department of climate change and energy efficiency annual report 2007- 2008

Department of Climate Change Annual Report 2007–08

October 2008

© Commonwealth of Australia 2008

ISBN 978-1-921298-28-8

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the:

Commonwealth Copyright Administration Attorney-General’s Department Robert Garran Offices National Circuit BARTON ACT 2600

Or posted at: http://www.ag.gov.au/cca

A copy of this document and other Department of Climate Change information appears on the department’s website at: www.climatechange.gov.au/about/annualreport/index.html.

Printed by Finsbury Green Design and typesetting by ZOO

ii Department of Climate Change Annual Report 2007–08

Office of the Secretary

2 October 2008

Senator the Hon Penny Wong Minister for Climate Change and Water Parliament House CANBERRA ACT 2600

Dear Minister

I have pleasure in presenting to you the first Annual Report for the Department of Climate Change for the year ended 30 June 2008. The report has been prepared in accordance with section 63 of the Public Service Act 1999. Subsection 63 (1) of the Act requires that a Secretary of a department is to provide a copy of the report to their agency Minister for presentation to the Parliament.

As provided in subsection 63 (2) of the Act, the Report has been prepared in accordance with guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit. These guidelines provide that a copy of the Annual Report is to be laid before each House of the Parliament on or before 31 October.

Yours sincerely

Dr Martin Parkinson Secretary

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iv Department of Climate Change Annual Report 2007–08

Contents Letter of transmission iii

Introduction and guide to the report vii

Contact details viii

Section 1: Review by Secretary 1 Welcome from the Secretary, Dr Martin Parkinson 3

2007–08 major achievements 5

Section 2: Overview 9 Portfolio overview 11

Departmental overview 12

Organisational structure 13

Our people and values 15

Executive management 16

Outcome and outputs framework 17

How the department will report 19

Section 3: Report on performance 21 Overview 23

Feature article: The Carbon Pollution Reduction Scheme 25

Output 1.1: Reducing Australia’s greenhouse gas emissions 26

Feature article: The National Greenhouse and Energy Reporting System 32

Output 1.2: Adaptation to the impacts of climate change we cannot avoid 33

Feature article: Adaptation Research Facility 38

Output 1.3: Helping to shape a global solution 39

Feature article: The Bali outcome 43

Section 4: Management and accountability 45 Corporate governance 47

External scrutiny 50

Management of human resources 51

Feature article: Setting up a new department 57

Asset management 58

Purchasing and procurement 58

Consultancies 59

Commonwealth Disability Strategy 59

Feature article: Staff awards 60

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Section 5: Financial statements 61 How the department is funded 63

Departmental finances 63

Administered finances 63

Financial statements 67

Notes to and forming part of the Financial statements 76

Section 6: Other statutory reporting 109 Occupational Health and Safety 111

Freedom of information 111

Advertising and market research 114

Ecologically sustainable development 114

Discretionary grant programs 115

Section 7: Appendix 117 Compliance index 119

Acronyms 121

Index 123

List of tables

Table 1: Financial and staffing resources summary 24

Table 2: Operative and paid inoperative staff by classification and gender 53

Table 3: Salary scales—SES 54

Table 4: Workplace Agreement salary scales—non-SES 55

Table 5: APS6, EL1 and EL2 additional pay points 55

Table 6: Operative and paid inoperative staff by EEO target group 56

Table 7: Advertising and market research expenditure for 2007–08 114

Table 8: Discretionary grant programs 115

List of figures and charts

Figure 1: Department of Climate Change portfolio structure 11

Figure 2: Top management structure (as at 30 June 2008) 14

Figure 3: Outcome and output structure (as at 30 June 2008) 19

Figure 4: Department of Climate Change Governance Committees 49

vi Department of Climate Change Annual Report 2007–08

Introduction and guide to the report This is the first annual report of the Department of Climate Change. The department’s annual report outlines performance against the revised outcome and output structure as reported in the 2008–09 Portfolio Budget Statements.

Section 1 of this report includes the Secretary’s review for 2007–08 and includes the major achievements for the department in 2007–08.

Section 2 of the report includes an overview of the department’s role, functions, senior management and organisational structures and the department’s outcome and output framework.

Section 3 of the report provides an analysis of performance against the department’s policy outcome and three outputs. In accordance with the Requirements for Annual Reports, while the department was established on 3 December 2007, the performance report in Section 3 covers the 12 month period from 1 July 2007 to 30 June 2008. As such it includes reports on the performance of functions previously the responsibility of the former Department of the Environment and Water Resources, the Department of Prime Minister and Cabinet and the Department of Foreign Affairs and Trade.

Section 4 reports on management and accountability issues as required under the Requirements for Annual Reports. The Section 4 report covers the period from the establishment of the department under the machinery-of-government changes on 3 December 2007 to 30 June 2008.

Section 5 presents the audited financial statements of the Department of Climate Change as required under the Requirements for Annual Reports and covers the period from the creation of the department on 3 December 2007 to 30 June 2008. This relates to the period the Secretary had responsibility for the financial management of the department. The financial statements report against the outcome framework inherited from the former Department of Environment and Water Resources.

Section 6 of the report includes other statutory reporting as required under the Requirements for Annual Reports.

Section 7 is the appendix and includes the compliance index and acronyms as required under the Requirements for Annual Reports.

The report concludes with an index to the report.

Other sources of information

The Department of Climate Change releases information on its activities through the website, publications, press releases, speeches and other reports including the Annual Report. Copies of the department’s publications are available on its website at www.climatechange.gov.au.

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Contact details The contact officer to whom enquiries regarding this report may be directed is:

The Chief Financial Officer Corporate Services Branch The Department of Climate Change Telephone: (02) 6275 9095 Fax: (02) 6274 2970

viii Department of Climate Change Annual Report 2007–08

1Section 1: Review by Secretary

1

Welcome from the Secretary, Dr Martin Parkinson 3

2007–08 major achievements 5 Establishing the department 5

Reducing Australia’s greenhouse gas emissions 6

Adapting to the impacts of climate change we cannot avoid 6

Shaping a global solution to climate change 7

2 Department of Climate Change Annual Report 2007–08

Welcome from the Secretary, Dr Martin Parkinson

Established on 3 December 2007, the Department of Climate Change was tasked by the Prime Minister to lead the development and coordination of Australia’s climate change policies.

The seven months since the department was created has been challenging.

Within days of the department’s establishment, we were supporting the Prime Minister, the Minister for Climate Change and Water, and the Minister for the Environment, Heritage and the Arts at the United Nations climate change convention in Bali. With the ratification of the Kyoto Protocol being the first official act of the new Government, Australia

received a warm welcome at the Bali conference and was influential in delivering the breakthrough ‘Bali Roadmap’.

From its inception, the department moved quickly to implement the Government’s key priorities, built around a three pillar response to climate change

• reducing Australia’s greenhouse gas emissions

• adapting to the impacts of climate change we cannot avoid

• helping to shape a global solution.

This three pillar strategy recognises that no country acting alone can ‘solve’ climate change — this is a global problem requiring a global solution. Timely action to begin to reduce Australia’s own emissions will be critical if we are to help shape an effective global outcome. The longer it takes to find a global response, the greater the degree of climate change to which Australians will inevitably need to adapt — actions by Australia can both increase the likelihood of global solutions and position us well to take advantage of emerging opportunities in a low carbon world.

The department has worked intensely to help the Government implement its emissions trading and renewable energy agendas. Through an extensive consultation process with the community, business, non government organisations and our

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Section 1: Review by Secretary 3

1

colleagues at all levels of government, the department developed policy options for the Carbon Pollution Reduction Scheme. This process culminated in the release of the Green Paper by Minister Wong on 16 July 2008.

An extensive consultation process has also been underway around the renewable energy target, including the release of a discussion paper on design options on 2 July 2008.

Since Bali there has also been a sharp increase in the number and complexity of international initiatives for which the department has primary carriage. In particular, the dramatic expansion of multilateral negotiations around a post-2012 global agreement was accompanied by significant growth in our bilateral partnership initiatives and strategic engagements, including with the UK and China.

In many ways, though, the elephant in the room on climate change policy remains adaptation. In all countries, work on the science of the localised impact of climate change, the tools to analyse vulnerabilities, and the policies to respond, is in its infancy. Much of the department’s work in this area constitutes an initial investment in developing a new framework for climate change science and adaptation policy.

At the same time as embarking on the Government’s wide-ranging policy agenda, we have had to build a new department from scratch.

We were lucky to be able to find accommodation relatively quickly thanks to the assistance of the Department of the Environment, Water, Heritage and the Arts (DEWHA), but for the first few months staff remained scattered across three different sites (1 National Circuit, John Gorton Building and RG Casey Building), using different computer and other systems and, in many cases, never having met their new departmental colleagues.

Building a corporate framework and implementing the systems and policies needed to operate as a department of state, while tackling the policy agenda, truly has been a major challenge and one that will continue for some time yet. Our management information systems, policies and processes continue to mature and we look forward to eventually being able to co-locate all staff in refurbished premises at 2 Constitution Avenue.

Throughout the period, though, we have been assisted by David Borthwick and his colleagues at DEWHA and I would like to express my thanks to them for their help.

It has been an exciting, challenging and, at times, frustrating, period for the department’s staff. Their collective ingenuity, creativity, enthusiasm and extraordinary patience have, however, made this a year of major achievement and I thank them for their commitment to our goals and their forebearance with our start-up challenges.

The year ahead will be equally challenging. Progress toward the Copenhangen meeting of the United Nations Framework Convention on Climate Change (UNFCCC) and strengthened bilateral engagement will be a priority.

We will also assist the Government to finalise the policy design of the Carbon Pollution Reduction Scheme and the renewable energy target and to set medium-term emissions


targets. This will involve putting in place more of the institutional building blocks, including work on the future Carbon Pollution Reduction Scheme regulator.

Our adaptation role will also continue to grow, with the development of a long-term adaptation agenda and driving the accelerated implementation of the National Climate Change Adaptation Framework.

All in all, it promises to be another exciting year.

Martin Parkinson Secretary

2007–08 major achievements Delivery of the new Australian Government’s climate change policy began with the ratification of the Kyoto Protocol as its first official act and with the creation of the Department of Climate Change on 3 December 2007. A summary of the department’s progress towards achieving its outcomes is shown below:

Establishing the department • Core administrative functions were quickly established to provide support services

for the Minister and to underpin the department’s governance and accountability frameworks. These functions included policies, procedures, systems and reporting arrangements to meet reporting and legislative requirements and to ensure adequate capacity to deliver the Government’s climate change agenda. This foundation work enabled the department to expand from a single person on 3 December 2007 to 273 by 30 June 2008, supporting the delivery of government initiatives and existing programs.

• Development of internal mechanisms for effective management commenced, with work continuing to refine these systems. A new corporate identity was unveiled.

• The outcome and output framework was revised to reflect the department’s functions, aligned with the three pillars of the Government’s climate change policy framework of:

– reducing Australia’s greenhouse emissions

– adapting to the impacts of climate change we cannot avoid

– helping to shape a global solution.

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1

Reducing Australia’s greenhouse gas emissions • The department assisted the Government in the policy development and drafting of

the Carbon Pollution Reduction Scheme Green Paper, released in July 2008. The paper identifies key design decisions for an emissions trading scheme, discusses alternative approaches to these and indicates preferred positions. It was the culmination of extensive consultation with industry, community groups and other stakeholders, and a whole-of-government development process.

• The National Greenhouse and Energy Reporting Act 2007 (the Act) was passed in September 2007. With the benefit of high level stakeholder engagement, the department introduced the National Greenhouse and Energy Reporting System to facilitate the Act’s mandatory corporate reporting of greenhouse gas emissions and energy consumption and production. It is a key building block for the introduction of a Carbon Pollution Reduction Scheme.

• The department consolidated its capability to support Government energy and emissions reporting programs through major developments in 2007–08 of the Online System for Comprehensive Activity Reporting (OSCAR). This web-based portal enables businesses to compile and report their data online; it will reduce the greenhouse and energy reporting burden on industry by streamlining reporting requirements of the Australian, State and Territory Governments.

• The Council of Australian Governments (COAG) Working Group on Climate Change and Water was supported in developing an agreed set of principles as to what constitutes complementary measures to the Carbon Reduction Pollution Scheme.

• Tracking to the Kyoto Target 2007, released in February 2008, provided updated projections of Australia’s greenhouse gas emissions. This showed Australia was broadly on track to meet its international emissions target of 108 per cent of the 1990 emissions level over the period 2008–12. The projections enable the Government to determine the effectiveness of policies and programs aimed at reducing emissions from business-as-usual levels.

• The department facilitated the United Nations Framework Convention on Climate Change In-Depth Review of Australia’s 4th National Communication on Climate Change Actions. This reaffirmed Australia’s adherence to the comprehensive and transparent reporting standards expected of signatories to the UNFCCC.

Adapting to the impacts of climate change we cannot avoid • The department delivered the initial rollout of the Government’s $126 million Climate

Change Adaptation Program. This includes funding for the Great Barrier Reef Marine Park Authority to implement a climate change action plan for the world heritage listed reef.

• The COAG Adaptation Sub-group, reporting to the Working Group on Climate Change and Water, was supported in the further development of a national approach to


adaptation. This included national and regional action plans to enable to accelerated implementation of the National Climate Change Adaptation Framework.

• The National Climate Change Adaptation Research Facility, hosted by Griffith University, was established to provide national leadership to coordinate Australia’s climate change adaptation research. The facility will address knowledge gaps of importance to decision-makers in managing the risks of likely climate change impacts.

• The department, through the Australian Climate Change Science Program, supported the development of new climate change projections for 2030 and 2070. Released in October 2007, these projections were the first prepared for Australia as a whole and updated the previous national projections issued in 2001. For the first time, they included information on the probability of future temperature and rainfall changes. Information on future climate is essential to support effective adaptation.

• The department engaged with the science community on the future direction of Australian climate change science through a national workshop hosted by the Australian Academy of Science in March 2008. The workshop addressed the research, infrastructure and human resource priorities for Australian science and was designed to underpin the development of a national Climate Change Science Framework.

Shaping a global solution to climate change • The department was heavily involved in supporting the Government’s agenda in a range of international climate change developments. Officials made leading contributions to the significant outcomes—including the ‘Bali Roadmap’—of the 13th UNFCCC Conference of the Parties in Bali, December 2007. This included providing support for the high level ministerial delegation, which saw the Prime Minister formally announce Australia’s ratification of the Kyoto Protocol, bolstering Australia’s influence in the negotiations for a new international post-2012 climate change agreement.

• Continuing participation in high level climate change forums which support the UN negotiations saw the department participate in four ministerial-level meetings of the US-led Major Economies Meetings initiative; the ‘G8 Plus’ Environment Ministers meeting (May 2008); the UN High-Level Event on Climate Change (September 2007); and the UN thematic debate on climate change (February 2008), all of which have provided opportunities for high-level consideration of, and input into, the international climate change debate.

• The department was actively involved in Australia’s successful push for an expedited multilateral approach to addressing greenhouse gas emissions from international aviation and shipping during the International Civil Aviation Organization Assembly in September 2007 and the Maritime Environment Protection Committee meetings of the International Maritime Organization in July 2007 and April 2008.

• Senior departmental officials played a major role in working with Asia-Pacific Economic Cooperation (APEC) economies to promote clean development and climate as a key focus of the APEC Leaders Summit in September 2007.

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• The department was also heavily engaged on forests and deforestation issues, in particular on the development and launch of the International Forest Carbon Initiative. This Initiative aims to demonstrate that reducing emissions from deforestation and forest degradation can be part of an equitable and effective international agreement on climate change. The Papua New Guinea-Australia Forest Carbon Partnership (March 2008) and the Indonesia-Australia Forest Carbon Partnership (June 2008) were established as part of the Initiative to assist both nations in reducing emissions from deforestation and forest degradation. In February 2008 the Government also announced a strategic partnership with the Clinton Climate Initiative that will see Australia’s National Carbon Accounting System adopted as a platform for the rolling out of a global forest carbon monitoring system.


2Section 2: Overview

2

Portfolio overview 11



Our people and values 15 People Values Statement 15

Executive management 16 The Secretary, Dr Martin Parkinson 16

Deputy Secretary and Special Envoy, Howard Bamsey 16

Deputy Secretary, Blair Comley 17

Outcome and outputs framework 17

How the department will report 19


2

Portfolio overview The Department of Climate Change was created as part of the machinery-of-government changes announced by the Prime Minister on 3 December 2007. It is the lead agency on the Government’s commitment to respond effectively to climate change issues and for Australia to play an active and constructive role in international climate change negotiations.

The department is a statutory agency under the Public Service Act 1999 and a prescribed agency under the Financial Management and Accountability Act 1997. It is part of the Prime Minister and Cabinet portfolio. The minister responsible for the Department of Climate Change is Senator the Hon Penny Wong, Minister for Climate Change and Water.

The Office of the Renewable Energy Regulator (ORER) was transferred, as part of the machinery-of-government changes, to the Department of Climate Change from the former Environment and Water Resources portfolio. ORER is responsible for implementing the Australian Government’s mandatory renewable energy target, which is to be achieved over the period 2001 to 2020.

This annual report covers the performance, accountability and financial reporting for the Department of Climate Change. ORER is required to publish its own annual report as a prescribed agency under the Financial Management and Accountability Act 1997.

Figure 1: Department of Climate Change portfolio structure

Minister for Climate Change and Water Senator the Hon Penny Wong

Department of Climate Change Portfolio Secretary

Dr Martin Parkinson

Office of the Renewable Energy Regulator Renewable Energy Regulator

Mr David Rossiter

Section 2: Overview 11

Departmental overview

2

The department is responsible for policy advice, implementation and program delivery in three areas:

• reducing Australia’s greenhouse gas emissions

• adapting to the impacts of climate change we cannot avoid

• helping to shape a global solution.

