Love Your Sister Appeal Donation 10,000Australian Red Cross Typhoon Haiyan Appeal Donation 10,000Legacy 2014 Legacy Concert Support to stage concert 2,727Gungahlin Jets Improvements to Club shed Donation 40,000Ronald McDonald House Canberra

2CC Radiothon Appeal Donation 20,000

The Scout Association of Australia

Dollars for Dili Donation 27,000

The Royal National Agricultural Society

Royal Canberra Poultry Show Sponsorship 1,000

Red Cross Red Cross Calling Donation 5,000Salvation Army Red Shield Appeal Donation 10,000Mix 106.3 Special Children’s Christmas

Party Sponsorship 1,091

Instrumental Music Program

ACT Senior Concert Band tour to Nara

Support to attend 6,355

Centenary Community Initiatives Fund

The Centenary of Canberra funded 51 projects, initiatives and events to a total value of $1 million to celebrate the centenary. The organisations below received funding (all or part grant) in 2013‐14.

Recipient Project Project Purpose Amount ($)* Friends of the Australian National Botanical Gardens

Bush Capital Celebration ‐ Atwo day program that highlighted the natural assets the Australian National Botanic Gardens holds for the benefit of all Australians and its relationship with the local community.

Community engagement and support for an enhanced Centenary of Canberra program.

$15,000

Tuggeranong Community Festival Inc

Footsteps to Follow ‐recognised with a bronze plaque placed in the wall of the entrance to Tuggeranong Town Park past and present residents, community groups, clubs, associations and businesses that have made a significant and positive contribution to Tuggeranong.


$16,963

Skate Australia Inc ‘Battle at Belco’ featuring Australia’s best street and transition skaters and ‘Streetwise’ learn to skate sessions.


$30,000

National Trust (ACT) Centenary Rally (additional funding).


$13,636


Recipient Project Project Purpose Amount ($)* Australian National University

Centenary Tapestry Workshop for Beryl Women’s Centre.


$1,402

*Amount expended in the reporting period

Centenary of Canberra Sponsorship

The Centenary of Canberra provided sponsorship to a range of events, projects and initiatives that met the goals of the Centenary of Canberra Program. Those events delivered in the reporting period feature in the table below.

Recipient Project Project Purpose Amount ($)* Australian Football League

AFL Hall of Fame Dinner –Canberra hosted, for the first time, the AFL Australian Football Hall of Fame Dinner at Parliament House on 4 June 2013.

Hosting the event provided the unique opportunity to promote Canberra and its Centenary on a national and international scale. The Centenary logo featured prominently, and the Centenary was acknowledged during the welcome address and closing remarks, which were televised. Two new AFL footballs were signed by the inductees and 2013 Legend – these items were auctioned to raise money for Dollars for Dili.

$100,000

ACT Fire Brigade Historical Society

Fire Brigade Centennial Ball, Display, Torchlight Parade and Australasian Road Rescue Championships.


$23,500

Canberra Ocean Racing Club

Canberra Yacht – The Centenary of Canberra provided sponsorship to a yacht which will be racing in the Sydney to Hobart.

The profile of the Centenary of Canberra was raised with the logo appearing on the sails of the yacht during training races in the lead up to the Sydney to Hobart Yacht Race.

$15,000

Canberra International Film Festival

Canberra International Film Festival – Body of Work.

The inaugural Body of Work honours Harvey Weinstein. Conversations, talks, panel discussions, Q&As and film screenings were held in multiple locations across Canberra to pay homage to Harvey’s leadership of independent cinema. The Centenary of Canberra received logo recognition, Foundation Partner status, invitations to key events and speaking opportunities.

$37,500

*Amount expended in the reporting period


B.4 Sustainable Development The Directorate’s Resource Management Plan provided guidance on sustainability issues in CMTD, including an annual plan of activities to address management of water, electricity and gas consumption, waste production and recycling initiatives.

The focus of the plan is to:

audit current resources management processes; collect meaningful and accurate data; educate, inform and change staff behaviour; and put in place systems to help improve resource management.

Actions the Directorate has already undertaken include:

participating in the Environment and Sustainable Development Directorate's OfficeSmart sustainability Program;

providing recycling services for paper, cardboard, organic material, comingled recycling, toner cartridges, batteries, mobile phones, glasses and cameras; and

expanding the use of electronic circulation of documents rather than printed copies.

Work is currently underway to investigate the installation of more efficient lighting and the building owner is continuing to update a range of building systems to improve overall efficiency in the Nara building.

Sustainable development performance 2012‐2013 and 2013‐2014

In June 2014, the Government established an Enterprise Sustainability Platform (ESP), to provide a consistent approach to reporting sustainability data in future years. The ESP provides continuously updated, accurate and auditable water, energy (electricity and gas), and greenhouse gas (GHG) emissions data and utility billing cost information for its assets and agencies, a function which has not previously been available.

The Directorate had staff located in both the Canberra Nara Centre and 221 London Circuit. CMTD only occupied a small portion of 221 London Circuit. The building houses a wide range of government and private tenants. Full ESD figures of are not available for the Directorate’s section of this building.

As full details are only available for the Canberra Nara Centre, the two locations are reported separately.


Canberra Nara Centre

Indicator as at 30 June Unit 2012‐13 2013‐14 Percentage change

Agency staff and area

Agency staff FTE 233.8 216.2 ‐7.53%Workplace floor area Area (m2) 4,319 4,359 0.93%

Stationary energy usage

Electricity use Kilowatt hours 582,552.69 571,287.77 ‐1.93%Renewable electricity use1 Kilowatt hours 74,639.58 0 ‐100.00%Natural gas use2 Megajoules 952,114.87 1,154,320.78 21.24%

Transport fuel usage

Total number of vehicles Number 6 6 0.00%Total kilometres travelled3 Kilometres 95,879 85,970 ‐10.33%Fuel use – Petrol4 Kilolitres 8.7 6.56 ‐24.60%Fuel use – Diesel Kilolitres 0 0 0.00%Fuel use – Liquid Petroleum Gas (LPG) Kilolitres 0 0 0.00%Fuel use – Compressed Natural Gas (CNG) Kilolitres 0 0 0.00%

Water usage

Water use Kilolitres 2,411.67 2,565.04 6.36%

Resource efficiency and waste

Reams of paper purchased5 Reams 3,921 3,527 ‐10.05%Recycled content of paper purchased Percentage 41.57% 31.85% ‐23.38%Waste to landfill Litres 238,192.81 247,030.21 3.71%Co‐mingled material recycled6 Litres 49,409.57 57,082.08 15.53%Paper & Cardboard recycled (incl. secure paper)7

Litres 114,622.70 101,926.55 ‐11.08%

Organic material recycled8 Litres 32,555.25 6,571.95 ‐79.81%

Greenhouse gas emissions

Emissions from stationary energy use9 Tonnes CO2‐e 541.23 681.82 25.98%Emissions from transport10 Tonnes CO2‐e 22.29 17.81 ‐20.10%Total emissions Tonnes CO2‐e 563.52 698.28 23.91%

Note 1 ACT Property Group purchased 7,530 MWh (Mega Watt hours) of GreenPower on behalf of the ACT Government, representing 5% of the ACT Government’s energy consumption for 2013‐14. This will be reported in the Territory and Municipal Services Directorate Annual Report. 2 This increase is being investigated in conjunction with the building owner. 3 The lower km travelled is a result of the removal of a higher overall usage executive vehicle with a lower overall usage pool vehicle. 4 The reduction in fuel used relates to the lower kilometres travelled (see note 3) and the replacement of a petrol powered vehicle with an electric vehicle. 5 The decrease is attributed to the Directorate encouraging the electronic distribution of documents and double sided printing. 6 The increase in comingled recycling is attributed to promotion of recycling and gradual cultural change. 7 The reduction in paper and cardboard recycled is attributed to a reduction in paper being used (see note 5). 8 The reduction is due to the contracted service provider ceasing trading and an extended delay in progressing the contract with a new service provider. The new arrangements commenced in May 2014.


9 The increase in emissions is due to increased gas usage (see note 2) and a reduction in purchase of green power (see note 1). 10 Decrease in emissions in transport corresponds with decrease in kilometres travelled and fuel used (see notes 3 and 4).

221 London Circuit

Indicator as at 30 June Unit 2012‐13 2013‐14 Percentage change

Agency staff and area Agency staff FTE 35.5 40.7 14.65%Workplace floor area1 Area (m2) 609.0 609.0 0%

Stationary energy usage Electricity use Kilowatt hours Not Available 48,274.551

Transport fuel usage2 Total number of vehicles Number 0 0 0Total kilometres travelled Kilometres 0 0 0Fuel use – Petrol Kilolitres 0 0 0Fuel use – Diesel Kilolitres 0 0 0Fuel use – Liquid Petroleum Gas (LPG) Kilolitres 0 0 0Fuel use – Compressed Natural Gas (CNG) Kilolitres 0 0 0

Resource efficiency and waste Reams of paper purchased3 Reams 376 1,051 179.52%Recycled content of paper purchased4 Percentage 82.98% 24.74% ‐70.19%

Greenhouse gas emissions Emissions from stationary energy use Tonnes CO2‐e Not Available 55.181 Emissions from transport Tonnes CO2‐e Not Available 0 Total emissions Tonnes CO2‐e Not Available 55.181

Notes: 1 Tenancy only. 2 Staff located in 221 London Circuit utilise vehicles included in the Canberra Nara Centre figures in the table above and also vehicles reported on in the Commerce and Works Directorate Annual Report. 3 The 2012‐13 paper figure is for the period December 2012 – June 2013 only. 4 The business needs of high resolution multiple copying/scanning of records requires a higher usage of non‐recycled paper.

Governance and Accountability Reporting 47


C. Governance and Accountability Reporting


C.1 Internal Accountability

Management Structure The Chief Minister and Treasury Directorate had seven divisions, three reporting directly to the Director‐General and four reporting to the Director‐General through the Under Treasurer as shown in the organisation chart shown in section B.1.

The responsibilities of the CMTD Executives as at 30 June 2014 were as follows:

Director‐General and Head of Service – Ms Kathy Leigh

The Director‐General is responsible for the efficient administration of the Directorate and its strategic direction. The Director‐General of CMTD is also the Head of Service and in this role chairs the Strategic Board which provides whole of Government leadership and strategic direction to the ACTPS.

Deputy Director‐General Policy and Cabinet (Output 1.1) – Mr Dave Peffer

The Policy and Cabinet Division supports the Chief Minister, as Head of Government and Chair of Cabinet; the Director‐General, as Head of Service and Chair of Strategic Board; and provides leadership across the ACTPS by ensuring the Executive is provided with timely, frank and objective advice to support informed decision‐making and providing a high level of responsiveness to the requirements of the Cabinet and the Assembly.

The Division guides the legislative program to deliver on the Government’s objectives and provides analysis of policy proposals and advice through policy development to support the Chief Minister to lead this work through Cabinet. It also delivers on key policy reforms including an end‐to‐end regulation reform agenda and builds capacity across directorates, using tools such as service planning and transformational service advice.

Executive Director, Strategic Policy and Cabinet (Output 1.1) – Ms Nicole Masters (Acting)

Strategic Policy and Cabinet ensures alignment of government priorities and initiatives across the ACT Government, by supporting key decision‐making bodies including Cabinet, Strategic Board and COAG. Strategic Policy and Cabinet has responsibility for advancing government priorities, and coordinating whole of government advice that responds to the social, economic and environmental needs of the ACT community. It strategically analyses and reports on the ACTPS’s efforts to deliver and implement the priorities of the government of the day, including election commitments and Parliamentary Agreement commitments.

Strategic Policy and Cabinet also undertakes research and analysis, including demographic forecasts, to support strategic policy advice on current and emerging policy issues and initiatives at the local, regional and national level and supports the Chief Minister’s portfolio responsibilities of Higher Education and Regional Development.

Director, Cabinet and Intergovernmental Relations (Output 1.1) – Ms Cheryl Sizer (Acting)

Cabinet and Intergovernmental Relations provides coordination and operational support to the Chief Minister, the ACT Executive, the Chief Minister and Treasury Directorate and the ACT Public Service in relation to Cabinet. It facilitates the passage of Government business


C.1 Internal Accountability

Management Structure The Chief Minister and Treasury Directorate had seven divisions, three reporting directly to the Director‐General and four reporting to the Director‐General through the Under Treasurer as shown in the organisation chart shown in section B.1.

The responsibilities of the CMTD Executives as at 30 June 2014 were as follows:

Director‐General and Head of Service – Ms Kathy Leigh

The Director‐General is responsible for the efficient administration of the Directorate and its strategic direction. The Director‐General of CMTD is also the Head of Service and in this role chairs the Strategic Board which provides whole of Government leadership and strategic direction to the ACTPS.

Deputy Director‐General Policy and Cabinet (Output 1.1) – Mr Dave Peffer

The Policy and Cabinet Division supports the Chief Minister, as Head of Government and Chair of Cabinet; the Director‐General, as Head of Service and Chair of Strategic Board; and provides leadership across the ACTPS by ensuring the Executive is provided with timely, frank and objective advice to support informed decision‐making and providing a high level of responsiveness to the requirements of the Cabinet and the Assembly.

The Division guides the legislative program to deliver on the Government’s objectives and provides analysis of policy proposals and advice through policy development to support the Chief Minister to lead this work through Cabinet. It also delivers on key policy reforms including an end‐to‐end regulation reform agenda and builds capacity across directorates, using tools such as service planning and transformational service advice.

Executive Director, Strategic Policy and Cabinet (Output 1.1) – Ms Nicole Masters (Acting)

Strategic Policy and Cabinet ensures alignment of government priorities and initiatives across the ACT Government, by supporting key decision‐making bodies including Cabinet, Strategic Board and COAG. Strategic Policy and Cabinet has responsibility for advancing government priorities, and coordinating whole of government advice that responds to the social, economic and environmental needs of the ACT community. It strategically analyses and reports on the ACTPS’s efforts to deliver and implement the priorities of the government of the day, including election commitments and Parliamentary Agreement commitments.

Strategic Policy and Cabinet also undertakes research and analysis, including demographic forecasts, to support strategic policy advice on current and emerging policy issues and initiatives at the local, regional and national level and supports the Chief Minister’s portfolio responsibilities of Higher Education and Regional Development.

Director, Cabinet and Intergovernmental Relations (Output 1.1) – Ms Cheryl Sizer (Acting)

Cabinet and Intergovernmental Relations provides coordination and operational support to the Chief Minister, the ACT Executive, the Chief Minister and Treasury Directorate and the ACT Public Service in relation to Cabinet. It facilitates the passage of Government business


in the Legislative Assembly and liaises with ACT Government agencies and other jurisdictions in Australia on intergovernmental issues. Cabinet and Intergovernmental Relations also assists in the effective administration of certain ACT laws relating to the machinery of government.

Director, Service ACT (Output 1.1) – Mr David Colussi (Acting)

Service ACT is designing improved public access to ACT government services. Service planning ensures the delivery of the right services to the right people by developing strategic planning capability across government. Annually, Service ACT coordinates Transformational Service Advice across the ACTPS and presents service reform options to Government based on robust analysis and assessment.

