ANNUAL REPORT 2014–15

ANNUAL REPORT 2014–15 ISSN 0728-4691 © Commonwealth of Australia, Australian Federal Police, 2015

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Contact officer for this report Inquiries about this report should be directed to: Manager Internal Audit and Business Analysis Workforce and Development Australian Federal Police GPO Box 401 Canberra ACT 2601 Phone: (02) 6131 5719 Email: [email protected]

General inquiries Post: Written requests for general information can be sent to: Australian Federal Police GPO Box 401 Canberra ACT 2601 Telephone: General inquiries can be made by phoning the AFP’s national switchboard on (02) 6131 3000. For freedom of information requests, phone the AFP on (02) 6131 6131 or send an email to [email protected]. Internet: For general information, go to the AFP website: www.afp.gov.au. For an electronic version of this annual report and previous annual reports, go to: www.afp.gov.au/media-centre/publications/annual-reports.aspx. 16 October 2015

The Hon Michael Keenan MP Minister for Justice House of Representatives Parliament House Canberra ACT 2600

Dear Minister

I am pleased to submit the Australian Federal Police Annual Report for the period 1 July 2014 to 30 June 2015. This report includes:

¢¢the annual report of the Australian Federal Police prepared in accordance with the Australian Federal Police Act 1979 (Cth) and the Public Governance, Performance and Accountability (PGPA) Act 2013 (Cth)

¢¢the annual report about authorities for assumed identities pursuant to section 15LD(1) of the Crimes Act 1914 (Cth)

¢¢the annual report on the National Witness Protection Program pursuant to section 30(2) of the Witness Protection Act 1994 (Cth).

This report has been prepared in accordance with the relevant acts and the Requirements for Annual Reports for Departments, Executive Agencies and Other Non-Corporate Commonwealth Entities.

A copy of this report is to be presented to each House of Parliament on or before 31 October 2015.

In accordance with section 10 of the Public Governance, Performance and Accountability Rule 2014, I hereby certify that the Australian Federal Police has prepared fraud risk assessments and fraud control plans, and has in place appropriate fraud prevention, detection, investigation and reporting mechanisms. The Australian Federal Police is also taking all reasonable measures to minimise the incidence of fraud in the agency and to investigate and recover the proceeds of fraud against the agency.

Yours sincerely

Andrew Colvin APM OAM Commissioner AFP PRINCIPAL LOCATIONS

National Headquarters Adelaide Office Edmund Barton Building Level 8, 55 Currie Street 47 Kings Avenue Adelaide SA 5000 Barton ACT 2600 (08) 8416 2811 (02) 6131 3000 Media inquiries: (02) 6131 6333 Brisbane Office 203 Wharf Street ACT Policing Spring Hill Qld 4000 Winchester Police Centre (07) 3222 1222 Cnr Benjamin Way and College Street Belconnen ACT 2617 Cairns Office (02) 6256 7777 422 Sheridan Street Media inquiries: (02) 6264 9460 Cairns Qld 4870 Adelaide Office (07) 4040 1777 Level 8, 55 Currie Street Darwin Office 4 Pedersen Road Marrara NT 0812 (08) 8980 1300

Hobart Office Level 7, 47 Liverpool Street Hobart Tas. 7000 (03) 6230 1510

Melbourne Office 383 La Trobe Street Melbourne Vic. 3000 (03) 9607 7777

Perth Office 619 Murray Street West Perth WA 6005 (08) 9320 3444

Sydney Office 110 Goulburn Street Sydney South NSW 2000 (02) 9286 4000

iv

CONTENTS

Letter of transmittal iii 6 GOVERNANCE AND ACCOUNTABILITY 93 AFP Principal Locations iv Chief of Staff 95

1 COMMISSIONER’S REVIEW 1 Corporate Governance 99 Ecologically Sustainable Development 2 OVERVIEW OF THE AFP 7 and Environmental Performance 102 Role and Functions 8 External Scrutiny 103 Strategic Priorities 9 Finance and Commercial 106 Reporting Structure 11 Human Resources 110 Strategic Leaders’ Group 13 Information and Communications Future Directions Project 14 Technology 118

3 PERFORMANCE OVERVIEW 17 7 FINANCIAL STATEMENTS 121

Outcome 1 National Policing 18 8 APPENDICES 171 Outcome 2 ACT Policing 29 Appendix A: Corporate Integrity 172

4 PERFORMANCE REPORT—OPERATIONS 31 Appendix B: Advertising and Market Research 178 Aviation 32 Appendix C: Staffing Statistics 179 Counter Terrorism 35 Appendix D: Entity Resource Crime Program 41 Statement and Resources for Outcomes 189 High Tech Crime Operations 54 Appendix E: List of Requirements 193 International Deployment Group 61 Protection 69 ANNEX A: ASSUMED IDENTITIES ANNUAL REPORT 2014–15 199 5 PERFORMANCE REPORT—SUPPORT 77 ANNEX B: NATIONAL WITNESS PROTECTION Forensics 78 PROGRAM ANNUAL REPORT 2014–15 203

Intelligence 82 SHORTENED FORMS 209 Operations Support 86 GLOSSARY 211

INDEX 213

v AFP ANNUAL REPORT 2014–15

TABLES

TABLE 1 PERFORMANCE OF PROGRAMME 1.1 FEDERAL POLICING AND NATIONAL SECURITY IN RELATION TO KEY PERFORMANCE INDICATORS 19

TABLE 2 PERFORMANCE OF PROGRAMME 1.1 FEDERAL POLICING AND NATIONAL SECURITY IN RELATION TO DELIVERABLE INDICATORS 21

TABLE 3 PERFORMANCE OF PROGRAMME 1.2 INTERNATIONAL POLICE ASSISTANCE IN RELATION TO KEY PERFORMANCE INDICATORS 27

TABLE 4 PERFORMANCE OF PROGRAMME 1.2 INTERNATIONAL POLICE ASSISTANCE IN RELATION TO DELIVERABLE INDICATORS 28

TABLE 5 DRUG SEIZURES 2013–14 AND 2014–15 43

TABLE 6 CONTRACTS WITHOUT AUDITOR-GENERAL ACCESS 2014–15 108

TABLE 7 EXPENDITURE ON CONSULTANTS 2011–12 TO 2014–15 109

TABLE A1 ALLEGED CONDUCT BREACHES RECORDED BY CATEGORY 2011–12 TO 2014–15 172

TABLE A2 ALLEGED CONDUCT BREACHES RECORDED BY SOURCE 2014–15 173

TABLE A3 FINALISED CONDUCT BREACHES BY CATEGORY 2014–15 174

TABLE A4 CONDUCT BREACHES ESTABLISHED BY TYPE 2014–15 175

TABLE A5 PROHIBITED DRUG TESTS CONDUCTED 2013–14 AND 2014–15 176

TABLE A6 AGE OF COMPLAINTS BEING CARRIED FORWARD TO 2015–16 (ONGOING AS AT 30 JUNE 2015) 177

TABLE A7 RUN TIME FOR RESOLUTION OF COMPLAINTS 177

TABLE B1 MEDIA COSTS DURING 2014–15 178

TABLE C1 ONGOING, NON-ONGOING AND CASUAL STAFF 30 JUNE 2014 AND 30 JUNE 2015 179

TABLE C2 AFP SENIOR EXECUTIVES (SUBSTANTIVE STAFF) 30 JUNE 2015 180

TABLE C3 AFP SENIOR EXECUTIVE PERFORMANCE BONUS PAYMENTS 2014–15 181

TABLE C4 AFP STAFF BY LOCATION AND GENDER 30 JUNE 2015 182

TABLE C5 LENGTH OF SERVICE OF AFP STAFF 30 JUNE 2015 183

TABLE C6 AFP WORKFORCE COMPOSITION 30 JUNE 2015 185

TABLE C7 OUTPOSTING TO OTHER AGENCIES / POLICE SERVICES, SECONDMENTS, TERRITORIES POLICE, PEACEKEEPING/POLICE DEVELOPMENT 30 JUNE 2015 186

TABLE C8 AFP STAFF IDENTIFYING AS ABORIGINAL AND/OR TORRES STRAIT ISLANDER BY SWORN STATUS AND EMPLOYMENT GROUP 30 JUNE 2014 AND 30 JUNE 2015 187

TABLE C9 AFP STAFF IDENTIFYING AS ABORIGINAL AND/OR TORRES STRAIT ISLANDER BY LOCATION AND GENDER 30 JUNE 2015 188

TABLE D1 ENTITY RESOURCE STATEMENT 2014–15 189

TABLE D2 EXPENSES FOR OUTCOME 1 191

TABLE D3 EXPENSES FOR OUTCOME 2 192

TABLE AA1 NATIONAL WITNESS PROTECTION PROGRAM EXPENDITURE 2014–15 208

TABLE AA2 TOTAL EXPENDITURE (BEFORE COSTS WERE RECOVERED) IN PREVIOUS YEARS 208

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FIGURES

FIGURE 1 SNAPSHOT OF ACHIEVEMENTS 2014–15 5

FIGURE 2 ORGANISATIONAL STRUCTURE AT 30 JUNE 2015 15

FIGURE 3 STAKEHOLDER SATISFACTION WITH THE AFP 2006–2015 (ACROSS OUTCOMES 1 AND 2) 23

FIGURE 4 CONVICTION RATES FOR ALL AFP CASES REACHING COURT AND FINALISED 2008–09 TO 2014–15 24

FIGURE 5 COMMUNITY SATISFACTION WITH AVIATION LAW ENFORCEMENT AND SECURITY 2009–2015 24

FIGURE 6 AFP DRUG HARM INDEX 2008–09 TO 2014–15 26

FIGURE 7 CRIMINAL ASSETS RESTRAINED 2008–09 TO 2014–15 26

FIGURE 8 TREND IN THE NUMBER OF COMPLAINTS AND ASSOCIATED ALLEGED BREACHES 2010–11 TO 2014–15 104

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1 COMMISSIONER’S REVIEW AFP ANNUAL REPORT 2014–15

This year for the Australian Federal Police (AFP) has been characterised by challenge and change. Organisational success achieved throughout the year is a testament to the dedication of the AFP work force. The agency diverted significant resources to meet the emerging terrorism threat, arresting 25 persons for terrorism related activity and disrupting a number of alleged planned events.

Additionally, the organisation commenced a process of reform to prepare itself for future challenges, signifying the AFP’s willingness to embrace uncertainty and maintain its role at the forefront of Australian national law efforts.

There was sustained high operational demand, both overseas and domestically, including:

¢¢The deployment of over 300 personnel to Ukraine, the Netherlands and other European locations to assist in recovering victims from the Malaysia Airlines flight MH17 downed in Ukraine on 17 July 2014. Investigative and forensic personnel continue to contribute to the ongoing international criminal investigation into the incident.

¢¢National security threat level rising to ‘high’ in September 2014, requiring the AFP to review and, where appropriate, adjust its security measures for staff and premises.

¢¢A rapid response to review security arrangements at the Parliament of Australia in late 2014, including an increase in personnel and systems to better protect the facility, its occupants and visitors.

¢¢The deployment in November 2014 of 641 personnel to assist Queensland and Commonwealth authorities in the hosting of the G20 Leaders’ Summit in Brisbane.

¢¢The continued growth of a national multi-agency Fraud and Anti-Corruption Centre hosted by the AFP to combat serious fraud impacting on the Australian community.

¢¢The deployment of an additional 54 AFP personnel to supplement the 109 deployed as part of the Regional Assistance Mission to Solomon Islands to support the Royal Solomon Islands Police Force in providing security for that nation’s national election.

¢¢Ongoing social and economic challenges created by the wide-scale organised supply of illicit drugs. The AFP and its partner agencies seized over nine tonnes of illicit narcotics and precursors in multiple investigations in support of efforts to remove illicit drugs from our communities.

These examples illustrate the changing law enforcement environment and the ongoing requirement for domestic and international law enforcement to work in partnership. The AFP’s response to the MH17 incident in particular is an example of how unexpected, complex and challenging scenarios can confront police agencies on an international scale.

The AFP’s commitment to maintain its contribution to protecting Australia’s national security interests remains high. This reality creates challenges for the organisation. National security concerns will undoubtedly shape AFP operations for many years, but this demand must be balanced with other Commonwealth priorities such as combatting serious and organised crime, complex fraud, people smuggling, cybercrime, and the provision of international police services and community policing. These challenges are in addition to the many hundreds of investigations, operations and community policing activities that are undertaken by the AFP throughout Australia and the world. Many examples of these are cited throughout this annual report.

2 1 Commissioner’s Review

The changing nature of traditional policing and the emerging threat of terrorism demonstrates the pressing need for effective policing, often in dangerous environments. This has been reinforced by events in which police have been targets of terrorism, illustrated in Melbourne in September 2014 when an AFP member and a Victoria Police member were attacked, highlighting the risks police officers face every day. A serious obligation for any police force is ensuring the safety of its workforce. Events during this year emphasised this obligation.

During the year I initiated a number of major projects to meet future challenges and to develop the necessary capabilities the AFP requires to meet whatever scenario may arise. A key initiative is the Future Directions Project which will provide an understanding of the environmental and law enforcement trends for the next 15 years. The Future Directions Project has already produced a Strategic Context Paper (launched in July 2015) which provides a stocktake of the organisation and presents the drivers for future change. A final paper, to be delivered in 2016, will inform a roadmap for the future AFP, providing greater insight into our future operating environment and the capabilities required to achieve success.

Work also commenced during the year to redefine the AFP’s business model, with an emphasis on structuring the organisation to deliver a three-pillared approach of Operations, Capacity and Capability. The new organisational structure came into effect on 1 July 2015 and aligns our capabilities and our capacity to ensure we meet operational challenges of the future. Organisational change is impossible to achieve without staff participation and ownership of the process. Our people are our most valuable asset and are therefore critical to our organisational success. They must be well trained, well led, supported and motivated. Their views and suggestions matter. Initiatives undertaken to engage our workforce during the year included an organisation-wide staff survey to gain an understanding of their views and expectations. The survey provided a window into what was going well, and where we need to improve. The results from this survey are driving a range of internal strategies aimed at ensuring our people are well supported as they go about the difficult and complex task of policing.

Commissioner Colvin awards Constable Hassan Fahd a bravery award at the 2015 Foundation Day Honours ceremony. Constable Fahd entered his elderly neighbour’s burning house, located her in thick smoke and brought her to safety

3 AFP ANNUAL REPORT 2014–15

Another initiative invigorating organisational capability is the Investigations Standards and Practices Group, a professional practice body that promotes consistency, standards and quality in support of investigations across the AFP. The end result will be a better supported and more technically proficient cohort of investigators.

The AFP continues its recruitment efforts to better reflect the community we serve. One hundred and seventy–eight police and protective service officer recruits commenced training during the year. Forty–seven of these came from a culturally and linguistically diverse background and 26 per cent of recruits were women. These results represent progress towards our diversity ambitions, but leave considerable room for continued growth and improvement. An additional pleasing result during the year was the AFP winning an award at the 2015 Australian Workplace Equality Index Awards. The organisation was rated the joint highest ranking public sector employer (along with the Department of Defence) in relation to workplace inclusion for lesbian, gay, bisexual, trans and intersex people.

In 2014–15 the AFP met or exceeded all of its key performance indicator targets set in the May 2014 Portfolio Budget Statements. These results were achieved within a one per cent variation from budget and with no significant adverse Australian National Audit Office findings.

The overall outlook for the AFP is bright. Our workforce remains committed to the organisation’s goals and objectives. The level of confidence in the AFP from the Australian community and Government remains high. The key to the AFP’s continued success is the ability to continually evolve in order to combat contemporary criminal and national security threats. Now more than ever, the AFP must be adaptable, responsive, flexible and innovative in order to retain its effectiveness for the Australian people, the Australian Government and our partner agencies.

I am confident that the AFP can meet the challenges of the coming year.

4 1 Commissioner’s Review

FIGURE 1 SNAPSHOT OF ACHIEVEMENTS 2014–15

5

2 OVERVIEW OF THE AFP AFP ANNUAL REPORT 2014–15

ROLE AND FUNCTIONS

The AFP is the Australian Government’s primary law enforcement agency. Its role is to enforce Commonwealth criminal law, contribute to combating organised crime and protect Commonwealth interests from criminal activity in Australia and overseas as a key member of the national security community. The AFP leads and contributes to many whole-of-government national security initiatives.

Section 8 of the Australian Federal Police Act 1979 (Cth) (the AFP Act) outlines the functions of the AFP, which are:

¢¢the provision of police services in relation to the laws of the Commonwealth and the property of the Commonwealth (including Commonwealth places) and the safeguarding of Commonwealth interests

¢¢the provision of police services in relation to the Australian Capital Territory, the Jervis Bay Territory and Australia’s external territories (Christmas Island, Cocos (Keeling) Islands and Norfolk Island)

¢¢the provision of protective and custodial functions as directed by the Minister

¢¢the provision of police services and police support services to assist or cooperate with an Australian or foreign law enforcement agency, intelligence or security agency, or government regulatory agency

¢¢the provision of police services and police support services to establishing, developing and monitoring peace, stability and security in foreign countries.

8 2 Overview of the AFP

STRATEGIC PRIORITIES

The AFP’s strategic priorities are determined in accordance with section 8 of the AFP Act and the Ministerial Direction issued on 12 May 2014 under section 37(2) of the AFP Act. The Ministerial Direction notes that the AFP is the Australian Government’s primary law enforcement agency and identifies a number of key strategic priorities:

¢¢countering the threat of terrorism and violent extremism to the safety and security of Australians and Australian interests, inside and outside Australia

¢¢preventing, deterring, disrupting and investigating serious and organised criminal activities impacting on the interests of the Australian community, including through collaborating with state and territory law enforcement to ensure that they have access to Commonwealth intelligence and operational resources

¢¢maintaining focus on investigating Commonwealth offences, particularly those relating to firearms and foreign bribery

¢¢leading the Commonwealth’s efforts to disrupt organised criminal groups by restraining and seizing their assets and unexplained wealth

¢¢contributing effectively to Australia’s border management and security, particularly by protecting Australia from people smuggling through prevention, deterrence and disruption

¢¢contributing effectively to the Australian Government’s international law enforcement interests, including matters involving cooperation with key international partners to combat transnational organised crime and corruption

¢¢responding to ‘000’ emergencies, law and order capacity-building missions, and participation in internationally mandated peace operations

¢¢countering the threat of cybercrime, including through achieving and maintaining a technological edge over criminals

¢¢leading and managing the law enforcement and crime prevention aspects of aviation security

¢¢ensuring that specific individuals, establishments and events, identified by the Australian Government as being at risk, are protected

¢¢where possible, identifying emerging criminal threats to the national interest and, for issues in which the AFP has operational expertise, advising on appropriate approaches to counter such threats

¢¢providing leadership to, and working with, other agencies to actively protect Commonwealth revenue

¢¢taking a leadership role and collaborating with state and territory law enforcement to deliver national law enforcement initiatives to disrupt the operation of criminal gangs, reduce the proliferation of child exploitation material and reduce the harm caused by illicit drugs

¢¢coordinating effectively with the Attorney-General’s Department to provide a united portfolio approach on law and justice aid issues

¢¢contributing effectively to whole-of-government efforts to prevent Australia from being a safe haven for proceeds of crime, including from corruption, or used for money laundering purposes

9 AFP ANNUAL REPORT 2014–15

¢¢actively contributing to broader government programs or initiatives to ensure that they are informed by the AFP’s operational experience.

The focus of the AFP’s resource management strategy is the flexible application of resources to activities that are likely to have the greatest impact on criminal networks and security threats, both within Australia and overseas.

In 2014–15 the AFP:

¢¢expanded the National Anti-Gangs Squad to include a strike team in Western Australia

¢¢supported the whole-of-government United Nations Security Council effort through delivery of policing expertise, advice and capacity development

¢¢delivered official development assistance programs in the Pacific and Timor-Leste

¢¢maintained strong liaison and operational links with international partners to disrupt serious criminal and national security threats

¢¢contributed to the whole-of-government approach to prevent corruption.

10 2 Overview of the AFP

REPORTING STRUCTURE

The AFP’s outcomes, together with the related programs, are described below. The description of outcomes includes performance indicators and targets used to assess and monitor the performance of the AFP in achieving government outcomes. As a result of ongoing review of the AFP performance framework, indicators are now categorised as effectiveness or deliverable metrics. OUTCOME 1

Outcome 1 contributes to reduced criminal and security threats to Australia’s collective economic and societal interests through co-operative policing services.

The AFP has two programmes under Outcome 1: Federal Policing and National Security; and International Police Assistance. Both programmes emphasise federal operational policing and capacity development roles and acknowledge key features of the current environment: i. threats to Australians and Australia’s interests have an international base ii. organised serious crime represents, in itself, a security threat to Australian interests iii. weak rule of law undermines development and provides opportunities for terrorist and other criminal enterprises to flourish.

These programmes integrate prevention and disruption priorities for crime reduction and impede criminal elements that threaten the security of Australians and Australian interests.

PROGRAMME 1.1: FEDERAL POLICING AND NATIONAL SECURITY

Programme 1.1, Federal Policing and National Security, focuses on reducing criminal and security threats to Australia’s collective economic and societal interests by promoting the safety and security of Australian communities and infrastructure; preventing, deterring, disrupting and investigating serious and organised crime and crimes of Commonwealth significance; and ensuring effective collaboration with Commonwealth, state and territory and international partners.

Programme 1.1 incorporates the following areas:

¢¢Aviation, Counter Terrorism and Protection, which focus on preventing security threats

¢¢the Crime Program, which includes the International Network and a range of joint task forces with Commonwealth, state, territory and private sector partners (including the Criminal Assets Confiscation Taskforce and the National Anti-Gangs Squad)

¢¢Close Operational Support, which provides forensics, intelligence, legal, litigation, security, coordination and communication services. These services ensure the AFP remains well positioned to address advancements in criminal use of emerging technologies. High Tech Crime Operations investigates specific offences through its Cyber Crime and Child Protection teams and provides the organisation with technical and physical operations support across all crime types.

11 AFP ANNUAL REPORT 2014–15

PROGRAMME 1.2: INTERNATIONAL POLICE ASSISTANCE

Programme 1.2, International Police Assistance, reduces criminal and national security threats to Australia’s collective economic and societal interests by delivering collaborative law and order capacity development missions, participating in internationally mandated peace operations and providing civil policing assistance in accordance with Australian foreign policy priorities. OUTCOME 2

Outcome 2 contributes to a safe and secure environment through policing activities on behalf of the Australian Capital Territory Government.

PROGRAMME 2.1: ACT COMMUNITY POLICING

The primary aim for Outcome 2 is the provision of a community policing capacity to the ACT Government. AFP activities in this regard include the four key outputs of crime and safety management, road safety, prosecution and judicial support, and crime prevention.

12 2 Overview of the AFP

STRATEGIC LEADERS’ GROUP

The Strategic Leaders’ Group is the peak advisory committee of the AFP and assists the Commissioner in making decisions and exercising his statutory responsibilities and delegations.

The executive members of the Strategic Leaders’ Group are the Commissioner (Chair), the three Deputy Commissioners, the Chief Operating Officer, the ACT Chief Police Officer and all national managers. It also has two external (non-AFP) members whose role is to provide an independent perspective and insight into the group’s deliberations.

The group meets to drive strategic outcomes for the AFP consistent with Ministerial Direction and organisational requirements. It discusses and provides advice on significant strategic matters facing the organisation, enabling a streamlined approach to managing the business of the AFP across its many diverse functions.

During 2014–15 the Strategic Leaders’ Group considered many issues, including:

¢¢developing the AFP Future Directions Project to consider the future strategic direction of the AFP and its capability requirements

¢¢endorsing a revised organisational structure as part of the AFP Reform Agenda to better align and distinguish between operational outcomes and capabilities to ensure the organisation is as flexible and responsive as possible

¢¢formalising the Executive Leadership Committee and streamlined governance structures to support the new organisational structure

¢¢responding to the evolving national security environment and the risk to law enforcement personnel, and reinforcing workplace safety and security arrangements

¢¢responding to critical and emerging law enforcement issues on a national and international scale.

13 AFP ANNUAL REPORT 2014–15

FUTURE DIRECTIONS PROJECT

The AFP Future Directions project was established in March 2015 to assess the future challenges for the AFP and ensure that the organisation has the long-term capability to meet those challenges. The project is initially exploring three themes:

1. protecting Australians

2. protecting Australia’s interests

3. AFP health.

The project, led by the AFP Senior Executive, is supported by an Advisory Board which includes:

¢¢Mr Graham Ashton, the Chief Commissioner of Victoria Police and former AFP Deputy Commissioner Capability (Advisory Board member from 1 July 2015)

¢¢Sir Angus Houston, Special Envoy to Ukraine in relation to MH17 and former Chief of the Defence Force

¢¢Mr Warwick Jones, Executive Director of the Australian Institute of Police Management

¢¢Dr Martin Parkinson, former Secretary of the Department of the Treasury

¢¢Dr Helen Szoke, Chief Executive Officer of Oxfam Australia

¢¢Professor Michael Wesley, Director of the Coral Bell School of Asia Pacific Affairs at the Australian National University.

Stage 1 of the project—the launch of a Strategic Context Paper—occurred in July 2015. This will form the basis for consultations and discussions with partner agencies across government, internal AFP stakeholders, industry partners and academia in Stage 2. Final stages of the project will lead to the creation of an ‘AFP Futures’ document in 2016, which will be the roadmap for the future of the AFP.

14 2 Overview of the AFP

FIGURE 2 ORGANISATIONAL STRUCTURE AT 30 JUNE 2015

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3 PERFORMANCE OVERVIEW AFP ANNUAL REPORT 2014–15

OUTCOME 1 NATIONAL POLICING

Outcome 1: Reduced criminal and security threats to Australia’s collective economic and societal interests through co-operative policing services

Highlights

¢¢All 11 Key Performance Indicators (KPIs) met or exceeded the targets set in the AFP Portfolio Budget Statements 2014–15

¢¢All but two of the 18 deliverable indicator targets were met

¢¢Strong operational results were achieved despite sustained demand and focus on counter terrorism activity throughout the year

¢¢A record level of criminal assets was restrained (AUD$246.6 million)

¢¢An increased amount of illicit drugs was seized (9,367 kg) compared with recent years

¢¢Overall conviction rates remained above 90 per cent

¢¢Stakeholder satisfaction and public confidence were maintained above target levels despite some decreases from previous record highs.

PROGRAMME 1.1 FEDERAL POLICING AND NATIONAL SECURITY

The Federal Policing and National Security Programme focuses on preventing, disrupting and investigating transnational and serious and organised crime, and threats to national security. In 2014–15 this programme met or exceeded all nine KPI targets and all but two of the 14 deliverable indicator (D) targets (see Tables 1 and 2 respectively). Comparison with previous years shows that, in the main, strong results were maintained.

Success under this programme is shown through strong cooperation between agencies (KPI 1, 92 per cent satisfaction) and successful court outcomes (KPI 2, 94 per cent conviction rates). Further details about the annual stakeholder survey are in Figure 3. The number of investigations finalised at court has been maintained (Figure 4). Specific examples of operations and the full disruptive impact of the AFP interventions are provided in Chapter 4.

There was a sustained focus on national security operations throughout 2014–15. The attacks on police (Melbourne) and the public (Martin Place siege, Sydney) reflect an escalation of the threat level and the requirement for even greater effort in prevention and disruption. From a KPI perspective this is shown in the higher percentage of time spent in operational activity (D3, 99 per cent) and, for the first time, AFP Counter Terrorism being involved in response activity rather than prevention (D2, 98 per cent, with the 100 per cent target therefore not met). Further details of key AFP Counter Terrorism operations are provided in Chapter 4 along with details on the National Disruption Group and diversion activities to address radicalisation and combat terrorism.

18 3 Performance Overview

TABLE 1 PERFORMANCE OF PROGRAMME 1.1 FEDERAL POLICING AND NATIONAL SECURITY IN RELATION TO KEY PERFORMANCE INDICATORS

Key Performance Indicator 2011–12 2012–13 2013–14 2014–15 2014–15 Met (KPI) Result Result Result Result Target

KPI 1 Level of external client/ 92% 91% 93% 92% 85% Ye s stakeholder satisfaction (% of clients satisfied or very satisfied)1

KPI 2 Percentage of cases 95% 93% 95% 94% 90% Ye s before court that result in conviction

Counter Terrorism

KPI 3 Counter terrorism 100% 100% 100% 100% 90% Ye s investigations that result in a prosecution, disruption or intelligence referral outcome

Aviation

KPI 4 Level of community 82% 86% 87% 78% 75% Ye s confidence in the contribution of the AFP to aviation law enforcement and security (percentage of Aviation network users satisfied or very satisfied)2

KPI 5 Priority 1: within 82% 85% 82% 76% 75% Ye s Response to 5 minutes aviation law enforcement Priority 1: within 97% 97% 94% 92% 90% Ye s and/or 10 minutes security Priority 2: within 94% 92% 91% 89% 75% Ye s incidents in 15 minutes accordance with priority Priority 2: within 97% 95% 94% 93% 90% Ye s response 20 minutes times Priority 3: within 100% 99% 99% 99% 75% Ye s 90 minutes

Priority 3: within 100% 100% 99% 99% 90% Ye s 120 minutes

Priority 4: within 100% 100% 100% 99% 90% Ye s 24 hours

19 AFP ANNUAL REPORT 2014–15

Key Performance Indicator 2011–12 2012–13 2013–14 2014–15 2014–15 Met (KPI) Result Result Result Result Target

Protection

KPI 6 Number of avoidable 0.03 0.00 0.02 0.03 <4 Ye s incidents per 5,000 Protection hours3

Crime Program

KPI 7 Return on investment 8 7 9 5 >1 Ye s for investigation of transnational crime

KPI 8 Assets restrained $90.9m $62.5m $134.0m $246.6m Increase4 Ye s

High Tech Crime Operations

KPI 9 Increased or reinforced 86% 88% 90% 96% 85% Ye s cyber safety and security awareness (% of surveyed sample indicating increased awareness or reinforced awareness after delivery of presentations)

1. KPI 1 is based on the AFP Business Satisfaction Survey.

2. KPI 4 is based on the AFP Airport Consumer Confidence Survey.

3. ‘Avoidable incidents’ are defined as incidents that could have been avoided through physical action, intervention or reasonable intelligence, that result in death, injury or loss of dignity or embarrassment to those individuals and interests identified by the Commonwealth Government or the AFP as being at risk. One avoidable incident was recorded in 2014–15: a vehicle accident during a Close Personal Protection movement, in which a bollard rose and struck a car containing the Acting Prime Minister.

4. ‘Increase’ is defined as an increase in assets restrained relative to the previous five-year average (AUD$65.6 million).

20 3 Performance Overview

TABLE 2 PERFORMANCE OF PROGRAMME 1.1 FEDERAL POLICING AND NATIONAL SECURITY IN RELATION TO DELIVERABLE INDICATORS

Deliverable 2011–12 2012–13 2013–14 2014–15 2014–15 Met

Result Result Result Result Target

Counter Terrorism

D1 Percentage of time spent on 98% 96% 99% 96% 95% Ye s high to very high impact cases

D2 Percentage of counter 100% 100% 100% 98% 100% No terrorism activities that are preventative (not responsive)

D3 Percentage of time spent 85%/ 82%/ 96%/ 99%/ ≥75%/ Ye s on operational activity (versus capacity development activity) 15% 18% 4% 1% <25%

Aviation

D4 Proportion of resources 95% 90% 90% 94% 70% Ye s used to undertake proactive and intelligence-led counter terrorism, crime management, public order and first response operations

Protection

D5 Percentage of time 99%/ 99%/ 99%/ 99%/ ≥80%/ Ye s dedicated to preventative versus response activities (Uniform 1% <1% 1% 1% <20% Protection)1

D6 Percentage of time 21%/ 32%/ 16%/ 8%/ <40%/ Ye s dedicated to preventative versus response activities (Close 79% 68% 84% 92% ≥60% Personal Protection)2

Crime Program

D7 Percentage of serious and 58% 60% 75% 70% 65% Ye s organised crime operations conducted under joint agency investigations

D8 Percentage of cases 31% 32% 35% 32% 30% Ye s targeting the criminal economy

21 AFP ANNUAL REPORT 2014–15

Deliverable 2011–12 2012–13 2013–14 2014–15 2014–15 Met

Result Result Result Result Target

Forensics

D9 National Association of Current Current Current Current Maintained Ye s Testing Authorities Accreditation (ISO 17025) in all relevant forensic disciplines

D10 Provision of timely technical 95% 98% 94% 96% 90% Ye s intelligence to the AFP and partner agencies (percentage of responses within five business days)

D11 Number of forensic service Inside Above Inside Inside Within Ye s requests completed3 limits lower limits limits 95% limit limits

High Tech Crime Operations

D12 Investigations: percentage 86% 86% 86% 87% 80% Ye s of time spent on high to very high impact cases

D13 Investigations: number of 109 101 96 55 90 No high to very high impact cases reaching court

D14 Percentage of AFP personnel 80% 92% 83% 88% 85% Ye s having completed technology- related (Tier 1) training4

1. Preventative activities for Uniform Protection include active patrolling; monitoring of electronic measures, alarms and CCTV; and access/egress support. Response activities include responses to security incidents.

2. Preventative activities for Close Personal Protection include close personal protection advances, major event planning and training. Response activities include provision of close personal protection and operational responses to major events.

3. Control chart methodology is used to determine 95% confidence limits.

4. The D14 target increased from 80% in 2013–14 to 85% in 2014–15.

22 3 Performance Overview

AFP BUSINESS SATISFACTION SURVEY

The AFP Business Satisfaction Survey (BSS) provides an indication of the level of cooperation between the AFP and other law enforcement agencies, and other public and private sector organisations.

Successful policing at the federal level requires effective cooperation across both domestic and international jurisdictions. The BSS is one method that the AFP uses to measure the strength of external relationships and identify where there is room for improvement. The BSS has been conducted annually in its current online format since 2006. In 2015 almost 2,000 individuals from over 500 organisations were invited to participate, indicating the growth and diversity in the AFP’s remit and reach.

Increasing levels of satisfaction have been observed for several years but were not maintained in 2015. Analysis showed that, even though the decrease was only three percentage points overall (from 92 per cent to 89 per cent), it was not limited to a single location or business area and was seen across all sectors (law enforcement, government and industry). The most common response to the question on how the AFP could improve was to address resourcing and to increase the level of interaction with clients. Overall, however, the comments and feedback were very positive, with an emphasis on the professionalism of staff and successful working relationships.

The value that the AFP places on inter-agency relationships is shown by the inclusion of partnership policing as one of four strategic initiatives described in the new AFP Corporate Plan 2015–19 (accessible at www.afp.gov.au). Key activities associated with this initiative include continuing to develop strategic partnerships, especially with the private sector; and ongoing assessment of the AFP’s global footprint. Surveys such as the BSS are tools that can be used to monitor the progress and the impact of these strategies.

FIGURE 3 STAKEHOLDER SATISFACTION WITH THE AFP 2006–2015 (ACROSS OUTCOMES 1 AND 2)

100%

80%

76% 80% 81% 87% 88% 85% 90% 90% 92% 89% 60%

40%

20%

0% Survey year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Respondents 220 450 524 599 710 865 826 831 867 856

Very Satisfied Satisfied Neutral Dissatisfied

23 AFP ANNUAL REPORT 2014–15

FIGURE 4 CONVICTION RATES FOR ALL AFP CASES REACHING COURT AND FINALISED 2008–09 TO 2014–15

500 93% 100% 99% 96% 96% 95% 95% 94% 400 80% s)

300 60%

200 40%

100 20% viction rate (line) Con Finalised cases (bar 0 0% 2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 Year finalised

Conviction No Conviction

Note: ‘Conviction’ denotes cases with at least one defendant convicted or the case proven without conviction.

AFP Aviation and AFP Protection met all their KPI and deliverable targets in 2014–15. This included Aviation response times (KPI 5) and community satisfaction (KPI 4).

The Airport Consumer Confidence Survey was conducted in February 2015 and consisted of 1,061 face-to-face interviews across six major airports. The overall result of 78 per cent satisfaction exceeded the target of 75 per cent but was nine percentage points lower than the record high satisfaction level achieved in 2014 (Figure 5). Analysis showed that there was a consistent shift at all airports and a movement towards a neutral view rather than increased dissatisfaction. The result also appeared to be associated with a lower awareness of the police presence at airports and of the contribution that the AFP makes towards aviation law enforcement and security. Details on successful drug detections and fraud investigations conducted by the AFP at airports in 2014–15 are provided in Chapter 4.

FIGURE 5 COMMUNITY SATISFACTION WITH AVIATION LAW ENFORCEMENT AND SECURITY 2009–2015

100%

75% Target

70% 76% 77% 82% 86% 87% 78% 50%

25%

0% Survey year 2009 2010 2011 2012 2013 2014 2015

Respondents 1,917 1,472 1,940 1,984 1,958 1,032 1,061

Very Satisfied Satisfied Neutral Dissatisfied

24 3 Performance Overview

The AFP Protection function maintained positive results in 2014–15 with a low avoidable incident rate (KPI 6—a single incident) and a focus on preventative activities across Uniform Protection (D5) and Close Personal Protection (D6) while maintaining a busy calendar of special events such as providing protective security services to the 2014 G20 Leaders’ Summit in Brisbane and leading increased security and response operations at Parliament House. Details are provided in Chapter 4.

Despite providing assistance to the various national security operations throughout the year, and the unexpected and rapid deployment of staff to assist with the crime scene operations and investigation of the downing of MH17 in Ukraine, the AFP operations areas had a particularly successful year. All KPI and deliverable targets were met:

¢¢As in previous years, high return on investment (KPI 7) was achieved, with social benefits derived from disrupting crime (through finalised drug and economic investigations) outweighing the costs of investigations, legal processes and detainment. This indicator is based on a high Drug Harm Index value of AUD$2.6 billion (Figure 6) based on large drugs seizures (9,367 kilograms; Table 5 in Chapter 4). Details of disruptions of key drug importations such as Operation Koi and Operation Azoic are provided in Chapter 4. The other benefit contribution to this KPI is the economic return value of AUD$985.5 million derived from the value of successful fraud and money laundering investigations. Further details of these operations being undertaken by the money laundering and fraud and anti-corruption teams, waterfront task forces and the Criminal Assets Confiscation Taskforce (CACT) are described in Chapter 4.

¢¢CACT restrained a record value of AUD$246.6 million in criminal assets in 2014–15—well above the target of AUD$65.6 million based on the average of the previous five years (KPI 8, Figure 7).

¢¢The child protection area of the High Tech Crime Operations function continued to focus on prevention and disruption activity and continued to show high levels of efficacy of their cybersafety presentations (KPI 9, 96 per cent). Further details of the continued expansion of this program into state jurisdictions and the Pacific region are in Chapter 4.

¢¢High Tech Crime Operations maintained focus on high-impact operations (D12) and staff awareness (D14) but did not meet the target for high-impact cases reaching court (D13) (only 55 cases reached court compared with a target of 90). The reason for this gap is that this indicator now provides only partial coverage of all outputs from the combined operational efforts across Australia as a result of a new joint approach to combating child exploitation across Australia, with integrated teams consisting of AFP members and state police (details in Chapter 4).

¢¢Despite increased demand from AFP Counter Terrorism and specialist deployment to the Netherlands and Ukraine, AFP Forensics continued to exceed their service-level targets for quality (D9), timeliness (D10) and throughput (D11).

25 AFP ANNUAL REPORT 2014–15

FIGURE 6 AFP DRUG HARM INDEX 2008–09 TO 2014–15

6 $5.6 5

4

$2.8 3 $2.6 $2.5 $2.4 $2.3 2

1 $0.7

Drug Harm Index ($billion) 0 2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 Year seized

Illicit drugs Precursors

Note: Values are based on AFP seizures (excluding international seizures).

FIGURE 7 CRIMINAL ASSETS RESTRAINED 2008–09 TO 2014–15

300

250 $246.6

200

150 $134.0

100 $90.9 $62.5 50 $22.1 $19.1 $21.4 0 Amount restrained ($million) 2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 Financial year

Assets restrained Target

Note: Targets were introduced in 2011–12 (based on the previous five-year average).

