Library: Departments of Premier & Cabinet v Treasury & Finance Level 5, 1 Macarthur Street East Melbourne Victoria 3002 DX 210759 Ph: 03 9651 5660 Fax: 03 9651 5659 Email: library@dtf vic.gov.au luiC^i'T1^-
IM Department of Treasury and Finance Annual Report 1997/98 Published by The Department of Treasury and Finance - ' - • © State of Victoria 1998
This book is copynght No part may be reproduced by any process except m accordance with the provisions of the Copynght Act
Address enquiries to ' .
Ms Antoinette Cameron ~ ( 3rd Floor . * 1 Treasury Place ' „ Melbourne 3002 ' , Telephone (03) 96512213 • > ' , . T •"J" ISSN 13251775 ' ' Published October 1998 ' Department of Treasury and Finance 1 Treasury Place Melbourne Victoria 3002 Telephone: (03) 9651 5111 Facsimile: (03) 6954 7215 DTS 753 DX21 Victoria
The Honourable Alan Stockdale MLA The Honourable Roger M Hallam MLC Treasurer Minister for Finance Minister for Information Technology and Multimedia Minister for Gaming
1 Treasury Place MELBOURNE VIC 3002
Dear Ministers
I am pleased to provide you with the annual report of the Department of Treasury and Finance for the year ending 30 June 1998, prepared in accordance with Section 45 of the Financial Management Act 1994.
1997-98 was a year of very significant achievement for the Department of Treasury and Finance, with a number of long-term strategic objectives being met.
A cash budget surplus was achieved for the fourth successive year and the strengthened State finances provided scope in the April 1998 Budget not only for the Government to increase spending in priority areas but also to further ease the tax burden. Public sector net debt was reduced by a further $3.2 billion through the year. This was assisted by the successful sales of Victoria's electricity transmission entity, PowerNet Victoria, and the electricity generator, Southern Hydro Limited. Competition reforms delivered tangible benefits to the community in the form of lower water and electricity charges. 1998 also saw the introduction of the first output-based accrual Budget for the State and the first fully audited set of whole-of-government accounts.
These achievements and the overall financial performance of the Government received independent recognition in April 1998 with the upgrading of Victoria's credit rating to triple-A. Worldwide, only three other sovereign or sub-national jurisdictions have ever regained a lost triple-A rating.
These achievements would not have been possible without your leadership through the year, and the day-in day-out commitment of the Department's staff. In particular, I would like to acknowledge the contribution made by Dr Mike Vertigan, who retired as Secretary of the Department in March 1998.
Yours sincerely
LàbRAKïï » i>ir
2 o DEC 2005 Ian Little Secretary Level 5, 1 Macarthur Street East Melbourne Vic 3002
Victoria ON THE MOVE
Highlights of 1997-98 2
About the Department of Treasury and Finance
Corporate objectives and results
Tax reform
Financial management reform
Gas industry reform
Sale of electricity assets
Reform of the provision of public sector infrastructure and services
Transport reform
Achieving excellence in our core central/specialist agency activities
Internal priorities
Financial statements
Statement of financial position
Operating statement
Statement of cash flows
Notes to and forming part of the Financial Statements
Directory
Acts administered
Regulatory and legislative changes
Information available on request & compliance index
Freedom of Information
Workforce data
Consultants engaged
Building Act compliance
Boards and Committees
Overseas visits
Publications
Promotional activities and presentations made by the Department
Functions and services of the Department
Progress in implementing National Competition Policy
Performance against 1997-98 output targets specified in the State Budget 'Prudent financial management has delivered sound
finances, and these sound finances can now deliver í realand substantial improvements in the services
Government provides to people.'
The Honourable Alan Stockdale MLA, Treasurer, Minister for Information Technology and Multimedia.
1997-98 was a watershed year with the achievement of most of the
Government's headline long-term targets that were established to address the
State's financial crisis in the early 1990s. The significant turnaround in Victoria's
economic and financial position and the benefits of the Government's reform
program were highlighted by the upgrade of the State's credit rating to triple-A
during the year. The Department has been a major contributor to the Victorian Net interstate migration loss from Victoria (persons) Government's achievements in these areas.
The highlights of the year were:
• Economic activity. Real economic growth was estimated at 3.5 per cent in
1997-98. Victorian trend employment grew by 60 000. Resources are being llllllllllllllln. attracted back to the State, with private business investment 6 per cent higher than in the previous year and net migration losses to other States ceasing.
DEC DEC DEC DEC DEC DEC MARCH • Fiscal position. A budget surplus of $583.6 million (adjusted for privatisation 1992 1993 1994 1995 1996 1997 1998 proceeds) was recorded in 1997-98, the fourth consecutive year in which a
Net interstate migration losses have now ceased. cash surplus has been achieved.
• Contemporary financial management framework. The first fully audited
Annual Financial Statement, delivered in October 1997, and the shift from a
cash to an accrual budget in April 1998, achieved the major outstanding
recommendations of the 1992 Commission of Audit. 'The move to full accrual appropriations in the
1998-99 Budget puts Victoria at the forefront of
financial management reform in Australia. '
Development of State and national taxation reform options. As well as developing options for taxation reforms designed to promote the competitiveness of the Victorian economy, the Department has taken a leading role amongst the States' Treasuries in advocating national taxation reform. The Honourable Roger M Hallam MLC, Minister for Finance, Minister for Gaming. Resource Management. Further rationalisation of Government office accommodation known as the City Precinct Strategic Plan was undertaken, involving upfront Reductions in State taxes. Tax rates were reduced by a capital expenditure of $18 million during 1997-98. The further $132 million in the 1998-99 Budget bringing the program is now on schedule to realise ongoing rental savings State's overall tax burden into closer alignment with the of $22 million per annum. Whole-of-government contracts average of the Australian States. for the leasing and/or purchasing of vehicles, electricity, Reductions in utility charges. The Winter Power Bonus, fuel and software were negotiated by the Department. announced in February 1998, will give electricity customers who do not yet have a choice of supplier (i.e. households Victorian Public Sector Net Debt and Credit Rating* and small business) a $60 reduction in their winter 'Standard Et Poors electricity bills for the three years to 2000. In addition, from January 1998, water charges are being reduced by an average of 18 per cent for residential properties.
Victoria's return to a triple-A rating. On 22 April 1998, Standard and Poor's announced an upgrade in Victoria's long-term, local currency credit rating to triple-A.
Worldwide, only three sovereign or sub-national 1990 1991 1992 1993 1994 1995 1996 1997 1998 jurisdictions have ever regained a lost triple-A rating. As at 30 June Victoria's upgrade to a triple-A credit rating in April 1998 provided Further sale of electricity assets. The Department independent recognition of the strength of the State's finances managed the sale of Victoria's electricity transmission and its economy. entity, PowerNet Victoria, for a sale price of $2,555 billion and the sale of the electricity generator. Southern Hydro Business investment (% of spending) Limited, for $391 million.
1 Reductions in public debt. Victoria's public sector net debt has fallen by two-thirds from $32 billion as at 30 June 1992 to $11 billion by 30 June 1998.
1 Transport reform. In August 1997, the Government announced details of its plans to build on the recent reforms and privatise the Public Transport Corporation's train and tram services, with March 1999 the target date for completion DEC DEC DEC DEC DEC DEC of sales. The V/Line Freight sales process is under way. 1992 1993 1994 1995 1996 1997 Business investment has been above its long-term average for • Water reform. The Department coordinated the the last three years. metropolitan water reform debt and equity restructuring package that took effect in January 1998. h\ mi II • ri'tl if A íEi i u i vA 11 In I
CO) :
- L.J ^—J U
A better future for all Victorians. The Department aims to make Victoria a better place in which to live, to invest and to do business. It is working towards this by delivering a more efficient and effective public sector which provides value for the taxpayer's dollar, and by improving the systems and machinery of Government.
The Senior Executive Group I ir^ )' i U J l\ 1 L to R (back) LAJ Mission s V— V LJ \ fiori Paice, Deputy Secretary. Financial Management John Perham, Deputy Secretary, Privatisation and To provide leadership in economic, financial and resource management. Industry Reform, Neil Taylor, Executive Director, Strategic Management and Frank King, Deputy Secretary, Budget and Resource Management. The Department is the key provider of economic, financial and resource
L to R (sitting) management policy advice to Government and provides whole-of-govemment Chloe Munro, Deputy Secretary, Energy Projects management services in these areas. In addition, it is directly responsible for Ian Utile, Secretary and Glenn Appleyard, Deputy implementation of significant microeconomic reform initiatives across the Secretary, Economic and Financial Policy public sector.
07
Achieve excellence in our core central/specialist agency activities;
Create an environment where the momentum of public sector reform is locked-in and self-sustaining;
Generate new major reform recommendations to Government; and
Implement major Government policy decisions relevant to the portfolio.
The restoration of Victoria's public finances has resulted in a modest broadening in the Department's priorities away from reducing debt and deficits, towards locking-in the benefits of past reforms and facilitating economic reform. The organisation • Victorian Casino and Gaming Authority;
The Department of Treasury and Finance is headed by Mr Ian • Office of the Chief Electrical Inspector; Little, the Departmental Secretary, who reports to the • Office of Gas Safety; and Honourable Alan Stockdale MLA, Treasurer, and the Honourable Roger M Hallam MLC, Minister for Finance and • Office of the Regulator-General. Minister for Gaming. (The Treasurer is also Minister for The reporting of results relative to objectives in the unaudited Information Technology and Multimedia and is supported in section of this annual report focuses primarily on the first that role by the Department of State Development.) three entities. Information on the activities of the State
As at 30 June 1998, there were 1026 staff located at 1 Revenue Office, the Victorian Casino and Gaming Authority, Treasury Place, 1 Macarthur Street, 35 Spring Street and 505 the Office of the Regulator-General, the Office of Gas Safety 1 and the Office of the Chief Electrical Inspector is provided in Little Collins Street, Melbourne." annual reports produced by each of these organisations. The portfolio of Treasury and Finance The audited financial information in this report pertains only to For the purpose of 1997-98 Budget appropriations, the first five entities. In relation to the Victorian Casino and the 'Department' comprised the: Gaming Authority, the Office of the Chief Electrical Inspector and the Office of Gas Safety, only transfer payments from the • Department of Treasury and Finance; Department to these entities are included in the financial • Victorian Government Purchasing Board; information.
• Ministerial Offices of the Treasurer, Minister for Finance The portfolio also includes a wide variety of statutory and Gaming; authorities and government business enterprises which are not budget funded, but are accountable to one of the portfolio • State Revenue Office; Ministers. This report does not refer to the activities of these • Corporate Resource Agency; authorities or enterprises.