Director, Regulatory Reform (Output 1.1) – Mr Brook Dixon

Regulatory Reform coordinates regulation and process reform efforts across government, including the development of accountability indicators, to reduce red tape and deliver tangible benefits to business and the community. Regulatory Reform also engages with COAG’s deregulation agenda, including the mapping of regulation affecting small businesses for the residential building and retail industry sectors.

Executive Director, Government Information Office (Output 1.1) – Mr Mick Chisnall

The Government Information Office is responsible for providing across government advice and coordination on ICT issues and the release of government information. The Office has a role in helping realise the ACT Government's commitment to Open Government and to support innovation in the use of web 2.0 technologies across government. The Office works in partnership with other ICT areas and draws on expertise from across the ACTPS to deliver projects.

Director and Chief Finance Officer, Strategic Finance – Mr Paul Ogden

Strategic Finance is responsible for the financial and budgetary management of the Chief Minister and Treasury Directorate and the ACT Executive. This includes budget strategy and development, strategic financial monthly and annual reporting, and support for the Ministers, Executive Management Group and senior management. The team undertakes day‐to‐day accounting and reporting activities to meet the needs of business units and external reporting obligations.

Deputy Director‐General, Workforce Capability and Governance and Commissioner for Public Administration (Outputs 1.2 and 1.3) – Mr Andrew Kefford

Workforce Capability and Governance Division is responsible for ACT public sector employment legislation and conditions. It also provides advice to Government and develops policy and legislation in areas involving the relationship between employers and workers in the ACT, including industrial relations, work safety and workers' compensation.

The Division also provides support to the Head of Service, the Commissioner for Public Administration, the ACT Public Service Strategic Board and its sub‐committees, and supports the ACT’s participation in intergovernmental forums on workplace relations and work health and safety issues.


Director, Public Sector Management (Output 1.2) – Ms Liesl Centenera

Public Sector Management provides a central agency policy and advisory role for ACT public sector employment. Areas of responsibility include service‐wide employment policies and conditions; human resources planning and management; accountability; and learning and development issues and programs.

The Branch also provides support to the statutory office of the Commissioner for Public Administration, the ACT Remuneration Tribunal (the independent statutory tribunal with responsibility for setting the remuneration, allowances and entitlements for various public officials in the ACT) and the People and Performance Council (the senior body for consideration of workforce capacity and capability and workforce performance issues).

Director, Office of Industrial Relations (Output 1.3) – Ms Fiona Barbaro

The Office of Industrial Relations is responsible for developing policy and legislation on a range of matters concerning workplace relations. These include industrial relations, work safety including dangerous substances and asbestos regulation, and public holidays and daylight saving.

The Office also provides support for the ACT's contribution to the national harmonisation of work health and safety, including the ACT's participation in the Workplace Relations Ministers' Council, along with secretariat support to the ACT Work Safety Council and to the Territory's representatives on the Safe Work Australia Council and its sub‐committees.

Executive Director, Continuous Improvement and Workers’ Compensation (Outputs 1.2 and 1.3) – Mr Michael Young

Continuous Improvement and Workers' Compensation is responsible for the management of the ACT private sector workers' compensation scheme, including policy, legislation and the supervision of the ACT Default Insurance Fund.

It manages the ACT Government accident and incident data repository, and is responsible for the management and prevention of workplace injuries in the ACT Public Sector, including the management and delivery of return to work and injury management programs for the ACT Government and the provision of health and safety consultancy services and safety system improvement programs to Directorates.

It is responsible for the development and implementation of the ACTPS Workers' Compensation and Work Safety Improvement Plan. The Branch also provides support for the ACT's contribution to the national harmonisation workers' compensation laws.

Director, Public Sector Workplace Relations (Output 1.2) – Mr Russell Noud

The Public Sector Workplace Relations Group provides advice to Government and directorates on whole of government workplace relations matters. This includes advice on ACT Public Service (ACTPS) wage policy, industrial relations dispute policy and enterprise agreement negotiation strategy. The Group also provides ad hoc advice and interpretation on ACTPS enterprise agreement and industrial award content. The Group negotiates common terms and conditions aspects of all ACTPS and Legislative Assembly Members’ Staff (LAMS) enterprise agreements for Government and undertakes the secretariat function to the ACTPS and Unions’ Joint Council.


Director, Corporate Management – Ms Sue Hall

Corporate Management provides a range of strategic, governance, organisational development, administrative and human resource functions for the Chief Minister and Treasury Directorate. The Director is also the CMTD Senior Officer Responsible for Business Integrity and Risk (See section C.2 Risk Management and Internal Audit).

Director, Communications, Engagement and Protocol (Output 1.4) – Ms Anita Perkins (Acting)

Communications, Engagement and Protocol is responsible for the coordination of directorate media activities, including media releases, speeches, branding, electronic and hard copy communications products, advertising and the provision of public affairs advice. The Branch also provides media support to the Chief Minister's Office and coordinates whole of government media and communications projects.

Under Treasurer – Mr David Nicol

The Under Treasurer is responsible for the provision of strategic financial and economic policy advice to the Government with the aim of promoting the Territory’s financial position and economic management. The Under Treasurer also plays a leading role in promoting accountability and transparency in the delivery of services to the community.

Executive Director, Economic and Financial Group (Output 2.1) – Ms Karen Doran

Economic and Financial Group provides analysis and advice to the Government and agencies on economic and regulatory reform, facilitating appropriate intergovernmental financial arrangements, and management of the Government's financial assets and liabilities, including superannuation liabilities and investments and insurance policy.

Director, Asset Liability Management (Output 2.1, EBT 1 SPA and EBT 1 TBA) – Mr Patrick McAuliffe

Asset Liability Management is responsible for the financial asset and liability management of the government, through the establishment of investment and borrowing policies and objectives, and the coordination and implementation of cash management, investment and borrowing activities. The Branch manages, reports and accounts for the general government investment assets and debt liabilities, defined benefit employer superannuation liabilities of the Territory, revenues on behalf of the Territory, fortnightly appropriation disbursements to agencies and the unfunded superannuation liabilities for the superannuation benefits for the Members of the Legislative Assembly.

Director, Economics and Financial Analysis (Output 2.1) – Ms Kathy Goth

Economics and Financial Analysis assists the ACT Government by providing economic analysis and advice. Tasks include advising on: the state of the economy; market regulation and reform; and Government projects and policy. The Branch provides support to other areas of ACT government with Cost Benefit Analysis, forecasting, modelling, Regulatory Impact Statements, and applied economic analysis.

Director, Financial Framework Management and Insurance (Output 2.1) – Ms Lisa Holmes

The Financial Framework Management and Insurance Branch is responsible for improving the Territory’s financial management framework, including the Financial Management Act


1996, and providing accounting expertise and strategic financial advice. The Branch also provides policy advice to the Government on insurance matters, including legislative reform, and is responsible for the regulation and administration of the ACT compulsory third party insurance scheme and the Lifetime Care and Support Scheme, as well as continuing the establishment of the National Injury Insurance Scheme.

Executive Director, Finance and Budget (Output 2.2) – Mr Stephen Miners

Finance and Budget Division is responsible for advising the Government and agencies on the development of the Territory’s Budget; financial issues relating to agencies and the Territory; and accounting policies and financial frameworks.

Director, Budget Management and Analysis (Output 2.2) – Mr Trevor Vivian (Acting)

Budget Management and Analysis is responsible for assisting in the development of the Territory’s annual budget, monitoring, analysing and reporting to the Government and other stakeholders on the financial position of a broad range of government agencies and businesses, and advising the Government and agencies on financial management, resource allocation, and budget development issues.

Director, Infrastructure and Budget Management (Output 2.2) – Mr Floyd Kennedy

Infrastructure and Budget Management is responsible for coordinating the development and ongoing monitoring of the Territory’s Capital Works Program, and across government asset management policies. It is also responsible for assisting in the development of the Territory’s budget, and analysing and reporting on agency and business financial performance, and resource allocation.

Director, Budget Coordination and Reporting (Output 2.2) – Ms Sue Baker

Budget Coordination and Reporting is responsible for providing strategic advice on the Government’s financial position, the coordination and development of the Government’s Budget and Supplementary Budgets, the development of the Budget Review and the consolidation of Budget financial statements and financial outcome reporting.

The Branch distributes Chief Minister and Treasury Directorate financial memoranda that provide advice to agencies across government on various financial issues.

The Branch also provides periodic reporting to the Australian Bureau of Statistics and the Commonwealth Grants Commission on behalf of the Government.

Executive Director, Expenditure Review (Output 2.2) – Mr Neil Bulless

Director, Expenditure Review (Output 2.2) – Mr Stuart Friend

Expenditure Review is responsible for expenditure review activities on specific services and functions as determined by the Government. It also undertakes broader across government reviews on discrete areas of activity or spending as requested.

Executive Director, Infrastructure (Output 2.2) – Mr Peter Murray (Acting)

The Infrastructure Finance and Advisory Division brings together specialist capability in the support of: selection, funding, implementation, delivery and whole‐of‐life transaction management of complex and major infrastructure projects.


To enable and facilitate the delivery of major and complex infrastructure projects in the ACT, the Division’s core functions comprise supporting and advising on Public Private Partnership (PPP) transactions, including procurement; providing advice on major ACT Government infrastructure projects; providing whole‐of‐life PPP project transaction support; developing and implementing The Partnerships Framework policy; reviewing PPP contract management arrangements; and providing commercial support on unsolicited proposals.

Director, Infrastructure, Policy and Analysis (Output 2.2) – Mr Damon Hall

The Infrastructure Policy and Advisory Branch is responsible for major infrastructure and PPP policy and analysis. The Branch leads analysis and evaluation of unsolicited proposals for major infrastructure. The Branch also maintains and periodically updates the Territory’s PPP policy guidance material, The Partnerships Framework.

Executive Remuneration All executives employed by the Directorate were paid in accordance with Determinations of the ACT Remuneration Tribunal and relevant laws and instruments including the Public Sector Management Act 1994 and the Public Sector Management Standards 2006.

Significant Management Committees Name of Committee Role of Committee ACTPS Strategic Board The ACTPS Strategic Board, chaired by the Director‐General CMTD

included all Directors‐General, and the Under Treasurer. The Commissioner for Public Administration and the Deputy Director‐General Policy and Cabinet (secretary) also attended. The Board provided whole of government leadership and strategic direction to the ACTPS.

CMTD Executive Management Group

The Executive Management Group met monthly to review corporate governance matters. Its membership consisted of the Director‐General; Under Treasurer; the Deputy Directors‐General of Policy and Cabinet, and Workforce Capability and Governance; the Director Corporate Management, and the Chief Finance Officer.

Audit and Risk Committee (Further details are available in C.2 Risk Management and Internal Audit)

The Audit and Risk Committee assisted the Director‐General in fulfilling her oversight and governance responsibilities. The Committee’s functions are governed by an Audit and Risk Committee Charter. Membership of the Committee included appointees from the Directorate, an executive from another ACT government agency (the Education and Training Directorate) and an independent chair. Observers and a representative from the ACT Auditor‐General’s Office also regularly attended meetings.


Name of Committee Role of Committee Health and Safety Committee The Committee provided a way for management and workers to meet

regularly and discuss workplace health, safety and wellbeing matters. In accordance with Division 5.4 Section 77 of the Work Health and Safety Act 2011, the functions of the HSC were:

to facilitate cooperation between the person conducting a business or undertaking and workers in instigating, developing and carrying out measures designed to ensure the workers' health and safety at work;

to assist in developing standards, rules and procedures relating to health and safety that are to be followed or complied with at the workplace; and

any other functions prescribed by regulation or agreed between the person conducting the business or undertaking and the Committee.

The Committee consisted of employee and management representatives. Corporate Management provides secretariat support.

Directorate Consultative Committee (DCC)

The Chief Minister and Cabinet Directorate Enterprise Agreement 2011‐2013 provided for the establishment of a DCC. Key objectives of the DCC were to:

monitor the operation and implementation of the Agreement; consider any proposed new or significant changes to

Directorate policy statements and guidelines that relate to the provisions of the Agreement;

exchange information about workplace issues affecting employees; and

consult on any existing performance management schemes, and on the development of any new performance management schemes, in the Directorate.

DCC consisted of employee and management representatives. With Corporate Management providing secretariat support. The new ACT Public Service Administrative and Related Classifications Enterprise Agreement 2013‐2017 continues to provide for the operation of DCCs.

Information Management and Information Communications Technology (IMICT) Committee

The role of this committee was to provide a Directorate forum to: engage in discussions on IMICT matters; ensure the management of IMICT governance across CMTD; develop and endorse CMTD IMICT specific policies and

processes; and engage with Shared Services ICT at a strategic level on CMTD

specific matters. Membership consisted of the Director, Corporate Management (Chair), senior representation from all divisions and representation from Shared Services ICT, with Corporate Management providing secretariat support.


C.2 Risk Management and Internal Audit

Risk Management In accordance with the requirements of the ACT Government Enterprise‐Wide Risk Management Framework, and as part of its overall governance framework, the Directorate had in place:

an overarching Risk Management Policy setting the context for integrating risk management into all aspects of the Directorate's activities and processes;

a Risk Management Framework that outlines risk management practices and responsibilities for risk management implementation, business continuity processes and fraud and corruption prevention across the Directorate; and

a Risk Analysis and Treatment Strategies document that identifies the key Directorate risks, their sources, impacts and current mitigation strategies.

The Executive Management Group undertook monitoring of the Directorate's risk assessment and treatment strategies. The Audit and Risk Committee also regularly reviewed the Directorate's approach to setting an appropriate control and risk management environment.

The Director, Corporate Management, was the Senior Executive Responsible for Business Integrity Risk (SERBIR) and is responsible for the reporting of risk under the Risk Management Framework.

Internal Audit Internal Audit is an independent assurance and consulting activity, reviewed and evaluated the effectiveness of the Directorate’s risk management, internal control, and governance practices. Activities of the Directorate’s Internal Audit function were reported through the CMTD Audit and Risk Committee (the Committee) to the Director‐General. The Committee’s functions were governed by the CMTD Audit and Risk Committee Charter.

The Committee comprised an Independent Chair and four members (three executives from CMTD and one executive from another ACT Government directorate). Alternate members were also appointed to attend meetings in the absence of members as required. The Chief Finance Officer (CFO) and representatives from the Auditor‐General’s Office were also invited to attend meetings as observers, with the SERBIR; the Director, Financial Framework Management and Insurance Branch of the Economic and Financial Group; and the Director, Budget Strategy and Reporting Branch of the Finance and Budget Division, invited as required.

The objective of the Committee was to provide independent assurance and assistance to the Director‐General on the Directorate’s risk, control and compliance framework, and its external accountability responsibilities.

The Committee, in fulfilling its objectives, assisted the Director‐General in the discharge of her responsibilities for exercising due care, diligence and skill in relation to the Directorate’s reporting of financial information, application of accounting policies, adequacy of internal


controls, financial and risk management (including work health and safety risks), and compliance with applicable laws.