26 3 Performance Overview

PROGRAMME 1.2 INTERNATIONAL POLICE ASSISTANCE

The International Police Assistance Programme contributes to reducing criminal and national security threats to Australia’s collective economic and societal interests through the AFP’s International Deployment Group (IDG). AFP delivers collaborative law and order police development missions, participates in internationally mandated peace operations, and provides civil policing assistance in accordance with Australian foreign policy priorities.

In 2014–15 all KPI and deliverable indicator targets for the International Police Assistance Programme were met. Evidence of positive outcomes was shown through positive stakeholder feedback and independent evaluation (Table 3). Achievement of deliverables was shown through the training numbers and the regional distribution of resources in line with foreign policy (Table 4).

Although the level of client satisfaction across the International Police Assistance Programme (KPI 10) decreased this year compared with previous years, it remained above target. The decrease may be attributed in part to a redirection of resources from across the AFP to manage responses to the MH17 recovery operation and in support of the security for G20— both operational necessities. The AFP is continuing to work with partner agencies to manage expectations and to ensure expectations are shared and understood.

The 2014–15 independent evaluations of the Samoa–Australia Police Partnership (SAPP) and Pacific Police Development Program—Regional (PPDP-R) highlighted positive outcomes the AFP contributes to in the region (KPI 11—details in Table 3 and Chapter 4).

TABLE 3 PERFORMANCE OF PROGRAMME 1.2 INTERNATIONAL POLICE ASSISTANCE IN RELATION TO KEY PERFORMANCE INDICATORS

Key Performance Indicator 2011–12 2012–13 2013–14 2014–15 2014–15 Met

Result Result Result Result Target

KPI 10 Level of external client/ 92% 90% 95% 86% 85% Ye s stakeholder satisfaction (% of clients satisfied or very satisfied)1

KPI 11 External territories/ na na Positive Positive Positive Ye s mission performance evaluation2 feedback feedback feedback na = not applicable

1. KPI 10 is based on the AFP Business Satisfaction Survey.

2. Feedback included that the PPDP-R is ‘very well regarded by police organisations in the Pacific … program implementation is flexible, tailored, and responsive to lessons learned’ and SAPP support has ‘impacted directly on the improved performance of the Samoa Police Service’.

27 AFP ANNUAL REPORT 2014–15

TABLE 4 PERFORMANCE OF PROGRAMME 1.2 INTERNATIONAL POLICE ASSISTANCE IN RELATION TO DELIVERABLE INDICATORS

Deliverable 2011–12 2012–13 2013–14 2014–15 2014–15 Met

Result Result Result Result Target

D15 Number of police and other na na 3,645 4,896 3,500 Ye s law and justice officials trained1

D16 Percentage of mission 90% 88% 95% 99% 85% Ye s resources committed to countries in the Asia–Pacific region

D17 Percentage of mission 90% 90% 88% 89% 80% Ye s resources committed to countries with rule of law indicators below the international median2

D18 Percentage of mission na na 89% 90% 85% Ye s resources committed to Australian national security and aid priority countries3 na = not applicable

1. Annual targets are in accordance with the overall target in Australia’s Comprehensive Aid Policy Framework to 2015–16.

2. The international median is based on annual figures published by the World Bank.

3. National security and aid priority countries are Afghanistan, Bangladesh, Burma, Cambodia, Indonesia, Pakistan, Papua New Guinea, Philippines, Solomon Islands, Timor-Leste, Vanuatu and Vietnam, as outlined in Australia’s Comprehensive Aid Policy Framework to 2015–16.

28 3 Performance Overview

OUTCOME 2 ACT POLICING

Outcome 2: A safe and secure environment through policing activities on behalf of the Australian Capital Territory Government.

ACT Policing delivers quality policing services to create a safer and more secure community. In accordance with the Purchase Agreement 2014–15, the four main outputs against which ACT Policing’s performance is measured are:

1. crime and safety management

2. traffic law enforcement and road safety

3. prosecution and judicial support

4. crime prevention.

The Purchase Agreement is entered into between the Australian Capital Territory Minister for Police and Emergency Services, the Commissioner of the AFP and the Chief Police Officer for the ACT. The Purchase Agreement specifies the type, level and cost of the services that the Australian Capital Territory Government requires from ACT Policing on an annual basis. In addition, the Minister for Police and Emergency Services issues a Ministerial Direction in which the special areas of focus for the year are outlined.

ACT Policing provides quality policing services to the Australian Capital Territory, including community policing and investigation of crime, in partnership with government and non- government agencies and the broader community.

More information on ACT Policing, including performance against targets, can be found in the ACT Policing annual report, available at www.police.act.gov.au or through ACT Policing Media and Marketing on (02) 6264 9460 or [email protected].

29

4 PERFORMANCE REPORT—OPERATIONS AFP ANNUAL REPORT 2014–15

AVIATION

Highlights

¢¢AFP Aviation responded to and provided assistance to the Australian Customs and Border Protection Service Counter Terrorism Units. Aviation has undertaken initial investigations in conjunction with the AFP Counter Terrorism function

¢¢The AFP’s Currency and Drug Detection Dog Team seized currency to the sum of AUD$4,289,705

¢¢The AFP continued to implement Program Jupiter, with the completion of the AFP’s Operations Centre in Cairns and the Canine Operations Centre in Brisbane.

OBJECTIVE

The AFP’s Aviation function provides national and aviation security at Australia’s nine major airports (Adelaide, Brisbane, Cairns, Canberra, Darwin, Gold Coast, Melbourne, Perth and Sydney). AIRPORT POLICING

The AFP performs high-visibility community policing at the major airports. Aviation members work in partnership with Commonwealth agencies, state law enforcement, airlines and airport operators to provide a layered approach to security and law enforcement.

The AFP performs prevention and response activities ensuring the aviation environment is hostile to organised crime and security threats. To ensure that our activities are effective, we conduct and participate in incident preparedness exercises at all major airports.

The AFP gathers intelligence, conducts criminal investigations into aviation-specific crime and provides flexible regional rapid deployment to regional airports.

Airport Police Commanders at each of the major airports are responsible for the coordination, command and control of aviation security and airport policing activities.

Air Security Officers provide an intelligence-led policing capability on selected domestic and international flights to safeguard Australian registered aircraft and their passengers and crews. The role of Air Security Officers is to contain and resolve high-risk incidents aboard aircraft and to take measures to prevent acts of violence on aircraft and in the aviation environment. They also contribute to the AFP Aviation capability at Australian airports by way of observation, reporting and response.

The AFP National Canine Program provides a highly mobile and effective screening capability in the major airports, AFP national operations (investigations and protection) and ACT Policing. The program detects, deters and mitigates threats in the aviation environment and assists off-airport AFP and local state and territory police jurisdictions.

Airport Investigation Teams proactively target serious and organised criminality and ‘trusted insiders’ such as aviation employees who exploit, or aim to exploit, infrastructure and security vulnerabilities at the major airports.

In 2014–15 Program Jupiter continued to deliver long-term, purpose-built, high-quality AFP police facilities in support of the major airports. Under the program, the AFP’s Operations Centre in Cairns and the Canine Operations Centre in Brisbane were completed.

32 4 Performance Report—Operations

AFP officers perform high-visibility policing at Sydney Airport

DETECTION AND INVESTIGATIONS

The AFP is committed to combating all forms of criminality in the airstream and continues to detect and investigate serious crime.

Activities in 2014–15 included the following:

¢¢In February 2015 a New Zealand flight arrived at Melbourne International Airport and a passenger was subjected to screening processes. An examination of the passenger’s belongings identified anomalies that suggested a suspect concealment within the retractable handles of her four check-in bags. A presumptive ion scan test on the lining of the bags returned a positive result for methamphetamine. An estimated 1.5 kilograms of methamphetamine was recovered. The passenger was arrested and the matter is currently before the courts.

¢¢In January 2015 at Perth Domestic Airport, a passenger was reported to be acting suspiciously. Australian currency to the value of AUD$146,450 was located in his luggage and AUD$4,760 was found in his pocket. The passenger was charged with dealing with property suspected of being proceeds of crime. The matter is currently before the courts.

¢¢On 3 March 2015, during an AFP operation in the departure lounge at Perth Domestic Airport, an AFP Currency and Drug Detection dog identified a suspicious suitcase. The AFP searched the owner’s luggage and located AUD$140,950. The man was subsequently charged with dealing in money suspected to be the proceeds of crime.

¢¢In 2015 an airport employee was charged with attempting to import a total of 98.8 kilograms of cocaine. Investigations began in April 2014 when bags containing 74.8 kilograms of cocaine were intercepted at the Sydney International Airport terminal. The matter was investigated and it was found that the same man allegedly removed a similar package in February 2015, which was believed to contain 24 kilograms of drugs. The estimated total street value of the combined drugs is nearly AUD$19 million.

33 AFP ANNUAL REPORT 2014–15

‘TRUSTED INSIDER’

In October 2014 a manager from Brisbane Airport was reported to have committed fraud offences against his Commonwealth employer. The offences involved the use of false documentation to obtain a benefit by way of allowances and payments from the employer to an estimated value of AUD$380,000.

The suspect was categorised as a ‘trusted insider’ because of his occupation and role at Brisbane Airport.

In March 2015, the matter went before the courts and the offender pleaded guilty to two counts of obtaining a financial advantage by deception. He is currently remanded in custody pending his appearance before the Supreme Court of Queensland for sentencing.

PROACTIVE COMMUNITY AWARENESS RAISING CREDIT CARD KNIVES

Credit card knives are manufactured in a way that disguises or conceals the blade. They are designed to give the impression that they are an innocuous item such as a plastic card. Their dimensions are similar to those of a credit card.

The AFP continues to raise awareness by educating the travelling public and reinforcing the message that credit card knives are a prohibited weapon and they are not permitted on aircraft.

In most states and territories it is illegal to buy a credit card knife. In all states and territories it is an offence to sell a knife that is manufactured to disguise or conceal the blade. The penalties for carrying a prohibited item through an aviation security checkpoint or onboard an aircraft are serious.

The AFP’s preventative strategies include working in partnership to target this criminal activity by engaging with companies such as eBay.

On 26 May 2015, as a result of this engagement, 10 listings that advertised credit card knives were forced to withdraw from the eBay site. An additional eight credit card knives listings by international sellers that shipped to Australia were removed the following day. On 20 June 2015 an additional two listings were removed.

The AFP continues to monitor internet sites that offer this illegal product for sale in Australia.

AIRPORT WATCH

Airport Watch, the AFP’s aviation community crime prevention strategy, encourages people who work or conduct business at airports to identify and report suspicious behaviour to the AFP. Airport Watch continued to operate at the major airports during 2014–15.

34 4 Performance Report—Operations

COUNTER TERRORISM

Highlights

¢¢In 2014–15 the AFP conducted eight disruption activities that resulted in 25 people being charged with a number of terrorism and other offences

¢¢The National Disruption Group was established to bring together the AFP and its partner agencies to combat terrorism

¢¢The AFP co-hosted with the Philippines National Police the 2014 Counter Terrorism Leaders Forum in Cebu, Philippines. The forum brings together international partners to discuss current and emerging security matters.

OBJECTIVE

The AFP’s Counter Terrorism function prevents, disrupts and investigates terrorist activity against Australia and Australian interests, both domestically and internationally. CURRENT ENVIRONMENT

The Syria–Iraq conflict is a multi-faceted threat to the Australian community.

The AFP continues to experience a significant rise in operational activity that can be directly attributed to the conflicts in Syria and Iraq. This level of activity is anticipated to continue to increase as the number of Australians seeking to support the conflict continues to grow.

Of significant concern in the current operating environment is the increasing number of Australians who are travelling overseas to participate in the conflict or are planning attacks onshore. Australians are attempting to travel to the conflict zone to fight; planning attacks in Australia in support of the conflict; or providing financial and other support to the conflict.

Specific threats that arise from the Syria–Iraq conflict include the following:

¢¢returning fighters may have become further radicalised, trained, motivated and capable of conducting terrorism related activities on Australian soil

¢¢those who remain in Australia (including citizens who have been prevented from leaving) and support those fighting overseas may themselves become radicalised, look for recruitment opportunities, plan onshore attacks, seek training from those who return and engage in criminal activity in order to provide material (monetary) support

¢¢networks and combat experience can be leveraged to facilitate and incite terrorist acts in Australia and offshore. The potential damage to Australia’s international reputation is high if Australians with combat experience become involved in terrorist attacks overseas or further overseas conflicts in other locations

¢¢there is significant concern about people from our immediate region travelling to support extremist groups. The likely consequences of this are expanded international extremist networks and enhanced capability and motivation for international jihad. This places Australians at greater risk of a terrorist attack while travelling in Southeast Asia.

35 AFP ANNUAL REPORT 2014–15

AFP COUNTER TERRORISM ACTIVITIES OPERATIONS

The AFP Counter Terrorism function has met the challenge of the ongoing threat through a number of operations during 2014–15. As a result of eight disruption activities 25 people have been charged with a number of terrorism and other offences. Subsequently charges have been dropped against one of the persons of interest. These operations are in response to the changing domestic terrorism threat, which has shifted from larger, complex attacks to smaller- scale attacks demonstrating shorter times between radicalisation and action. The AFP was involved in the following operations in 2014–15:

¢¢Operation Rising—an investigation of a group of people who were alleged to be planning an onshore attack on police members on or around Anzac Day (see the case study below)

¢¢Operation Amberd—an investigation of the activities of a young person alleged to be involved in planning an onshore terrorist attack in Melbourne

¢¢Operation Castrum—an investigation of the activities of two men alleged to be involved in planning an onshore terrorist attack in Sydney

¢¢Operation Appleby—the largest counter terrorism operation undertaken in Australia’s history, which involved 30 simultaneous search warrants and approximately 800 officers (AFP, ASIO and NSW Police Force) and resulted in 11 individuals being arrested.

36 4 Performance Report—Operations

OPERATION RISING: DISRUPTION OF TERRORISM ACTIVITIES

In 2014–15 investigations under Operation Rising resulted in several arrests for serious terrorism offences.

Operation Rising focused on the activities of a group alleged to be planning a terrorist attack on Australian soil.

Operation Rising was conducted by the Joint Counter Terrorism Team Melbourne, which comprises representatives from the AFP, Victoria Police and the Australian Security Intelligence Organisation.

On 18 April 2015 seven search warrants were conducted, which resulted in the arrest of one 18-year-old man for the offence of conspiring to do an act in preparation for, or planning, a terrorism act under section 101.6 by virtue of section 11.5 of the Criminal Code 1995 (Cth). The operation involved the first use of Victorian Preventative Detention Orders.

Another 18-year old man was detained under an interim Victorian Preventative Detention Order issued on 18 April 2015. He was released from the order on 20 April 2015 immediately before his arrest and was charged with the offence of conspiring to do an act in preparation for, or planning, a terrorism act under section 101.6 by virtue of section 11.5 of the Criminal Code 1995.

A view was subsequently formed by the Commonwealth Director of Public Prosecutions that there was insufficient evidence to continue the prosecution for this offence. The progression of charges through court will depend on an assessment by prosecutors of all the admissible evidence when that has been assembled, based on reasonable prospects of conviction and public interest.

This man has been charged with weapons offences under Victorian legislation. Police undertook an operational resolution at an early stage to ensure there was no threat to the community. The current counter terrorism environment dictates that police will always act in the interest of ensuring community safety.

A third man was charged with weapons offences under Commonwealth and Victorian legislation. Three other men were questioned and released without charge.

The operation demonstrated the effectiveness of cooperation between Australia’s law enforcement and security agencies and its international partners. Assistance was provided by British authorities throughout the investigation. Two minors were also arrested by United Kingdom authorities for terrorism offences in that country directly relating to Operation Rising.

37 AFP ANNUAL REPORT 2014–15

NATIONAL COOPERATION

NATIONAL DISRUPTION GROUP To combat the evolving threat of terrorism at home, the AFP has received approximately AUD$77.2 million over four years to address the threat posed by foreign fighters.

The AFP has established the National Disruption Group, which brings the AFP together with its partners to coordinate operational disruption activities nationally and internationally with the aim of countering the enduring threat posed by foreign fighters.

The National Disruption Group consolidates the capabilities of participating agencies to prevent, disrupt and prosecute Australian nationals who travel or intend to travel offshore to engage in hostilities and/or undertake terrorism training as well as those providing support to them.

The agencies participating in the National Disruption Group alongside the AFP are state and territory police, Australian intelligence agencies, the Attorney-General’s Department, the Australian Crime Commission, the Department of Immigration and Border Protection, the Australian Customs and Border Protection Service, the Australian Taxation Office, the Australian Transaction Reports and Analysis Centre, the Department of Defence, the Department of Foreign Affairs and Trade, the Department of Human Services and the Department of Social Services.

In addition to its disruption focus, the National Disruption Group has the capability to identify suitable individuals for diversion activities and refer them to the AFP Diversion Team or have them participate in the Attorney-General’s Department Countering Violent Extremism Intervention Framework. This referral capability allows the National Disruption Group to respond to individuals and counter anything from radicalisation to violent extremism.

The AFP Diversion Team works collaboratively with existing operational and liaison teams in support of community engagement to implement early intervention and violence disengagement strategies (including alternatives to prosecution such as reintegration and rehabilitation) while balancing national security requirements.

JOINT COUNTER TERRORISM TEAMS The Joint Counter Terrorism Teams are a partnership between members from the AFP, state and territory police and the Australian Security Intelligence Organisation. The aim of the teams is to work closely with other domestic agencies in the broader intelligence community and with international partners to identify and investigate terrorist activities in Australia (including terrorism financing) with an emphasis on preventative operations. The AFP’s role in the National Disruption Group complements the role of the Joint Counter Terrorism Teams.

TERRORISM FINANCING INVESTIGATIONS UNIT The Terrorism Financing Investigations Unit specifically targets the financing of terrorism and terrorist organisations, both domestically and offshore. The unit comprises highly skilled investigators and financial analysts with representatives from the Australian Transaction Reports and Analysis Centre and has key contacts within the Australian Customs and Border Protection Service, the Department of Human Services and the Australian Taxation Office. It has also established close relationships with domestic and international law enforcement partners who have responsibility for terrorist financing investigations.

38 4 Performance Report—Operations

COMMUNITY ENGAGEMENT In support of the government’s Countering Violent Extremism Strategy, AFP Community Liaison Teams are positioned in Sydney, Melbourne and Brisbane. There is also a community liaison capability in Canberra, Adelaide and Perth. The AFP coordinates its activities with similar capacities maintained by state and territory police and other government agencies.

Jeanette Boland, CT Community Liaison Team Sydney, and guests at the Eid Dinner August 2014

In 2014–15 the AFP’s Community Liaison Teams were involved in numerous community engagement activities in partnership with key community groups and other law enforcement and government agencies. The AFP and other government representatives regularly meet with the community and community leaders.

The teams help build positive and trusting relationships between the AFP and the community through various interactions. To build community relationships, cohesion and trust, the teams are involved in activities including sporting events, high school and university programs, interactions with religious centres, participation in community days and support for Countering Violent Extremism sub-committee government-funded programs.

INTERNATIONAL COOPERATION

The AFP maintains an extensive counter terrorism international presence designed to support offshore efforts to counter terrorism, strengthen international cooperation and enhance regional investigative capacity.

In 2014–15 the AFP had enhanced engagement with foreign law enforcement and intelligence partners through the AFP’s International Network. New liaison officers have been deployed to Ankara, Turkey; Amman, Jordan; Assistant Commissioner Neil Gaughan talking and The Hague (Europol) within the past year. to a guest at the Eid Dinner August 2014

39 AFP ANNUAL REPORT 2014–15

COUNTER TERRORISM LEADERS FORUM The 2014 Counter Terrorism Leaders Forum was held on 15–17 September 2014 in Cebu, Philippines. The event was co-hosted by the Philippines National Police and the AFP. The forum is an important annual event that facilitates AFP engagement with senior regional partners from the Philippines National Police, the Royal Thai Police, the Royal Malaysia Police and the Indonesian National Police. This was the fourth annual meeting of the Counter Terrorism Leaders Forum.

COUNTER TERRORISM LEADERS WORKING GROUP In June 2015 the Royal Malaysia Police and the AFP co-hosted the Counter Terrorism Leaders Working Group in Langkawi, Malaysia. The purpose of the meeting was to implement the recommendations of the Counter Terrorism Leaders Forum. It also provided an opportunity for intelligence sharing and discussion of issues of mutual concern.

The AFP continues to work closely with partner agencies both domestically and internationally to ensure a high level of collaboration and a coordinated approach to addressing the terrorist threat. REVIEW OF COUNTER TERRORISM MACHINERY

On 5 August 2014 the government commissioned the Department of the Prime Minister and Cabinet to conduct a review of Australia’s counter terrorism arrangements. The review found that the Commonwealth has strong, well-coordinated counter terrorism arrangements and that there is no reason to make major structural changes. It also found that Australia has entered a new, long- term era of heightened terrorism threat with a much more significant ‘home-grown’ element.

On 15–16 December 2014 a siege took place at the Lindt Café in Martin Place, Sydney. Following resolution of the siege, the Prime Minister announced that the Commonwealth and New South Wales governments would conduct a review of the incident and determine the lessons that could be learned from the events leading up to and surrounding the siege. The review recommended modest changes to laws and government processes to mitigate the public security risks exposed by this case.

The AFP supports the recommendations of these reviews and is working with whole-of- government partners to implement recommendations.

40 4 Performance Report—Operations

CRIME PROGRAM

Highlights

In 2014–15 the AFP Crime Program:

¢¢restrained AUD$246.6 million in assets under the Proceeds of Crime Act 2002 (Cth)

¢¢seized AUD$33.5 million in cash relating to money laundering and drug and firearms offences

¢¢seized 9,367 kilograms of illicit drugs, including 3,572 kilograms of methamphetamine

¢¢carried out high-visibility and proactive disruption activities in and around ports in New South Wales, Queensland and Victoria

¢¢supported law enforcement partners through the joint agency National Anti-Gangs Squad by arresting 25 offenders overseas (for offences committed overseas and in Australia); arresting more than 270 offenders in Australia; seizing over 100 firearms and more than AUD$1.5 million in cash; and raising almost AUD$10 million in taxation assessments

¢¢established the Investigations Skills and Qualifications Framework.

OBJECTIVE

The purpose of the AFP’s Crime Program is to disrupt, dismantle and combat serious and organised crime that poses a threat to Australia’s national security. The program comprises the Serious and Organised Crime and Crime Operations functions, which provide an investigative capacity for a wide range of crimes contained in Commonwealth statutes.

Serious and organised crime is increasingly global in nature. There are many organised crime groups that are sophisticated, highly networked and extremely well funded. Organised crime networks are becoming far more inclusive and universal in nature, transcending traditional, national, established and conventional organised crime groups.

The AFP proactively seeks opportunities for investigations to disrupt or dismantle crime organisers, facilitators or syndicates at their source. This includes asset confiscation that targets the criminal economy. MULTI-AGENCY APPROACHES

The AFP places an emphasis on a multi-agency approach to responding to crime in Australia. Its Crime Program teams work very closely with domestic and international partners to not only identify and mitigate vulnerabilities that organised crime groups exploit but also disrupt, investigate, prosecute and combat organised criminal activity both in Australia and offshore.

41 AFP ANNUAL REPORT 2014–15

OPERATION KOI DISRUPTS LARGE DRUG IMPORTATION

In November 2014 Operation Koi resulted in the largest single methamphetamine seizure in Australian history.

Operation Koi was a Joint Organised Crime Group investigation in New South Wales involving the AFP, the NSW Police Force, the Australian Border Force (the Australian Customs and Border Protection Service), the NSW Crime Commission and the Australian Crime Commission.

Operation Koi activities resulted in the arrest of six people in Australia for importing 1,843 kilograms of A sample of the drugs seized during MDMA and 954 kilograms of methamphetamine with Operation Koi a potential street value of up to AUD$569 million.

OPERATION AZOIC UNCOVERS A DRUG IMPORT AND DISTRIBUTION NETWORK

In April 2014 the AFP commenced Operation Azoic to investigate a drug importation and distribution network in the eastern suburbs of Sydney.

In March 2015, following extensive physical and electronic surveillance, AFP members conducted a number of search warrants and subsequently restrained assets pursuant to the Proceeds of Crime Act 2002 (Cth).

As a result of the investigations, police arrested an Australian national and seized narcotics and assets, including 50 kilograms of precursor chemicals, 16 kilograms of MDMA, 2.5 kilograms of cocaine and AUD$130,000 in cash.

The AFP also restrained assets including two apartments in Bondi Junction, two Mercedes Benz vehicles and bank accounts and share portfolios worth approximately AUD$860,000. The estimate of asset restraint and seizures to date totals Vehicles restrained pursuant to the AUD$3.7 million. Proceeds of Crime Act 2002 (Cth), found at an apartment in Bondi Operation Azoic is an example of law enforcement Junction, New South Wales, on utilising different remedies to remove the benefits 11 March 2015 obtained from offending and to prevent funds being reinvested to perpetrate further offences.

42 4 Performance Report—Operations

TABLE 5 DRUG SEIZURES 2013–14 AND 2014–15

2013–14 2014–15

Drug Group Reported Seizures Weight Seizures Weight (kg) (kg)

Amphetamine and amphetamine- 1,643 4,093.7 1,708 4,903.9 type stimulants

Cannabis 1,212 83.7 678 114.3

Cocaine 647 986.3 466 392.7

Hallucinogens 222 10.5 169 1 7. 1

Heroin (opioids) 252 149.8 424 394.8

MDMA 867 137.8 531 1,952.8

Pharmaceuticals 57 13.2 21 167.8

Precursors 90 1,423.3 57 680.4

Sedatives 285 294.4 281 440.2

Other (identified) 120 150.9 352 237.5

Other (confirmed) 68 395.0 86 65.4

Total 4,153 7,738.7 4,243 9,366.9

Notes: Some seizures involve multiple drug groups. Figures are correct at time of publication and include seizures by other federal agencies where the drugs have been held in AFP custody. The table excludes international seizures.

MONEY LAUNDERING INVESTIGATIONS

Targeting the criminal economy is crucial to enhancing our understanding of organised criminal activity and developing strategies to disrupt it. Money laundering remains a key enabler of organised crime.

Organised crime groups launder their money to conceal the true origin of their illicit funds and reinvest in future criminal activity. The most common forms of money laundering in Australia are the informal value transfer system within the alternative remittance sector, bulk cash smuggling and trade-based money laundering.

In 2014–15 the AFP continued to target Australian organised crime groups that make use of money laundering networks. In particular, it works with partner agencies to target the upper echelons of these international networks.

The AFP works to disrupt these activities through its dedicated money laundering team under the auspices of Operation Zanella. The work of Operation Zanella has resulted in arrests and prosecutions and the seizure of AUD$13.6 million in cash.

43 AFP ANNUAL REPORT 2014–15

The AFP is also part of the Eligo National Taskforce—a joint formal task force with the Australian Taxation Office and led by the Australian Crime Commission that targets money laundering networks. The AFP has provided investigators and intelligence support to the task force. In 2014–15 the AFP contribution to the task force resulted in the combined seizures of more than AUD$13 million in cash. CRIMINAL ASSETS CONFISCATION

A key focus of asset confiscation is the removal of the benefit of criminal activity from criminals and the prevention of the reinvestment of criminal profits in further criminal activity. Through the joint Criminal Assets Confiscation Taskforce, the AFP has enhanced its focus on asset confiscation.

The Criminal Assets Confiscation Taskforce, led and hosted by the AFP, combines the expertise and resources of the AFP, the Australian Crime Commission and the Australian Taxation Office. The task force has investigation and litigation teams in Brisbane, Sydney, Melbourne, Perth and Canberra, thereby providing national coverage. These teams also provide financial investigative support to other operational areas of the AFP.

The task force investigates and litigates conviction-based and non-conviction-based proceeds of crime matters. It employs a dynamic and integrated approach to asset confiscation and develops the most effective and appropriate strategy for each individual case.

The task force continues to deliver significant results. Task force activities in 2014–15 resulted in the restraint of AUD$246.6 million in assets under the Proceeds of Crime Act 2002 (Cth). WATERFRONT TASK FORCES

Addressing serious and organised crime in the maritime environment and cargo supply chain is particularly challenging. The AFP is involved in joint task forces in Victoria, Queensland and New South Wales to combat high-risk vulnerabilities and proactively shape the maritime operating environment to identify and negate criminal opportunities.

The waterfront task forces bring together officers from the AFP, the Australian Customs and Border Protection Service, the Australian Crime Commission, relevant state police and crime commission agencies, the Australian Taxation Office and the Australian Transaction Reports and Analysis Centre.

OPERATION BOSCOBEL TARGETS TAXATION FRAUD

In 2014–15 Taskforce Trident officers in Victoria arrested and charged six people in connection with taxation fraud offences to the value of AUD$2.5 million. The resolution of this matter also resulted in the restraint of more than AUD$11.5 million under the Proceeds of Crime Act 2002 (Cth) and the seizure of several dangerous weapons.

The company at the centre of the allegations held security contracts for ports in Melbourne, Sydney, Brisbane and Perth.

The operation is an excellent example of the AFP working with its partners to identify vulnerabilities and disrupt alleged criminal activity on the waterfront.

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NATIONAL ANTI-GANGS SQUAD

AFP officers are integral participants in joint agency National Anti-Gangs Squad teams across Australia. The teams, which include AFP and state police forces, conduct investigations and disruption strategies to detect, target and disrupt gang-related crime in Australia and overseas.

The National Anti-Gangs Squad is supported by intelligence generated by the multi-agency Australian Gangs Intelligence Coordination Centre. It also collaborates with domestic and international agencies.

The National Anti-Gangs Squad aims to protect the Australian community by targeting gangs such as outlaw motorcycle gangs, which are heavily involved in a variety of crime types including drug importing, trafficking, manufacture and distribution; money laundering; tax evasion; and violence.

AFP detain a suspect in a National Anti-Gangs Squad investigation

INVESTIGATIONS STANDARDS AND PRACTICES

The Investigation Standards and Practices Group, established in April 2014, has been working to promote consistency, standards and quality in support of investigations across the AFP.

One initiative of the Investigation Standards and Practices Group was the establishment of Regional Investigation Advisers. The advisers drive the development and implementation of best practice by providing real-time operational mentoring and tactical support, specifically to investigations where levels of risk, complexity and reputation are high.

INVESTIGATORS SKILLS AND QUALIFICATIONS FRAMEWORK

The Investigation Standards and Practices Group and AFP Human Resources work together to develop and implement key strategies to support the AFP’s aims of professionalising policing and linking capability and capacity with organisational requirements.

In 2014–15 one of these strategies was the establishment of the Investigators Skills and Qualifications Framework, which encompasses the core skills required of investigators to perform their role effectively.

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INTERNATIONAL NETWORK

Through its International Network, the AFP has developed and maintained cooperative working relationships with its Australian and foreign law enforcement partners to enhance engagement and relationships with the broader community. The AFP relies on these relationships for police- to-police investigations and exchange of intelligence, information and assistance through shared facilities, joint operations and advice.

As at 30 June 2015 the International Network had 99 members deployed in 29 countries in 37 locations to broker collaboration with international law enforcement agencies and support bilateral and multilateral cooperation. REGIONAL ENGAGEMENT

The AFP works closely with law enforcement partners in the Pacific region to combat transnational crime by supporting the Pacific Transnational Crime Network.

The Pacific Transnational Crime Network consists of 18 Transnational Crime Units in 13 Pacific countries; and the Pacific Transnational Crime Coordination Centre in Apia, Samoa. AFP Transnational Crime Network advisers are located in the Pacific (Papua New Guinea, Solomon Islands and Fiji) and Asia (Indonesia, Thailand, Vietnam and Cambodia). They focus on the delivery of capacity-building projects within the region.

AFP COMBATS CHILD SEXUAL EXPLOITATION IN SOUTHEAST ASIA

In 2014–15 the AFP continued its efforts to combat transnational child sexual exploitation.

Southeast Asia remains a preferred destination for Australian Travelling Child Sex Offenders and the crime is often underreported.

The AFP has placed a significant focus on collaborating with law enforcement counterparts in Southeast Asia through joint operational work and capacity building.

During 2014–15 two transnational child exploitation investigation workshops were held at the Jakarta Centre for Law Enforcement Cooperation in Semarang, Indonesia, with participants from across the Southeast Asian region attending.

Participants at transnational child exploitation workshops in Indonesia in 2014–15

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OPERATION SOVEREIGN BORDERS

The Australian Government’s Operation Sovereign Borders aims to disrupt and dismantle maritime people-smuggling operations.

The AFP-led Disruption and Deterrence Task Group continues to support Operation Sovereign Borders through the Operation Sovereign Borders Joint Agency Task Force.

The task group’s activities include a combination of joint agency domestic and international disruption, deterrence and capacity-building activities. These activities include:

¢¢conducting investigations in relation to Australian-based offenders

¢¢extraditing international offenders involved in people smuggling or facilitating persons’ illegal maritime entry to Australia

¢¢conducting intelligence gathering, coordination and dissemination activities to identify, disrupt and dismantle people-smuggling networks

¢¢providing liaison officers to source and transit countries to build on existing AFP networks and enhance collaboration between foreign law enforcement and the AFP

¢¢providing training programs to foreign law enforcement agencies to enhance their capability to target syndicates

¢¢delivering capacity development and operational support to source and transit countries undertaking activities to counter people smuggling.

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OPERATION AREW: SUPPORT FOR THE MH17 INVESTIGATION IN UKRAINE

On 17 July 2014 Malaysia Airlines flight MH17 from Amsterdam to Kuala Lumpur was downed in eastern Ukraine. All 298 passengers and crew died, including 38 Australians.

The AFP and Australian Government are committed to seeking justice for all of those who perished onboard MH17. The AFP’s contribution to the whole-of-government response to the incident is through its Operation Arew.

In the initial aftermath of the tragedy the AFP deployed over 180 personnel to Ukraine and other key locations in Europe to undertake a range of duties including search, investigations, intelligence, Disaster Victim Identification and forensics support. During this phase, AFP personnel were part of international teams that drove through high risk environments to access the crash scene, to recover the remains and personal effects of the victims.

A Forensic Expert Group of international specialists (including AFP Forensics personnel) was formed to ensure a holistic, coordinated and strategic approach to what is an extremely complex and challenging task. The AFP’s contribution to this group supported and informed search efforts during the initial disaster response phase as well as the subsequent identification and criminal investigation phases.

While the remains of all Australian victims were identified by December 2014, the AFP continues to deploy investigators, intelligence officers and forensics specialists to the Netherlands and Ukraine, to support criminal investigations and forensic analysis efforts.

Australia, Belgium, Malaysia, the Netherlands and Ukraine have signed a Joint Investigation Team arrangement that regulates cooperation in the multinational criminal investigation. The investigation is being coordinated to the highest international standards, accepting the inherent challenges associated with protracted, multi-jurisdictional investigations and obtaining evidence in separatist-controlled Ukrainian territory.

An AFP member at the MH17 crash site AFP members search fields near the wreckage of MH17 in eastern Ukraine

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HUMAN TRAFFICKING

The AFP Human Trafficking Team supports the whole-of-government approach to combating human trafficking. The four central pillars of Australia’s anti human trafficking strategy are:

¢¢prevention

¢¢detection and investigation

¢¢criminal prosecution

¢¢victim support and rehabilitation.

The AFP works collaboratively with a strong network of domestic law enforcement agencies, government and non-government agencies to support the strategy. Human Trafficking Team members are located in Canberra, Sydney and Melbourne. Human trafficking trained investigators are located in Brisbane, Darwin, Perth and Adelaide.

In 2014–15 the AFP received 119 human trafficking referrals, of which 105 were accepted for further investigation. This is an increase from 2013–14, when 70 referrals were received and 60 were accepted for information.

In 2014 and 2015 the AFP delivered a Human Trafficking Investigations Course in Canberra. The course is designed to advance expertise in areas critical to the successful investigation of human trafficking and slavery, including legislation, investigative methodologies, interviewing, and victim liaison and support. Course participants included AFP investigators, state and territory police and representatives from the Department of Immigration and Border Protection.

In August 2014 members of the AFP Human Trafficking Team attended the International Law Enforcement Academy, Bangkok, to deliver a two-week International Human Trafficking Investigation Workshop to participants from 11 Southeast Asian countries. The workshop, funded by the United States, is specifically designed to raise the skills of police and other agencies in the region in preventing, detecting, investigating and prosecuting cases of human trafficking in accordance with international best practice. NORTHERN TERRITORY CHILD ABUSE TASKFORCE

In 2014–15 the AFP continued to investigate child sexual abuse within Northern Territory remote communities. The AFP deploys officers to the Northern Territory Child Abuse Taskforce to assist in the investigation of these matters.

AFP members assist in task force investigations focused on serial violence and child abuse as well as other criminality in Indigenous communities that contributes to these crimes. In 2014–15 the task force conducted 178 investigations.

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ASIAN FOOTBALL CUP AND CRICKET WORLD CUP

During January, February and March 2015 Australia hosted the Asian Football Confederation Cup and International Cricket Council Cricket World Cup.

The Australian Government provided written undertakings to protect against the unauthorised commercial use of certain logos and images associated with both events. In July 2014 the government enacted the Major Sporting Events (Indicia and Images) Protection Act 2014 (Cth) to regulate the use of logos and images. Similar legislation was enacted for the Sydney 2000 Olympics and the 2006 Melbourne Commonwealth Games.

As part of its response to the government’s commitment, the AFP implemented a number of initiatives and operational activities that occurred before, during and after the sporting events. The AFP’s activities focused on the detection, disruption and investigation of syndicated copyright infringements associated with the events. The AFP investigative teams were deployed to each of the games to assess any possible breaches. They also Asian Football Confederation Cup conducted compliance visits in each city at well-known in Canberra January 2015 hotspots and markets. As a result of these activities, the AFP seized approximately 100 items of non-sanctioned Asian Football Confederation merchandise and a total of 672 items of non-sanctioned Cricket World Cup merchandise.

Asian Football Confederation Cup in Canberra January 2015

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INTERNATIONAL MAIL PROCESSING AND DISRUPTION STRATEGY

The International Mail Processing and Disruption Strategy was initiated in response to an Australian Customs and Border Protection Service report of a significant increase in the volume and frequency of illicit drug and precursor importations through international mail. The strategy aims to disrupt organised criminal activity through an intelligence-led and efficient approach to the AFP’s processing, examination and analysis of international mail seizures.

Under the strategy the AFP examines convergences and links to more effectively target syndicates operating onshore and offshore. It utilises the abilities of the National Forensic Rapid Lab to collect and analyse illicit materials, including drugs, precursors and firearms that have been sent through the international mail system. The forensic lab is also able to assess and disseminate forensic intelligence on the identification of mail importations and convergences across importations.

As part of the International Mail Processing and Disruption Strategy, the AFP has partnered with state and territory law enforcement agencies and the Department of Immigration and Border Protection to pursue criminal syndicates that import illicit substances through the mail. A particular focus has been working with state and territory law enforcement agencies to target the importation of methamphetamine.

OPERATION ALATE UNCOVERS DRUG IMPORTS FROM PAPUA NEW GUINEA

In 2014 the AFP-led Operation Alate investigated the importation of Phenyl-2-Propanone—a precursor substance used to manufacture amphetamine-type drugs—from Papua New Guinea across the Torres Strait and into Australia.

The Australian Customs and Border Protection Service and Queensland Police Service were also involved in the operation.

The operation was concluded in October 2014 after a large cannabis plantation was discovered in a remote location near Herberton in Northern Queensland. A number of search warrants were executed in Herberton, Cairns, Bamaga (Cape York) and on Badu Island (Torres Strait). As a result of the investigation, approximately 10 litres of the precursor, three firearms and 920 cannabis plants were seized.