Minister for Finance The Treasurer Minister for Gaming
Secretary
Outsourcing & Contract Management Business Services Planning 5 Development Taxpayer Relations Communications Policy & Review Business Services Compliance Accounting Services
Budget Resources Economic Policy & Financial Reform Policy Business Management Unit Energy Policy Management Strategic Consulting Services Budget Reform Strategy GBE Reform Financial Accounting & Unit IT&T Strategy Budget Coordination & Taxation & Revenue Policy Water Reform Reporting Project Management Reform Executive Services Research Intergovernment Financial Transport Reform Unit Financial Management & Privatisation Human Resource Strategy Relations System Budget Strategy & Business Enterprises Resources Planning Management Finance & Liability Project & Outsourcing Policy Solicitor to Treasury & Management Portfolio Sector A Development Management Reform Finance Portfolio Sector B Risk & Insurance Program Directorate Management Public Sector Employment Victorian Government Relations Property Group Office of Government Purchasing & Procurement & Vehicle Services Victorian Government Accommodation Group This figure includes staff in the State Revenue Office and the Corporate Resource Agency. J - The key objectives for the Department of Treasury and Finance in 1997-98 were to: • Achieve excellence In our core central/specialist agency activities; O 0 • Create an environment where the momentum of public sector reform is locked-in and self-sustaining; in' • Generate new major reform recommendations to Government; and • Implement major Government policy decisions relevant to the portfolio. f v 'lhe Department considered at the beginning of 1997 that to achieve these Q LJ corporate objectives, the work effort for 1997-98 would be focused on the key deliverables listed below. As the year progressed, key deliverables 2(a) and 2(b) / ^ ^ vyere merged, and public transport reform was added to the list after the government's August 1997 decision to further reform and privatise the Public Transport Corporation. Key deliverables for 1997-98: 1. Tax reform; 2a Output-based accrual budget; 2b Financial management reform; 3. Gas industry reform; 4. Sale of electricity assets;' 5. Reform of the provision of public sector infrastructure and services; 6. Public transport reform; and 7. Achieving excellence in out core central/specialist agency activities. The following provides a summary of the Department's achievements against these seven key deliverables. 1. Tax reform The Department has played a major role in taxation reform both at the national level and through the introduction of State taxation reforms. National taxation reform The Department made a significant contribution to the development of a common position amongst State Treasuries on national tax reform. This has complemented the Victorian Staff from Taxation and Revenue Policy Branch Government's lead role, which culminated in an agreed L to H- Gayle King, Aziz Majid, States' position on national tax reform at the pre-Premiers' Phillip Flynn and Claire Thomas IDirectorI Conference Leaders Forum in March 1998. State taxation reform initiatives Victoria (the Department) also played a leading role in securing safety net arrangements for the States to protect Major reductions in State taxation have occurred since them from very large revenue losses following the High Court early 1997. decision on 5 August 1997 invalidating New South Wales' A $209 million reduction in payroll and fuel taxes, together tobacco franchise fees. This decision left the States and with an exemption from mortgage duty for re-financing of Territories with little option but to cease collecting business business loans and the abolition of deed duty was announced franchise fees, not only on tobacco, but also on liquor and in the April 1997 Budget. A further $132 million reduction in petroleum products. Under the safety net arrangements, the payroll taxes and conveyance duties was announced in the Commonwealth is collecting equivalent revenues from taxes April 1998 Budget. In addition, major land tax reform was on the same products and returning these amounts to the announced in Spring 1997. It was effective from the 1998 States. The safety net arrangements were underpinned by an land tax year at an estimated cost of a further $33 million. Interjurisdictional Taxation Agreement finalised in advance of the High Court decision. That Agreement also provided The Department estimates that the latest reductions bring protection for State revenues threatened by a separate High Victoria's tax burden to below that of New South Wales and Court decision throwing doubt on the validity of State taxes to around 3.9 per cent above the Australian average. levied at Commonwealth places. This compares with a peak of 14.8 per cent above the Australian average in 1993-94. Victorian taxes relative to other States 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 • Compared with NSW average • Compared with Australian average After being more than 12% in excess of Australian and New South Wales averages, by 1998-99 Victorian taxes will be 1.7% below New South Wales and only 3.9% above the Australian average. 2. Financial management reform, including an 3. Gas industry reform output-based accrual budget The Department has completed the restructuring of the gas Public sector financial reforms have been proceeding since industry and commenced preparation for privatisation. An 1992. In 1997-98, the program accelerated dramatically. innovative wholesale market and transportation access A number of major initiatives were implemented which have regime has been designed to maximise the potential for introduced a contemporary financial management framework competition. The objective of these reforms is to deliver the to the Victorian public sector. lowest sustainable prices and continued high standards of These initiatives included: service to all Victorian consumers. • The Financial Management (Amendment) Act 1998, Key developments during 1997-98 included: passed by Parliament in April 1998, providing the • Gas access arrangements and market rules were lodged accounting and management framework for accrual and with the Australian Competition Consumer Commission output-based budget; (ACCC) and the Office of the Regulator-General (ORG) in • During the year, an accrual-based accounting system was November 1997. Draft decisions were released in late May intoduced into all departments with effect from July 1998; and public consultation has commenced. The Treasurer has and announced deferral of the introduction of competition and • Victoria's first accrual, output-based budget was delivered the privatisation process pending final decisions from the on 21 April 1998. This budget was restructured around ACCC and ORG; outputs rather than on inputs. Consistent with an accrual • The three paired gas distributor and retailer companies were approach, this budget also identified the full cost of legally established and Transmission Pipelines Australia Pty producing these outputs. Ltd (TPA) was corporatised on 11 December 1997; A number of other significant projects completed during • Victorian Energy Networks Corporation (VENCorp) was 1997-98 included: created on 15 December 1997 to develop and operate the • Delivery of the first fully audited Annual Financial wholesale gas market. VENCorp will also have responsibility Statement in October 1997; for the electricity system roles of Victorian Power Exchange (VPX) that are not transferred to NEMMCO • A new accrual and output-based Forward Estimates (the national market manager); and system which enables the electronic exchange of budget estimates and performance data between departments • The proposed sale of the three paired gas distributor and and the Department of Treasury and Finance; retailer businesses and Transmission Pipelines Australia • A revised Chart of Accounts structured to simplify the (TPA) was announced in March 1998. independent transfer and reconciliation of accounting data; • A new cash monitoring system designed to meet cash forecasting and monitoring requirements; and • A Data Exchange facility which supports the transfer of electronic data (especially accrual and output information) between the Department and agencies. Staff from the Financial Management Division LtoR- Nick Daicos. Director, Business Management Unit, Vanessa Martin and Warren Coriett 4. Sale of electricity assets The program of restructuring and privatisation of the State's electricity industry into competing generation and distribution businesses is almost complete. These reforms have resulted in substantial benefits for consumers and businesses in terms of lower prices and improved service and reliability. On 17 February 1998 the Government announced a Winter Energy Bonus such that electricity customers who do not yet have a choice of supplier (i.e. households and small business) will receive, on top of previously legislated price reductions and any concessions for which they are eligible, a $60 reduction on their winter electricity bill for each of the three years to 2000. During the year, the Department managed the sale of Victoria's electricity transmission entity, PowerNet Victoria, for a sale price of $2,555 billion (finalised in Novemben l 997) and the sale of the electricity generator, Southern Hydro : Limited, for $391 million (in December 1997). Staff from the Energy Projects Division: Commencement of the full National Electricity Market has Top - L to R- Linda McMillan, Mark Feather. Mohan De Mel and Jennifer Clark been delayed primarily due to systems development Below - Rohan Madders problems in NEMMCO. Interstate trade continues under the interim 'NEM1' arrangements. Agreements have been reached to improve the profitability of electricity supply arrangements for the aluminium smelters through (a) supply of up to 100MW additional power and (b) interruptibility provisions. These, and measures taken during 1997, have enabled budget payments of approximately $200 million per year for the flexible tariff arrangements to be eliminated from 1998-99 onwards. Major private sector infrastructure projects The Department contributed to a number of private sector infrastructure projects by identifying and assessing risks and providing advice as to how to allocate these risks best between the State and private sector proponents. While the State assumed certain project responsibilities, most risks and exposures have been transferred to the private sector. Projects during the year included: a waste water treatment plant for Castlemaine and reticulation for Maldon; water treatment projects for Bendigo, Castlemaine and Kyneton, 5. Reform of the provision of public sector Ballarat and neighbouring towns, Ararat, Stawell and Halls infrastructure and services Gap. Additional projects to which major contributions have been made include the City Link project, the Exhibition Street Water reform extension, the Latrobe Regional Hospital and the Docklands The Department coordinated the metropolitan water reform project. Contracts for the construction of the Docklands debt and equity restructuring package that was announced in stadium and the provision of trunk infrastructure throughout October 1997 and implemented on 1 January 1998. the Docklands were signed during the year. Under this package, the Government injected $850 million Other reform into metropolitan urban water authorities as a debt/equity restructure, resulting in over 85 per cent of domestic Other infrastructure reforms during the year included: properties benefiting from an average 18 per cent reduction Aluminium reform: In line with the Government's policy to end in bills. Non-domestic water bills have also been significantly the State's involvement in the aluminium industry, the sale of reduced. Some $410 million has been injected into non- Aluminium Smelters of Victoria Pty Ltd (Aluvic) commenced in metropolitan urban water authorities (NMUs) to assist them May 1998 and was successfully concluded three months later. to improve substantially the quality and security of fresh water supply and the environmental effectiveness of waste Victorian Plantations Corporation: The Government announced water disposal. in 1998 that it would privatise the Victorian Plantations Corporation (VPC) via a trade sale. Since it was restructured in 1993, the VPC has operated as a commercially focused business, increasing its net profit before tax and its operating revenue in every year. The Government is confident that the sale will stimulate a range of internationally competitive businesses for the State which are both sustainable and profitable. Sale of the VPC will be completed by early 1999. Port reform: The port reform program concluded during 1997-98 with the sale of Melbourne Port Services to Skilled Engineering Ltd for $8 million. Operational management of Staff from the Water Reform Branch the Port of Hastings was contracted out in July for a period of LtoR- Caroline Curran and Richard Clarke, Director 10 years to TNT Port Logistics Ltd. Contracting/outsourcing promotion: The Department stimulates the identification of outsourcing opportunities and helps departments to implement these reforms across the Victorian Public Service. During the year a survey was compiled indicating that the benefits gained from outsourcing exceed 25 per cent per year. 6. Transport reform 7. Achieving excellence in our core central/specialist agency activities In August 1997, the Government announced details of its plans to build on recent reforms and privatise the Public In 1997-98 the Department's achievements in terms of its Transport Corporation (PTC). The Government's aim in core activities contributed significantly to the Government's reforming public transport is to provide a world's best- overall objectives. Key examples include the upgrade by practice service that meets the needs of the travelling public Standard & Poor's, in April 1998, of Victoria's credit rating to at a cost that is affordable to taxpayers. triple-A, and further improvement in the State's financial position beyond budgeted expectations. A budget surplus of The PTC has been restructured so that it now comprises two $583.6 million (adjusted for privatisation proceeds) was metropolitan train services (Hillside and Bayside) and two recorded in 1997-98, the fourth consecutive year in which a tram companies (Yarra and Swanston). These businesses, as cash surplus has been achieved. well as the V/Line Passenger network, are being privatised by way of franchise contracts. The Department's results during the year in relation to its fourth objective, achieving excellence in our core The franchising process involves the Government entering central/specialist agency activities, are indicated below for into fixed-term contracts for rail and tram operations with the each output produced for our customers. Whereas previously, private sector. The Government then buys back services on the Department grouped its outputs along traditional behalf of the public. The Government specifies service levels hierarchical or organisational lines, in 1997-98 it was decided and regulates annual fare increases and concessions and, in to group outputs into like activities or processes. The new return, the franchisee receives a pre-determined level of output groups cross divisional lines and provide a clearer financial support from the Government. focus on the services delivered by the Department from a Franchises for each of the five passenger businesses will be customer perspective. Appendix 15 provides more