Internal Audits were outsourced to members of the ACT Government Internal Audit Services Panel. Internal audits conducted for CMTD were selected from a work program that is revised annually and approved by the Director‐General. The Committee monitors action taken by CMTD to implement all audit report recommendations. Internal Audits completed during the year included reviews of:

Acceptance of Gifts or Hospitality; Leave Management; Recruitment and Contractors; Employee Benefits, including Superannuation; Centenary of Canberra Post Event Preparedness; Website Accessibility and Compliance; and Compulsory Third‐Party Insurance Processes.

Internal Audits commenced during the year, but not complete as at 30 June 2014, include reviews of:

the Directorate’s Internal Audit Function; and the Workers’ Compensation Premium Devolution Model.

The Audit Committee held 11 meetings during the year. The number of meetings attended by committee members and observers is as follows:

Name of Member Position Duration Meetings attended

John Gordon Independent Chair July 2013 to June 2014 11 / 11 Andrew Kefford Member July 2013 to June 2014 8 / 10 Leanne Cover External ACT Government

Member July 2013 to June 2014 6 / 8

Karen Doran Member July 2013 to June 2014 6 / 7 Nicole Masters Member July 2013 to January 2014 6 / 9 Mick Chisnall Member April to June 2014 2 / 2 Meg Brighton Alternate Member July to November 2013 2 / 2 Joanne Garrisson External ACT Government

Alternate Member July 2013 to June 2014 3 / 3

Patrick McAuliffe Alternate Member July 2013 to June 2014 4 / 4 Sue Baker Alternate Member November 2013 to

February 2014 2 / 2

Paul Ogden Observer (CFO) July 2013 to June 2014 11 / 11 Sue Hall Observer (SERBIR) July 2013 to June 2014 2 / 2 Sue Baker Observer April to June 2014 1 / 1 Representative from the Auditor‐General’s Office

Observer/s July 2013 to June 2014 9 / 11

Note: Members, Alternate Members and Observers have only been listed in the table above where they have been required to attend at least one meeting during the financial year.


C.3 Fraud Prevention The Directorate was committed to minimising the incidence of fraud and corruption through the development, implementation and regular review of a range of fraud prevention and detection strategies. As required under the ACTPS Integrity Policy, the Directorate had in place a Fraud and Corruption Prevention Plan and a Fraud Risk Register.

The objective of the Fraud and Corruption Prevention Plan was to provide the basis of CMTD's actions to control fraud and to identify those key activities performed by the Directorate that require the implementation of additional controls to reduce the likelihood of fraud occurring. The Plan provided an overview of the Fraud Control Framework established within the ACTPS, the role and functions performed by CMTD, including its purpose, objectives and goals, and organisational arrangements.

Against this background, the Plan analysed the exposure of CMTD to fraud and, using a control self‐assessment framework, assessed the existing controls implemented to minimise fraudulent activity. The conclusion of the fraud environment assessment was that, overall, there is a low to medium fraud risk exposure for CMTD.

A number of areas were identified where there is a need to implement additional controls, and to ensure that the current controls are acting effectively in reducing the likelihood of fraud. For each of these areas, strategies were identified to improve the internal control structure. These strategies are included in the Fraud Risk Register.

During the reporting period, a review was undertaken of the Fraud Plan and Risk Register, and the updated documents endorsed by the Director‐General.

The Directorate also provided guidance on the level of conduct and work performance required of the Directorate's staff.

There was access available for all staff (through the Directorate's intranet) to these documents and other information concerning fraud awareness and prevention, together with details of the appropriate contact officers. These include the Risk and Fraud Plans, the Fraud Risk Register, the ACTPS Integrity Policy, information on the Public Disclosure Act 2012 and procedures for actioning Public Interest Disclosures.

A fraud and ethics workshop was held for staff during the year. The workshop aimed to give participants an understanding of fraud and corruption, conflict of interest, their obligations under the Code of Ethics and Code of Conduct, and the procedures for reporting fraud and unethical behaviour.

There were no incidences of fraud reported in the Directorate during 2013‐14.

C.4 Legislative Assembly Inquiries and Reports There were three Legislative Assembly Committee Reports released during the reporting period relating to CMTD, two by the Public Accounts Committee and one by the Select Committee on Estimates 2013‐14. Details of the recommendations and the Directorate’s responses are provided below.


Committee Report Title Date Tabled Select Committee on Estimates 2013‐14

Report 1: Appropriation Bill 2013‐14

Report tabled 6 August 2013Government Response tabled 13 August 2013

Public Accounts Committee Report 3: Report on Annual and Financial Reports 2011‐12

Report tabled 6 June 2013 Government Response tabled 19 September 2013

Public Accounts Committee Report 5: Appropriation Bill 2013‐2014 (No 2)

Report tabled 6 May 2014 Government Response tabled 13 May 2014

Select Committee on Estimates 2013‐14 Report 1: Appropriation Bill 2013‐14 The Select Committee on Estimates 2013‐2014 report provides information and recommendations on the Appropriation Bill 2013‐2014. The committee made one recommendation in relation to Chief Minister and Treasury Directorate that was accepted by the Government. The recommendation called on the Government to investigate Public Private Partnerships (PPPs) for infrastructure programs. The Government responded that it was setting up a specialist team to develop a policy framework and guidance notes for PPPs.

The Infrastructure Finance and Advisory Division (IFA) was established in February 2014. IFA was originally funded through the 2013‐14 2nd Appropriation to support major infrastructure delivery in the ACT, with specific responsibility for PPP, Design Construct Maintain Operate and unsolicited public infrastructure proposals. IFA has oversight of the Territory’s first PPP, the ACT Courts PPP Project. It has approved funding in the 2014‐15 Budget. Further details on the Infrastructure Finance and Advisory Division are provided in Output 2.2 Financial Management of section B.2 Performance Analysis.

Public Accounts Committee Report 3: Report on Annual and Financial Reports 2011‐12 This report of the Public Accounts Committee examined the 2011‐12 annual and financial reports of a number of agencies including the Chief Minister and Treasury Directorate.

The Committee made a detailed recommendation on statements of performance, including the need for them to be clearly defined, include sufficient explanatory information, meet the reporting timetable and that they provide meaningful information.

The Government agreed in part to this recommendation noting that agencies will continue to work to improve their reporting data, ensuring completeness, accuracy, relevance, clarity and usefulness of information provided. There were two parts of this recommendation dealing with comparisons with other jurisdictions and previous periods that the Government did not agree to because the purpose of the accountability indicators is to assess whether an entity has performed compared to set targets for the financial year, not to provide trend analysis or comparisons to other jurisdictions. Each year, CMTD reviews its statement of performance as part of the budget process and when reporting on the results at the end of year provides a range of notes to assist the reader in understanding the information provided.


The Committee made several recommendations about the Chief Minister informing the ACT Legislative Assembly on progress regarding a whole of government policy on the management of feedback and complaints. The Government agreed to these recommendations noting that work was still underway, including consultation with the Ombudsman, with finalisation initially expected in June 2014.

A whole of government feedback and complaints policy and system was to be trialled through the implementation of the Public Interest Disclosure Act 2012 (PID Act), which comprised the creation of guidelines and a database for managing complaints for use across the sector. The implementation of the PID Act has now been completed, but during that process a broader project regarding the Service‐wide adoption of a single approach to Customer Relationship Management (CRM) was commenced by Service ACT and will include whole of government feedback and complaints. This work is being overseen by the ACT Government CRM working group. The working group will explore CRM system options that would deliver on a single approach for customers, while meeting the current and future business needs of directorates.

Consultation with the Ombudsman regarding the management of feedback and complaints has taken place, and discussions were also held about implementation of the PID Act specifically. Given their interest in how feedback and complaints are handled across ACT Government, there will be further consultation with the Ombudsman during the process of investigating CRM system options.

The Government agreed to two recommendations made about the ACT Government’s Guidance on Caretaker Conventions, one relating to decision‐making when it is not clear who will form the next government and the other on whether specific sections are required for government enterprises. The ACT Government’s Guidance on Caretaker Conventions was re‐assessed prior to the federal election in 2013, and again prior to the ACT Aboriginal and Torres Strait Islander Elected Body Elections held in July 2014.

The ACT Government’s Guidance on Caretaker Conventions will undergo thorough review in 2016, and any revisions required will be made in time for the next ACT Government election.

A recommendation was also made relating to the tabling of the evaluation of the Centenary of Canberra program in the ACT Legislative Assembly. While acknowledging the program would be evaluated, the Government noted that the Minister for Tourism and Events was not the responsible Minister. Monitoring and evaluation of Centenary of Canberra outcomes will continue until 2020. This will be undertaken by several ACT Government directorates and reported on by the Chief Minister, Treasury and Economic Development Directorate in January each year.

Public Accounts Committee Report 5: Appropriation Bill 2013‐2014 (No 2) This report of the Public Accounts Committee examined the Appropriation Bill 2013‐2014 (No2), which included Chief Minister and Treasury Directorate.

The Government agreed to consider the Committee’s recommendation that the Government establish a threshold that proposed appropriations should be equal to or


greater than for inclusion in supplementary appropriation bills. The appropriate balance between setting thresholds and ensuring consistency and accountability for supplementary appropriation bills will be considered in future supplementary appropriations.

The Committee also made two recommendations in relation to the investigation in a timely manner and reporting to a minimum standard of bullying complaints. The Government agreed noting that the ACTPS industrial agreements set out the procedures for investigation of complaints and that advice was being prepared by the Commissioner for Public Administration and the Work Safety Commissioner on appropriate standards of investigation to satisfy legislative and procedural requirements. The Public Sector Workforce Relations Unit in CMTEDD is currently finalising a manual that will provide guidance on the investigation of complaints of misconduct in the ACTPS.

C.5 Auditor‐General and Ombudsman Reports During the year the Auditor‐General’s Office released three reports that dealt with matters relating to CMTD. Details of these reports are provided below. No Ombudsman reports relating to CMTD were released.

Office Report Title Date Released ACT Auditor‐General Report No.7/2013: Report on

2012‐13 Financial Audits 16 December 2013

Report No.2/2014: Report on the Water and Sewerage Pricing Process

2 April 2014

Report No.5/2014: Capital Works Reporting

27 June 2014

Report No.7/2013: Report on 2012‐13 Financial Audits This report provides the Auditor‐General’s findings on the financial statements and reports of factual findings on information contained in agency 2012‐13 annual reports. The Government agreed to the majority of recommendations in this report. Work will continue on the preparation of financial statements and statements of performance in the areas of quality and timeliness. Many processes already exist to strengthen these areas such as Internal Audit and Risk Committee monitoring, internal control mechanisms with agencies and a range of guidance papers issued by CMTD.

The report made a number of general recommendations relating to the prompt resolution and monitoring of audit findings; the preparation of high quality financial statements and statements of performance; and the timely presentation of statements of performance to the Audit Office. CMTD referred all findings included in audit management reports to the Directorate’s Audit and Risk Committee for monitoring, and impacted business units are required to regularly report on their progress in addressing those findings. The Directorate takes pride in preparing high quality Annual Financial Statements and Statements of Performance, and providing those documents in a timely manner. The Directorate also continually strives to improve on the quality of those documents and the information contained within them, including the commentary to explain material variances from planned performance.


The report also recommended the preparation of a management discussion and analysis for the Territory’s Financial Statements, which will be prepared to accompany the Territory’s 2013‐14 Consolidated Annual Financial Statements.

Report No.2/2014: Report on the Water and Sewerage Pricing Process This report provides the Auditor‐General’s findings on the efficiency and effectiveness of the processes for the regulatory review of water and sewerage prices in the ACT. The Auditor‐General also considered ACTEW’s cooperation with the Independent Competition and Regulatory Commission in the water and sewerage pricing process for 2013‐19.

The Auditor‐General’s overall recommendation was that the ACT Government reviews the water and sewerage price setting framework including legislative, governance and administrative arrangements. The Government agreed and stated that it would introduce improvements to the independent price regulation framework taking into account the Territory’s legislative, governance and administrative arrangements.

Detailed recommendations relating to the framework included:

reviewing and amending the Independent Competition and Regulatory Commission Act 1997 to clarify the relationship between Part 3 (Investigations) and Part 4 (Price directions) of the Act; and

the ACT Government, in consultation with key stakeholders, should develop a set of principles for the conduct of water and sewerage pricing investigations in the ACT.

The Government agreed with the need for more clarity around these issues and is continuing to develop appropriate administrative arrangements for the review of the water and sewerage pricing framework. This review is expected to be undertaken during the second half of 2014.

The report recommended that the Government address issues associated with the potential invalidity of the current price direction. The Government agreed stating that to remove any doubt it would introduce appropriate legislation to ensure the validity of the price directions, although it noted that, in its view, the Terms of Reference ensure the validity of the price direction. The Legislative Assembly has subsequently passed the Independent Competition and Regulatory Commission (Water and Sewerage Price Direction) Act 2014, which addressed the potential invalidity of the price direction, therefore ensuring that this issue was adequately resolved.

The Auditor‐General also recommended the ACT Government provide more detailed guidance to ACT Government entities, specifically territory‐owned corporations and statutory authorities, on protocols during the caretaker period. The Government agreed stating that as part of the usual process to be conducted before the 2016 election, the Government will consider what changes are required to the Guidance on Caretaker Conventions in relation to the Territory Owned Corporations and Statutory Authorities. It will also consider the benefits that are to be gained from increased opportunities for training or consultation between Territory Owned Corporations and Statutory Authorities and the relevant staff within the Chief Minister, Treasury and Economic Development Directorate that are responsible for the administration of the caretaker provisions.


Report No.5/2014: Capital Works Reporting The purpose of this audit was to provide an opinion on the effectiveness of reporting on the capital works program to CMTD, the Budget Committee of Cabinet and the public.

The report recommended CMTD review and streamline the templates for reporting on capital works in progress. The Directorate regularly reviews and refines the reporting templates in the normal course of business. Many changes were implemented at the start of the 2013‐14 financial year, with smaller refinements made in the last couple of months, further streamlining is planned for 2014‐15 reporting.

The report made three recommendations in relation to the Capital Works Program Bi‐monthly Monitoring and Reporting to the Budget Committee of Cabinet Guidance Paper:

to revise the report to reflect its current purpose; to consult with the Budget Committee of Cabinet to determine the timeliness of

information it requires within the report; and confirm with the Budget Committee of Cabinet its information needs on project risks

and associated mitigation strategies and to reflect the results in a revised Capital Works Program Bi‐monthly Monitoring and Reporting to the Budget Committee of Cabinet Guidance Paper.

The Directorate will consult with the Budget Committee of Cabinet regarding these recommendations and revise guidance material accordingly.

The report recommended all directorates should check the quality of information to be included in capital works reports to the Chief Minister and Treasury Directorate and the Budget Committee of Cabinet, and have documented quality control procedures.

The Directorate was not required to report to Budget Committee of Cabinet during 2013‐14 with respect to its own capital works, due to it having only ICT Capital works projects that were not required to be reported to the Committee. However, the Directorate was required to provide monthly capital works reports to the Directorate’s Finance and Budget Division (FABD).