Nine people were ultimately charged with a range of offences relating to the import of border controlled precursors, pre-trafficking of controlled precursors, cultivation of a dangerous plant, attempted export of firearms and use of a carriage service for child pornography. Law enforcement activity and items seized during Operation Alate

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FRAUD AND ANTI-CORRUPTION CENTRE

The Fraud and Anti-Corruption Centre is a multi-agency initiative established to enhance the Commonwealth’s ability to prevent, detect and investigate serious and complex Commonwealth fraud and corruption, including foreign bribery and identity security offences. The centre was officially opened on 31 July 2014 by the Federal Minister for Justice, the Hon Michael Keenan MP.

The Fraud and Anti-Corruption Centre is hosted by the AFP Fraud and Anti-Corruption business area. Participating Commonwealth agencies include the Australian Taxation Office, the Australian Crime Commission, the Australian Customs and Border Protection Service, the Department of Immigration and Border Protection, the Australian Securities and Investments Commission, the Department of Defence, the Australian Transaction Reports and Analysis Centre, the Department of Human Services and the Department of Foreign Affairs and Trade.

The Fraud and Anti-Corruption Centre is focused on strengthening law enforcement capability to respond to serious and complex fraud, foreign bribery, corruption by Australian Government employees and complex identity crime. It achieves this goal by delivering key functions, including multi-agency secondments, to support referral evaluation triage and review, training, intelligence and joint activity coordination.

In line with existing AFP external agency referral processes, the centre undertakes detailed and joint evaluations of serious and complex fraud and corruption matters to ensure a comprehensive understanding of current issues and the most effective use of collective investigative resources. FOREIGN BRIBERY

The AFP is responsible for investigating allegations of foreign bribery of Australian citizens, Australian residents and Australian registered companies or any instances of foreign bribery that occur partly or wholly in Australia. The Organisation for Economic Cooperation and Development (OECD) Working Group on Bribery conducts periodic reviews of Australia’s activities in this area.

In June 2015 the OECD working group acknowledged the AFP’s recent work to implement change and enhance the Commonwealth’s response to prevent and detect complex Commonwealth fraud and corruption, particularly in regard to foreign bribery.

The OECD working group noted that significant work had been done, Australia’s efforts had significantly improved and that Australia was in the ‘upper echelons of countries’ in relation to the enforcement of foreign bribery laws.

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TWO MEN ARRESTED FOR INSIDER TRADING UNDER OPERATION LEITH

In 2015 AFP-led Operation Leith investigated an insider trading scheme facilitated between a National Australia Bank employee and an Australian Bureau of Statistics employee.

Operation Leith was joint agency investigation involving the Australian Securities and Investments Commission.

The two men used market sensitive information from the Australian Bureau of Statistics to profit from movements in the foreign exchange derivatives market. Both men were arrested and charged with insider trading contrary to the Corporations Act 2001 (Cth) and offences including money laundering and abuse of public office contrary to theCriminal Code 1995 Act (Cth).

In January 2015 in excess of AUD$7 million was forfeited by order of the Victorian Supreme Court following Criminal Assets Confiscation Taskforce action.

In March 2015 the suspects received sentences of imprisonment of seven years and three months (with a non-parole period of four years and six months) and three years and three months (with a non-parole period of two years).

OPERATION BLARE UNCOVERS CONSPIRACY TO BRIBE IRAQI GOVERNMENT OFFICIALS

Operation Blare investigated allegations that directors and contractors of an Australian- based construction company, Lifese Pty Ltd, paid bribes to government officials in Iraq. It was alleged almost US$1 million was transferred overseas for the payment of the bribes.

In February 2015 the AFP executed a number of search warrants on residential and business premises in western Sydney. A man was subsequently arrested and charged with conspiracy to bribe a foreign public official and dealing in the proceeds of crime contrary to the Criminal Code Act 1995 (Cth).

Two directors of the company were also issued with Court Attendance Notices for conspiracy to bribe a foreign public official contrary to the Criminal Code Act 1995 (Cth).

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HIGH TECH CRIME OPERATIONS

Highlights

In 2014–15 AFP High Tech Crime Operations:

¢¢employed proactive and technical capabilities to identify and prosecute suspects sharing child exploitation images via peer-to-peer platforms

¢¢responded to the threat of child sex exploitation online and in travel and tourism, resulting in 56 offenders being arrested/summonsed for in excess of 145 child sex offence charges

¢¢expanded the ThinkUKnow cybersafety program to include the NSW Police Force and announced the Commonwealth Bank of Australia as a major sponsor. Schools presentations reached more than 190,000 children and more than 200 ThinkUKnow presentations were delivered to parents, carers and teachers

¢¢welcomed the Enhancing Online Safety for Children Bill 2014 and the introduction of an e-Safety Commissioner.

OBJECTIVE

The High Tech Crime Operations function combats the threats of cybercrime through disruption, mitigation activities and prosecution of cyber-related crimes against the Commonwealth; and through education initiatives and broader technical capabilities.

The High Tech Crime Operations function enables a flexible technical support capability and investigative capacity to address cybercrime, including online child sexual exploitation. The function also provides centrally coordinated surveillance and monitoring capabilities that support all AFP policing functions, both domestically and internationally.

The function delivers a diverse capability including:

¢¢identifying and responding to current and emerging cybercrime challenges through investigation, prevention and awareness-raising activities

¢¢delivering, intercepting, monitoring and analysing relevant communications and other activities in support of investigations and operations. HIGH TECH CRIME INVESTIGATIONS

The AFP has been able to respond effectively to complex and adaptive crime in collaboration with national and international partners. It has built robust and productive relationships with government agencies and private enterprise to reduce the enduring threat of cybercrime.

AFP High Tech Crime Operations cybercrime investigations are divided into two main areas of focus:

1. child sexual exploitation online and travelling child sex offenders

2. unauthorised access and modification of personal data and impairment of computer systems of national significance.

The AFP has worked tirelessly to position itself to effectively combat cyber challenges.

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CYBERCRIME OPERATIONS AUSTRALIAN CYBER SECURITY CENTRE

The Australian Cyber Security Centre, launched in 2014–15 is a centralised facility responsible for Australia’s cybersecurity operational capabilities in Canberra. It focuses on government and non- government networks, critical infrastructure and the business sector.

The new centre enables embedded AFP members to work more collaboratively and build on relationships established under the former Cyber Security Operations Centre.

Working within the centre, the AFP members provide a law enforcement context to the analysis of cyber threats and use their legislative powers and liaison networks to add to the whole-of- government threat awareness and response capability.

During 2014–15 embedded Cyber Security Centre Cybercrime Operations officers supported a number of core pieces of Australian Government and industry work in preparation for the G20 Leaders’ Summit, including the development of a threat and risk picture and participation in several exercises to test the preparedness of agencies to respond to potential incidents.

AFP Cybercrime Operations gave briefings to more than 150 representatives from government agencies, which assisted in raising cyber awareness and helped to ensure the G20 Leaders’ Summit remained incident free from a cyber perspective.

NATIONAL AND INTERNATIONAL COLLABORATION AND COOPERATION

In January 2015 an AFP Cybercrime Operations member was seconded to the National Cyber Forensics and Training Alliance in Pittsburgh in the United States. The alliance is an incorporated not-for-profit organisation—a partnership between government agencies and private industry funded by the US Federal Bureau of Investigations (FBI) and subscriptions.

It functions as a neutral, collaborative organisation where industry, law enforcement and academia work together to share intelligence and investigate, mitigate and disrupt cybercrime. Co-located partners at the alliance include the FBI, Homeland Security Investigations, Dell Secureworks, the Bank of America and Hewlett Packard.

In January 2015 the AFP also commenced a secondment to Interpol’s Global Complex for Innovation in Singapore. The Global Complex for Innovation was officially opened in April 2015 and is poised to become Interpol’s leading edge research and development facility for the identification of crimes and criminals, innovative training, operational support and partnerships. Its activities will enhance the wide range of global services that the Interpol General Secretariat already provides to its member countries.

During 2014–15 the AFP also commenced a third strategic secondment to Europol’s Joint Cybercrime Action Taskforce in Europol’s Cybercrime Centre in The Hague. The task force works with a coalition of countries across Europe and beyond to coordinate the operational responses to current and emerging global cyber threats.

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OPERATION ALASTRIA INVESTIGATIONS LEAD TO ‘HACKTIVISM’ ARRESTS

Operation Alastria was launched in early 2013 to proactively investigate, prosecute and disrupt ‘hacktivism’—that is, activities of issue-motivated groups in the theft of personal data and in defacing and ‘denial of service’ attacks on websites. Issue-motivated groups target government and commercial interests and remain an ongoing issue for international law enforcement.

In 2014–15 Operation Alastria focused on a group called Anonymous and activities leading up to G20 Leaders’ Summit meetings held in Australia in November 2014. To date, AFP Cybercrime Operations has executed eight search warrants across Australia (in New South Wales, Victoria and Western Australia), with the subsequent arrest of five people. Two of these offenders have since been convicted, with a third pleading guilty and awaiting sentencing. A further two offenders are awaiting trial.

The operation led to valuable information exchanges with domestic and international law enforcement partners. Those exchanges have informed part of our intelligence picture on issue-motivated groups involved in cybercrime in Australia and have strengthened our capacity to monitor, influence and disrupt their potential illegal activities.

CHILD PROTECTION OPERATIONS

The online world and its embedded technologies have facilitated the ongoing sexual abuse and exploitation of children—an increasing problem for law enforcement. Children are being sexually abused, re-abused and victimised over and over through internet-facilitated distribution of imagery and the planning of criminal acts.

The physical and online worlds are inextricably brought together by travelling child sex offenders (child sex tourism) and the organised producers of child exploitation material.

As well as monitoring the online production and distribution of child exploitation material, AFP Child Protection Operations monitors, investigates and targets offenders who travel offshore and commit sexual offences or use the internet to exploit and sexually abuse children. The AFP works closely with foreign law enforcement agencies to prosecute these offenders in these countries and in Australia using extraterritorial laws.

JOINT ANTI CHILD EXPLOITATION TEAM

In 2014–15 in response to the high volume and velocity of child exploitation referrals and material that the AFP has received, the existing Child Protection Operations framework was reviewed and the Joint Anti Child Exploitation Team operating model was launched.

The new model is a collaborative platform in which Child Protection Operations teams are co- located with state and territory Police Sex Crime Commands (or their equivalent). The Joint Anti Child Exploitation Team provides a national leadership model under which all police agencies can work together to address the issue of protecting children, particularly in the online environment.

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A key outcome of the model is the sharing of information and, as a consequence, accelerated dissemination of necessary information and intelligence on the sexual exploitation of children to partner agencies. The new arrangements will also enable more efficient and effective coordination of anti child exploitation efforts across Australia and internationally, as well as closer engagement with stakeholders.

The procurement of the Kent Internet Risk Assessment Tool and Hubstream software will allow the AFP to automate the assessment of child exploitation material it receives to ensure effective and efficient action on referrals.

Joint Anti Child Exploitation Team agreements are now formally in place with Victoria Police, Western Australia Police, the Northern Territory Police, South Australia Police and the NSW Police Force. It is expected all state and territory police will be operating under the model by the end of 2015.

OPERATION NIRO: AUSTRALIAN ARRESTED FOR PRODUCING VIOLENT CHILD SEX VIDEOS

Since December 2014 the AFP post in Manila, the Philippines, and AFP Child Protection Operations have worked with the Dutch National Police and Philippine law enforcement to identify the perpetrator of extreme sexual violence against young Filipino girls in a video series titled Daisy’s Destruction.

As a result of investigations, a 54-year-old Australian citizen was identified as the key suspect for producing the videos. The suspect was arrested by the Philippines National Bureau of Investigations in February 2015 in a small village approximately four hours’ drive east from Cagayan de Ord in the Philippines.

Investigations have identified 13 victims. So far, 12 victims have been located, including the remains of a 12-year-old girl who was allegedly killed by the 54-year-old.

The alleged offender is currently in custody in Manila. The AFP continues to assist the Philippines National Bureau of Investigations by providing specialist support, including digital and other forensic services.

The AFP is continuing to investigate a number of foreign suspects. Intelligence packages are expected to be disseminated to foreign law enforcement agencies in the near future for further investigation.

PREVENTION AND STRATEGIC INITIATIVES TEAM

The Prevention and Strategic Initiatives Team is dedicated to reducing the incidence and impact of missing persons and cybercrimes. The team’s focus is on developing and implementing prevention and awareness strategies that specifically target vulnerable groups, including those at risk of online grooming, cyberbullying and cybercrime.

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CYBERCRIME PREVENTION

The ThinkUKnow cybersafety program is the AFP’s flagship prevention program. The program involves a partnership between law enforcement and industry. The partnership continues to expand and now involves the AFP, Microsoft, Datacom and, as of February 2015, the Commonwealth Bank of Australia.

The program is further supported by the NSW Police Force, Northern Territory Police, Queensland Police Service, South Australia Police, Tasmania Police, Western Australia Police and Neighbourhood Watch Australasia.

ThinkUKnow—delivered by accredited volunteers through face-to-face presentations Australia wide—is aimed at bridging the knowledge gap between adults and young people when it comes to the internet and mobile technologies.

The presentations cover topics such as reputation management and social networking, cyberbullying and the filming of fights, ‘sexting’, online grooming, online gaming, inappropriate content, privacy management, scams, fraud, phishing, identity theft, how to protect your devices and how to report when things go wrong.

Minister for Justice, the Hon Michael Keenan MP, at the event that announced the Commonwealth Bank joining the ThinkUKnow partnership

In 2014–15 ThinkUKnow volunteers delivered 213 presentations to 6,588 participants across Australia and there were 133,068 visits to the ThinkUKnow website, www.thinkuknow.org.au. The program also reached the milestone of training and accrediting 500 volunteers. Volunteers come from the AFP, Microsoft, Datacom and the Commonwealth Bank.

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In the Pacific Island countries, through the Cyber Safety Pasifika initiative, the Cybercrime Prevention Team has presented to 15 schools and to three adult programs, reaching approximately 7,000 people.

The AFP partnered with the Pacific Island Chiefs of Police Secretariat to train and equip police across the Pacific with the knowledge and resources to educate young people in all aspects of cybersafety. To date, Cybercrime Prevention Team officers have trained police and presented to young people in 14 of the 21 participating Pacific Island countries.

During the reporting period the AFP also partnered with The Walt Disney Company to develop cybersafety material and lesson plans in both hard-copy and digital (iBook) forms. In 2014–15 materials have been provided to 1,200 primary schools and their students across Australia. NATIONAL MISSING PERSONS COORDINATION CENTRE

The National Missing Persons Coordination Centre is responsible for reducing the incidence and impact of missing persons in Australia. The primary activities of the centre are education and awareness-raising initiatives and events such as National Missing Persons Week, International Missing Children’s Day and Day for Daniel (in memory of Daniel Morcombe).

In 2014–15 International Missing Children’s Day (25 May 2015) was launched at Fairground Follies in St Peters, Sydney. The event profiled missing children who have been parentally abducted. The AFP, in partnership with the National Centre for Missing and Exploited Children and through its role in the Global Missing Children’s Network, led the international campaign to ‘help bring them home’. Twenty- two countries form the Global Missing Children’s Network and all participated in the campaign.

As part of the National Missing Persons Coordination Centre’s partnership with A&M Solutions (the administrative arm of Chemist Warehouse), profiles appeared in the Chemist Warehouse catalogue, which is distributed to 6.5 million Australians each month.

May 25 is International Missing Children’s Day. On May 25, Help bring them home. Look at profiles of missing children and spread a message of hope by releasing a balloon for a missing child online.

LOCATED

Name: Thomas SPEATH Name: Serena SPEATH Name: Bronte WATTER Name: Isabella WATTER Year of birth: 2010 Year of birth: 2009 Year of birth: 2007 Year of birth: 2007 Missing since: 5 December 2014 Missing since: 5 December 2014 Missing since: 4 April 2014 Missing since: 4 April 2014 Last seen: Brisbane QLD Last seen: Brisbane QLD Last seen: Townsville QLD Last seen: Townsville QLD Chemist Warehouse is helping police to raise awareness of missing persons issues in Australia. Please look at these photographs carefully and contact Crime Stoppers on 1800 333 000 if you recognise one www.missingpersons.gov.au of these children or have information regarding a missing person. Missing children profiled in the Chemist Warehouse catalogue for International Missing Children’s Day 2015

The 2014 National Missing Persons Week (3–9 August 2014) campaign focused on those with dementia, as this is a vulnerable group at risk of going missing. The annual event was launched in Canberra in partnership with Alzheimer’s Australia and with Alzheimer’s Australia National Ambassador and patron Ita Buttrose as master of ceremonies.

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TECHNICAL CAPABILITY

The AFP provides further technical and physical surveillance capability through its High Tech Collections and Capabilities team. The team develops and deploys enhanced technical capabilities to the whole of the AFP. The team also provides monitoring, record-keeping and report services for technical deployments and controlled operations that the AFP undertakes.

The AFP was assessed by the Commonwealth Ombudsman as compliant with the Telecommunications (Interceptions and Access) Act 1979 (Cth) for telecommunications interception. The Ombudsman described the AFP as having good process in its procedures for handling stored communications.

Similarly, the AFP’s surveillance device records were assessed as compliant with the record- keeping requirements of the Surveillance Devices Act 2004 (Cth).

The AFP’s controlled operations records were also assessed as compliant under Part 1AB of the Crimes Act 1914 (Cth).

As part of the AFP’s engagement with community groups and safety initiatives, the AFP Pipes and Drums lead the ACT Walk for Daniel in October 2014

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INTERNATIONAL DEPLOYMENT GROUP

Highlights

In 2014–15 the AFP International Deployment Group:

¢¢conducted 365 courses to develop the leadership and professional capabilities of regional law enforcement partners. It trained 4,896 law and justice officials from 16 nations across the Indo–Pacific region (1,254 female and 3,642 male)

¢¢contributed to the development of United Nations Security Council Resolution 2185 (The Role of Police in Peacekeeping and Post-Conflict Peacebuilding)—the first resolution that the United Nations has made to specifically address police and policing in peacekeeping operations

¢¢launched its Gender Strategy on 11 November 2014 in support of United Nations Security Council Resolution 1325 on Women, Peace and Security. It conducted 95 courses that incorporated gender-specific topics to 1,469 law and justice officials from 16 nations across the Indo–Pacific region (532 female and 937 male)

¢¢supported the Royal Solomon Islands Police Force in providing a safe and secure environment for the Solomon Islands community to vote in the Solomon Islands National General Election, held on 19 November 2014

¢¢provided support to the Vanuatu Police Force in the aftermath of Tropical Cyclone Pam

¢¢introduced a Lessons Management System, which ensures that lessons learned are integrated into the guidelines that direct mission activities

¢¢developed and delivered a pilot regional training package to police from 10 Pacific Island nations on domestic and gender-based violence and the rights of women in Fiji.

OBJECTIVE

The International Police Assistance program reduces criminal and national security threats to Australia’s collective economic and societal interests by delivering collaborative law and order capacity development missions, participating in internationally mandated peace operations and providing civil policing assistance to regional police services in accordance with Australian foreign policy priorities. LAW ENFORCEMENT POLICE DEVELOPMENT MISSIONS PAPUA NEW GUINEA – AUSTRALIA POLICING PARTNERSHIP

The Papua New Guinea – Australia Policing Partnership mission has focused on training Royal Papua New Guinea Constabulary officers in planning for major events and reducing gender violence. The training has been delivered through frontline policing advisory roles, executive level mentoring, infrastructure upgrades and curriculum enhancements at the Bomana Police College and Project Mekim Senis placements in Australia. The case study in this section provides further information on this initiative.

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The policing partnership has also assisted the Royal Papua New Guinea Constabulary in preparing for managing major event security operations (specifically Papua New Guinea’s hosting of the Pacific Games in July 2015 and the Asia–Pacific Economic Cooperation forum in 2018) by providing specialist training and mentoring in major event planning.

The traditional Sing-Sing group meet the official party during AFP Commissioner Andrew Colvin’s visit to Boroko Police Station in Port Moresby. The uniformed officers are, from left to right: AFP Commissioner Andrew Colvin, RPNGC Deputy Commissioner Administration Aawan Sete, AFP Assistant Commissioner Mandy Newton and AFP Commander Alan Scott (Commander PNG-APP)

TIMOR-LESTE POLICE DEVELOPMENT PROGRAM

A new four-year phase of the Timor-Leste Police Development Program commenced in July 2014. The program objectives are being achieved through six capacity-building initiatives covering governance, leadership and management, training support, investigations, operations and gender equality.

In 2014–15 the Timor-Leste Police Development Program, in partnership with the Policia Nacional de Timor-Leste, implemented a dedicated police communications systems network across Dili, established a Dili District Police Operations Centre, installed an information technology system to support professional data management and reporting, delivered investigations management training to 101 police officers (47 female and 54 male) and developed a command and control training program for policing response to incidents.

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REGIONAL ASSISTANCE MISSION TO SOLOMON ISLANDS

The AFP contributes to the Regional Assistance Mission to Solomon Islands (RAMSI) by providing staff and equipment to RAMSI’s Participating Police Force. The Participating Police Force comprises police advisors and administrative support staff from Australia, New Zealand and 13 Pacific Islands Forum nations. The force has a focus on operational capacity development to the Royal Solomon Islands Police Force (RSIPF).

The Participating Police Force supported the RSIPF in providing a safe and secure environment for the Solomon Islands community to vote in the Solomon Islands National General Election, held on 19 November 2014. The election required an appropriate policing and security presence throughout the country’s nine provinces and at 882 polling stations. Additional police from Australia and New Zealand were deployed as a surge capacity to support the Participating Police Force. RSIPF planning and operational strategies included proactive community policing engagement and high-visibility patrols in the lead-up to and during the election period.

Media outlets in the Solomon Islands reported the community’s praise for the efforts of the RSIPF and the Participating Police Force in contributing to a peaceful National General Election.

AFP supporting the Solomon Islands National General Election

AFP POLICE DEVELOPMENT IN TONGA, SAMOA, VANUATU AND NAURU

The AFP provides custom-designed capacity development initiatives through permanent missions in the Pacific Island nations of Tonga, Samoa, Vanuatu and Nauru. The AFP’s Tonga Police Development Program supported Tonga Police by providing infrastructure development, enhancing police skills and developing a Tonga Police maritime search and rescue capability to enable the nation to meet its international search and rescue obligations. The Samoa–Australia Police Partnership provided infrastructure enhancement and training support to the Samoa Police Service, particularly in the areas of traffic operations and road safety. A key deliverable was the acquisition and supply of new security equipment funded by the Australian Government to assist the Samoa Police Service in providing security for the United Nations International Conference on Small Island Developing States, which was held in Apia, Samoa, in September 2014 and attended by 4,538 delegates.

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The Vanuatu–Australia Police Project is a joint venture between the AFP and the Department of Foreign Affairs and Trade under the Policing and Justice Support Program Vanuatu. In addition to pre-planned program deliverables, in the wake of destruction caused by Tropical Cyclone Pam in March 2015, the police project provided sustained command, control and coordination assistance to the Vanuatu Police Force and its executive during the disaster response and recovery phases. The AFP’s Nauru Police Force Police Capacity Program has focused on training Nauru police in a range of areas including basic criminal investigations, sexual assault investigations, random breath testing, public order management, human resource management and training in command, control and coordination for police operations.

From left: Acting Commissioner Tonga Police Viliami ‘Unga Fa’aoa, Australian Foreign Affairs Minister, the Hon Julie Bishop MP; AFP Superintendent Scott Moller; High Commissioner Brett Aldam and Deputy Commissioner Pelenatita Fe’ao inspect the Custody Processing Centre at the Central Police Station in Nuku’alofa, Tonga

PACIFIC POLICE DEVELOPMENT PROGRAM—REGIONAL

The Pacific Police Development Program—Regional (PPDP-R) uses a ‘fly-in–fly-out’ model to provide direct in-country training, advisory and mentoring support to the Cook Islands, Kiribati, Niue, Tuvalu, the Republic of the Marshall Islands, Palau and the Federated States of Micronesia. PPDP-R delivered capacity development to Pacific Island police under the themes of investigations, legislation and policy, management and leadership, corporate service reform, learning and development, general and specialist policing (including forensics and emergency management), planning, and monitoring and evaluation. Gender was, and continues to be, a cross-cutting theme through all programs. Through PPDP-R, the AFP also provided whole-of-Pacific regional support to Pacific Islands Forum countries by delivering regional training and support to bodies, including the Pacific Islands Chiefs of Police (PICP), the Pacific Police Training Advisory Group, the Pacific Forensics Working Group, Cyber Safety Pasifika, the Women’s Advisory Network, the Pacific Prevention

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of Domestic Violence Program and the Pacific Police Policy Network. PPDP-R was active in supporting the development of the PICP Strategic Plan and creation of a PICP Executive Leadership Team.

In response to large-scale disasters, PPDP-R initiated regional command, control and coordination training for Pacific Island countries. This training was tailored for the Pacific region and has enhanced the capacity and capability of Pacific Island police in developing scalable plans and strategies for coordinating responses to crisis incidents and operational activities. Training recipients came from throughout the Pacific, including Kiribati, Tuvalu, the Republic of the Marshall Islands, the Federated States of Micronesia, Palau, the Cook Islands, Niue, the Solomon Islands, Papua New Guinea, Samoa, Tonga and Nauru.

To complement this training and enable operational responses to emergency situations, PPDP-R facilitated the creation of a National Command Coordination Centre and Police Forward Command Vehicle in the Cook Islands and the delivery of emergency response trailers to the Republic of the Marshall Islands, the Federated States of Micronesia, Kiribati, Tuvalu, Palau, Niue and the Cook Islands.

To achieve ‘for Pacific—by Pacific’ successes, PPDP-R collaborated with non-government organisations such as the Pacific Islands Centre for Public Administration, the Regional Rights Resource Team, UN Women and the Fijian Women’s Crisis Centre to develop and deliver a two- week regional training package (pilot program for police) on domestic and gender-based violence and the rights of women. This package was delivered in Nadi, Fiji, in September 2014. The training was taken by 22 participants (eight female and 14 male).

MULTINATIONAL STABILISATION AND PEACE SUPPORT ACTIVITIES

The AFP has continued its commitment to the United Nations by deploying personnel to Cyprus and New York. Additionally, a senior AFP officer continues to perform the role of Police Commissioner in the United Nations Mission in Liberia. The AFP contribution to the United Nations Office on Drugs and Crime—the Maritime Crime Program Advisor position in Mauritius—ceased in November 2014.

COMMUNITY POLICING IN EXTERNAL TERRITORIES AND FOR DOMESTIC OPERATIONS

The AFP delivers a full range of community policing and delegated regulatory functions in the external territories of Christmas Island, Cocos (Keeling) Islands and Norfolk Island. It also provides community policing services at Jervis Bay Territory.

The AFP supports the Department of Immigration and Border Protection operations at the Christmas Island Immigration Detention Centre, including by providing incident response and investigation support in relation to civil disturbances at the centre and support to air escort activities for the transfer of irregular maritime arrivals.

In 2014–15 a number of significant land and sea based search and rescue operations were conducted, including a lengthy search of tropical rainforest on Christmas Island for a missing man and the successful rescue of a rock fisherman at Jervis Bay.

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SPECIALIST RESPONSE GROUP

The AFP Specialist Response Group gives the AFP the capability to rapidly deploy locally, nationally or internationally to de-escalate volatile conflict situations, resolve high-risk situations, enhance community safety and respond to regional natural disasters.

The group comprises 22 teams across 14 disciplines. Its specialist policing capabilities include public order management, search and rescue, disaster response, intelligence, police negotiation, bomb response, maritime services, air support, communications and tactical operations.

The AFP Specialist Response Group deployed to 175 planned operations nationally and in the ACT and 1,871 separate response tasks within the ACT.

The AFP provided specialist policing capability to a number of major operations, including by:

¢¢contributing to the whole of Australian Government Operation Bring Them Home by deploying 50 Specialist Response Group members to Ukraine to assist with the search and recovery operation for downed Malaysia Airlines flight MH17. Specialist Response Group members assisted in Ukraine for a five-week period in July 2014

¢¢deploying specialist policing capability, including maritime, bomb response, tactical and marksman, in support of the G20 Leaders’ Summit. This was the largest security operation in Australia’s history. The G20 Leaders’ Summit was hosted in Brisbane in November 2014

¢¢supporting the Royal Solomon Islands Police Force by providing specialist policing capability to ensure community safety and security during the conduct of the Solomon Islands National General Election in November 2014.

DESIGN, MONITORING AND EVALUATION OF INTERNATIONAL DEVELOPMENT WORK

The government’s focus on demonstrating aid effectiveness drives the work of the AFP Design and Evaluation Team. The AFP uses a continuous improvement cycle to ensure that AFP police development efforts are sustainable and result in the intended goal of partner organisations delivering legitimate and accountable policing. Effective policing not only delivers improved safety, security and justice outcomes for communities; it also reduces the transnational organised crime threat to Australia and the broader region.

The continuous improvement cycle involves:

¢¢conducting a consultative design process

¢¢developing mission objectives based on evidence

¢¢monitoring progress towards objectives

¢¢commissioning regular independent evaluations.

The introduction of a Lessons Management System and revision of doctrine, including the Strategic Framework and Police Development Guides, ensures that lessons learned are integrated into processes that direct mission activities.

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In the past 12 months, the Design and Evaluation Team has worked closely with AFP missions to implement the continuous improvement cycle. Deliverables include:

¢¢undertaking design processes for missions in Timor-Leste and Solomon Islands

¢¢improving the mission performance reporting process

¢¢facilitating monitoring and evaluation training for AFP members in mission

¢¢ commissioning independent evaluations of the Samoa–Australia Police Partnership and the PPDP-R.

GENDER STRATEGY

On 11 November 2014 the AFP International Deployment Group Gender Strategy was launched in support of United Nations Security Council Resolution 1325 on Women, Peace and Security, and Australia’s National Action Plan on Women, Peace and Security 2012–2018. The strategy outlines the ways in which gender will be normalised in daily operations, police development programs and stability operations.

Assistant Commissioner Mandy Royal Papua New Guinea Constabulary officers spent six weeks Newton and Commissioner Andrew at the AFP College in Canberra in 2014–15. Left to right: AFP Colvin launch the IDG Gender Sergeant Sonia Sawczak, RPNGC Inspector Elizabeth Tibam, AFP Strategy in November 2014 Sergeant Rowena Penfold, RPNGC Inspector Jennifer Wakore

The Gender Strategy articulates target outcomes that include:

¢¢mandatory Women, Peace and Security training for all AFP deployees

¢¢targets for the deployment of women to AFP missions, including in senior leadership roles

¢¢support for partner country efforts to eliminate barriers to women’s participation in policing by developing or reforming policies on recruitment, training, promotion, maternity leave, infrastructure development and housing

¢¢support for partner country policing organisations and civil society to lawfully respond to gender-based violence, deliver prevention initiatives and provide services to the victims of gender-based violence.

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PROJECT MEKIM SENIS: OBSERVER PLACEMENTS FOR PAPUA NEW GUINEA POLICE

An important AFP initiative during 2014–15 has been Project Mekim Senis. ‘Mekim Senis’ means ‘making a change or improvement’ in Tok Pisin (a national language of Papua New Guinea).

Under Project Mekim Senis, selected members of the Royal Papua New Guinea Constabulary are placed as observers in an Australian police agency to experience and gain knowledge of relevant policing practices and procedures.

Over 50 Papua New Guinea police members have undertaken one-month placements with the AFP in Canberra (including ACT Policing), the Northern Territory Police or the Queensland Police Service. The police members gained first-hand experience in general duties, traffic enforcement, investigations, training and station management.

When they return to Papua New Guinea, the police members undertake AFP organised retention programs and additional workplace training in order to apply learnt skills and knowledge in the local policing environment.

Mekim Senis Project Manager John McGrath with a group of Royal Papua New Guinea Constabulary and Northern Territory Police officers on a foot patrol in a Darwin shopping precinct

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PROTECTION

Highlights

In 2014–15 the AFP Protection function:

¢¢continued to participate and cooperate with Commonwealth, state and territory partner agencies to provide effective close personal protection, nationally and overseas, including for visits to Australia by:

££His Excellency Mr Shinzo Abe, Prime Minister of the State of Japan

££His Excellency Mr Xi Jinping, President of the People’s Republic of China

££The Rt Hon Mr David Cameron MP, Prime Minister of the United Kingdom of Great Britain and Northern Ireland

££His Excellency Mr Francois Hollande, President of the French Republic

££The Hon Mr Narendra Modi, Prime Minister of the Republic of India

££Her Excellency Dr Angela Merkel, Chancellor of the Federal Republic of Germany

££His Royal Highness Prince Edward, the Earl of Wessex

££His Excellency Mr Mark Rutte, Prime Minister of the Netherlands

££His Royal Highness Prince Henry of Wales

££His Excellency Mr Hu Chunhua, Member of the Political Bureau of the Communist Party of China

££His Holiness the 14th Dalai Lama, Tenzin Gyatso

¢¢delivered uniform protection services to diplomatic and consular missions, Commonwealth Government establishments and members of the federal government as required

¢¢planned, coordinated and deployed capabilities in support of special events in Australia and overseas, including:

££the 2014 G20 Leaders’ Summit

££Anzac Day 2015 commemorative services in Turkey and France

££the Asian Football Confederation Cup

££the International Cricket Council Cricket World Cup

¢¢assumed primary responsibility for security at the Australian Parliament House.

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OBJECTIVE

The AFP’s Protection function ensures that individuals and interests that the Commonwealth identifies as being at risk are kept safe from acts of terrorism, crime and issue-motivated violence. OPERATIONAL ACTIVITIES

The AFP delivers protective security services in a range of settings. It is informed by a decision- making framework that focuses on intelligence and risk analysis, information sharing and collaboration with Commonwealth, state and territory partner organisations.

The AFP Protection function’s activities require a concentration of resources on preventing criminal acts, supported by intelligence-led threat and risk analysis. Operational activities include uniform patrols and response, close personal protection, witness protection and special events planning. The Protection function also provides capabilities designed to respond to armed incidents and increased threat levels. CLOSE PERSONAL PROTECTION

During 2014–15 the AFP provided close personal protection in national and international settings to Australian high office holders, the diplomatic community, visiting dignitaries, internationally protected persons and other individuals deemed to be at risk. The AFP provided:

¢¢close personal protection for 30 visits to Australia by internationally protected persons

¢¢support for 33 overseas visits by Australian high office holders

¢¢support for major events such as:

££the 2014 G20 Leaders’ Summit

££Anzac Day centenary commemorations at Gallipoli in Turkey and Villers-Bretonneux in France

££the Asian Football Confederation Cup

££the International Cricket Council Cricket World Cup

¢¢close personal protection to a large number of Australian high office holders

¢¢coordination of protective security arrangements for the Australian Ambassador to Indonesia in collaboration with the Indonesian National Police at the Australian Embassy, Jakarta.

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AFP personnel escorting the then Prime Minister, the Hon Tony Abbott MP, at Canberra Airport

UNIFORM PROTECTION

AFP protective service officers delivered high-visibility protective security at critical infrastructure sites and establishments that are of interest to the Commonwealth. During 2014–15 uniform protection services were delivered to:

¢¢diplomatic and consular missions in Canberra, Melbourne, Perth and Sydney

¢¢Commonwealth Government establishments, including:

££Australian Parliament House

££the official residences of the Prime Minister and the Governor-General in Canberra and Sydney

££the High Court of Australia

££the Australian Embassy in Jakarta, Indonesia

££the Australian Nuclear Science and Technology Organisation

££designated Defence establishments across Australia

¢¢Australian and foreign high office holders on an as-needed basis.

PROTECTION LIAISON

AFP Protection Liaison is responsible for assessing and identifying threats that have the potential to lead to violence or threaten Commonwealth interests. The AFP engages regularly with representatives from the offices of high office holders, members of the diplomatic and business communities, protest groups and law enforcement partners. The team often contributes to the referral of matters to AFP Crime Operations for ongoing investigation and potential prosecution.

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The AFP Protection Assessment team collects and analyses information and intelligence about threats to designated Australian high office holders, internationally protected persons, visiting foreign dignitaries, designated Commonwealth establishments and diplomatic or consular missions, both in Australia and offshore. The information the team collects is then used to reduce the AFP’s vulnerability to threat activity by providing proactive, predictive threat intelligence.

SPECIAL EVENTS

2014 G20 LEADERS’ SUMMIT The 2014 G20 Leaders’ Summit, held in Brisbane, attracted the world’s most powerful and influential political and business personalities, including the leaders of the world’s 20 most economically viable states. The G20 Leaders’ Summit was attended by:

¢¢21 heads of government

¢¢six G20 invited guest country leaders (including leaders from Spain, Myanmar, Mauritania, Senegal, New Zealand and Singapore)

¢¢seven heads of international organisations (the Financial Stability Board, the International Labour Organisation, the International Monetary Fund, the Organisation for Economic Cooperation and Development, the United Nations, the World Bank and the World Trade Organization).

More than 6,400 police officers from Australia and New Zealand were committed under the operation and were dedicated to protecting the safety, security and dignity of the event and the Internationally Protected Persons in attendance.

Australia hosted five Guest of Government visits of Internationally Protected Persons in the lead-up to and after the G20 Leaders’ Summit. The AFP was responsible for planning and implementing dignitary protection measures in Canberra and coordinating with state and territory police that were responsible for planning and implementing protective security measures within their respective jurisdictions.

The five Guest of Government visits were by:

¢¢the Rt Hon Mr David Cameron, Prime Minister of the United Kingdom of Great Britain and Northern Ireland

¢¢His Excellency Mr Xi Jinping, President of the People’s Republic of China

¢¢the Hon Mr Narendra Modi, Prime Minister of the Republic of India

¢¢His Excellency Mr François Hollande, President of the French Republic

¢¢Her Excellency Dr Angela Merkel, Chancellor of the Federal Republic of Germany.

To support the G20 Leaders’ Summit, the AFP committed 641 members and coordinated its activities through AFP Protection’s G20 Special Event Planning Team. The team commenced operations in 2012 to ensure integration, planning and delivery were aligned with the expectations of partner agencies, including the Queensland Police Service and the Department of the Prime Minister and Cabinet.

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The AFP Protection Assessment team collects and analyses information and intelligence about threats to designated Australian high office holders, internationally protected persons, visiting foreign dignitaries, designated Commonwealth establishments and diplomatic or consular missions, both in Australia and offshore. The information the team collects is then used to reduce the AFP’s vulnerability to threat activity by providing proactive, predictive threat intelligence.

SPECIAL EVENTS

2014 G20 LEADERS’ SUMMIT The 2014 G20 Leaders’ Summit, held in Brisbane, attracted the world’s most powerful and influential political and business personalities, including the leaders of the world’s 20 most economically viable states. The G20 Leaders’ Summit was attended by:

¢¢21 heads of government

¢¢ six G20 invited guest country leaders (including leaders from Spain, Myanmar, Mauritania, AFP officers on duty as the Prime Minister of New Zealand, the Rt Hon Mr John Key, arrives for the G20 Senegal, New Zealand and Singapore) Leaders’ Summit

¢¢seven heads of international organisations (the Financial Stability Board, the International Labour Organisation, the International Monetary Fund, the Organisation for Economic Cooperation and Development, the United Nations, the World Bank and the World Trade Organization). The AFP provided the following capabilities in support of the G20 Leaders’ Summit:

More than 6,400 police officers from Australia and New Zealand were committed under the ¢¢Protection operation and were dedicated to protecting the safety, security and dignity of the event and the ££ Internationally Protected Persons in attendance. command, control and coordination

££ Australia hosted five Guest of Government visits of Internationally Protected Persons in the close personal protection (dignitary protection) lead-up to and after the G20 Leaders’ Summit. The AFP was responsible for planning and ££uniform protection site security at 12 accommodation venues and Brisbane Exhibition and implementing dignitary protection measures in Canberra and coordinating with state and Convention Centre territory police that were responsible for planning and implementing protective security measures within their respective jurisdictions. ££protection liaison (Field Intelligence Officers)

The five Guest of Government visits were by: ¢¢Aviation policing, including canine capability

¢¢the Rt Hon Mr David Cameron, Prime Minister of the United Kingdom of Great Britain and ¢¢High Tech Crime Operations Northern Ireland ££physical and technical surveillance ¢¢His Excellency Mr Xi Jinping, President of the People’s Republic of China ¢¢Specialist Response Group ¢¢the Hon Mr Narendra Modi, Prime Minister of the Republic of India ££police tactical group (including marksmen) ¢¢His Excellency Mr François Hollande, President of the French Republic ££maritime (including water police and police dive teams) ¢¢Her Excellency Dr Angela Merkel, Chancellor of the Federal Republic of Germany. ££bomb response team To support the G20 Leaders’ Summit, the AFP committed 641 members and coordinated its activities through AFP Protection’s G20 Special Event Planning Team. The team commenced ¢¢Intelligence operations in 2012 to ensure integration, planning and delivery were aligned with the ¢¢Investigations expectations of partner agencies, including the Queensland Police Service and the Department of the Prime Minister and Cabinet. ¢¢Media

¢¢Criminal Records

¢¢Operations Support.