detail on awarded on a competitive basis over the next six months. performance against key output targets. The V/Line Freight sales process is under way. In addition to Strategic policy advice the privatisation of PTC passenger services, privatisation of V/Line Freight Ltd will give Victoria's rail freight industry a As part of its core activities, the Department provides major opportunity to expand and become more competitive. objective, timely and relevant advice to the Treasurer, the Minister for Finance and appropriate Parliamentary and Cabinet Committees on economic, financial and budgetary issues. This specifically includes provision of advice to support government policy formulation in areas such as financial management, long-term economic and financial strategy, intergovernmental relations, taxation, employee relations, industry and GBE reform, and budget formulation. In line with the shift in the nature of the demand for its services, the Department is now seeking to take a broader, pro-active and longer-term approach when providing strategic The Treasurer, Alan Stockdale MLA, with staff from the policy advice to the Government. This includes the Transport Reform Unit LtoR- Tim Arbuckle, Director, John Jamie, identification of emerging opportunities and risks. The Honourable Alan Stockdale MIA and Shannon Cotter Strategic policy advice provided during the year included: Financial management services • Ongoing economic and fiscal strategy advice; The Department provides financial management services to the Government in a range of areas including financial accounting, • Development, with other States, of a common States' reporting and control, liability management, and monitoring of position on priorities for reform of State taxes and the financial performance of government departments, Commonwealth/State finances as part of national tax reform agencies and corporatised government business enterprises. subsequently conveyed by Premiers to the Prime Minister; As part of ongoing liability management, the continued use of • Development and implementation of an accrual output- privatisation proceeds and budget surpluses for reduction of based management system; State debt and other liabilities has enabled further significant • Development of proposals for reform of land tax for the reductions in Victoria's public sector liabilities, and in its debt 1998 land tax year; and debt servicing ratios during 1997-98. Victoria's public sector net debt has fallen by 66 per cent from $32 billion at • Advice on measures to protect State revenues, past and 30 June 1992 to $11 billion by 30 June 1998. future, from the effects of High Court decisions on business franchise fees and on the application of State The Department is responsible for reviewing corporate plans taxes to activities conducted at Commonwealth places; and monitoring the performance of some 40 government • Advice on proposed changes to intergovernmental taxation business enterprises (GBEs) on behalf of the Treasurer. arrangements to facilitate public sector reform; and During 1997-98, GBEs paid $786 million in dividends (or $1157 million in total dividends and tax equivalent payments) • Advice to the Treasurer on the impact of developments in to the Consolidated Fund compared with $557 million East Asia on the Victorian economy. forecast in the 1997-98 Budget (or $675 million in total dividends and tax equivalent payments). The aggregate asset Sustainable Budget Balance - A Long Term View value of the GBEs was approximately $25.6 billion at the beginning of the financial year. Sustainable Accrual Operating Balance The full amount of expected Unclaimed Superannuation monies was not collected due to legal disputes and delays in the passage of Commonwealth legislation. Uncollected Sustainable Cash Balance amounts will be received in 1998-99. 1984 1995 1998 1990 1992 1994 1996 1998 2000 -85 -97 -99 -91 -93 -95 -97 -99 -01 The Department has provided strategic policy advice and implemented measures to ensure that the aggregate budget position remains sustainable over the long term. Minister for Finance with staff from the Financial Management Division L to R- Adrian Nye, Director, Policy and Management Reform, Murray Jones, Director. Accounting and Financial Reporting Branch, Ron Paice, Deputy Secretary and The Honourable Roger M. Hallam, MLC, Minister for Finance, Minister for Gaming Stage 2 of trie review of higher education isperamuation National compstfion policy impfementatisi) between the Commonwealth and the States v»as concluded, In 1997-98 th 3 Department contributed :urther to the resuting in a reduction in unfunded superannuation liabilites implementation ;ef the Governmert's responsibilities under of $200 mill on and savings in annual superannuation budget the National Cor petition Policy. Tne Corrpetitive Neutrality ou'leys of $' 5 million. Complaints Un t investigated allegations 6" disadvantage Each year the Department is an active part r ipant n the caused in the private sector by the public ewnership of - Commonwealth Grants process, liaising wrr line agencies n government bcsiiess activities. Tfee year £lso saw the aiscLSsion with the Commonwealth Gcverrneit an Specfi; extension of Vict aria's Commonwealth Tax Equivalent regime Purpose Payments. The Commonwealtii's applicaton of to additional Stae Government businesses, and legislative relativities, as recommended by the Commonweahh Grants amendments to remove statutory exempiens from State : Commission, will mean that Victoria's relativity wil be taxes and charges for nominated GBEs, to satisfy competitive margjinatly lower in 1998-99 than in 1957^98. neutrality princplas. Under the Competition Principles Agreemait, the review of Risk management services legislation that restricts competitisn also cantinued. A As part of its core activities, the Departnentis "esponsiblelor number of Acts ¿are repealed or eformec. For farther the development, communication and compfarce monitorrg information abcutthe activities oi the Coirplaints Unit and : o~ risï management policies appropriate to waricus activities of proceedings of tne legislation review, see Appendix 14. geveinment departments, agencies and business enterprises. An important element of the State's ris< management policy has been the reduction or elimination o" significant contingent liabilities. During 1997-98 contingent liabiliies iwane reduced through settlement of litigation in relation to ;lara= lodged by non-withdrawable shareholders of the Pyramid 3no-jp of Building Societies. D jring the year, the Department also e>anmed the restructuring of various financial commorients to reduce o" eimirate the State's exposure to significant co» tin gent liab lities or commercial risks. A njnber of measures have been implemented to ensure that tie SEC* Shell is able to support its future co'tractua obligations with respect to the Electricity Sippl* Agreements with Ihe Port and and Port Henry alumirtumsnelte's. As a result it has teen possible to cease paynerts fiom the Budget under the Flexible Tariff Deed, thus elimhctirig a significant Budget liability (in the order cf $1.8 till on) admir istered by the Department. Refonti and privatisation services L to R- Sandra Denis, Jianette Gowan, St&wi Tsiferis. Deborah Radford (DisSEr). David Fickling, Xfartiri The Department's major role in developing aid ¡rnpementiag Stokie and Stephen Cmjgrbury Below - Staff from tfrsf^vatisations and Industry reforn» initiatives in areas such as infrastructure, tasation, Reform Directorate firardal management, and risk and rescurcéinanagement LtoR- Teresa Pagliatcfiina Carrubita, Noel Ashby anc Uirraine Langley IDImctef) has made a sgnificant contribution to the Gewemrnent's achievements in these areas. Reform of ttie-5ta:e s utilities has produced efficiency gains and benefits fir bDtn housenolds aid businesses in the form of be£tef prices and service standards (including in electricity ant wster provision). Details on the Department's reform and privatisation activités during the year are provided in previous secfons. Resource management services Victorian Government Property Group The Department is responsible for administering a centralised The Victorian Government Property Group, which assists resource management program involving accommodation, government to optimise the use of its properties, and purchasing and procurement and public sector employee maximise financial returns from their sale, continued with its relations processes. Consistent with the Government's program of disposing of properties no longer required for commitment to increasing service provision contestability operational purposes. During 1997-98, $101.6 million was across the public sector, many of these processes are received from the sale of properties by the Victorian currently being outsourced to external providers. Government Property Group. Government office accommodation Purchasing and procurement During 1997-98, the Department successfully outsourced all 1997-98 saw a range of strategic and procurement of its Victorian Government Accommodation Group (VGAG) contracting activities initiated in the areas of electricity property portfolio services to the private sector. The five-year supply, fuel, discounted health insurance services and whole- contract that commenced on 11 May 1998 offers an of-government software. expanded range of customer services to departmental clients In cooperation with Multimedia Victoria, the Government at reduced cost to the Government. Purchasing Board (VGPB) finalised negotiations with the Under the City Precinct Strategy Plan, 13 major projects were Microsoft Corporation for a whole-of-government software completed within budget at a cost of approximately contract covering base software programs being utilised by $58 million. Fifteen out of 18 Ministers now physically reside departments and agencies. In July 1997, the Treasurer within one block of Parliament House. Several major entered into a $150 million three-year IT leasing facility refurbishments of historic and other core government-owned enabling government departments to access a broad range of building assets were also completed over 1997-98 with sophisticated IT technology. premises now meeting a standard and design which is In July 1997, the Minister for Finance entered into a seven- functional and meets utility and safety requirements. Revenue year agreement with the Commonwealth Bank of Australia of $24 million was generated throughout 1997-98 with for the sale and leaseback of the budget sector vehicle fleet. expired and non-viable government-owned offices being sold Vehicle management services were also contracted out to the off and refurbished premises being relinquished upon expiry private sector generating proceeds of around $177 million. of leases. These initiatives are expected to realise ongoing rental savings of $22 million per annum. Budget production A key responsibility of the Department involves the provision of advisory and support service to the Treasurer and the Budget Expenditure Review Committee of Cabinet on the preparation and production of the State's annual budget documents. The 1998-99 Budget was the first Victorian State Budget to be delivered and appropriated on an output-based accrual accounting basis. The introduction of accrual accounting, and outputs as the basic unit of the Budget, will provide: • Clearer communication of the goods and services (outputs) being funded for the benefit of the community; Staff from Vehicle Management Services LtoR- Alex Andriotis, Des L'Etang, Bob Fairless and • Disclosure of both the full costs of those outputs and the ErroI Mykulak funding requirements for State revenues; • An improved information base for budget decision making by Government focusing on improved value for money in service provision; and • A sound basis for the introduction of greater value for money and consumer choice in providing government outputs. The Office of Gas Safety establishes and maintains control of safety over all gas fuels in their supply, distribution and utilisation. The Office of the Regulator-General acts as the economic regulator of regulated industries to promote competitive conduct, prevent misuse of market powers, facilitate market Staff from the Budget and Resource Management Division LtoR- Lisa Edwards and David Brooks entry and industry efficiency and ensure that users and consumers benefit from competition and efficiency. Ministerial services Further details are provided in the annual reports of these organisations. The Department provides advisory and support services to the Ministers in respect of their statutory and ministerial Taxation management services responsibilities. These services are aimed at achieving continuous improvement in the systems and machinery of The Department is responsible for the taxation management Government. services undertaken by the State Revenue Office (SRO), the major revenue collection agency for the Government of Outputs for the Department during 1997-98 included: Victoria. The Framework Agreement establishes the SRO as a • 33 Bills passed in the Spring 1997 and Autumn service agency within the Department of Treasury. 1998 sessions; The SRO is responsible for: • 86 new Freedom of Information (FOI) requests processed; • Ensuring efficient collection of revenue to fund • 13 FOI requests from the previous year finalised; Government sen/ices; • 5307 Ministerial correspondence and briefing documents • Maximising compliance with taxation laws at minimum processed; and cost to clients and the State Revenue Office; • 388 Parliamentary questions received and processed. • Providing advice on establishing a competitive taxation regime and administrative support framework; and Regulatory services • Ensuring the highest standard of client service to The Department is responsible for a number of regulatory taxpayers. activities conducted by the Victorian Casino and Gaming Further details are provided in the annual report of the State Authority, the Office of the Regulator-General, Office of Gas Revenue Office. Safety and the Office of the Chief Electrical Inspector. The Victorian Casino and Gaming Authority monitors and regulates Victoria's gambling activities to ensure that it is fair, crime free and optimises the benefits for Victorians. The Office of the Chief Electrical Inspector ensures minimum standards for the safety, supply and use of electricity throughout Victoria and the energy efficiency of electrical appliances. Staff from the Resources Planning Branch, responsible for the preparation of the Department's financial statements. LtoR- Joanne Lim, La\tal Chu, Anne Ward, Colin Seedy (Director). Lyn Wakefield and Melissa Te A. Improving Support systems Progress made during the year included: • The IT&T environment was stabilised following problems with the implementation of a major network/desktop upgrade and the introduction of Lotus Notes in 1996-97; and • A number of formal projects have been or are being established to address major whole-of-government improvement programs including Year 2000 Compliance, On-Line 2001 (electronic service delivery). Risk Management, and the Management Reform Program. Year 2000 (Millennium Bug) The Year 2000 Program follows these process phases: The Year 2000 Problem or Millennium Bug has the ability to 1. Management commitment; affect all forms of technology, not only computers or 2. Inventory risk awareness and impact analysis; computer-based systems, but also equipment such as building control systems. Hence, within the Department of 3. Strategic planning and resources allocation; Treasury and Finance, the Year 2000 issue is seen as a 4. Remedial activity and compliance testing; business risk and not simply an IT issue. 