In discharging its responsibilities the department aims to improve Australia’s well-being by contributing to effective national and global responses to climate change, including the necessary transformation of the Australian economy.

The department supports government by leading and co-ordinating the cost-effective mitigation of climate change, adaptation to its impacts, and the shaping of global solutions through:

• advice to the government that is of the highest quality, is integrated, objective and well-informed

• effective delivery of programs and services to Australia.


Organisational structure From its formation to 30 June 2008, the department was organised for administrative purposes into four divisions—a fifth division was planned to come into existence as the National Greenhouse and Energy Reporting Act 2007 took effect on 1 July 2008. The existing divisions and their primary responsibilities are outlined below:

Emissions Trading Division is responsible for whole-of-government development and implementation of Australia’s Carbon Pollution Reduction Scheme.

Strategies and Coordination Division plays a central coordination role both across the Department of Climate Change and across the Commonwealth Government. The division is responsible for managing the Council of Australian Governments (COAG) working group on climate change and water, and leading COAG work on complementary measures and renewable energy. The division administers the legislation for a single, nationally consistent framework for greenhouse gas emissions and energy reporting by industry, and produces the National Greenhouse Gas Inventory and annual projections of Australia’s future greenhouse gas emissions. It is also responsible for managing communications and stakeholder relations.

Adaptation and Land Management Division is responsible for developing and implementing a strategic approach to climate change adaptation and land management issues, and coordinating climate change science activities. This includes critical functions in measuring and reporting on emissions from land use activities through the National Carbon Accounting System.

International Division is responsible for developing Australia’s international climate change policy and strategy. It leads work on international climate change negotiations for Australia, including under the United Nations Framework Convention on Climate Change, the Kyoto Protocol and the climate change aspects of other major international fora. It is also responsible for climate relations with important regions and regional organisations for Australia, including the Pacific, APEC and East Asia Summit; as well as the bilateral climate change partnerships that Australia has with a number of other countries, including the United States, China, New Zealand, Papua New Guinea, Indonesia, United Kingdom and South Africa.

Supporting these key areas, Corporate Services Branch has primary responsibility for policies and procedures to ensure compliance with all statutory and legislative requirements associated with a department of state, and for strategic organisational priorities that build and sustain the department’s capacities.

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Figure 2: Top management structure (as at 30 June 2008)

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Our people and values Since its creation the department’s workforce increased from one on 3 December 2007 to 273 on 30 June 2008, including 27 secondees from other agencies. Staff are located in two locations at 2 Constitution Avenue, Canberra City and at Computer Associates House, 10 National Circuit, Barton.

The department focused on developing its identity and organisational culture based on the Australian Public Service (APS) Values and Code of Conduct. In addition to the APS values the department has developed the following People Values Statement.

People Values Statement

A highly professional and committed workforce is fundamental to the delivery of our vision and mission. We are committed to recruiting and retaining excellent people through:

• ongoing development

• encouraging flexible, healthy and safe work practices

• competitive rewards and recognition

• encouraging and supporting innovation and continuous improvement

• providing a productive and supportive working environment for our people.

Along with a prevailing consideration of the environment, employees of the department exemplify the APS Code of Conduct and Values and the behaviours of a high performance workforce. These behaviours are:

• ethical behaviour

• accountability

• honesty

• respect for others

• open communication

• commitment

• team work.

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Executive management The Secretary of the Department is Dr Martin Parkinson. Dr Parkinson is supported by two Deputy Secretaries, Howard Bamsey and Blair Comley.

The Secretary, Dr Martin Parkinson

Dr Martin Parkinson was appointed as Secretary upon establishment of the Department of Climate Change on 3 December 2007. The Secretary is responsible for providing overall leadership of the department; he determines the department’s priorities, delivers organisational performance and directs higher priority initiatives. In consultation with the Deputy Secretaries, the Secretary is responsible for overseeing corporate governance, resource allocations and providing strategic direction to the department. The Secretary is accountable to the Minister for Climate Change and Water.

The Secretary’s appointment follows six years as Executive Director (Deputy Secretary equivalent) in the Treasury with responsibility for domestic and international macroeconomic issues and as Deputy Secretary of the Climate Change Group in the Department of Prime Minister and Cabinet with responsibility for leading and coordinating implementation of the emissions trading scheme and coordinating climate change policy. He has also previously worked at the International Monetary Fund on issues surrounding the reform of the global financial system.

Deputy Secretary and Special Envoy, Howard Bamsey

Howard Bamsey is Deputy Secretary overseeing the Adaptation and Land Management Division, International Division and Corporate Services Branch. He is also Australia’s Special Envoy on Climate Change and is one of Australia’s most experienced negotiators, playing a key role in international climate change negotiations.

Mr Bamsey was formerly Deputy Secretary in the Department of the Environment and Water Resources and head of the Australian Greenhouse Office. In 2006–07 he was co-facilitator of the United Nations Dialogue on Long-term Cooperative Action on Climate Change, which formed the basis for negotiations under the Bali Action Plan.


Deputy Secretary, Blair Comley

Blair Comley is Deputy Secretary overseeing the design and implementation of the emissions trading system and matters related to renewable energy, emissions inventory and projections, and COAG.

Previously Mr Comley held a range of senior positions in the Treasury in the Business Tax, Indirect Tax and Macroeconomic Policy Divisions and in the Debt Management Review Team. He also represented Australia on economic matters at the Organisation for Economic Co-operation and Development (OECD) and acted as the Chief Executive Officer of the Australian Office of Financial Management.

Outcome and outputs framework Following the machinery-of-government changes on 3 December 2007, relevant functions and resources were transferred to the Department of Climate Change from the former Department of the Environment and Water Resources, the Department of the Prime Minister and Cabinet and the Department of Foreign Affairs and Trade.

The department inherited the outcome and output framework from the former Department of the Environment and Water Resource, which was ‘the environment, especially those aspects that are matters of national environmental significance, is protected and conserved’. The single output transferred to the department was ‘response to climate change’.

Functions transferred to the department on 3 December 2007 are shown in the table below:

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Outcome/functions agency

Development and coordination of domestic climate Department of the Environment, Water, change policy Heritage and the arts (Former Department of

the Environment and Water Resources) Greenhouse emissions and energy consumption reporting

Climate change adaptation strategy and coordination

Coordination of climate change science activities

Mandatory renewable energy target policy, regulation and coordination

Design and implementation of emissions trading Department of Prime Minister and Cabinet

Development and coordination of international Department of Foreign affairs and trade climate change policy Department of the Environment, Water,

Heritage and the arts (Former Department of the Environment and Water Resources)

international climate change negotiations Department of Foreign affairs and trade


The department reviewed its outcome and output framework in January 2008, to ensure it is more reflective of the full range of functions and responsibilities acquired under the machinery-of-government changes. It has operated under a revised outcome and outputs framework since March 2008, and the framework was reported in the department’s 2008–09 Portfolio Budget Statements.

The department’s new outcome is: ‘The well-being of present and future generations of Australians is improved by contributing to effective national and global responses to climate change through policy advice, negotiations and program delivery.’

Supporting this outcome the department has three outputs:

• Reducing Australia’s greenhouse gas emissions—through development of domestic policy in relation to Australia’s greenhouse emissions reduction target of 60 per cent below 2000 levels by 2050. This includes development and implementation of an emissions trading scheme by 2010, and achieving the target of 20 per cent renewable energy in Australia’s electricity generation by 2020.

• Adapting to the impacts of climate change we cannot avoid—through development of a whole-of-government policy framework for climate change adaptation, and advancement of science-based research.

• Helping to shape a global solution—through influence on the development of international policies and measures in relation to climate change, including shaping the development of a new global agreement to address climate change.

The department has responsibility for four administered programs: 2

• Greenhouse Action to Enhance Sustainability in Regional Australia addresses challenges and knowledge gaps about climate change in regional Australia (agriculture, forestry and natural resource management sectors).

• Influencing International Climate Change Policy provides specialist advice on international climate change arrangements and on building the capacity of key developing countries to take effective climate change action through bilateral partnerships.

• Australian Centre for Climate Change Adaptation promotes and supports adaptation action in three key ways: improving our knowledge of climate change impacts; strengthening the capability of decision-makers to respond; and addressing major areas of vulnerability in Australia.

• Climate Change Science is the Government’s core climate change science effort and underpins Australia’s commitments under the United Nations Framework Convention on Climate Change (UNFCCC). The key objective of the program is to understand the nature, causes, timing and implications of climate change for Australia.


Figure 3: Outcome and output structure (as at 30 June 2008)

Outcome 1 the well being of present and future generations of australians is improved by contributing to

effective national and global responses to climate change through policy advice, negotiations, and program delivery

Output 1.1 Output 1.2 Output 1.3 Reducing australia’s adapting to the impacts Helping to shape a

greenhouse gas emissions of climate change we global solution cannot avoid

How the department will report In accordance with the Requirements for Annual Reports published by the Department of Prime Minister and Cabinet the department’s first annual report adopts different approaches to reporting on different issues:

• Performance reporting is for the 12 month period from July 2007 to June 2008. As such, it covers activities and functions carried out by other departments prior to the formation of the Department of Climate Change in December 2007, as well as the activities of the department since then. However, the department will report against the revised outcome and outputs framework as published in the 2008–09 Portfolio Budget Statements as it is more reflective of the department’s business operations since its formation in December 2007.

• Management and accountability is for the period from the creation of the department on 3 December 2007 to 30 June 2008. This relates to the period the Secretary had responsibility for corporate governance and resource management of the department.

• Financial reporting covers the period from the creation of the department on 3 December 2007 to 30 June 2008. This relates to the period the Secretary had responsibility for the financial management of the department. The financial statements report against the outcome and output framework inherited from the former Department of Environment and Water Resources.

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3 Section 3: Report on performance

Overview 23

Table 1: Financial and staffing resources summary 24

Feature article: The Carbon Pollution Reduction Scheme 25

Output 1.1: Reducing Australia’s greenhouse gas emissions 26 Analysis of performance 26

Performance report for Output 1.1 31

Feature article: The National Greenhouse and Energy Reporting System 32

Output 1.2: Adaptation to the impacts of climate change we cannot avoid 33

Analysis of performance 33


Feature article: Adaptation Research Facility 38

Output 1.3: Helping to shape a global solution 39 Analysis of performance 39


Feature article: The Bali outcome 43

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Overview Climate change is a complex, cross-cutting issue with impacts across Australia’s economy, environment and society. In the 2008–09 Budget, the Government made a substantial commitment towards addressing climate change. It committed $2.3 billion over four years to help individuals, communities and businesses meet the challenges of climate change, as we work in partnership with other nations to develop cooperative, global solutions.

The creation and structure of this new department reflects the Government’s three pillar approach to climate change: reducing Australia’s greenhouse gas emissions; adapting to the impacts of climate change we cannot avoid; and helping to shape a global solution. The department is contributing to the ongoing development of the Government’s climate change strategy through extensive consultation, careful analysis and methodical policy design.

Distributed development and delivery of government climate change measures by relevant line agencies will bring specialised skills and knowledge to bear. However, delivering a coordinated government response to climate change is crucial so the Government can deliver its overall climate change policy objectives.

To this end, the department is leading a whole-of-government policy coordination process on the Government’s climate change strategy. It coordinates a number of committees that strengthen the development of domestic climate change policy. The Secretaries’ Committee on Climate Change serves as an over-arching structure for whole-of-government coordination on climate change policy, and is supported by other inter-departmental committees, including the Deputy Secretaries’ Committee on Climate Change. The department is also responsible for providing briefing and support to the Climate Change, Water and Environment Cabinet Committee.

Independent reviews, such as the Garnaut Climate Change Review and the Climate Change Strategic Review (‘The Wilkins Review’) are integral contributions to the process of developing and implementing the Government’s climate change strategy. In the department’s 2008–09 Portfolio Budget Statements, the Government allocated $2.3 million to support the landmark Garnaut Review, an independent review examining the impacts of climate change on the Australian economy.

This is the department’s first performance report since it was created following the machinery-of-government changes on 3 December 2007. The performance report

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Section 3: Report on performance 23

covers the period from 1 July 2007 to 30 June 2008, against the revised outcome and output framework reported in the department’s 2008–09 Portfolio Budget Statements.

taBlE 1: FinanCial anD StaFFinG RESOuRCES SuMMaRy

actual

Budget expenses

2007–08 2007–08

$’000 $’000

Variation

$’000

Budget

2008–09

$’000

Administered expenses 19,307 14,658 (including third party outputs)

4,649 32,051

Total administered expenses 19,307 14,658 4,649 32,051

Price of departmental outputs

Output 1.1: Reducing australia’s greenhouse gas emissions

20,454 20,834 –380 37,849

Output 1.2: adaptation to the impacts of climate change we cannot avoid

7,138 7,326 –188 9,316

Output 1.3: Helping to shape a global solution 3,465 3,556 –91 8,359

Revenue from Government (Appropriation) for departmental outputs

31,057 31,716 –659 55,524

Revenue from other sources 173 –173 –

Total price of outputs 31,057 31,889 –832 55,524

Total price for outcome (total price of outputs and administered expenses)

50,364 46,547 3,817 87,575

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average staffing level 110 119 250


The Carbon Pollution Reduction Scheme The Government established the Department of Climate Change to lead its integrated climate change policy agenda of reducing Australia’s greenhouse gas emissions, adapting to climate change and helping to shape a global solution.

A key plank of the Government’s approach to meeting its 2050 target of reducing emissions by 60 per cent on 2000 levels is to create a new market-based policy response, the Carbon Pollution Reduction Scheme. The name of the scheme emphasises the policy objective of reducing emissions, with emissions trading being the mechanism to achieve this objective at least cost.

An explicit price on carbon will fundamentally transform the Australian economy and deliver low-cost emission reductions, and is central to the Government’s economic reform agenda.

The proposed design of the Carbon Pollution Reduction Scheme has incorporated lessons from international experience to date with emissions trading scheme design. Best practice features include:

• a careful balance between providing investment certainty while retaining necessary policy flexibility

• high level of coverage (around 75 per cent of national emissions)

• a careful balance between providing assistance to emissions-intensive, trade-exposed industries and the need to ensure an appropriate burden share across the economy.

The Department of Climate Change has drawn on the views, experience and expertise of the community, business, non-government organisations and other Commonwealth and State and Territory government agencies in designing the Carbon Pollution Reduction Scheme through an extensive consultation process. A key part of this is the Government’s Green Paper, which was released in 2008–09 but developed in 2007–08. The Carbon Pollution Reduction Scheme is described in Output 1.1 in this annual report.

Details of the proposed design set out in the Green Paper are available at the website http://www.climatechange.gov.au/greenpaper.

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Output 1.1: Reducing Australia’s greenhouse gas emissions The Emissions Trading Division, the Strategies and Coordination Division, and the Adaptation and Land Management Division contribute to Output 1.1: Reducing Australia’s Greenhouse Gas Emissions by:

• providing advice on the design of the Carbon Pollution Reduction Scheme and preparing supporting legislation

• providing key foundations for emissions trading, including emissions reporting and analysis, and supporting engagement with the States and Territories

• providing policy support to the comprehensive policy framework and to specific areas, including renewable energy and carbon offsets.

Analysis of performance

Carbon Pollution Reduction Scheme

The Emissions Trading Division was established to provide advice on the development and implementation of the Carbon Pollution Reduction Scheme. The main focus of the division was the development and design of policy options and preferred positions for the architecture of the Carbon Pollution Reduction Scheme, which were released in a Green Paper on 16 July 2008.

Public consultation has been an integral part of the preparation of the Green Paper, to inform and involve the community, business and non-government organisations in design options for the Scheme. Consultation on emissions trading has included:

• a consultation paper on early abatement incentives released by the Department of the Prime Minister and Cabinet in 2007

• consultation papers on topics including coverage, international linking, the emissions trading registry, agriculture and forestry released by the Department of Climate Change during the first half of 2008

• more than 200 meetings with business including roundtable discussions for specific industry sectors and one-on-one meetings with individual firms and industry associations

• whole-of-government policy development with other Commonwealth Government agencies

• engagement with state and territory governments through the Council of Australian Governments (COAG) and other processes.


The department developed a range of policy options for Government consideration in the context of the development of the Green Paper. These included the development of policy approaches on:

• coverage of industry sectors

• methodologies for reporting and assurance that operationalise the National Greenhouse and Energy Reporting Act 2007 requirements

• market design, permit allocation and auction design principles

• the extent of access to Kyoto Protocol flexibility mechanisms and possible future linkages with emissions trading schemes in other countries

• methodologies for assessing and assisting emissions-intensive, trade-exposed industries and strongly affected industries (such as coal-fired electricity generators)

• assistance measures for households to be introduced alongside the scheme

• measures that will provide support and assistance to the community and business to adjust and transition to a low carbon environment.

Following the release of the Green Paper and extending into 2008–09, the department continued consultation through road shows and stakeholder meetings in state and regional centres and invited responses to the preferred positions outlined in the Green Paper via a public submissions process. These consultations will inform final decisions on the design of the scheme to be released in the White Paper.

The department is heavily engaged in related policy processes, including the economic and trajectory modelling by the Treasury which will assist the Government in its decisions as to Australia’s future carbon emissions pathway.

Plans for the establishment of a Scheme Regulator have been developed and work has commenced on establishing the necessary underpinning systems. This included planning the resources and business processes for the regulator and releasing an international open tender to procure an emissions trading registry. The National Registry will meet some of Australia’s commitments on managing and tracking units under the Kyoto Protocol and be a key system underpinning the Carbon Pollution Reduction Scheme.