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It was a complex operation that involved both national and state governments. It proved particularly challenging when the National Terrorism Public Alert System level was raised to ‘high’ and the threat level for the event was raised to medium.

The harmony between the event and security is evidence of the genuine and integrated partnerships between all of the stakeholders. The secure, peaceful and dignified delivery of the G20 Leaders’ Summit, the largest peacetime security operation in Australia, was the result of planning and the close partnership that was maintained with all relevant stakeholders.

AFP officer overseeing security at one of the sole-use hotels during the G20 Leaders’ Summit

PROTECTION OF SPORTING EVENTS The AFP played an integral role in the whole-of-government response to ensuring security at the Asian Football Confederation Cup and the International Cricket Council World Cup, held between 9 January and 29 March 2015. Both events were granted ‘special event’ status with accompanying government guarantees to ensure safety and security.

AFP members were attached to various teams throughout both events as part of a wider national security overlay working closely with travelling team officials, Australian Government representatives, jurisdictional police and local organising committee staff.

The AFP developed a number of new concepts in delivering a coordinated national security overlay for the conduct of the events. They included:

¢¢the implementation of the National Police Information Assessment Centre—a centralised hub coordinating situational awareness amongst key stakeholders, including state and territory police

¢¢the AFP Liaison Officer model—a model under which individual members were assigned to specific teams to act as a conduit between team management, state and territory police and the broader AFP.

Both of these initiatives improved interagency operational planning and response by sharing information collected from a wide range of sources.

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ANZAC DAY 2015 Anzac Day 2015 marked the centenary of the landing of ANZAC troops at Gallipoli, Turkey in 1915. It was a significant milestone and historic event within Australia and in several other countries around the world. The AFP had a presence at Anzac services held at Gallipoli, Lone Pine and Chunuk Bair in Turkey, and at Villers-Bretonneux and Bullecourt in France. The AFP undertook significant planning for the Anzac services, including extensive liaison with law enforcement counterparts before the events to ensure security expectations were met. The AFP deployed 14 members to Turkey and four members to France.

SECURITY REVIEW AT AUSTRALIAN PARLIAMENT HOUSE

In September 2014 the AFP took part in a series of whole of Australian Government security reviews at Australian Parliament House as a result of Australia’s National Terrorism Public Alert System level being raised to ‘high’.

As a result of these reviews, on 21 September 2014, by authority of the Presiding Officers, the AFP was appointed the lead agency for security and response operations in cooperation with the Parliamentary Security Services.

A New Policy Proposal approved on 22 October 2014 directly funded the AFP for security operations at Parliament House. This additional funding allowed the planned increase in the number of AFP personnel deployed to Parliament House from 72 to 114.

The AFP has integrated a range of capabilities, including protection liaison, protection assessment and canine and bomb appraisal, to provide an enhanced security arrangement.

Enhanced security arrangements at Parliament House

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5 PERFORMANCE REPORT—SUPPORT AFP ANNUAL REPORT 2014–15

FORENSICS

Highlights

In 2014–15 AFP Forensics:

¢¢utilised the full suite of forensic disciplines as part of Operation Arew and coordinated the Australian Disaster Victim Identification response to the downing of flight MH17 in Eastern Ukraine

¢¢supported counter terrorism operations across Australia, working closely with Australian police jurisdictions and intelligence agencies

¢¢supported the prevention and prosecution of firearm-related crime priorities in the forensic firearms arena. The Australian Ballistic Information Network, launched in July 2014, led to local and national operational successes, with potential for its international use being explored

¢¢continued its support of AFP operations across all AFP functions, especially national security activities of the Counter Terrorism, Serious and Organised Crime and Crime Operations functions

¢¢provided unique specialist capability to priority initiatives, including the National Anti-Gangs Squad, the Joint Anti Child Exploitation Team and the Joint Organised Crime Group

¢¢partnered with ACT Policing on major investigations, including four high-profile murders.

OBJECTIVE

The AFP’s Forensics function provides forensic science and technical intelligence capability to the AFP and is the sole provider of this capability to the Commonwealth.

In 2014–15 in an environment of heightened operational demand, the AFP provided a world-class forensic science service to enable and support the operational and strategic imperatives of the AFP. AFP operations have been integral to the successful law enforcement response to national and international forensic operations in a rapidly changing environment.

By continuing to enhance its technical capabilities, the AFP has positioned itself as a leader in its field, providing investigators with innovative intelligence and evidence collection methods that, in many cases, form the crucial link between offence and offender. OPERATIONS

Demand for forensic support to AFP operations has been consistently trending upward for several years. The AFP successfully meets this challenge through flexible deployment of specialist resources and proactive consultancy with investigators to ensure relevant and effective forensic outcomes.

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CAPABILITY ENHANCEMENTS

A key focus has been providing support to counter terrorism operations. New facial recognition technology is yielding results in this field. The capacity to exchange images across law enforcement and Commonwealth agencies has provided key links in a number of investigations. Other specialist technical developments during the reporting period include:

¢¢the imaging and geomatics capability, which provides high-end search and scene recording capability. This allowed the AFP to net large quantities of secreted contraband or critical items of evidence that would not have been located without this specialist capability

¢¢handwriting comparisons and indentation analysis, which supported investigations and, when corroborated with other information (such as fingerprints or DNA), linked individuals to fraudulent, threatening or otherwise probative documents

¢¢developing a new forensic capability in which soil is linked to its region of origin. The scope of the project is being expanded to enhance the operational benefits, including analysis of pollen to narrow the region of origin.

DRUG DETECTION

Several achievements during the year highlighted the continual innovation and scientific development in support of drug investigations. For example, National Association of Testing Authorities accreditation was extended to allow limited in-house analysis of illicit drug samples, resulting in expedited reporting to investigators in applicable circumstances.

The continued success of the National Forensic Rapid Lab in establishing forensic intelligence links in serial drug importations highlighted the calibre of specialist capability provided by AFP Forensics. The National Forensic Rapid Lab collaborates with external agencies to intercept drugs and other illicit materials, including firearms, firearms parts and false identity documents, that have been illegally imported into Australia through the international mail stream. Examples of the success of the National Forensic Rapid Lab in preventing illicit drugs from reaching Australian streets include:

¢¢the range of illicit substances detected, including methamphetamine, cannabis, cocaine, heroin, MDMA and pharmaceuticals

¢¢the lab’s successful detection of substances that had been concealed in a range of materials such as toys, paper, clothing and cosmetics.

Other specialist capability enhancements include successful completion of the National Drug Precursor Risk Assessment Capability project. The Attorney-General’s Department used the capability outcomes to propose consistent legislation in Australia to regulate precursor chemicals.

Likewise, the Drug Monitoring System was launched as a resource on novel psychoactive substances and precursors for illicit drug manufacture. The system currently has information on more than 700 novel psychoactive substances, including their chemical identity and legislative status.

The Enhanced National Intelligence Picture on Illicit Drugs project has continued to be successful. In collaboration with state and territory police forces, the project has enabled identification of forensic links for illicit drugs within and between jurisdictions.

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COLLABORATION

In 2014–15 collaboration with partner agencies enabled the AFP to contribute its forensic science and technical intelligence expertise to law enforcement activities and operations.

Forensic member supporting a joint AFP operation

During 2014–15 the AFP helped establish new digital forensic capabilities for the Fiji Police Force. For example, it helped the Fiji Police Force to obtain new equipment and provided specialist training. The AFP also delivered mobile device forensic training to agencies in the Maldives and Sri Lanka and a digital evidence training program in Pakistan.

The AFP provided assistance to the Indonesian National Police through pre- and post-blast investigators training courses and had close engagement with Southeast Asian countries through Interpol training workshops, including the Chemical Anti-Smuggling Enforcement Program.

The AFP is a significant contributor to law enforcement policy and takes a leading role in providing advice on national and international policy including:

¢¢biometrics, including DNA, facial recognition and fingerprints

¢¢firearms

¢¢international engagement and partnership

¢¢illicit drugs, particularly drug analogues, precursors and novel psychoactive substances

¢¢national security.

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OPERATION KOI

In November 2014 the work of AFP Forensics Crime Scenes helped to bring about the successful resolution of a large-scale drug operation named Operation Koi.

The Australian Customs and Border Protection Service examined a shipping container at the New South Wales Container Examination Facility, which was later found to contain 113 boxes containing 2,785 drug packages concealed within a mixed load of furniture and personal items.

AFP specialists from Crime Scenes, National Forensic Rapid Lab and Forensic Drug Intelligence substituted the drug packages over four days, facilitating an expedient delivery of the shipping container and contents. Crime Scenes resources from Sydney and interstate processed and prepared analysis samples for the entire seizure over a period of two weeks.

As a result of the AFP operational activities, six people were arrested and 954 kilograms of methamphetamine and 1,843 kilograms of MDMA were seized. The seizure was estimated to have a street value of approximately $569 million.

NEW FORENSICS FACILITY

Construction of a new forensics facility in Canberra is entering its final stages. The new accommodation will provide state-of-the-art forensic facilities, enhancing and expanding the AFP’s capability to disrupt criminal activity through best-practice and contemporary science. The new facility will function around a forensic operations hub that will enable AFP Forensics to contribute rapid intelligence to investigations and considered opinions to judicial proceedings. The facility is scheduled to be fully operational by late 2015.

Work continues on the new forensics facility in Canberra

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INTELLIGENCE

Highlights

¢¢Throughout 2014–15 AFP Intelligence staff provided input into Operation Appleby—an investigation of persons suspected of being involved in domestic terrorist acts, foreign incursions into Syria and Iraq and the funding of terrorist organisations. To date the investigation has resulted in 11 briefs before the court

¢¢In July 2014 three AFP Intelligence staff were among the first AFP members to deploy to Operation Arew to investigate the downing of flight MH17 in eastern Ukraine

¢¢The Intelligence function commenced operations in support of the AFP-led multi-agency National Disruption Group, which is part of the $630 million counter terrorism package announced by the Australian Government in August 2014

¢¢In November 2014 AFP Intelligence staff worked closely with representatives of other state and Commonwealth agencies in support of the operation led by AFP Protection to prevent disruption of the G20 Leaders’ Summit in Brisbane

¢¢In December 2014 AFP Intelligence staff maintained 24/7 support to the NSW Police Force in its response to the Lindt Café siege in Sydney.

OBJECTIVE

The AFP’s Intelligence function provides advice to the AFP’s strategic and operational decision- makers on law enforcement and national security priorities, especially serious and organised crime and counter terrorism. It also provides high-value covert services to enable law enforcement to disrupt criminal activity in Australia and offshore.

The AFP cooperates with law enforcement partners in national and international operations and participates in multi-agency task forces and forums. REMODELLING OF THE INTELLIGENCE FUNCTION

The Integrated Intelligence Model was implemented on 3 March 2015. The model is designed to enhance:

¢¢tactical intelligence input into AFP operations

¢¢identification of convergences and vulnerabilities in criminal activity across investigations to streamline targeting of organised criminals

¢¢cooperation with national and international partners

¢¢alignment of intelligence outcomes with government, organisational and operational priorities

¢¢efficiency in the allocation of Intelligence function resources in a tightening fiscal environment.

The model also clarifies the Intelligence function’s role within the AFP and its standing within the Australian intelligence community.

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NATIONAL SECURITY

The AFP developed a range of tactical and operational counter terrorism intelligence that has:

¢¢influenced tactical, operational and strategic decision-making

¢¢identified persons of interest and investigative opportunities

¢¢guided investigative activity focused on disrupting domestic terrorist attacks, including the activation of three Joint Intelligence Groups

¢¢supported the AFP-led National Disruption Group, including in diversion programs conducted under the Australian Government’s Countering Violent Extremism Strategy

¢¢contributed to the Australian Government and international law enforcement counter terrorism intelligence efforts.

WORKING WITH DOMESTIC AND INTERNATIONAL AGENCIES

Intelligence staff participated in, and/or led, the Joint Analysis Groups within the three Joint Intelligence Groups that the AFP activated during this period in support of major counter terrorism investigations. Intelligence assessments that the Joint Analysis Groups made informed operational decision-making and action.

The Joint Intelligence Groups and Joint Analysis Groups comprise representatives from the AFP, the NSW Police Force, Victoria Police, the Australian Crime Commission, the Australian Security Intelligence Organisation, the Department of Defence and the Australian Customs and Border Protection Service.

The AFP also seconded a staff member to the Royal Commission into Institutional Responses to Child Sexual Abuse. The member was closely involved in developing information management and retrieval processes and assisting victims of abuse in the information gathering processes of the Royal Commission.

The AFP continues to support Operation Arew—the criminal investigation into the downing of MH17 in Ukraine. Intelligence members provide high-quality assessments and advice to AFP members and international counterparts in support of the independent international investigation.

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OPERATION ARACHNID UNCOVERS DRUG SYNDICATE OPERATING IN AUSTRALIA

In 2014 AFP Intelligence staff generated Operation Arachnid—an investigation of a drugs syndicate with representatives in Europe, South America and Australia. The operation was undertaken by the Polaris Joint Waterfront Taskforce.

The investigation identified companies that had been established to receive imported drugs and two Colombian males who were acting as shore parties in Australia.

The multi-agency Polaris Joint Waterfront Taskforce and its embedded AFP Intelligence staff identified a ‘dry run’ import to Sydney and seized 230 kilograms of methamphetamine—worth AUD$156 million—in bottled water. The AFP also assisted in the seizure by Colombian police of 243 kilograms of cocaine from the same drug suppliers.

The operation involved extensive domestic and international liaison. An AFP Intelligence officer was responsible for coordinating information from all task force participants to ensure the best possible investigative outcomes.

Bottled water containing liquid methamphetamine seized in December 2014

PUBLICATIONS

In 2014–15 AFP Intelligence disseminated 3,052 reports in support of operations, national security and strategic decision-making to national and international partners. AFP Intelligence also disseminated 1,490 reports on behalf of the Australian Security Intelligence Organisation, the Office of National Assessments, the Australian Crime Commission and international partners such as the United States New York Police Department, the Joint Interagency Task Force West and the United Kingdom National Crime Agency.

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COVERT POLICING

Human source and covert policing capabilities enable the AFP to disrupt criminal activity in Australia and offshore in a secure, ethical and accountable manner. In 2014–15 the AFP implemented recommendations from a review of its covert services. Processes were streamlined and the governance framework revised, resulting in operational efficiencies and an increased engagement of the capability.

G20 ILLICIT DRUGS OFFSHORE Covert policing activities provided Covert policing activities provided Covert policing activities provided timely and accurate intelligence on intelligence which contributed to assistance to a foreign law issue-motivated groups that had the identification of an organised enforcement agency, which stated an intent to cause violent crime network involved in the contributed to the disruption of disruption to the G20 Leaders’ importation of MDMA through an international drug cartel and Summit in Brisbane during the air cargo postal stream. This seizure of about 1,075 kilograms November 2014. This contributed resulted in the seizure of 8.5 of cocaine. to the safe and successful conduct kilograms of MDMA and disruption of the summit. of the organised crime network.

COMBATING CRIMINAL INFILTRATION OF MAJOR SPORTING EVENTS

To prevent and disrupt organised criminal threats to integrity in sport, such as match fixing and illegal betting, the AFP entered into memorandums of understanding on cooperation and information exchange with:

¢¢Asian Football Confederation Cup

¢¢International Cricket Council World Cup

¢¢Football Federation of Australia

¢¢International Cricket Council

¢¢Sportradar

¢¢State of Victoria through the Racing Integrity Commissioner

¢¢Tennis Australia Ltd.

The AFP, together with other law enforcement and government agencies, worked with sporting bodies to plan and implement anti-corruption strategies for major 2015 sporting events—the Asian Football Confederation Asian Cup and the International Cricket Council World Cup. Strategies included proactively targeting and disrupting known match fixers. At the conclusion of the events, it was determined there was no evidence of match fixing or related offences.

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OPERATIONS SUPPORT

Highlights

¢¢In 2014–15 the AFP Operations Coordination Centre provided initial critical incident response to the downing of MH17 in eastern Ukraine and the Lindt Café siege in Martin Place, Sydney. As part of the response, the Incident Coordination Centre (ICC) was established and activated on a 24/7 basis. The ICC reported to the AFP executive and the Australian Government

¢¢Following a number of security-related incidents in Australia and overseas, the Operations Coordination Centre saw a significant increase in National Security Hotline reports. During 2014–15 the centre received and processed 12,763 reports—a six-fold increase from 2013–14

¢¢In 2014–15 the Proceeds of Crime Litigation function successfully restrained more than AUD$246.6 million in criminal assets on behalf of the Criminal Assets Confiscation Taskforce

OBJECTIVE

The AFP’s Operations Support function:

¢¢provides centralised monitoring, initial response, legal, coordination and communications support to AFP operations

¢¢implements and manages the AFP’s security posture, including the Protective Security Policy Framework

¢¢delivers the next generation of systems and processes

¢¢oversees portfolio, program and project management.

AFP OPERATIONS COORDINATION CENTRE

The AFP Operations Coordination Centre is the primary point of contact for partner Australian Government agencies; state, territory and international police services; and members of the public.

The Operations Coordination Centre provides a 24/7 capability for centralised monitoring, initial response, coordination and communications for AFP national and international operations.

The centre’s functions include:

¢¢managing Australia’s National Central Bureau and National Contact Point to facilitate Interpol and Europol requests respectively

¢¢providing initial management of family law recovery orders and family law arrest warrants

¢¢managing watch lists for the AFP, including watch lists for state and territory police services and Commonwealth and state authorities

¢¢providing initial management of the National Child Offender System alerts (formerly the Australian National Child Offender Register alerts)

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¢¢providing the AFP national radio communications network

¢¢facilitating AFP inquiries with external agencies, including telecommunications providers

¢¢receiving and evaluating investigation referrals from the public, client agencies and law enforcement partners

¢¢coordinating deployment of the Family Investigation Liaison Officer Program

¢¢administering the governance and requirements for the AFP’s management of property and exhibits.

In 2014–15 the Operations Coordination Centre processed operational requests including:

¢¢479 family law recovery orders and arrest warrants

¢¢12,763 National Security Hotline reports

¢¢13,344 information reports.

In 2014–15 there was an increase of approximately 20 per cent in the number of Interpol and Europol requests to the AFP. In managing this increase, the AFP restructured Australia’s Interpol National Central Bureau and Europol National Contact Point into a dedicated unit, which provided greater opportunity to review processes, practices and priorities. The top three types of crimes actioned through the Interpol National Central Bureau were child sex offences, drug offences and fraud.

The Operations Coordination Centre also:

¢¢initiates and supports the coordination of AFP crisis and emergency management responses to incidents

¢¢initiates and supports the AFP command, control and coordination of select complex operations and planned major events.

Through the ICC, the AFP works with government and law enforcement partners during whole-of-government response and consequence management operations. LEGAL

AFP Legal actively supports the strategic pillars of the AFP by providing ongoing, dedicated risk management support and legal advice across all functions of the AFP both domestically and internationally.

AFP Legal has delivered a significant range of advice to support organisational investigations including counter terrorism, fraud and anti-corruption and new national security legislative reform.

Legal advice and assistance has also been provided for a range of major infrastructure projects, including a new AFP forensics facility in Canberra, and a number of major technology projects, including Program Spectrum and the Data Centre Transition Program.

AFP Legal advises extensively across the AFP in civil litigation and a variety of administrative, employment and industrial matters before the Fair Work Commission, the Administrative Appeals Tribunal, the Federal Circuit Court and the Australian Human Rights Commission.

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AFP Legal also manages compliance with the Freedom of Information Act 1982 (Cth), the Archives Act 1983 (Cth) and the Privacy Act 1988 (Cth).

Despite increasing demand for access to information, the number of requests awaiting processing decreased by approximately 50 per cent over 2014–15. The average response time for applicants has also reduced. PROCEEDS OF CRIME LITIGATION

As part of the AFP-led multi-agency Commonwealth Criminal Assets Confiscation Taskforce (CACT), the Proceeds of Crime Litigation (POCL) function contributes to the outcome of disrupting and deterring serious and organised crime by taking the profit out of crime.

In 2014–15 POCL (on behalf of the CACT) has successfully restrained more than $246.6 million in criminal assets, making it the most successful year to date. POCL also engaged in substantial legislative and policy reform, including the Crimes Legislation Amendment (Unexplained Wealth and Other Measures) Act 2015 (Cth).

POCL continues to strengthen its international and domestic stakeholder relationships by:

¢¢continuing to engage with Camden Asset Recovery Inter-Agency Network (CARIN)—a network of proceeds of crime experts set up in Europe to facilitate speedy and informal interaction between countries regarding proceeds of crime matters

¢¢participating in the CARIN Annual General Meeting and Conference in October 2014. This was an important opportunity for the AFP to participate in the development and structure of the network that is utilised by POCL and the task force more broadly

¢¢participating in the Asset Recovery Interagency Network—Asia Pacific (ARIN–AP), a regional network based on CARIN. Australia holds the 2015 presidency of ARIN–AP

¢¢participating in the Asia–Pacific Economic Cooperation Capacity Building Workshop, which helped to strengthen and develop asset recovery networks within the Asia–Pacific region

¢¢hosting an Asset Management Workshop for senior practitioners from Australia, New Zealand and Indonesia in November 2014.

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AFP TARGETS SUSPECTED MONEY LAUNDERING THROUGH STRUCTURED DEPOSITS

In 2014 the Proceeds of Crime Litigation function settled a case that involved suspected money laundering through the use of structured deposits. The settlement, which followed two years of litigation, resulted in a significant forfeiture to the Commonwealth.

Ms ‘X’, a prominent Malaysian figure, travelled to Melbourne and opened two bank accounts with a major bank. Subsequently, 78 cash deposits were made into the accounts, each less than the AUD$10,000 threshold reporting limit under Australia’s money laundering regime.

The 78 deposits amounted to approximately $800,000. Ms X’s two accounts had a total balance of $4.3 million (the total balance was substantially unexplained). AFP applied for a restraining order on the basis that the deposits were deliberately structured to avoid detection, contravening the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth).

Ms X applied for revocation of the order, alleging that she had been an innocent victim of a money laundering scam. Her evidence in support of the application did not verify her allegations. The evidence she gave resulted in further investigations, which revealed additional accounts held by Ms X and identified an accomplice. This information formed the basis for further restraining orders against Ms X as well as restraining orders on her accomplice’s accounts.

The matter was successfully settled in July 2014 and AUD$2.35 million was forfeited to the Commonwealth.

SECURITY

The AFP operates in a challenging cyber and personal security environment and the security of AFP members and operations is paramount. The AFP’s Security branch manages the physical, operational and personal security of the AFP in line with the Commonwealth Protective Security Policy Framework. The branch:

¢¢provides intelligence and risk-based security mitigation measures to protect personnel, assets and information in Australia and throughout the AFP’s international operations

¢¢reports annually to the Minister for Justice on the AFP’s compliance with the Protective Security Policy Framework

¢¢continues to develop greater personal and physical threat intelligence access and reporting to protect the AFP.

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In 2014–15 the AFP:

¢¢worked with partner agencies to improve Commonwealth personal security vetting and management standards

¢¢developed an insider threat mitigation strategy to manage potential internal threats

¢¢developed strategies to enhance security measures in line with an increase in the National Terrorism Public Alert System level and the increase in counter terrorism threats to police nationally

¢¢developed threat and risk assessments for complex operations such as Operation Arew in Ukraine and other counter terrorism operations

¢¢undertook a review of physical security on AFP facilities and implemented enhanced security measures

¢¢collaborated with fellow law enforcement organisations and international partners to better share security intelligence and strategies to protect members throughout Australia and overseas

¢¢undertook a review of its physical security on AFP facilities and implemented enhanced security measures. SPECTRUM AND STRATEGIC PROGRAMS

The Spectrum Program is the body responsible for the replacement of the AFP’s current operational business systems, including Police Real-time On-line Management Information System (PROMIS), Evidence Management System (EMS) and the Complaint Recording and Management System (CRAMS).

The Spectrum Program is responsible for developing next-generation operational systems and processes, including major system components to support operational capabilities. The Spectrum Program continued to work to advance the implementation of an investigations, intelligence and incident management system, and this project is currently in the system design phase.

The Information Management Program is responsible for developing the strategic direction on information management and managing this capability for the AFP. In 2014–15 the Information Management Program initiated an information governance framework for the organisation.

The Information Management Program also coordinates the Information Steward Network, which was established to champion information management in the organisation and facilitate information management projects and activities. The network comprises two representatives from each AFP function.

The AFP Portfolio Management Office centrally manages change initiatives (new policy proposals, projects and programs) to ensure they remain strategically aligned and will achieve the desired outcomes. In 2014–15 the AFP’s investment portfolio consisted of 99 change initiatives across a range of maintenance, enhancement and new capability activities, totalling AUD$148 million. The Portfolio, Program and Project Management Maturity (P3M3) Assessment conducted in December 2014 identified that the AFP had met its maturity targets and is well placed to continue to manage change initiatives effectively and efficiently.

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GOVERNANCE AND ACCOUNTABILITY

Highlights

In 2014–15 the AFP:

¢¢achieved 209,000 ‘likes’ on its Facebook page, with one post alone reaching more than 3.4 million people

¢¢developed policy initiatives to address the evolving national security environment, including Commonwealth protection measures and addressing the issue of foreign fighters

¢¢Audit Committee considered 16 internal audit reports

¢¢developed the AFP Future Directions Project to consider the future strategic direction of the AFP and its capability requirements

¢¢developed significant national security and criminal justice legislative reforms, including the Counter-Terrorism Legislation Amendment (Foreign Fighters) Act 2014 (Cth), the National Security Legislation Amendment Act (No 1) 2014 (Cth) and data retention legislation.

The AFP’s governance and accountability functions support the organisation’s operations by providing financial management and governance frameworks, human resources and professional development, support to the parliament and management of external accountability obligations.

To enhance this support, the Chief of Staff portfolio was established in November 2014 to centralise and enhance strategic policy, government engagement and corporate communications. It is the conduit between the operational areas of the AFP and the Australian Government on high-level policing and national security policy issues and advises the government on emerging law enforcement challenges, including Australia’s national security and criminal environment.

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CHIEF OF STAFF

OBJECTIVE

The Chief of Staff function enables the AFP to take a centralised approach to engagement with external stakeholders through strategic policy development, enhanced engagement with government and corporate communications. The function ensures that the AFP’s advice to government, parliament and partner agencies on policing issues is coordinated, accurate, relevant and timely. POLICY

In 2014–15 the Chief of Staff function coordinated the AFP’s engagement in whole-of- government decision-making processes and the development of AFP strategic policy on the evolving national security environment. Chief of Staff was involved in:

¢¢addressing the threat of foreign fighters by securing funding to:

££establish the AFP-led National Disruption Group

££establish the Community Diversion and Monitoring Team

££increase the AFP’s international engagement with additional liaison officers at overseas posts

¢¢enhancing protective security measures at Australian Parliament House and Commonwealth parliamentary offices

¢¢enhancing close personal protection for Australian high office holders and foreign dignitaries

¢¢formulating advice to the National Security Committee of Cabinet on critical matters of national security

¢¢contributing to the Five Country Ministerial meeting, held February 2015 in London in the United Kingdom on issues of security, serious and organised crime and cooperative border management

¢¢supporting the AFP Executive through the internal governance forums

¢¢leading AFP policy engagement in the federal budget process

¢¢contributing to whole-of-government strategic initiatives, including:

££border management reforms, including the establishment of Australian Border Force

££Operation Sovereign Borders Joint Agency Task Force

££reforms to governance arrangements on Norfolk Island, specifically the establishment of the continued AFP policing presence

££the establishment of the National Ice Taskforce and development of the National Ice Action Strategy

¢¢coordinating and assisting with the AFP’s contribution to Australia’s membership of the United Nations Security Council.

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Chief of Staff assisted AFP engagement in other law reform related reviews and inquiries, including the Independent National Security Legislation Monitors inquiry into section 35P of the Australian Security Intelligence Organisation Act 1979 (Cth) to assess any impact on journalists of the operation of section 35P. LAW ENFORCEMENT LIAISON

The AFP’s strategic engagement with domestic and international law enforcement partners was supported through the Commissioner’s membership of:

¢¢Australian Crime Commission Board of Management

¢¢Australia New Zealand Policing Advisory Agency Board

¢¢Australia New Zealand Police Commissioners’ Forum

¢¢CrimTrac Board of Management

¢¢Heads of Commonwealth Operational Law Enforcement Agencies

¢¢Law, Crime and Community Safety Council

¢¢National Justice and Policing Senior Officials Group

¢¢Five Eyes Law Enforcement Group.

A number of key policy themes were progressed through these forums, including national security, serious and organised crime, enhanced information sharing, family violence and legislative reform. PARLIAMENTARY AND MINISTERIAL SUPPORT

The Chief of Staff function supported parliamentary processes, through the Minister for Justice, by coordinating and preparing AFP ministerial briefings, correspondence and responses to questions on notice for parliamentary committees, question time and Senate estimates hearings.

PARLIAMENTARY COMMITTEE REPORTS

AFP Chief of Staff supported parliamentary scrutiny of proposed amendments (including private members’ or senators’ bills) and the effectiveness of existing legislation through submissions to, and appearances before, parliamentary committees, including:

¢¢Parliamentary Joint Committee on Intelligence and Security inquiries into the Telecommunications (Interception and Access) Amendment (Data Retention) Bill 2014, the Counter-Terrorism Legislation Amendment Bill (No 1) 2014 and the Counter-Terrorism Legislation Amendment (Foreign Fighters) Bill 2014

¢¢Senate Economics References Committee inquiry into digital currency

¢¢Senate Legal and Constitutional Affairs References Committee inquiries into the ability of Australian law enforcement authorities to eliminate gun-related violence in the community and the AFP’s Oil for Food Taskforce

¢¢House of Representatives Standing Committee on Infrastructure and Communications inquiry into the use of subsection 313(3) of the Telecommunications Act 1997 (Cth)

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¢¢Parliamentary Joint Committee on Law Enforcement examination of the AFP 2013–14 annual report and inquiry into crystal methamphetamine

¢¢Law Reform, Drugs and Crime Prevention Committee (Parliament of Victoria) inquiry into the supply and use of methamphetamine, particularly the drug ice, in Victoria (final report)

¢¢Standing Committee on Foreign Affairs and Trade Inquiry into the potential use by the Australian Defence Force of unmanned air, maritime and land platforms

¢¢Senate Standing Committee on Rural and Regional Affairs and Transport inquiry into airport and aviation security

¢¢Legislative Assembly of the Northern Territory inquiry into the use of the drug ice.

LEGISLATIVE REFORM

To support the government’s law reform proposals and to represent the AFP interests in law reform the Chief of Staff function coordinated AFP input into legislative review and reform processes relating to criminal law and law enforcement.

This work enabled the AFP to shape and influence a range of significant national security legislative reforms to support Commonwealth policing and the Commonwealth Government’s commitment to strengthening national security, including:

¢¢Counter-Terrorism Legislation Amendment (Foreign Fighters) Act 2014

¢¢Counter-Terrorism Legislation Amendment Act (No 1) 2014

¢¢Telecommunications (Interception and Access) Amendment (Data Retention) Act 2015

¢¢Crimes Legislation Amendment (Psychoactive Substances and Other Measures) Act 2015

¢¢Enhancing Online Safety for Children Act 2015

¢¢Crimes Legislation Amendment (Unexplained Wealth and Other Measures) Act 2015.

COMMUNICATIONS

A number of significant communication milestones were achieved in 2014–15 most notably in the growth of the AFP’s profile on social media.

The AFP Facebook page passed the milestone of 200,000 ‘likes’—an increase of approximately 130,000 over last year. The audience size increased by 13 per cent in the first three months of 2015. Online Circle Digital (Facebook Performance Report) identified the AFP as the second fastest growing page within the Australian Government.

The Production and Online teams uploaded 37 videos to the AFP’s YouTube channel. The number of viewings of AFP material through the YouTube channel increased significantly from 4,799 to 186,870 in 2014–15.

The AFP National Media Twitter account is followed by 6,078 journalists, opinion leaders and members of the public (as at 30 June 2015).

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In 2014–15 the AFP National Media Team managed a number of significant media activities, including:

¢¢2,780 media enquiries—an increase of 638 (30 per cent)

¢¢652 sets of talking points—an increase of 122 (23 per cent)

¢¢153 media releases

¢¢38 media events.

The AFP National Media Team managed a significantly increased number of national security related media enquiries—a total of 1,025 for the reporting period.

The Strategic Communications Team developed and provided communication support to a range of internal and external initiatives, including the promotion of AFP recruitment opportunities for sworn policing, Graduate Program and Directions Program intakes. In 2014–15 the team coordinated or supported key community awareness campaigns including:

¢¢National Missing Persons Week

¢¢International Missing Children’s Day

¢¢National Identity Fraud Awareness Week

¢¢National Child Protection Week.

The AFP’s key stakeholder publication, Platypus Magazine, was published twice during the reporting period. An online version of Platypus Magazine and an app were launched on 3 December 2014.

NSW Police Force joining the AFP’s ThinkUKnow cybersafety program. Front (left to right) NSWPF Assistant Commissioner Mark Jenkins; AFP Commander David McLean. Back (left to right) NSW Minister for Justice and Police, Mr Troy Grant MP; Federal Minister for Justice, the Hon Michael Keenan MP

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CORPORATE GOVERNANCE

KEY COMMITTEES FRAMEWORK

The AFP key committees framework sets out the agency’s primary decision-making forums and outlines their responsibilities, membership, meeting frequency and accountabilities.

STRATEGIC AND GOVERNANCE COMMITTEES

AFP strategic committees address issues that correspond to the specific responsibilities of the AFP’s peak advisory committee, the Strategic Leaders’ Group, and provide regular and strategic information to the Strategic Leaders’ Group. The strategic and governance committees are:

¢¢Audit Committee

¢¢Board of Studies

¢¢Finance Committee and its subcommittee, the Performance and Budget Monitoring Committee

¢¢International Policy Coordination Group

¢¢Knowledge and Innovation Committee

¢¢National Managers’ Forum

¢¢National Awards and Recognition Committee

¢¢National Work Health and Safety Committee

¢¢Quarterly Strategic Human Resource Forum

¢¢Remuneration Committee

¢¢Security Committee

¢¢Strategic Investment Committee.

OPERATIONAL COMMITTEES

The operational committees were established to facilitate senior managers’ operational awareness and provide a forum for effective prioritisation across the organisation without an emphasis on the priorities of any one function. The operational committees are:

¢¢AFP Operations Committee

¢¢Operational Safety Committee

¢¢Weekly Operations Committee

¢¢Witness Protection Committee.

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BUSINESS CONTINUITY PLANNING

The AFP has business continuity plans in place for each of its key sites across Australia. Exercises to test the plans are conducted every six months using three scenarios: loss of infrastructure, loss of information and communications technology (ICT) systems and loss of people.

Disaster recovery plans are also in place for critical ICT systems and services that support AFP operations. In the event of an influenza pandemic, business continuity is planned for and managed in a whole-of-government context in line with the requirements of the Department of the Prime Minister and Cabinet.

The AFP is continuing with its Business Continuity Management Improvement Project to address several recommendations from a September 2014 internal audit of the AFP’s business continuity management. The project continued to deliver stronger governance and processes throughout 2014–15. DISCRETIONARY GRANTS

Information on grants that the AFP awarded during the period 1 July 2014 to 30 June 2015 is available at www.afp.gov.au/about-the-afp/accountability-requirements/grants. FRAUD CONTROL AND ANTI-CORRUPTION PLAN

The AFP is committed to managing fraud and corruption risks as part of its everyday business and promotes a culture of ethical conduct and behaviour. The AFP’s Fraud Control and Anti- Corruption Plan and policy statement apply to all appointees, contractors and service providers and are consistent with the AFP’s professional standards framework.

Fraud and corruption risks are reviewed regularly. The Strategic Leaders’ Group and the Audit Committee monitor progress on the implementation of the plan as part of their oversight and assurance roles.

More information on the AFP’s professional standards framework and performance in controlling fraud and corruption risk can be found under ‘External scrutiny’ in this chapter. GOVERNANCE

The AFP manages its governance through each of its functions and portfolios. The Chief of Staff and Operations Support functions manage the AFP whole-of-agency governance and contribute to business performance, assurance and accountability by:

¢¢reviewing and developing the AFP’s organisational performance framework, including preparing the planned performance section of the Portfolio Budget Statements

¢¢developing the AFP Corporate Plan 2015–19 through consultation with the AFP’s senior executive and in accordance with the Public Governance, Performance and Accountability Act 2013 (Cth)

¢¢monitoring organisational performance throughout the AFP, with particular emphasis on the joint reporting of both operational success and organisational health

¢¢conducting the annual business satisfaction survey, which measures external stakeholder/ partner satisfaction

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¢¢managing and delivering the AFP’s Internal Audit Program, including tabling 16 audit reports for consideration by the AFP Audit Committee focusing on aspects of AFP business operations such as intelligence, surveillance, ICT, workforce planning and a range of corporate systems. Key outcomes of the audits included improvements to process design and ongoing risk management

¢¢delivering AFP compliance obligations under the Archives Act 1983 (Cth)

¢¢delivering AFP compliance obligations under the Privacy Act 1988 (Cth), including any revisions in process due to the Privacy Amendment (Enhancing Privacy Protection) Act (Cth), which came into effect in March 2014

¢¢publishing information on the AFP website, under both the AFP’s Information Publication Scheme and our FOI Disclosure Log requirements under the Freedom of Information Act 1982 (Cth). INTERNAL AUDIT

In 2014–15 the AFP Executive-endorsed annual Internal Audit Program was delivered using in-house and external resources. The AFP Audit Committee met four times and considered 16 internal audit reports. The annual internal audit program was developed taking into consideration risk assessments that identified the AFP’s most significant potential vulnerabilities.

The Audit Committee allocates responsibility for implementing recommendations from the internal audit and relevant Australian National Audit Office audits to AFP business units. Progress is monitored through regular implementation reporting to the Audit Committee. RISK MANAGEMENT AND INSURANCE

As an operational law enforcement agency, the AFP embraces risk management as an integral part of its business. The safety and wellbeing of AFP personnel is the first and foremost consideration within the AFP’s Strategic Risk Profile.

The AFP’s risk management framework aligns with the Commonwealth Risk Management Policy, international standards and Comcover’s better practice guide on risk management. Risk management is embedded in AFP business planning, operations, procurement and contract management, and project management. Risk management also features in the AFP Leadership Philosophy and is actively considered in internal resource allocation and investment decision-making.

During 2014–15 the AFP’s risk management governance was further strengthened by:

¢¢integrating risk assessment training into the AFP’s induction and targeted operational courses and workshops

¢¢refining guidance materials, including an updated AFP National Guideline and AFP Fraud Control and Anti-Corruption Plan, to further integrate risk management into business processes

¢¢implementing a consistent approach to communicating and reporting on risk and raising awareness of the importance of risk management across the organisation.

Comcover insurance is a key component of the AFP’s strategy for mitigating and managing financial risk. The AFP participates in the annual Comcover Risk Management Benchmarking Survey, which encourages agencies to adopt a best-practice approach to managing risk. This year, entities were asked to select a risk maturity target that represented their aspirational state of risk management capability in the next 12 months. The AFP selected and achieved an overall target level of ‘integrated’ risk management maturity.