Strategic Finance within CMTD peer reviewed information provided by business units responsible for the management of the Directorate’s capital works in progress (which were financially completed prior to 30 June 2014). Similarly, the monthly capital works reports are also peer reviewed within Strategic Finance prior to being provided to FABD.

Legislation Based Reporting 64

D. Legislation Based Reporting


D.1 Public Interest Disclosures The object of Public Interest Disclosure Act 2012 is to promote public interest by:

providing a way for people to make public interest disclosures; ensuring people who make public interest disclosures are protected and treated

respectfully; ensuring public interest disclosures are properly investigated and managed; and ensuring that appropriate consideration is given to the interests of people who make

public interest disclosures and the people who are the subject of the disclosures.

As required by the Act, the Director‐General declared Designated Disclosure Officers in the Directorate – the Director, Corporate Management and the Director, Investment Branch. The role of the Designated Disclosure Officer is to receive and make an initial assessment of a disclosure, and to act as a central coordination point for all matters relating to the disclosure, as well as communicate the progress and decisions on the disclosure to the discloser.

As required by the Commissioner for Public Administration's Public Interest Disclosure Guidelines 2013, the Directorate developed procedures for dealing with disclosures.

One disclosure was made during the year. It was not progressed under the PID Act as preliminary assessment found that it did not meet the requirements of the Act.

D.2 Freedom of Information

Section 7 Statement Section 7 of the FOI Act requires the Directorate to prepare and publish a statement outlining the Directorate's organisation, functions and decision‐making powers, the categories of documents available, and facilities available to the public for accessing the documents; the section 7 statement is current at 30 June 2014.

Organisation, Function and Decision‐Making Powers CMTD provided strategic advice and support to the Chief Minister, the Treasurer, the Minister for Workplace Safety and Industrial Relations, and the Cabinet.

The Directorate was responsible for:

the provision of direction and coordination across the ACTPS on policy and strategy, managing the ACT's intergovernmental relationships and supporting the Chief Minister's role on COAG;

advising the Government and agencies on the Territory's budget, management of the Government's financial assets and liabilities, including superannuation liabilities and investments, economic policy and advice, and federal financial relations;

strategic planning and direction on public sector standards, including ACTPS employment, workforce culture and capability, industrial relations and work safety, the implementation of machinery of government changes, and the promotion of ethics and accountability;


D.1 Public Interest Disclosures The object of Public Interest Disclosure Act 2012 is to promote public interest by:

providing a way for people to make public interest disclosures; ensuring people who make public interest disclosures are protected and treated

respectfully; ensuring public interest disclosures are properly investigated and managed; and ensuring that appropriate consideration is given to the interests of people who make

public interest disclosures and the people who are the subject of the disclosures.

As required by the Act, the Director‐General declared Designated Disclosure Officers in the Directorate – the Director, Corporate Management and the Director, Investment Branch. The role of the Designated Disclosure Officer is to receive and make an initial assessment of a disclosure, and to act as a central coordination point for all matters relating to the disclosure, as well as communicate the progress and decisions on the disclosure to the discloser.

As required by the Commissioner for Public Administration's Public Interest Disclosure Guidelines 2013, the Directorate developed procedures for dealing with disclosures.

One disclosure was made during the year. It was not progressed under the PID Act as preliminary assessment found that it did not meet the requirements of the Act.

D.2 Freedom of Information

Section 7 Statement Section 7 of the FOI Act requires the Directorate to prepare and publish a statement outlining the Directorate's organisation, functions and decision‐making powers, the categories of documents available, and facilities available to the public for accessing the documents; the section 7 statement is current at 30 June 2014.

Organisation, Function and Decision‐Making Powers CMTD provided strategic advice and support to the Chief Minister, the Treasurer, the Minister for Workplace Safety and Industrial Relations, and the Cabinet.

The Directorate was responsible for:

the provision of direction and coordination across the ACTPS on policy and strategy, managing the ACT's intergovernmental relationships and supporting the Chief Minister's role on COAG;

advising the Government and agencies on the Territory's budget, management of the Government's financial assets and liabilities, including superannuation liabilities and investments, economic policy and advice, and federal financial relations;

strategic planning and direction on public sector standards, including ACTPS employment, workforce culture and capability, industrial relations and work safety, the implementation of machinery of government changes, and the promotion of ethics and accountability;


ACTPS communications, community engagement, and provision of public affairs advice; and

supporting the Head of Service, the ACTPS Strategic Board and its sub‐committees.

A list of legislation under which the Directorate and its officers administered, or exercised statutory powers, is available at www.legislation.act.gov.au/ni/2013‐244/20130701‐55352/pdf/2013‐244.pdf.

Public Participation in Decision‐Making Arrangements for public participation in decision‐making include public submissions to inquiries; discussion at public meetings; consultative committees for specific purposes; access to records through FOI requests; comments on draft documents; comments on Bills before the Legislative Assembly; and contact with the relevant Minister.

Categories of Documents The Directorate holds two basic categories of documents:

Documents available on request and without charge

Documents within this category include publications produced by the Directorate on various aspects of its activities. These are available on request from the Directorate and may also be available on the Directorate's website (www.cmd.act.gov.au) or on the ACT Government Contracts Register (www.procurement.act.gov.au/contracts) which lists contracts made by the Territory, over the value of $25,000.

Documents of other kinds that may be available under the FOI Act

general files ‐ including internal and public documents, minutes of meetings of management and other committees, agendas and background papers, policy statements, and financial and staffing estimates;

communications with other directorates; program and policy files; photographs, videos and films; maps, plans and brochures; technical reports and discussion papers; financial and accounting records; details of contracts and tenders; files on applicants and clients; records of government including the machinery of government; and leases and deeds of agreement.

Facilities for Access Those seeking information are encouraged to contact the Directorate before resorting to the more formal FOI procedure. In many cases, it may be possible to access information more quickly and efficiently through such an approach.

The Directorate is located in the Canberra Nara Centre, corner of Constitution Avenue and London Circuit, Canberra City. Several bus stops are close to the Nara Centre in London Circuit. Short‐term car parking is located opposite the Centre and a disabled car park space is available on Nangari Street.


Information regarding bus routes and timetables can be obtained from ACTION (www.action.act.gov.au/timetables_and_maps), or by telephone 131 710.

FOI requests should be directed to:

FOI Coordinator Chief Minister, Treasury, and Economic Development Directorate GPO Box 158 CANBERRA ACT 2601 Telephone: +61 2 6205 0238 Fax: +61 2 6207 5886 Email [email protected]

Section 8 Statement Section 8 of the FOI Act requires directorates to prepare an index of documents that are used in making a decision or recommendation under an enactment or scheme. The statement is current as at 30 June 2014 and is available from the Directorate’s FOI Coordinator or at the Directorate’s website at www.cmd.act.gov.au/functions/publications.

Section 79 Statement In accordance with section 79(2) of the FOI Act, the Directorate provides the following information regarding FOI requests received by the Directorate during the reporting year. Access decisions in relation to FOI requests are categorised as full release, partial release, entirely exempt, technical refusal (no documents located), still being processed, transferred and withdrawn.

In 2013‐14, the Directorate received a total of thirty‐five new requests, and carried over four requests from 2012‐13. The Directorate received three internal review requests in 2013‐14 and one ACAT review.

Of the total of 39 FOI requests:

twenty‐three had decisions completed during the year; four applications were withdrawn; six were ongoing as at 30 June 2013; and the Directorate was waiting for responses from applicants for six requests where it had

requested a revision/clarification of the scope of the requests, or where it had advised that processing charges would be imposed.

The three internal reviews and one ACAT review were completed during the year.

Comparative Statistics on FOI Requests from 1 July 2011 to 30 June 2014 Applicant Type

For requests received during the year (excludes requests carried over from the previous year where decisions on access had not been completed within the reporting period)


2013‐14 2012‐13 2011‐12

Applicant Type No. % No. % No. % ACT Legislative Assembly Member 9 25% 8 44% 23 61%Member of the Public 16 45% 6 33% 8 21%Legal 4 14% 3 17% 1 3%Company 1 3% 0 0% 0 0%Media 3 8% 1 6% 4 10%Organisation/Association 2 5% 0 0% 2 5%Total 35 100% 18 100% 38 100%

Outcomes of FOI Requests

(Includes decisions on requests received during the year and on requests carried over from the previous year)

2013‐14 2012‐13 2011‐12

Decision No. % No. % No. % Full Release 7 26% 1 11% 4 17%Partial Release 12 45% 7 78% 13 54%Full Exemption 2 7% 0 0% 0 0%Technical Refusal (No Documents Exist) 2 7 % 1 11% 5 21%Withdrawn 4 15% 0 0% 2 8%Total 27 100% 9 100% 24 100%Transfer to another agency1 10 0 3 Request carried over into the next year 6 7 3 Awaiting response from applicant on scope revision/clarification or impose charges

6 6 11

Note: 1 The subject matter of these requests were related to the functions of other directorates.

Request Response Times

(Excludes withdrawn and transferred requests)

Year 0‐30 Days 31‐45 Days 46‐60 Days 61‐90 Days 90+ Days 2013‐14 15 (65%) 2 (9%) 2 (9%)1 3 (13%)1,2 1 (4%)3

2012‐13 3 (33%) 0 4 (45%)1 2 (22%)1 02011‐12 9 (41%) 6 (27%)1 3 (14%) 1 (4%)1 3 (14%)Notes: 1 Includes a consultation period for one request. 2 Includes one request delayed by applicant’s scope revision. 3 Received by transfer after the deadline.

In processing requests, the Directorate makes every effort to comply with the required timeframes. There were, however, situations where requests were completed outside the statutory time frame. In situations where it appears that the thirty‐day timeframe for a response will not be met, the Directorate will advise the applicant and request an extension of time.

Under sections 26, 27 and 27A of the Act, the Commonwealth, state governments, commercial organisations and private individuals must be consulted where their interests


may be adversely affected by the release of documents. Subsection 18 of the Act provides for the thirty‐day timeframe to respond to an FOI request to be extended by thirty days for documents on which third party consultation was necessary.

Other reasons for the extended response times were:

the amount and complexity of information to be examined and the release decisions required in relation to some of the applications; and

particular workload and resource issues within the Directorate at the time.

Requests for Internal Review

Requests for Internal Review (including carryover requests)

Affirmed Partial Release Overturned Ongoing

3 3

Applications to the ACT Civil and Administrative Tribunal (ACAT) for Review

Requests to ACAT Affirmed Overturned Ongoing Withdrawn 1 1

Fees and Charges

In accordance with section 28 of the FOI Act and the Freedom of Information (Fees) Determination 2014, the Directorate may decide an applicant is liable to pay a charge in respect of a FOI request.

A deposit of $152.64 was collected by the Directorate during 2013‐14.

Requests to Amend Personal Records (section 48)

No applications were made to amend personal records.

D.3 Human Rights Act As part of the Territory’s implementation of the National Injury Insurance Scheme, the Government introduced the Lifetime Care and Support (Catastrophic Injuries) Bill 2014. Preparation of the Bill included liaison with the Human Rights Unit in the Justice and Community Safety Directorate to identify any specific human rights issues that needed to be addressed and incorporated into the Bill. These issues were set out in the Explanatory Statement to the Bill, and related to the removal of some common law heads of damage and the sharing of information with certain parties. The Human Rights Commissioner did not reach a view in relation to the removal of some common law rights. Given the nature of the Lifetime Care and Support Scheme, it was not considered that the rights referred to by Human Rights Commission were limited by this Bill, with the right to equality actually enhanced under the Bill. As a no‐fault scheme, anyone who is catastrophically injured in a motor accident is able to access the scheme.

The ACT Human Rights Unit has also been consulted during the development of the new public sector legislation. This consultation will continue as the bill is finalised.


D.4 Territory Records Act The CMTD Records Management Program is based on the Territory Records Act 2002 and establishes a framework for ensuring responsible management of records and record keeping systems. The framework means that the Directorate can effectively:

provide evidence of decisions, authorisations and activities; and support business activities through the making, proper storage and retrieval of useable

and reliable records, thus contributing to the efficiency and effectiveness of the Directorate.

As part of the Records Management Program, the Directorate has a Records Management Policy and a Procedures Manual. The Directorate uses a Business Functional Thesaurus based on the Territory Version of the Keyword AAA and agency‐specific records disposal schedules. The disposal schedules currently approved for use by the Directorate are set out in the table below.

Approved Disposal Schedules

Records Disposal Schedule Name Effective Year and No. Territory Records (Records Disposal Schedule – Arts and Cultural Development Records) Approval 2004 (No.1)

18 June 2004 Notifiable Instrument No. NI2004‐179

Territory Records (Records Disposal Schedule –Legislative Assembly Secretariat Records) Approval 2004 (No.1)


Territory Records (Records Disposal Schedule – Traffic and Transport Records) Approval 2004 (No.1)


Territory Records (Records Disposal Schedule –Disability, Housing and Community Services Records) Approval 2005 (No.1)

25 February 2005 Notifiable Instrument No. NI2005‐94

Territory Records (Records Disposal Schedule – Inquiries & Commissions Records) Approval 2005 (No.1)

6 May 2005 Notifiable Instrument No. NI2005‐155

Territory Records (Records Disposal Schedule – Disaster Recovery (Human Services) Records) Approval 2005 (No.1)

6 May 2005 Notifiable Instrument No. NI2005‐157

Territory Records (Records Disposal Schedule –Workcover Records) Approval 2005 (No.1)

28 October 2005 Notifiable Instrument No. NI2005‐399

Territory Records (Records Disposal Schedule – Venue & Event Management Records) Approval 2005 (No.1)


Territory Records (Records Disposal Schedule – Public Sector Management Records) Approval 2006 (No.1)

3 February 2006 Notifiable Instrument No. NI2006‐29

Territory Records (Records Disposal Schedule – Land Development Records) Approval 2006 (No.1)

21 April 2006 Notifiable Instrument No. NI2006‐136

Territory Records (Records Disposal Schedule –Community Development Records) Approval 2006 (No.1)

14 July 2006 Notifiable Instrument No. NI2006‐257

Territory Records (Records Disposal Schedule – Industry Long Service Leave Records) Approval 2006 (No.1)

14 July 2006 Notifiable Instrument No. NI2006‐256

Territory Records (Records Disposal Schedule – Industry Development Records) Approval 2006 (No.1)

26 September 2006 Notifiable Instrument No. NI2006‐347


Records Disposal Schedule Name Effective Year and No. Territory Records (Records Disposal Schedule –Information and Communications Technologies Records) Approval 2007 (No.1)


Territory Records (Records Disposal Schedule –Government Coordination Records) Approval 2007 (No.1)


Territory Records (Records Disposal Schedule – Milk Vending Records) Approval 2007 (No.1)


Territory Records (Records Disposal Schedule –Procurement Records) Approval 2007 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Establishment Records) Approval 2009 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Legal Services Records) Approval 2009 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Occupational Health and Safety (OH&S) Records) Approval 2009 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Strategic Management Records) Approval 2009 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Technology and Telecommunications Records) Approvals 2009 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Community Relations Records) Approval 2011 (No.1)

8 March 2011 Notifiable Instrument No. NI2011‐84

Territory Records (Records Disposal Schedule –Environmental Management Records) Approval 2011 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Government Relations Records) Approval 2011 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Industrial Relations Records) Approval 2011 (No.1)


Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Information Management Records) Approval 2011 (No.1)


Territory Records (Records Disposal Schedule – Parks, Reserves and Public Places Records) Approval 2011 (No.1)


Territory Records (Records Disposal Schedule –Workplace and Safety Policy Records) Approval 2011 (No.1)



Records Disposal Schedule Name Effective Year and No. Territory Records (Records Disposal Schedule – Territory Administrative Records Disposal Schedules – Personnel Records) Approval 2011 (No.1)


Territory Records (Records Disposal Schedule – Financial Management Records) Approval 2011 (No.1)


Territory Records (Records Disposal Schedule –Compensation Records) Approval 2012 (No.1)


Territory Records (Records Disposal Schedule –Equipment and Stores Records) Approval 2012 (No.1)


Territory Records (Records Disposal Schedule – Fleet Management Records) Approval 2012 (No.1)


Territory Records (Records Disposal Schedule –Publication Records) Approval 2013 (No.1)

30 August 2013 Notifiable Instrument No. NI2013‐370

Territory Records (Records Disposal Schedule – Property Management Records) Approval 2013 (No.1)

30 August 2013 Notifiable Instrument No. NI2013‐371

The Records Management Policy, Procedures Manual, Functional Thesaurus and Records Disposal Schedules were available to staff on the Directorate's intranet site along with ancillary documents that highlight particular procedures or aspects of policy. A corporate factsheet is included in the Key Directorate Information Pack supplied to new staff on commencement. The Policy and Manual are available for public viewing by contacting the Directorate’s Records Manager.