Greenhouse and Energy Reporting

The National Greenhouse and Energy Reporting Act 2007 fulfilled an April 2007 COAG agreement and established a legislated requirement for corporations to report their greenhouse gas emissions and energy production and consumption. This is a key building block for establishing the Carbon Pollution Reduction Scheme.

High level stakeholder engagement was undertaken with industry, State and Territory Governments and other Commonwealth agencies as part of the policy development process. This has culminated in a reporting system with a high level of support.

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State and Territory engagement was facilitated through the Experts Group on Streamlining of Greenhouse and Energy Reporting convened under the COAG Working Group on Climate Change and Water (WGWCC). The department collaborated with State and Territory Governments to standardise approaches for corporate greenhouse gas emissions and energy reporting to reduce cost to Australian business through reducing duplication.

A number of major system releases were implemented, beginning with the integration of the Environmental Data Gathering and Reporting application for the Online System for Comprehensive Activity Reporting. Capacity was increased to assist, train and support users of the system.

National Greenhouse Accounts

The department develops and publishes estimates of greenhouse gas emissions in the National Greenhouse Account series, which is submitted to the UNFCCC. Australia’s emissions are estimated using international guidelines and are subject to international review, which tests consistency of the estimates with UN requirements. The findings are published on the UNFCCC website (http://unfccc.int/2860.php).

The following reports and papers were prepared and published:

• National Inventory Report 2005 Revised; National Inventory Report 2006; National Greenhouse Gas Inventory 2006; State and Territory Greenhouse Gas Inventories 2006; National Inventory by Economic Sector 2006

• The Australian Government’s Initial Report under the Kyoto Protocol

• National Greenhouse and Energy Reporting System Technical Guidelines for the Estimation of Greenhouse Emissions and Energy at Facility Level—Discussion paper

• National Greenhouse Account Factors January 2008.

National Carbon Accounting System

Australia’s National Carbon Accounting System is a world-leading system that accounts for greenhouse gas emissions from land based sectors. The system uses computer-based, land systems modelling and observations to provide a national map of emissions at a sub-hectare scale.

This year there has been substantial development in improving the capability of the National Carbon Accounting System to account for nitrous oxide emissions in the land sector. Work is also continuing to enhance the spatial modelling capabilities, with particular focus on reforestation, management of native forests, mapping of sparse woody vegetation and fire extent.

Australia’s strategic partnership with the Clinton Climate Initiative, announced in February 2008, will see the system adopted as a platform for rolling out a global forest carbon monitoring system. This will provide high-quality, low-cost forest carbon


data to developing countries for incorporation into their national forest monitoring systems, providing a sound basis for verification of reductions in deforestation and forest degradation.

A derivative of the system, the National Carbon Accounting Toolbox provides users with free access to develop estimates of emissions and removals of greenhouse gases at a project-scale. Landholders are also able to examine the historical land use changes that have occurred on their properties. The toolbox is being widely adopted, and ongoing training and support is provided by the department.

Greenhouse Action in Regional Australia

The Greenhouse Action in Regional Australia program involves funding of around $25 million over 2004–09. The program works with industry, research and government partners to trial new and improved agricultural and land management techniques, support carbon sink forest activities, and integrate greenhouse gas management with regional natural resource management. Partnerships with research organisations are ensuring a national approach and that the outcomes can be adopted by industry.

A number of significant projects were completed. These provided important contributions to improving understanding in areas such as nitrous oxide emissions from Australian cropping systems and emissions from forest soils, and identifying the potential for reducing methane emissions from livestock. There was also significant investment in new projects to continue building our understanding of the opportunities for reducing greenhouse gas emissions from Australian land systems. Since 2004 the program has attracted $36 million in co-investment from industry and research organisations, bringing the total value of the program to $60 million.

Tax deductibility for carbon sink forests

The Government amended the Income Tax Assessment Act (1997) to allow for tax deductibility for the cost of establishing forests dedicated to removing carbon dioxide from the atmosphere. This initiative is designed to stimulate investment in this emerging type of greenhouse emissions abatement. The department collaborated with the Treasury to complete the work underpinning the initiative, and is working in partnership with the Australian Taxation Office on its implementation.

Engagement with States and Territories through COAG

At its meeting of 20 December 2007 COAG established the WGCCW to ensure an effective national response to climate change. This forum is chaired by the Minister for Climate Change, Senator the Hon Penny Wong, with high level officials drawn from agencies with climate change responsibilities and central agencies from the Commonwealth and State and Territory governments. The department provided secretariat and policy support throughout 2007–08 for the Working Group objectives to progress: consultation with States and Territories on a single national Emissions Trading Scheme (the Carbon

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Pollution Reduction Scheme), incorporating State schemes; a nationally-consistent set of climate change measures to support the Scheme, including development of a set of principles as to what constitutes complementarity to the Carbon Pollution Reduction Scheme; a national cooperative approach to long-term adaptation to climate change; a plan for achieving the expanded national Renewable Energy Target by 2009; harmonisation of feed-in-tariffs, and sustainable water use.

Supporting the WGCCW, the department worked with sub groups on: renewable energy; energy efficiency; complementary measures; adaptation and water. The department convened: the renewable energy sub group, responsible for progressing the national expanded Renewable Energy Target and harmonisation of feed-in-tariffs; and the complementary measures sub group which is responsible for facilitating: consultation on the Carbon Pollution Reduction Scheme; reviewing climate changes measures to ensure they complement the scheme; and the streamlining of greenhouse and energy reporting.

Through the WGCCW, the department has consulted on the Renewable Energy Target. It has developed a Document of Shared Understanding to guide reviews of climate change mitigation measures, recognising the importance of developing a coherent and streamlined set of climate change measures across jurisdictions to complement the Carbon Pollution Reduction Scheme. The WGCCW also developed recommendations regarding feed-in tariffs for renewable micro generators, energy efficiency and climate change adaptation for consideration by COAG.


Performance report for Output 1.1

Performance indicator Progress towards achieving targets

Design and implementation of a Carbon Pollution Reduction Scheme

nationally consistent framework for streamlined greenhouse emissions and energy reporting by industry

Work effectively with the States and territories to achieve a nationally consistent set of climate change measures to support the emissions trading scheme

the Government’s preferred policy positions on the design of the scheme were developed in 2007–08.

Public consultation was undertaken through papers and meetings including the release of the Carbon Pollution Reduction Scheme Green Paper on 16 July 2008.

Planning of the institutional infrastructure to support emissions trading commenced in 2007–08.

the national Greenhouse and Energy Reporting System (nGERS) was implemented to maximise coverage of australia’s greenhouse gas emissions and energy while placing a minimal impost on small business.

the legislative framework for nGERS was established by the National Greenhouse and Energy Reporting Act 2007 (the nGER act), which was passed in September 2007. the national Greenhouse and Energy Reporting Regulations 2008 and the national Greenhouse and Energy Reporting (Measurement) Determination 2008, which support the act, were created in June 2008.

the COaG Engagement team provided policy and secretariat support for the COaG WGCCW focusing on: the harmonisation of feed-in tariff schemes; principles to assess the complementarity of climate change measures with the Carbon Pollution Reduction Scheme; measures to accelerate energy efficiency; adaptation initiatives; and developing the expanded national renewable energy target .

the WGCCW met four times in the period January to June 2008, addressing 29 substantive items on: energy efficiency; complementary measures; the Carbon Pollution Reduction Scheme; the renewable energy target; adaptation; and water. Recommendations arising from these initiatives will be considered by COaG.

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implementation of the a COaG process was established to progress the development of the expanded Renewable expanded Renewable Energy target. Design principles and issues Energy target were agreed. a Design Options Paper was developed and released for

public consultation.

accurate accounting and projection of australia’s greenhouse gas emissions level consistent with requirements under the united nations Framework Convention on Climate Change

the Online System for Comprehensive activity Reporting is being continually enhanced to meet the reporting requirements for nGERS and the Energy Efficiency Opportunities program.

training on the Online System for Comprehensive activity Reporting has been provided to existing and new users.

the national Greenhouse accounts series is published on the department’s website, submitted to the unFCCC and subject to international review. the review findings were published by the unFCCC.

nine reports on australia’s greenhouse gas emissions projections were published, including the Tracking to the Kyoto Target 2007 report and eight sectoral reports.

the projections showed australia was broadly on track to meet its kyoto target of 108 per cent. Tracking to Kyoto was extensively reported on release.


The National Greenhouse and Energy Reporting System The National Greenhouse and Energy Reporting System (NGERS) is a national system for corporate reporting of greenhouse gas emissions and energy production and consumption established by the department. The system was developed to meet a variety of objectives, including to:

• provide robust data to underpin the environmental and financial integrity of Australia’s proposed Carbon Pollution Reduction Scheme

• reduce the duplication of corporate greenhouse and energy reporting across State, Territory and Australian Government programs

• provide corporate level information to the public on the greenhouse and energy performance of Australian corporations.

The legislative framework for NGERS was established by the National Greenhouse and Energy Reporting Act 2007 (the NGER Act), which was passed in September 2007. The National Greenhouse and Energy Reporting Regulations 2008 and the National Greenhouse and Energy Reporting (Measurement) Determination 2008, which support the Act, were created in June 2008.

The first reporting year under the NGER Act began on 1 July 2008.

A number of tools were released in 2008 to assist Australian business to comply with the NGER Act:

• an Online Calculator, to assist corporations self-assess whether their corporate group or any of their facilities meets reporting thresholds under the NGER Act

• NGER Guidelines and NGER (Measurement) Technical Guidelines, to assist corporations understand their obligations under the NGER Act

• a Registration Application Tool, to assist corporations to register for reporting.

Extensive stakeholder engagement culminated in a reporting system that achieved a very high level of support by Australian business, governments and the public. This engagement will continue, to ensure that the legislation is practical, workable and meets government, business and other data users’ needs.

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Output 1.2: Adaptation to the impacts of climate change we cannot avoid The Adaptation and Land Management Division and Strategies and Coordination Division contribute to Output 1.2: Adaptation to the impacts of climate change we cannot avoid by:

• increasing understanding of the issue and the capacity of decision makers to plan for climate change impacts

• identifying those sectors and regions that are most vulnerable

• building partnerships with industry and between all levels of government to promote a nationally coordinated adaptation effort

• facilitating meetings of the COAG WGCCW to consider issues referred to it by the Adaptation Sub Group.


Regardless of national and international efforts to reduce greenhouse gas emissions, Australia will experience increasing changes to the climate in the coming decades due to the level of greenhouse gases already in the atmosphere and the addition of more gases in the future.

Some impacts from these changes are already unavoidable, and the longer action to reduce emissions is delayed, the more severe these unavoidable impacts are likely to become.

Adapting to the impacts of unavoidable climate change is critical to any effective climate change response and is one of the three pillars of the Australian Government’s climate change strategy.

Adaptation policy and coordination

The department has played a lead role in work to further elaborate the public policy approach to climate change adaptation and coordinates the approach to adaptation across Australian Government agencies. It contributed to the COAG WGCCW agenda on long-term national approaches to adaptation. The Adaptation Sub-Group met four times in the period January–June 2008 to consider a range of issues relating to national approaches to adaptation.

Whole-of-government engagement in 2007–08 included:

• establishment of a joint Stakeholder Advisory Group on adaptation with Commonwealth Scientific and Industrial Research Organisation (CSIRO)

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• advice to the Department of Agriculture, Fisheries and Forestry on development of the Australia’s Farming Future Program

• advice to the Great Barrier Reef Marine Park Authority on programs to manage the impacts of climate change on the Great Barrier Reef

• engagement of the Department of Infrastructure, Transport, Regional Development and Local Government, and Emergency Management Australia, on approaches to climate change adaptation for infrastructure and disaster management

• joint briefings with the Department of the Environment, Heritage, Water and the Arts to the Minister for Climate Change and Water on issues relating to water resources and climate change adaptation.

Enhanced understanding of climate change

The Australian Climate Change Science Program is supporting research into the nature, causes, timing and implications of climate change for Australia. The program helps to maintain Australia’s world-class modelling capacity, and its work is one of the main reasons Australia is recognised internationally for the quality of its climate change science.

The Australian Climate Change Science Program in collaboration with the CSIRO, the Bureau of Meteorology, the Australian Academy of Science and key Australian Universities continues to advance our understanding of the climate system and the processes that affect global and regional climate. Research highlights include the publication of updated national climate change projections in the Climate Change in Australia: Technical Report 2007 (www.csiro.au/resources/ps3j6.html); further development of the Australian Community Climate and Earth System Simulator; and improved understanding of oceanic warming and circulation.

The department is leading development of an Australian Climate Change Science Framework to set directions for climate change science over the next decade, following a review of the Australian Climate Change Science Program by Dr Susan Solomon (co-chair Intergovernmental Panel on Climate Change Working Group 1) and Professor Will Steffen (ANU).

Building adaptive capacity

In 2007–08, the department established the National Climate Change Adaptation Research Facility, hosted by Griffith University, to address key knowledge gaps constraining adaptation action. National Adaptation Research Plans for four priority themes (water resources and freshwater biodiversity, marine biodiversity and resources, human health, and disaster management and emergency services) are currently being developed. Adaptation Research Networks for priority themes are also being established to harness the breadth of sectoral expertise and institutions in climate change adaptation research.

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Architects, engineers, natural resource managers and planners have crucial roles in building Australia’s ability to adapt to a changing climate, in particular, in choosing adaptation strategies that reduce the vulnerability of our settlements and infrastructure, natural ecosystems and water resources. Currently these professional groups lack the knowledge and skills needed to address climate change risks. The department established the Climate Change Adaptation Skills for Professionals Program in 2007–08 and provided around $2 million in grants to 13 university and other training institutions for professionals in the built environment sector to incorporate climate change adaptation into their work practices.

The Australian Rainfall & Runoff Handbook is the primary source of technical information used to design infrastructure to withstand the impacts of extreme rainfall, flooding and storm surge. Work has commenced to update and revise this handbook in partnership with Engineers Australia. This update will incorporate new data and technical and scientific advances in hydrology engineering, and account for the effects of climate change on water resources, infrastructure planning, flood prediction and emergency management. The update will enable better management of risks from climate change in engineering design.

Reducing sectoral and regional vulnerability

Many parts of the coastal zone are likely to be highly vulnerable to the impacts of climate change and considerable progress has been made towards a ‘first pass’ National Coastal Vulnerability Assessment for the whole of Australia’s coastline. This assessment aims to provide a national picture of areas at risk from coastal erosion and inundation as a result of climate change, and identify where infrastructure, settlements and coastal ecosystems may be at risk.

Undertaking this assessment has required the development of underpinning national capability in a couple of areas. The Smartline project, involving for the first time consistent and detailed national mapping of the geomorphology of the coastal zone, is almost complete. The department has also invested in digital elevation modelling around the whole coastline to enable inundation assessment, and is supporting the work of the Australia and New Zealand Land Information Council (ANZLIC) in developing a National Elevation Data Framework. The final report of the ‘first pass’ National Coastal Vulnerability Assessment will be completed by early 2009.

Substantial progress was also made in understanding the vulnerability of Australia’s biodiversity to climate change and identifying how we can reduce that vulnerability. A number of reports were released or substantially progressed to further our understanding of climate change implications for the National Reserve System, including specific focus on protected areas and world heritage values, and on implications for fisheries and fire. Findings from these reports have been considered in a more broad ranging, strategic assessment of the vulnerability of Australia’s biodiversity to climate change.

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Promoting adaptation partnerships

Local government will be at the forefront of adaptation to climate change in many areas. The department provided $1.55 million to assist councils to learn more about the local impacts of climate change and plan ahead. Thirty-three local councils have been awarded grants of up to $50,000 to implement a risk management process to identify the impacts of climate change on council operations. The risk management process, which will involve stakeholder consultation, will include analysis of the initial context, risk evaluation workshops, and the development of adaptation action plans.

The department contributed $1.6 million towards five regional case studies which aim to generate information about the potential biophysical, social and economic impacts of climate change for a representative selection of settlements. These projects involve a variety of local stakeholders, including local government, and cover Western Port in Victoria, Sydney Coastal Councils, Clarence Council in Tasmania, the Gold Coast, and a broader project including Bendigo, Cooma, Queanbeyan/ACT and Darwin.




Development and advancement of a comprehensive climate change policy on adaptation

a proposed national adaptation action plan is being developed by the COaG adaptation Sub Group and will be submitted for COaG consideration.

arrangements established for a whole-of-government focus on adaptation across portfolios of the australian Government.

accelerated implementation of the national adaptation framework

the department drove implementation of key parts of the COaG Framework for which it has responsibility.

the Adaptation Research Facility was established at Griffith university. Research plans and networks are being established in the areas of terrestrial biodiversity; primary industries; water resources and freshwater biodiversity; marine biodiversity and resources; human health; settlements and infrastructure; disaster management and emergency services; and social, economic and institutional dimensions.

Integrated regional vulnerability assessments: assessments underway in Murray-Darling Basin, South East Queensland and in the indigenous communities of the tropical north.

Coastal regions: ‘First pass’ national vulnerability assessment is well advanced. an improved digital elevation model is being developed.

Biodiversity: assessment of the vulnerability of australia’s biodiversity underway.

Settlements, infrastructure and planning: Revision of the australian Rainfall and Run-Off handbook has commenced.

Facilitation of COaG Working Group considerations of adaptation issues.

Climate change science informing decision making

key documents provided up-to-date sectoral and national information about climate change impacts and adaptation for the first time, meeting the needs of stakeholders and the public.

the Government-sponsored Greenhouse 2007 conference received much media attention. Several media releases were distributed, relating to topics such as ocean fertilisation, biofuels and new climate models and projections.