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ECOLOGICALLY SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE

In 2014–15 the ICT function further improved the AFP’s ecological sustainability with reference to the Australian Government ICT Sustainability Plan 2010–2015. The AFP has implemented a range of enhanced ecologically sustainable development measures, including the National Australian Built Environment Rating System and the use of environmentally efficient design, sustainable materials and recyclable products. Ongoing projects include:

¢¢waste management systems that include segregation of waste into recyclable, organic and waste-to-landfill

¢¢energy-efficient lighting and lighting control systems

¢¢viability assessment of solar energy technologies

¢¢water conservation technology and rainwater harvesting.

The Data Centre Transition Program has ensured the continued consolidation of ICT equipment. The simulation of actual hardware to allow software to run unmodified, known as ‘virtualisation’, has also progressed. This has a number of benefits, as virtualised devices enable smooth scalability, reduce the carbon footprint and simplify disaster recovery. Costs are lowered because less physical hardware is required and savings can be made for incidentals such as electricity, down times and maintenance.

The sustained effort in reducing mechanical power consumption at the current Data Centres has achieved substantial power savings and a reduction of greenhouse gas emissions.

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EXTERNAL SCRUTINY

AUDITOR-GENERAL REPORTS

During the reporting period, the Australian National Audit Office audited the AFP’s financial statements.

As at 30 June 2015, the AFP was the primary subject of one Australian National Audit Office performance audit:

¢¢The Australian Federal Police’s Management of its Use of Force regime.

The audit is still in progress. The Auditor-General is expected to table the report to the parliament in 2015–16.

As at 30 June 2015, the AFP was an active participant in the following cross-agency audit:

¢¢Cyber Attacks Securing Entities ICT Systems.

The audit is still in progress and is to be tabled in Spring 2015.

AUDIT REPORT NO 4—CONFIDENTIALITY IN GOVERNMENT CONTRACTS

The Australian National Audit Office conducted a cross-agency performance audit of the Confidentiality in Government Contracts: Senate Order for Departmental and Agency Contracts, which assessed the appropriateness of the use and reporting of confidentiality provisions in Australian Government contracts. The AFP was an active participant in this audit.

This was the 14th in a series of audits that fulfils the Senate request for an annual report on compliance with the order. The audit was completed during 2014 and tabled in parliament in September 2014.

The report contained two recommendations that are likely to be relevant for all agencies:

¢¢a recommendation for improving the practical support for staff in assessing and reporting on confidentiality provisions

¢¢a recommendation for increasing the accuracy of contract reporting.

The AFP has a number of controls in place that are designed to ensure the correct use of confidentiality provisions. The controls administered by the AFP’s National Procurement and Contracts (NPC) area were acknowledged as effective in the ANAO report. One of these is the central procurement unit, which was acknowledged in the report. NPC also has a key role in monitoring and ensuring the accuracy of reported contract information.

Although there were no specific findings for the agency, the AFP agreed with the two general recommendations that arose from the audit.

AUSTRALIAN INFORMATION COMMISSIONER DETERMINATIONS

During 2014–15 the Office of the Australian Information Commissioner made nine determinations concerning AFP freedom of information decisions. Of the nine published determinations, four provided the applicant with greater access to the documents and five upheld the original decision under review.

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COMMONWEALTH OMBUDSMAN REPORTS REVIEWS OF AFP COMPLAINT MANAGEMENT

Division 7 of Part V of the AFP Act requires the Commonwealth Ombudsman to conduct at least one annual review of the AFP’s administration of Part V of the AFP Act and report to parliament on the results of any such reviews.

During the reporting period, the Ombudsman reported findings from 2013–14. Overall, the Ombudsman found that the AFP has a comprehensive administrative framework governing the management of complaints it receives from both members of the public and AFP appointees, and that it administers this framework adequately.

The findings of the Ombudsman’s 2014–15 review will be reported and published in 2015–16.

COMPLAINT MANAGEMENT

Part V of the AFP Act defines the categories of complaints about AFP appointees. Complaints are dealt with as breaches of the AFP Code of Conduct, which fall into one of the four categories set out in the AFP Act. Conduct issues falling within Category 1 are the least serious and relate mainly to customer service. Category 2 complaints relate to minor misconduct, inappropriate or unsatisfactory behaviour. Category 3 complaints relate to serious misconduct that does not give rise to a corruption issue. Category 4 complaints relate to corruption, and these are referred to the Australian Commission for Law Enforcement Integrity (ACLEI).

In 2014–15 the AFP received a total of 477 complaints—a decrease on the previous reporting period figure of 522. The number of new alleged breaches of the Code of Conduct received by the AFP increased from the previous reporting period: there were 934 new alleged breaches for 2014–15 compared with 873 alleged breaches for 2013–14. However, the figure has decreased overall from the previous two reporting periods (see Figure 8 below and Appendix A).

FIGURE 8 TREND IN THE NUMBER OF COMPLAINTS AND ASSOCIATED ALLEGED BREACHES 2010–11 TO 2014–15

s) 2,000 1,000 1,800 900 1,600 800

hes (bar 1,400 700 1,200 600 1,000 500 800 400 600 300 400 200 Complaints (line) 200 100 0 0

Alleged conduct breac 2010–11 2011–12 2012–13 2013–14 2014–15

Category 1 breaches Category 2 breaches Category 3 breaches Category 4 breaches

Note: Category 1 is the least severe. More detail in Appendix A.

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JUDICIAL DECISIONS AND DECISIONS OF ADMINISTRATIVE TRIBUNALS

During 2014–15 there were no judicial decisions or decisions of administrative tribunals that have had, or may have, a significant impact on the AFP. STRENGTHENING PROFESSIONAL STANDARDS

The AFP has recently commenced a body of work to review the Fisher Model of complaint management to ensure standards remain high and its professional standards framework is consistent with better practice.

The AFP has provided support to ACLEI, and other agencies under ACLEI’s jurisdiction, in corruption prevention and investigations support when requested.

The AFP works closely with ACLEI, the Commonwealth Ombudsman’s Office and the Australia New Zealand Policing Advisory Agency to share experience in the areas of recruitment and selection, recognising and treating integrity risks, understanding conflicts of interest and ensuring confidence in reporting mechanisms and complaint management. Representatives from ACLEI and the Commonwealth Ombudsman’s Office continue to present at a range of AFP training programs.

A range of educational programs were provided during the year—for example, respectful workplace training, integrity and ethical decision-making workshops for Leadership on the Frontline participants, pre-deployment preparation and mentoring of recruits.

The AFP Drug Program continues to be an important element of the AFP’s Integrity Framework. The drug testing program is seen as a benchmark program. The AFP liaises with its jurisdictional partners in an advisory capacity with regard to drug testing.

The Professional Standards Unit assesses applicants to the AFP against character standards mandated in the employment character guidelines. The guidelines define minimum AFP character standards for prospective applicants. Assessment of an applicant’s character considers all available information and each applicant’s ability to comply with the AFP’s professional standards in both an official and private capacity. The guidelines contribute to meeting community expectations that all AFP appointees act with the highest level of integrity.

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FINANCE AND COMMERCIAL

The AFP’s Finance and Commercial function delivers a range of financial, property, asset management and shared services that support the AFP’s operations.

In 2014–15 AFP Finance and Commercial provided continued high-standard services to the public and internally to AFP’s onshore and international networks. Some key recent achievements include:

¢¢contributing to multiple government working groups and discussion forums to assist with whole-of-government improved process and reform programs

¢¢continuing to improve the efficiency of operations by promoting use of online applications; enhancing corporate system functionality; strengthening Enterprise Resource Planning through consistent upgrades; promoting stronger financial management and governance arrangements; and maintaining a strong control framework underpinned by the Public Governance, Performance and Accountability Act 2013 (Cth)

¢¢continuing to implement Program Jupiter by starting construction of the Gold Coast Operations Centre

¢¢constructing the new forensics facility at Majura in Canberra

¢¢managing a significant increase in requests for criminal history checks. Most noticeable was the provision of police and Australian Security Intelligence Organisation checks that directly contributed to protecting national security interests for the G20 Leaders’ Summit and its pre- meetings, as well as the Asian Football Confederation Cup and Cricket World Cup

¢¢establishing an Integrated Regional Support Model as a ‘One AFP, One Corporate’ initiative to eliminate duplication and streamline service delivery

¢¢delivering high-quality, value-added financial advice

¢¢continuing to deliver strong financial management and control

¢¢delivering unqualified financial statements.

AFP members on patrol during a match in the Cricket World Cup in Canberra

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The corporate warehouse in Canberra is a 4,000m2 purpose-built logistical facility that enhances the AFP’s capabilities for domestic and international deployments

FINANCIAL PERFORMANCE

The AFP’s $1,336 million departmental operating income for 2014–15 comprised $1,061 million in government appropriation, $160 million from the ACT Government for policing services and $115 million in other revenue. In addition, the AFP received $35 million in government appropriation for departmental capital expenditure and $84 million in equity injections. The AFP also administered $18 million in expenses on behalf of the government in 2014–15.

In 2014–15 the AFP reported a departmental comprehensive loss of $100 million. Excluding the impact of unfunded depreciation of $95 million, the AFP recorded a deficit for the year of $5 million, less than 1 per cent variance from budget. The result was achieved in the context of a successful year in which the AFP has met all its performance targets and delivered effectively for the government on national security, on international deployments including in response to the downing of MH17 and in meeting international aid responsibilities.

Audited financial statements showing the AFP’s financial position are in Chapter 7. PROCUREMENT

The AFP applies the Commonwealth Procurement Rules when procuring property and services, including consultancies. The rules are applied to activities through the Commissioner’s Financial Instructions with supporting guidelines.

The AFP has a centralised procurement and contracting team that actively promotes and focuses on compliance. In 2014–15 the AFP conducted a number of major tender processes including new supply arrangements for an Employee Assistance Program, Clinical Psychological Assessments of Entry Level Recruits, Courier and Freight Services and Internal Audit Services. The AFP also established a new arrangement for Alarm Monitoring Services.

The AFP supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website: http://www.finance.gov.au/procurement/ statistics-on-commonwealth-purchasing-contracts/.

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The AFP recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website: http://www.treasury.gov.au/PublicationsAndMedia/Publications.

The AFP’s procurement practices support SMEs by promoting use of the Commonwealth Contracting Suite for low risk procurements valued under $200,000, encouraging the use of credit card payments when engaging small businesses and setting the default terms of payment for small business through the accounts payable system to seven calendar days.

Information on the value of contracts, including consultancies, is available at https://www.tenders.gov.au/. The AFP regularly reviews and updates its annual procurement plan and published the Senate Order on departmental and agency contracts on its website early in 2015. From mid-2015 this report will be available on the website via a link to AusTender https://www.tenders.gov.au/.

In 2014–15 the AFP entered into six contracts of $100,000 or more which did not provide for the Auditor-General to have access to the contractor’s premises. These contracts are detailed below.

TABLE 6 CONTRACTS WITHOUT AUDITOR-GENERAL ACCESS 2014–15

Name of vendor Purpose of contract Value of contract Reason

Kent Police – Chief Provision of Risk $300,000 The AFP accepted Constable of Kent Assessment Tools the vendor terms

Telstra Corporation Ltd Provision of $303,338 The AFP accepted telecommunications the vendor terms services

Microsoft Pty Ltd Microsoft Premier $685,500 The AFP accepted Support Services the vendor terms

Telstra Corporation Ltd Supply of Distributed $346,444 The AFP accepted Antenna System—Cairns the vendor terms

Brisbane Airport Property lease $11,787,699 The AFP accepted Corporation Pty Ltd the vendor terms

Brisbane Airport Property lease $1,314,141 The AFP accepted Corporation Pty Ltd the vendor terms

CONSULTANCIES

During 2014–15 the AFP entered into 31 new consultancy contracts. The total actual expenditure on new consultancy contracts in 2014–15 was $672,511. In addition 13 ongoing consultancy contracts were active in 2014–15 involving a total actual expenditure of $662,106 (GST inclusive). Information on the value of individual contracts and consultancies is available on the AusTender website.

Prior to engaging consultants, the AFP takes into account the skills and resources required for the task, the skills available internally and the cost-effectiveness of engaging external expertise. The decisions to engage consultants were made in accordance with the Public Governance, Performance and Accountability Act 2013 (Cth), Commonwealth Procurement Rules and relevant internal policies.

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TABLE 7 EXPENDITURE ON CONSULTANTS 2011–12 TO 2014–15

2011–12 2012–13 2013–14 2014–15

New contracts entered into 46 41 33 31

Total expenditure $3,414,754 $3,415,817 $1,669,358 $1,334,617 (new and ongoing contracts)

EXEMPT CONTRACTS

During 2014–15 the AFP did not publish on AusTender the details of 84 contracts, with a total value of $20,078,224 because the details would disclose exempt matters under the Freedom of Information Act 1982 (Cth).

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HUMAN RESOURCES

The AFP’s Human Resources function underpins AFP operational outcomes by managing workforce governance arrangements, enterprise agreements, recruitment, workforce planning and diversity. WORKFORCE OVERVIEW

The AFP had 6,751 staff at 30 June 2015, including 3,550 sworn police and 681 Protective Service officers. Forty-four per cent of AFP staff were located outside the ACT, including 362 staff overseas and 30 serving in Commonwealth external territories. Thirty-five per cent of AFP staff were female, which is a higher proportion than as at 30 June 2014. Further AFP staffing statistics are in Appendix C.

The AFP experienced historically low attrition rates during 2014–15. Based on two–year trend data and effective 30 June 2015 the AFP attrition rate is currently 2.40 per cent. Attrition rates by sworn status are:

¢¢sworn police—1.81 per cent

¢¢sworn protective service officers—1.63 per cent

¢¢unsworn staff—3.42 per cent.

STRATEGIC WORKFORCE PLANNING

In 2014–15 the AFP continued to implement a number of strategic projects to continually enhance the AFP workforce capability and flexibility and build on the AFP Strategic Workforce Plan 2013–2015. For example, the AFP:

¢¢moved to the next phase of Program Atlas, delivering a roadmap that outlines the strategic direction for human resources information management within the AFP over the next five years

¢¢expanded the Job Family Model. The Job Family Model is a whole-of-government initiative (developed by the Australian Public Service Commissioner) that has been adopted by the AFP. It enables an organisation to categorise its workforce into major groups that have the same skills, qualifications, training and licences

¢¢planning for the AFP Strategic Workforce Plan 2015–2020.

PROGRAM SATURN

In 2014–15 the AFP initiated Program Saturn to build a human resources service delivery model for the future. The aim is to create an inclusive, dynamic and adaptable AFP workforce to ensure that, for any task in the AFP, we have ‘the right person, with the right skills, in the right role, at the right time’.

As an element of Program Saturn, the AFP conducted an AFP staff survey in March 2015. This provided staff an opportunity to give feedback and allowed the AFP to measure opinion on organisational health, individual wellbeing and staff engagement. Key themes and outcomes from this survey will inform future strategies to enhance organisational outcomes through better people management frameworks.

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As a result of continued low natural attrition and applied government savings, the AFP embarked on a targeted voluntary redundancy program in 2014–15. Voluntary redundancies were offered through balancing experience levels with the need to maintain workforce capability across business outcomes. A total of 240 voluntary redundancies were accepted by a cross-section of staff, both sworn and unsworn. INDUSTRIAL RELATIONS

The terms and conditions of employment for non-senior executive AFP employees are set out in the AFP Enterprise Agreement 2012–2016 and the AFP Executive Level Enterprise Agreement 2011.

The AFP Enterprise Agreement 2012–2016 applies to all employees classified between Band 1 and Band 8, and the AFP Executive Level Enterprise Agreement 2011 provides the framework for executive-level employees. The AFP Executive Level Enterprise Agreement 2011 nominally expired on 18 January 2015. At 30 June 2015 bargaining was currently underway for a new agreement.

These employment instruments preserve terms and conditions that reflect the contemporary requirements of a dynamic law enforcement environment yet recognise the current fiscal position of the broader public sector.

Both instruments allow the AFP to deliver business outcomes that reflect the needs of the community while supporting robust corporate priorities and legislative requirements. This flexibility places the AFP in a strong position to build upon organisational success and realise further efficiencies in managing its workforce. WORKFORCE DIVERSITY

The AFP recognises that it is essential for the AFP to increase the diversity of its workforce in order to remain relevant and responsive to the needs of the Australian community.

The AFP Diversity Program prioritises five diversity groups in our workforce: women; Aboriginal and/or Torres Strait Islander Australians; lesbian, gay, bisexual, trans and intersex (LGBTI) people; people with disability (including mental health difficulties); and people from culturally and linguistically diverse backgrounds.

The AFP Diversity Program has continued to develop and implement goals, strategies and measures designed to include, recruit and retain members from these five priority diversity groups.

Diversity-related highlights over the past year include:

¢¢implementing a variety of initiatives designed in collaboration with the AFP Malunggang Indigenous Officers Network. The initiatives help us to retain Aboriginal and/or Torres Strait Islander members who joined through the AFP Directions Program, which is the AFP’s entry-level program for Aboriginal and/or Torres Strait Islander Australians. The initiative has contributed to the 100 per cent retention rate from the 2013 cohort of trainees. Further Aboriginal and/or Torres Strait Islander Australians AFP staffing statistics are in Appendix C

¢¢winning an award at the 2015 Australian Workplace Equality Index Awards. The AFP was ranked joint 17th (with Department of Defence) on LGBTI workplace inclusion and was the joint highest ranking public sector employer

111 AFP ANNUAL REPORT 2014–15

¢¢marking a variety of days of significance by holding AFP-wide inclusion events such as International Day of People with Disability, NAIDOC Week and National Reconciliation Week

¢¢delivering diversity awareness training courses and conferences, including working in partnership with AFP counter terrorism teams to provide training on Islamic considerations in our work; two Gay and Lesbian Liaison Officers Network courses; respectful workplace training; and diversity training through the AFP Malunggang Indigenous Officers Network, the Gay and Lesbian Liaison Officers Network, the AFP Ability Advisory Network and the Women’s Network

¢¢holding two meetings of the AFP Diversity Council. The council is chaired by the Chief Operating Officer and comprises diversity employee network champions (at the Deputy Commissioner and Assistant Commissioner level), network chairs and Human Resources management. Major outcomes from these meetings include increased support for diversity- related work being considered ‘business as usual’ in the wider AFP and the decision to include targets for numbers of sworn women and Aboriginal and/or Torres Strait Islander members of the AFP in the new AFP Diversity and Inclusion Strategy 2015–2020 (currently being developed)

¢¢the AFP Commissioner communicating a clear message to all AFP members that diversity and inclusion are vital elements of an effective policing organisation.

Consistent with the National Disability Strategy 2010–2020 (www.dss.gov.au), the AFP creates an inclusive and accessible workplace and provides personal and community support (through the AFP Ability Advisory group) for people with disability in the AFP and those who care for people with disability. The AFP will also contribute to realising the National Disability Strategy 2010–2020 through the AFP Strategic Workforce Plan.

AFP Chief of Staff, Assistant Commissioner Justine Saunders, receiving an award at the 2015 Australian Workplace Equality Index Awards on behalf of the AFP. Left to right: Master of Ceremonies Mr Mark Trevorrow (‘Bob Downe’), former High Court Justice Michael Kirby, Assistant Commissioner Justine Saunders and Brad Cooper, CEO BT Financial

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RECRUITMENT

During 2014–15 AFP Recruitment considered approximately 20,000 applications to join the AFP in police, protective service officer and unsworn roles.

Following assessment of applications, delivery of assessment centres and consideration of security, medical, fitness, professional standards and psychological suitability, sworn recruitment has comprised:

¢¢105 police recruits

¢¢73 Protective Service Officers

¢¢84 specialist sworn roles (recruited internally), which included:

££48 Close Personal Protection

££31 Specialist Response Group

NAIDOC breakfast flag raising ££five Canine capability.

Under Program Saturn, a review of recruitment methodologies and strategy for sworn and unsworn recruitment has commenced. The review aims to ensure that the AFP is well placed to develop the skills, capability and diversity mix required to meet operational requirements now and into the future.

Attestation of Federal Police Development Programs 1 and 2 at AFP Headquarters, Canberra in June 2015

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WORK HEALTH SAFETY AND REHABILITATION

AFP Recognition and Organisational Health has responsibility for work health safety and rehabilitation. The branch delivers an Organisational Health Program in conjunction with Medical Services and Wellbeing Services.

The Organisational Health Program takes a multi-disciplinary approach to supporting all AFP members. The AFP combines its professional expertise in this way to enable it to meet its duty of care under the Work Health and Safety Act 2011 (Cth).

The program emphasises education, prevention and support in line with legislation, the AFP Strategic Plan, Risk Management Framework and AFP Strategic Workforce Plan 2013–2015.

The aim of the Organisational Health Program is to increase safety in the workplace. This is achieved by:

¢¢preventing and reducing the number and severity of injuries and illnesses and the associated costs

¢¢educating and promoting working health, wellbeing and capacity to work

¢¢fostering innovation, quality and efficiency through continuous improvement.

During 2014–15 the Work Health Safety and Rehabilitation Team conducted an audit of its rehabilitation management systems pursuant to section 41 of the Safety, Rehabilitation and Compensation Act 1988 (Cth). The audit showed a 96 per cent conformance rate. To assess compliance with the Work Health and Safety Act 2011 (Cth) and its supporting regulations, the AFP also conducted audits of its work health and safety management systems in overseas missions and operations, including Vanuatu, Tonga, Timor-Leste, Samoa, PNG, Norfolk Island, Nauru, Jervis Bay and Cyprus.

WORK HEALTH AND SAFETY LEGISLATIVE REPORTING REQUIREMENTS During 2014–15 the AFP notified Comcare of 16 incidents under section 38 of theWork Health and Safety Act 2011 (Cth). The AFP did not receive any provisional improvement notices. There were no formal investigations by Comcare. No notices were issued pursuant to Part 10 of the Work Health and Safety Act 2011 (Cth). Early intervention injury management assistance was provided for 59 cases. PROFESSIONAL DEVELOPMENT

In 2014–15 AFP Learning and Development delivered more than 900 training activities in support of development of organisational capability. This activity also extended to significant international capacity and capability building, particularly in support of the International Deployment Group and International Network activities.

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INVESTIGATIONS, LEADERSHIP AND SPECIALIST TRAINING During the year more than 260 members participated in the Human Source Handling Program or the Advanced Human Source Handling Program—an increase of 140 per cent from the previous year. This training is tiered to enable members to progressively build on skills and knowledge over the two programs, first equipping them with fundamental concepts of managing human sources and subsequently providing them with an opportunity to demonstrate the skills via practical scenarios.

In January 2015 the Investigations Leadership and Specialist Training Team facilitated an eight-day Interview Coordinator Program. The program supports the Investigations Doctrine philosophy by building on investigators’ expertise, which in turn further develops the AFP’s capabilities and will supplement the work of Senior Investigating Officers during major operations.

Deputy Commissioner Leanne Close presents a session at the AFP’s Barton College

During 2014–15 a total of 36 members received their Detective designation following the completion of the Detective Training Program Stage Three.

In March 2015 the inaugural Border Force Investigations Course commenced at the AFP College. Twenty participants successfully completed the eight-week course and are now eligible to be awarded the Certificate IV in Government (Investigation). The course is a joint enterprise between the AFP, the Department of Immigration and Border Protection and the Protective Security Training College. The course characterises the strong partnerships that exist across Commonwealth agencies.

The 56th Management of Serious Crime (MOSC) program was conducted in August 2014. An International MOSC program was held at the Jakarta Centre for Law Enforcement Cooperation between October and November 2014, comprising participants from Australian and international law enforcement agencies. These programs focused on enhancing domestic and international capacity to collaboratively manage organised crime and national security threats.

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In 2014–15 the Corporate Training Team provided training to sworn and unsworn AFP staff:

¢¢384 members were trained in Effective Internet Searching

¢¢162 members were trained in Cultural Awareness

¢¢187 members were trained in Searching for Legislation and Case Law

¢¢133 members were trained in using the Police Real-time On-line Management Information System (PROMIS) and 123 received Specialist PROMIS training (external police and internal specialist areas)

¢¢290 members completed first aid training.

The Intelligence Training Team provided domestic and international training to support the tradecraft skills of AFP intelligence members and national and international law enforcement agencies. A total of 10 international training activities were delivered in the United Arab Emirates, Bhutan, Thailand, the Philippines, Turkey, Sri Lanka and Indonesia, building intelligence capabilities for partner agencies.

Delivered by the Corporate Training Team, the AFP Induction Program was also upgraded with new content and a new delivery model. This is to ensure that both sworn and unsworn members continue to receive a contemporary and comprehensive introduction to the organisation. The updated Induction Program forms part of a broader suite of initiatives under the Program Saturn reforms, known as Project Titan (Training in Tandem with AFP Needs). The key focus of this project is the Professionalisation of Police Development Framework, which is designed to provide a structured development pathway from pre-recruitment to retirement.

OPERATIONAL SAFETY AND PROTECTION The Operational Safety and Protection Team was instrumental in maintaining the Commissioner’s Order on Operational Safety (CO3) and all of the training and skill maintenance that occurs pursuant to that order. The team also undertook research on ballistic vests and continued to take the lead on identifying the most suitable platform for the organisation. The Specialist and Driver Training Team delivered driver training to all recruit training programs and also to four Specialist Operator Level One programs. The team delivered a close protection course and a Skills Maintenance Program to the Samoa–Australia Police Partnership. It also delivered a number of surveillance driver training programs at short notice in response to the elevation of the national security threat rating. Since July 2014 the Operational Safety Training Team has delivered training in firearms, operational safety, Public Order Management and Immediate Action Rapid Deployment to over 170 recruits as well as annual assessments for all sworn officers. The team also conducted a pilot Immediate Action Rapid Deployment program for ACT Policing uniformed officers. This training, including ‘Train the Trainer’, is now being implemented across ACT Policing. Between February and June 2015 the Foundation and External Training Team delivered firearms training, the subsequent Official Firearms Qualifying Assessment and Defensive Tactics to six recruit courses, with ongoing external agency delivery on demand. Throughout this period the team also conducted ongoing curriculum review and development on the Operational Safety Trainer manual and the Operational Safety Trainer Qualifying Program. The Operational Safety and Protection Team has been liaising closely with Australian Customs and Border Protection Service on the adoption of the AFP Use of Force package.

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The Health and Fitness Team delivered physical training and remedial health and fitness programs to recruits and functional fitness training to in-service members. The team also continues to coordinate gateway recruitment Physical Competency Assessment locally and regionally in support of AFP Close Personal Protection operations.

RECRUIT AND REGIONAL TRAINING The Regional Training Teams support organisational capability development by delivering training as identified by Learning and Development Canberra, office managers and/or office operations committees. In 2014–15 the teams trained over 170 Federal Police Development Program and Protective Service Officer recruits, who were subsequently deployed throughout Australia.

BUSINESS AND TRAINING SUPPORT The Business and Training Support Team provides assistance in the design and delivery of Learning and Development training programs, as well as quality assuring its training and compliance to the National Standards for Registered Training Organisations (RTOs). Additionally, this team provides study and literacy support to trainees. New Learning and Development trainers are required to undertake the Certificate IV Training and Assessment. In 2014–15 this was delivered through Learning and Development’s Trainer Development Program conducted at the AFP College, with certificates being awarded by Charles Sturt University as part of a collaborative agreement with the AFP College. Located in Canberra, the AFP College is the flagship learning centre of the AFP and provides accommodation, catering, fitness, training and meeting facilities. In October 2014 the AFP College received an Offer of Delegation by the National Vocational Education and Training Regulator, the Australian Skills Quality Authority. This offer allows the AFP College to manage its own scope of registration and has been made only to a small number of RTOs that have demonstrated high levels of competence and compliance. The Delegation Agreement was signed by both parties in June 2015.

The Online Learning Team developed and released 10 new online training courses to support AFP members in carrying out their duties and obligations in both a corporate and operational capacity. This reflects the ongoing commitment of L&D to the government’s Australian Flexible Learning Framework, particularly in the area of e-learning.

The first half of 2015 saw the completion of the gymnasium courtyard redevelopment project. This project resolved drainage issues, installed new soft-fall flooring and installed a roof over the majority of the courtyard to provide an all-weather facility.

The firing range at Majura Complex in Canberra was also upgraded, with installation of a new wireless target training system to maintain functionality and reduce operating maintenance costs.

The AFP National Library continued to provide a range of information services to support business areas and individuals in their operational work and for AFP approved studies. There are currently over 3,000 subscribers to the products that the AFP National Library develops, which are specifically tailored to the core functions of the organisation.

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INFORMATION AND COMMUNICATIONS TECHNOLOGY

The AFP’s ICT function provides the AFP with dependable, secure and integrated ICT infrastructure and services that are capable of supporting the agency’s operational and management needs. PERFORMANCE

In 2014–15 the ICT function rose to the challenges of supporting major and prolonged AFP operations as well as significant national events whilst continuing to stabilise and consolidate ICT delivery across the agency.

MAJOR OPERATIONS

ICT provided local and international support for a number of major operations, including AFP Missions in Papua New Guinea and the Solomon Islands.

The most extensive support was for Operation Arew in the wake of the MH17 aircraft downed in Ukraine. Communications and support were established onsite. Daily geospatial mapping updates proved invaluable in ensuring the safety of AFP personnel as they relocated to the crash site in an active conflict zone.

The ICT Support Centre moved to a 24/7 working pattern during the initial two weeks of the deployment to ensure rapid response to the needs of Operation Arew members. The available bandwidth was increased in order to support the large amount of forensic data that needed to be analysed in Canberra, and secure communications were established from The Hague to enable sensitive matters to be addressed in a timely manner.

The ICT function built the forward posts in Ukraine, the Embassy in The Hague, and Hilversum, Driebergen and other locations in the Netherlands supporting the investigation.

ACT POLICING

The Mobile Phone Location (MoLI) Push solution was deployed in the ACT Policing Computer Aided Dispatch capability. The MoLI Push solution provides the precise location of the mobile phone from which an emergency call originates, enabling more rapid dispatch to the location.

AFP OPERATIONS COORDINATION CENTRE

The Computer Aided Dispatch capability was upgraded to improve dispatch activities and align the AFP Operations Coordination Centre and ACT Policing Intergraph Computer Aided Dispatch versions. While this was a necessary change to upgrade from a version that would no longer be supported by the vendor, it also provided significant improvements to enable much closer integration between the two versions of the system into the future.

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INTERNATIONAL DEPLOYMENT GROUP

A Public Cloud offering was used to enable members to access office productivity software, email, contact, calendars and file storage without being directly connected to the AFP network.

The facility was provided in Papua New Guinea as part of Operation Copperplate. It has been established as the architecture pattern that will give the International Deployment Group a consistent, cost-effective and scalable information technology solution across the Pacific.

MAJOR EVENTS SUPPORT

The ICT function provided support to AFP members who were deployed to the G20 Leaders’ Summit, the Asian Football Confederation Cup and the International Cricket Council Cricket World Cup.

MOBILITY

All AFPNet XP laptops were upgraded to Windows 7. This upgrade, along with the introduction of MOBIS (Mobile Information System), has provided the AFP with an improved mobility solution for members required to use laptops at the office, at home or in the field.

ICT SUPPORT

An ICT Shopfront was established to provide an enhanced and more responsive level of support to Canberra-based staff. It has resulted in proven efficiencies across a number of core support requirements. The ICT Shopfront was initially implemented as a trial but has since been formalised and widely embraced.

REPORTING

Visual analytics allows significant amounts of data to be explored in order to uncover relationships that were not previously known. The capability was evaluated and will provide future opportunities for leveraging forecasting abilities and preliminary analysis of ‘what if’ scenarios.

OTHER ACHIEVEMENTS

ICT also undertook several major pieces of behind-the-scenes work throughout the year, including server virtualisation, Storage Area Network (SAN) rationalisation, and the System Centre Configuration Manager (SCCM) upgrade. This work consolidates and strengthens the AFP’s ICT infrastructure, storage and monitoring capabilities, positioning ICT to support the major programs of work that are underway (Data Centre Transition and Spectrum) and providing a solid platform to cater for future capacity and innovations.

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7 FINANCIAL STATEMENTS AFP ANNUAL REPORT 2014–15

122 7 Financial statements

123 AFP ANNUAL REPORT 2014–15

Australian Federal Police

Financial Statements for the Period Ended 30 June 2015

124 7 Financial statements

Table of Contents

Statement by the Commissioner and Chief Financial Officer 126

Departmental Financial Statements

Statement of Comprehensive Income 127 Statement of Financial Position 128 Statement of Changes in Equity 129 Statement of Cash Flows 130 Schedule of Commitments 131

Administered Financial Statements

Administered Schedule of Comprehensive Income 132 Administered Schedule of Assets and Liabilities 133 Administered Reconciliation Schedule 134 Administered Cash Flow Statement 135

Notes to the Financial Statements

Note 1: Summary of Significant Accounting Policies 136 Note 2: Events After the Reporting Period 140 Note 3: Net Cash Appropriation Arrangements 141 Note 4: Expenses 142 Note 5: Own-Source Income 144 Note 6: Financial Assets 145 Note 7: Non-Financial Assets 146 Note 8: Payables 150 Note 9: Provisions 151 Note 10: Cash Flow Reconciliation 152 Note 11: Senior Management Personnel Remuneration 153 Note 12: Administered - Financial Assets 154 Note 13: Appropriations 155 Note 14: Special Accounts 157 Note 15: Reporting of Outcomes 158 Note 16: Cost Recovery Summary 160 Note 17: Budgetary Reports and Explanations of Major Variances 161

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126 7 Financial statements

AUSTRALIAN FEDERAL POLICE STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 June 2015

2015x 2014x Notes $'000x $'000x EXPENSES Employee benefits 4A 869,949 893,487 Supplier 4B 435,940 409,822 Depreciation and amortisation 4C 98,722 88,086 Finance costs 540 522 Write-down and impairment of assets 4D 27,948 1,879 Grants 1,704 199 Other expenses 1,540 2,275 Total expenses 1,436,343 1,396,270

LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 5 266,883 294,724 Other revenue 2,279 2,372 Total own-source revenue 269,162 297,096

Gains Resources received free of charge 5,640 5,640 Other gains 587 1,265 Total gains 6,227 6,905 Total own-source income 275,389 304,001

Net cost of services (1,160,954) (1,092,269)

Revenue from Government 1,060,560 991,883 Deficit attributable to the Australian Government (100,394) (100,386)

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation surplus 137 51,671 Total other comprehensive income 137 51,671

Total comprehensive loss attributable to the Australian Government 3 (100,257) (48,715)

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

127 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE STATEMENT OF FINANCIAL POSITION as at 30 June 2015

2015x 2014x Notes $'000x $'000x ASSETS Financial Assets Cash and cash equivalents 6A 8,517 7,818 Trade and other receivables 6B 344,062 344,192 Other financial assets - accrued revenue 3,590 7,721 Total financial assets 356,169 359,731

Non-Financial Assets Land and buildings 7A,D 310,840 280,225 Property, plant and equipment 7B,D 128,022 141,595 Intangibles 7C,D 40,319 55,118 Inventories 7,321 7,416 Other non-financial assets - prepayments 20,825 20,234 Total non-financial assets 507,327 504,588

Total assets 863,496 864,319

LIABILITIES Payables Suppliers 8A 87,392 72,810 Other payables 8B 43,653 47,240 Total payables 131,045 120,050

Provisions Employee provisions 9 274,238 284,391 Other provisions - restoration obligations 15,452 14,139 Other provisions - staff relocations 4,111 1,652 Total provisions 293,801 300,182

Total liabilities 424,846 420,232 Net assets 438,650 444,087

EQUITY Contributed equity 864,870 770,050 Reserves 92,926 92,789 Accumulated deficit (519,146) (418,752) Total equity 438,650 444,087

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

128 7 Financial statements x x x 2014 $'000 99,208 31,347 51,671 28,355 (48,715) 464,447 464,447 444,087 (102,200) (100,386) Total equity x x 137 2015 $’000 83,430 35,207 94,820 (23,817) 444,087 444,087 438,650 (100,257) (100,394) x x x x - - - 2014 $'000 99,208 31,347 28,355 741,695 741,695 770,050 . Equity appropriations received by the (102,200) Contributed equity/capital x x - - - This amount does not form part of the 2015 $’000 83,430 35,207 94,820 (23,817) 770,050 770,050 864,870 n Stocktake Bill, as being available in future. ly reduced, by law, prior to 30 June 2015 they are ce of the repealed appropriations were $67.293m for x x x x in Note 13C. - - - - - , which included reappropriation of $39.930m previously 2014 $'000 51,671 41,118 41,118 92,789 51,671 surplus Appropriations Act (No. 2) 2007-08 x x - - - - - 137 137 Asset revaluation 2015 $’000 92,789 92,789 92,926 x x x - - - - - and $1.858m for 2014 $'000 Omnibus Repeal Day (Autumn 2014) Act 2014. (100,386) (100,386) (318,366) (318,366) (418,752) Appropriation Act (No. 4) 2013-14 x x - - - - - Retained earnings 2015 $’000 (418,752) (100,394) (100,394) (418,752) and $43.356m in Appropriations Act (No. 2) 2009-10 has been permanently quarantined under section 51 of the PGPA Act constituting a permanent loss control. These amounts was formally reduced by law through and $33.049m for Appropriation Act (No. 2) 2013-14 Appropriation Act (No.2) 2014-15 Appropriation Act (No.2) 2010-11 Returns of contributed equity Transactions with owners Distributions to owners Return of capital: Departmental capital budget Contributions by owners Equity injection - Appropriations Comprehensive income Other comprehensive income Deficit for the period Total comprehensive income The above statement should be read in conjunction with the accompanying notes. Returns of contributed equity in 2014-15: · $18.291m of Returns of contributed equity in 2013-14 were a result repealing appropriation bills, due to Government decisions. The balan Appropriations Act (No. 2) 2008-09 Adjusted opening balance for the year ended 30 June 2015 Total transactions with owners Closing balance attributable to the Australian Government (519,146) included in the balance Note 13C. · $5.526m of AFP consisted of $55.852m in repealed. The budget estimates, 2014-15 to 2016-17, reflect $51.242m of the appropriations repealed as part Appropriatio AUSTRALIAN FEDERAL POLICE STATEMENT OF CHANGES IN EQUITY Opening balance Balance carried forward from previous period appropriation receivable 'capital projects' at Note 6, and it is not included in the balance of unspent annual appropriations do not form part of the appropriation receivable 'existing programs' at Note 6, however as these amounts have been formal

129 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE CASH FLOW STATEMENT for the year ended 30 June 2015

2015x 2014x Notes $'000x $'000x

OPERATING ACTIVITIES Cash received Appropriations 1,318,859 1,291,446 Sales of goods and rendering of services 270,544 314,867 Net GST received 38,921 35,354 Total cash received 1,628,324 1,641,667

Cash used Employees 882,534 860,220 Suppliers 457,400 456,735 Receipts to Official Public Account (OPA) 280,525 316,855 Grant payments 1,704 2,632 Total cash used 1,622,163 1,636,442 Net cash from operating activities 10 6,161 5,225

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 271 338 Total cash received 271 338

Cash used Purchase of property, plant and equipment 42,247 29,084 Purchase of land and buildings 64,736 36,348 Purchase of intangibles 18,800 29,589 Total cash used 125,783 95,021 Net cash (used by) investing activities (125,512) (94,683)

FINANCING ACTIVITIES Cash received Contributed equity 87,367 51,609 Departmental capital budget funding 32,683 37,592 Total cash received 120,050 89,201 Net cash from financing activities 120,050 89,201

Net increase (decrease) in cash held 699 (257) Cash and cash equivalents at the beginning of the reporting period 7,818 8,075 Cash and cash equivalents at the end of the reporting period 6A 8,517 7,818

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

130 7 Financial statements

AUSTRALIAN FEDERAL POLICE SCHEDULE OF COMMITMENTS as at 30 June 2015

< 1 Year 1 Year to 5 Years > 5 years Total 2015 $'000x $'000x $'000x $'000 Commitments receivable 1 Operating lease income (1,122) (4,809) (5,695) (11,626) 2 Net GST recoverable on commitments (12,959) (21,071) (30,675) (64,705) Total commitments receivable (14,081) (25,880) (36,370) (76,331)

Commitments payable 3 Capital commitments 33,720 16 - 33,736 4 Operating leases 96,930 233,495 344,126 674,551 5 Other 82,559 61,674 - 144,233 Total commitments payable 213,209 295,185 344,126 852,520

Net commitments 199,128 269,305 307,756 776,189

2014 Commitments receivable Operating lease income1 (1,116) (4,666) (6,960) (12,742) Net GST recoverable on commitments2 (18,454) (24,518) (33,902) (76,874) Total commitments receivable (19,570) (29,184) (40,862) (89,616)

Commitments payable 3 Capital commitments 93,317 9,144 - 102,461 Operating lease commitments4 88,207 242,388 363,223 693,818 Other commitments5 84,264 123,036 9,699 216,999 Total commitments payable 265,788 374,568 372,922 1,013,278

Net commitments 246,218 345,384 332,060 923,662 Note: Commitments are GST inclusive where relevant.