In accordance with section 16(2)(i) of the Territory Records Act 2002, the Directorate has put in place a process to preserve records that may allow people to establish links with their Aboriginal or Torres Strait Islander heritage. This process, outlined in the Directorate's record keeping procedures, requires business units to determine if records contain information that may allow people to establish links with their Aboriginal or Torres Strait Islander heritage before seeking the Directorate's Records Manager's agreement to destroy records and where the record does contain such information, it is retained and preserved as an archive.

Part 3 Agency Records ‐ Access of the Territory Records Act 2002, provides public access to records older than twenty years. Records are presumed to be available for access unless they clearly belong to an exempt category and have been exempted by the Director of Territory Records.

The Directorate continued to work with the ACT Government Archivist and Record Services to respond to inquiries received from members of the public for access to these older records. During the reporting period, the Directorate responded to four public access requests.

Part 3 of the Records Act also deals with access to, and release of, records of the Executive. Under the Act, an Executive record is a record that is formally submitted by a Minister to a meeting of the Executive (or Cabinet) and/or the official record of a meeting of the Executive. Under the Act, at Canberra Day each year, Executive records created more than ten years before that day become accessible.

The list of accessible records is published on the Directorate's website (www.cmd.act.gov.au/functions/publications#aed) and is updated each March.


D.5 Legal Services Directions

Model Litigant Guidelines The Director‐General has the following procedures in place to ensure that the Directorate is aware of, and complying with, the Model Litigant Guidelines.

The Director‐General is advised of all legal disputes and is provided with regular updates as necessary;

The Directorate's legal services are provided by the ACT Government Solicitor's Office, which reviews the Directorate's instructions to ensure compliance with the Model Litigant Guidelines. The Directorate is able to rely upon the Government Solicitor to identify those matters where a question arises as to compliance with the Model Litigant Guidelines and to address it, or elevate it, within the Directorate as appropriate.;

The Directorate's debt recovery legal services for leases in arrears, which were transferred to the former Treasury Directorate from Rhodium, then subsequently transferred to the Chief Minister and Treasury Directorate following the Administrative Arrangements of 9 November 2012, are provided by a private law firm. The law firm is aware of the Model Litigant Guidelines and the procedures in place for dealing with these cases are fully compliant with the Guidelines;

All staff involved in litigation are informed of the guidelines and instructed to comply with them, referring any queries to the ACT Government Solicitor's Office.

No breaches of the Model Litigant Guidelines by the Directorate occurred during the reporting period.

Law Officers (General) Legal Services Direction 2012 During 2013‐14, theDirectorate coordinated a major procurement process for pay parking machines to replace existing machines in off‐street parking areas. In accordance with paragraph 1.9 of the Schedule to the Law Officers (General) Legal Services Direction 2012, the ACT Government Solicitor was instructed to provide advice on this procurement.

The Directorate also provided administrative and secretariat support to the Industry Panel, which was appointed by the Treasurer in April 2014 to consider an application for review lodged by ACTEW Corporation Limited of the Independent Competition and Regulatory Commission’s price direction for water and sewerage services from 1 July 2013.

Within this process, the Directorate undertook procurement activities for the Industry Panel, including two procurement processes related to the provision of legal advice to the Industry Panel. A breach of paragraph 1.2 of the schedule of the Law Officers (General) Legal Services Direction 2012 was made in regard to an initial request for preliminary legal advice by the Industry Panel, where the panel selected an external legal provider without seeking the Chief Solicitor’s approval. A reminder has been sent to all Directorate staff on this matter. In regard to the provision of ongoing legal support to the Industry Panel, as required by paragraph 1.2 of the schedule of the Law Officers (General) Legal Services Direction 2012, a request for approval for the outsourcing of Territory legal work was made to the Chief Solicitor. The Chief Solicitor approved this request.


D.6 Notices of Non Compliance No notices of non compliance were issued to the Directorate during the reporting period.

D.7 Bushfire Risk Management The Directorate was neither the manager of unleased Territory land or owner, during the reporting period, and therefore has no reporting responsibilities under the Emergencies Act 2004.

D.8 Commissioner for the Environment The Directorate was not asked to provide the Commissioner for the Environment with any assistance in the preparation of the State of the Environment Report, nor did the Commissioner carry out any investigations or make any recommendations in relation to the activities of the Directorate.

Human Resource Management Reporting 76

E. Human Resources Management Reporting


E.1 Human Resource Management During 2013‐14, the Directorate’s priorities for strategic human resources were guided by the Directorate’s Corporate and People Plans with the aim to:

sustain a creative, engaged and capable workforce, and care for our people by supporting them with a positive working environment.

Key initiatives and activities undertaken during the reporting period included:

inclusion of people risks in the Directorate’s Risk Plan to contribute to minimising the loss or misuse of resources and ensuring the safety of the Directorate’s workforce, clients and the public;

implementing and actively promoting the ACTPS Values and Signature Behaviours, along with the ACTPS Code of Conduct, supporting a ‘one service’ approach;

implementation of the ACTPS Performance Framework, and strengthening the emphasis on behaviours and conduct as a central pillar for effective performance management;

embedding of the ACTPS RED Framework and its complementary employment strategies;

continuing implementation of the Directorate’s Work Health and Safety Management System, including an engaging Health and Wellbeing Strategy, with a focus on early intervention and strengthening organisational resilience; and

implementation of a learning and development program that supports legislative compliance and management capability development, to ensure the Directorate has a professional workforce with the agility and capacity to respond to future needs.

The Directorate continued to work collaboratively across government at all levels, including contributing to whole of government enterprise bargaining negotiations on replacement enterprise agreements and participation in senior bodies for consideration of workforce related issues in the ACTPS, being the Services Partnership Agreement HR Collaboration Forum, HR Directors and the People Performance Council. The Directorate also participated in the ACTPS All Staff Survey 2014 to inform future workforce management strategies and targeted human resource initiatives across the Sector.

E.2 Learning and Development The Directorate’s learning and development program plays an important role in strengthening workforce and organisational capability, retention and performance. The program was informed by legislative requirements, whole of government initiatives, and Directorate priorities as well by individual staff development plans.

Highlights for 2013‐14 include:

A total of 207 individual attendances in training and development activities facilitated by Corporate Management and the Shared Services Training and Development Unit.

18 executives and managers attended RED Manager training whilst 40 staff attended general RED training; and

the annual CMTD Staff Awards ceremony was held in December with five individuals and six teams recognised for their outstanding contributions, aligned to the ACTPS Values.


Staff Development Training During the reporting period, the Directorate coordinated the delivery of a range of learning and development opportunities based on identified needs to enhance staff capabilities. These learning and development activities included:

Writing for the Web developed staff skills in creating and editing documents for the web, to make Government information easier to use, especially for community members and staff with disabilities.

Introduction to Privacy increased participant’s knowledge of the Privacy Act 1988 (Cwth) and awareness of the issues that arise in the debate about information privacy and the use and disclosure of personal information.

ACT Government Freedom of Information introduced the operations of the Freedom of Information Act 1989 and FOI processing and the exemption provisions.

Fraud and Ethics Awareness focussed on enhancing staff awareness and understanding of obligations and issues relating to fraud and ethics in the ACTPS.

Mastering the Difficult Conversation increased the competence and confidence of managers to engage in conversations with staff about conduct and behaviours, and to effectively manage employee performance.

Respect, Equity and Diversity (General and Managers) provided staff with an understanding of the RED Framework and how it can be applied within the workplace. The manager training looked specifically at managerial responsibilities, particularly their role in bullying prevention.

As at 30 June 2014, there were 38 attendances at training and development programs facilitated by the Shared Services Training and Development Unit. Participation was predominantly in programs that developed information and communications technology, writing and administrative skills.

Study Assistance CMTD continued its support for staff through the Studies Assistance Program. The program provides assistance in the form of paid and unpaid leave and payment of course costs to staff undertaking tertiary studies. In 2013‐14 CMTD, invested approximately $59,855 towards studies assistance for 21 staff.

Whole of Government Learning and Development During the year, the Directorate continued its commitment to whole of government learning and development activities as detailed below.

Initiative Details (No. of participants who attended each program)

ACTPS Graduate Program 3 Future Leaders Program 6Executive Development Program 1


Graduate Program

In 2013, CMTD engaged three graduates under the ACTPS Graduate Program. These graduates completed the program in December 2013. All graduates finished a Graduate Certificate in Public Administration, delivered by the Australia and New Zealand School of Governance at the University of Canberra, as well as Directorate based training specific to their stream.

Three new graduates joined the Directorate in February 2014 and are expected to complete their program in December 2014.

Future Staff Development Training for 2014‐15 will continue to be focused towards supporting the Directorate’s objectives and participation in whole of government programs. The Directorate will draw on the results of the ACTPS Staff Survey, in addition to drawing on formal feedback from learning and development activities, to inform the design and selection of further learning and development activities.

Internships and Work Experience CMTD offered the opportunity for work experience to two people under the Work Experience and Support Program (WESP). Placements were for six weeks. CMTD hosted three work experience people from schools and colleges.

Awards and Recognition In 2013, the Directorate transitioned from a quarterly staff awards program to an annual one. The Director‐General presented the first annual CMTD Staff Awards at the Theo Notaris Centre on 4 December 2013. Five individual staff members and six team awards were presented across four award categories, which aligned with the ACTPS Values; Respect, Integrity, Collaboration, and Innovation.

E.3 Work Health and Safety

Injury Prevention Throughout 2013–14 the focus was on early intervention and injury prevention, including:

comprehensive risk assessment of work related activities to inform effective risk mitigation strategies;

ongoing support and training for the Directorate’s seven Health and Safety Representatives and eight First Aid Officers;

emphasis on increasing the skills of managers and supervisors to show due diligence and effectively support ill or injured workers; and

ongoing promotion of staff health and wellbeing.

Workplace Consultation CMTD provided opportunity for workplace consultation on health and safety matters as follows:


staff, Health and Safety Representatives and management are involved in the development of Work Health and Safety risk registers;

the Directorate’s Health and Safety Committee met quarterly with active representation from Health and Safety Representatives for each Work Group, Executives, Corporate Management, and the Injury Management and Safety Team; and

all business units are encouraged to have health and safety included as an agenda item for team meetings.

Health and Wellbeing CMTD continued a range of initiatives to support and improve staff health and wellbeing, including:

influenza vaccinations provided onsite at no cost to staff; the provision and promotion of professional and confidential counselling services,

available to all staff and their families through the Employee Assistance Program; the health and wellbeing reimbursement initiative for financial assistance towards the

purchase of health promotion activities and sporting equipment; the Directorate renewed its Breast Feeding Accreditation with the Australian

Breastfeeding Association; onsite yoga, pilates and exercise classes have continued, where staff have the

opportunity to participate in one hour sessions throughout the week (staff are responsible for payment for the session);

seated massages provided in‐house in fifteen‐minute sessions once a week (staff are responsible for payment for the session);

support for staff volunteering as blood donors where the absence from the workplace is without loss of pay;

provision of facilities including a carers’ room, quiet room, staff room, showers, lockers and bike racks; and

a range of health promotion seminars and activities during Safe Work ACT Month and Australian Healthy Weight Week.

Inspection and Audits Regular workplace inspections were conducted involving Health and Safety Representatives and management to inform the Directorate’s comprehensive Risk Register. Workplace risk assessments continue to be conducted across the Directorate.

Training Throughout the reporting period, in addition to legislative compliance, training was focused on early intervention and the enhancement of managers’ skills.

The Directorate’s managers and supervisors participated in a wide range of formal training opportunities provided across Government to support the ACTPS Workers’ Compensation and Work Safety Improvement Plan, including:

Managing Injured Workers in the ACTPS; Managing Psychological Illness in the Workplace; and


HR Master Class Series.

CMTD Executives also attended Work Health and Safety Executive Workshops conducted across Government, directly contributing to the demonstration of due diligence in acquiring and keeping up‐to‐date knowledge of work health and safety matters.

All new and returning employees were provided with information regarding workplace health and safety roles, responsibilities, and Directorate structures. This was complemented by one on one workplace inductions by Health and Safety Representatives.

Emergency Warden, First Aid Officer and Health and Safety Representative training was conducted as required to meet legislative requirements. Additionally, First Aid Officers were trained in Mental Health First Aid and Asthma First Aid.

Provisional Improvement Notice No provisional improvement notices were issued during 2013–14 financial year.

Accident or Incident Reporting and Notifiable Incidents There were 20 incidents recorded by CMTD for the reporting period with slips, trips and falls the predominant injury mechanism.

None of the reported incidents were notifiable as per Section 38 of the Work Health and Safety Act 2011.

Injury Management The Directorate continues to engage rehabilitation providers, for both compensable and non‐compensable injuries, to support injured employees’ early, safe and supported return to the workplace.

E.4 Workplace Relations Negotiations for the replacement of the ACTPS CMCD Enterprise Agreement 2011‐2013 were finalised in May 2014. As a result of the negotiations, the ACT Public Service Administrative and Related Classifications Enterprise Agreement 2013‐2017 was approved by Fair Work Australia on 23 May 2014.