5. Contingency planning; and In late 1997, Department of Premier and Cabinet (DPC) and 6. Certification and signoff. the Department of Treasury and Finance (DTF) established a joint Year 2000 program. A Steering Committee consisting of The Department of Treasury and Finance Year 2000 Progress representatives from DPC, DTF and the Corporate Resources is currently within Phase 4 of the process and work has Agency (CRA) oversees the program, providing direction and commenced on Phase 5. assistance to the Project Team. The Minister for Finance and Minister for Gaming and the Treasurer are committed to the importance of the Year 2000 technology issue. Year 2000 Schedule for the Department- Critical Business Description of Critical Business Function Scheduled for System Name Compliance Certification Public Ledger The Public Ledger - general ledger for all public sector entities. 30/10/1998 DXF The Data Exchange Facility (DXF) is an Internet-based data collection system which provides the primary mechanism for exchanging financial information between Victorian Government departments and agencies and the Department of Treasury and Finance (DTF). 30/10/1998 CMS Cash Monitoring System to receive, track and lodge funds with various financial institutions. 30/10/1998 Premises Buildings, security, office technology and life support systems managed or leased by Victorian Government Accommodation Group (VGAG). 30/03/1999 Suppliers of Goods All contracts managed by the Victorian Government Purchasing Board (VGPB) and Services and corporate support services provided by Corporate Resource Agency (CRA) 30/12/1998 Contingency Plan Organisation wide Year 2000 Business Contingency and Resumption Plans. 30/12/1999 C. Improving communication The expansion of the range of seminars and staff forums, and the introduction of a staff consultative committee contributed to an improved departmental internal communication environment during the year. Open Day Open Days provide a forum for the exchange of information on the latest developments throughout the VPS. They also facilitate the internal and external communications of the B. Developing priority and resource allocation Department's own operations. The Department held Open mechanisms Days in November 1997 and June 1998. During the year, Quarterly Strategic Reviews were introduced The November 1997 Open Day focused on 'new ways of by the Senior Executive Group to monitor performance and doing business in government' by launching the Management emerging issues, enabling better priority setting and resource Reform Program (MRP). It highlighted the partnership allocation. The Department recognises that further required between DTF and departments to achieve the MRP organisational improvements are still needed, and 1998-99 objectives. will see a major focus on improving our ability to attract, The June 1998 Open Day focused on the Department's retain and develop quality human resources and achieve efforts in 'driving for a competitive economy' and provided the better alignment of skills to priority emerging business issues. opportunity for the Department to communicate its major In relation to corporate support service improvement, the deliverables for the coming year. Department recognises that the focus on economic, financial and resource management reforms over the past five years has led to a piecemeal approach to organisational change. As a result, a formal Organisational and Service Improvement Strategy has been established which will focus on improving and leveraging of existing systems, policies and processes. The Australian Quality Council self-assessment program is being employed to promote a continuous improvement culture for corporate services. Open Day, June 1998 Presentation on Contestability by John Perham, Deputy Secretary, Privatisations and Industry Reform r > Statement of Financial Position As at 30 June 1998 1998 1997 Notes l$W0) ($W0) Current Assets Cash 13 14,783 33,678 Trust Funds 14 29,217 27,459 Investments 14 1,952 3,713 Inventories 15 608 60 Receivables 16 2,663 4,834 Prepayments 914 1,023 Surplus Land for Resale 21,541 30,020 Total Current Assets 71,678 100,787 Non Current Assets Receivables 16 - 150 Investments 17 257.893 257,893 Land and Buildings 18 290,633 165,748 Plant and Equipment 19 223,121 22,100 Total Non Current Assets 771,647 445,891 Total Assets 843,325 546,678 Current Liabilities Funds Held in Trust 14 31,169 31,172 Creditors and Accruals 20 8,679 19,051 Lease Liabilities 21 35,596 6,325 Provision for Employee Entitlements 22 4,733 4,366 Unfunded Superannuation 23 906,131 556,478 Other 209 - Total Current Liabilities 986,517 617,392 Non Current Liabilities Lease Liabilities 21 307,789 38,970 Provision for Employee Entitlements 22 9,946 9,438 Unfunded Superannuation Liability 23 13,458,569 14,024,922 Total Non Current Liabilities 13,776,304 14,073,330 Total Liabilities 14,762,821 14,690,722 Net Assets/(Liabilities) (13,919,496) (14,144,044) Equity Accumulated Deficit 24 (13,948,789) (14,163,674) Asset Revaluation Reserve 24 29,293 19,630 Total Equity (13,919,496) (14,144,044) The Statement of Financial Position should be read in conjunction with the accompanying notes. Operating Statement for the Year Ended 30 June 1998 1998 1997 Notes l$'000) IT000) Operating Revenue User Charges 10 103,552 116,412 Interest 12,226 13,614 Resources Received Free of Charge 6,148 7,135 Other 11 70,068 66,113 Total Operating Revenue 191,994 203,274 Government Revenue Special Appropriations 29 478,233 422,868 Current Appropriations 29 766,818 540,791 Capital Appropriations 29 36,557 141,628 Appropriations of Other Departments 40 Receipts Forwarded to Consolidated Fund (94,840) (89,836) Total Government Revenue 1,186,768 1,015,491 Total Revenues 1,378,762 1,218,765 Operating Expenses Employee Costs 4 62,004 62,649 Supplies and Services 5 201,108 206,177 Depreciation and Amortisation 6 22,903 22,430 Superannuation 7 573,258 477,186 Resources Provided Free of Charge 8 13,159 30,257 Other 9 26,878 28,616 Total Operating Expenses 899,310 827,315 Net Surplus Before Abnormal Items 479,452 391,450 Abnormal Loss 12 (153,000) (300,500) Increase in Net Assets 24 326,452 90,950 The Operating Statement should be read in conjunction with the accompanying notes. Statement nf Cash Flows for the Year Ended 30 June 1998 1998 1997 Notes Cash Flows From Operating Activities Payments Employee Costs (61,129) (61,667) Supplies and Services (211,488) (213,825) Superannuation (1,063,202) (477,322) Other (34,167) (37,673) Total Payments (1,369,986) (790,487) Receipts User Charges 105,719 109,869 Interest 12,380 12,245 Other 62,238 38,807 Total Receipts 180,337 160,921 Cash Flows From Government Special Appropriations 29 478,233 422,868 Current Appropriations 29 766,818 540,791 Capital Appropriations 29 36,557 141,628 Appropriations of Other Departments - 40 Receipts Forwarded to Consolidated Fund (94,840) (89,836) Total Cash Flows from Government 1,186,768 1,015,491 Net Cash Flows From/(Used in) Operating Activities 25 (2,881) 385,925 Cash Flows From Investing Activities Payments Land and Buildings (24,205) (47,525) Plant and Equipment (7,970) (16,458) Investments • (9,941) Return of Capital (3,633) (3,474) Repayment of Lease Liabilities (16,468) (326,878) Total Payments (52,276) (404,276) Receipts Investments 3 - Disposal of Assets 36,259 26,572 Total Receipts 36,262 26,572 Net Cash From/(Used in) Investing Activities (16,014) (377,704) Net lncrease/(Decrease) in Cash Held (18,895) 8,221 Cash at the Beginning of the Financial Year 33,678 25,457 Cash at the End of the Financial Year 13 14,783 33,678 The Statement of Cash Flows should be read in conjunction with the accompanying notes. of the Financial Statements for the year ended 30 June 1998 1. Summary of significant accounting policies (a) Basis of Accounting The Financial Statements have been prepared on the accrual basis of accounting in accordance with the Financial Management Act 1994, Accounting and Financial Reporting Bulletins and other accounting policy papers issued under the Direction of the Minister for Finance under the Financial Management Act 1994, applicable Australian Accounting Standards and other mandatory reporting requirements (Urgent Issues Group Consensus View). Except for certain assets which are at current cost valuation and long service leave liabilities which are measured at the present value of expected future payments, the Financial Statements have been prepared on an historical cost basis. (b) The Reporting Entity The following entities/business units have been aggregated in these Financial Statements: • State Revenue Office • State Government Vehicle Pool • Corporate Resource Agency The following entities which are part of the Department's portfolio, prepare separate annual Financial Statements and therefore are not included in the Department's Financial Statements: • Office of the Regulator-General • Office of the Chief Electrical Inspector • Office of Gas Safety • Victorian Casino and Gaming Authority (c) Administered Resources The Department administers certain resources on behalf of the Victorian Government, for example, taxes raised by the State Revenue Office. It is accountable for the transactions involving those administered resources, but does not have the discretion to deploy the resources for the achievement of the Department's objectives. The accrual basis of accounting has been used in accounting for administered resources. Transactions and balances relating to these administered resources are not recognised as Departmental revenues, expenses, assets or liabilities, but are disclosed in the Financial Statements at Note 3. (d) Trust Funds The Department has received monies in a trustee capacity for various trusts as set out in Note 14. As these trusts relate to Departmental activities, they are brought to account in the Statement of Financial Position. Revenues and expenses associated with trust funds/working accounts which are integral to the operations of the Department have been recognised in the Operating Statement and Statement of Cashflows. Assets and Liabilities associated with these trust funds have been included in the Statement of Financial Position. (e) User Charges, Fines and Fees User charges controlled by the Department are recognised as revenues. User charges raised by business units are controlled by the Department where they can be deployed for the achievement of Departmental objectives. Taxes, Public Authority dividends, fines and fees collected but not controlled by the Department, are not recognised as revenues in the Operating Statement or Statement of Cashflows, but are reported as administered revenues in the Output Groups Schedule (Note 3). (f) Appropriations Amounts appropriated for controlled transactions are recognised as Government Revenue in the Operating Statement. Amounts appropriated for administered transactions, eg. transfer payments to eligible beneficiaries in accordance with legislation or other authoritative requirements, are not recognised in the Operating Statement or Statement of Cashflows, but are reported as administered Government revenue in the Output Groups Schedule (Note 3). Notes tn and forming part of the Financial Statements for the year ended 30 June 1993 1. Summary of significant accounting policies - continued (g) Acquisitions of Assets The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Department. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including architects' fees and engineering design fees and all other costs incurred in getting the assets ready for use. The capitalisation threshold is $1,000. Assets acquired at no cost, or for nominal consideration, are recognised as assets and revenues at their fair value at the date of acquisition. Fair value is the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction. (h) Revaluations of Non-current Assets All non-current assets, other than receivables and investments, are revalued to their written-down replacement cost every 5 years with the exception of Land and Buildings which are revalued at least every 3 years. Revaluation increments are credited directly to the Asset Revaluation Reserve while decrements are expensed to the Operating Statement, unless previous revaluations resulted in a valuation increment, in which case the subsequent decrement is offset against the Asset Revaluation Reserve. (i) Depreciation of Non-current Assets Depreciation is calculated on a straight line basis to write off the net cost or revalued amount of each non-current asset over its expected useful life to the Department. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items. Land is not depreciated. DTF has adopted the following depreciation rates and useful lives for the following categories of assets: Asset category Average Depreciation/ Useful life Amortisation Rate % Computers and Equipment • Other 3 years 33.3 • Generic Revenue Collection System 7 years 14.3 Leased Equipment 5 years 20.0 Municipal Valuations • Metropolitan 4 years 25.0 • Non Metropolitan 6 years 16.7 Office Equipment 4 years 25.0 Plant, Furniture & Equipment 10 years 10.0 Leasehold Improvements/Fitouts 10 years 10.0 Leased Motor Vehicles 2.4 years 41.0 Buildings 30 years 3.3 (j) Surplus Land and Buildings Surplus land and buildings which fall within the Government's Asset Sales Program and which are not controlled by the Department, are reported by the relevant agency and not by this Department. Responsibility for these assets remains with the relevant agency until the total sale price is fully discharged. Public Transport Corporation properties which are surrendered to the Crown prior to disposal are treated as controlled assets in the Department's Financial Report and shown as Surplus Land for Resale. Notes to and forming part nf the Financial Statements for the year ended 30 June 1998 (k) Employee Entitlements (i) Wages and Salaries and Annual Leave Liabilities for wages and salaries and annual leave are recognised and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date. (ii) Sick Leave As it is considered that non-vesting sick leave to be taken in future reporting periods will not exceed entitlements which are expected to accrue in those periods, no provision has been made. (¡ii) Long Service Leave A liability for long service leave is recognised for all staff and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given, when assessing expected future payments, to expected future wage and salary levels, experience of employee departures and periods of service. The current portion of the liability reflects the amount estimated to be paid within 12 months. Expected future payments are discounted using interest rates attaching, as at the reporting date, to Commonwealth Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outflows. The following assumptions were adopted in measuring present value: 1998 1997 Weighted average rates of increase in annual employee entitlements to settlement of the liabilities 4.9% 5.3% Weighted average discount rates 5.4% 6.9% Average terms to settlement of the liabilities 14 years 16 years (iv) Superannuation During the year the Department made superannuation contributions to a number of private sector funds as elected by employees. Superannuation expense relates to the reporting period and represents the Department's contributions in respect of departmental staff as determined under various Superannuation Acts (Refer to Note 4). There were no outstanding contributions