1 Operating lease income - AFP leases office accommodation (as the lessor). Lease revenues increase annually in accordance with the relevant lease agreement which is either fixed rate or CPI. 2 Net GST recoverable on commitments - includes GST recoverable on commitments when, at balance date, the AFP intends to fully exercise these contracts. The value of Net GST recoverable on commitments with termination clauses: 2015: $6.015m (2014: $4.300m). 3 Consists of purchases of equipment, intangibles, leasehold fit out and buildings currently under construction or where a valid contract has been signed. Capital commitments include commitments which contain a termination clause as part of the contract when, at the balance date, the AFP intends to fully exercise these contracts. Value of commitments with termination clauses: 2015: $26.658m (2014: $14.796m). 4 Operating lease commitments - Property lease payments increase annually in accordance with the relevant lease agreement which is either fixed rate or CPI. The majority of AFP's lease commitments are in their initial term. AFP can renew agreements at their option. Includes non-cancellable leases for motor vehicles. 5 Other commitments - Contracts for the purchase of a variety of goods and services including logistics support for overseas deployments. Other commitments include commitments which contain termination clauses as part of the contract when, at the balance date, the AFP intends to fully exercise these contracts. Value of commitments containing termination clauses: 2015: $140.972m, (2014:$185.192m).

131 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Administered Schedule of Comprehensive Income for the year ended 30 June 2015

2015 2014 $’000 $’000

EXPENSES Consultants and contractors 602 647 General and office 1,300 3,820 Grants 184 - Impairment of trade and other receivables 215 168 Infrastructure for other jurisdictions 7,959 7,722 Operational expenses 604 287 Police equipment for other jurisdictions 5,898 4,855 Training 1,089 1,548 Travel 429 873 Total expenses 18,280 19,920

INCOME Non-taxation revenue Court fees, fines and penalties 477 525 Exhibits and seizures 1,273 467 Other - income 22 21 Total non-taxation revenue 1,772 1,013

Net cost of services 16,508 18,907

Total comprehensive deficit (16,508) (18,907)

All administered income and expenses relate to Outcome 1 (as described in Note 1.1).

Goods supplied by related parties $0.300m (2014: nil), external parties $4.837m (2014: $8.411m).

Services supplied by related parties $0.099m (2014: $0.186m), external parties $12.828m (2014:$11.155m).

132 7 Financial statements

AUSTRALIAN FEDERAL POLICE Administered Schedule of Assets and Liabilities as at 30 June 2015

2015 2014 Notes $’000 $’000 ASSETS Financial assets Cash and cash equivalents 1,816 41 Trade and other receivables 12 147 155 Total financial assets 1,963 196

Non-financial assets 1 Prepayments - 12 Total non-financial assets - 12

Total assets administered on behalf of Government 1,963 208

LIABILITIES Payables 2 Suppliers 3,713 1,610 Total payables 3,713 1,610

Total liabilities administered on behalf of Government 3,713 1,610

Net (liabilities) (1,750) (1,402)

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

All assets and liabilities related to Outcome 1 (as described in Note 1.1)

1 No indicators of impairment were found for other non-financial assets. All are expected to be recovered within 12 months. 2 $3.713m (2014: $1.610m) supplier payables were in connection with external parties, nil from the related parties (2014: nil). Settlement is usually made within 7 days.

133 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Administered Reconciliation Schedule for the year ended 30 June 2015

2015 2014 $’000 $’000

Opening assets less liabilities as at 1 July (1,402) (398)

Net (cost of)/contribution of services Income 1,772 1,013 Expenses - paid to entities other than related parties (18,280) (19,920)

Transfers (to)/from Australian Government Appropriation transfers from Official Public Account (OPA): Annual appropriations - payments to entities other than related parties 18,018 20,660 Transfers to OPA (1,858) (2,757) Closing assets less liabilities as at 30 June (1,750) (1,402)

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

134 7 Financial statements

AUSTRALIAN FEDERAL POLICE Administered Cash Flow Statement for the year ended 30 June 2015

2015 2014 $’000 $’000 OPERATING ACTIVITIES Cash received Court fees, fines and penalties 258 341 Exhibits and seizures 1,273 467 Other - income 22 20 Net GST received 132 143 Total cash received 1,685 971

Cash used Suppliers 16,070 19,363 Total cash used 16,070 19,363 Net cash flows (used by) operating activities (14,385) (18,392)

Net (decrease) in cash held (14,385) (18,392)

Cash and cash equivalents at the beginning of the reporting period 41 530 Cash from Official Public Account Appropriations 18,018 20,660 18,018 20,660

Cash to Official Public Account Cash received (1,560) (829) Appropriations (166) (1,785) GST (132) (143) (1,858) (2,757) Cash and cash equivalents at the end of the reporting period 1,816 41

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

No reconciliation of cash per the Administered Schedule of Assets and Liabilities is presented, as there are no material difference between the amounts for administered net cost of services (per Administered Schedule of Comprehensive Income and administered net cash from operating activities (per Administered Cash Flow Statement).

135 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 1: Summary of Significant Accounting

1.1 Objectives of the Australian Federal Police

The Australian Federal Police (AFP) is an Australian Government controlled entity. It is a not-for-profit entity. The objectives of the AFP are to enforce Commonwealth criminal law and protect Commonwealth and national interests from crime in Australia and overseas. In order to achieve these objectives, the AFP is structured to meet two outcomes: Outcome 1: Reduced criminal and security threats to Australia's collective economic and societal interests through co-operative policing services. Outcome 2: A safe and secure environment through policing activities on behalf of the Australian Capital Territory Government.

The continued existence of the AFP in its present form, and with its present programs, is dependent on Government policy and on continued funding by Parliament for the AFP’s administration and programs.

AFP activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the AFP in its own right. Administered activities involve the management or oversight by the AFP, on behalf of the Government, of items controlled or incurred by the Government.

The following two programs relate to Outcome 1:  Program 1.1 Federal Policing and National Security  Program 1.2 International Police Assistance

The following program relates to Outcome 2:  Program 2.1 ACT Community Policing

The AFP conducts administered activities on behalf of the Government under the following programs:  Program 1.1 Federal Policing and National Security  Program 1.2 International Police Assistance

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with: Finance Reporting Rule (FRR) for reporting periods ended on or after 1 July 2014; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the AFP 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 executor contracts are not recognised unless required by an accounting standard. Assets and liabilities that are unrecognised are reported in the Schedule of Commitments.

136 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

1.2 Basis of Preparation of the Financial Statements (continued)

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the AFP has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:  The fair value of land has been taken to be the market value of similar properties as determined by an independent valuer. For buildings and leasehold improvement the AFP has adopted depreciated replacement cost as its valuation basis as there is no active market for these items given they have been custom built for the AFP.  The fair value of other property, plant and equipment is measured at market selling price for assets unless a market does not exist. In these circumstances depreciated replacement cost is applied.  The liability for long service leave has been estimated using present value techniques. This takes into account expected salary growth through promotion, inflation, attrition and future discount rates.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

 AASB 1055 Budgetary Reporting applies from 1 July 2014. This standard requires additional disclosures and are presented at Note 17.

 AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities applies from 1 July 2016, however has been adopted earlier than the application date. The standard exempts not-for-profit entities from the disclosure of quantitative information about the significant unobservable inputs used in fair value measurements and the sensitivity of certain fair value measurements to changes in unobservable inputs. This standard has resulted in no longer disclosing fair value measurement in the form of a specific note disclosure.

 AASB 2015-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB101 applies from 1 January 2016, however has been adopted earlier than the application date. This standard has allowed the reduced disclosure in the Summary of Significant Accounting Policies (Note 1) and the removal of specific disclosure required by an Australian Accounting Standard where the information resulting from the disclosure is not material.

Future Australian Accounting Standard Requirements

 AASB 124 Related Parties applies from 1 July 2016. This standard is not expected to have any material impact upon the AFP statements, but will involve a new disclosure. Processes will be required to capture related party transactions and to obtain positive confirmation from all related parties that related party transactions have been declared.

 AASB 9 Financial Instruments applies from 1 January 2017. This standard is not expected to have a material impact upon the AFP statements, however it may result in changes to the AFP's methodology with respect to assessment of credit risk, associated provisions and losses.

 AASB 15 Revenue from Contracts with Customers applies from 1 January 2017. This standard is not expected to have any material impact upon the AFP statements, however it may result in changes to revenue recognition with respect to AFP own source income.

137 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

1.5 Transactions with the Government as Owner Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the AFP 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.

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

1.6 Taxation

The AFP 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  for receivables and payables.

1.7 Financial Instruments

The AFP's financial instruments are measured on a cost basis. Interest-earning financial assets and liabilities are measured using the effective interest rate method. The carrying amount of all financial instruments in the Statement of Financial Position approximates fair value. Financial instruments held by the AFP carry minimal credit, liquidity and market risk.

1.8 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes. Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Revenue collected by the AFP for use by the Government rather than the AFP is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of the Government. These transfers to and from the OPA are adjustments to the administered cash held by the AFP on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.

Administered Revenue

All administered revenues are revenues relating to ordinary activities performed by the AFP on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

The AFP recognises revenue from fees and fines when these become payable as determined by the courts and the relevant jurisdiction notifies the AFP.

Administered Receivables

Where receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through the Administered Schedule of Comprehensive Income.

138 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Administered Impairment Allowance The AFP recognises impairment relating to the probability of recovering fees and fines by reference to an actuarial assessment prepared for the AFP as at 30 June 2013.

Administered Commitments Assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Assets and liabilities that are unrecognised are reported in the Administered Schedule of Commitments. There are no administered commitments at 30 June 2015 (2014: Commitment payable of $1.592m).

1.9 Contingent Liabilities and Contingent Assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position 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.

The AFP has contingent liabilities in respect of legal claims. The amounts are immaterial at 30 June.

The AFP has no administered contingent liabilities or contingent assets at 30 June.

Unquantifiable Contingencies If a matter prosecuted by the AFP is defended successfully, the court may order that the AFP meet certain costs incurred by the defence.

The AFP has unquantifiable contingencies in relation to the decision to terminate a contract prior to 30 June. Negotiations are in progress and more detailed information has not been disclosed for this reason.

If a matter is being litigated by the AFP and assets are restrained under the Proceeds of Crime Act 1987 or the Proceeds of Crime Act 2002 , the AFP gives an undertaking against potential damages caused to the person(s) whose assets have been restrained. If the proceeds of crime action is unsuccessful, damages may be awarded against the AFP. In addition cost orders may be made against the AFP if a proceeds of crime action is unsuccessful. Costs awarded are met from the AFP or client organisations annual appropriations. Damages may be covered by ComCover where ComCover assesses that the liability is covered by the AFP’s insurance policy.

Although costs and damages may be awarded against the AFP from time to time, the AFP is unable to declare an estimate of liabilities not recognised nor undertakings due to the uncertainty of the outcome of matters, but more particularly, due to the sensitivity of the information related to matters still before the courts.

1.10 Accounting for the Australian Institute of Police Management

The purpose of the Australian Institute of Police Management (AIPM) is to provide executive development and education services to Australasian police forces. The AIPM is hosted by the AFP. It also reports on its performance to a Board of Control that is comprised of Police Commissioners from Australia and New Zealand.

The AIPM operates within the corporate governance framework of the AFP and the AFP's policies apply in all aspects of the AIPM's functions. All staff at the AIPM are staff members of the AFP and the operations of the AIPM are partly funded from AFP annual departmental appropriations. The AFP has effective control of the AIPM and therefore AIPM transactions are consolidated into the financial statements of the AFP.

AIPM transactions are contained within the special account, 'Services for Other Entities and Trust Moneys Account', in addition to being consolidated within the AFP financial statements. As a special account, AIPM funds can only be used for the purpose specified.

139 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

1.11 Accounting for The Asia/Pacific Group on Money Laundering

The purpose of the Asia/Pacific Group on Money Laundering (APG) is to facilitate the adoption, implementation and enforcement of internationally accepted anti-money laundering and anti-terrorist financing standards. The AFP hosted the APG for the year ended 30 June 2015 and reports on its performance to the members of the APG.

The APG operates within the corporate governance framework of the AFP and the AFP's policies apply in all aspects of the APG's functions. All staff members are staff members of the AFP. The AFP has effective control of the APG and therefore APG transactions are consolidated into the financial statements of the AFP.

APG transactions are contained within the special account, 'Services for Other Entities and Trust Moneys Account', in addition to being consolidated within the AFP financial statements. As a special account, APG funds can only be used for the purpose specified.

Note 2: Events After the Reporting Period

No significant events have occurred since the reporting date requiring disclosure in the financial statements.

140 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x

Note 3: Net Cash Appropriation Arrangements

Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations1 (4,779) 36,408 Plus: depreciation/amortisation expenses previously funded through 2 revenue appropriation (95,478) (85,123)

Total comprehensive income (loss) - as per the Statement of Comprehensive Income (100,257) (48,715)

1 From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are appropriated in the period when cash payment for capital expenditure is required.

2 The depreciation/amortisation expense per the Statement of Comprehensive Income is $98.722m (2014:$88.086m). The amount presented in Note 3 is reduced by $3.244m (2014: $2.963m) as this amount of depreciation/amortisation expense has been funded by Section 74 revenue, from the ACT Government for Outcome 2. The total deficit attributable to the Australian Government of $100.394m (2014: $100.386m), less depreciation/amortisation expenses previously funded through revenue appropriation, is a deficit of $4.916m (2014: $15.263m). The revaluation surplus of $0.137m (2014: $51.671m) is included in other comprehensive income but is not attributable to the retained earnings.

141 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x Note 4: Expenses

Note 4A: Employee Benefits Wages and salaries 621,609 611,325 Superannuation: Defined contribution plans 43,784 41,925 Defined benefit plans 66,189 84,601 Leave and other entitlements 121,583 119,210 Separation and redundancies 4,450 25,251 Other employee expenses 12,334 11,175 Total employee benefits 869,949 893,487

Note 4B: Suppliers Goods and services supplied or rendered Communications and IT 39,951 36,274 Consultant and contractor services 36,298 36,019 General and office 24,700 23,851 Travel 41,688 37,181 Staff and recruitment 47,043 41,838 Vehicle expenses 6,213 6,415 Postage and freight 3,357 3,610 Operational 62,629 55,613 Training 12,842 11,842 Building and accommodation 31,419 32,482 Total goods and services supplied or rendered 306,140 285,125

Goods supplied in connection with: External parties 41,599 33,013 Total goods supplied 41,599 33,013

Services rendered in connection with: Related parties 26,633 22,598 External parties 237,908 229,514 Total services rendered 264,541 252,112 Total goods and services supplied or rendered 306,140 285,125

Other supplier expenses Operating lease rentals in connection with external parties: Minimum lease payments 99,275 96,228 Contingent rentals 594 660 Other supplier expenses 77 297 Workers compensation expenses 29,854 27,512 Total other suppliers 129,800 124,697 Total suppliers 435,940 409,822

Operating Leases An operating lease is a lease where the lessor and lessee share the risks and benefits of ownership. Operating lease payments are expensed on the basis which is representative of the pattern of benefits derived from the leased assets. Lease incentives are recognised as other payables and amortised over the period of the lease on a straight line basis.

142 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x Note 4C: Depreciation and Amortisation Depreciation: Property, plant and equipment 53,691 40,151 Leasehold improvements 28,444 30,576 Buildings 4,844 3,233 Total depreciation 86,979 73,960

Amortisation: Intangibles 11,743 14,126 Total amortisation 11,743 14,126 Total depreciation and amortisation 98,722 88,086

Depreciation and Amortisation Expense Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to AFP using the straight-line method of depreciation.

Software is amortised on a straight-line basis over its estimated useful life.

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.

Useful Lives

Depreciation and amortisation rates that have been applied to each class of asset are based on the following useful lives: 2015 2014 Buildings on freehold land 6 to 25 years 6 to 25 years Buildings on leasehold land 6 to 25 years 6 to 25 years Leasehold improvements Lease term Lease term Other property, plant and equipment 3 to 10 years 3 to 10 years Intangibles 1 to 15 years 1 to 15 years

2015x 2014x $'000x $'000x Note 4D: Write-Down and Impairment of Assets Impairment from trade and other receivables 15,053 - Write-down and impairment of buildings 1,134 231 Write-down and impairment of property, plant and equipment 1,260 1,485 Write-down and impairment of intangibles 10,501 163 Total write-down and impairment of assets 27,948 1,879

143 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x Note 5: Own-Source Income

Own-Source Revenue

Note 5: Sale of Goods and Rendering of Services Sales of goods in connection with Related parties 202 95 External parties 830 590 Total sales of goods 1,032 685

Rendering of services in connection with Related parties 80,651 106,185 External parties 185,200 187,854 Total rendering of services 265,851 294,039 Total sale of goods and rendering of services 266,883 294,724

Own-source Revenue Recognition

Revenue from the sale of goods is recognised when:  the risks and rewards of ownership have been transferred to the buyer;  the AFP retains no managerial involvement or effective control over the goods;  the revenue and transaction costs incurred can be reliably measured; and  it is probable that the economic benefits associated with the transaction will flow to the AFP.

Revenue from the 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; and  the probable economic benefits associated with the transaction will flow to the AFP.

The stage of completion of contracts at the reporting date is determined by reference to the proportion of costs incurred to date to the estimated total costs of the transaction.

144 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x Note 6: Financial Assets Note 6A: Cash and Cash Equivalents Cash in special accounts 2,551 2,825 Cash on hand 128 122 Cash at bank 5,838 4,871 Total cash and cash equivalents 8,517 7,818 Note 6B: Trade and Other Receivables Good and services receivables in connection with: Related parties 6,481 4,264 External parties 16,922 3,299 Total goods and services receivables 23,403 7,563 Appropriations receivables: For existing programs 255,818 235,092 For Special Accounts 4,500 3,000 For capital projects 61,880 87,110 Total appropriations receivables 322,198 325,202 Other receivables: GST receivable from the Australian Taxation Office 5,229 4,198 Comcare 7,114 6,557 Other 1,265 1,163 Total other receivables 13,608 11,918 Total trade and other receivables (gross) 359,209 344,683 Less impairment allowance account: Goods and services (15,147) (491) Total impairment allowance account (15,147) (491) Total trade and other receivables (net) 344,062 344,192 Trade and other receivables (gross) aged as follows: Not overdue 357,947 342,010 Overdue by: 1 to 30 days 261 622 31 to 60 days 128 192 61 to 90 days 88 80 More than 90 days 785 1,779 Total receivables (gross) 359,209 344,683

2015x 2014 Reconciliation of the Impairment Allowance Account: $'000 $'000 Opening balance 491 506 Amounts written off (398) (28) Amounts recovered and reversed 1 13 Increase recognised in net cost of services 15,053 - Closing balance 15,147 491 Receivables for goods and services are recognised at the nominal amounts due, less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

All receivables are expected to be recovered in no more than 12 months. Credit terms for goods and services were 30 days (2014: 30 days).

145 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 7: Non-Financial Assets

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.

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2,000, which are expensed in the year of acquisition. Where assets cost less than $2,000 form part of a group of similar items which are significant in total, they are recognised as assets.

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the AFP where there exists an obligation to restore the property to its original condition. These costs are included in the value of the AFP's leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Work in Progress The AFP recognises assets under construction as work in progress when the final constructed asset will have costs that exceed the asset capitalisation threshold. The costs recognised as work in progress are only those that meet the definition for recognition as an asset under AASB 116. All assets classified as work in progress are held at cost and tested for impairment annually in June.

Revaluations Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depend upon the volatility of movements in market values for the relevant assets.

Fair values for each class of asset are determined via a formal revaluation that is undertaken once every three years. The AFP tests the valuation model as an internal management review at least once every 12 months to ensure there are no material differences. The last formal revaluation occurred at 30 June 2014.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation surplus except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they 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.

Impairment

All assets were assessed for impairment at 30 June 2015. 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. Where assets were no longer used by the AFP, these have been written down during the financial year. These are described in Note 7D as write-down and impairment recognised in the net cost of services.

Derecognition

An item of property, plant and equipment is derecognised upon disposal, or when no future economic benefits are expected from its use.

146 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 7: Non-Financial Assets 2015x 2014x $'000x $'000x Note 7A: Land and Buildings Land: Fair value 2,000 2,000 Total land 2,000 2,000

Buildings on freehold land: Fair value 20,117 19,868 Accumulated depreciation (1,134) (162) Total buildings on freehold land 18,983 19,706

Buildings on leasehold land: Work in progress 72,991 22,605 Fair value 30,326 31,568 Accumulated depreciation (3,935) (741) Total buildings on leasehold land 99,382 53,432

Leasehold improvements: Work in progress 5,966 14,033 Fair value 219,920 198,225 Accumulated depreciation (35,411) (7,171) Total leasehold improvements 190,475 205,087 Total land and buildings 310,840 280,225 No indicators of impairment were found for land and buildings as at 30 June 2015. No land and buildings are held for sale as at 30 June 2015.

Note 7B: Property, Plant and Equipment Other property, plant and equipment: Work in progress 16,699 12,219 Fair value 171,752 137,600 Accumulated depreciation (60,429) (8,224) Total property, plant and equipment 128,022 141,595

No indicators of impairment were found for property, plant and equipment as at 30 June 2015. No property, plant and equipment are held for sale as at 30 June 2015.

Note 7C: Intangibles

Computer software: Internally developed - in progress 11,323 25,981 Internally developed - in use 75,254 74,779 Purchased 48,702 41,936 Accumulated amortisation (94,960) (87,578) Total computer software 40,319 55,118 Total intangibles 40,319 55,118

The AFP’s intangibles comprise of internally developed and externally acquired software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

All software assets were assessed for indications of impairment as at 30 June 2015. There were indicators present at 30 June 2015, as a result the asset was impaired by $10.182m (2014:nil).

No intangibles are held for sale as at 30 June 2015.

147 AFP ANNUAL REPORT 2014–15 - - - - Total Total $’000 Intangibles - - - (14,476) - - (1) (10,501) software Computer Computer purchased - - - $’000 $’000 software internally Computer Computer developed - (14,476) - Other 53,691) (86,979) (6,570) (5,173) (11,743) (60,429) (100,909) (62,301) (32,659) (94,960) 128,022 438,862 24,276 16,043 40,319 16,043 24,276 438,862 128,022 141,595 421,820 42,403 12,715 55,118 12,715 42,403 421,820 141,595 40,319 16,043 24,276 438,862 128,022 149,819 438,118 100,760 41,936 142,696 188,451 539,771 86,577 48,702 135,279 property, property, plant and and plant equipmentPPE Total - - 216 216 - - - (68) (68) and and 785 42,981 107,766 14,731 5,706 20,437 785 42,981 buildings Total land land Total ------(1,134) (1,260) (2,394) (10,500) 000 $’000 $’000 $’000 255 252 (1,751) (1,499) (1,312) 2,796 1,484 $’ leasehold Buildings - Buildings improvements - - - - - land leasehold Buildings on Buildings - - - 51,208 13,577 - - 64, - (1,134) land freehold freehold Buildings on Buildings - - - 249 (252) - (1,134) (3,935) (35,411) (40,480) - - (162)- (741) (972) (7,171) - - (3,872) (8,074) (28,444) (8 ,224) (33,288) (16,298) ( (58,357) (29,221) (87,578) - Land $’000 $’000 $’000 2,000 18,983 99,382 190,475 310,840 2,000 18,983 99,382 190,475 2,000 19,706 53,432 205,087 280,225 53,432 2,000 19,706 205,087 310,840 99,382 2,000 18,983 190,475 2,000 19,868 54,173 212,258 288,299 54,173 2,000 19,868 212,258 2,000 20,117 103,317 225,886 351,320 2015 2015 e 30 J une 30 e e1July 2014 J une 30 e e as ofas e June2015represented30 by: Assetsnot previously recognised Sales Other Purchaseor internally developed ccumulateddepreciation, amortisation impairmentand Netvalu book AUSTRALIAN FEDERAL POLICE FEDERAL AUSTRALIAN statements financial the of part forming and to Notes foryearthe June30 ended 2015 Note7D: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment, and Intangibles 2015 A Accumulateddepreciation, amortisation impairmentand Additions: Grossbook value As at July1 2014 As Grossbook value Netvalu book Othermovements Reclassifications Netvalu book Disposals: Write-downimpairmentand recognised in costnet of services Netvalu book Depreciation/Amortisation

148 7 Financial statements - - - - Total $’000 Intangibles - - - - software Computer purchased y - - - - $’000 $’000 software internall Computer developed 71,672 10,713 5,113 15,826 , y 151) (73,960) (8,552) (5,574) (14,126) 007) (155,981) (50,195) (23,777) (73,972) Other 217,454 528,641 90,600 37,645 128,245 149,819 438,118 100,760 41,936 142,696 116,447 372,660 40,405 13,868 54,273 13,868 40,405 372,660 116,447 141,595 421,820 42,403 12,715 55,118 12,715 42,403 421,820 141,595 141,595 421,820 42,403 12,715 55,118 12,715 42,403 421,820 141,595 propert plantand equipment TotalPPE - - (124) (124) - 167 167 Totalland and buildingsand s -s - - - g (228) (231) (1,485) (1,716) (10) (153) (163) $’000 $’000 $’000 $’000 leasehold Buildin improvements - - - (3) son land g 24,960 17,130 42,090 29,582 leasehold Buildin ------153 1,609 1,762 (1,070) 692 (153) (539) (692) 43 1,718 11,924 14,200 38,229 52,429 son g (1,179) (2,054) (30,576) (33,809) (40, (2,055) (3,651) (49,268) (54,974) (101, Buildin freeholdland ------(162) (741) (7,171) (8,074) (8 ,224) (16,298) (58,357) (29,221) (87,578) 515 Land $’000 $’000 $’000 1,485 22,897 32,309 254,496 311,187 32,309 1,485 22,897 254,496 2,000 19,868 54,173 212,258 288,299 54,173 2,000 19,868 212,258 1,485 20,842 28,658 205,228 256,213 28,658 1,485 20,842 205,228 2,000 19,706 53,432 205,087 280,225 2,000 19,706 53,432 205,087 2,000 19,706 53,432 205,087 280,225 53,432 2,000 19,706 205,087 2014 2014 e1July 2013 e 30 J une 30 e e 30 J une 30 e e as ofas e June2014represented30 by: Assetsnot previously recognised Sales Purchaseor internally developed Disposals: As at July1 2013 As Grossbook value Accumulateddepreciation, amortisation impairmentand Netvalu book Additions: Revaluationsimpairmentand recognised in costnet of services Depreciation/Amortisation Write-downimpairmentand recognised in costnet of services AUSTRALIAN FEDERAL POLICE FEDERAL AUSTRALIAN statements financial the of part forming and to Notes foryearthe June30 ended 2015 2014 Intangibles and Equipment, and Plant of Property, Balances Closing and Opening of the Reconciliation (Continued): 7D Note Reclassifications Grossbook value Netvalu book Accumulateddepreciation, amortisation impairmentand Netvalu book Netvalu book

149 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x Note 8: Payables

Note 8A: Suppliers Trade creditors and accruals 67,981 55,296 Operating lease rentals 19,411 17,514 Total suppliers 87,392 72,810

Suppliers are expected to be settled in: No more than 12 months 70,042 57,107 More than 12 months 17,350 15,703 Total suppliers 87,392 72,810

Suppliers in connection with: Related parties 5,006 8,589 External parties 82,386 64,221 Total suppliers 87,392 72,810

Settlement is usually made within 7 days (2014: 30 days).

Note 8B: Other Payables Wages and salaries 30,465 26,052 Superannuation 3,903 3,945 Separations and redundancies 2,599 9,402 Unearned income 6,621 7,775 Other payables 65 66 Total other payables 43,653 47,240

Other payables are expected to be settled in: No more than 12 months 43,188 47,240 More than 12 months 465 - Total other payables 43,653 47,240

150 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x Note 9: Provisions

Note 9: Employee Provisions Leave 273,873 272,131 Redundancy 238 12,081 Other 127 179 Total employee provisions 274,238 284,391

Employee provisions are expected to be settled in: No more than 12 months 74,388 84,943 More than 12 months 199,850 199,448 Total employee provisions 274,238 284,391

Employee Leave Provision Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits ) and termination benefits due within twelve months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Long-term employee benefits, such as long service leave, are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

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 AFP is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the AFP’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, included in the leave provision, has been determined by reference to the work of an actuary as at 30 June 2013. The estimate of the present liability takes into account expected salary growth through promotion, inflation and attrition.

Redundancy provision The AFP recognises a provision for separation and redundancy payments when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

The AFP's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap), or a nominated superannuation fund. The CSS and PSS are defined benefit schemes for the Australian Government. All other superannuation funds are defined contribution schemes.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes. The AFP makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The AFP 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.

151 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x Note 10: Cash Flow Reconciliation

Reconciliation of cash and cash equivalents as per Statement of Financial Position to Cash Flow Statement

Cash and cash equivalents as per: Cash Flow Statement 8,517 7,818 Statement of Financial Position 6A 8,517 7,818 Discrepancy - -

Reconciliation of net cost of services to net cash from operating activities: Net cost of services (1,160,954) (1,092,269) Revenue from Government 1,060,560 991,883

Adjustment for non-cash items Depreciation / amortisation 98,722 88,086 Net write down of non financial assets 12,895 1,879 Gain on disposal of assets (203) (214) Asset recognition (216) (167) Movement in capital accruals recognised in payables (1,282) 8,421 Movement in restoration provision revaluation recognised in equity 137 (758) Movement in restoration provision recognised in income statement (1,123) (899)

Movements in assets / liabilities Assets (Increase) / decrease in net receivables (10,624) 359 (Increase) / decrease in inventories 95 (222) (Increase) / decrease in prepayments (591) (1,285) (Increase) / decrease in accrued revenue 4,131 (963) Liabilities (Decrease) / increase in employee provisions (10,153) 23,039 (Decrease) / increase in supplier payables 14,582 (24,736) (Decrease) / increase in other payables (3,587) 11,020 (Decrease) / increase in other provisions 3,772 2,051 Net cash from operating activities 6,161 5,225

152 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 11: Senior Management Personnel Remuneration1

2015x 2014x $x $x Short-term employee benefits: Salary 15,022,377 13,675,216 Performance bonus 1,245,860 1,027,718 Transfer costs 356,978 434,884 Fringe Benefits Tax 287,332 297,460 Motor vehicle allowances 470,560 1,817,423 2 Other allowances 945,540 1,602,096 Total short-term employee benefits 18,328,647 18,854,797

Post-employment benefits Superannuation 2,925,458 3,746,570 Total post-employment benefits 2,925,458 3,746,570

Other long-term benefits Annual leave accrued 1,860,142 1,495,003 Long-service leave 1,832,943 626,153 Total other long-term benefits 3,693,085 2,121,156

Termination benefits Termination benefits 328,298 166,462 Total termination benefits 328,298 166,462

Total senior management personnel remuneration expenses 25,275,488 24,888,985

The total number of senior management personnel that are included in the above table are 85 individuals (2014: 85 individuals).

1 Senior management means the AFP Commissioner, Senior Executive Service (SES) Officers and their equivalents who were employed in these positions at any time during the financial year. It includes acting arrangements for members performing higher duties for more than twelve months.

2 Other allowances include parking, executive allowances, health and fitness and overseas allowances.

153 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $’000x $’000x Note 12: Administered - Financial Assets

Note 12: Trade and Other Receivables Other receivables GST receivable from Australian Taxation Office 34 46 Court fees, fines and penalties 1,438 1,219 Total other receivables 1,472 1,265 Total trade and other receivables (gross) 1,472 1,265

Less: impairment allowance account: Court fees, fines and penalties (1,325) (1,110) Total impairment allowance account (1,325) (1,110) Total trade and other receivables (net) 147 155

Receivables are aged as follows: Not overdue 34 52 Overdue by: 1 to 30 days 1 1 31 to 60 days 11 31 61 to 90 days 9 12 More than 90 days 1,417 1,169 Total receivables (gross) 1,472 1,265

The impairment allowance account is aged as follows: Not overdue (17) (1) Overdue by: 1 to 30 days (3) (1) 31 to 60 days (1) (14) 61 to 90 days (10) (10) More than 90 days (1,294) (1,084) Total impairment allowance account (1,325) (1,110)

All receivables are expected to be recovered in no more than 12 months. Credit terms for goods and services were within 30 days (2014: 30 days).

Reconciliation of the Impairment Allowance Account: 2015 2014 $'000 $'000 Opening balance 1,110 942 Increase recognised in net cost of services 215 168 Closing balance 1,325 1,110

154 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 13A: Annual Appropriations ('Recoverable GST exclusive')

2015x 2014x Departmental Ordinary Annual Services $'000x $'000x

Annual Appropriation1 1,095,877 1,026,257 PGPA - Section 74 (2014: FMA Act Section 31) 280,525 316,855 Total Appropriation 1,376,402 1,343,112 Appropriation applied (current and prior years) (1,352,070) (1,330,146) Variance2,3 24,332 12,966 PGPA - Section 51 Determination4 (1,590) -

1 Annual Appropriation for 2014-15, consisted of Appropriation Act No.1 2014-15 ($1,054.174m) and Appropriation Act No.3 2014-15 ($41.703m). The amount appropriated through Appropriation Act No.3 2014-15 was net of two formal reductions of $0.780m, the appropriation revenue associated with these reductions had been reduced in prior years. 2 The variance in the 2014-15 financial year represents undrawn appropriation required for the payment of creditors and accruals at 30 June as well as $14.480m appropriation received in 2014-15 for redundancy expenses that were expensed in 2013-14.. 3 The variance in the 2013-14 financial year represents undrawn appropriation required for the payment of liabilities at 30 June. 4 $1.590m has been permanently quarantined against 2015 departmental ordinary annual services appropriations. The amount was quarantined under section 51 of the PGPA Act constituting a permanent loss of control. These amounts do not form part of the appropriation receivable 'existing programs' at Note 6, however as these amounts have not been formally reduced, by law, prior to 30 June 2015 they are included in the balance in Note 13C.

2015x 2014x Departmental Other Services - Equity $'000x $'000x

Annual Appropriation 83,430 99,208 Total Appropriation 83,430 99,208 Appropriation applied (current and prior years) (87,365) (51,608) Variance5,6 (3,935) 47,600 PGPA - Section 51 Determination7 (18,291) -

5 The variance in the 2014-15 financial year was primarily due to capital purchases funded by prior year equity appropriations. 6 The variance in the 2013-14 financial year was due to funding appropriated in 2013-14 not being applied due to changes in project phasing. 7 $18.291m has been permanently quarantined against 2015 departmental other services - equity appropriations. These amounts do not form part of the appropriation receivable 'capital projects' at Note 6, however as these amounts have not been formally reduced, by law, prior to 30 June 2015 they are included in the balance in Note 13C.

2015x 2014x Administered Ordinary Annual Services $'000x $'000x

Annual Appropriation 18,275 25,227 Appropriation reduced (202) (5,472) Total Appropriation 18,073 19,755 Appropriation applied (current and prior years) (15,950) (19,213) Variance8,9 2,123 542 8 The variance in 2014-15 financial year represents undrawn appropriation required for the payment of administered liabilities at 30 June. 9 The variance in 2013-14 financial year represents undrawn appropriation required for the payment of administered liabilities at 30 June.

155 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 13B: Departmental Capital Budgets ('Recoverable GST exclusive') 2015x 2014x Departmental Capital Budget Appropriation $'000x $'000x Annual Departmental Capital Budget 1 35,207 31,347 Payments for non-financial assets 2 (32,683) (37,592) Variance3 2,524 (6,245) 1 Departmental Capital Budgets are appropriated through Appropriation Acts (No. 1,3,5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see 13A: Annual appropriations. 2 Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and the capital repayment component of finance leases. 3 Variance relates to timing differences between funding received and asset purchases. Note 13C: Unspent Annual Appropriations ('Recoverable GST exclusive') 2015x 2014x Authority $'000x $'000x DEPARTMENTAL Appropriation Act (No. 2) 2010-2011 1 - 5,526 Appropriation Act (No. 2) 2012-2013 - 1,629 Appropriation Act (No. 1) 2013-2014 2 1,345 206,473 Appropriation Act (No. 1) - Capital Budget (DCB) - Non Operating - 2013-2014 - 13,538 Appropriation Act (No. 2) 2013-2014 - 39,957 Appropriation Act (No. 3) 2013-2014 - 29,399 Appropriation Act (No. 4) 2013-2014 3,510 26,459 Appropriation Act (No. 1) 2013-2014 - Cash on hand / at bank - 4,983 Appropriation Act (No. 1) - Capital Budget (DCB) - Non Operating - 2014-2015 16,062 - Appropriation Act (No. 1) 2014-2015 3 215,004 - Appropriation Act (No. 2) 2014-2015 4 60,599 - Appropriation Act (No. 3) 2014-2015 41,703 - Appropriation Act (No. 1) 2014-2015 - Cash on hand / at bank 5,956 - Total Departmental 344,179 327,964 ADMINISTERED Appropriation Act (No. 1) 2013-2014 - 7,030 Appropriation Act (No. 1) 2013-2014 - Cash on hand / at bank - 41 Appropriation Act (No. 1) 2014-2015 1,380 - Appropriation Act (No. 3) 2014-2015 715 - Appropriation Act (No. 1) 2014-2015 - Cash on hand / at bank 1,816 - Total Administered 3,911 7,071 1 $5.526m of Appropriation Act (No.2) 2010-11 was formally reduced by law through Omnibus Repeal Day (Autumn 2014) Act 2014. This amount does not form part of the appropriation receivable 'capital projects' at Note 6. 2,3 Appropriation Act (No.1) 2013-14 includes $1.345m and Appropriation Act (No.1) 2014-15 includes $1.590m that were permanently quarantined under section 51 of the PGPA Act constituting a permanent loss of control. These amounts do not form part of the appropriation receivable 'existing programs' at Note 6, however as these amounts have not been formally reduced, by law, prior to 30 June 2015 they are included in the balance in Note 13C. 4 Appropriation Act (No.2) 2014-15 includes $18.291m permanently quarantined under section 51 of the PGPA Act that constitutes a permanent loss of control. These amounts do not form part of the appropriation receivable 'capital projects' at Note 6, however as these amounts have not been formally reduced, by law, prior to 30 June 2015 they are included in the balance in Note 13C. At 30 June 2015 the AFP recognised revenue and a receivable 'existing programs' at Note 6 of $0.701m for a No Win/No Loss arrangement to cover additional FBT expense relating to living away from home allowance. This met the formal recognition criteria under section 51 of the PGPA Act, however as the appropriation had not been formally appropriated by law, it is not represented in Note 13C (2014: payable of $0.353m).

156 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 14: Special Accounts

Note 14A: Special Accounts (Recoverable GST exclusive)

Services for Other Entities and Trust Moneys Account (SOETM) (Departmental)1

2015x 2014x $ '000x $ '000x Balance brought forward from previous period 45,909 34,628 Increases: Appropriation credited to special account 1,522 1,526 Other receipts 67,800 61,474 Total increases 69,322 63,000 Available for payments 115,231 97,628 Decreases: Payments made to suppliers (69,142) (51,719) Total decreases (69,142) (51,719) Balance carried to next period and represented by: 46,089 45,909 Cash - held by the agency 2,561 2,835 Cash - held by the agency on trust 39,028 40,074 Cash - held in the OPA 4,500 3,000 Total balance carried to the next period 46,089 45,909

1 Appropriation: Public Governance, Performance and Accountability Act 2013 section 80.

Establishing Instrument: Financial Management and Accountability (Establishment of Special Account for Australian Federal Police) Determination 2011/03.