Climate Change in Australia products, which outlined updated future projections, included a technical report outlining the state of the science, a brochure on likely impacts of climate change, and a comprehensive website featuring thousands of maps showing changes, state-by-state, for a number of different climate variables.

there was extensive media coverage of the new climate projections. in the first week following release, there were more than 100 newspaper articles including a number of front-page stories, well over 40 tV items, and more than 340 radio mentions.

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Adaptation Research Facility Australia is unable to generate the new information decision-makers need to manage the impacts of climate change because its research effort is fragmented and not focused on national priorities. The National Climate Change Adaptation Research Facility was established at Griffith University in early 2008 to harness Australia’s research capacity and ensure it generates information that is useful for adaptation planning.

The facility will lead and coordinate the research community and engage with Australia’s best researchers regardless of their institutional home. It will identify national research priorities, coordinate researchers to address these priorities, synthesise existing and emerging research to distil policy-relevant information, and conduct integrative research on adaptation.

Up to eight adaptation research networks are being established to assist with these tasks. A range of institutions will host the networks, which will be part of the facility.

Professor Jean Palutikoff was appointed as the first director of the facility. Professor Palutikoff has a strong international reputation and was previously the head of the Technical Support Unit for Intergovernmental Panel on Climate Change Working Group 2 (Impacts and Adaptation).

The facility is an innovative approach to building Australia’s adaptation research capacity and involves a close partnership between the department and the research community.

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Output 1.3: Helping to shape a global solution The International Division, Adaptation and Land Management Division, and Strategies and Coordination Division contribute to Output 1.3: Helping to shape a global solution by:

• supporting the participation by the Government, including the Prime Minister and the Minister for Climate Change and Water, in a range of high-level international climate change forums

• supporting other countries to adapt to climate change and to develop and deploy low emission technologies

• providing high quality policy advice to the government regarding developments in the international climate change arena

• managing a number of practical climate change partnerships, aimed at building the capacity of key countries, in particular developing countries in our region, to respond effectively to climate change

• reporting to the UNFCCC on domestic climate change actions that demonstrate Australia’s adherence to expectations of signatories to the UNFCCC.


Development of a new, effective international climate change agreement will require the participation of, and agreement by, a majority of countries including the major greenhouse gas emitters. As any single country can not independently deliver such an outcome, regular engagement and frank dialogue with key countries is critical for driving progress in the international climate change negotiations.

International dialogue

Australia has been an active and influential participant in a range of high-level climate change forums, both within and outside of the UN climate change negotiations. The Prime Minister and senior Government ministers including the Minister for Climate Change and Water have regularly used opportunities with counterparts to outline Australia’s expectations for a post-2012 international outcome, and to promote an understanding and acceptance of Australia’s position and circumstances.

Following the launch of the Bali Roadmap, 2008 has seen an increasing number of high-level climate change meetings. Australia—represented by the Prime Minister, key ministers and senior departmental officials—continues to actively participate in these important forums, which aim to accelerate progress in the UN negotiations towards agreeing a comprehensive global climate change outcome.

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Over the past year, the department has supported Australian engagement in a range of international climate change policy forums and cooperative initiatives including:

• Asia-Pacific Partnership on Clean Development and Climate

• ministerial-level meetings and a Leaders’ Summit of the Major Economies Meeting on Energy Security and Climate Change

• ‘G8 Plus’ meetings of Environment Ministers

• Intergovernmental Panel on Climate Change.

Officials also played a key role in securing agreement on the climate change declaration from the Asia-Pacific Economic Cooperation (APEC) Summit, hosted by Australia in September 2007.

In recognition of the important role of senior departmental officials in the international negotiations, in particular in representing the Minister for Climate Change and Water at the increasing number of key meetings, in May 2008 the Government strengthened its international engagement by appointing Deputy Secretary Howard Bamsey as Special Envoy on Climate Change, and First Assistant Secretary Jan Adams as Ambassador for Climate Change.

Cooperative partnerships

Australia plays a leading role in shaping international efforts by drawing on its strong domestic climate change response and assisting other countries to undertake meaningful mitigation and adaptation action. In large part, countries will be more inclined to sign up to a comprehensive international agreement if they are confident in their ability to meet their commitments as part of a global solution. A key function of the International Division is to implement programs to assist other countries, in particular developing countries, to measure and manage their emissions, to reduce emissions from key sectors and to adapt to the unavoidable impacts of climate change. Cooperation includes support to reduce emissions from deforestation and forest degradation in developing countries, to develop and deploy renewable energy and clean coal technologies, and to integrate climate change considerations into national development plans.

The Government has formed a partnership with the Clinton Climate Initiative to develop an effective and efficient system for forest carbon measurement. This initiative will see the National Carbon Accounting System adopted as a platform for the rolling out of a global forest carbon accounting system.

The key objective of the International Division is to continue to engage actively in all relevant forums to agree a comprehensive post-2012 international climate change outcome that is effective and fair. While the focus of international efforts is on reaching agreement by December 2009, delivering on this outcome will require sustained and enhanced international effort over many decades.

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Support for global adaptation solutions

In the May budget the Government announced it will invest $150 million over three years, with $35 million in 2008–09, to meet high priority climate adaptation needs in vulnerable countries in our region. The primary geographic emphasis of the program will be Australia’s neighbouring island countries, but targeted policy and technical assistance will also be available for other countries in the region. The initiative will be jointly managed by Department of Climate Change and AusAID. Consultations with Pacific regional organisations and development partners began in June 2008.

UN Framework Convention on Climate Change

The UNFCCC Reviews of Australia’s 2007 Greenhouse Inventory and of Australia’s 4th National Communication on Australia’s domestic climate change actions, conducted in April 2008, demonstrated the comprehensive and transparent approach of our reporting to the UNFCCC.

Officers from the International Division also regularly represented Australia in official-level international meetings, including the UNFCCC and Kyoto Protocol negotiations.

3




australia is an active participant in international climate change negotiations and promotes acceptance of australian perspectives

australian climate change policy contributes to the global climate change regime

australia’s influence in the un climate change negotiations was significantly enhanced in December 2007, following our ratification of the kyoto Protocol.

Participated in a significant number of international climate change forums throughout 2007–08 including all four un climate change negotiations. Co-chaired important negotiations at these meetings including the dialogue which launched two-year negotiations on the development of a new, comprehensive international agreement.

Continued to build support for australia’s position on a range of key issues, including the Government’s policy platform that a new international agreement must include action by all major emitters.

Supported the Prime Minister and Minister’s participation in a leaders’ Summit and in three ministerial meetings under the Major Economies Meetings on Energy Security and Climate Change, which collectively have added momentum for the international negotiations.

Coordinated the australian Government’s review of the Fourth assessment Report of the intergovernmental Panel on Climate Change and actively participated in negotiations which finalised and released this significant report.

3

the department manages a number of international partnerships with key countries, which aim to develop and implement a range of climate change policy and technology initiatives.

the International Forest Carbon Initiative (in concert with ausaiD) aims to ensure that incentives to reduce emissions from deforestation and forest degradation in developing countries are included in a future international climate change agreement.

Forest Carbon Partnership agreements were established with indonesia and Papua new Guinea to assist build capacity and undertake demonstration activities to support participation in future international carbon markets. these practical demonstrations are also informing international negotiations to include action on reducing emissions from deforestation under the unFCCC and working to improve accounting for emissions from deforestation and forest degradation in developing countries.

Supported high level bilateral visits by the Prime Minister and Minister to China and Japan, and the development of a new bilateral partnership during the Prime Minister’s visit to the united kingdom. a Joint Statement on closer cooperation on climate change with China, released on 10 april 2008, commits to an annual Ministerial-level Dialogue on Climate Change, expanded practical cooperation and working more closely within the unFCCC. Existing climate change partnerships with China, South africa, the united States, new Zealand, Japan, and the European union were advanced. More than 70 projects are underway through these partnerships providing a positive framework for high level engagement on policy issues and supporting practical collaborative activities with key developing countries to help combat climate change.


The Bali outcome A major achievement, immediately following the federal election and the creation of the department, was Australia’s participation in the UN Climate Change Conference in Bali in December 2007.

The Australian delegation played an active and constructive role in securing the breakthrough ‘Bali Roadmap’—the agreement by developing and developed nations, including the United States, on a mandate to discuss future mitigation actions by all countries. Senior department officials directly supported the Minister for Climate Change and Water, Senator the Hon Penny Wong, as she assumed the crucial role of chairing the ministerial negotiations on the politically difficult issues under this agreement.

The Bali Roadmap charts the course for the UN negotiations on a post-2012 international climate change agreement, including consideration of a long-term global emissions reduction goal—an Australian priority—as well as the important issues of adaptation to climate change impacts, reducing emissions from deforestation, the development and deployment of clean technologies, and enhancing finance and investment to support an effective global climate change response. Negotiations under the Bali Roadmap, which have continued throughout 2008 and are set to intensify in the lead up to their scheduled conclusion in Copenhagen in December 2009, remain a key priority for the department.

In addition to representing Australia in a range of negotiations at this significant meeting, the department—assisted by the Australian missions in Jakarta and Denpasar—provided high-level support for the Prime Minister and five senior ministers, including the Minister for Climate Change and Water, who participated in the Conference and in a range of ministerial-level functions and bilateral meetings. Given the significant public interest in the Bali Conference, the delegation also maintained regular communication with a large and diverse group of interested stakeholders both at the meeting and in Australia.

3

Prime Minister Kevin Rudd presents the signed Kyoto Protocol to UN Secretary-General Ban Ki-moon


4 Section 4: Management and accountability

Corporate governance 47 Governance committees and their roles 48

Corporate planning 50

Ethical standards and accountability 50

External scrutiny 50 Fraud prevention and control 51

Ombudsman comments, court decisions and administrative appeals tribunal decisions 51

Management of human resources 51 Workforce planning 52

Recruitment 52

Graduate development program 52

Staffing information 53

Senior executive service—remuneration and performance appraisal 54

Remuneration—non-SES employees 54

Access and equity 56

4

Feature article: Setting up a new department 57

Asset management 58

Purchasing and procurement 58

Consultancies 59

Commonwealth Disability Strategy 59

Feature article: Staff awards 60


Corporate governance The majority of staff and functions transferred under the machinery-of-government changes were from the then Department of Environment and Water Resources. Since its establishment the department has received corporate support from the Department of Environment, Water, Heritage and the Arts (DEWHA) and has operated under DEWHA’s policies and practices.

A priority for the department has been to develop agency-specific policies and procedures. Key governance mechanisms and policies developed by the department and implemented in 2007–08 included:

• governance policies including the department’s Chief Executive Instructions, financial and human resource delegations, conflict of interest protocols and SES declaration of interests, procedures for determining a breach of Code of Conduct and international and domestic travel protocols. All staff were advised of the new Lobbying Code of conduct.

• governance committees including the Executive Board, the Procurement Review Board and the Audit, Accommodation and Staff Consultative Committees. The Occupational Health and Safety committee and ICT Steering Committees will be established in the first quarter of 2008–09.

The department’s governance and risk management frameworks are currently being formalised and will be provided to the Executive Board for endorsement in October 2008. The aim of the department’s governance framework is to encourage efficient, effective and ethical use of resources through:

• clearly established role accountabilities, including clear delegations of authority and responsibilities

• monitoring resource use, based on budgeting, financial accounting, audit, fraud control, risk management and other reporting systems

• informing and educating employees on their roles and responsibilities

• identifying risks and appropriate risk management strategies.

4

Section 4: Management and accountability 47

Governance committees and their roles

The Executive Board

The Executive Board is the key decision-making body and is responsible for high level strategic direction and operational issues including: corporate policy and program development; corporate governance; resource management, development and planning. The Executive Board has met monthly since it was established in December 2007.

The Executive Board comprises the Secretary, Dr Martin Parkinson, the two Deputy Secretaries, Howard Bamsay and Blair Comley and the Assistant Secretary and Chief Financial Officer, Robert Twomey of Corporate Services Branch.

Audit Committee

The Audit Committee was formed in January 2008. The Audit Committee provides independent assurance and assistance to the Secretary (and the Executive Board) on the department’s risk, control and compliance framework, and its external accountability responsibilities. The Audit Committee meets quarterly.

The Audit Committee comprises Blair Comley, Deputy Secretary and Chair, Ian Carruthers, First Assistant Secretary, Adaptation and Land Management Division. Ex officio members of the Audit Committee are Robert Twomey, Assistant Secretary and Chief Financial Officer, and Rebecca Reilly, Executive Director, Australian National Audit Office. The independent member of the Audit Committee is Will Laurie. Will Laurie has 4 an economics background and is a former managing partner at PricewaterhouseCoopers Canberra.


Figure 4: Department of Climate Change Governance Committees

Secretary Dr Martin Parkinson

audit Committee Executive Board

Staff Consultative Committee

accommodation Committee

Occupational Health and Safety Committee

iCt Steering Committee

Procurement Review Board

Other governance committees and their roles

• The Staff Consultative Committee improves mutual understanding and facilitates the mutual exchange of information relating to workplace matters aimed at raising issues with the Executive Board in a mutually acceptable manner.

• The Accommodation Committee oversights and manages the department’s accommodation needs and provides strategic advice and direction to the Executive Board on the department’s accommodation requirements.

• The Procurement Review Board oversights the department’s purchasing and procurement activities and monitors the department’s compliance against the Commonwealth Procurement Guidelines and the Financial Management and Accountability Act 1997.

• The ICT Steering Committee oversights the department’s information, communication and technology (ICT) investment decisions and strategic direction. The committee is responsible for defining the department’s technology processes and practices and prioritising and approving ICT proposals.

• The Occupational Health and Safety Committee operates in accordance with section 34(1) of the Occupational Health and Safety Act 1991 and aims to promote an environment in which the employer and employees work cooperatively to ensure the health and safety of employees at work. The Health and Safety Management Arrangements will be implemented in September 2008 and will provide the framework for Occupational Health and Safety in the department.

4


Corporate planning

The department’s internal planning processes include the preparation of a Corporate Plan which sets out the department’s roles and responsibilities in relation to the department’s outcome and outputs. Divisions and Corporate Services Branch develop business plans which identify key priorities, performance information, risks, relationships and financial information. The department’s plans will be reviewed annually.

The department meets its external reporting responsibilities through its portfolio budget statements and annual report.

Ethical standards and accountability

The department’s employees comply with the Australian Public Service Values and Code of Conduct. In 2007–08 the department introduced a number of measures to ensure that high ethical standards are maintained by employees. The measures include:

• development of procedures to determine a breach of the Code of Conduct

• circulation of the APS Code of Conduct and Values to all staff through the department’s orientation kit

• raised staff awareness of the Lobbying Code of Conduct prior to the code’s introduction in July 2008

• development of the department’s Chief Executive Instructions which provide the basis for effective, efficient, ethical and accountable use and management of Commonwealth

4

money and property.

Guidance is available to staff on the department’s Intranet.

External scrutiny Audit

There have been no external performance reviews of the department’s operations since its establishment on 3 December 2007.

The Audit Committee’s work in 2008–09 includes over sighting the department’s risks; reviewing the financial statements; monitoring the audit program and scrutinising internal and external audit recommendations; as well as relevant Australian National Audit Office (ANAO) reviews. The Audit Committee is in the process of engaging an internal audit service provider to develop the department’s internal audit program.


Fraud prevention and control

The department operates under DEWHA’s Fraud and Risk Management policies and practices. There were no instances of fraud reported in the department since its establishment on 3 December 2007. Work has commenced on the development of the department’s own Fraud Control Plan which is expected to be finalised in the first quarter of 2008–09. The plan will be developed in accordance with the Commonwealth Fraud Control Guidelines issued under regulation 19 of the Financial Management and Accountability Act 1997.

Ombudsman comments, court decisions and administrative appeals tribunal decisions

There were no proceedings against the department in the Administrative Appeals Tribunal and no investigations by, or formal reports from, the Commonwealth Ombudsman since the establishment of the department.

In 2007, Peter James Spencer commenced proceedings in the Federal Court against the Commonwealth of Australia (Peter James Spencer v The Commonwealth of Australia ACD 24 of 2007). Mr Spencer claims that the Commonwealth has, through the promotion, encouragement and funding of State vegetation laws, acquired the carbon stored in trees and pastures on his land. Mr Spencer is claiming compensation in the amount of $17.78 million. The Federal Court recently dismissed the proceedings (28 August 2008) on the basis that the Commonwealth had no case to answer. The court has since granted Mr Spencer leave to appeal this decision. A hearing date has yet to be allocated.

Management of human resources Since its creation the department has been developing a Human Resource Management framework designed to enable business outcomes.

As the majority of staff transferred under section 72 of the Public Service Act 1999 were from DEWHA, many of the existing Human Resource policies and frameworks from this department have been utilised within the Department of Climate Change.

All policies are being reviewed in order to ensure they meet the specific requirements of the department.

Employees are currently covered by the following industrial instruments:

• Department of Environment and Heritage Collective Agreement 2006–2009

• Department of Prime Minster and Cabinet Collective Agreement 2007–2010

• Australian Workplace Agreements

• Determinations made under section 24 of the Public Service Act 1999.

4


The department is currently in the process of negotiating a Collective Agreement. This agreement will replace existing arrangements for applicable staff.

Workforce planning

The department has commenced work on establishing a workforce plan to identify skills, capability and knowledge required to meet current and emerging business requirements. The plan will set the foundation for the department’s strategies on recruitment, retention, performance management and development of future capabilities.

Recruitment

The workforce of the future will need to be innovative and able to engage with a range of stakeholders including government, industry and the broader community.

With the creation of the department the primary focus has been on the recruitment of sufficient suitably skilled staff to deliver key initiatives. It is inevitable that the creation of the department will result, over time, in the departure of some staff, particularly as a result of the dislocation associated with the creation of new systems and procedures and the changes in accommodation. The department is taking active efforts to manage this— the annualised separation rate from March to June 2008 was 8.54 per cent. This figure includes non-ongoing employees and those who transferred to other Australian Public Service agencies.