at 30 June 1998. (I) Unfunded Superannuation Liability An unfunded superannuation liability exists because funds' assets are not sufficient to cover members' accrued benefits as actuarially assessed at 30 June 1998. Government policy in relation to this liability is that the net unfunded amount for the entire budget sector should be taken up in the accounts of the Department of Treasury and Finance. (Refer to Note 23). Superannuation expenditure shown in the Operating Statement relates to the entire budget sector. (Refer to Note 7). (m) Investments Investments are brought to account at cost. Interest revenues are recognised as they accrue. Investments and investment income are disclosed as administered items in the Output Groups Schedule (Note 3), with the exception of Accelerated Infrastructure Project Bonds which are reported as controlled in the Statement of Financial Position. Notes to anri forming part of the Financial Statements for the year ended 30 June 1998 1. Summary of significant accounting policies - continued (n) Leases A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits. Where a non-current asset is acquired by means of a finance lease, the asset is established at its fair value at the inception of the lease. The liability is established at the same amount. Lease payments are allocated between the principal and interest expense. On 3 July 1997 the State of Victoria sold the majority of its motor vehicle fleet and entered into a Master Lease Agreement to enable Departments and public bodies to lease and replace vehicles under a short-term operating lease for each vehicle. The Master Lease Agreement has been recognised as a finance lease (non-current asset and related liability) in the financial statements of this Department (Refer to Note 19). The Department has recognised for the first time (as a non-current asset and related liability), finance leases relating to buildings constructed under an Accelerated Infrastructure Program. The Program was established in 1990/91 in conjunction with a major private bank, to provide accommodation for certain government agencies, principally police stations and law courts (Refer to Note 18). Operating lease payments are representative of the pattern of benefits derived from the leased assets and accordingly are charged to the Operating Statement in the periods in which they are incurred. (o) Resources Provided/Received Free of Charge In order to reflect the total cost of service delivery, resources provided free of charge to other departments have been separately reflected within the Department's expenses. In the case of an asset provided free of charge, an adjustment is made in the asset and accumulated depreciation account to reflect the transfer of the asset. Resources received free of charge from other departments have been separately shown within the Department's revenues, (p) Financial Instruments The Accounting policies and terms and conditions of each class of financial asset and liability, both recognised and unrecognised at the balance date as required under AAS 33, are as follows: Financial Instrument Accounting Policy and Terms and Conditions Financial Assets Overnight investments Valued at principal invested. Interest is based on overnight investment rates and is received monthly in arrears. Principal is redeemed at 11 am the following day. Short term money market Valued at the number of units held by the State multiplied by the unit price of the trust. trust investment The net of interest earned and management fees paid is compounded to value of the investment. The unit price is based on the underlying market value of the trust's investments. Deutschmark term deposit The principal outstanding is valued at the Australian dollar / Deutschmark cross-currency rate. Interest earned is compounded to the value of the investment. The compounded value is redeemable at maturity in 1999-00. Cash Equivalents Cash includes cash in hand, deposits held at call and cash equivalents, being highly liquid investments with short periods to maturity. The carrying amounts reported in the Statement of Financial Position approximate their net market value. The maximum credit risk is assessed as equal to the carrying amount of cash and cash equivalents. Receivables Receivables represent amounts fixed in currency, that are to be received from customers and other outside entities. The collectability of debts is assessed at balance date and provision made for any doubtful accounts. The carrying amounts reported in the Statement of Financial Position approximate their net market value. No interest is charged on receivables. Notes to and forming part nf the Financial Statements for the year ended 30 June 1998 Financial Instrument Accounting Policy and Terms and Conditions Financial Liabilities Fixed interest borrowings • Core Borrowing Portfolio (CBP] - valued at principal outstanding with discounts and premiums amortised over the life of the instrument. Debt Retirement Portfolio (DRP) - valued at market rates commensurate with the TCV rate for similar securities. Interest is paid in arrears at a fixed interest rate. Principal is repaid as per an amortising schedule over the life of the instrument or at maturity. Maturities for fixed interest borrowings range from 1998-99 to 2026-27. Advances from the CBP - valued at principal outstanding. Commonwealth DRP - valued at market rates commensurate with the TCV rate for similar securities. Interest is paid in arrears at a fixed interest rate. Principal is repaid as per an amortising schedule over the life of the instrument or at maturity. CPI indexed borrowings CBP - valued at principal outstanding with discounts and premiums amortised over the (Indexed Annuities] life of the instrument. Interest is indexed to the CPI and paid in arrears. Principal is repaid over the life of the instrument as per an amortising schedule. Maturities for indexed annuities range from 1999-00 to 2030-31. CPI indexed borrowings CBP - valued at principal outstanding with discounts and premiums amortised over the (Capital Indexed Bonds) life of the instrument. DRP - valued at market rates commensurate with the TCV rate for similar securities. Principal outstanding is indexed in accordance with the movement in the CPI. Interest is paid in arrears at a fixed rate based on the indexed face value of the bond. The indexed face value is repaid at maturity. Maturities for capital indexed bonds range from 1998-99 to 2020-21. Floating Rate Notes DRP - valued at market rates commensurate with the TCV rate for similar securities. Interest is paid in arrears based on BBSW floating rates plus or minus a margin. Face value is repaid at maturity. Maturities for floating rate notes range from 1998-99 to 2002-04. Overnight borrowings Valued at principal outstanding. Interest is based on the overnight borrowing rate and paid monthly in arrears. Principal is repayable at 11 am the following day. Finance lease liabilities (CBP) - Valued at principal outstanding. Interest is paid in arrears based on BBSW floating rates plus a margin. Principal is repaid as per an amortising schedule over the life of the lease. Maturities for finance lease liabilities range from 1998-99 to 1999-00. Creditors and Accruals Creditors and accruals represent amounts that are to be paid to suppliers and other outside entities. The carrying amounts reported in the Statement of Financial Position approximate their net market value. No interest is paid in respect of payables. (q) Comparative Figures The Department has reclassified certain items in reporting for the current financial year. Comparative figures have been adjusted to achieve consistency in disclosure. (r) Rounding Unless otherwise shown, all amounts have been rounded to the nearest thousand dollars. Notes to and forming part of the Financial Statements for the year ended 30 June 1998 2. Output Groups of the Department As part of the Government's financial management reform program, Output Groups were revised in 1997/98 to reflect resource allocation related to the Department's activities rather than organisational structure. The identity and description of the Department's Output Groups for the year ended 30 June 1998 are summarised below. Output Group 711 - Advice to Government on Strategic Policy Formulation The provision of objective, timely and relevant advice to the Treasurer, Minister for Finance and Minister for Gaming and appropriate Parliamentary and Cabinet Committees on the economic, financial and budgetary aspects of Government strategic policy formulation. Output Group 712 - Financial Management Services The provision of services to Government related to financial accounting, reporting and control, and monitoring of financial performance of Government departments, agencies and corporatised Government Business Enterprises. Output Group 713 - Risk Management Services The development, communication and compliance monitoring of risk management policies appropriate to various activities of Government departments, agencies, and Government Business Enterprises. Output Group 714 - Privatisation Services The implementation of Government policy on privatisation of Government Business Enterprises and private provision of public sector goods and services where appropriate and practical. Output Group 715 - Ministerial Services The provision of advisory and support services to Ministers in respect to their statutory and Ministerial responsibilities. Output Group 716 - Reform Services The provision of advice on options and issues, and management of the implementation process for major Government endorsed reform objectives for which the Treasurer and/or Minister for Finance have responsibility. Output Group 717 - Budget Production The provision of advisory and support services to the Treasurer, Budget and Expenditure Review Committee and Cabinet on the preparation and production of the State's annual budget documents. Output Group 718 - Resource Management Services The provision of centralised management of selected key internal support services for the whole of the budget sector. Output Group 719 - Regulatory Services The Victorian Casino and Gaming Authority monitors and regulates Victoria's gambling activities to ensure that it is fair, crime free, and optimises the benefits for Victorians. The Office of the Chief Electrical Inspector ensures minimum standards for the safety, supply and use of electricity throughout Victoria and the energy efficiency of electrical appliances. The Office of Gas Safety establishes and maintains control of safety over all gas fuels in their supply, distribution and utilisation. Output Group 720 - Taxation Management Services Ensuring the efficient collection of revenue to fund Government services. Maximising compliance with taxation laws at minimum cost to clients and the State Revenue Office. The provision of advice on establishing a competitive taxation regime and administrative support framework. The provision of the highest standard of client services to taxpayers. Notes to and forming part nf the Finannial Statements for the year ended 30 June 1998 3. Departmental and Administered Transactions (a) Activities Administered by the Department In addition to the specific Departmental operations which are included in the Statement of Financial Position, Operating Statement and Statement of Cash Flows, the Department administers or manages activities on behalf of the State. The transactions relating to these State activities are reported as Administered in this note. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues include taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered liabilities include government expenses incurred but yet to be paid. Administered assets include government revenues earned but yet to be collected. Administered Borrowings The Budget Sector Debt Portfolio (BSDP) is divided into two portfolios, the Core Borrowing Portfolio (CBP) and the Debt Retirement Portfolio (DRP), to manage the conflicting risk management objectives of on-going funding requirements and debt retirement. Further disclosures on the CBP and DRP are contained in Note 32. The borrowings of the BSDP classified in this note as 'Borrowings' and 'Advances Received', was $10,998 million (1997 $12,684 million). The $10,998 million had a face value of $11,040 million (1997 $13,023 million) and a mark-to-market value of $11,684 million (1997 $12,950 million). Departmental controlled and administered transactions are disclosed by class and by Output Groups in the following tables. (b) Entities Administered by Ministers In addition to the items listed in note 3(a), Ministers have ultimate administrative responsibility for the State's interest in entities within their portfolio. The net asset value of these entities at 30 June 1998, based on their audited financial statements at 30 June 1996, adjusted for returns of capital and disposals under restructuring, is $7,709 million ($8,314 million at 30 June 1997). The disclosure of this interest in these entities separately from departmental administered items is made on the basis that the entities are responsible to Ministers rather than to the Departmental Secretary. Nntfts tn and forming part nf the Financial Statements for the year ended 30 June 1998 3. Output Groups Schedule - Revenues and Expenses for the year ended 30 June 1998 Output Output Output Output Group 711 Group 712 Group 713 Group 714 1998 1997 1998 1997 1998 1997 1998 1997 $000 $000 $000 $000 $000 $000 $000 $000 Departmental Expenses and Revenues Expenses Employee Costs 5,493 5,550 8,976 10,806 2,321 2,345 2,793 2,822 Supplies and Services 2,869 2,941 94,390 98,383 2,124 2,178 38,053 39,012 Depreciation and Amortisation 243 238 4,707 4,100 111 109 370 362 Superannuation - - 573,258 477,186 - - - - Resources Provided Free of Charge - - 4,483 10,308 - - 18 41 Other 86 92 25,145 27,905 - - 215 229 Abnormal Loss - 153,000 300,500 - - - Total 8,691 8,821 863,959 929,188 4,556 4,632 41,449 42,466 Revenues User Charges 101,399 114,555 - - - Interest - - 12,032 13,398 - - Resources Received Free of Charge - 5,901 6,848 - - - - Special Appropriations 478,233 422,868 - - - Current Appropriations 8,667 6,112 584,108 395,097 22,670 15,988 43,345 30,569 Capital Appropriations - 12,045 56,038 - - - Appropriations of Other Departments - - 40 - - - Receipts Forwarded to Consolidated Funds - - (92,634) (89,836) - - - C O CS I Other 312 294 53,626 50,367 219 - Total 8,979 6,406 1,154,710 969,375 22,902 16,207 43,345 30,569 Revenues less Expenses 288 (2,415) 290,751 40,187 18,346 11,575 1,896 (11,897) Administered Revenues and Expenses Expenses Transfer Payments 17,655 209,170 18,170 7,494 Financing Costs 413,278 432,833 - Interest Expense 760,394 1,111,479 - Taxation Expenses 80,859 - Other 719,892 238,145 274 331 Total 0 0 1,992,078 1,991,627 18,444 7,825 0 0 Revenues Special Appropriations - - 3,289,534 4,859,394 280 404 37,742 54,392 Current Appropriations - - 1,068,659 1,610,826 179,751 258,147 - - Capital Appropriations - 26,089 252,102 282 2,725 132 1,276 Receipts Forwarded to Consolidated Fund - -(12,802,241) (7,932,423) - (512,687) (577,261) Commonwealth Receipts - - 4,765,085 3,654,461 - Dividends 422,746 416,045 Financing Income - 129,612 230,963 - - Taxation 127,448 (20,803) - - - - Other 512,475 732,943 - - 14,816 21,168 Abnormal Items* - 152,863 360,862 - 1,152,867 2,721,557 Total 0 0 (2,730,476) 3,748,325 180,313 261,276 1,115,616 2,637,177 Revenues less Expenses 0 0 (4,722,554) 1,756,698 161,869 253,451 1,115,616 2,637,177 * Abnormal amount consists of $1,153 million profit on sale of Government businesses IPowernet