Date Established: 17 May 2011.

Purpose: For the receipt of monies temporarily held in trust or otherwise for the benefit of a person other than the Commonwealth, for the payment of monies in connection with services performed on behalf of other governments and non-agency bodies and for expenditure relating to providing secretariat support in relation to the detection and prevention of money laundering in the Asia Pacific region and carrying out activities that are incidental to this purpose.

157 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 15: Reporting of Outcomes

The AFP uses an Activity Based Costing approach to determine the attribution of its shared items. The basis of attribution in the table below is consistent with the basis used for the development of the budget and where possible actuals are used.

Note 15A: Net Cost of Outcome Delivery

Outcome 1 Outcome 2 Total

2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000 Departmental Expenses (1,276,306) (1,235,277) (160,037) (160,993) (1,436,343) (1,396,270) Own-sourced income 115,287 144,506 160,102 159,495 275,389 304,001

Administered Expenses (18,280) (19,920) - - (18,280) (19,920) Income 1,772 1,013 - - 1,772 1,013

Net contribution/(cost) of (1,177,527) (1,109,678) 65 (1,498) (1,177,462) (1,111,176) outcome delivery

Outcomes 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.

158 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 15B: Major Classes of Departmental Expenses, Income, Assets and Liabilities by Outcomes

Outcome 1 Outcome 2 Total 2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000 Expenses: Employee benefits 764,691 787,488 105,258 105,999 869,949 893,487 Supplier 385,644 358,233 50,296 51,583 435,940 409,816 Depreciation and amortisation 95,478 85,123 3,244 2,963 98,722 88,086 Grants 1,085 199 619 - 1,704 199 Other 29,408 4,234 620 448 30,028 4,682 Total 1,276,306 1,235,277 160,037 160,993 1,436,343 1,396,270

Own-source income: Revenue from Government 1,060,560 991,883 - - 1,060,560 991,883 Sales of goods and services 112,091 140,539 154,792 154,185 266,883 294,724 Other 3,196 3,967 5,310 5,310 8,506 9,277 Total 1,175,847 1,136,389 160,102 159,495 1,335,949 1,295,884

Assets Cash and cash equivalents 8,503 7,809 14 9 8,517 7,818 Trade and other receivables 319,508 321,115 24,554 23,077 344,062 344,192 Other financial assets 3,529 7,667 61 54 3,590 7,721 Land and buildings 307,244 275,542 3,596 4,683 310,840 280,225 Property, plant and equipment 118,932 130,745 9,090 10,850 128,022 141,595 Intangibles 39,021 54,918 1,298 200 40,319 55,118 Inventories 6,702 6,490 619 926 7,321 7,416 Other non-financial assets 20,825 20,234 - - 20,825 20,234 Total 824,264 824,520 39,232 39,799 863,496 864,319

Liabilities Suppliers 86,492 70,838 900 1,972 87,392 72,810 Other payables 39,843 43,708 3,810 3,532 43,653 47,240 Employee provisions 243,296 252,200 30,942 32,191 274,238 284,391 Other provisions 18,828 15,035 735 756 19,563 15,791 Total 388,459 381,781 36,387 38,451 424,846 420,232

Outcomes 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that were eliminated in calculating the actual Outcome.

159 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

2015x 2014x $'000x $'000x Note 16: Cost Recovery Summary

Expenses Departmental 18,457 18,371 Total expenses 18,457 18,371

Revenue Departmental 22,755 20,588 Total revenue 22,755 20,588

Receivables (net) Not overdue 531 526 Overdue by 0 to 30 days 47 188 31 to 60 days 11 51 61 to 90 days 4 4 More than 90 days 8 53 Total receivables 601 822

There were no indicators of impairment at 30 June (2014: nil)

Cost Recovered Activities The AFP cost recovery activities are outlined within Schedule 2 of the Australian Federal Police Regulations 1979 . These include National Police Checks and other policing services performed.

160 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 17: Budgetary Reports and Explanations of Major Variances The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 actual outcome as presented in accordance with Australian Accounting Standards for the AFP. A comparison table has not been provided for the Statement of Changes in Equity as major changes between the 2014-15 PBS to the 2014-15 actual outcome are explained by movements in the Statement of Comprehensive Income and the Statement of Financial Position.

The Budget is not audited. Explanations of major variances are provided at Note 17B.

Note 17A: Departmental Budgetary Reports

Statement of Comprehensive Income for the year ended 30 June 2015 Original1 2 3 Actual Budget estimate Ref Variance 2015x 2015x 2015x $'000x $'000x $'000x EXPENSES Employee benefits 869,949 875,243 (5,294) Suppliers 435,940 437,680 (1,740) Grants 1,704 - 1,704 Depreciation and amortisation 98,722 89,758 (i) 8,964 Finance costs 540 433 107 Write-down and impairment of assets 27,948 - (ii) 27,948 Other expenses 1,540 - 1,540 Total expenses 1,436,343 1,403,114 33,229

OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 266,883 288,334 (iii) (21,451) Other revenue 2,279 450 1,829 Total own-source revenue 269,162 288,784 (19,622)

Gains Other gains 6,227 5,605 622 Total gains 6,227 5,605 622 Total own-source income 275,389 294,389 (19,000)

Net cost of services 1,160,954 1,108,725 52,229

Revenue from Government 1,060,560 1,018,967 (iv) 41,593

Deficit attributable to the Australian Government (100,394) (89,758) (10,636)

OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus 137 - 137 Total other comprehensive income 137 - 137

Total comprehensive loss attributable to the Australian Government (100,257) (89,758) (10,499)

1 The original budgeted financial statement is the 2014-15 Portfolio Budget Statement (PBS). 2 Reference refers to the explanation of major variance at Note 17B. 3 The variance between the actual and original budgeted amounts for 2015.

161 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 17A: Departmental Budgetary Reports (continued)

Statement of Financial Position for the year ended 30 June 2015 Original1 2 3 Actualx Budget estimate Ref Variance 2015x 2015x 2015x $'000x $'000x $'000x ASSETS Financial Assets Cash and cash equivalents 8,517 8,075 442 Trade and other receivables 344,062 318,562 (iv) 25,500 Other financial assets 3,590 6,758 (3,168) Total financial assets 356,169 333,395 22,774

Non-Financial Assets Land and buildings 310,840 330,845 (v) (20,005) Property, plant and equipment 128,022 112,858 (vi) 15,164 Intangibles 40,319 61,617 (vii) (21,298) Inventories 7,321 7,194 127 Other non-financial assets 20,825 18,949 1,876 Total non-financial assets 507,327 531,463 (24,136)

Total assets 863,496 864,858 (1,362)

LIABILITIES Payables Suppliers 87,392 97,362 (viii) (9,970) Other payables 43,653 41,057 2,596 Total payables 131,045 138,419 (7,374)

Provisions Employee provisions 274,238 274,746 (508) Other provisions 19,563 14,586 4,977 Total provisions 293,801 289,332 4,469

Total liabilities 424,846 427,751 (2,905) Net assets 438,650 437,107 1,543

EQUITY Contributed equity 864,870 888,686 (ix) (23,816) Reserves 92,926 41,118 (x) 51,808 Accumulated deficit (519,146) (492,697) (26,449) Total equity 438,650 437,107 1,543

1 The original budgeted financial statement is the 2014-15 Portfolio Budget Statement (PBS). Budgeted amounts have been restated for Other Payables (increased by $33.802m) and Employee Provisions (decreased by $33.802m) to align the presentation and classification of the corresponding financial statements. 2 Reference refers to the explanation of major variance at Note 17B. 3 The variance between the actual and original budgeted amounts for 2015.

162 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statements for the year ended 30 June 2015

Note 17A: Departmental Budgetary Reports (continued)

Cash Flow Statement for the year ended 30 June 2015 Original1 2 3 Actualx Budget estimate Ref Variance 2015x 2015x 2015x $'000x $'000x $'000x OPERATING ACTIVITIES Cash received Appropriations 1,318,859 1,306,537 (iv) 12,322 Sales of goods and rendering of services 270,544 288,336 (iii) (17,792) Net GST received 38,921 30,214 8,707 Other - 450 (450) Total cash received 1,628,324 1,625,537 2,787

Cash used Employees 882,534 869,293 13,241 Suppliers 457,400 467,908 (10,508) Receipts transferred to OPA 280,525 288,336 (7,811) Grant payments 1,704 - 1,704 Total cash used 1,622,163 1,625,537 (3,374) Net cash from operating activities 6,161 - 6,161

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 271 - 271 Total cash received 271 - 271

Cash used Purchase of property, plant and equipment 42,247 50,678 (vi) (8,431) Purchase of land and buildings 64,736 80,448 (v) (15,712) Purchase of intangibles 18,800 22,289 (3,489) Total cash used 125,783 153,415 (27,632) Net cash (used by) investing activities (125,512) (153,415) 27,903

FINANCING ACTIVITIES Cash received Contributed equity 87,367 118,208 (ix) (30,841) Departmental capital budget funding 32,683 35,207 (2,524) Total cash received 120,050 153,415 (33,365) Net cash from financing activities 120,050 153,415 (33,365)

Net increase in cash held 699 - 699 Cash and cash equivalents at the beginning of the reporting period 7,818 8,075 (257) Cash and cash equivalents at the end of the reporting period 8,517 8,075 442

1 The original budgeted financial statement is the 2014-15 Portfolio Budget Statement (PBS). 2 Reference refers to the explanation of major variance at Note 17B. 3 The variance between the actual and original budgeted amounts for 2015.

163 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statement for the year ended 30 June 2015

Note 17B: Departmental Major Budget Variances for 2015

Ref. Explanations of major variances Affected line items (and statement) (i) Depreciation and amortisation expense Depreciation and amortisation expense for 2014-15 was $98.722m, Depreciation and amortisation expense $8.964m higher than the original budget of $89.758m. The original (Schedule of Comprehensive Income) budget was based on the value of AFP assets prior to the upward revaluation of property, plant and equipment recorded in June 2014.

(ii) Write down and impairment of assets expense Write down and impairment of assets expense for 2014-15 was Write down and impairment expense $27.948m, higher than original budget of zero. The unbudgeted (Schedule of Comprehensive Income) impairment includes a portion of the AFP's major operating systems project.

(iii) Sale of goods and rendering of services own-source revenue Sale of goods and rendering of services own-source revenue for 2014- Sale of goods and services own-source 15 was $266.883m, $21.451m lower than the original budget of revenue (Schedule of Comprehensive $288.334m. The lower revenue is due to: Income) - a lower demand for cost recovered services from the Department of Sale of goods and rendering of services Immigration and Border Protection for the transportation of illegal (Cashflow Statement) maritime arrivals to offshore detention centres ($11.200m); and Section 74 retained revenue receipts - a reclassification of revenue from sale of goods and rendering transferred to the Official Public Account of services to revenue from government through direct (Cashflow Statement) appropriation for service delivery at Australian Parliament House ($8.800m) and WA National Anti-Gangs Squads ($3.300m).

(iv) Revenue from government/ Trade and Other Receivables Revenue from government for 2014-15 was $1,059.860m, $40.892m Revenue from government (Schedule of higher than the original budget of $1,018.967m. The difference is due to Comprehensive Income) the additional appropriation for funding new measures, including Appropriations (Cash Flow Statement) Additional counter-terrorism funding (Foreign Fighters), Australian Trade and other receivables (Statement Parliament House Security Upgrades, Enhanced Protective Security of Financial Position) Arrangements as well as Funding for pre-existing measures affecting the public sector.

164 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statement for the year ended 30 June 2015

Note 17B: Departmental Major Budget Variances for 2015 (continued)

Ref. Explanations of major variances Affected line items (and statement) (v) Land and Buildings Land and Buildings non-financial assets were $310.840m at 30 June Land and Buildings 2015, $20.005m lower than the original budget of $330.845m. The (Statement of Financial Position) difference is primarily due to delays in schedules for major building Purchase of land and buildings projects. (Cashflow Statement)

(vi) Property Plant and Equipment Property, Plant and Equipment non-financial assets were $128.022m at Property, Plant and Equipment 30 June 2015, $15.164m higher than the original budget of $112.858m. (Statement of Financial Position) The original budget being based on the value of AFP assets prior to the Purchase of property, plant and upward revaluation of property, plant and equipment recorded in June equipment 2014. (Cashflow Statement)

(vii) Intangibles Intangible non-financial assets were $40.319m at 30 June 2015, Intangibles $21.298m lower than the original budget of $61.614m. The difference is (Statement of Financial Position) primarily due to the disposal of elements major operating systems project.

(viii) Supplier Payables Supplier payables were $87.392m at 30 June 2015, $9.970m lower than Supplier payables (Statement of the original budget of $97.362m. The original budget was based on Financial Position) higher levels from 2013 which were not repeated in 2014 or 2015.

(ix) Contributed Equity Contributed equity was $864.870m at 30 June 2015, $23.816m lower Contributed Equity (Statement of than the original budget of $888.686m. Primarily due to funds returned Financial Position) to government through delivery of major sporting events at a lower cost. (Cashflow Statement)

(x) Reserves Reserves were $92.926m at 30 June 2015, $51.808m higher than the Reserves (Statement of Financial original budget of $41.118m. The original budget did not include the Position) impact of the upward revaluation of property, plant and equipment recorded in June 2014.

165 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statement for the year ended 30 June 2015

Note 17C: Administered Budgetary Reports

Administered Schedule of Comprehensive Income for the year ended 30 June 2015 Original1 2 3 Actualx Budget Estimate Ref Variance 2015 2015 2015i $’000 $’000 $’000

EXPENSES Suppliers 18,280 17,560 720 Total expenses 18,280 17,560 720

INCOME Non-taxation revenue Fees and fines 477 - 477 Other revenue 1,295 39,343 (i) (38,048) Total own source income administered on behalf of Government 1,772 39,343 (37,571)

Net cost of services 16,508 (21,783) 38,291 Total comprehensive income (loss) (16,508) 21,783 (38,291)

1 The original budgeted financial statement is the 2014-15 Portfolio Budget Statement (PBS). 2 The variance between the actual and original budgeted amounts for 2015. Explanations of major variances are provided at Note 17C. 3 The variance between the actual and original budgeted amounts for 2015.

Ref. Explanations of major variances Affected line items (and statement)

(i) Other revenue Other revenue for 2014-15 was $1.295m, $38.048m lower than the Other non-taxation revenue original budget of $39.343m. The lower revenue relates to the (Administered Schedule of "partial cost recovery of airport policing" budget measure Comprehensive Income) announced in the 2012-13 budget for which legislation has not been Other revenue/ Cash received enacted. (Administered Cash Flow Statement)

166 7 Financial statements

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statement for the year ended 30 June 2015

Note 17C: Administered Budgetary Reports (continued)

Administered Schedule of Assets and Liabilities for the year ended 30 June 2015 Original1 2 Actualx Budget Estimate Variance 2015 2015 2015 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 1,816 530 1,286 Trade and other receivables 147 132 15 Total financial assets 1,963 662 1,301

Total assets administered on behalf of Government 1,963 662 1,301

LIABILITIES Payables Suppliers 3,713 1,060 2,653 Total payables 3,713 1,060 2,653

Total liabilities administered on behalf of Government 3,713 1,060 2,653

Net (liabilities) (1,750) (398) (1,352)

1 The original budgeted financial statement is the 2014-15 Portfolio Budget Statement (PBS). 2 The variance between the actual and original budgeted amounts for 2015.

167 AFP ANNUAL REPORT 2014–15

AUSTRALIAN FEDERAL POLICE Notes to and forming part of the financial statement for the year ended 30 June 2015

Note 17C: Administered Budgetary Reports (continued)

Administered Cash Flow Statement for the year ended 30 June 2015 Original 2 3 Actualx Budget Estimate1 Ref Variance 2015x 2015 2015 $’000x $’000 $’000

OPERATING ACTIVITIES Cash received

Court fees, fines and penalties 258 - 258 Exhibits and seizures 1,273 - 1,273 Net GST received 132 441 (309) Other revenue 22 39,343 (i) (39,321) Total cash received 1,685 39,784 (38,099)

Cash used Suppliers 16,070 18,001 (1,931) Suppliers 16,070 18,001 (1,931) Net cash flows (used by) operating activities (14,385) 21,783 (36,168)

Net (decrease) in cash held (14,385) 21,783 (36,168)

Cash and cash equivalents at the beginning of the 41 530 (489) reporting period Cash from Official Public Account Appropriations 18,018 17,560 458 18,018 17,560 458

Cash to Official Public Account Cash received (1,560) (39,343) (i) 37,783 Approrpriations (166) - (166) GST (132) - (132) (1,858) (39,343) 37,485 Cash and cash equivalents at the end of the reporting period 1,816 530 1,286

1 The original budgeted financial statement is the 2014-15 Portfolio Budget Statement (PBS). 2 The variance between the actual and original budgeted amounts for 2015. Explanations of major variances are provided at Note 17C. 3 The variance between the actual and original budgeted amounts for 2015.

168

8 APPENDICES AFP ANNUAL REPORT 2014–15

APPENDIX A: CORPORATE INTEGRITY

During 2014–15 the AFP Professional Standards Unit received 477 complaints, resulting in 934 alleged conduct breaches being recorded. The complaint data in this appendix were extracted from the AFP Complaint Recording and Management System (CRAMS), which is a live system that is updated on a daily basis. The data set was correct as at 2 July 2015.

TABLE A1 ALLEGED CONDUCT BREACHES1 RECORDED BY CATEGORY 2011–12 TO 2014–15

2011–12 2012–13 2013–14 2014–15

All AFP

Category 1 183 150 139 113

Category 2 485 520 425 450

Category 3 373 398 263 316

Category 4 29 31 46 55

Total 1,070 1,099 873 934

Outcome 1

Category 1 71 50 63 42

Category 2 333 356 280 295

Category 3 249 244 175 236

Category 4 25 30 35 40

Total Outcome 1 678 680 553 613

Outcome 2

Category 1 112 100 76 71

Category 2 152 164 145 155

Category 3 124 154 88 80

Category 4 4 1 11 15

Total Outcome 2 392 419 320 321

1. Conduct breaches are individual issues identified within a complaint. Multiple breaches may be applied when two or more complaint issues are identified from information supplied by a complainant or when two or more members are subject to a complaint.

Note: Part V of the Australian Federal Police Act 1979 (Cth) defines the categories of conduct for AFP appointees. Category 1 is the least serious category and relates mainly to customer service breaches. Category 2 is minor misconduct and category 3 is serious misconduct. Category 4 complaints relate to corruption as defined by the Law Enforcement Integrity Act 2006 (Cth). These matters are deemed to be either significant or non-significant corruption and are referred to the Australian Commission for Law Enforcement Integrity.

172 8 APPENDICES

TABLE A2 ALLEGED CONDUCT BREACHES RECORDED BY SOURCE 2014–15

Number of Alleged Source Conduct Breaches Percentage

Anonymous member of the public 20 2

Member of the public 348 37

Another AFP member 529 57

Self-reported 37 4

Total 934 100

173 AFP ANNUAL REPORT 2014–15

TABLE A3 FINALISED CONDUCT BREACHES BY CATEGORY 2014–15

Not Discretion not Total Established Established Withdrawn to Proceed1 Finalised

All AFP

Category 1 9 68 1 21 99

Category 2 102 218 17 72 409

Category 3 55 102 4 105 266

Category 4 0 5 2 26 33

166 393 24 224 807 Total AFP 21% 49% 3% 28% 100%

Outcome 1

Category 1 3 33 1 3 40

Category 2 88 145 0 44 277

Category 3 48 96 1 89 234

Category 4 0 5 2 26 33

139 279 4 162 584 Total Outcome 1 24% 48% 1% 28% 100%

Outcome 2

Category 1 6 35 0 18 59

Category 2 14 73 17 28 132

Category 3 7 6 3 16 32

Category 4 0 0 0 0 0

27 114 20 62 223 Total Outcome 2 12% 51% 9% 28% 100%

1. Section 40TF of the Australian Federal Police Act 1979 (Cth) sets out the circumstances under which the Commissioner may decide to take no further action in relation to a conduct issue. These circumstances include when appropriate action has already been taken or further investigation is determined to be not warranted or the alleged issue took place more than 12 months before reporting.

Note: This table includes only matters reported before 1 July 2015, and finalised during 2014–15.

174 8 APPENDICES

TABLE A4 CONDUCT BREACHES ESTABLISHED BY TYPE 2014–15

Type Number Percentage

Inappropriate behaviour/conduct 18 11

Failure of security practices role / duty 12 7

Information release 12 7

Fail to comply with procedure 8 5

Fail to record and report 8 5

Diligence failure 7 4

Inappropriate use AFP resources 7 4

Information access 7 4

Fail to comply with direction 6 4

False information / statement 6 4

Fail to declare association 5 3

Misuse of authority 5 3

CO3 fail secure ammunition/accoutrements 4 2

Conflict of interest 4 2

Criminal misconduct 4 2

Harassment 4 2

Inadequate service 4 2

Information misuse 4 2

Discourtesy 3 2

False time recording 3 2

Property accounting failure 3 2

Performance failure 3 2

Unauthorised discharge of Taser 3 2

Bullying 2 1

CO3 non serious nature 2 1

CO3 serious nature 2 1

Inappropriate behaviour/conduct serious 2 1

Misuse of AFP ID 2 1

Perjury/pervert course of justice 2 1

175 AFP ANNUAL REPORT 2014–15

Type Number Percentage

Practice or procedure issue 2 1

Property misconduct 2 1

Driving misconduct 1 1

Drug misconduct 1 1

Misuse of equipment 1 1

Neglect of duty 1 1

Property holding failure 1 1

Sexual harassment 1 1

Supervision failure 1 1

Unwarranted attention 1 1

Unauthorised discharge of firearm 1 1

Intimidation 1 1

Total established 166 100

TABLE A5 PROHIBITED DRUG TESTS CONDUCTED 2013–14 AND 2014–15

Category 2013–14 2014–15

Mandatory applicant testing 220 613

Mandatory targeted testing 4,908 4,199

Mandatory investigation and certain incident testing1 16 12

Total 5,144 4,824

1. The term ‘certain incident’ relates to an incident where a person is killed or seriously injured in an incident involving a motor vehicle or while in police custody, or a person killed or seriously injured by a firearm discharging or physical force.

176 8 APPENDICES

TABLE A6 AGE OF COMPLAINTS BEING CARRIED FORWARD TO 2015–16 (ONGOING AS AT 30 JUNE 2015)

Year of origin

2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 Total carried or earlier forward

All AFP

Category 1 20 20

Category 2 1 1 3 80 85

Category 3 1 1 8 11 44 117 182

Category 4 2 4 5 14 35 60

Total AFP 3 2 12 17 61 252 347

TABLE A7 RUN TIME FOR RESOLUTION OF COMPLAINTS

2013–14 2014–15

Average Number Average Number run time finalised run time finalised

All AFP (days) (days)

Category 1 52 160 42 99

Category 2 94 501 122 409

Category 3 228 348 280 266

Category 4 310 16 251 33

Total AFP 1,025 807

Run time defined from date recorded to finalisation.

177 AFP ANNUAL REPORT 2014–15

APPENDIX B: ADVERTISING AND MARKET RESEARCH

Under section 311A of the Commonwealth Electoral Act 1918, the AFP is required to disclose payments of $12,566 or more (inclusive of GST) to specific types of organisations. These organisations are advertising agencies, market research organisations, polling organisations, media advertising organisations and direct mail organisations.

During 2014–15 the AFP conducted the National Missing Person’s Week campaign, International Missing Children’s Day campaign, recruitment advertising and an airport consumer confidence survey (market research). The total amount spent on advertising was $281,757 of which $183,485 was non-campaign advertising.

Details of payments to advertising and market research organisations are outlined in Table B1 below. Further information is available in the reports on Australian Government advertising which are prepared by the Department of Finance and Deregulation. Those reports are available at http://www.finance.gov.au/advertising/index.html.

TABLE B1 MEDIA COSTS DURING 2014–15

Category Vendor Amount ($)

Campaign Outdoor Media Association Inc. 60,000

Campaign Mitchell and Partners Australia 38,272

Non-campaign advertising Mitchell and Partners Australia 148,741

Non-campaign advertising RecruitPlus ACT 34,744

Market research Colmar Brunton 72,820

Total 354,577

178 8 APPENDICES

APPENDIX C: STAFFING STATISTICS

TABLE C1 ONGOING, NON-ONGOING AND CASUAL STAFF 30 JUNE 2014 AND 30 JUNE 2015

Sworn Status Employment Group 30 June 2014 30 June 2015 Difference

Sworn Police Ongoing full-time 3,487 3,425 –62

Ongoing part-time 132 124 –8

Non-ongoing part-time 1 1 0

Subtotal 3,620 3,550 –70

Sworn Protective Ongoing full-time 636 676 40 Service Officer

Ongoing part-time 3 5 2

Subtotal 639 681 42

Unsworn Staff Ongoing full-time 2,273 2,217 –56

Ongoing part-time 243 227 –16

Non-ongoing full-time 37 41 4

Non-ongoing part-time 8 8 0

Casual 21 13 –8

Subtotal 2,582 2,506 –76

Asia Pacific Ongoing full-time 11 12 1 Group—Unsworn

Non-ongoing full-time 1 2 1

Subtotal 12 14 2

Total 6,853 6,751 –102

Note: Australian Institute of Police Management staff are included under Unsworn Staff.

179 AFP ANNUAL REPORT 2014–15

TABLE C2 AFP SENIOR EXECUTIVES (SUBSTANTIVE STAFF) 30 JUNE 2015

Executive Management Sworn Sworn Unsworn Total Police Protective Staff Service Officer

Chief Operating Finance and Commercial 4 4 Officer Information and 1 3 4 Communications Technology

Human Resources 4 3 7

Chief Operating Officer Total 5 10 15

Deputy Forensics 2 2 4 Commissioner Capability Intelligence 2 1 3 High-Tech Crime Operations 2 2

Operations Support 3 5 8

Deputy Commissioner Capability Total 9 8 17

Deputy Counter Terrorism 3 1 4 Commissioner National Protection 3 1 4 Security Aviation 3 3

International Deployment Group 7 7

Deputy Commissioner National Security Total 16 1 1 18

Deputy Crime Operations 3 3 Commissioner Operations Serious and Organised Crime 9 9 Regions 5 5

Deputy Commissioner Operations Total 17 17

Chief of Staff 10 2 12

Chief Police Officer—ACT 2 1 3

Asia Pacific Group 2 2

Total 59 1 24 84

Notes: Australian Institute of Police Management staff are included under Chief Operating Officer—Human Resources—Unsworn Staff.

The former Office of the Commissioner portfolio figures are captured in Chief of Staff as at 17 November 2014.

180 8 APPENDICES

TABLE C3 AFP SENIOR EXECUTIVE PERFORMANCE BONUS PAYMENTS 2014–15

Classification Amount ($) Number of Staff

SES 3 74,046 3

SES 2 375,615 18

SES 1 796,199 57

Total 1,245,860 78

Notes: These performance bonuses were paid during the 2015–16 financial year and relate to performance during the 2014–15 financial year.

Seventy-eight Senior Executive Service staff were eligible for a performance bonus.

181 AFP ANNUAL REPORT 2014–15 4 28 98 118 996 362 430 628 293 Total 3,794 6,751 Grand

14 14 Total 6 6 Male 8 8 Unsworn Staff Asia Pacific Group Asia Pacific Female 7 7 1 15 57 84 49 216 132 Total 1,938 2,506

3 5 1 18 91 25 38 56 778 Male 1,015 Staff Unsworn 4 7 10 76 32 46 31 125 1,160 1,491 Female 6 6 4 44 53 73 310 185 681 Total 5 5 3 41 51 67 172 279 623 Male 3 1 1 1 2 6 Service Officer Service 13 31 58 Sworn Protective Sworn Female 3 21 47 99 171 581 299 340 443 Total 1,546 3,550

3 18 37 82 149 467 247 272 340 Male 1,161 2,776 Police Sworn 3 10 17 52 68 22 114 103 774 385 Female AFP STAFF BY LOCATION AND GENDER 30 JUNE 2014 BY LOCATION AFP STAFF State Australian Capital Territory Commonwealth Territories New South Wales Northern Territory Post Overseas Queensland South Australia Tasmania Victoria Australia Western Total TABLE C4 TABLE Staff. are included under Unsworn Management staff of Police Institute Australian Note:

182 8 APPENDICES 3 8 14 21 20 716 813 248 422 629 681 Total 1,337 3,550 5 2 1 1 28 65 61 98 31 35 151 408 26+ 4 1 1 11 25 26 78 50 43 45 194 21–25 1 1 1 2 19 15 18 28 42 64 71 224 16–20 1 8 7 3 36 198 129 143 314 213 180 836 11–15 Length of Service (years) of Service Length 1 8 1 4 10 48 110 213 222 480 207 236 6–10 1,068 1 11 76 76 40 174 1–5 247 250 723 1 1 96 97 71 72 <1 Executive Chief of Staff Chief Operating Officer Officer—ACT Chief Police Deputy Commissioner Capability Deputy Commissioner National Security Deputy Commissioner Operations Chief Operating Officer Officer—ACT Chief Police Deputy Commissioner Capability Deputy Commissioner National Security Deputy Commissioner Operations LENGTH OF SERVICE OF AFP STAFF 30 JUNE 2015 LENGTH OF SERVICE AFP STAFF Sworn Police Sworn Subtotal Sworn Protective Service Officer Subtotal TABLE C5 TABLE

183 AFP ANNUAL REPORT 2014–15 14 83 768 216 204 938 297 Total 2,506 6,751 1 1 9 5 13 15 44 487 26+ 1 5 7 10 18 21 62 301 21–25 2 2 6 10 16 25 61 304 16–20 4 25 47 40 118 109 343 1,377 11–15 Length of Service (years) of Service Length 7 17 81 83 143 258 302 884 6–10 2,195 5 50 85 73 65 1–5 397 970 300 1,774 8 5 8 7 2 51 63 <1 142 313 Executive Chief of Staff Chief Operating Officer Officer—ACT Chief Police Deputy Commissioner Capability Deputy Commissioner National Security Deputy Commissioner Operations Group Pacific Asia Unsworn Staff Unsworn Subtotal Pacific Asia Group— Unsworn Total Note: The Chief Operating Officer portfolio includes sworn recruits at the AFP College, the Graduate and Directions programs and Australian Institute of Police of Australian Institute AFP College, the Graduate and Directions programs at the recruits includes sworn Chief Operating Officer portfolio The Note: Management staff.

184 8 APPENDICES 4 13 80 474 474 514 514 929 232 249 Total 1,151 1,151 1,563 1,542 6,751

1 3 4 4 2 14 Subtotal

1 1 2 2 6 Male Unsworn

1 2 3 2 8 Asia Pacific Group— Asia Pacific Female

13 65 22 106 106 163 163 481 627 295 391 343 2,506 Subtotal

8 16 18 88 66 Male 106 106 195 195 148 148 186 186 184 184 1,015 1,015

Unsworn Staff 5 6 47 75 40 195 195 189 189 295 432 207 1,491 Female

3 4 1 11 10 73 65

135 135 379 681 Subtotal

3 7 3 1 10 64 63 Male 117 355 623

Service Officer Service 9 2 3 1 1 Sworn Protective Sworn 18 24 58 Female

4 58 55 274 274 120 120 135 135 702 842 788 572 3,550 Subtotal

3 79 50 45 Male 113 214 214 542 645 636 449 2,776 2,776 Sworn Police Sworn

8 1 10 60 41 22 774 774 160 160 197 197 152 152 123 123 Female Base salary group Casual Band 2 Band Band 3 Band Band 4 Band Band 5 Band Band 6 Band Band 7 Band Band 8 Band Executive Executive level SES Statutory office holders Total TABLE C6 AFP WORKFORCE COMPOSITION 30 JUNE 2014 TABLE

185 AFP ANNUAL REPORT 2014–15

TABLE C7 OUTPOSTING TO OTHER AGENCIES / POLICE SERVICES, SECONDMENTS, TERRITORIES POLICE, PEACEKEEPING/POLICE DEVELOPMENT 30 JUNE 2015

Location and Agency Total Domestic 63 Attorney-General’s Department 1 Attorney-General’s Department, Defence Abuse Response Taskforce 3 Australian Commission for Law Enforcement Integrity 1 Australian Crime Commission 4 Australian Customs and Border Protection Service 5 Australian Defence Force Investigative Service 2 Australian Federal Police Association 2 Australian Sports Anti-Doping Authority 1 Australian Taxation Office 1 Australian Transaction Reports and Analysis Centre 1 Department of Human Services 10 National Threat Assessment Centre 2 Northern Territory Police (Child Abuse Taskforce) 4 Royal Commission into Institutional Responses to Child Sexual Abuse 5 Royal Commission into Trade Union Governance and Corruption 21 International 14 Europol 1 Interpol 2 Interpol Global Complex for Innovation 2 Joint Cybercrime Action Taskforce 1 National Crime Agency 1 National Cyber Forensics and Training Alliance 1 Pacific Transnational Crime Coordination Centre 1 Special Operations Division (SOD) Drug Enforcement Agency 1 Transnational Crime Coordination Network 1 Transnational Crime Unit 2 United Nations Headquarters 1 Peacekeeping/Police Development 267 External territories 28 Stability/capacity building 239 Total 344

186 8 APPENDICES

TABLE C8 AFP STAFF IDENTIFYING AS ABORIGINAL AND/OR TORRES STRAIT ISLANDER BY SWORN STATUS AND EMPLOYMENT GROUP 30 JUNE 2014 AND 30 JUNE 2015

Sworn Status Employment Group 30 June 2014 30 June 2015 Difference

Sworn Police Ongoing full-time 34 38 4

Ongoing part-time 1 1 0

Subtotal 35 39 4

Sworn Protective Ongoing full-time 11 8 –3 Service Officer

Subtotal 11 8 –3

Unsworn Staff Ongoing full-time 44 41 –3

Ongoing part-time 1 0 –1

Non-ongoing full-time 0 2 2

Non-ongoing part-time 6 3 –3

Subtotal 51 46 –5

Total identifying as Indigenous 97 93 –4

Total 6,853 6,751

Indigenous employment rate 1.4% 1.4%

Note: This data has been captured using an optional self-reporting mechanism; therefore the numbers in this table may not accurately reflect the actual numbers of Aboriginal and/or Torres Strait Islander staff within the organisation.

187 AFP ANNUAL REPORT 2014–15 4 3 2 4 3 3 14 59 93 Total Grand 5 2 1 1 1 35 46 Total 3 16 20 Male Unsworn Staff 2 2 1 1 1 19 26 Female 2 4 1 1 8 Total

2 3 1 1 7 Male Service Officer Service 1 1 Sworn Protective Sworn Female 5 2 3 1 3 2 1 22 39 Total 5 1 3 1 2 2 1 16 31 Male Sworn Police Sworn 6 1 1 8 Female Australian Australian Capital Territory New South Wales Northern Territory Post Overseas Queensland South Australia Tasmania Victoria Australia Western Total Location Note: This data has been captured using an optional self-reporting mechanism; therefore the numbers in this tablenot accurately reflect therefore may using an optional self-reporting mechanism; data This has been captured Note: within the organisation. Strait Islander staff Torres Aboriginal and/or numbers of actual TABLE C9 AFP STAFF IDENTIFYING AS ABORIGINAL AND/OR TORRES STRAIT ISLANDER BY LOCATION AND GENDER 30 JUNE 2015 IDENTIFYING AS ABORIGINAL AND/OR TORRES STRAIT ISLANDER BY LOCATION C9 AFP STAFF TABLE

188 8 APPENDICES

APPENDIX D: ENTITY RESOURCE STATEMENT AND RESOURCES FOR OUTCOMES

TABLE D1 ENTITY RESOURCE STATEMENT 2014–15

Actual available Payments Balance appropriation made remaining for 2014–15 2014–15 2014–15 $’000 $’000 $’000 (a) (b) (a) – (b) ORDINARY ANNUAL SERVICES1 Departmental appropriation2 1,630,094 1,352,070 278,024 Total 1,630,094 1,352,070 278,024 Administered expenses Outcome 13 15,950 15,950 Total 15,950 15,950 Total ordinary annual services A 1,646,044 1,368,020 OTHER SERVICES4 Departmental non-operating

Equity injections 133,184 87,365 45,819 Total other services B 133,184 87,365

Total available annual appropriations 1,779,228 1,455,385 Total available annual appropriations 1,779,228 1,455,385 excluding special accounts SPECIAL ACCOUNTS

Opening balance5 5,834 Appropriation receipts6 1,522 Non-appropriation receipts to 11,535 special accounts Payments made 11,968 Total special accounts C 18,891 11,968 6,923 Total resourcing (A+B+C) 1,798,119 1,467,353 Less appropriations drawn from annual or (13,057) (13,057) special appropriations above and credited to special accounts Total net resourcing for entity 1,785,062 1,454,296

189 AFP ANNUAL REPORT 2014–15

1. Appropriation Act (No. 1) 2014–15 and Appropriation Act (No. 3) 2014–15. This also includes prior-year departmental appropriations available and section 74 retained revenue receipts.

2. Includes an amount of $35.207m in 2014–15 for the departmental capital budget. For accounting purposes this amount has been designated as ‘contributions by owners’.

3. Appropriation Act (No. 1) 2014–15 and Appropriation Act (No. 3) 2014–15. This also includes prior-year administered appropriations.

4. Appropriation Act (No. 2) 2014–15 and Appropriation Act (No. 4) 2014–15. This also includes available equity appropriations from previous years.

5. Estimated opening balance for special accounts (less ‘special public money’ held in an account such as a Services for Other Entities and Trust Moneys Special Account).

6. Appropriation receipts from annual appropriations for 2014–15 included above.

190 8 APPENDICES

TABLE D2 EXPENSES FOR OUTCOME 1

Outcome 1: Reduced criminal and security threats Budget1 Actual Variation to Australia’s collective economic and societal 2014–15 expenses 2014–15 interests through co-operative policing services 2014–15 $’000 $’000 $’000 (a) (b) (a) – (b) Programme 1.1: Federal Policing and National Security Administered expenses Ordinary annual services (Appropriation Act No. 1) 3,553 3,709 (156) Departmental expenses Departmental appropriation2 917,416 926,026 (8,610) Special accounts 8,510 11,968 (3,458) Expenses not requiring appropriation in the budget year3 91,292 83,565 7,727 Total for Programme 1.1 1,020,771 1,025,268 (4,497) Programme 1.2: International Police Assistance Administered expenses Ordinary annual services (Appropriation Act No. 1) 14,722 14,571 151 Departmental expenses Departmental appropriation2 238,272 242,504 (4,232) Expenses not requiring appropriation in the budget year3 14,664 12,243 2,421 Total for Programme 1.2 267,658 269,318 (1,660) Outcome 1 totals by appropriation type Administered expenses Ordinary annual services (Appropriation Act No. 1) 18,275 18,280 (5) Departmental expenses Departmental appropriation2 1,155,688 1,168,530 (12,842) Special accounts 8,510 11,968 (3,458) Expenses not requiring appropriation in the budget year3 105,956 95,808 10,148 Total expenses for Outcome 1 1,288,429 1,294,586 (6,157)

2013–14 2014–15 Average staffing level (number) 5,622 5,458

1. Full-year budget, including any subsequent adjustment made to the 2014–15 Budget.

2. Departmental appropriation combines ‘Ordinary annual services (Appropriation Act No. 1)’ and retained revenue receipts under section 74 of the PGPA Act (2013).

3. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and resources received free of charge.