Graduate development program

The objective of the department’s graduate development program is to be both challenging and rewarding—developing individuals and providing full integration for the participants into the department. It is an important element of the department’s workforce planning. The department will recruit high quality graduates from a variety of academic disciplines and the program will enable the department to increase the diversity and depth of talent in its workforce.

The graduate development program will provide participants with professional development throughout the graduate year including a learning and development program which includes a mix of on-the-job experiences in diverse areas of the department (rotations), mentoring and core training programs in order to provide accelerated learning for graduates and equip them with the skills and knowledge they will need to make a meaningful contribution to the department and the Australia Public Service.

In 2008, the department drew from the DEWHA Graduate Program and transferred 10 graduates to undertake specific rotations within the department. The department has commenced recruitment for the 2009 Department of Climate Change graduate program, where it is looking to expand the program to around 15 graduates.

4


Staffing information

Staffing numbers have increased from one on 3 December 2007 to a total of 246 as at 30 June 2008, with an additional 27 secondees. A mixture of ongoing and non-ongoing employees, secondees and contractors contribute to the delivery of organisational objectives.

taBlE 2: OPERatiVE anD PaiD inOPERatiVE StaFF By ClaSSiFiCatiOn anD GEnDER (aS at 30 JunE 2008)

Ongoing non-ongoing

Full-time Part-time Full-time Part-time Casual

Classification Male Female Male Female Male Female Male Female Male Female total

APS 3 1 – – – – – – – – – 1

APS4 – 8 – – – 2 – – – – 10

APS5 6 17 1 2 2 5 – – – – 33

PAO1 – 1 – – – – – – – – 1

APS6 20 26 1 2 3 1 – 1 – – 54

PAO2 – 2 – – – – – – – – 2

EL1 27 34 3 9 1 5 – 1 – – 80

RS1 1 – – – – – – – – – 1

EL2 25 9 1 1 – 1 2 – – – 39

PAO3 – 2 – 1 – – – – – – 3

SPAO2 1 1 – – – – – – – – 2

SPRS 1 – – – – – – – – – 1

SES Band 1 3 6 – – – 1 1 – – – 11

SES Band 2 2 1 – – 1 – – – – – 4

SES Band 3 2 – – – 1 – – – – – 3

Secretary 1 – – – – – – – – – 1

Total 90 107 6 15 8 15 3 2 – – 246

4

note: this table does not include employees in the department on secondment. table 2 shows actual positions.


Senior executive service—remuneration and performance appraisal

The department’s Senior Executive Service (SES) employees are covered under both Australian Workplace Agreement (AWA) and individual determinations made under section 24 of the Public Service Act 1999. All AWAs are preserved entitlements in accordance with the machinery-of-government provisions at section 72 of the Public Service Act 1999. Work has commenced on the establishment of the department’s remuneration framework for all SES employees. Each AWA will be dealt with on a case-by-case basis.

Eleven SES employees were eligible for performance pay. The assessment is based on the Australian Public Service Commissions Senior Executive Leadership Capability Framework. No performance pay was paid by the department during the reporting period.

See Table 3 for details of senior executive service salary scales. Additional information on remuneration and performance pay is set out in Section 5: Note 12: Senior executive remuneration in the Financial Statements.

taBlE 3: SalaRy SCalES—SES

Classification

July 2007 to June 2008

Minimum

$

Maximum

$ 4

SES Band 1 124,200 143,000

SES Band 2 154,500 177,700

SES Band 3 192,000 225,200

Remuneration—non‑SES employees

The Department of Environment and Heritage Collective Agreement 2006–2009 covered a majority of staff originally transferred to the department and has been used subsequently to determine the salaries paid to non-SES employees.

The following rates applied to the department from 3 December 2007 to 30 June 2008.


taBlE 4: WORkPlaCE aGREEMEnt SalaRy SCalES—nOn SES

Classification

as at 1 august 2007

Minimum

$

Maximum

$

APS1 35,182 39,531

APS2 41,902 44,417

APS3 45,902 50,156

APS4 51,664 54,810

APS5 56,455 59,890

PAO1 51,664 59,890

APS6 61,688 69,795

PAO2 65,445 72,099

EL1 72,099 84,158

RS 1 61,688 84,158

EL2 87,701 102,299

SLO1 75,868 93,618

PAO3 79,548 99,319

SPAO2 108,532 108,532

SPRS 129,483 141,491

4

taBlE 5: aPS6, El1 anD El2 aDDitiOnal Pay POintS

Classification

Staff receiving additional pay point

2007–08

Maximum additional pay point

2007–08

$

APS6 5 83,120

EL1 13 92,855

EL2 12 140,000

Total 30

As of 30 June 2008 there were 58 non-SES staff on Australian Workplace Agreements. These are preserved conditions under the machinery-of-government provisions specified at section 72 of the Public Service Act 1999. Each agreement will be dealt with on a case-by-case basis within a defined remuneration framework currently being developed.


Access and equity

Since its establishment the department has operated under DEWHA’s workplace diversity strategy and policies.

The department is currently developing its own Workplace Diversity and Disability Strategy and an Access and Equity Strategy. These documents will be finalised during 2008–09.

taBlE 6: OPERatiVE anD PaiD inOPERatiVE StaFF By EEO taRGEt GROuP

Classification Female ESl atSi Disability

APS3 – – – –

APS4 10 – – –

APS5 24 – – –

PAO1 1 – – –

APS6 30 – 1 –

PAO2 2 – – –

EL1 49 – 1 2

RS 1 – – – –

EL2 11 – – –

PAO3 3 – – –

SPAO2 1 – – –

SPRS – – – –

SES Band 1 7 – – –

SES Band 2 1 – – –

Total 139 0 2 2

4


Setting up a new department The department was established on 3 December 2007 through the machinery-of-government changes. The Secretary, Dr Martin Parkinson was the department’s first permanent employee. In the early months staff worked out of their former departments — Department of Environment, Water, Heritage and the Arts (DEWHA), the Department of Prime Minister and Cabinet (PM&C), and the Department of Foreign Affairs and Trade (DFAT) — until the formal transfer of employees took effect in late December 2007.

Establishing the new department continues to provide many challenges for staff at all levels. To accommodate the newly created department, DEWHA allowed the Department of Climate Change to take over its lease at 2 Constitution Avenue (2CA), Canberra City. In February 2008 employees working from DEWHA and PM&C moved into 2CA.

The 2CA building is over 20 years old and requires a significant refurbishment for it to meet current standards for Australian Government buildings. The long-term plan is for 2CA to become the permanent home for the department. In the interim the department took over a short term lease at Computer Associates House, 11 National Circuit in Barton to facilitate refurbishment works and to provide accommodation for the remaining employees moving from DEWHA and DFAT. The department aims to have all staff co-located in 2CA by the end of 2009.

While the majority of functions were transferred from other agencies, the department’s central corporate governance function needed to be built from the ground up. As a result the department was initially completely reliant on the DEWHA for day-to-day support on financial, management, information technology and other corporate services.

Although the department is well on the way to establishing its own corporate governance functions, systems and processes to enable it to become a fully functioning department of state, there are many challenges ahead. The highest corporate priorities are to co-locate employees at 2CA, finalise work the department’s corporate management frameworks and establish a Protected level IT environment to allow staff to operate effectively in a secure environment.

4


Asset management The department manages both current and non-current assets in accordance with guidelines set out in the Chief Executive Instructions and relevant accounting standards. In March 2008 the department completed a stocktake of its assets, and in June 2008 conducted a valuation of its assets. The department intends to fully revalue its assets every three years while conducting desktop reviews in the intervening years, in order to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date.

Purchasing and procurement The department’s purchasing and procurement activities are undertaken in accordance with the Commonwealth Procurement Guidelines. Under the guidelines, the core principle underpinning procurement is value for money. The department advertises tender opportunities above $80,000 on the AusTender website.

The department implemented its Procurement Framework in February 2008. The framework sets out the accountabilities and responsibilities for staff and financial delegates and includes policies, procedures and templates for purchasing and procurement. The department’s procurement framework is supported by the Chief Executive Instructions.

A Procurement Review Board was formed in January 2008 to oversight procurement activities and ensure the department complies with the Commonwealth Procurement Guidelines. The Procurement Review Board is supported by the Legal and Governance Section who have responsibility for monitoring compliance and providing advice to staff on procurement activities.

Staff have access to the procurement policies, procedures and templates through the department’s Intranet. The department will release its first annual procurement plan in the first quarter of 2008–09.

4


Consultancies The department procures consultancy services in accordance with the Commonwealth Procurement Guidelines and the department’s procurement framework.

During 2007–08, 57 new consultancy contracts were entered into involving total actual expenditure of $3,179,720.09. In addition, 20 ongoing consultancy contracts were active, involving total actual expenditure of $1,001,731.95. These amounts include GST.

The table summarising the new consultancy contracts let in 2007–08 valued at $10,000 or more is published on the department’s website at www.climatechange.gov.au/annualreport.

There were no standing offers or contracts in excess of $10,000 (inclusive of GST) exempted by the Chief Executive from being published in the Purchasing and Disposal Gazette.

During 2007–08, all contracts negotiated above $100,000 provided for Auditor-General access to the contractor’s premises.

Commonwealth Disability Strategy The Commonwealth Disability Strategy was introduced in 1994 as a framework to assist agencies to meet their obligations under the Commonwealth Disability Discrimination Act 1992. The framework aims to ensure the inclusion and participation by people with disability in Commonwealth Government policies, programs and services.

The strategy includes a performance reporting framework built around the five key roles of government: policy adviser, regulator, purchaser, provider and employer. From 1 July 2007 the employer role is reported through the State of the Service agency survey conducted by the Australian Public Service Commission. The department contributed to the State of the Service for the first time in July 2008.

The department is developing a Disability Action Plan to ensure it can meet current and future reporting requirements.

In December 2007, the department established an Internet site that provides information to the community and industry about current initiatives, programs and general information on climate change. Unfortunately, the release of the Green Paper on the Internet failed to satisfy the department’s own ambitions in terms of accessibility for people with disabilities. This has now been rectified and every effort will be made to ensure the Government’s forthcoming White Paper is accessible to people with disabilities.

4


4

Staff awards Awards are presented to individuals and teams in recognition of outstanding contributions to the work of the department. The inaugural award recipients for their outstanding contribution to the work of the department between January and June 2008 were:

Individual awards Andrew Bozin for outstanding contribution on climate change policy issues in the Pacific.

Lisa Damiani for exceptional effort and service to others in establishing the suite of new adaptation programs.

Faye Gillin for outstanding contribution to the department through the establishment of administrative systems across two divisions.

Chris Mill for enthusiastic and dedicated work in translating the complex legal and technical detail of the National Greenhouse and Energy Reporting System (NGERS) Act into a realistic and practical framework compatible with the Online System for Comprehensive Activity Reporting (OSCAR).

Tharman Saverimuttu for exceptional efforts in advancing the development of networks under the Adaptation Research Facility which bring together expertise across Australia.

Ruth Smith for outstanding efforts on legislative drafting for the proposed Carbon Pollution Reduction Scheme.

David Walker for outstanding efforts in establishing Minister Wong’s Office and his contribution to the Wilkins Review.

Shannon White for outstanding efforts on climate change, in particular her services to international multilateral negotiations.

Team awards Communications and Stakeholder Relations Team for their outstanding work in developing and delivering the Climate Change Household Action Campaign and providing support for the Carbon Pollution Reduction Scheme consultation process.

Corporate Services Branch in recognition of their outstanding contribution to the successful implementation of internal mechanisms and processes for effective management of our newly created department.

Online Reporting Team in recognition of the outstanding contribution of the team to the successful delivery of OSCAR NGERS Enhancement Stage One.


9,49

5

6,10

6

15,6

01-

17,0

95

Page 67

2008Notes

$’000

5A

3765B

33,31733,6936A/6E

8056B/6E

47 6C/6F

6,0926D

2167,160

40,853

7A

9,3757B

6017C

8,53518,5118A

5,1068B

1415,247

23,75817,095

15,6016

1,48817,095

17,09533,6937,160

21,7941,964

es.

Page 66

,488

2008Notes $’000

9,29714,402

-23,699

10,81510,781

350

-21,946

10 1,753

-

-

1,377

1,377ities

(1,377)Net increase (decrease) in cash held

376

Cash and cash equivalents at the beginning of the reporting period

-

Cash and cash equivalents at the end of the reporting period5A

376

The above statement should be read in conjunction with the accompanying notes.

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BALANCE SHEETas at 30 June 2008

ASSETSFinancial asseCash and cashTrade aTotalNon-

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Total equityCurrent assetsNon-current assetsCurrent liabilities

Non-current liabilitiesThe above statement should be read

INCOME STATEMENT

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Revenue fro

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Total revenue

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CASH FLOW STATEMENTfor the period ended 30 June 2008

OPERATING ACTIVITIESCash receivedGoods and seAppropriationsNet GST receivedTotal cash receivedCash usedEmployeesSuppliersGrantsOther cash usedTotal cash usedNet cash flows from (used by) operating activities

INVESTING ACTIVITIESCash receivedProceeds from sales of property, plant and equipmentTotal cash received

Cash usedPurchase of property, plant and equipmentTotal cash used

ctiv

Section 5: Financial statements

5

5

How the department is funded 63

Departmental finances 63

Administered finances 63

Income statement 67

Balance sheet 68

Statement of changes in equity 69

Cash flow statement 70

Schedule of commitments 71

Schedule of contingencies 72

Schedule of administered items 73

Notes to and forming part of the Financial Statements 76


How the department is funded The Department of Climate Change receives two types of funding: departmental and administered. Departmental resources are used to produce goods and services (outputs) at a quantity, quality and price endorsed by government. The department also administers payments on behalf of government, which controls how we use them and requires us to account for them separately.

The department’s outputs and administered items for 2007–08 are detailed in Note 23. A shaded background indicates that information relates to an administered resource, both in the table and in the formal financial statements that follow it.

Departmental finances The department was created as part of the machinery-of-government changes announced by the Prime Minister on 3 December 2007. Relevant functions and resources were transferred to the department from the former Department of the Environment and Water Resources, the Department of the Prime Minister and Cabinet and the Department of Foreign Affairs and Trade. As part of the transfer under Section 32 of the Financial Management and Accountability (FMA) Act 1997 the department received $28.600 million to support these functions.

The department received $7.947 million from government through Additional Estimates and Supplementary Additional Estimates processes during the year due to government decisions, for:

• the design of an emissions trading scheme and climate change policy coordination

• support of the Commonwealth Government’s contribution to the Garnaut Climate Change Review.

We finished the year with an operating surplus of $1.488 million, which was greater than the forecast in our 2007–08 Portfolio Additional Estimates Statements.

Significant items in the financial statements are:

• total income of $33.204 million, mostly reflecting revenue from government

• expenses of $31.716 million—the majority of expenses reflect payments to suppliers ($18.237 million) and employees ($12.093 million)

• assets of $40.853 million—the single largest asset is appropriation receivable from government ($31.640 million)

• liabilities of $23.758 million—the largest single liability was payments due to suppliers ($9.375 million) followed by unearned revenue of ($8.535 million) and employee provisions ($5.106 million).

Administered finances As part of the transfer under Section 32 of the Financial Management and Accountability (FMA) Act 1997 the department received $19.307 million for grants and suppliers administered on behalf of the Australian Government.

Actual expenses of $14.658 million were incurred. Details of expenses by program are provided in Table 1: Financial and staffing resources summary in Section 3 of the report.

Total liabilities were $5.338 million reflecting payments due to suppliers and grants recipients.

5

Section 5: Financial statements 63

STATEMENT BY THE CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER

In our opinion, the attached financial statements for the year ended 30 June 2008 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended.

5 Signed:Signed:

Dr Martin Parkinson Mr Robert Twomey Chief Executive Chief Financial Officer 30 September 2008 30 September 2008


5


INCOME STATEMENT for the period ended 30 June 2008

2008 Notes $’000

INCOME Revenue Revenue from government 3A 31,057 Sale of goods and rendering of services 3B 173 Total revenue 31,230

Gains Other gains 3C 1,974 Total gains 1,974 Total income 33,204

EXPENSES Employee benefits 4A 12,093 Suppliers 4B 18,237 Grants 4C 952 Depreciation and amortisation 4D 430 Write-down and impairment of assets 4E 4 Total expenses 31,716

Surplus (Deficit) 1,488

Surplus (Deficit) attributable to the Australian Government 1,488


5


BALANCE SHEET as at 30 June 2008

2008 Notes $’000

ASSETS Financial assets Cash and cash equivalents 5A 376 Trade and other receivables 5B 33,317

Total financial assets 33,693 Non-financial assets Land and buildings 6A/6E 805 Infrastructure, plant and equipment 6B/6E 47 Intangibles 6C/6F 6,092 Other non-financial assets 6D 216

Total non-financial assets 7,160 Total assets 40,853

LIABILITIES Payables Suppliers 7A 9,375 Grants 7B 601 Other payables 7C 8,535

Total payables 18,511 Provisions Employee provisions 8A 5,106 Other provisions 8B 141

Total provisions 5,247 Total liabilities 23,758 5 Net assets 17,095

EQUITY Parent entity interest Contributed equity 15,601 Reserves 6 Retained surplus (accumulated deficit) 1,488

Total parent entity interest 17,095 Total equity 17,095

Current assets 33,693 Non-current assets 7,160 Current liabilities 21,794 Non-current liabilities 1,964



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5

CASH FLOW STATEMENT for the period ended 30 June 2008

2008 Notes $’000

OPERATING ACTIVITIES

Cash received

Goods and services 9,297

Appropriations 14,402

Net GST received -

Total cash received 23,699

Cash used

Employees 10,815

Suppliers 10,781

Grants 350

Other cash used -

Total cash used 21,946

Net cash flows from (used by) operating activities 10 1,753

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment -

Total cash received -

Cash used

Purchase of property, plant and equipment 1,377

Total cash used 1,377

Net cash flows from (used by) investing activities (1,377)

Net increase (decrease) in cash held 376

Cash and cash equivalents at the beginning of the reporting period -

Cash and cash equivalents at the end of the reporting period 5A 376


5


SCHEDULE OF COMMITMENTS as at 30 June 2008

2008 BY TYPE $’000

Capital commitments Infrastructure, plant and equipment1 1,277 Intangibles2 451

Total capital commitments 1,728

Other commitments Operating leases3 1,961 Other commitments 4,310

Total other commitments 6,271

Commitments Receivable

GST recoverable on commitments (705) (705)

Net commitments by type 7,294

BY MATURITY Commitments payable Capital commitments One year or less 1,653 From one to five years 75 Over five years -

Total capital commitments 1,728

Other commitments One year or less 4,520 From one to five years 1,751 Over five years -

Total operating lease commitments 6,271

Commitments receivable One year or less (539)

From one to five years (166) (705)

Net commitments by maturity 7,294

5

Note: Commitments are GST inclusive where relevant. 1. Infrastructure, plant and equipment commitments are primarily contracts for purchases of furniture and

fittings for a new building, and development of a ground satellite data receiving station. 2. Intangible commitments relate to the department's internally developed information systems, and to its

Financial and Human Resource Management Information System. 3. Operating leases included are effectively non-cancellable.