Victoria and Southern Hydro!. $1,604 million reduction in obligations under a previous smelter power supply contract which have been assumed by SECV, offset by $1,451 million due to debt restructuring (Office of Housing and Water Authorities). Mntes to and forming part nf the Financial Statements for the year ended 30 June 1998 Output Output Output Output Output Output Departmental Group 715 Group 716 Group 717 Group 718 Group 719 Group 720 Total 1998 1997 1998 1997 1998 1997 1998 1997 1998 1997 1998 1997 1998 1997 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 1,789 1,808 5,882 5,943 1,618 1,635 6,451 6,518 26,681 25,222 62,004 62,649 1,012 1,038 28,603 29,324 508 521 12,054 12,358 26 27 21,469 20,395 201,108 206,177 100 98 365 357 76 74 11,449 11,213 92 90 5,390 5,789 22,903 22,430 ------573,258 477,186 ------8,658 19,908 - - - 13,159 30,257 42 45 12 13 - - 1 1 1,377 331 26,878 28,616 ------153,000 300,500 2,943 2,989 34,850 35,624 2,214 2,243 38,612 49,997 119 118 54,917 51,737 1,052,310 1,127,815 26 29 2,127 1,828 103,552 116,412 - - - - 194 216 - - - 12,226 13,614 - - - 247 287 - - - 6,148 7,135 ------478,233 422,868 2,815 1,985 35,614 25,116 2,183 1,540 18,963 13,373 539 380 47,914 50,631 766,818 540,791 - - - 21,271 82,407 - - 3,241 3,183 36,557 141,628 ------40 ------(2,206) - (94,840) (89,836) 61 58 319 301 84 79 15,173 14,317 182 172 79 306 70,068 66,113 2,876 2,043 35,933 25,417 2,267 1,619 55,874 110,629 721 552 51,155 55,948 1,378,762 1,218,765 (67) (946) 1,083 (10,207) 53 (624) 17,262 60,632 602 434 (3,762) 4,211 326,452 90,950 411,651 1,227 495 204 29,048 11.980 80,859 557,878 230,075 ------8,590 413,278 441,423 ------1,530 893 761.924 1,112,372 - - - - - 54,611 2.346 135,470 2,346 ------4,939 41 725,105 238,517 0 0 411,651 1,227 0 0 495 204 29,048 11,980 141,939 11,870 2,593,655 2,024,733 421,297 607,152 14,564 20,989 83,000 934 3,846,417 5,543,265 - - 2,502 3,593 - 55 79 14,563 20,914 54,611 2,346 1,320,141 1,895,905 • - 301 2,909 - - • - 1 10 - 26,805 259,022 - - (974,994) (1,097,796) - (80,308) (90,423) (1,337,826) (1,207,637) - (6,908,602) (15,708,056) (17,814,142) ------4,765,085 3,654,461 - 839,185 825,882 - - - - - 1,261,931 1,241,927 ------129,612 230,963 - - 20 24 - - - 1,320,881 1,222,342 5,293,773 6,917,192 6,742,122 8,118,755 - - - - 68,540 97,926 7,963 11,377 524 • 604,318 863,414 ------1,305,730 3,082,419 0 0 288,311 341,764 0 0 (11,713) 7,582 20,146 67,995 5,431,908 11,870 4,294,105 7,075,989 0 0 (123,340) 340,537 0 0 (12,208) 7,378 (8,902) 56,015 5,289,969 0 1,700,450 5,051,256 Nntfts to and forming part nf the Financial Statements for the year ended 30 June 1998 3. Output Groups Schedule - Assets and Liabilities as at 30 June 1998 Output Output Output Output Group 711 Group 712 Group 713 Group 714 1998 1997 1998 1997 1998 1997 1998 1997 $000 $000 $000 $000 $000 $000 Departmental Assets and Liabilities Assets Current 38 53 68,831 98,004 Non-Current 658,774 433,692 25 17 Total 38 53 727,605 531,696 25 Liabilities Current 969,718 613,007 982 622 226 143 Non-Current - 13,680,147 14,069,756 Total 0 14,649,865 14,682,763 982 622 226 143 Administered Assets and Liabilities Administered Assets Cash 194,767 532,103 Receivables 702,921 1,774,139 282 150,205 123 240 Prepayments 2 Trust Funds (4) Investments 417,639 63,817 149,656 Infrastructure Assets 7,473 768 Inventories Total 0 1,322,796 2,370,829 149,938 150,205 123 240 Administered Liabilities Creditors and Accruals 49,445 50,979 Funds Held in Trust (4) Advances Received 1,175,525 1,027,343 Borrowings 9,822,100 11,656,598 Other 237,773 1,825,815 Total 0 11,284,839 14,560,735 for the year ended 30 June 1998 Output Output Output Output Output Output Departmental Group 715 Group 716 Group 717 Group 718 Group 719 Group 720 Total 1998 1997 1998 1997 1998 1997 1998 1997 1998 1997 1998 1997 1998 1997 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 43 60 77 108 1 1 - - - - 2,688 2,561 71,678 100,787 103,995 - - - 8,853 12,182 771,647 445.891 43 60 77 108 1 1 103,995 0 0 0 11,541 14,743 843,325 546,678 11,922 - - - 3,669 3,620 986,517 617,392 92,117 45 - - 4,040 3,529 13,776,304 14,073,330 ö Ö Ö 0 Ö 0 104,039 45 Ö Ö 7709 7,149 14,762,821 14,690,722 194,767 532,103 6,952 13,539 40,528 48,143 141,224 42,425 892,030 2.028,691 2 14 14 567,295 63,817 7,473 768 7,168 6,332 7,168 6,332 6,952 13,539 40,528 48,143 148,396 48,771 1,668,733 2,631,727 2 2 - - 1,247 98 50.694 51,079 4 14 - 14 - 1,175,525 1,027,343 - 9,822,100 11,656,598 1,406 237,773 1,827,221 o Ö 0 0 0 Ö 2 2 Ö Ö U51 1,518 11,286,092 14,562,255 Notes tn and forming part of the Financial Statements for the year ended 30 June 1998 1998 1997 $'000 $000 Employee Costs Wages and Salaries 50,102 49,040 Superannuation Expense Related to Departmental Staff 5,103 3,673 Termination Payments 1,557 670 Other Employee Related Expenses 5,242 9,266 62,004 62,649 Supplies and Services Accommodation/Rent and Outgoings 88,713 91,757 Contract Services and Consultancies 75,178 71,735 Electronic Data Processing Expenses 10,934 10,331 Building Services and Utilities 9,551 14,223 Other 16,732 18,131 201,108 206,177 Depreciation and Amortisation Expense Depreciation and amortisation were charged in respect of: Buildings 11,122 13,306 Intellectual Property 4,915 4,701 Computers and Communication Equipment 2,422 2,469 Leased Assets 4,087 1,212 Office Equipment and Furniture and Fittings 335 456 Motor Vehicles 22 286 22,903 22,430 Superannuation 573,258 477,186 573,258 477,186 This amount relates to pensions and lump sums expenditure for the entire budget sector. Resources Provided Free of Charge Fitout Costs 6,947 23,404 Building Services and Utilities 833 1,593 Other Assets 5,379 5,260 13,159 30,257 for the year ended 30 June 1998 1998 1997 $'000 $ 000 Other Expenses Finance Lease Interest* 9,061 19,109 Transport Lease Options* - 4,286 Decrement resulting from Revaluation of Buildings 13,966 - Audit Fees: • Internal 263 179 • External - Annual Financial Statements and Departmental Financial Report 641 707 - Other 301 433 Ex Gratia Payments 361 371 Other Expenditure 2,285 3,531 26,878 28,616 "The higher 1997 amounts reflect costs relating to three transport leases which matured in that year. User Charges Rental Accommodation and Associated Recoupments 96,216 104,808 Other Fees and Charges 7,336 11,604 103,552 116,412 Other Operating Revenue Transfer of Funds 192 30,715 Surplus on Sale of Fixed Assets 20,192 17,583 Imputed Lease Rental Collections 15,931 - Lease Co-ordination Fee 6,083 - Incentive Payments from Landlords 7,290 2,616 Superannuation Recoupments 6,227 8,058 Administrative Recoupments 5,314 1,410 Miscellaneous 8,839 5,731 70,068 66,113 12. Abnormal Loss Increase in Unfunded Superannuation Liability 153,000 300,500 153,000 300,500 IMntes to and forming part nf the Finannial Statements for the year ended 30 June 1998 1998 1997 $'000 $000 13. Cash Rental Trust Accounts 9,271 19,832 Working Accounts - Business Units 4,177 5,504 Public Account - Salaries & Wages in Suspense 1,319 1,471 Other 16 6,871 14,783 33,678 14. Trust Funds Finance Agency Trust 8,619 12,241 Natural Disasters Trust 6,431 5,449 Treasury Trust Funds 5,310 3,724 Creditors Suspense Account 3,943 - Asset Sales Deposit Trust Account 3,446 1,031 Snowy Reform Project Trust 247 3,173 Performance Incentive Trust 203 - Other Trust Funds 1,018 1,841 29,217 27,459 Investment re Performance Incentive Trust 1,952 3,713 31,169 31,172 The Department has separately recognised monies held in trust on behalf of other parties as current assets. The trust accounts are shown as current liabilities. 15. Inventories Stationery & Office Supplies 69 56 Work in Progress 539 4 608 60 16. Receivables (a) Current Assets Fees Receivable by Business Units 2,738 4,964 Provision for Doubtful Debts (75) (130) 2,663 4,834 (b) Non-Current Assets Revenue from Sale of Equipment 150 150 Notes to and forming part of the Financial Statements for the year ended 30 June 1998 1998 1997 svoo $000 17. Investments 257,893 257,893 257,893 257,893 This amount represents the cost of bonds purchased by the Department in respect of the Accelerated Infrastructure Program. The proceeds of the bonds (issued by a special purpose public company - Property Leasing Limited) were used to finance the construction of police stations, court buildings and other buildings for government use. The bonds have been purchased to facilitate a restructure of the leasing arrangements related to those buildings. The potential restructure of the Accelerated Infrastructure Program may result in a decrement in the carrying value of these bonds. 18. Land and Buildings Land Land & Improvements - at Valuation 68,429 50,467 68,429 50,467 Buildings Buildings at Valuation 62,432 78,354 Accumulated Depreciation (1,015| (17,278) Written Down Value 61,417 61,076 Building Improvements at Cost 280 3,092 Accumulated Depreciation (29) (540) Written Down Value 251 2,552 Fitouts at Cost 37,881 17,136 Accumulated Depreciation (3,110) (100) Written Down Value 34,771 17,036 Constructions in Progress 21,770 34,617 Accumulated Depreciation - - Written Down Value 21,770 34,617 Leased Buildings* 103,995 - Accumulated Depreciation - - Written Down Value 103,995 - Total Written Down Value - Buildings 222,204 115,281 Total Written Down Value of Land and Buildings at Department's Valuation. 290,633 165,748 Valuations of land and buildings were determined by the Valuer-General's Office in June 1998. Valuations were carried out in conformity with the accounting policy "Recognition and Valuation of Non-Current Physical Assets" issued by the Financial Management Division of the Department of Treasury and Finance. 'Increase in 1998 reflects recognition of leases relating to the Accelerated Infrastructure Program. Notes to and forming part of the Financial Statements for the year ended 30 June 1998 1998 1997 $W0 $ 000 19. Plant and Equipment Office Equipment Office Equipment 1,931 1,595 Accumulated Depreciation 11,203] (985) Written Down Value 728 610 Intellectual Property - Generic Revenue Collection System Generic Revenue Collection System at Cost 12,241 12,241 Accumulated Depreciation (10,329) (8,584) Written Down Value 1,912 3,657 Intellectual Property - Municipal Valuations Database Municipal Valuations Database at Cost* 11,762 22,221 Accumulated Amortisation* (6,441) (15,387) Written Down Value 5,321 6,834 Computer Equipment Computer Equipment at Cost 13,235 8,477 Accumulated Depreciation (6,030) (3.790) Written Down Value 7,205 4,687 Motor Vehicles Motor Vehicles at Cost 5,193 Accumulated Depreciation - (205) Written Down Value 4,988 Furniture and Fittings Furniture and Fittings at Cost 742 533 Accumulated Depreciation (227) (173) Written Down Value 515 360 Leased Assets Plant and Equipment at Cost 10,231 10,231 Accumulated Amortisation (9,795) (9,267) Written Down Value 436 964 Motor Vehicles - Leased** 210,563 - Accumulated Amortisation (3,559) - Written Down Value 207,004 Total Written Down Value of Plant and Equipment 223,121 22,100 'The decrease in 1998 represents removal from asset records of a fully depreciated and obsolete Database. **Increase in 1998 reflects recognition of Master Lease relating to the State's motor vehicle fleet. for the year ended 30 June 1998 1998 1997 $'000 $ 000 20. Creditors & Accruals Supplies and Services* 7,099 17,986 Employee Costs 1,580 1,065 8,679 19,051 *Amount for 1997 includes $7m for Rental Advance which was not applicable for 1998. 21. Commitments for Expenditure (a) Finance Leases Current 35,596 6,325 Non-current 307,789 38,970 *343,385 45,295 'Increase in 1998 reflects recognition of Master Lease relating to the State's motor vehicle fleet and leases on buildings relating to the Accelerated Infrastructure Program. Commitments under finance leases at the reporting date are payable as follows: Not later than one year 37,721 9,498 Later than one year and not later than 2 years 274,162 10,018 Later than 2 years and not later than 5 years - 33,234 Later than 5 years 129,626 - Minimum lease payments 441,509 52,750 Less: Future finance charges 98,124 7,455 343,385 45,295 (b) Operating Leases Commitments under non-cancellable operating leases at the reporting date (which are not recognised as liabilities in the Financial Report) are payable as follows: Not later than one year 4,566 5,514 Later than one year and not later than 2 years 3,579 4,943 Later than 2 years and not later than 5 years 8,530 10,270 Later than 5 years 5,222 7,501 21,897 28,228 (c) Capital Commitments Capital expenditure contracted for at the reporting date but not recognised as liabilities in the Financial Report: Building improvements, fit-outs and maintenance 4,810 14,022 4,810 14,022 Notes to and forming part nf the Financial Statements for the year ended 30 June 1998 22. Provision for Employee Entitlements 1998 1997 ÎV00 $000 Current Employee Entitlements Recreational Leave Liability 4,319 3,895 Long Service Leave Liability 414 471 4,733 4,366 Non-Current Employee Entitlements Long Service Leave Liability 9,946 9,438 9,946 9,438 14,679 13,804 23. Unfunded Superannuation Liability The gross unfunded liability at 30 June 1998 of superannuation funds operated principally for budget sector employees was $15,346 million, as shown below. This liability represents the shortfall between the total net assets of the State's budget sector superannuation funds at 30 June 1998 and the total benefits that members have accrued up to that date, determined by an actuarial assessment. Not all of the $15,346 million is to be met from superannuation outlays of the budget. An amount of $1,101 million is to be met from the revenues of Commonwealth funded agencies (e.g. universities) and self-funded entities. In accordance with the State Superannuation Act 1988 the Government, through the Consolidated Fund, is primarily responsible for meeting the employer's share of the unfunded liability of the State Superannuation Fund. However, under the terms of that Act, the Minister for Finance can effectively pass this unfunded liability to individual authorities. In addition, the Department has, for the first time, recognised a liability of $120 million for accrued benefits arising from pension entitlements under constitutionally protected schemes operated principally for judges. As no assets are held in respect of these schemes, they are therefore unfunded and pensions become directly payable from the Consolidated fund. The liability has been calculated by the Superannuation Policy Unit of the Department. At 30 June 1998 the total unfunded liability to be met from non-budget revenue was $1,101 million and to be met by the Department was $14,365 million, as shown below. for the year ended 30 June 1998 1998 1997 $Million $Million State Superannuation Fund 14,995 14,505 Emergency Services Superannuation Fund 365 900 Hospitals Superannuation Fund - 185 Parliamentary Contributory Superannuation Fund (14) - Sub Total 15,346 15,590 Constitutionally Protected Schemes 120 - Sub Total 15,466 15,590 Liabilities to be met from Non-Budget Revenue (1,101) (1,009) Liabilities to be met from Budget Superannuation Outlays - Current 906 556 Liabilities to be met from Budget Superannuation Outlays - Non-Current 13,459 14,025 14,365 14,581 24. Changes in Equity Accumulated Asset Total Surplus! (Deficit) Revaluation Equity $'000 ÎV00 $'000 Balance at the beginning of the Financial Year (14,163,674) 19,630 (14,144,044) Increase in Net Assets 326,452 - 326,452 Change in Asset Revaluation Reserve - 9,663 9,663 Recognition of Unfunded Superannuation Liability - Constitutionally Protected Schemes (120,300) - (120,300) Assets not previously recognised 12,362 - 12,362 Equity Adjustment (3,629) - (3,629) Balance at the end of the Financial Year (13,948,789) 29,293 (13,919,496) for the year ended 30 June 1998 25. Reconciliation of Increase in Net Assets to Net Cash Outflow to Operating Activities 1998 1997 $V00 $000 Increase in Net Assets 326,452 90,950 Depreciation 22,903 22,430 Gain on Disposal of Non-Current Assets (20,1921 (19,940) Increases - Employee Entitlements 875 1,356 (lncrease)/Decrease in Receivables 2,321 (434) Increase in other Current Assets (548) (7,008) Decrease in Prepayments 109 794 Decrease in Creditors and Accruals (10,372) (565) lncrease/(Decrease) in other Current Liabilities 209 (2,158) lncrease/(Decrease| in Unfunded Superannuation (337,000) 300,500 Assets not previously recognised adjusted against equity 12,362 - Net Cash flows from/fused in) Operating Activities (2,881 ) 385,925 26. Contingent Liabilities Contingent liabilities arise from guarantees, indemnities and other forms of support provided by the Government through the Treasurer. They also arise from legal disputes and other claims against the Government. Contingent liabilities, by definition, are not actual liabilities. They are amounts relating to circumstances under which there is the possibility, due to some future event, that an actual liability could arise. A conservative approach has been used so that amounts shown below represent the maximum potential liability, without taking into account any offsetting asset or security values. The following table summarises quantifiable contingent liabilities relating to the Department of Treasury and Finance. 