SEAs and AWAs DESCRIPTION No. of

Individual SEAs

No. of Group SEAs

Total employees covered by Group SEAs

TOTAL

A B C (A+C)

SEAs Number of SEAs at 30 June 2014 15 0 0 15Number of SEAs entered into during period

5 0 0 5

Number of SEAs terminated during period

10 1 2 12

Number of SEAs providing for privately plated vehicles as at 30 June 2014

0 0 0 0

Number of SEAs for employees who have transferred from AWAs during period

0 0 0 0

AWAs Number of AWAs at 30 June 2014 2 0 0 2Number of AWAs terminated/lapsed during period (including formal termination and those that have lapsed due to staff departures)

0 0 0 0

Classification Range Remuneration as at 30 June 2014

Individual and Group SEAs ASO6 ‐ SOGA $91,858 ‐ $168,608

AWAs (includes AWAs ceased during reporting period)

SOGB ‐ SOGA $153,468 ‐ $163,026

E.5 Staffing Profile The staff numbers provided below are as at the last payday in 2013‐14. The figures exclude board members and people on leave without pay. Staff members who had separated from the Directorate, but received a payment in June 2014 have been included, as have staff who are working in other directorates, and whose costs are recovered.

FTE and headcount by gender

Female Male Total Full Time Equivalent 160.2 108.7 268.9Headcount 168 111 279Percentage of workforce (based on headcount) 60.2 39.8 100


Headcount by classification and gender

Classification groups Female Male Total Administrative Officers 83 33 116Executive Officers 13 16 29Senior Officers 72 62 134TOTAL 168 111 279

Headcount by employment category and gender

Employment category Female Male Total Casual 1 0 1Permanent Full‐time 116 79 195Permanent Part‐time 23 1 24Temporary Full‐time 26 29 55Temporary Part‐time 2 2 4TOTAL 168 111 279

FTE and headcount by division/branch

Division/branch FTE Headcount Corporate Management 15.7 16 Culture and Communications 14.0 18 Default Insurance Fund 2.0 2 Economics and Financial Group 39.1 40 Expenditure Review 12.0 12 Finance and Budget 38.0 38 Graduate Program 3.0 3 Infrastructure Finance and Advisory 2.0 2 Office of the Director‐General 3.0 3 Office of the Under Treasurer 4.0 4 Policy and Cabinet 41.3 43 Strategic Finance 7.9 8 Workforce Capability and Governance

86.9 90

Total 268.9 279


Headcount by division/branch and employment type

Division/branch Permanent Temporary Casual Corporate Management 14 2 0Culture and Communications 14 4 0Default Insurance Fund 2 0 0Economics and Financial Group 33 7 0Expenditure Review 8 4 0Finance and Budget 29 9 0Graduate Program 3 0 0Infrastructure Finance and Advisory 0 2 0Office of the Director‐General 2 1 0Office of the Under Treasurer 3 1 0Policy and Cabinet 32 11 0Strategic Finance 6 2 0Workforce Capability and Governance

73 16 1

Total 219 59 1

Headcount by age group and gender

Age Group Female Male Total Under 25 9 3 1225‐34 51 32 8335‐44 49 23 7245‐54 36 28 6455 and over 23 25 48

Headcount by length of service, generation and gender

Length of service (years)

Pre‐Baby Boomers

Baby Boomers Generation X Generation Y Total

F M F M F M F M F M

0‐2 0 0 12 8 10 10 18 13 40 31

2‐4 0 0 5 3 4 6 15 7 24 16

4‐6 0 0 2 4 6 6 11 7 19 17

6‐8 0 0 3 5 14 4 11 3 28 12

8‐10 0 0 4 2 4 2 1 1 9 5

10‐12 0 0 5 1 6 2 2 0 13 3

12‐14 0 0 7 4 6 5 1 2 14 11

14 plus 0 0 10 11 11 5 0 0 21 16

Generation Birth years covered Generation Birth years covered Pre‐Baby Boomers prior to 1946 Generation X 1965 to 1979 inclusiveBaby Boomers 1946 to 1964 inclusive Generation Y from 1980 and onwards


Average length of service by gender (headcount)

Female Male Total Average years of service 7.2 8.2 7.6

Headcount by diversity group

Headcount Percentage of agency workforce

Aboriginal and Torres Strait Islander 2 0.7Culturally and linguistically diverse 40 14.3People with disability 14 5.0

Note: Employees may identify with more than one of the diversity groups.

Financial Management Reporting 86

F. Financial Management Reporting


F.1 Financial Management The Management Discussion and Analysis for CMTD, Superannuation Provision Account and Territory Banking Account is reported in Volume 2 of the 2013‐14 Chief Minister and Treasury Directorate Annual Report.

F.2 Financial Statements The Financial Statements for CMTD, Superannuation Provision Account and Territory Banking Account are included in Volume 2 of the 2013‐14 Chief Minister and Treasury Directorate Annual Report.

F.3 Capital Works ICT Capital Works Projects

Estimated Completion Date

Actual Completion date

Original Project Value

Revised Project Value

Prior Year’s Expenditure

Current Year Expenditure

Total Expenditure to Date

ICT Works in progress – CMTD Mobile Canberra Applications

Dec 2013 Jun 2014 70 70 30 32 62

Injury Prevention and Management Information Systems

Feb 2014 Jun 2014 450 450 121 329 450

Accident and Information Management System

Dec 2013 Jun 2014 3,000 3,000 1,588 1,412 3,000

Total ICT Capital Works Program

3,520 3,520 1,739 1,773 3,512

Note: All amounts are in $’000.


Reconciliation of Funding and Expenditure Reconciliation of Total Current Year Financing Expenditure Original Capital Works Financing 1,601Revised Capital Works Financing 1,781Add: Reversal of Accrued Salaries 10Add: Reversal of Capital Works Funded through GPO 18Add: Savings against the Mobile Canberra Applications Project ‐8Capital Injections in 2013‐14 Financial Report 1,802

Reconciliation of Total Current Year Expenditure to Capital Injections Total Current Year Works Expenditure 1,773Add: Reversal of Accrued Salaries 10Add: Reversal of Capital Works Funded through GPO 18Capital Injections in 2013‐14 Financial Reports 1,802

F.4 Asset Management

Assets Managed The Chief Minister and Treasury Directorate managed physical assets with a total value of $10.1 million as at 30 June 2014. Assets managed are shown in the table below.

Asset Appropriate Measure Leasehold Improvements $0.954 millionPlant and Equipment Assets under Finance Leases $0.197 millionIntangible Assets $8.933 million

Total Physical Assets $10.084 million

During 2013‐14, intangible assets added to the Directorate’s asset register included:

Oracle Whole of Government Financials – R12 Upgrade; and Whole of Government Banking System.

During 2013‐14 the following intangible works in progress assets were completed and transferred to Intangible Assets:

Injury Prevention and Management Information System (RiskMan); Accident and Information Management System (Workers’ Compensation Management

System and Data Warehouse); and Mobile Canberra apps.

Asset Maintenance and Upgrade No material repairs and maintenance or upgrades were undertaken by the Directorate during 2013‐14.


Office Accommodation Chief Minister and Treasury Directorate had 267 staff and nine contractors occupying 4,968 m2 at the following sites:

Canberra Nara Centre, 4,359 m2, 229 staff and nine contractors; and Level 1, 221 London Circuit, 609m2, 42 staff.

The average area occupied by each person is 18 m2.

These figures do not include two Directorate Liaison Officers based in the Legislative Assembly building, or staff on long‐term leave as at 30 June 2014.

F.5 Government Contracting

Procurement Overview The Directorate engaged external contractors and consultants during the year to perform a range of activities in response to the need for evaluations and audits, requirements for specialist skills, business and process improvement, financial management and advice, human resources and training, events management, support services and facilities management.

Government Procurement Policies The Directorate works with Shared Services Procurement to ensure procurement processes comply with the Government Procurement Act 2001 and the Government Procurement Regulation 2007.

In the procurement and management of contractors and consultants, CMTD sought to ensure compliance with all requirements of the contractor/consultant employee and industrial relations obligations. There were no reports or findings of non‐compliance with employee or industrial relations obligations during the reporting period.

Corporate Management continued to reinforce required procurement processes through presentations at branch and divisional meetings and notices on the Directorate’s intranet. A range of information on procurement processes was available on the Directorate’s intranet.

Given the unique nature of the Centenary of Canberra program, in November 2009, the Government Procurement Board endorsed the Strategic Procurement Plan for the Centenary of Canberra. This included a general agreement for the use of single select procurement to engage artists, organisations and contractors, with an exemption sought from the Director‐General on a case by case basis.

Procurements Exempted from Quotation and Tender Threshold Requirements The Government Procurement Regulation 2007 sets out a range of thresholds relating to quotes and tender processes. Below are the thresholds and minimum procurement process to be followed:


Under $25,000 request at least one oral quotation; $25,000 ‐ $200,000 request at least three written quotations; and Over $200,000 invite public tenders.

The Director‐General may approve an exemption from these requirements.

The tables below shows each contract (or group of contracts) procured using a select tender with a value over $200,000, or a single select tender with a value over $25,000 during 2013‐14.

Output 1.1 Government Policy and Strategy Supplier Description of

contract Financial year expenditure (GST Exclusive)

Date contract let

Procurement type (select or single select) and reason for use of this process

Digital Business Insights (DBi)

Plan and deliver capability building workshops for business and organisations, including interviewing and videoing top rated vendors and delivering case studies

$66,000 March 2014 Single Select – DBi are market leaders in delivering digital business workshops. They were the preferred supplier for a number of other jurisdictions.

Output 1.2 Public Sector Management Supplier Description of


Date contract let


University of Canberra (ANZSOG)

Provision of ACTPS Graduate Program – Learning and Development Program

$136,364 June 2014 Single select – specialist knowledge and relevant specialist experience.

Victorian Public Sector Commission (VPSC)

ACT Public Sector People Matter Survey – data collection and reporting

0.00* March 2014 Single select – as the creator of the People Matter Survey, the VPSC were the only provider available.

Australian Survey Research Pty Ltd (ASR)

ACT Public Sector People Matter Survey – web design and distribution

0.00* March 2014 Single select – in order to ensure continuity of data for benchmarking purposes against the VPSC, the service from this provider was integral.

* Contract was signed in 2013‐14, but no payments were made in the 2013‐14 financial year.


Output 1.4 Coordinated Communications and Community Engagement Supplier Description of


Date contract let

Procurement type (select or single select )and reason for use of this process

Office of the Official Secretary to the Governor General

Governor General’s Centenary Family Picnic Day

$25,000 September 2013

Single Select ‐ Specialist artist or supplier, within the parameters of the Centenary Strategic Procurement Plan.

Big Hart Inc Winter Bed Vigil project

$33,981 July 2013 Single Select ‐ Specialist artist or supplier, within the parameters of the Centenary Strategic Procurement Plan.

National Library of Australia

National Library Centenary Programs

$49,200 November 2013

Single Select ‐ specialist artist or supplier, within the parameters of the Centenary Strategic Procurement Plan.

Output 2.1 Economic Management Supplier Description of


Date contract let


Vanguard Investments Australia

External Funds Manager

$160,597 March 2014 Select. A shortlist of qualified managers is provided by the Territory’s asset consultant, in accordance with an endorsed strategic procurement plan.

Output 2.2 Financial Management Supplier Description of


Date contract let


KPMG Scoping study for the replacement of the Budget Development Application

$80,082 October 2013 Select through invitation to the ICT contract panel to ensure appropriate skills were sourced to provide this report.

URS Australia Land use options for former ACT Forests Lands

$18,208 February 2014 Single select – specialist knowledge and relevant specialist experience.

Parking and Traffic Consultants

Technical parking machine advice

$38,919 July 2013 Single select – specialist knowledge and relevant specialist experience.

Gilbert and Tobin

For the provision of ongoing legal support the Industry Panel Review.

0.00* June 2014 Single select – specialist knowledge and relevant specialist experience.


Supplier Description of contract

Financial year expenditure (GST Exclusive)

Date contract let


Wedgewood White Limited

Provision of technical consultancy support (Economic Modeller) to the Industry Panel


K Lowe Consulting

Provision of technical consultancy support to the Industry Panel


* Contract was signed in 2013‐14, but no payments were made in the 2013‐14 financial year.

F.6 Statement of Performance The Statement of Performance for CMTD, Superannuation Provision Account and the Territory Banking Account are included in Volume 2 of the 2013‐14 Chief Minister and Treasury Directorate Annual Report.

Annexed Reports 94

Annexed Reports

Annexed Reports 95

ACT Executive

Overview The ACT Executive consists of the Chief Minister and other Ministers and their staff. The ACT Executive has powers under the Australian Capital Territory (Self Government) Act 1988 to govern the Territory and execute and maintain enactments and laws.

During the reporting period the responsibility for the administration of the budget appropriation for the ACT Executive rested with the Chief Minister and Treasury Directorate. Governance oversight, including Audit and Risk Committee, forms part of the governance structure within the Directorate. The ACT Executive financial results, including asset management, and the Management Discussion and Analysis are reported in Volume 2 of the 2013‐14 Chief Minister and Treasury Directorate Annual Report.

Gallagher Ministry Katy Gallagher Chief Minister Minister for Health Minister for Regional Development Minister for Higher Education

Andrew Barr Deputy Chief Minister Treasurer Minister for Economic Development Minister for Community Services Minister for Sport and Recreation Minister for Tourism

Simon Corbell Attorney‐General Minister for the Environment and Sustainable Development Minister for Police and Emergency Services Minister for Workplace Safety and Industrial Relations

Joy Burch Minister for Education and Training Minister for Disability, Children and Young People Minister for the Arts Minister for Women Minister for Gaming and Racing Minister for Multicultural Affairs

Shane Rattenbury Minister for Territory and Municipal Services Minister for Corrections Minister for Housing Minister for Aboriginal and Torres Strait Islander Affairs Minister for Ageing

Annexed Reports 95

ACT Executive

Overview The ACT Executive consists of the Chief Minister and other Ministers and their staff. The ACT Executive has powers under the Australian Capital Territory (Self Government) Act 1988 to govern the Territory and execute and maintain enactments and laws.

During the reporting period the responsibility for the administration of the budget appropriation for the ACT Executive rested with the Chief Minister and Treasury Directorate. Governance oversight, including Audit and Risk Committee, forms part of the governance structure within the Directorate. The ACT Executive financial results, including asset management, and the Management Discussion and Analysis are reported in Volume 2 of the 2013‐14 Chief Minister and Treasury Directorate Annual Report.

Gallagher Ministry Katy Gallagher Chief Minister Minister for Health Minister for Regional Development Minister for Higher Education

Andrew Barr Deputy Chief Minister Treasurer Minister for Economic Development Minister for Community Services Minister for Sport and Recreation Minister for Tourism

Simon Corbell Attorney‐General Minister for the Environment and Sustainable Development Minister for Police and Emergency Services Minister for Workplace Safety and Industrial Relations

Joy Burch Minister for Education and Training Minister for Disability, Children and Young People Minister for the Arts Minister for Women Minister for Gaming and Racing Minister for Multicultural Affairs

Shane Rattenbury Minister for Territory and Municipal Services Minister for Corrections Minister for Housing Minister for Aboriginal and Torres Strait Islander Affairs Minister for Ageing

Annexed Reports 96

Staff Staff are employed under the Legislative Assembly (Members Staff) 1989 Act (LAMS Act).