Nature of lease/general description of leasing arrangement Leases for office accommodation. Lease payments are subject to a fixed 3 per cent increase.

The above schedule should be read in conjunction with the accompanying notes.


5

SCHEDULE OF CONTINGENCIES as at 30 June 2008 The department is not aware of any quantifiable contingent liabilities or assets as at signing date that would

require disclosure in the Financial Statements.

Details of each class of contingent liabilities and contingent assets, including those that cannot be quantified,

are disclosed in Note 11: Contingent Liabilities and Assets.



SCHEDULE OF ADMINISTERED ITEMS

The Department of Climate Change manages the following administered activities:

� Greenhouse action to enhance sustainability in regional Australia

� Climate change science program

� Australian Centre for Climate Change (Climate Change Adaptation Program)

� Influencing international climate change.

SCHEDULE OF ADMINISTERED ITEMS 2008

Notes $’000

for the period ended 30 June 2008

Suppliers 15A 1,516 Grants 15B 13,142

14,658 Total expenses administered on behalf of Government

Expenses administered on behalf of Government


SCHEDULE OF ADMINISTERED ITEMS

5

2008

Notes $’000

as at 30 June 2008

Financial assets Cash and cash equivalents 16A 35 Total assets administered on behalf of Government 35

as at 30 June 2008

Payables Suppliers 17A 580 Grants 17B 4,758

5,338

Assets administered on behalf of Government

Liabilities administered on behalf of Government

Total liabilities administered on behalf of Government

This schedule should be read in conjunction with the accompanying notes.



Notes $’000

Administered cash flows for the period ended 30 June 2008

OPERATING ACTIVITIES

Cash received Other 1 Net GST received -Total cash received 1 Cash used Grant payments 9,602 Suppliers 989 Net GST paid -Total cash used 10,591 Net cash flows from (used by) operating activities (10,590)

Net Increase (decrease) in cash held (10,590)

Cash and cash equivalents at the beginning of the reporting period -Cash from Official Public Account for:

Appropriations 10,626 10,626

Cash to Official Public Account for:

Appropriations 1 1

Cash and cash equivalents at the end of the reporting period 16A 35 5 This schedule should be read in conjunction with the accompanying notes.



$’000

Administered commitments as at 30 June 2008

BY TYPE

Commitments payable Grants 23,530 Other 771 Total commitments payable 24,301

Commitments receivable GST recoverable on commitments (2,192)

(2,192)

Total commitments by type 22,109

BY MATURITY

Commitments payable One year or less 8,423 From one to five years 15,878 Over five years -Net commitments by maturity 24,301

Commitments receivable One year or less (748) From one to five years (1,444)

(2,192)

Total commitments by maturity 22,109 5 Notes: 1. Commitments are GST inclusive where relevant. 2. Grant commitments relate predominantly to amounts payable to universities and other research

organisations under established funding agreements. 3. Other commitments relate to amounts payable for professional expertise in the area of climate change.


SCHEDULE OF ADMINISTERED ITEMS Administered contingencies as at 30 June 2008 Details of each class of Administered contingent liabilities and contingent assets, including those that cannot

be quantified, are disclosed in Note 19 Contingent Liabilities and Assets.

As at signing date, no quantifiable administered contingencies had been identified.



Notes to and forming part of the Financial statements Note 1: Summary of significant accounting policies 77

Note 2: Events after the balance sheet date 86

Note 3: Income 86

Note 4: Expenses 87

Note 5: Financial assets 88

Note 6: Non-financial assets 89

Note 7: Payables 92

Note 8: Provisions 93

Note 9: Restructuring 94

Note 10: Cash flow reconciliation 96

Note 11: Contingent liabilities and assets 97

Note 12: Senior Executive Remuneration 97

Note 13: Remuneration of auditors 97

Note 14: Financial instruments 98

Note 15: Expenses administered on behalf of Government 99

Note 16: Assets administered on behalf of Government 100

Note 17: Liabilities administered on behalf of Government 100

Note 18: Administered reconciliation table 100

Note 19: Administered contingent liabilities and assets 101

5

Note 20: Administered financial instruments 102

Note 21: Appropriations 104

Note 22: Compensation and debt relief 106

Note 23: Reporting of outcomes 107


NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.1 Objectives of the Department of Climate Change

The Department of Climate Change is an Australian Public Service organisation, created on 3 December

2007 within the Prime Minister and Cabinet portfolio. The objective of the Department of Climate Change is

to lead the development and coordination of Australia’s climate change policy. It is responsible for policy

advice, implementation and program delivery in three areas: Australia’s international climate change

strategy (including carriage of international negotiations); domestic emissions reduction (including the design

and implementation of domestic emissions trading); and adaptation to the unavoidable impacts of climate

change.

The department is structured to meet one outcome: The environment, especially those aspects that are

matters of national environmental significance, is protected and conserved.

The department’s activities contributing toward this outcome are classified as either departmental or

administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled

or incurred by the department in its own right. Administered activities involve the management or oversight

by the department, on behalf of the Government, of items controlled or incurred by the Government.

Departmental activities are identified under one output and three sub-outputs. These are:

Output 1.1: Response to climate change

Sub-output 1.1.1: International engagement

Sub-output 1.1.2: Emissions management

Sub-output 1.1.3: Understanding of climate change.

The department manages the following administered activities:

� Greenhouse action to enhance sustainability in regional Australia

� Climate change science program

� Australian Centre for Climate Change

� Influencing international climate change.

The continued existence of the department in its present form and with its present programs is dependent on

Government policy and on continuing appropriations by Parliament for the department’s administration and

programs.

1.2 Basis of preparation of the financial report

The Financial Statements and notes are required by section 49 of the Financial Management and

Accountability Act 1997 and are a General Purpose Financial Report.

The Financial Statements and notes have been prepared in accordance with:

� Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2007

� Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards

Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and are in accordance with the historical

cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the

effect of changing prices on the results or the financial position.

5


These financial statements are presented in Australian dollars and values are rounded to the nearest

thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an Accounting Standard or the Finance Minister’s

Orders, assets and liabilities are recognised in the balance sheet when and only when it is probable that

future economic benefits will flow to the department or a future sacrifice of economic benefits will be required

and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising

under agreements equally proportionately unperformed are not recognised unless required by an Accounting

Standard. Liabilities and assets that are unrealised are reported in the Schedule of Commitments and the

Schedule of Contingencies.

Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are

recognised in the income statement when and only when the flow, consumption or loss of economic benefits

has occurred and can be reliably measured.

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of

Administered Items and related notes are accounted for on the same basis and using the same policies as

for departmental Items, except where otherwise stated at Note 1.17.

The department’s statements do not include comparatives for the 2006-07 financial year, as the department

did not exist in that reporting period.

1.3 Significant accounting judgements and estimates

In the process of applying the accounting policies listed in this note, the department has made no

judgements that have a significant impact on the amounts recorded in the financial statements.

No accounting assumptions or estimates have been identified that have a significant risk of causing a

material adjustment to carrying amounts of assets and liabilities within the next accounting period. 5

1.4 Statement of compliance

Australian Accounting Standards require a statement of compliance with International Financial Reporting

Standards (IFRSs) to be made where the financial report complies with these standards. Some Australian

equivalents to IFRSs and other Australian Accounting Standards contain requirements specific to not for

profit entities that are inconsistent with IFRS requirements. The Department of Climate Change is a not for

profit entity and has applied these requirements, so while this financial report complies with Australian

Accounting Standards including Australian Equivalents to International Financial Reporting Standards

(AEIFRSs) it cannot make this statement.

Adoption of new Australian Accounting Standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. The

following amendments, revised standards or interpretations have become effective but have had no financial

impact or do not apply to the operations of the department.

AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments

[AASBs 1, 2, 3, 4, 5, 6, 7, 102, 107, 108, 110, 112, 114, 116, 117, 118, 120, 121, 127, 128, 129, 130, 131,

132, 133, 134, 136, 137, 138, 139, 141, 1023, 1038].

Financial instrument disclosure

AASB 7 Financial Instruments: Disclosures is effective for reporting periods beginning on or after

1 January 2007 (the 2007-08 financial year) and amends the disclosure requirements for financial

instruments. In general, AASB 7 requires greater disclosure than that previously required. Associated with

the introduction of AASB 7 a number of accounting standards were amended to reference the new standard

or remove the present disclosure requirements through 2005-10 Amendments to Australian Accounting


Standards [AASB 132, 101, 114, 117, 133, 139, 1, 4, 1023, 1038]. These changes have no financial impact

but will affect the disclosure presented in future financial reports.

The following new standards, amendments to standards or interpretations for the current financial year have

no material financial impact on the department:

2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other

Amendments and Erratum: Proportionate Consolidation

2007-7 Amendments to Australian Accounting Standards

UIG Interpretation 11 AASB 2 – Group and Treasury Share Transactions and 2007-1 Amendments

to Australian Accounting Standards arising from AASB Interpretation 11.

Future Australian Accounting Standard requirements

The following new standards, amendments to standards or interpretations have been issued by the

Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the

impact of adopting these pronouncements when effective will have no material financial impact on future

reporting periods:

AASB Interpretation 12 Service Concession Arrangements and 2007-2 Amendments to Australian

Accounting Standards arising from AASB Interpretation 12

AASB 8 Operating Segments and 2007-3 Amendments to Australian Accounting Standards arising

from AASB 8

2007-6 Amendments to Australian Accounting Standards arising from AASB 123

AASB Interpretation 13 Customer Loyalty Programmes

AASB Interpretation 14 AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding

Requirements and their Interaction.

Other

The following standards and interpretations have been issued but are not applicable to the operations of the

department.

AASB 1049 Financial Reporting of General Government Sectors by Governments

AASB 1049 specifies the reporting requirements for the General Government Sector, and therefore, has no

effect on the department’s financial statements.

1.5 Revenue

Revenue from Government

Amounts appropriated for departmental output appropriations for the year (adjusted for any formal additions

and reductions) are recognised as revenue when the department gains control of the appropriation, except

for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised

only when it has been earned.

Appropriations receivable are recognised at their nominal amounts.

Other types of revenue

Revenue from the sale of goods is recognised when:

� The risks and rewards of ownership have been transferred to the buyer

� The seller retains no managerial involvement nor effective control over the goods

5


5

� The revenue and transaction costs incurred can be reliably measured

� It is probable that the economic benefits associated from the transaction will flow to the department.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the

reporting date. The revenue is recognised when:

� The amount of revenue, stage of completion and transaction costs incurred can be reliably measured

� The probable economic benefits with the transaction will flow to the department.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that

costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due

less any impairment allowance accounts. Collectability of debts is reviewed at balance date. Impairment

allowances are made when collectability of the debt is no longer probable.

The department has not earned any interest revenue.

1.6 Gains

Other resources received free of charge

Resources received free of charge are recognised when, and only when, a fair value can be reliably

determined and the services would have been purchased if they had not been donated. Use of those

resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their

fair value when the asset qualifies for recognition, unless received from another government agency or

authority as a consequence of a restructuring of administrative arrangements (Refer to Note 1.7).

Resources received free of charge are recorded as either revenue or gains depending on their nature.

1.7 Transactions with the Government as owner

Equity injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) are

recognised directly in Contributed Equity in that year.

Restructuring of administrative arrangements

Net assets received from, or relinquished to, another government agency or authority under a restructuring of

administrative arrangements are adjusted at their book value directly against contributed equity.

Other distributions to owners

The Finance Minister’s Orders require that distributions to owners be debited to Contributed Equity unless in

the nature of a dividend.

1.8 Employee benefits

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they

have not been settled.

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within

twelve months of balance date are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.


All other employee benefit liabilities are measured at the present value of the estimated future cash outflows

to be made in respect of services provided by employees up to the reporting date.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision

has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future

years by employees of the department is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration, including the department’s

employer superannuation contribution rates, to the extent that the leave is likely to be taken during service

rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at

30 June 2008. The estimate of the present value of the liability takes into account attrition rates and pay

increases through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. The department recognises a provision

for termination when it has developed a detailed formal plan for the terminations and has informed those

employees affected that it will carry out the terminations.

Superannuation

Staff of the department are members of the Commonwealth Superannuation Scheme (CSS), the Public

Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined

contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is

settled by the Australian Government in due course. This liability is reported by the Department of Finance

and Deregulation as an administered item.

The department makes employer contributions to the employee superannuation scheme at rates determined

by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements

of the department’s employees. The department accounts for the contributions as if they were contributions

to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final

fortnight of the year.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from

the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current

assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively

retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at either the fair

value of the lease property or, if lower, the present value of minimum lease payments at the inception of the

contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period

of the lease. Lease payments are allocated between the principal component and the interest expense.

The department does not currently hold any finance leases.

5


Operating lease payments are expensed on a straight-line basis which is representative of the pattern of

benefits derived from the leased assets.

1.10 Financial assets

The department classifies its financial assets in the following categories:

� Financial assets ‘at fair value through profit or loss’

� ‘Loans and receivables’.

The classification depends on the nature and purpose of the financial assets and is determined at the time of

initial recognition.

Financial assets are recognised and derecognised upon ‘trade date’.

The Department of Climate Change holds no financial assets for the purpose of sale.

Impairment of financial assets

Financial assets are assessed for impairment at each balance date.

� Financial assets held at amortised cost – if there is objective evidence that an impairment loss has

been incurred for loans and receivables or held to maturity investments held at amortised cost, the

amount of the loss is measured as the difference between the asset’s carrying amount and the

present value of estimated future cash flows discounted at the asset’s original effective interest rate.

The carrying amount is reduced by way of an allowance account. The loss is recognised in the

income statement.

1.11 Financial liabilities 5

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other

financial liabilities.

Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair

value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss

incorporates any interest paid on the financial liability.

Supplier and other payables

Supplier and other payables are recognised at amortised cost where this is materially different from historical

cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective

of having been invoiced).

1.12 Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the

relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or

represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent

assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are

disclosed when settlement is greater than remote.


1.13 Acquisition of assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair

value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at

their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at

their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative

arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at

which they were recognised in the transferor Agency’s accounts immediately prior to the restructuring.

1.14 Property, plant and equipment

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for

purchases costing less than the following asset thresholds, which are expensed in the year of acquisition

(other than where they form part of a group of similar items which are significant in total).

Buildings $10,000

Leasehold improvements $50,000

Plant and equipment $5,000

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and

restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property

leases taken up by the department where there exists an obligation to restore the property to its original

condition. These costs are included in the value of the department’s leasehold improvements with a

corresponding provision for the ‘makegood’ recognised.

Revaluations

Fair values for each class of asset are determined as shown below:

Buildings Market selling price

Leasehold improvements Depreciated replacement cost

Plant and equipment Market selling price

Following initial recognition at cost, property plant and equipment are carried at fair value less accumulated

depreciation and accumulated impairment losses. The department conducted a valuation of its assets in

June 2008, and intends to fully revalue its assets every three years while conducting desktop reviews in the

intervening years, in order to ensure that the carrying amounts of assets do not differ materially from the

assets’ fair values as at the reporting date.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under

the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation

decrement of the same asset class that was previously recognised through operating result. Revaluation

decrements for a class of assets are recognised directly through operating result except to the extent that

they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of

the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property plant and equipment assets are written-off to their estimated residual values over their

estimated useful lives to the department using, in all cases, the straight-line method of depreciation.

5


Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and

necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2008

Buildings on freehold land 3 to 50 years

Leasehold improvements Lease term

Plant and Equipment 2 to 50 years

Impairment

All assets were assessed for impairment at 30 June 2008. Where indications of impairment exist, the asset’s

recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is

less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Value in use is the present value of the future cash flows expected to be derived from the asset. Where the

future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash

flows, and the asset would be replaced if the department were deprived of the asset, its value in use is taken

to be its depreciated replacement cost.

1.15 Intangibles

The department’s intangibles comprise internally developed software for internal use. These assets are

carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the

department’s software are 3 to 10 years.

All software assets were assessed for indications of impairment as at 30 June 2008.

1.16 Taxation

The department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and

Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST:

� except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

� except for receivables and payables.