1998 1997 $Miilion $Million Budget Sector State Financial Enterprises 465.0 465.0 Specific Guarantees and Indemnities under Statute 379.0 382.3 Monash Medical Centre 123.5 125.5 Litigation against State Revenue Office 94.1 - Other 20.9 7.6 Total Budget Sector 1,082.5 980.4 Non-Budget Sector (a) 4,212.3 7,321.1 Total 5,294.8 8,301.5 laj The 1998 figure consists of $3,943.9m at market value and $268.4m at cost The decrease in the total amount compared with 1997 mainly reflects a reduction in Treasurer's indemnities/guarantees following debt restructuring and sales of government businesses. Notes to and forming part nf the Financial Statements for the year ended 30 June 1998 Other - not included above (1) Gold Loan Or 28 June 1996, TCV terminated the Gold Loan which it entered into with the FAI Group in 1987. The Treasurer has fully indemnified TCV with respect to that transaction. TCV has issued proceedings in the Supreme Court of Victoria seeking court approval for the basis upon which TCV claims the payment consequent upon the termination of the Gold Loan arrangements should be calculated and awaits the outcome of the judgement in those proceedings. Part payment of the termination amount has been made. Applying the TCV's basis of calculation, it is considered that the future liability of TCV in respect of the termination of the Gold Loan will not exceed $13.8 million. (2) Taxation Treatment of Government Business Enterprises A contingent liability exists in relation to an agreement between the Commonwealth and all States and Territories called "The Statement of Policy Intent on the Taxation Treatment of Government Business Enterprises" (known as the SOPI). The contingent liability for a particular State/Territory arises as a result of a change in tax jurisdiction of a State or Territory entity, but where there is no change in ownership. At this time, it is not possible to quantify the amount, if any, of the contingent liability. Further, the SOPI also imposes similar liabilities on the Commonwealth which mitigates the magnitude and likelihood of any Victorian obligations. (3) Other Contingent Liabilities There are other commitments which have been made by Government, many of which are unquantifiable arising from: • Indemnities provided in relation to financing arrangements, consultancy services, directors and administrators; • Performance Guarantees; • Deeds in respect of certain obligations of the Docklands Authority. 27. Disclosures Relating to Ministers and Accountable Officer In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following related disclosures are made for Ministers and the Accountable Officer for the reporting period. (a) Names Persons who held the above positions in the Department are shown below. The Hon A R Stockdale MP Treasurer The Hon R M Hallam MLC Minister for Finance Dr M J Vertigan Secretary (until 6/3/98) Mr I Little Secretary (from 7/3/98) (b) Remuneration Remuneration received or receivable by the Accountable Officer in connection with the management of the Department during the reporting period was in the range: $520,000 - $529,999* (1996/97 $270,000 - $279,999) Amounts relating to Ministers are reported in the Financial Statements of the Department of Premier and Cabinet. 'Includes end-of-contract payments to Dr Vertigan for accumulated bonuses over the five years of his contract and for unused leave. (c) Other Transactions Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report. Notes to and forming part of the Financial Statements for the year ended 30 June 1998 28. Executive Officers' Remuneration The numbers of executive officers, other than Ministers and the accountable officers, whose total remuneration exceeded $100,000 during the reporting period are shown in their relevant income bands in the first two columns of the table below. The base remuneration for these executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments and accrued leave entitlements. Several factors have affected the total remuneration payable to executives over the year. Figures shown for a number of executives include end-of-contract payments for bonuses accumulated under individual employment contracts covering periods of up to five years. Total remuneration figures also include payments for accrued leave entitlements on termination of employment. Total Remuneration Base Rémunération Income between 1998 1997 1998 1997 No No No No $10,000- 19,999 1 - $30,000 - 39,999 - 1 $40,000 - 49,999 1 1 $60,000 - 69,999 1 - $70,000 - 79,999 3 1 $80,000 - 89,999 2 3 $90,000 - 99,999 8 6 $100,000 - 109,999 15 19 16 19 $110,000- 119,999 14 11 18 8 $120,000 - 129,999 9 6 5 4 $130,000- 139,999 8 6 4 2 $140,000- 149,999 5 2 2 2 $150,000 - 159,999 5 1 2 1 $160,000 - 169,999 1 2 1 1 $170,000 - 179,999 4 - - - $180,000 - 189,999 2 - 2 - $190,000 - 199,999 1 - - 1 $200,000 - 209,999 1 2 - 1 $220,000 - 229,999 - 1 - - $270,000 - 279,999 1 - - - $290,000 - 299,999 - 1 - - Total Numbers 66 51 66 51 Total Amount - $000's 8,827 6,502 7,304 5,655 for the year ended 30 June 1998 29. Summary of compliance with Financial Directives The Department of Treasury and Finance is dependent on Government funding by way of appropriation for a large proportion of its costs. The following table, summarising costs for individual Output Groups, demonstrates that the Department has complied with total spending limits authorised by Parliament. Summary of compliance with financial directives for the year ended 30 June 1998. Budget Budget Original Final Payments i'QOO $'000 $W0 Current Appropriations 711 Advice on Strategic Policy Formulation 10,953 10,953 8,667 712 Financial Management Services 1,429,508 1,647,496 1,669,031 713 Risk Management Services 223,699 230,699 202,421 714 Privatisation Services 76,396 78,016 43,345 715 Ministerial Services 3,360 3,360 2,815 716 Reform Services"1 26,844 26,844 38,116 717 Budget Production 2,500 2,500 2,183 718 Resource Management Services 29,622 33,222 19,018 719 Regulatory Services121 5,254 5,254 15,102 720 Taxation Management Services 84,606 86,426 86,261 Total 1,892,742131 2,124,770 2,086,959 Analysed as follows:- Administered 1,320,141 Controlled 766,818 Capital Appropriations 711 Advice on Strategic Policy Formulation 81 81 712 Financial Management Services 128,570 49,550 38,401 713 Risk Management Services 9,920 33,920 282 714 Privatisation Services 3,621 1,843 132 715 Ministerial Services 716 Reform Services 300 300 301 717 Budget Production 718 Resource Management Services 40,980 39,287 21,112 719 Regulatory Services 1 720 Taxation Management Services 6,150 4,150 3,133 Total 189,622 129,131 63,362 Analysed as follows:- Adminlstered 26,805 Controlled 36,557 Notes tn and forming part of the Financial Statements for the year ended 30 June 1998 29. Summary of compliance with Financial Directives - continued Budget Budget Original Final Payments î'000 $V00 Special Appropriations 712 Financial Management Services 774,613 4,324,983 3,718,366 713 Risk Management Services 1,500 1,500 280 714 Privatisation Services 37,742 37,742 716 Reform Services 421,297 421,297 719 Regulatory Services 14,600 14,600 14,564 720 Taxation Management Services 138,120 132,401 Total 790,713 4,938,242 4,324,650 Analysed as follows:- Administered 3,846,417 Controlled 478,233 Total Appropriations 2,873,077 7,192,143 6,474,971 Note:(1) Payments include $22m budgeted against Output Group 714. (21 Payments include $6.3m for Office of Gas Safety, approved post budget (31 Excludes $296m "Advance to the Treasurer". Appropriations from this amount are booked in the accounts of the Departments receiving the funds. Income from Government in the 1996-97 financial year was categorised as Recurrent and Works and Services appropriations, however in the 1997-98 financial year, income from Government is categorised as Current and Capital appropriations. The change in categorisation of appropriations better aligns the funding sources with the purpose towards which they are applied, that is as expenditure of an operating or capital nature. 30. Transactions with other Victorian Government Controlled Entities During the 1997/98 financial year, transactions were undertaken with other Victorian Government controlled entities. These transactions are summarised as follows: 1998 1997 $'000 $'000 Intra Inter Intra Inter Assets 8,365,914 689,684 8,385,871 28,666 Liabilities 9,869,613 207 14,458,941 - Revenues 2,716,452 1,123,959 (6,166,017) 731,205 Expenses 927,461 30,141 1,492,647 190,929 'Intra' transactions are between entities within the Department's portfolio. 'Inter' transactions are with entities outside the Department's portfolio controlled by the Victorian Government. Notes to and forming part of the Financial Statements for the year ended 30 June 1998 31. Post Balance Date Events On 21 August 1998 the State sold its 25% interest ¡n the Portland aluminium smelter for approximately $502 million to existing partners in the smelter, China International Trust and Investment Corporation (CITIC) and Marubeni Corporation. At the point of sale, the foreign exchange book of Aluminium Smelter of Victoria Pty Ltd was novated to Treasury Corporation of Victoria and Macquarie Bank at a cost to the State of approximately $100 million. 32. Financial Instruments Interest rate risk The Budget Sector Debt Portfolio (BSDP) is divided into two portfolios, the Core Borrowing Portfolio (CBP) and the Debt Retirement Portfolio (DRP) to manage the conflicting risk management objectives of on-going funding requirements and debt retirement. The management objective of the CBP is to achieve relative certainty of interest costs while minimising net borrowing costs within risk management guidelines. The CBP is therefore composed primarily of fixed rate borrowing facilities which have an even maturity profile across the yield curve. This ensures that a relatively small proportion of the CBP is subject to repricing in any one period. Since borrowings in the CBP will be held to maturity, the CBP is accounted for on an historical cost basis, adjusted for amortisation of discounts/premiums. The management objective of the DRP is to fully utilise privatisation proceeds to repay debt by ensuring that interest rate movements or other market factors do not increase the buy-back price of debt. Management of this portfolio focuses on increasing the proportion of liquid securities in the portfolio to facilitate early debt retirement. As the majority of debt in the DRP will be repaid prior to maturity, the debt in the DRP is accounted for on a mark-to-market basis. The interest rate risk profile of financial assets and liabilities held by the Department is detailed below for the face value outstanding at balance date, where applicable: Fixed Interest Rate Variable 1 year or Over 1 year More than Non-Interest Weighted Interest less to 5 years 5 years bearing Average fíate $'000 S'OOO $ '000 $'000 $'000 Rate % Financial Assets Cash at bank 1,540 - - - - - Overnight investments 229,735 - - - - 4.9 Short term money market trust 349,219 - - - - 4.5 Deutschemark term deposit - - 8,791 - - 7.7 Investments 173,085 - - - - - Loans and Advances Receivable 559,297 - - - - 4.6 Other Receivables - - - - 332,733 - Administered 1,312,876 - 8,791 - 332,733 Cash - - - - 14,783 - Trust Funds 29,217 - - - - - Investments 259,845 - - - - 6.2 Other Receivables - - - - 2,663 - Departmental 289,062 - - - 17,446 1,601,938 - 8,791 - 350,179 Notes to and forming part nf the Financial Statements for the year ended 30 June 1998 32. Financial Instruments - continued Fixed Interest Rate Variable 1 year or Over 1 year More than Non-Interest Weighted Interest less to 5 years 5 years bearing Average Rate $'000 $'000 $'000 $'000 $'000 Rate % Liabilities Fixed interest borrowings - 204,165 2,982,154 4,559,028 - 7.1 Advances from the C'wealth - 27,340 120,112 1,278,769 - 4.4 CPI indexed borrowings 1,013,777 - - - 6.0 Floating rate borrowings 412,415 - - - - 5.4 Overnight borrowings 420,000 - - - - 5.1 Finance lease liabilities 22,265 - - - - - Creditors and Accruals - - - - 50,694 - Administered 1,868,457 231,505 3,102,266 5,837,797 50,694 Finance lease liabilities 343,385 - - - - - Funds held in trust 31,169 - - - - Creditors and Accruals - - - - 8,679 - Departmental 374,554 - - - 8,679 2,243,011 231,505 3,102,266 5,837,797 59,373 Foreign Exchange Risk The Department currently has a Deutschmark term deposit maturing in 1999-00 and cross currency swap contracts outstanding to sell Australian dollars and buy Deutschmarks in 1999-00. These deposits and swap contracts were established in 1989/90 to hedge Deutschmark exposures under various cross-border leasing arrangements. Off Balance Sheet Derivatives The Department does not have any other derivative financial instruments given that the State's debt has been restructured to comprise primarily fixed rate borrowing facilities denominated in Australian dollars. Credit Risk The credit risk on financial assets of the Department is the carrying amount, net of any provision for doubtful debts. There are no significant concentrations of credit risk. Net Fair value for financial assets and liabilities Valuation Approach The carrying amounts of financial assets as listed below, approximate their net fair value. The carrying amounts of financial liabilities generally approximate their net fair value, except where a different valuation is shown. The valuation was based on market rates commensurate with the Treasury Corporation of Victoria rate for similar securities at balance date. for the year ended 30 June 1998 Notes Classification /Is reported Market value $'000 $'000 Financial Assets Cash at bank 1,540 1,540 Overnight investments 229,735 229,735 Short term money market trust 349,219 349,219 Deutschemark term deposit 8,483 8,483 Investments 173,085 173,085 Loans and Advances Receivable 559,297 559,297 Other Receivables 332,733 332,733 Administered 1,654,092 1,654,092 Cash 13 14,783 14,783 Trust Funds 14 29,217 29,217 Investments 14,17 259,845 259,845 Other Receivables 16 2,663 2,663 Departmental 306,508 306,508 1,960,600 1,960,600 