Number of staff employed at 30 June 2014

Classification Number of Staff Chief of Staff 1.0 Senior Adviser L2 8.0 Senior Adviser L1 14.7 Adviser L2 4.0 Adviser L1 (upper) 7.0 Adviser L1 (lower) 0 TOTAL 34.7

Gender breakdown at 30 June 2014

LAMS – ACT Executive Female Male Total FTE by gender 20.2 14.5 34.70 Percentage of workforce 58% 42%

Financial management and associated reporting was provided to the ACT Executive through the Chief Minister and Treasury Directorate. The provision of payroll services was through Shared Services.

Accommodation and building security was controlled by the Office of the Legislative Assembly, who also provided oversight of workplace health and safety and associated risk management, facilities management and workplace environmental management. Reporting on these issues is contained in the 2013‐14 ACT Office of the Legislative Assembly Annual Report.

Corporate administrative and financial support, including protocol matters, awards, functions and events were provided by the Executive Support and Protocol Unit in the Chief Minister and Treasury Directorate. Administrative operations are subject to the same governance controls in relation to risk management, fraud prevention and records management as the Chief Minister and Treasury Directorate, and reporting is included in the relevant section of the Directorate’s Annual Report. This model also applies in relation to the provision of payroll services through Shared Services.

Responses to three requests received by the ACT Executive under the Freedom of Information Act 1989 are available on the Open Government website at www.cmd.act.gov.au/open_government. The majority of documents were released for each request.

The Executive’s legal services are provided by the ACT Government Solicitor’s Office, which review any issues to ensure compliance with the Model Litigant Guidelines.

Reporting areas not applicable to the Executive are listed at page 110 of this report.

Further information may be obtained from:

Karen Stewart‐Moore Senior Manager Executive Support and Protocol

Annexed Reports 97

+61 2 6205 2855 karen.stewart‐[email protected]

Annexed Reports 98

ACT Compulsory Third Party Insurance Regulator

Performance Reporting Organisational Overview The Australian Capital Territory Compulsory Third‐Party Insurance regulator (CTP regulator) is an independent Territory authority established under section 14 of the Road Transport (Third‐Party Insurance) Act 2008 (CTP Act) to regulate compulsory third‐party (CTP) insurance in the Territory.

Under section 14 of the CTP Act, the Director‐General of the administering directorate is the CTP regulator. During 2013‐14 the CTP Act was administered by the Chief Minister and Treasury Directorate, making the Director‐General of CMTD the CTP regulator.

The functions of the regulator were supported by the Financial Framework Management and Insurance Branch of the Economic and Financial Group, within CMTD. The Directorate also provided oversight of workplace health and safety and associated risk management, facilities management and workplace environment management. Reporting on these issues is contained in the Directorate’s Annual Report.

The regulator’s stakeholders include the members of the ACT community, particularly persons injured in road crashes, motorists who are required by law to purchase CTP insurance, and the licensed insurers.

Principal Objectives

The role of the CTP regulator is to regulate the CTP insurance scheme in the ACT under the CTP Act. The objectives of the Act under section 5A are to:

continue improving the system of CTP insurance in the ACT; promote competition for CTP premiums; keep the costs of insurance at an affordable level; provide for the licensing and supervision of insurers; encourage the speedy resolution of personal injury claims; promote and encourage the rehabilitation of people injured in motor accidents; maintain an accurate register of motor accident claims to help the administration of the

statutory insurance scheme and the detection of fraud; and promote measures directed at eliminating or reducing causes of motor accidents and

mitigating their results.

Functions

The functions of the CTP regulator are specified in section 14A of the CTP Act and include:

regulating the licensing of CTP insurers; monitoring the behaviour of licensed CTP insurers in relation to their obligations under

the Act; improving health outcomes for claimants; monitoring the efficiency of the CTP scheme under the Act and identifying areas for

amendment; and

Annexed Reports 98

ACT Compulsory Third Party Insurance Regulator

Performance Reporting Organisational Overview The Australian Capital Territory Compulsory Third‐Party Insurance regulator (CTP regulator) is an independent Territory authority established under section 14 of the Road Transport (Third‐Party Insurance) Act 2008 (CTP Act) to regulate compulsory third‐party (CTP) insurance in the Territory.

Under section 14 of the CTP Act, the Director‐General of the administering directorate is the CTP regulator. During 2013‐14 the CTP Act was administered by the Chief Minister and Treasury Directorate, making the Director‐General of CMTD the CTP regulator.

The functions of the regulator were supported by the Financial Framework Management and Insurance Branch of the Economic and Financial Group, within CMTD. The Directorate also provided oversight of workplace health and safety and associated risk management, facilities management and workplace environment management. Reporting on these issues is contained in the Directorate’s Annual Report.

The regulator’s stakeholders include the members of the ACT community, particularly persons injured in road crashes, motorists who are required by law to purchase CTP insurance, and the licensed insurers.

Principal Objectives

The role of the CTP regulator is to regulate the CTP insurance scheme in the ACT under the CTP Act. The objectives of the Act under section 5A are to:

continue improving the system of CTP insurance in the ACT; promote competition for CTP premiums; keep the costs of insurance at an affordable level; provide for the licensing and supervision of insurers; encourage the speedy resolution of personal injury claims; promote and encourage the rehabilitation of people injured in motor accidents; maintain an accurate register of motor accident claims to help the administration of the

statutory insurance scheme and the detection of fraud; and promote measures directed at eliminating or reducing causes of motor accidents and

mitigating their results.

Functions

The functions of the CTP regulator are specified in section 14A of the CTP Act and include:

regulating the licensing of CTP insurers; monitoring the behaviour of licensed CTP insurers in relation to their obligations under

the Act; improving health outcomes for claimants; monitoring the efficiency of the CTP scheme under the Act and identifying areas for

amendment; and

Annexed Reports 99

ensuring that all premiums meet the fully funded test and are not excessive.

Highlights

As a result of negotiations which occurred in 2012‐13, the CTP regulator successfully encouraged competition within the CTP insurance market in the ACT. This saw three new entrants – AAMI, APIA and GIO – begin operating in the ACT from 15 July 2013 alongside NRMA Insurance. Over the course of the 2013‐14 financial year competition was bedded‐down, resulting in a number of benefits flowing to motorists. Motorists gained from:

a choice in insurance products being offered; higher quality products, with, for example, a number of insurers offering at‐fault driver

cover; and more affordable premiums as after‐market discounts were offered by some insurers in

the form of rebates.

The CTP regulator also:

developed and implemented the Industry Deed which regulates the conduct of CTP insurance business under the CTP Act, such as the management of motor accident claims under CTP policies;

instigated regular meetings between the ACT CTP insurers, the Industry Council of Australia and the CTP regulator which will be used for information sharing and intelligence, with the aim of refining the CTP Insurance scheme; and

maintained the CTP website and responded to feedback from the public received by way of telephone calls through Canberra Connect, via the CTP website at apps.treasury.act.gov.au/compulsorytpi/feedback, and via general written correspondence.

Outlook

The CTP regulator will:

establish a framework to support increased competition that provides benefits to the motorists of the ACT;

promote public awareness of the causes of motor accidents through funding measures directed at reducing motor vehicle accidents;

enhance the policy and procedures of CTP insurance for vehicles in the ACT in conjunction with insurers; and

monitor the effectiveness of the CTP scheme against the objectives of the CTP Act using actuarial review and analysis, premium filings, regular discussion with the CTP insurers and feedback from the community.

Licensed Insurers

Under section 184 of the CTP Act, the regulator may license an insurer to provide CTP insurance in the ACT. On 19 June 2013, the CTP regulator received applications from AAMI, APIA, and GIO to become licensed insurers in the ACT market. The licences became effective on 1 July 2013.

Annexed Reports 100

Premium Determinations

Section 38 of the CTP Act provides that insurers are only permitted to charge a premium approved by the regulator. The regulator usually receives a premium filing from licensed insurers at least annually. The regulator makes an assessment of each premium filing, based on expert independent actuarial advice, and may approve a premium if it will fully fund the insurer’s liabilities and is not considered to be excessive. If a premium filing is not received within a year, the regulator has to review and assess the existing premium in line with the CTP regulator’s responsibilities.

A premium filing assessment considers claims frequency, claim size, investment returns, administrative expenses, legal expenses and insurer profit – generally elements that serve to make up the overall cost of service for an insurer participating in the ACT CTP market.

The role of the CTP scheme actuary is to provide expert actuarial advice to the CTP regulator. This role is performed by Cumpston Sarjeant Consulting Actuaries, under contract.

Profit Margins

Section 46 of the CTP Act requires that the CTP regulator must assess the profit margin included in the CTP premium and the actuarial basis on which the profit is worked out. The assessments must be reported on annually.

With regard to the relevant filing documents of the insurers (1 September 2012 for NRMA and 1 July 2013 for new entrants to the scheme ‐ AAMI, GIO and APIA), the regulator received actuarial advice from the scheme’s actuary. All the insurers’ profit margins were assessed as being in a reasonable range. The range for the industry, as assessed by the scheme actuary for 2013‐14 was 8%‐12%.

Loadings on Short Term Premiums

The following loadings apply to premiums on CTP policies with a duration of less than 12 months (‘Short Term Premiums’):

insurer’s administration loading: $2.50; and insurer’s lost investment income loading.

The CTP Premium Guidelines require the CTP regulator to publish the insurer’s lost investment income loading each year in the annual report. These loadings will be applied to short term premiums by the rego.act system in accordance with the formula in section 2.9.2 of the premium guidelines. The amount is determined by the scheme actuary and will apply for the relevant financial year. The loading for the 2013‐14 financial year was 0.225%.

CTP Average Annual Risk Premium

Section 46A of the CTP Act requires that the regulator publish the average annual risk premium for CTP in the ACT. The risk premium represents the base risk amount that each insurer bears when providing CTP insurance in the ACT. Presently there are four licensed CTP insurers in the ACT. As such, the risk premium has been derived using a weighted average of data from all of the insurers and the Nominal Defendant in order to determine the average risk premium price per policy.

The average risk premium price per policy for 2013‐14 was $441.24.

Annexed Reports 101

Nominal Defendant

The Nominal Defendant is liable for claims against uninsured or unidentified motor vehicles for which a CTP insurer cannot be identified. Under section 13 of the CTP Act, the Australian Capital Territory Insurance Authority (ACTIA) is the Nominal Defendant. The Annual Report of the Nominal Defendant is annexed to ACTIA’s Annual Report.

Performance Analysis The ACT CTP regulator’s 2013‐14 performance indicators are included in the Statement of Intent, and are reported as part of the regulator’s Statement of Performance.

The 2013‐14 financial year saw the CTP regulator develop and accomplish the following indicators in a more competitive market place with additional insurers.

Explanation of Measures and Performance

a. CTP Premiums are approved in accordance with the Road Transport (Third‐Party Insurance) Act 2008.

The CTP regulator is required to approve or reject a premium application under section 41 of the CTP Act. Under section 42, there are two grounds that permit the CTP regulator to reject a premium filing. These grounds are to ensure that the premiums applied for by CTP insurers are not too low (the fully funded test) and not too high (the excessive premium test).

The premium filings received from AAMI, APIA and GIO in July 2013 were all assessed and approved in accordance with the Act. NRMA was granted a premium filing extension until November 2014. A review of NRMA’s claims file for the year ending 30 June 2014 indicated that the CTP scheme continued to be fully funded.

b. Insurers obligations under the Act are complied with.

A licensed CTP insurer has obligations generally under the CTP Act, and specific licence conditions under section 185 of the CTP Act that must be complied with. As part of the CTP regulator’s functions under the CTP Act (section 14A), the regulator monitors the compliance of CTP insurers with their obligations.

Any specific issues of non compliance are brought directly to the attention of the CTP regulator. The CTP regulator will only produce a report to the Treasurer where there are identified areas of non compliance. There were no issues of non compliance identified in 2013‐14 and as such no report was produced.

c. Industry Deed

This Deed is an agreed operational arrangement between all licensed CTP insurers in the ACT, ACTIA(as the Nominal Defendant) and the ACT CTP regulator. It was developed and agreed by insurers and was consequently signed by all insurers by September 2013.

The CTP regulator attends regular meetings with ACT insurers and the Insurance Council of Australia, at which insurers have the opportunity to raise concerns with the operational arrangements of CTP insurance in the ACT. There were no issues with the Deed identified in 2013‐14.

Annexed Reports 102

d. The scheme is fully funded

All premium filings by licensed CTP insurers are reviewed by the scheme actuary to ensure they are fully funded. Review of the premium filings ensures that the scheme is able to pay out all future liabilities. Where an insurer does not make a premium submission during the financial year, the CTP regulator will request an independent actuarial review of the insurers’ books to ensure that the ACT scheme will continue to be fully funded. The scheme actuary considered that all insurers’ premiums met the fully funded test in 2013‐14.

e. Assess satisfaction of claimants with insurers, medical professionals and lawyers

Not Measured ‐ It was the intention of the CTP regulator to undertake an assessment of the satisfaction of claimants. Due to privacy legislation and the wording contained in the privacy statement of CTP claim forms, the regulator was unable to conduct these assessments without potentially putting itself at risk of breaching privacy laws.

f. Make guidelines under the Act

CTP Premium Guidelines commenced on 12 July 2013. Revision to these guidelines, and the Early Payment Guidelines have not been required. No other guidelines have been implemented under the Act in 2013‐14.

g. Complaints handling within 10 working days of receipt of the complaint

Of the 30 written complaints received, 27 enquiries were responded to within the ten working day timeframe. This is equivalent to a compliance rate of 90%, a 5% improvement from the 85% target.

Community Engagement and Support The functions of the CTP regulator include identifying feedback from the community as a major part of monitoring the effectiveness of the CTP scheme against the objectives of the CTP Act. To achieve this, the CTP regulator updated and maintained the CTP website and responded to feedback from the public received via Canberra Connect, the Minister’s office and the CTP website: apps.treasury.act.gov.au/compulsorytpi/feedback.

Internal Accountability Under the Government’s Administrative Arrangement Orders, the CTP regulator resides within the Chief Minister and Treasury Directorate. The CTP regulator is the Director‐General of the Chief Minister and Treasury Directorate as outlined in Section 14 of the CTP Act. The functions of the CTP regulator are supported by the Financial Framework Management and Insurance Branch of the Economic and Financial Group, Chief Minister and Treasury Directorate.

Risk Management and Internal Audit Internal Audit The CMTD Audit and Risk Committee considered matters relating to the CTP regulator.

An internal audit was completed during the year on the processes and datasets relevant to the payment and reporting of ACT Compulsory Third Party (CTP) Insurance premiums. The

Annexed Reports 103

integrity of the processes and datasets are critical to the calculation of the Nominal Defendant Levy undertaken by the CTP regulator on a quarterly basis.

Risk Management Plan The CTP regulator developed and implemented a risk management plan in accordance with the Australian/New Zealand risk management AS/NZS ISO 31000:2009 and the ACT Government’s Enterprise Wide Risk Management Framework. The CTP regulator has overall responsibility for risk management, and for ensuring compliance with the risk management plan.