191 AFP ANNUAL REPORT 2014–15

TABLE D3 EXPENSES FOR OUTCOME 2

Outcome 2: A safe and secure environment Budget1 Actual Variation through policing activities on behalf of the 2014–15 expenses 2014–15 Australian Capital Territory Government 2014–15 $’000 $’000 $’000

(a) (b) (a) – (b)

Programme 2.1: ACT Community Policing

Departmental expenses

Departmental appropriation2 153,623 154,727 (1,104)

Expenses not requiring appropriation in 5,310 5,310 the budget year3

Total expenses for Outcome 2 158,933 160,037 (1,104)

2013–14 2014–15

Average staffing level (number) 974 922

1. Full-year budget, including any subsequent adjustment made to the 2014–15 Budget.

2. Departmental appropriation combines ‘Ordinary annual services (Appropriation Act No. 1)’ and retained revenue receipts under section 74 of the PGPA Act (2013).

3. Expenses not requiring appropriation in the budget year relate to resources received free of charge.

192 8 APPENDICES

APPENDIX E: LIST OF REQUIREMENTS

Part of Report Requirement Page

Letter of transmittal Mandatory iii

Table of contents Mandatory v

Index Mandatory 214

Glossary Mandatory 212

Contact officer(s) Mandatory ii

Internet home page address and Internet Mandatory ii address for report

Review by Commissioner

Review by departmental secretary Mandatory 2–4

Summary of significant issues and developments Suggested 2

Overview of department’s performance and Suggested 4–5 financial results

Outlook for following year Suggested 4

Significant issues and developments – portfolio Portfolio na departments – suggested

Agency overview

Role and functions Mandatory 8

Organisational structure Mandatory 15

Outcome and programme structure Mandatory 18–29

Where outcome and programme structure differs from Mandatory na PB Statements/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change

Portfolio structure Portfolio na departments - mandatory

Report on performance

Review of performance during the year in relation to Mandatory 18–29 programmes and contribution to outcomes 32–75

78–90

193 AFP ANNUAL REPORT 2014–15

Part of Report Requirement Page

Actual performance in relation to deliverables and Mandatory 18–29 KPIs set out in PB Statements/PAES or other portfolio statements

Where performance targets differ from the PBS/PAES, Mandatory na details of both former and new targets, and reasons for the change

Narrative discussion and analysis of perforsmance Mandatory 18–90

Trend information Mandatory 19–28, 43, 104, 109, 172, 176, 177, 179, 187

Significant changes in nature of principal functions/ Suggested na services

Performance of purchaser/provider arrangements If applicable, na suggested

Factors, events or trends influencing departmental Suggested 2–4, 18, 27 performance

Contribution of risk management in achieving Suggested 100, 101, 105 objectives

Performance against service charter customer service If applicable, 23, 104–05 standards, complaints data, and the department’s mandatory response to complaints 172–77

Discussion and analysis of the department’s financial Mandatory 4, 107 performance

Discussion of any significant changes in financial Mandatory 4, 107 results from the prior year, from budget or anticipated to have a significant impact on future operations.

Agency resource statement and summary resource Mandatory 189–92 tables by outcomes

Management and accountability

Corporate governance

Agency heads are required to certify their agency’s Mandatory iii actions in dealing with fraud.

Statement of the main corporate governance practices Mandatory 99–101 in place 94–7

Names of the senior executive and their Suggested 15 responsibilities

Senior management committees and their roles Suggested 13, 99

194 8 APPENDICES

Part of Report Requirement Page

Corporate and operational plans and associated Suggested 2–4, 9–10, 23, performance reporting and review 94, 99–101

Internal audit arrangements including approach Suggested 94, 99, 100–01, adopted to identifying areas of significant financial or operational risk and arrangements to manage those 103–05, 114 risks

Policy and practices on the establishment and Suggested 100, 103, 105 maintenance of appropriate ethical standards 172–77

How nature and amount of remuneration for SES Suggested 111 officers is determined

External scrutiny

Significant developments in external scrutiny Mandatory 103–04

Judicial decisions and decisions of administrative Mandatory 105 tribunals and by the Australian Information Commissioner

Reports by the Auditor-General, a Parliamentary Mandatory 94, 103–04 Committee, the Commonwealth Ombudsman or an agency capability review

Management of human resources

Assessment of effectiveness in managing and Mandatory 110–17 developing human resources to achieve departmental objectives

Workforce planning, staff retention and turnover Suggested 110

Impact and features of enterprise or collective Suggested 111 agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and Australian Workplace Agreements (AWAs)

Training and development undertaken and its impact Suggested 45, 114–17

Work health and safety performance Suggested 114

Productivity gains Suggested 110–11

Statistics on staffing Mandatory 110, 179–88

Statistics on employees who identify as Indigenous Mandatory 187–88

Enterprise or collective agreements, IFAs, Mandatory 111 determinations, common law contracts and AWAs

195 AFP ANNUAL REPORT 2014–15

Part of Report Requirement Page

Performance pay Mandatory 181

Assets management

Assessment of effectiveness of assets management If applicable, na mandatory

Purchasing

Assessment of purchasing against core policies and Mandatory 101, 107–09 principles

Consultants

A summary statement detailing the number of new Mandatory 108–09 consultancy services contracts let during the year, the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST), the number of ongoing consultancy contracts that were active in the reporting year and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST); and a statement noting that information on contracts and consultancies is available through the AusTender website

Australian National Audit Office Access Clauses

Absence of provisions in contracts allowing access by Mandatory 109 the Auditor-General

Exempt contracts

Contracts exempted from publication on AusTender Mandatory 108

Small business

Procurement initiatives to support small business Mandatory 107–08

Financial statements

Financial statements Mandatory 122–68

Other mandatory information

Work health and safety (Schedule 2, Part 4 of the Mandatory 114 Work Health and Safety Act 2011)

Advertising and market research (section 311A of the Mandatory 178 Commonwealth Electoral Act 1918) and statement on advertising campaigns

Ecologically sustainable development and Mandatory 102 environmental performance (section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

196 8 APPENDICES

Part of Report Requirement Page

Compliance with the agency’s obligations under the If applicable, na Carer Recognition Act 2010 mandatory

Grant programs Mandatory 100

Disability reporting—explicit and transparent reference Mandatory 111–12 to agency-level information available through other reporting mechanisms

Information Publication Scheme statement Mandatory 101

Correction of material errors in previous annual report If applicable, na mandatory

Agency resource statements and resources for Mandatory 189–92 outcomes

List of requirements Mandatory 193–97

197

ANNEX A: ASSUMED IDENTITIES ANNUAL REPORT 2014–15 AFP ANNUAL REPORT 2014–15

PART IAC OF THE CRIMES ACT 1914

Under section 15LD(1) of the Crimes Act 1914 (Cth), the chief officer of the Australian Federal Police (AFP), as soon as practicable after the end of each financial year, must submit a report to the Minister that includes the following information: a. the number of authorities granted during the year b. a general description of the activities undertaken by authorised civilians and authorised law enforcement officers when using assumed identities under Part IAC during the year c. the number of applications for authorities that were refused during the year d. the number of authorities of which control was transferred by the chief officer under section 15KV during the year e. the number of authorities of which control was transferred to the chief officer under section 15KV during the year f. a statement whether or not any fraud or other unlawful activity was identified by an audit under section 15LG during the year g. any other information relating to authorities and assumed identities and the administration of Part IAC that the Minister considers appropriate.

For the year ending 30 June 2015: a. Authorising persons from the AFP issued 114 authorities for the acquisition and use of assumed identities. In addition, there were 32 variations and 134 revocations. b. The activities undertaken by approved officers when using their assumed identities included functions performed covertly in the conduct of intelligence collection and investigations associated with the achievement of AFP core business outcomes. c. No applications for authorities were refused. d. There were no authorities of which control was transferred by the chief officer of the AFP under section 15KV. e. There were no authorities of which control was transferred to the chief officer of the AFP under section 15KV. f. Five audits were conducted on records and practices relating to assumed identities. No fraud or unlawful activity was identified. g. There is no other information relating to authorities and assumed identities and the administration of Part IAC.

200

ANNEX B: NATIONAL WITNESS PROTECTION PROGRAM ANNUAL REPORT 2014–15 AFP ANNUAL REPORT 2014–15

MINISTER’S INTRODUCTION

I am pleased to submit the 2014–15 annual report on the operation of the National Witness Protection Program under the provisions of the Witness Protection Act 1994 (Cth).

The report sets out the provisions of the legislation and relevant activity for the reporting period. The costs of the program are shown in the appendix to this report.

The task of providing witness protection is a highly sensitive area of law enforcement and I commend those involved with the administration and maintenance of the program.

This report has been prepared to provide as much detail as possible without prejudicing the effectiveness of the security of the National Witness Protection Program.

Michael Keenan Minister for Justice 16 October 2015

204 Annex B: National Witness Protection Program Annual Report 2014–15

INTRODUCTION

The Witness Protection Act 1994 (Cth) (the Act) provides the statutory basis for the National Witness Protection Program (NWPP) and commenced operation on 18 April 1995.

The Act enables protection and assistance to be provided to witnesses who are assessed as being in danger because they have given, or have agreed to give, evidence or a statement on behalf of the Crown in criminal or certain other proceedings or because of their relationship to these persons. This includes witnesses involved in operations run by the AFP, the Australian Commission for Law Enforcement Integrity, the Australian Crime Commission and authorised state and territory bodies.

NWPP operational costs are shared between the AFP and the approved authority that refers the witness for protection and assistance.

Foreign law enforcement agencies and the International Criminal Court can request that foreign nationals or residents be included in the NWPP. The Minister for Justice must approve the inclusion of foreign nationals pursuant to sections 10 and 10A of the Act.

The AFP Commissioner administers the NWPP through the Witness Protection Committee and the Coordinator Witness Protection. The Witness Protection Committee comprises the AFP Deputy Commissioner National Security, to whom a number of responsibilities are delegated, and two senior AFP officers—the National Manager Protection and National Manager Serious and Organised Crime.

The Witness Protection Committee makes recommendations on the inclusion and exit of witnesses in and from the program and on the conditions of their inclusion and exit. The Coordinator Witness Protection is responsible for the day-to-day operations of the NWPP. GENERAL OPERATIONS OF THE NWPP

The NWPP provides an environment in which participants are able to give evidence in criminal trials that involve a significant degree of criminality at both the Commonwealth and state levels without fear of retribution.

The majority of participants in the NWPP have been accepted into the program because of their involvement as witnesses in prosecutions relating to organised crime, large-scale importation of illegal drugs or corruption matters. One of the matters considered when deciding that a person be included in the NWPP is that there are no other viable methods of protecting the witness. Section 5 of the Act prohibits witnesses from being included in the NWPP as a reward or as a means of persuading or encouraging them to give evidence or make a statement.

Participants in the NWPP experience an initial period of restricted and arduous lifestyle because of the strict security directions employed by the NWPP that are required to provide protection. These lifestyle restrictions are generally relaxed in time, once participants are integrated and self-sustainable within a community. The issue of self-sustainability is a key factor in determining the length of time that participants remain on the program.

In the year ending 30 June 2015, the NWPP managed 31 witness protection operations, providing protection and assistance to 61 people.

205 AFP ANNUAL REPORT 2014–15

Three assessments were completed and three assessments were commenced for inclusion into the NWPP, resulting in six people joining the NWPP and one person voluntarily declining to continue the assessment process. One operation was concluded, resulting in the departure of four participants from the NWPP.

The AFP’s role in law enforcement is at the national and international level, as well as the community policing level in the Australian Capital Territory. The Australian Capital Territory does not have a separate witness protection scheme. Any witnesses who fall under the Witness Protection Act 1996 (ACT) are assessed for inclusion in the NWPP.

The Commissioner made no disclosures under section 27 of the Act during the reporting period. INTEGRITY AND ACCOUNTABILITY OF THE NWPP

Safeguards in the Act help to ensure that the integrity and accountability of the NWPP are maintained. AFP employees deployed to witness protection either hold or occupy designated positions that have national security clearance of Negative Vetting Level 2.

NWPP employees are subject to AFP anti-corruption strategies, which include drug testing in accordance with section 40M of the AFP Act.

The NWPP is subject to the AFP Governance Instrument Framework, which includes auditing of financial and performance management processes and compliance with the Act.

The Coordinator Witness Protection presents applications for the placement of persons in the NWPP to the Witness Protection Committee. Officers who investigate the criminal matters that relate to the protection and assistance of the witness, as well as those NWPP employees who prepare submissions to the committee, are not involved in the decision-making process for that person’s inclusion in the NWPP. This separation of responsibilities helps to ensure that decisions are made independently of operational considerations. COMPLAINTS AND REVIEWS OF DECISIONS

The protection of information relating to participants in the NWPP is of paramount concern. Therefore, decisions made under the Act are not subject to the Administrative Decisions (Judicial Review) Act 1977 (Cth).

AFP employees who administer the NWPP are subject to the same obligations as other members of the AFP. If a complaint is received, it will be dealt with in accordance with the Australian Federal Police Act 1979 (Cth). Complaints against officers may also be the subject of investigation by the Commonwealth Ombudsman under the Ombudsman Act 1976 (Cth).

The Commonwealth Ombudsman finalised one investigation relating to the NWPP in 2014–15.

In 2014–15 the AFP Commissioner was not required to review any decisions made by a deputy commissioner to remove a person from the program involuntarily.

206 Annex B: National Witness Protection Program Annual Report 2014–15

PERFORMANCE AND EFFECTIVENESS OF THE NWPP

Witness protection services under the Act are delivered by the AFP Protection function. One of AFP Protection’s key performance indicators is that there are fewer than four avoidable incidents per 5,000 protection hours. There were no avoidable incidents related to the NWPP during the reporting period. This includes recorded instances of direct physical attack on any participant in the NWPP in the reporting period.

In the past, certain entities that could compromise the security of participants in the NWPP have made attempts to locate and identify participants. However, no recorded instances occurred during the reporting period.

Section 28 of the Act protects participants’ identities during court proceedings. The court can hold parts of the proceedings in private or it can make suppression orders on the publication of the evidence. Suppression orders were required for one investigation during the reporting period.

AFP NWPP employees undergo skills maintenance training each year to maintain and enhance operational witness protection skills and performance.

AMENDMENT TO THE ACT AND RELATED MATTERS

There were no legislative amendments to the Act during the reporting period. COMPLEMENTARY WITNESS PROTECTION LEGISLATION

The purpose of section 24 of the Act is to protect the integrity of key Commonwealth documents that are needed in order for witnesses to establish new identities. All jurisdictions have enacted complementary legislation,1 which has been declared ‘complementary witness protection law’ under section 3 of the Act. Signed section 24 arrangements are in place in all jurisdictions except Tasmania and the Northern Territory. FINANCIAL ARRANGEMENTS

The NWPP is administered and operated by the AFP. Basic administration costs and the base salaries of NWPP employees involved in witness protection activities are met from within the AFP budget.

By arrangement with the AFP, other agencies that have witnesses in the NWPP are responsible for costs, including those related to the security and subsistence needs of their witness and any operational expenses that the NWPP incurs. The AFP is responsible for costs of AFP-sponsored witnesses in the NWPP.

A table of costs for the NWPP for the previous 11 financial years is in the appendix to this report. The figures do not include the salaries and overhead costs of administering the NWPP. Figures provided are as at 30 June 2015.

1. New South Wales—Witness Protection Act 1995; Queensland—Witness Protection Act 2000; South Australia—Witness Protection Act 1996; Tasmania—Witness Protection Act 2000; Victoria—Witness Protection Act 1991; Western Australia—Witness Protection (Western Australia) Act 1996; Australian Capital Territory—Witness Protection Act 1996; and Northern Territory—Witness Protection (Northern Territory) Act 2002.

207 AFP ANNUAL REPORT 2014–15

APPENDIX: EXPENDITURE

TABLE AA1 NATIONAL WITNESS PROTECTION PROGRAM EXPENDITURE 2014–15

Expenditure Amout

AFP expenditure on NWPP $712,565.61

Less amounts recovered $263,576.16

Total AFP expenditure on NWPP $448,989.45

TABLE AA2 TOTAL EXPENDITURE (BEFORE COSTS WERE RECOVERED) IN PREVIOUS YEARS

Year Total expenditure

1 July 2013 – 30 June 2014 $688,515.13

1 July 2012 – 30 June 2013 $1,179,698.65

1 July 2011 – 30 June 2012 $899,942.79

1 July 2010 – 30 June 2011 $974,316.78

1 July 2009 – 30 June 2010 $1,245,358.72

1 July 2008 – 30 June 2009 $1,570,620.88

1 July 2007 – 30 June 2008 $1,047,748.52

1 July 2006 – 30 June 2007 $1,940,731.32

1 July 2005 – 30 June 2006 $952,612.39

1 July 2004 – 30 June 2005 $1,667,826.70

1 July 2003 – 30 June 2004 $2,160,809.62

208 Shortened Forms

SHORTENED FORMS

Term Meaning

ACLEI Australian Commission for Law Enforcement Integrity

ACT Australian Capital Territory

AFP Australian Federal Police

AFPNET Australian Federal Police Network

ANAO Australian National Audit Office

ANZAC Australian and New Zealand Army Corps

AOCC AFP Operations Coordination Centre

ASIO Australian Security Intelligence Organisation

ATO Australian Taxation Office

CACT Criminal Assets Confiscation Taskforce

CARIN Camden Asset Recovery Inter-Agency Network

CCTV closed-circuit television

CRAMS complaint recording and management system

Cth Commonwealth

DNA deoxyribonucleic acid

EBB Edmund Barton Building

FAC Fraud and Anti-Corruption

FBI Federal Bureau of Investigation

FOI Freedom of Information

G20 The Group of Twenty

GST goods and services tax

HTCO High-Tech Crime Operations

ICC Incident Coordination Centre

ICT information and communications technology

IDG International Deployment Group

Indo Indonesia

Interpol International Criminal Police Organization

IT information technology

209 AFP ANNUAL REPORT 2014–15

Term Meaning

KPI key performance indicator

L&D Learning and Development

LGBTI lesbian, gay, bisexual, trans and intersex

MDMA 3,4-methylenedioxy-methamphetamine (ecstasy)

MOSC Management of Serious Crime

MP Member of Parliament

na not applicable

NAB National Australia Bank

NAIDOC National Aborigines and Islanders Day Observance Committee

NSW New South Wales

NSWPF New South Wales Police Force

NWPP National Witness Protection Program

OECD Organisation for Economic Co-operation and Development

PBS Portfolio Budget Statement

PICP Pacific Islands Chiefs of Police

PNG-APP Papua New Guinea – Australia Policing Partnership

POCL Proceeds of Crime Litigation

PPDP-R Pacific Police Development Program—Regional

PROMIS Police Real-time Online Management Information System

RAMSI Regional Assistance Mission to Solomon Islands

RPNGC Royal Papua New Guinea Constabulary

RSIPF Royal Solomon Islands Police Force

RTO Registered Training Organisation

UN United Nations

210 glossary

GLOSSARY

Term Meaning

AFP Enterprise The AFP Enterprise Agreement 2012–2016 sets the terms and Agreement conditions of employment in the AFP in accordance with section 172 of the Fair Work Act 2009.

AFPNET The main AFP computer system used to process, access and store information.

Australian Institute of An AFP-run education and networking facility that supports all Police Management Australian and New Zealand law enforcement agencies, as well as many international police officers.

Directions Program An integrated entry-level pathways program offering a range of employment options for Aboriginal and Torres Strait Islander Australians.

Disruption and An AFP-led operational task group to support the Operation Deterrence Task Group Sovereign Borders Joint Agency Task Force.

Drug Harm Index A performance measure which puts a dollar figure on the overall damage to the Australian community that has been prevented by seizing drugs at the border.

Europol The law enforcement agency of the European Union, which aims to help achieve a safer Europe by supporting the law enforcement agencies of European Union member states in their fight against international serious crime and terrorism.

G20 The Group of Twenty, comprising major advanced and emerging economies: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States and the European Union.

geomatics The discipline of gathering, storing, processing, and delivering geographic information, or spatially referenced information. It includes the tools and techniques used in land surveying, remote sensing, cartography, geographic

information systems, global navigation satellite systems, photogrammetry, geography and related forms of earth mapping.

International Network An AFP group that operates with other Australian Government and international law enforcement agencies domestically and internationally in an effort to combat transnational organised crime. As at June 30 2015, the International Network had 99 members deployed in 29 countries.

Interpol The world’s largest international police organisation, with 190 member countries, which facilitates cross-border police cooperation and assists agencies to prevent or combat international crime.

211 AFP ANNUAL REPORT 2014–15

Term Meaning

National Anti-Gangs A multi-agency taskforce aimed at disrupting and dismantling Squad criminal gang activity by supporting strike teams in state capitals. The taskforce provides a mechanism for the national coordination of investigations to target gang-related crime.

National Forensic An AFP forensic capability that facilitates the identification of Rapid Lab organised multiple importations of significant quantities of illicit drugs via the international postal system through the collection, analysis and assessment of forensic intelligence

Operation Sovereign A military-led border security operation established to ensure Borders a whole-of-government effort to combat people smuggling and protect Australia’s borders.

Public Governance, An Act about the governance, performance and accountability Performance and of, and the use and management of public resources by the Accountability Act Commonwealth, Commonwealth entities and Commonwealth 2013 (Cth) companies that will underpin the AFP’s financial governance framework. The PGPA replaced the Financial Management and Accountability Act 1997 (Cth) on 1 July 2014.

ThinkUKnow A free, evidence-based cyber safety program that provides educational presentations to parents, carers and teachers delivered by trained law enforcement and industry volunteers in schools and organisations across Australia. The program is delivered in partnership between the AFP, Microsoft Australia, Datacom and the Commonwealth Bank, and is supported by all state and territory police forces. More information is available at www.thinkuknow.org.au

212 Index

INDEX

A assets confiscationsee criminal assets confiscation Aboriginal and/or Torres Strait Islander staff, 111–2, 187–8 assumed identities annual report 2014–15, 199–200 achievements 2014–15, 5 Atlas, Program, 110 acronyms and abbreviations, 210–11 Attorney-General’s Department, 38, 79, 186 ACT Policing (outcome 2), 29, 118 audit address and contact details, ii external, 103 administrative tribunal decisions, 105 internal, 94, 101 advertising and market research, 178 rehabilitation management systems, 114 advisory groups, 13 Auditor-General AFP College, 117 access clauses, 108 AFP Legal, 87–8 reports, 103 Air Security Officers, 32 AusTender, 108, 109 Airport Consumer Confidence Survey, 20, 24, 178 Australian Border Force, 42, 95 Airport Investigation Teams, 32 Australian Commission for Law Enforcement Integrity, 104, 172, 186, 205, 210 Airport Police Commanders, 32 Australian Crime Commission, 38, 44, 52, 84, airport policing, 24, 32, 166 85, 293 Airport Watch strategy, 34 Australian Customs and Border Protection Alastria, Operation, 56 Service, 38, 42, 44, 51, 52, 81, 83, 116 Alate, Operation, 51 Australian Cyber Security Centre, 55 Amberd, Operation, 36 Australian Embassy, Indonesia, 71 Anzac Day commemorations, security for, 70, Australian Federal Police Act 1979 (Cth), 8, 75 204 Appleby, Operation, 36, 82 Australian Information Commissioner, 103 Arachnid, Operation, 84 Australian Nuclear Science and Technology Organisation, 71 Arew, Operation, 25, 48, 78, 82, 83, 90 Australian Parliament House, security for, 25, communications support for, 118 71, 75, 95 Specialist Response Group, 66 Australian Security Intelligence Organisation, Asia–Pacific Economic Cooperation Capacity 37, 38, 83, 84, 106 Building Workshop, 88 Australian Taxation Office, 38, 44, 52 Asian Football Confederation Cup, 50, 70, 74, Australian Transaction Reports and Analysis 85 Centre, 38, 44, 52 Asset Recovery Interagency Network, 88 Australian Workplace Equality Index Awards, 4, 111

213 AFP ANNUAL REPORT 2014–15

Aviation function, 32–4 change management initiatives, 90 highlights 2014–15, 32 Chemical Anti-Smuggling Enforcement Program, 80 objective, 32 Chief of Staff function, 95–8, 101–2 performance against KPIs and deliverables, 19, 21, 24 objective, 95 avoidable incidents, 25 child protection, 25, 46, 49, 56–7 awards and recognition, 111 abduction, 59 Azoic, Operation, 25, 42 child sex offenders see travelling child sex offenders B Christmas Island Immigration Detention Blare, Operation, 53 Centre, 65 Border Force Investigations Course, 115 Close Personal Protection, 25, 70 Boscobel, Operation, 44 cocaine detection and seizure, 33, 42, 79, 84 business continuity planning, 100 code of conduct breaches, 172–7 business model review, 3 Colvin, Andrew (AFP Commissioner), 15 Business Satisfaction Survey, 23–4, 100 Comcare, 114 business systems replacement, 90 Comcover, 101 Commissioner, AFP C reporting lines to, 15 Camden Asset Recovery Inter-Agency review 2014–15, 2–4 Network, 88 committees, management, 99 cannabis detection and seizure, 51 Commonwealth Criminal Assets Confiscation case studies Taskforce, 88 airport security, 34 Commonwealth Ombudsman, 60, 104 child protection, 46, 57 Commonwealth Protective Security Policy counter terrorism, 37 Framework, 89–90 drug detection and seizure, 42, 51, 81, 84 communications activities, 97–8 foreign bribery, 53 communications interceptions and monitoring, 54, 60 hacktivism, 56 community awareness campaigns, 34, 59, 98 insider trading, 53 community engagement, 39 MH17 disaster, 48 achievements 2014–15, 5 money laundering, 89 survey, 23–4 Parliament House security review, 75 Community Liaison Teams, AFP, 39 Project Mekim Senis, 68 community policing, external territories, 65 serious and organised crime, 41, 44 community satisfaction rates, 24 taxation fraud, 44 Castrum, Operation, 36

214 Index

Complaint Recording and Management Cybercrime Centre, The Hague, 55 System, 90 cybercrime investigations and activities, 54–9 complaints, 104–5, 172–7 Cybercrime Operations, AFP, 55 conduct breaches, 172–7 Cybercrime Prevention Team, 59 conflicts of interest, 105 consultancies, 107–9 D contact details, iv Daisy’s Destruction, 57 controlled operations, 60 Data Centre Transition Program, 87, 102 conviction rates, 5, 24, 18 Day for Daniel, 59 copyright infringements, 50 decisions review, 105 corporate governance, 99–101 deliverables, 18, 21–2 corporate integrity, 172–3 Department of Defence, 38 Corporate Plan 2015-19, 100 Department of Foreign Affairs and Trade, 38 Counter Terrorism function, 25, 35–40 Department of Human Services, 38 highlights 2014–15, 35 Department of Immigration and Border Protection, 38, 65 objective, 35 Department of Social Services, 38 performance against KPIs and deliverables, 18–19, 21 Department of the Prime Minister and Cabinet, 40 Counter Terrorism Leaders Forum, 40 Design and Evaluation Team, 66–7 Counter Terrorism Leaders Working Group, 40 detective training, 115 Countering Violent Extremism Strategy, 39 diplomatic and consular missions, 71 court convictions, 5, 24 disability strategy, 112 covert policing, 85 Disaster Victim Identification, 48 credit card knives, 34 discretionary grants, 100 Cricket World Cup, 50, 69, 70, 74, 85, 106, 119 Disruption and Deterrence Task Group, 47 Crime Program, AFP, 41–53 Diversion Team, AFP, 38 highlights 2014–15, 41 Diversity Council, AFP, 112 objective, 41 diversity, workforce, 111–12 performance against KPIs and deliverables, 20, 21 domestic collaboration see partnerships and collaboration, domestic criminal assets confiscation, 25, 26, 44 drug detection and seizure, 25–6, 33, 51 Criminal Assets Confiscation Taskforce, 53, 88 forensic capability enhancements, 79 criminal history checks, 106 international mail, 51 currency see proceeds of crime Operation Alate, 51 Cyber Safety Pasifika initiative, 59 Operation Arachnid, 84 cyberbullying, 57, 58

215 AFP ANNUAL REPORT 2014–15

Operation Azoic, 42 firearms, illegal, 41, 51, 79 Operation Koi, 42, 81 Fisher Model of complaint management, 105 statistics, 43 Five Country Ministerial meeting, 95 Drug Harm Index, AFP, 26 foreign bribery, 52, 53 Drug Monitoring System, 79 foreign fighters, 35, 38, 94, 95 Drug Program, AFP, 105 Forensics function, 25, 48, 78–81 capability enhancements, 79 E highlights 2014–15, 78 ecologically sustainable development, 102 new facilities, 81 Eligo National Taskforce, 44 objective, 78 email address, ii performance against KPIs and deliverables, emergency response, 61, 65, 66 see also 22 Arew, Operation service-level targets, 25 employees see staff forums, 40, 96 Enhanced National Intelligence Picture on Illicit Drugs, 79 Fraud and Anti-Corruption Centre, 52 enterprise agreements, 111 fraud detection and investigations, 25, 34, 52 entity resource statement, 189–90 fraud, internal, iii, 100 environmental performance, 102 Freedom of Information Act 1982 (Cth), 88, 101 ethical standards, 105 Future Directions Project, 14, 94 Europol, 55 Evidence Management System replacement, G 90 G20 Leaders’ Summit, 25, 55, 66, 72–4 exempt contracts, 109 gangs, 45 expenditure, 107 gender of staff, 182 external scrutiny, 103–5 Gender Strategy, International Deployment external territories, 65 Group, 67 gender-based violence, 67 F Global Complex for Innovation, 55 Facebook page, 94, 97 glossary, 211–12 facial recognition technology, 79 Gold Coast Operations Centre, 106 Federal Policing and National Security (programme 1.1), 11, 18–26 governance and accountability, 78–119 Fiji Police Force, 80 highlights 2014–15, 5, 94 Finance and Commercial function, 106–9 governance committees, 99 financial overview, 107 grants, 100 financial statements, 122–69

216 Index

H intelligence reports, 84 hacktivism attacks, 56 interdepartmental collaboration, 38, 44 handwriting analysis and comparison, 79 Internal Audit Program, 101 High Court of Australia, 71 internal scrutiny, 99–101 high office holders, protection for, 70–1, 72–4, international collaboration, 39–40, 61–8, 96 95 achievements 2014–15, 5 High Tech Collections and Capabilities team, child protection, 46, 57 60 counter terrorism, 37 High Tech Crime Operations function, 25, 54–60 cybercrime prevention, 55, 58, 59 highlights 2014–15, 54 drug detection and seizure, 84 objective, 54 foreign bribery, 52 performance against KPIs and deliverables, forensic capability, 80 20, 22 MH17 disaster, 48, 83 Hubstream software, 57 missing persons, 59 Human Source Handling Program, 115 organised crime, 41 human trafficking, 49 people smuggling, 47 Human Trafficking Investigations Course, 49 police development missions, 61–5 I proceeds of crime, 88 ICT Shopfront, 119 Specialist Response Group, 66 illegal betting, 85 see also International Network, AFP; regional engagement illegal maritime entry, 47 International Deployment Group, AFP, 61–8, imaging and geomatics capability, 79 118 income, 107 Gender Strategy, 67 Indonesian National Police, 40, 70, 80 highlights 2014–15, 61 information and communications technology, International Mail Processing and Disruption 90, 100, 102, 118–19 Strategy, 51 Information Management Program, 90 International Missing Children’s Day, 59, 98 Information Steward Network, 90 International Network, AFP, 39, 46 insider trading, 53 International Police Assistance (programme insurance, 101 1.2), 27–8, 61 Integrated Intelligence Model, 82 Interpol, 55 Integrity Framework, AFP, 105 Investigations Standards and Practices Group, 45 Intelligence function, 82–5 Investigators Skills and Qualifications highlights 2014–15, 82 Framework, 45 objective, 82 issue-motivated groups, 56 remodelling of, 82

217 AFP ANNUAL REPORT 2014–15

J methamphetamine detections and seizures, 33, 79 Job Family Model, 110 Operation Alate, 51 Joint Analysis Groups, 83 Operation Arachnid, 84 Joint Anti Child Exploitation Team, 56–7 Operation Koi, 42, 81 Joint Counter Terrorism Teams, 38 MH17 see Arew, Operation Joint Intelligence Groups, 83 Minister for Justice, iii, 96 judicial decisions, 105 Ministerial Directions, 9 Jupiter, Program, 32, 106 ministerial support, 96 K missing persons, 57, 59 Keenan, the Hon Michael, iii Mobile Phone Location (MoLI) Push solution, Kent Internet Risk Assessment Tool, 57 118 key performance indicators, 18–20 money laundering, 25, 43–4, 89 key results 2014–15, 5 N Koi, Operation, 25, 42, 81 NAIDOC Week activities, 112 L National Anti-Gangs Squad, 45 law enforcement liaison, 96 National Association of Testing Authorities, 79 legal support and advice, 87–8 National Australian Built Environment Rating System, 102 legislative framework, 8 National Canine Program, AFP, 32 legislative reforms, 94, 96, 97 National Child Offender System, 86 Leith, Operation, 53 National Child Protection Week, 98 Lessons Management System, 61 National Cyber Forensics and Training Alliance, Liaison Officers, AFP, 74 US, 55 Lindt Cafe siege, 40, 82 National Disruption Group, 35, 38 list of requirements, 193–196 National Drug Precursor Risk Assessment Capability, 79 M National Forensic Rapid Lab, 79, 81 mail seizures, 51 National Ice Taskforce, 95 Malaysia Airlines flight MH17see Arew, National Identity Fraud Awareness Week, 98 Operation National Library, AFP, 117 Management of Serious Crime program, 115 National Media Team, AFP, 98 Martin Place siege, 18, 40, 86 National Missing Persons Coordination match fixing, sports, 85 Centre, 59 media engagement, 98 National Missing Persons Week, 98 Mekim Senis see Project Mekim Senis National Police Information Assessment Centre, 74

218 Index

National Policing (outcome 1), 18–28 Blare, 53 highlights 2014–15, 18 Boscobel, 44 National Reconciliation Week activities, 112 Castrum, 36 national security, 83 Koi, 25, 42, 81 National Security Committee of Cabinet, Leith, 53 advice to, 95 Niro, 57 National Security Hotline reports, 87 Rising, 36–7 National Witness Protection Program annual Zanella, 43 report, 203–8 Operations Centres, 32 Nauru Police Force Police Capability Program, 64 Operations Coordination Centre, AFP, 86–7, 118 Netherlands, 25 Operations Support function, 86–91, 100, new facilities, 32, 81, 106 101–2 Niro, Operation, 57 highlights 2014–15, 86 Norfolk Island community policing, 65, 95 objective, 86 Northern Territory Child Abuse Taskforce, 49 Organisational Health Program, 114 notifiable incidents, 114 organisational structure, 15 O outcomes, 11–12, 191–2 observer placements, Papua New Guinea, 68 outlook for 2015–16, 4 OECD Working Group on Bribery, 52 outposted staff, 186 offices, AFP, iv overseas conflicts, 35 online gaming, 58 P online safety, 57, 58 P3M3 Assessment, 90 online training courses, 117 Pacific Police Development Program – Operation Bring Them Home, 66 Regional, 64–5 Operation Sovereign Borders, 47, 95 Pacific Transnational Crime Network, 46 operational committees, 99 Papua New Guinea – Australia Policing Partnership, 61–2 operations parliamentary committees, 96–7 Alastria, 56 partnerships and collaboration, domestic, Alate, 51 38–40, 96 Amberd, 36 achievements 2014–15, 5 Appleby, 36 counter terrorism, 37 Arachnid, 84 forensic capability, 80–1 Arew, 48, 83, 118 fraud and anti-corruption, 52 Azoic, 25, 42 human trafficking, 49

219 AFP ANNUAL REPORT 2014–15

insider trading, 53 Protection function, 69–75 intelligence, 83 highlights 2014–15, 69 serious and organised crime, 41–2, 44–5 objective, 70 see also international collaboration; regional performance against KPIs and deliverables, engagement 20, 21, 24–5 peace support activities, 65 Protection Liaison, AFP, 71–2 people smuggling, 47 Public Governance, Performance and Accountability Act 2013 (Cth), 100, 106 performance bonuses, 181 performance monitoring, 100 R performance overview, 18–29 recruitment, 4, 98, 105, 113 performance report recycling, 102 operations, 29–75 Regional Assistance Mission to Solomon support, 78–90 Islands, 63 Philippines, 57 regional engagement, 40, 46, 61–6, 80 Philippines National Police, 40 rehabilitation, 114 Platypus Magazine, 98 reporting structure, 11–12 Polaris Joint Waterfront Taskforce, 84 resources for outcomes, 189, 191–2 police development missions, overseas, 59, responsible Minister, iii 61–5 revenue, 107 evaluation, 66–7 Rising, Operation, 36–7 Project Mekim Senis, 68 risk management, 101 Portfolio Budget Statements, 4 role and functions, 8 Portfolio Management Office, AFP, 90 Royal Commission into Institutional precursors, border controlled, 51 Responses to Child Sexual Abuse, 83 Prevention and Strategic Initiatives Team, 57–9 Royal Malaysia Police, 40 Prime Minister’s residence, 71 Royal Papua New Guinea Constabulary, 68 principal locations, iv Royal Solomon Islands Police Force, 61 Privacy Act 1988 (Cth), 88, 101 Royal Thai Police, 40 proceeds of crime, 33, 41–4, 89 S Proceeds of Crime Litigation function, 88–9 Samoa–Australia Police Partnership, 63 procurement, 107–8 Saturn, Program, 110, 113 professional development, 45, 49, 105, 114–17 search and rescue operations, 65 professional standards, 105 secondments, 52, 55, 83, 186 programmes, 11–12 Security branch, AFP, 89–90 Project Mekim Senis, 68 senior executive remuneration, 181 PROMIS system replacement, 90

220 Index

serious and organised crime see Crime surveillance devices, 60 Program, AFP surveys service delivery improvements, 106 airport consumer confidence, 24 shortened forms, 209–10 business satisfaction, 23–4 small business procurement, 107–8 staff, 110 social media, 97 Syria–Iraq conflict, 35 soil and pollen analysis, 79 Solomon Islands general election, 63, 66 T special events see Anzac Day Taskforce Trident, 44 commemorations, security for; Asian taxation fraud, 44 Football Cup; Cricket World Cup; G20 Leaders’ Summit tenders, 107–8 Specialist Response Group, AFP, 66 Terrorism Financing Investigations Unit, 38 Spectrum, Program, 87, 90 terrorism prevention, 25, 35–40 sporting events, 85 see also Asian Football AFP operations, 36–7 Cup; Cricket World Cup forensic capability enhancements, 79 staff, 110–17, 182 intelligence capability, 83 diversity, 111 review of arrangements, 40 gender, 182 ThinkUKnow program, 58–9 length of service, 183–4 threat and risk assessments, 90 locations, 182 Timor-Leste Police Development Program, 62 outposting, 186 Tonga Police Development Program, 63 overview, 110 training programs and presentations, 49, 61, recruitment, 113 67 redundancies, 111 cyber safety, 58–9 security, 89–90 diversity awareness, 112 statistics, 179–88 international, 61, 64–5, 80 survey, 110 officer and investigator skills, 45, 114–17 sworn and unsworn, 179–80, 182–13, 185, professional standards, 105 187–8 travelling child sex offenders, 46, 56 training and development, 114–17 Tropical Cyclone Pam, 61 stakeholder engagement, 23–4, 88 trusted insiders, 32, 34 stored communications, 60 Twitter, 97 Strategic Communications Team, AFP, 98 Strategic Leaders’ Group, 13 strategic policy development, 95–6 strategic priorities, 9–10

221 AFP ANNUAL REPORT 2014–15

U Ukraine, 25, 48, 66, 83 Uniform Protection, 25, 71–5 United Nations International Conference on Small Island Developing States, 63 United Nations Office on Drugs and Crime, 65 United Nations peacekeeping resolution, 61 United Nations Security Council, 95

V Vanuatu–Australia Police Project, 64 visiting dignitaries, protection for, 69–70, 72–4, 95

W waterfront task forces, 44, 84 weapons, prohibited, 34 work health and safety, 113, 114 workforce planning, 110 workshops, 46, 49, 80, 88

Y YouTube, 97

Z Zanella, Operation, 43

222