5


5

1.17 Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of

Administered Items and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using

the same policies as for departmental items, including the application of Australian Accounting Standards.

Administered Cash Transfers to and from the Official Public Account

Revenue collected by the department for use by the Government rather than the department is

administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the

Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments

under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are

adjustments to the administered cash held by the department on behalf of the Government and reported as

such in the Statement of Cash Flows in the Schedule of Administered Items and in the Administered

Reconciliation Table in Note 21. The Schedule of Administered Items largely reflects the Government’s

transactions, through the department, with parties outside the Government.

Revenue

All administered revenues are revenues relating to the ordinary activities performed by the department on

behalf of the Australian Government.

Grants and subsidies

The department administers a number of grants on behalf of the Government.

Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee

have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been

made. A commitment is recorded when the Government enters into an agreement to make these grants

but services have not been performed or criteria satisfied.


NOTE 2: EVENTS AFTER THE BALANCE SHEET DATE

There are no known events occurring after balance date that could impact on the financial statements.

NOTE 3: INCOME

2008

Revenue $’000

Note 3A: Revenue from Government Appropriations:

Departmental outputs 31,057

Total revenue from Government 31,057

Note 3B: Sale of goods and rendering of services Provision of goods - related entities -Provision of goods - external parties -Rendering of services - related entities 173 Rendering of services - external parties -

Total sale of goods and rendering of services 173

Gains

Note 3C: Other gains Resources received free of charge 1,974

Total other gains 1,974

5


NOTE 4: EXPENSES

2008 $’000

Note 4A: Employee benefits Wages and salaries 8,796 Superannuation:

Defined contribution plans 496

Defined benefit plans1 938 Leave and other entitlements 1,620 Separation and redundancies -Other employee expenses 243

Total employee benefits 12,093

Note 4B: Suppliers Provision of goods – related entities 546 Provision of goods – external parties 1,538 Rendering of services – related entities 3,562 Rendering of services – external parties 10,891 Operating lease rentals:

Minimum lease payments 1,568 Workers compensation premiums 132

Total supplier expenses 18,237

Note 4C: Grants Public sector:

State and Territory Governments 80 Local Governments 101

Private sector: Non-profit organisations 549 Other 112

Overseas 110

Total grants 952

Note 4D: Depreciation and amortisation Depreciation:

Infrastructure, plant and equipment 54

Total depreciation 54 Intangibles: Computer software 376

Total amortisation 376

Total depreciation and amortisation 430

Note 4E: Write-down and impairment of assets Asset write-downs from

impairment of property, plant and equipment 4

Total write-down and impairment of assets 4

The department contributes to both the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. While these are defined benefit plans, the plans are owned by ComSuper, which recognises the non-contribution parts of these plans.

5


1

NOTE 5: FINANCIAL ASSETS

2008 $’000

Note 5A: Cash and cash equivalents Cash on hand or on deposit 376

Total cash and cash equivalents 376

Note 5B: Trade and other receivables Goods and services 305 Total trade receivable 305 Appropriations receivable:

for existing outputs 31,640

Total appropriations receivable 31,640

GST receivable from the Australian Taxation Office 550 Other Receivables 822 Total other receivables 1,372

Total trade and other receivables (gross) 33,317 Less allowance for doubtful debts:

Goods and services -Other -

Total trade and other receivables (net) 33,317

Receivables are represented by: Current 33,317 Non-current -Total trade and other receivables (net) 33,317

Receivables are aged as follows: Not overdue 33,234 Overdue by:

Less than 30 days 83 30 to 60 days -61 to 90 days -More than 90 days -

Total receivables (gross) 33,317

5


NOTE 6: NON-FINANCIAL ASSETS

2008 $’000

Note 6A: Land and buildings Leasehold improvements

fair value 835 accumulated depreciation (30) accumulated impairment losses -

Total leasehold improvements 805

Total land and buildings (non-current) 805

No indicators of impairment were found for land and buildings.

Note 6B: Infrastructure, plant and equipment Infrastructure, plant and equipment:

Gross carrying value (at fair value) 47 Accumulated depreciation -

Total infrastructure, plant and equipment 47

All revaluations are conducted in accordance with the revaluation policy stated at Note 1. In July 2008, an independent valuer S O'Leary (AVO) conducted the revaluations.

A revaluation increment of $6,000 for plant and equipment (2007: $0) was credited to the asset revaluation reserve by asset class and included in the equity section of the balance sheet.

No indicators of impairment were found for infrastructure, plant and equipment.

Note 6C: Intangibles Computer software at fair value:

Internally developed – in progress -Internally developed – in use 6,190 Purchased computer software 278

Total computer software 6,468 Accumulated amortisation (376) Accumulated impairment write-down -

Total intangibles (non-current) 6,092

No indicators of impairment were found for intangible assets.

Note 6D: Other non-financial assets Prepayments 216

Total other non-financial assets 216

All other non-financial assets are current assets.

No indicators of impairment were found for other non-financial assets.

5


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5

NOTE 7: PAYABLES

2008 $’000

Note 7A: Suppliers Trade creditors 7,811 Other creditors 1,564

Total supplier payables 9,375

Supplier payables are represented by: Current 9,375 Non-current -

Total supplier payables 9,375

Settlement is usually made net 30 days.

Note 7B: Grants Public sector:

Australian Government entities (related entities) -State and Territory Governments 25 Local governments 141

Private sector: Non-profit organisations 265 Other 66

Overseas 54 Other 50

Total grants 601

Grants payable are represented by: Current 601 Non-current -

Total grants payable 601

Note 7C: Other payables Prepayments received/unearned income 8,535 Total other payables 8,535

5


NOTE 8: PROVISIONS

2008 $’000

Note 8A: Employee provisions Salaries and wages 216 Leave 4,827 Superannuation 35 Separations and redundancies -Other 28 Total employee provisions 5,106

Employee provisions are represented by: Current 3,283 Non-current 1,823 Total employee provisions 5,106

The classification of current employee provisions includes amounts for which there is not an unconditional right to defer settlement by one year, hence in the case of employee provisions the above classification

does not represent the amount expected to be settled within one year of reporting date. Employee provisions expected to be settled in twelve months from the reporting date is $2,053,000, in excess of

one year $3,053,000.

2008

$’000 Note 8B: Other provisions Provision for future lease payments 18 Provision for makegood 123 Total other provisions 141

Other provisions are represented by:

Current -Non-current 141 Total other provisions 141

5

Provision for Provision for Total future lease makegood

payments Total $’000 $’000 $’000

Carrying amount 1 July 2007 - - -Additional provisions made 18 123 141 Amounts used - - -Amounts reversed - - -Unwinding of discount or change in discount rate - - -Closing balance 2008 18 123 141

The department currently has one agreement for the leasing of premises which has provisions requiring the

department to restore the premises to their original condition at the conclusion of the lease.

The department has made a provision to reflect the present value of this obligation.


NOTE 9: RESTRUCTURING

Note 9A: Departmental restructuring

The Department of Climate Change was created on 3 December 2007 as a result of a restructuring of

administrative arrangements. The department gained functions that had previously been performed by the

Department of the Environment, Water, Heritage and the Arts, the Department of the Prime Minister and

Cabinet, and the Department of Foreign Affairs and Trade.

In respect of functions assumed, the net book values of assets and liabilities transferred to the Agency for no

consideration and recognised as at the date of transfer were:

2008 $’000

Total assets recognised 9,625 Total liabilities recognised (3,520)

Net assets assumed 6,105

Net increase (decrease) in net assets during the year 6,105

Revenues Recognised by the Department of the Environment, Water, Heritage and the Arts 11,402 Recognised by the Department of Foreign Affairs and Trade 1,347 Recognised by the Department of Prime Minister and Cabinet 1,018 Recognised by the Department of Climate Change 31,514 Total revenues 45,281

Expenses Recognised by the Department of the Environment, Water, Heritage and the Arts 11,402 Recognised by the Department of Foreign Affairs and Trade 1,347 Recognised by the Department of Prime Minister and Cabinet 1,018 Recognised by the Department of Climate Change 30,514 Total expenses 44,281

5


NOTE 9: RESTRUCTURING (CONTINUED)

Note 9B: Administered restructuring

The Department of Climate Change was created on 3 December 2007 as a result of a restructuring of administrative arrangements. The Department gained functions that had previously been performed by the Department of the Environment, Water, Heritage and the Arts, the Department of the Prime Minister and Cabinet, and the Department of Foreign Affairs and Trade.

In respect of functions assumed, the net book values of administered assets and liabilities to the Agency for no consideration and recognised as at the date of transfer were:

2008 $’000

Total assets recognised -Total liabilities recognised -

Net assets assumed -

Net increase (decrease) in administered net assets during the year -

Revenues Recognised by the Department of the Environment, Water, Heritage and the Arts -Recognised by the Department of Foreign Affairs and Trade -Recognised by the Department of Prime Minister and Cabinet -Recognised by the Department of Climate Change -

Total revenues -

Expenses Recognised by the Department of the Environment, Water, Heritage and the Arts 8,180 Recognised by the Department of Foreign Affairs and Trade -Recognised by the Department of Prime Minister and Cabinet -Recognised by the Department of Climate Change 14,658

Total expenses 22,838

The Department of Climate Change has gained the following functions:

� Development and coordination of domestic and international climate change policy

� International climate change negotiations

� Design and implementation of emissions trading

� Mandatory renewable energy target policy, regulation and co-ordination

� Greenhouse emissions and energy consumption reporting

� Climate change adaptation strategy and co-ordination

� Coordination of climate change science activities.

5


NOTE 10: CASH FLOW RECONCILIATION

5

2008

$’000 Reconciliation of cash and cash equivalents as per balance sheet to cash flow

Report cash and cash equivalents as per: Cash Flow Statement 376 Balance Sheet 376

Reconciliation of operating result to net cash from operating activities: Operating result 1,488 Depreciation /amortisation 430 Net write down of non-financial assets 4 Resources received free of charge (446) (Increase) / decrease in net receivables (18,059) (Increase) / decrease in prepayments (216) Increase / (decrease) in employee provisions 1,665 Increase / (decrease) in supplier payables 7,734 Increase / (decrease) in grant payables 601 Increase / (decrease) in prepayments received 8,535 Increase / (decrease) in other provisions 17 Net cash from / (used by) operating activities 1,753


NOTE 11: CONTINGENT LIABILITIES AND ASSETS

Quantifiable contingencies

The department has no quantifiable contingent assets or liabilities as at signing date that would require

disclosure in the financial statement.

Unquantifiable contingencies

The department has no unquantifiable contingent assets or liabilities as at signing date that would require

disclosure in the financial statement.

NOTE 12: SENIOR EXECUTIVE REMUNERATION

2008 The number of senior executives who received or were due to receive total remuneration of $130,000 or more:

$130,000 to $144,999 3 $145,000 to $159,999 -$160,000 to $174,999 1 $175,000 to $189,999 1 $190,000 to $204,999 -$205,000 to $219,999 -Total 5

The aggregate amount of total remuneration of senior executives shown above. $761,025

The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above. $0

5

NOTE 13: REMUNERATION OF AUDITORS

2008

$

Financial statement audit services are provided

free of charge to the department.

The fair value of the services provided was: 101,000

101,000

Note: No other services were provided by the Auditor-General.


NOTE 14: FINANCIAL INSTRUMENTS

2008 $'000

Note 14A: Categories of financial instruments Loans and receivables Loans and receivables

Cash and cash equivalents 376 Trade receivables 305 Other receivables 822

Carrying amount of financial assets 1,503

Financial liabilities Other liabilities

Payables - suppliers 7,811 Payables - grants 601 Prepayments received/unearned income 8,535 Payables - other 1,564

Carrying amount of financial liabilities 18,511

Note 14B: Fair value of financial instruments All Department of Climate Change financial instruments are held at fair value.

Note 14C: Credit risk

The Department of Climate Change is exposed to minimal credit risk as loans and receivables are cash and trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade receivables (2008: $1,127,000). The department has assessed the risk of the default on payment and has decided not to allocate an allowance for doubtful debts.

Credit quality of financial instruments not past due or individually determined as impaired. 5

Not past due Past due

nor impaired or impaired

2008 2008 $'000 $'000

Loans and receivables Cash and cash equivalents 376 -Trade receivables 305 -Other receivables 822 Total 1,503 -

Ageing of financial assets that are past due but not impaired for 2008

0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000

Loans and receivables Cash and cash equivalents - - - - -Trade receivables - - - -Other Receivables - - - - -Total - - - - -


NOTE 14: FINANCIAL INSTRUMENTS (CONTINUED)

Note 14D: Liquidity risk

The Department of Climate Change's financial liabilities are payables. The exposure to liquidity risk is based on the notion that the department will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the entity (eg Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

The following table illustrate the maturities for financial liabilities

On within 1 1 to 5 > 5

demand year years years Total 2008 2008 2008 2008 2008

$'000 $'000 $'000 $'000 $'000

Other liabilities - - - -Payables - suppliers - 9,375 - - 9,375 Prepayments received/unearned in - 8,535 - - 8,535 Grants payable - 601 - - 601

Total - 18,511 - - 18,511

The department is appropriated funding from the Australian Government. It manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the department has policies in place to ensure payments are made when due and has no past experience of default.

Note 14E: Market risk

The department holds basic financial instruments that do not expose it to certain market risks. The department is not exposed to 'currency risk' or 'other price risk'.

Interest Rate Risk

The department is not currently exposed to any interest rate risk.

NOTE 15: EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

5

2008

$'000

Expenses

Note 15A: Suppliers Provision of goods – related entities -Provision of goods – external parties 405 Rendering of services – related entities 390 Rendering of services – external parties 721

Total suppliers 1,516


Australian government entities (related entities) 1,981 State and Territory Governments 785 Local Governments 1,551

Private sector: Non-profit organisations 6,182 Other 2,292

Overseas 351

Total grants 13,142


NOTE 16: ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT

2008 $’000

Financial Assets

Note 16A: Cash and cash equivalents Cash on hand or on deposits 35 Total cash and cash equivalents 35

NOTE 17: LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

2008 $’000

Payables

Note 17A: Suppliers Trade creditors 494 Other 86

Total suppliers 580

All creditors are entities that are not part of the department. Settlement is usually made net 30 days.


Australian government entities (related entities) 1,008 State and Territory Governments 742 Local Governments -

Private sector: Non-profit organisations 873

Other 1,927 Overseas 208

Total grants 4,758

All grants are to entities that are not part of the department. Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.

NOTE 18: ADMINISTERED RECONCILIATION TABLE

5

2008

$’000

Opening administered assets less administered liabilities as at 1 July -Adjustment for change in accounting policies -Adjustments for errors -

Adjusted opening administered assets less administered liabilities Plus: Administered income -Less: Administered expenses (14,658) Administered transfers to/from Australian Government:

Appropriation transfers from OPA:

Annual appropriations for administered expenses 9,761 Administered assets and liabilities appropriations -

Transfers to OPA (1) Tranferrable to OPA (405) Restructuring -

Closing administered assets less administered liabilities as at 30 June (5,303)


NOTE 19: ADMINISTERED CONTINGENT LIABILITIES AND ASSETS

Quantifiable contingencies

The department is not aware of any quantifiable administered contingent liabilities or assets as at signing

date that would require disclosure in the Financial Statements.

Unquantifiable contingencies

Kyoto Protocol – Emissions target

As a party to the Kyoto Protocol, Australia is required to meet its target level for emissions over the first

Commitment Period, 2008-2012. At this stage the best available estimates suggests that Australia is

broadly on track to meet the 2008-2012 target. However, given the early stage of the commitment

period, it is unclear whether Australia will ultimately report an asset or a liability. Once this information

can be more reliably estimated, the department will account for it accordingly.

5


NOTE 20: ADMINISTERED FINANCIAL INSTRUMENTS

2008 $'000

Note 20A: Categories of financial instruments

Financial assets Loans and receivables

Cash and cash equivalents 35 Carrying amount of financial assets 35

Financial liabilities Other Liabilities

Trade creditors 580 Grants payable 4,758

Carrying amount of financial liabilities 5,338

Note 20B: Fair value of financial instruments

All Department of Climate Change financial instruments are held at fair value.

Note 20C: Credit risk

The Department of Climate Change is exposed to minimal credit risk as loans and receivables are cash and trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade receivables (2008: $0). The department has assessed the risk of the default on payment and has decided not to allocate an allowance for doubtful debts.

Credit quality of financial instruments not past due or

5 individually determined as impaired

Not past due Past due

nor impaired or impaired

2008 2008 $'000 $'000

Loans and receivables Trade receivables - -

Total - -

Ageing of financial assets that are past due but not impaired for 2008

0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000

Loans and receivables Trade receivables - - - - -Total - - - - -

Page 101


NOTE 20: ADMINISTERED FINANCIAL INSTRUMENTS (CONTINUED)

Note 20D: Liquidity risk

The Department of Climate Change's financial liabilities are payables. The exposure to liquidity risk is based on the notion that the agency will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the entity (eg Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

The following table illustrate the maturities for financial liabilities

On within 1 1 to 5 > 5 demand year years years Total

2008 2008 2008 2008 2008 $'000 $'000 $'000 $'000 $'000

Other liabilities Trade creditors - 580 - - 580 Grants payable - 4,758 - - 4,758 Total - 5,338 - - 5,338

The department's administered activities are appropriated from the Australian Government. The department manages its budgeted administered funds to ensure it has adequate funds to meet payments as they fall due. In addition, the department has policies in place to ensure timely payments are made when due and has no past experience of default.

Note 20E Market risk

The department holds basic financial instruments that do not expose it to certain market risks. The department is not exposed to 'currency risk' or 'other price risk'.

Interest rate risk

The department is not currently exposed to any interest rate risk.