The risk management plan identifies the key risk areas as operational, financial, legal and reputational risk. The risk management plan has identified the following potential risks:

CTP regulator not meeting stakeholder expectations; insufficient resources available to achieve statutory requirements caused by new

insurers entering the ACT scheme; and failure to meet legislative requirements.

These risks are mitigated through the use of appropriate governance structures, application of risk based management strategies and financial reporting processes.

Legislative Assembly Inquiries and Reports During the reporting period the CTP regulator did not participate in any Legislative Assembly Committee inquiries related to its activities.

Auditor General and Ombudsman Reports The ACT Auditor‐General’s Office issued an unqualified Audit Report relating to the ACT Compulsory Third‐Party Insurance regulator financial statements for the year ended 30 June 2013 and an unqualified Report of Factual Findings relating to the ACT Compulsory Third Party Insurance regulator statement of performance for the year ended 30 June 2013.

There were no performance audits conducted by the Auditor‐General with respect to the CTP regulator and no Ombudsman Reports.

Human Resources Management Reporting The CTP regulator does not employ personnel. The functions of the CTP regulator are supported by the Financial Framework Management and Insurance Branch of the Economic and Financial Group, Chief Minister and Treasury Directorate.

Government Contracting The CTP regulator is party to the following agreements:

External Sources of Labour and Service (Total contract value exceeds $200,000)

Annexed Reports 104

Name Description and Reason for Contract

Cost $ (GST Exclusive)

Procurement Type Contract Date

Cumpston Sarjeant Consulting Actuaries

Provide actuarial review and advice

$31,000 Public Tender Jan 2014

The CTP regulator has:

complied with the quotation and tender thresholds laid out in the Government Procurement Regulation 2007, and has ensured all contractors; and

ensured all contractors have complied with their employee and industrial relations obligations.

Annexed Reports 105

Default Insurance Fund

The Organisation The Workers Compensation Act 1951 (the Act) was established to provide compensation to workers employed in the private sector for injuries arising out of or in the course of their employment.

The Default Insurance Fund (DI Fund) was established under the Act effective from 1 July 2006. It provides a safety net to meet the cost of workers’ compensation claims made by workers in circumstances where:

an employer does not have a workers’ compensation insurance policy and cannot meet the claim costs payable under the Act; or

an employer’s insurance company is wound up under the Corporations Act 2001 (Cwth) or cannot provide the indemnity required to be provided under a compulsory workers’ compensation policy.

Funds are held in trust under the Financial Management Act 1996 in two separate accounts:

the Uninsured Employer Fund (UEF); and the Collapsed Insurer Fund (CIF).

All claims and administration costs are met from the DI Fund.

The DI Fund meets the cost of any awards and claims for workers’ compensation, including the payment of weekly compensation, medical expenses and rehabilitation costs, as well as compensation settlements and any common law judgments or settlements.

A public servant appointed by the Director‐General, Chief Minister, Treasury and Economic Development Directorate, manages the DI Fund. Mr John Fletcher, General Manager, ACT Insurance Authority, is the current DI Fund Manager. The administrative functions of the DI Fund are undertaken by two staff.

Administrative operations are subject to the same governance controls in relation to risk management, fraud prevention and records management as the ACT Insurance Authority, and reporting on these operations is included in the relevant sections of the Authority’s Annual Report.

The Authority also oversights workplace health and safety and associated risk management, accommodation, facilities management and workplace environmental management. Reporting on these issues is contained in the Authority’s Annual Report.

The Default Insurance Fund Advisory Committee is established under Schedule 3 of the Act. Their role is to monitor the operations of the DI Fund and, if requested by the Minister or the DI Fund Manager, advise on matters relating to the operation of the Act.

The Committee comprises the Executive Director, Continuous Improvement and Workers’ Compensation (Chair), the DI Fund Manager and three members appointed by the Minister.

Annexed Reports 106

The membership of the DI Fund Advisory Committee is:

Michael Young – Executive Director, Continuous Improvement & Workers’ Compensation (Chair);

Graciete Ferreira – Master Builders Association ACT (Employer Representative); Susie Walford – GIO Insurance (Insurer Representative); Dean Hall ‐ CFMEU (Employee Representative); and John Fletcher – DI Fund Manager.

The Committee met on four occasions during 2013‐14. At each meeting, a report on the status of the DI Fund was provided, and a schedule detailing the status of all open claims was considered.

Uninsured Employer Fund (UEF) This component of the DI Fund currently administers claims against it, which have arisen when a worker has been injured and the employer failed to hold an ACT Workers’ Compensation Policy. Where the employer does not or cannot meet the cost of claims, the UEF responds on behalf of the employer as the default insurer.

Claims When a claim is received the UEF undertakes an insurer search in an attempt to locate an insurer for the injured worker. In some cases an insurer is identified and the claim is then forwarded to the appropriate insurer.

When satisfied that an insurance policy is not in place, the DI Fund acts as the default insurer for the injured worker. The DI Fund arranges and facilitates appropriate rehabilitation and medical treatment for injured workers with the aim of returning an injured worker back to their pre‐injury state where possible. Claims are managed within the auspices of the Act, and the DI Fund meets the cost of all legislated entitlements for injured workers including medical expenses, rehabilitation costs, weekly compensation and lump sum settlements.

Uninsured Employer Fund ‐ Claims

Total Claims opened during the reporting period 15

Total Claims closed during the reporting period 18

Current Open Claims 29

Revenue The Workers Compensation Act 1951, Section 168A requires the Fund Manager to undertake a review of the Uninsured Employer Fund each year to determine the appropriate levy on workers compensation insurers.

A funding model introduced in 2010‐11 to address under funding of the UEF, aims to build on reserves to cover the cost of the unfunded component of the current claims provision.

In considering an appropriate levy for 2013‐14, the Fund Manager took into consideration a range of issues including a sensitivity analysis of the volatility of the DI Fund, the potential for an increase in claims costs, and claim numbers in the current and future insurance years.

Annexed Reports 107

The Fund Manager imposed contributions from insurers and self insurers equal to 1.4% of the gross written premiums in 2013‐14, a reduction on the 2.0% applied in 2012‐13.

The reduction offset the cost of the workers compensation regulatory levy introduced on 1 July 2013. The target date for achieving a fully funded UEF was also adjusted from 2015 to 2020.

In 2013‐14, a total of $2.860 million has been collected as levy revenue from insurers and self‐insurers. The total levy revenue of $2.860 million and a further $984,000 from reserves has been applied to match the cost of current year expenses with an increase in the UEF’s unfunded component identified as non‐current receivables.

Expenses The total expenses for 2013‐14 were $4.503 million.

Balance Sheet The total outstanding claims provision for the UEF as at 30 June is $12.659 million.

The fund holds $8.023 million in cash and cash equivalents and total receivables of $4.701 million as at 30 June 2014.

Collapsed Insurer Fund (CIF) This component of the Fund currently administers claims against it associated with liquidations of two insurers that were previously approved Workers’ Compensation Insurers in the Territory:

National Employers’ Mutual Association Ltd (NEM) — 1990; and HIH Insurance (HIH) — 2001.

Claims When satisfied that an insurer is unable to pay, the DI Fund acts as the default insurer for the injured worker. The DI Fund arranges and facilitates appropriate rehabilitation and medical treatment for injured workers with the aim of returning an injured worker back to their pre‐injury state where possible. Claims are managed within the auspices of the Act, and the DI Fund meets the cost of all legislated entitlements for injured workers including medical expenses, rehabilitation costs, weekly compensation and lump sum settlements.

The liquidators for NEM have completed final statutory and administrative matters and the liquidation is now complete.

As at 30 June 2014 there was one open claim against NEM and no open claims against HIH.

The Fund Manager is the fund representative on the committee of inspection for the HIH liquidation which is forecast for completion in the second half of 2015.

Annexed Reports 108

Collapsed Insurer Fund ‐ Claims

Total Claims opened during the reporting period 0

Total Claims re‐opened during the reporting period 0

Total Claims closed during the reporting period 3

Current Open Claims 1

Revenue The DI Fund is not levying insurers and self‐insurers for the CIF at present.

The DI Fund received a further payment from the HIH Liquidator of $2.003 million.

The DI Fund can appropriately and responsibly manage the impact of any future insurance collapses within the workers’ compensation industry through the retention of its current reserve and the imposition of a tailored levy on employers in the event of a collapse.

Expenses The total expenses for 2013‐14 were a credit of $0.232 million. This was due to changes in actuarial assumptions used to value the outstanding claims provision and subsequent claims expense.

Balance Sheet As at 30 June 2014, the CIF had cash and cash equivalents totalling $13.572 million with an estimated outstanding claims provision of $1.221 million.

The fund total equity as at 30 June 2014 is $12.373 million.

The full DI Fund financial statements are reported in Volume 2 of the 2013‐14 Chief Minister and Treasury Directorate Annual Report.

External Services Providers The following external service providers support the operation of the DI Fund:

The DI Fund Actuary is KPMG. The DI Fund legal panel comprises Minter Ellison, DLA Piper, and Sparke Helmore who

provide advice and representation services.

Legal work is allocated on a rotational basis taking into consideration the relevant expertise of the specified personnel and allowances for any conflicts of interest that may arise.

The following table identifies all external service providers contracted to the DI Fund during the reporting period.

The increase in legal costs in 2013‐14 is due to additional legal representation required when three claims proceeded to hearing in the Supreme Court.

Annexed Reports 109

Name Description and reason for contract

2013‐14 Cost $ (GST exclusive)

2012‐13 Cost $ (GST exclusive)

Date contract commenced

Type of Contract

Sparke Helmore

Legal advice Disbursements Total

$42,994$14,962$57,956

$10,192$ 3,613$13,805

11 Nov 2010 Open

Minter Ellison Legal advice Disbursements Total

$395,779$ 31,361$427,140

$236,026$ 31,785$267,811

11 Nov 2010 Open

DLA Piper Legal advice. Disbursements Total

$43,818$7,172$50,990

$9,022

$9,022

10 Nov 2010 Open

King & Wood, Mallesons

Legal advice. Disbursements Total

$ 38,786$ 60

$38,846

$ 9,187$ 2,074$11,261

1 Dec 2007 Mallesons

have 1 matter remaining from their

original contract.

Open

KPMG Actuarial Services $35,454 $16,363 May 2011 Select tender within procurement thresholds

Grand Total $610,386 $318,262

Disbursements include costs such as medical examinations, investigation reports and counsels’ fees.

The DI Fund did not receive any requests under the Freedom of Information Act 1989 or any public interest disclosures during 2013‐14.

Reporting areas not applicable to the Default Insurance Fund are listed at page 110 of this report.

Further information may be obtained from:

Mr John Fletcher General Manager ACT Insurance Authority +61 2 6207 0268 [email protected]

Annexed Reports 110

Non‐Applicable Reporting Requirements Due to the nature of their enabling legislation, functions or administrative support, the entities listed below do not report against the listed sections of the Annual Report Directions.

ACT Executive Performance Reporting

B.3, B.4

Governance and Accountability

C.4, C.5

Legislation Based Reporting

D.1, D.3, D.6, D.7, D.8

Financial Management Reporting

F.3, F.4, F.5

Compulsory Third Party Insurance Regulator Performance Reporting

B.4


C.3


D.1‐D.8

Human Resources Management and Reporting

E.1‐E.5


F.4, F.5

Default Insurance Fund Performance Reporting

B.3, B.4


C.4, C.5


D.3, D.5, D.6, D.7, D.8

Annexed Reports 111

Human Resources Management and Reporting

E.1‐E.5


F.3, F.4, F.6

Alphabetical Index 112

Alphabetical Index AAA Credit Rating ..........................................................................................................................

ACT Budget 2014‐15 .....................................................................................................................

ACT Courts Redevelopment Project .............................................................................................

ACT CTP Insurance Scheme ...........................................................................................................

ACT Government Digital Communications Strategy and Guidelines ............................................

ACT Government Digital Mail Service ...........................................................................................

ACT‐NSW Memorandum of Understanding .................................................................................

ACT Public Sector 2014 All Staff Survey ........................................................................................

ACT Public Service Strategic Board ...............................................................................................

ACT Veterans’ Advisory Council ....................................................................................................

ACT Work Safety Council ..............................................................................................................

ACTPS Code of Conduct ................................................................................................................

ACTPS Enterprise Agreements ......................................................................................................

ACTPS Performance Framework ...................................................................................................

ACTPS Respect Equity and Diversity Framework (see Respect Equity and Diversity Framework)

ACTPS Strategic Board ..................................................................................................................

ACTPS Workers’ Compensation and Work Safety Improvement Plan .........................................

Asbestos ........................................................................................................................................

Asbestos Response Taskforce .......................................................................................................

Audit and Risk Committee ............................................................................................................

Australia Forum .............................................................................................................................

Budget Review ..............................................................................................................................

Cabinet in the Community ............................................................................................................

Canberra Digital Community Connect ..........................................................................................

Canberra Gold Awards ..................................................................................................................

Canberra Nara Sister City Committee ...........................................................................................

Capital Metro ................................................................................................................................

Centenary of Canberra ..................................................................................................................

CMTD Corporate Plan ...................................................................................................................

Commissioner for Public Administration ......................................................................................

Commonwealth Grants Commission ............................................................................................

Alphabetical Index 113

Consolidated Annual Financial Statement ....................................................................................

Council for the Australian Federation (CAF) .................................................................................

Council of Australian Governments (COAG) .................................................................................

CTP Regulator ................................................................................................................................

Digital Canberra Action Plan .........................................................................................................

Digital Canberra eBusiness Report ...............................................................................................

Executive Management Group .....................................................................................................

Getting Home Safely Report .........................................................................................................

Healthy Weight Action Plan ..........................................................................................................

Healthy Weight Initiative ..............................................................................................................

Holidays Act 1958 .........................................................................................................................

iConnect ........................................................................................................................................

Independent Competition and Regulatory Commission ..............................................................

Intergovernmental Agreement on Federal Financial Relations....................................................

Lifetime Care and Support (Catastrophic Injuries) Act 2014 .........................................................

Lifetime Care and Support Scheme ..............................................................................................

Long Service Leave (Portable Schemes) Act 2009 .........................................................................

Medicare Change Your Address campaign ...................................................................................

Mobile Canberra App ....................................................................................................................

National Disability Insurance Scheme ..........................................................................................

National Injury Insurance Scheme ................................................................................................

National Licensing Reform ............................................................................................................

Our City, Our Community Newsletter ...........................................................................................

Public Private Partnerships (PPP) .................................................................................................

Public Interest Disclosure Guidelines ...........................................................................................

Public Sector Bill ............................................................................................................................

Public Sector Management Act 1994 ............................................................................................

Public wi‐fi .....................................................................................................................................

Red Tape Reduction ......................................................................................................................

Regulatory Reform Panel ..............................................................................................................

Respect Equity and Diversity Framework (RED Framework) ........................................................

Responsible Investment Policy .....................................................................................................

RiskMan .........................................................................................................................................