5


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NOTE 22: COMPENSATION AND DEBT RELIEF

Administered

No Act of Grace payments, ex-gratia payments or waivers were recorded by the department during the

reporting period.

Departmental

No Act of Grace payments, ex-gratia payments or waivers were recorded by the department during the

reporting period.

No payments were made under Section 73 of the Public Service Act 1999 during the reporting period.

5


NOTE 23: REPORTING OF OUTCOMES

Note 23A: Net cost of outcome delivery

Outcome 1 Total 2008 2008

$’000 $’000 Expenses Administered 14,658 14,658 Departmental 31,716 31,716

Total expenses 46,374 46,374 Costs recovered from provision of goods and

services to the non government sector Administered - -Departmental - -

Total costs recovered - -Other external revenues Administered Other - -Goods and services revenue from related entities - -Total administered - -Departmental Other - -Goods and services revenue from related entities 173 173 Total departmental 173 173

Total other external revenues 173 173

Net cost/(contribution) of outcome 46,201 46,201

Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in

calculating the actual Budget outcome.

Note 23B: Major classes of departmental revenues and expenses by output groups and outputs

5

Outcome 1 Output 1.1 Output 1.1 Output 1.1 Outcome 1

Sub-Output 1.1.1 Sub-Output 1.1.2 Sub-Output 1.1.3 Total

2008 2008 2008 2008 $’000 $’000 $’000 $’000

Departmental expenses Employees 1,356 7,944 2,793 12,093 Suppliers 2,045 11,980 4,212 18,237 Grants 107 625 220 952 Depreciation and amortisation 48 282 100 430 Other expenses - 3 1 4 Total departmental expenses 3,556 20,834 7,326 31,716

Funded by: Revenues from government 3,465 20,454 7,138 31,057 Sale of goods and services 19 114 40 173 Total departmental revenues 3,484 20,568 7,178 31,230

Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in

calculating the actual Budget outcome.


NOTE 23: REPORTING OF OUTCOMES (CONTINUED)

Note 23C: Major classes of administered revenues and expenses by outcomes

5

Outcome 1 Total

2008 2008 $’000 $’000

Administered income Sale of goods and services - -Other non-taxation revenue - -Total administered income - -

Administered expenses Grants 13,142 13,142 Subsidies - -Personal benefits - -Suppliers 1,516 1,516 Other non-taxation revenue - -Total administered expenses 14,658 14,658

Outcome 1 is described in Note 1.1.


6Section 6: Other statutory reporting

6

Occupational Health and Safety 111

Freedom of information 111

Advertising and market research 114

Ecologically sustainable development 114

Discretionary grant programs 115


Occupational Health and Safety In accordance with section 74 of the Occupational Health and Safety Act 1991 the department is conscious of its obligations to provide a safe workplace. The Health and Safety Management Arrangements are currently being developed and will be implemented in September 2008, and reported on in the 2008–09 Annual Report.

During the reporting period Occupational Health and Safety administration was undertaken by the Department of Environment, Water, Heritage and the Arts.

In the period December 2007 to June 2008 there were no reportable claims under section 68 of the Occupational Health and Safety Act 1991

Freedom of information Section 8 of the Freedom of Information Act 1982 requires the department to publish detailed information about:

• how it is organised and what decision-making powers it has

• what arrangements it makes for public involvement in its work

• what types of documents it holds

• how the public can obtain access to these documents.

The following information addresses these requirements.

Organisation of the department

Details of the department’s organisational and management structure are set out in Section 2, Figure 2 of this report. The department’s functions and the decision-making powers exercised in carrying out those functions are described in the Agency Overview and Corporate Governance sections of this report.

6

Section 6: Other statutory reporting 111

Applications received

In 2007–08, DEWHA managed Freedom of Information requests on behalf of the department. Details of freedom of information requests and the outcome of these requests are included in the DEWHA 2007–08 Annual Report.

In the future, the Department of Climate Change will manage freedom of information requests which relate to the department, and details of all such requests will be included in its annual reports.

Arrangements for public involvement

The department consults members of the public and bodies outside the Australian Government’s administration when developing policy and programs and administering legislation and schemes. In additional to general public consultation, the department and the Minister also receive advice from scientific and expert committees and other bodies.

Information about the department

Under section 8 of the Freedom of Information Act 1982, the Department of Climate Change must make available information about its functions, organisation, operations and powers that affect members of the public. Relevant information is contained throughout this annual report and on the department’s website.

Types of information available 6

The department holds a large number of records, including the following categories of records:

• General policy—administrative files, policy papers, research papers, consultant’s reports, memoranda of understanding, agreements, permits, licenses, submissions, manuals, staffing records, guidelines for programs, financial records, instructions to the Secretary, legal documents and tender evaluations.

• Specific—committee records, court documents and records.

• Parliamentary—ministerial submissions, policy advice, ministerial correspondence, briefing documents, Cabinet submissions and explanatory memoranda to Acts, Ordinances and Regulations.

Facilities for access to documents

If a member of the public requests a document and the department approves access, it will provide copies of documents after the applicant pays any appropriate charges.

Alternatively, applicants may arrange to inspect documents at 2 Constitution Avenue, Canberra ACT 2600 between the hours of 9.00 am and 5.00 pm, Monday to Friday (except on public and public service holidays).


Procedure for gaining access to information

The Legal and Governance Section in the Corporate Services Branch coordinates requests under the Freedom of Information Act 1982. Applicants seeking access under the Act to the department’s documents should apply in writing to:

The FOI Coordinator Corporate Services Branch Department of Climate Change PO Box 854 CANBERRA ACT 2601 Email: [email protected]

The request should state the documents o which the applicant is seeking access and be accompanied by the application fee, which is currently $30. The department accepts payment by way of cheque (made payable to the Collector of Public Monies) or money order. If an applicant wishes to apply to have the application fee waived, this application should accompany the request.

The Freedom of Information Act 1982 provides that further charges may be imposed for processing requests.

The department may grant or refuse requests for access to documents. In accordance with section 54 of the Act, an applicant may, within 30 days of receiving notification of a decision under the Act, apply for internal review of a decision to refuse a request. The prescribed fee of $40 should accompany such an application.

The Department of Climate Change is required under the Freedom of Information Act 1982, section 9(2)(b), to provide a statement which provides to members of the public details of the documents used to make decisions affecting the benefits or liabilities of individuals. This information is made available on the department’s website at www.climatechange.gov.au.

6


Advertising and market research Table 7, below, sets out amounts paid by the department on advertising and market research in 2007–08.

taBlE 7: aDVERtiSinG anD MaRkEt RESEaRCH ExPEnDituRE FOR 2007–08

Vendor Purpose Cost ($)

HMa Blaze notice of 1 July 2008 launch of national Greenhouse and Energy Reporting System

19,975.40

HMa Blaze notice of Consultant Session on the national Greenhouse and Energy Reporting Systems Regulations Policy Paper

30,732.30

Woolcott Research Pty ltd(a) Provide qualitative market research services to inform the development of the department’s activities for communicating climate change policies with the australian community

68,530.00

6

notes: these figures include GSt. Projects totaling less than $10,500 for the year and accrued expenses are not included in this table.

(a) this entry also appears under consultancy table as reported on the department’s website at: www.climatechange.gov.au/about/annualreport/index.html.

Ecologically sustainable development The department is committed to making a positive contribution to sustainable development.

Since its creation the department has received facilities management services from DEWHA, and therefore has used DEWHA’s Environmental Management System and energy reporting regimes to measure its environmental impact. The DEWHA Environmental Management System incorporates the management of energy, water and wastes, the vehicle fleet and purchasing.

The department is currently establishing its own Environmental Management System and environmental policies and performance standards. Until this occurs, the department will continue to comply with the processes already put in place by DEWHA and commit to continuously improving environmental performance in the department’s operations and activities.

The department applies the principles of ecologically sustainable development, social justice and equity in policy development and operational activities and incorporates risk management in planning and project activities. Risk management enables the department


to assess environmental, geographic, social and commercial risks that may impact on corporate performance.

Staff are aware of their responsibilities in managing the environmental aspects of their work.

The department’s environmental performance is included in the DEWHA Environmental System. As a result the Department of Climate Change is unable to report on its environmental data separately.

Discretionary grant programs The department administers a range of discretionary grant programs. Discretionary grants are payments made to particular applicants, either organisations or individuals, at the discretion of the portfolio minister for the paying agencies. Conditions may or may not be imposed in return for the grant. Discretionary grants may be single ad hoc payments, or grants renewed under continuing programs.

Programs for which grants were approved in 2007–08 are listed below. A list of individual grant titles and recipients is available on request from the department.

taBlE 8: DiSCREtiOnaRy GRant PROGRaMS

Discretionary grant program names Discretionary grant program descriptions

6

Greenhouse action to Enhance Sustainability in Regional australia

Greenhouse action to Enhance Sustainability in Regional australia addresses challenges and knowledge gaps about climate change in regional australia (agriculture, forestry and natural resource management sectors).

influencing international Climate Change Policy

Provides specialist advice on international climate change arrangements and on building the capacity of key developing countries to take effective climate change action through bilateral partnerships

Climate Change Science Program the australian Climate Change Program is supporting research into the nature, causes, timing and implications of climate change for australia. the program helps to maintain australia’s world-class climate modelling capacity, and is one of the main reasons australia is recognised internationally for the quality of its climate change science.

Climate Change Science extends australia’s world-class scientific expertise in climate change, and builds the capacity of regions, industries and communities to adapt to climate change.

Climate Change adaptation Program Promotes and supports adaptation action in three key ways: improving our knowledge of climate change impacts; strengthening the capability of decision-makers to respond; and addressing major areas of vulnerability in australia.


7 Section 7: Appendix

7

Compliance index 119

Acronyms 121

Index 123


7

Compliance index REQuiREMEnt PaGE/S

General details

letter of transmittal iii

table of contents v

index 123

acronyms 121

Contact details viii

internet home page address and internet address for report ii

Section 1: Secretary’s review 1–8

Review by departmental secretary 3

Overview of department’s performance 3–4

Outlook for following year 4

Summary of achievements 5–7

Section 2: Overview 9–20


Role and functions of the department 12, 13


Outcome and output structure 19

Portfolio overview and structure 11

Section 3: Report on performance 21–43

Summary resource table 24

Review of performance during the year in relation to the department’s outcome and outputs

23, 26, 33, 39

actual performance in relation to performance targets set out in PBS/PaES 31, 37, 42

narrative discussion and analysis of performance 26, 33, 39

Discussion of any significant changes from the prior year or from budget 17–19, 63

continued

Section 7: Appendix 119

REQuiREMEnt PaGE/S

Section 4: Management and accountability 45–60

Corporate governance 47

Corporate governance practices in place 47–49

names of the senior executive and their responsibilities 14

Senior management committees and their roles 48, 49

Corporate and business planning 50

approach adopted to identifying areas of significant financial or operational risk 50 and arrangements in place to manage risks

Policy and practices on the establishment and maintenance of appropriate 50 ethical standards

How nature and amount of remuneration for SES officers is determined 50

External scrutiny 50

Judicial decisions and decisions of administrative tribunals 51

Reports by the auditor-General, a Parliamentary Committee or the 51 Commonwealth Ombudsman

Management of human resources 51–55

Workforce planning, staff turnover and retention 52

Recruitment 52

7 impact and features of workplace agreement and aWas 54, 55

Statistics on staffing 54–56

assets management 58

Purchasing 58

Consultants 56, 59

Workplace diversity 59

Report on performance in implementing the Commonwealth Disability Strategy 59

Section 5: Financial statements 61–108

Summary of the department’s financial performance 63

Financial statements 67–108

Section 6: Other statutory reporting 109–115

Occupational health and safety (section 74 of the Occupational Health and Safety 111 Act 1991)

Freedom of information (subsection 8(1) of the Freedom of Information Act 1982) 111

advertising and market research (section 311a of the Commonwealth Electoral Act 111 1918)

Ecologically sustainable development and environmental performance (section 516a 114 of the Environment Protection and Biodiversity Conservation Act 1999)

Discretionary grants 115


Acronyms AASB Australian Accounting Standards Board

AEIFRSs Australian Equivalents to International Financial Reporting Standards

ANU Australian National University

APEC Asia-Pacific Economic Cooperation

APS Australian Public Service

ATSI Aboriginal and Torres Strait Islander

ANZLIC Australia and New Zealand Land Information Council

COAG Council of Australian Governments

CSIRO Commonwealth Scientific and Industrial Research Organisation

CSS Commonwealth Superannuation Scheme

DEWHA Department of Environment, Water, Heritage and the Arts

EDGAR Environmental Data Gathering and Reporting

EEO Equal Employment Opportunity

EL Executive Level

ESL English as a Second Language

FBT Fringe Benefits Tax

GST Goods and Services Tax

IFCI International Forest Carbon Initiative

IFRSs International Financial Reporting Standards

NCAS Australia’s National Carbon Accounting System

NCCARF National Climate Change Adaptation Research Facility

NGERS National Greenhouse and Energy Reporting System

OECD Organisation for Economic Co-operation and Development

OPA Official Public Account

ORER Office of the Renewable Regulator

OSCAR Online System for Comprehensive Activity Reporting

7


7

PSS Public Sector Superannuation Scheme

PSSap PSS accumulation plan

RET Renewable Energy Target

SES Senior Executive Service

UNFCCC United Nations Framework Convention on Climate Change

UN United Nations

WGCCW Working Group on Climate Change and Water


Index A Access and equity, 56 Accommodation Committee, 49 Achievements, 5 Acronyms, 121 Adaptation and Land Management Division,

13, 26, 33, 39 Adaptation policy, 33 Adaptation Research Facility, 37, 38 Administered programs, 18 Administrative Appeals Tribunal, 51 Advertising and market research, 114 Analysis of performance, 26, 33, 39 APEC Leaders Summit, 7 Asia Pacific Economic Cooperation, 40 Asset management, 58 Audit Committee, 48 Australian Public Service Values, 50

B Bali, 43 Bali Roadmap, 43 Biodiversity, 37

C Carbon Pollution Reduction Scheme,

6, 25, 26, 30–32 Carbon sink forests, 29 Chief Executive Instructions, 50 Chief Financial Officer, viii Climate Change Adaptation Skills for

Professionals Program, 35 Climate Change Science Framework, 7, 34 Climate Change Science Program, 34 Climate Change Strategic Review, 23 Clinton Climate Initiative, 28, 40 Coastal regions, 35, 37 Code of Conduct, 17, 50 Collective Agreement, 54 Commonwealth Disability Strategy, 59 Compliance index, 119 Consultancies, 59 Contact officer, viii Coordination, 33 Corporate planning, 50

Corporate Services Branch, 13 Council of Australian Governments (COAG),

6, 27–31, 33, 37 Courts, 51

D Deputy Secretaries, 16 Deputy Secretaries’ Committee on Climate

Change, 23 Discretionary grant programs, 115

E Ecologically sustainable development, 114 Emissions Trading Division, 13, 26 Energy Efficiency Opportunities program, 31 Ethical standards, 50 Executive Board, 48 Executive management, 16 Experts Group on Streamlining of Greenhouse

and Energy Reporting, 28 External scrutiny, 50

F Financial and staffing resources summary, 24 Financial notes, 76–108 Financial statements, 61–108 Fraud prevention, 51 Freedom of information, 111

G Garnaut Climate Change Review, 23 Global adaptation, 41 Governance, 47 Graduates, 52 Greenhouse Action in Regional Australia, 29 Greenhouse and Energy Reporting, 27 Green Paper, 26–27, 31 Guide to report, vii

H Human resources, 51–56

I ICT Steering Committee, 49 Integrated regional vulnerability assessments,

37 International dialogue, 39 International Division, 39–40 International Forest Carbon Initiative, 42

7


K Kyoto Protocol, 27, 41, 42

L Letter of transmission, iii

M Mission, 12

N National Carbon Accounting System, 28, 40 National Carbon Accounting Toolbox, 29 National Climate Change Adaptation

Framework, 7 National Climate Change Adaptation Research

Facility, 34 National Coastal Vulnerability Assessment, 35 National Elevation Data Framework, 35 National Greenhouse Accounts, 28 National Greenhouse and Energy Reporting

Act 2007, 6, 27, 32 National Greenhouse and Energy Reporting

System, 6, 32 National Reserve System, 35

O 7

Occupational Health and Safety, 111 Occupational Health and Safety Committee, 49 Office of the Renewable Energy Regulator, 11 Ombudsman, 51 Online System for Comprehensive Activity

Reporting, 6 Organisational structure, 13 Outcome and outputs framework, 17 Outcome and output structure, 19 Output 1.1, 26–31

Analysis of performance, 26 Performance indicators, 31

Output 1.2, 33–37 Analysis of performance, 33 Performance indicators, 37

Output 1.3, 39–42 Analysis of performance, 39 Performance indicators, 42

Overview, 23 agency, 11 department, 12

P Partnerships, 36, 40 People values, 15 People value statement, 15 Performance indicators, 31, 37, 42 Portfolio structure, 11 Procurement, 58 Procurement Review Board, 49 Purchasing, 58

R Remuneration

Non-SES, 54 SES, 54

Renewable Energy Target, 30 Report on performance, 21–43

S Scheme Regulator, 27 Secretaries’ Committee on Climate Change, 23 Secretary, 16 Smartline project, 35 Staff awards, 60 Staff Consultative Committee, 49 Staffing, 53 Stakeholder Advisory Group, 33 Strategies and Coordination Division,

13, 26, 33, 39

T Three pillar approach, 23 Top management structure, 14

U United Nations Framework Convention on

Climate Change, 18, 28

V Vision, 12

W Wilkins Review, 23 Workforce planning, 52 Working Group on Climate Change and Water

(WGCCW), 28–31, 33


department of climate change and energy efficiency annual report 2007- 2008

Documents