Liabilities Fixed interest borrowings 7,815,974 8,341,186 Advances from the Commonwealth 1,175,525 1,173,941 CPI indexed borrowings 1,147,861 1,310,639 Floating rate borrowings 416,000 416,000 Overnight borrowings 420,000 420,000 Finance lease liabilities 22,265 21,809 Creditors and Accruals 50,694 67,133 Administered 11,048,319 11,750,708 Finance lease liabilities 21 343,385 344,040 Funds held in trust 14 31,169 31,169 Creditors and Accruals 20 8,679 8,679 Departmental 383,233 383,888 11,431,552 12,134,596 for the year ended 30 June 1998 Certification We certify that the accompanying Financial Statements for the Department of Treasury and Finance have been prepared in accordance with Part 9 of the Directions of the Minister for Finance under the Financial Management Act 1994, applicable Australian Accounting Standards and other mandatory reporting requirements. We further state that, in our opinion, the Financial Statements and Notes To and Forming Part of the Financial Statements, present fairly the financial transactions during the year ended 30 June 1998, and financial position of the Department as at that date. We are not aware of any circumstance which would render any particulars included in the Financial Statements to be misleading or inaccurate. Colin M Seedy Ian Little Director, Resources Planning Secretary Department of Treasury and Finance Department of Treasury and Finance Melbourne 3 September 1998 Audit Scope The accompanying financial statements of the Department of Treasury and Finance for the year ended 30 June 1998, comprising an operating statement, statement of financial position, statement of cash flows and notes to the financial statements have been audited. The Secretary of the Department of Treasury and Finance is responsible for the preparation and presentation of the financial statements and the information they contain. An independent audit of the financial statements has been carried out in order to express an opinion on them as required by the Audit Act 1994. The audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the financial statements are free of material misstatement. The audit procedures included an examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting Standards and other mandatory professional reporting requirements and comply with the requirements of the Financial Management Act 1994, so as to present a view which is consistent with my understanding of the financial position of the Department of Treasury and Finance and the results of its operations and its cash flows. The audit does not provide any assurances that the Department's systems, or any other systems that the Department relies on in the conduct of its activities such as those of suppliers and service providers are year 2000 compliant, or whether plans and associated actions are adequate to address the year 2000 issue. The year 2000 issue has been addressed only in the context of existing audit responsibilities under Australian Auditing Standards to express an opinion on the financial statements. The audit opinion expressed on the financial statements has been formed on the above basis. Audit Opinion In my opinion, the financial statements present fairly the financial position of the Department of Treasury and Finance as at 30 June 1998 and the results of its operations and its cash flows for the year ended on that date in accordance with Australian Accounting Standards and other mandatory professional reporting requirements and comply with the requirements of the Financial Management Act 1994. C.A. Baragwanath Auditor-General Melbourne 3/9/1998 Appendix 1 - Dirnntory Department of Treasury and Finance Budget Coordination and Research Director Economic and Financial Policy Division Mr lain Bramley 1 Treasury Place Melbourne 3002 Deputy Secretary Location (DX 210759) Mr Glenn Appleyard 4th Floor Location 1 Treasury Place Melbourne 3002 Secretary 5th Floor Tel: (03) 9651 5563 1 Treasury Place Melbourne 3002 Secretary to Treasury and Finance Fax: (03) 9651 5357 Tel: (03) 9651 5113 Mr Ian Little Portfolio Sector A Director Fax: (03) 9651 5414 Location Ms Sue Dahn Level 4 Economic Policy and Financial Strategy Location 1 Treasury Place Melbourne 3002 Director 4th Floor Tel: (03) 9651 6239 Dr Michael Kirby 1 Treasury Place Melbourne 3002 Fax: (03) 9651 5027 Location Tel: (03) 9651 5177 5th Floor Director, Office of the Secretary Fax: (03) 9651 5357 1 Treasury Place Melbourne 3002 Ms Anna Hooi Portfolio Sector B Director Tel: (03) 9651 5543 Location Fax: (03) 9651 5414 Level 4 Mr Jeff Rosewarne Location 1 Treasury Place Melbourne 3002 Finance and Liability Management Director 4th Floor Tel: (03) 9651 5519 Ms Helen Davison 1 Treasury Place Melbourne 3002 Fax: (03) 9651 5027 Location Tel: (03) 9651 6230 5th Floor Fax: (03) 9651 5357 Budget and Resource 1 Treasury Place Melbourne 3002 Management Division Office of Government Procurement and Tel: (03) 9651 5300 Vehicle Services Director Fax: (03) 9651 5334 Deputy Secretary Mr Lance Bailey Mr Frank King Intergovernment Financial Relations Location Location Director 11th Floor 4th Floor Mr Brett Rowse 1 Macarthur Street Melbourne 3002 1 Treasury Place Melbourne 3002 Location Tel: (03) 9651 2162 Tel: (03) 9651 2104 5th Floor Fax: (03) 9651 2161 Fax: (03) 9651 0920 1 Treasury Place Melbourne 3002 Tel: (03) 9651 5350 Principal Consultant Budget Resources Public Sector Employee Relations Director Fax:(03) 9651 0960 Mr Tom Martin Mr Richard Henderson Location Location Risk and Insurance Management Director 8th Floor 4th Floor Ms Elizabeth Eldrldge 1 Macarthur Street Melbourne 3002 1 Treasury Place Melbourne 3002 Location Tel: (03) 9651 5250 Tel: (03) 9651 5095 5th Floor Fax: (03) 9654 6427 Fax: (03) 9651 0920 1 Treasury Place Melbourne 3002 Tel: (03) 9651 5327 Budget Reform Director Victorian Government Accommodation Fax: (03) 9651 2321 Mr Steve Gurr Group Deputy Director Mr John Rickard Location Taxation and Revenue Policy Director Location 4th Floor Ms Claire Thomas 9th Floor 1 Treasury Place Melbourne 3002 Location 1 Macarthur Street Melbourne 3002 Tel: (03) 9651 1069 4th Floor Tel: (03) 9651 2168 Fax: (03) 9651 0920 1 Macarthur Street Melbourne 3002 Fax: (03) 9651 2167 Tel: (03) 9651 6470 Fax: (03) 9651 6495 Privatisations and Industry Transport Reform Unit Executive Director Financial Management Systems Director Reform Division Mr Jim McMeckan Mr Michael de Jong Location Location Deputy Secretary 12th Floor 4th Floor Mr John Perham 1 Macarthur Street Melbourne 3002 1 Macarthur Street Melbourne 3002 Location Tel: (03) 9651 5586 Tel: (03) 9651 5477 5th Floor Fax: (03) 96512877 Fax: (03) 9651 0036 1 Treasury Place Melbourne 3002 Tel: (03) 9651 5369 Victorian Government Property Policy and Management Reform Director Fax: (03) 9651 6487 Group Director Mr Adrian Nye Mr Peter Carroll (Acting) Location Business Enterprises Director Location 4th Floor Mr Alan Hawkes 10th Floor 1 Treasury Place Melbourne 3002 Location 1 Macarthur Street Melbourne 3002 Tel: (03) 9651 5222 8th Floor Tel: (03) 9651 2176 Fax: (03) 9651 1231 1 Macarthur Street Melbourne 3002 Fax: (03) 9651 2169 Tel: (03) 9651 2691 Fax: (03) 9654 6861 Water Reform Director Energy Projects Division Mr Richard Clarke GBE Reform Director Deputy Secretary Location Ms Deborah Radford Ms Chloe Munro 5th Floor Location Location 1 Treasury Place Melbourne 3002 5th Floor 3rd Floor Tel: (03) 9651 2557 1 Treasury Place Melbourne 3002 35 Spring Street Melbourne 3000 Fax: (03) 9651 0890 Tel: (03) 9651 6551 Tel: (03) 9651 3602 Fax: (03) 9651 0034 Fax: (03) 9651 3610 Financial Management Division Program Directorate Director Management Unit Director Ms Lorraine Langley Deputy Secretary Mr Harry De Jong Location Mr Ron Palee Location 5th Floor Location 3rd Floor 1 Treasury Place Melbourne 3002 4th Floor 35 Spring Street Melbourne 3000 Tel: (03) 9651 0743 1 Treasury Place Melbourne 3002 Tel: (03) 9651 3024 Fax: (03) 9651 6487 Tel: (03) 9651 2134 Fax: (03) 9651 3192 Fax: (03) 9651 2195 Project and Outsourcing Energy Policy Director Development Director Financial Accounting and Reporting Mr John Robinson Mr Peter Noble Director Location Location Mr Murray Jones 3rd Floor 5th Floor Location 35 Spring Street Melbourne 3000 1 Treasury Place Melbourne 3002 4th Floor Tel: (03) 9651 3240 Tel: (03) 9651 5793 1 Treasury Place Melbourne 3002 Fax: (03) 9651 3192 Fax: (03) 9651 6425 Tel: (03) 9651 2645 Project Leader Fax: (03) 9651 2293 Reform Policy Director Dr Peter Troughton Ms Una Gold (Acting) Business Management Unit Director Location Location Mr Nick Daicos 3rd Floor 5th Floor Location 35 Spring Street Melbourne 3000 1 Treasury Place Melbourne 3002 4th Floor Tel: (03) 9651 3124 Tel: (03) 9651 5620 1 Treasury Place Melbourne 3002 Fax: (03) 9651 3192 Fax: (03) 9651 5575 Tel: (03) 9651 5411 Fax: (03) 9651 2195 continued Strategic Management Division Solicitor to Treasury and Finance Victorian Casino and Gaming Authority Mr Ian Gibson Executive Director Gaming and Betting Director Location Mr Neil Taylor Mr Bill Lahey 8th Floor Location Location 1 Macarthur Street Melbourne 3002 3rd Floor Level 5, 35 Spring Street Melbourne 3000 Tel: (03) 9651 5714 1 Treasury Place Melbourne 3002 Tel: (03) 9651 3333 Fax: (03) 9651 5951 Tel: (03) 9651 5066 Fax: (03) 9651 3777 (03) 9651 2132 Corporate Resource Agency Strategic Consulting Services Director Statutory Bodies and Ms Kate Molloy Director Business Enterprises Location Ms Deborah Clark Aluminium Smelters of Victoria Pty Ltd 3rd Floor Location (Aluvic) 1 Macarthur Street Melbourne 3002 5th Floor Level 9, Blue Office Tower, The Como Centre Tel: (03) 9651 2108 1 Macarthur Street Melbourne 3002 644 Chapel Street South Yarra 3141 Fax: (03) 9651 2354 Tel: (03) 9651 5145 Tel: (03) 9825 2900 Fax: (03) 9651 0724 Executive Services Director Fax: (03) 9825 2940 Ms Faye Burton Coai Mine Workers' Pension Tribunal Location State Revenue Office 35 Spring Street, Melbourne 3000 3rd Floor Commissioner Tel: (03) 9651 3368 1 Treasury Place Melbourne 3002 Dr David Pollard Tel: (03) 9651 2108 Ecogen Energy (Generation Victoria) Location Fax: (03) 9651 2132 Level 5, 416 Collins Street Melbourne 3000 505 Little Collins Street Melbourne 3000 Tel: (03) 9679 4600 Information Technology and Tel: (03) 9628 0508 Fax: (03) 9679 4619 Telecommunications Director Fax: (03) 9628 0501 Mr Bruce Adams Energy 21 Chief Adviser Policy Location Level 5,196 Flinders Street Mr Rod Rogers 3rd Floor Melbourne 3000 Location 1 Macarthur Street Melbourne 3002 Tel: (03) 9652 5555 505 Little Collins Street Melbourne 3000 Tel: (03) 9651 2411 Fax: (03) 9652 5577 Tel: (03) 9628 0506 Fax: (03) 9651 2354 Fax: (03) 9628 0501 Emergency Services Superannuation Board Human Resource Strategy Director 2nd Floor Divisional Managers Mr Peter Vodlcka 493 St. Kilda Road Melbourne 3004 Ms Rosemary Hehir, Business Services Location Tel: (03) 9866 4544 Mr Paul Broderick, Taxpayer Relations 3rd Floor Fax: (03) 9867 8404 Mr Peter Blight, Policy and Review 1 Treasury Place Melbourne 3002 Ms Pauline Clancy, Compliance Enhancement Gas Services Business Tel: (03) 9651 5288 Location Level 2, 196 Flinders Street Fax: (03) 9651 2132 505 Little Collins Street Melbourne 3000 Melbourne 3000 Resources Planning Director Tel: (03) 9628 0500 Tel: (03) 9652 5705 Mr Colin Seedy Fax: (03) 9628 0501 Fax: (03) 9652 5300 Location Transmission Pipelines Australia Pty Ltd 7th Floor (TPA) 1 Macarthur Street Melbourne 3002 180 Greens Rd Dandenong 3175 Tel: (03) 9651 2310 Tel: (03) 9797 5222 Fax: (03) 9651 2280 Fax: (03) 9797 5295 Hardship Relief Boards Office of the Chief Electrical Inspector Victorian Funds Management Corporation (Land Tax, Probate Duty) 3rd Floor, Building 2 Level 10, 60 Collins Street Melbourne 3000 505 Little Collins Street Melbourne 3000 4 Riverside Quay Southbank 3006 Tel: (03) 9207 2900 Tel: (03) 9628 0000 Tel: (03) 9203 9700 Fax: (03) 9207 2967 Fax: (03| 9628 0501 Fax: (03) 9686 2197 Victorian Government Purchasing Board Hospitals Superannuation Board Office of the Regulator-General 1 Macarthur Street East Melbourne 3002 697 Burke Road Camberwell 3124 1st Floor Tel: (03) 9651 2268 Tel: (03) 9811 9411 35 Spring Street Melbourne 3000 Fax: (03) 9651 2161 Fax: (03) 9813 3392 Tel: (03) 9651 0222 Victorian Managed Insurance Authority Fax: (03) 9651 3688 Ikon Energy Level 2, 84 William Street, Melbourne 3000 Level 8, IBM Building Rural Finance Corporation Tel: (03) 9600 0788 60 City Road Southbank 3006 (Incorporating the Young Farmers Finance Council) Fax: (03) 9600 4528 Toll Free: 132 692 Level 15 Victorian Power Exchange (VPX) Fax: (03) 9926 5580 350 Collins Street Melbourne 3000 Level 14, 452 Flinders Street, Tel: (03) 9243 2600 Kinetik Energy Melbourne 3000 Fax: (03) 9243 2700 Level 19, East Tower HWT Building Tel: (03) 9691 4000 40 City Road Southbank 3006 State Trustees Fax: (03) 9691 4100 Tel: (03) 9299 2666 168 Exhibition Street Melbourne 3000 Victorian Superannuation Board Fax: (03) 9299 2777 Tel: (03) 9667 6444 10th Floor Fax: (03) 9663 4260 Melbourne Port Corporation 35 Spring Street Melbourne 3000 Level 48, Rialto South Tower Stratus Networks Tel: (03) 9651 3222 525 Collins Street Melbourne 3000 1 Wood Street, Thomastown 3074 Fax: (03) 9654 4319 Tel: (03) 9628 7555 Tel: (03) 9463 8222 Victorian WorkCover Authority Fax: (03) 9628 7550 Fax: (03) 9463 8219 (incorporating WorkCover Conciliation Service and Multinet Gas Transport Accident Commission (TAC) WorkCover Medical Panels) 16 Kaikoura Avenue, East Hawthorn 3123 222 Exhibition Street Melbourne 3000 3rd Floor Tel: (03) 9652 4000 Tel: (03) 9664 6666 485 La Trobe Street Melbourne 3000 Fax: (03) 9652 4100 Fax: (03) 9664 6668 Tel: (03)9641 1555 Fax: (03) 9641 1222 Office of Gas Safety Treasury Corporation Victoria (TCV) Toll Free: (1800) 136 089 Level 1, Wool House Level 12,1 Collins Street Melbourne 3000 369 Royal Parade, Parkville 3052 Tel: (03) 9651 4800 Westar Tel: (03) 9341 3800 Fax: (03) 9651 4880 470 Ballarat Road, Ardeer 3022 Fax: (03) 9341 3850 Tel: (03) 9361 7222 Tricontinental Holdings Limited General Inquiries: 1800 069 588 Fax (03) 9361 7332 Level 15, 350 Collins Street Melbourne 3000 Tech Inquiries: 1800 652 563 Tel: (03) 9670 2000 Office of the Administrator SECV Fax: (03) 9600 1295 Level 5 Victorian Channels Authority 452 Flinders Street Melbourne 3000 Level 6, 99 King Street Melbourne 3000 Tel: (03) 9679 4777 Tel: (03) 9612 3512 Fax: (03) 9679 4747 Fax: (03) 9612 3599 Office of the Administrator GASCOR & GTC Victorian Energy Networks Corporation Level 6 (VENCorp) 45 William Street, Melbourne 3000 433 Smith Street, North Fitzroy 3068 Tel: (03) 9932 7841 Tel: (03) 9481 9222 Fax: (03) 9652 4783 Fax: (03) 9481 9269 Appendix 2 - Ants Administered As at 30 June 1998, the Treasurer was responsible for the Payroll Tax Act 1971 administration of part or all of the following Acts of Port Services Act 1995 Parliament: • Sections 2,5-7,10-13, 16-22, 25-52, 64-77, 78(2), 92, 93, 96, 97, 99- Accident Compensation Art 1985 118,124-152, 197-207 and Schedule 1 (the remaining provisions are • Division 7 of Part IV administered by the Minister for Finance, the Premier or the Minister for Roads and Ports) Alcoa (Portland Aluminium Smelter) Act 1980 Probate Duty Act 1962 Appropriation Acts (passed annually) Public Authorities (Contributions) Act 1966 Bank Integration Act 1992 Public Authorities (Dividends) Act 1983 Borrowing and Investment Powers Act 1987 Public Authorities (Sinking Funds) Act 1982 Business Franchise (Petroleum Products) Act 1979 Rail Corporations Act 1996 Business Franchise (Tobacco) Act 1974 • Excluding Sections 14, 15,16, 17, 18, 32 and 36 (these sections are Commonwealth and States Financial Agreements Act 1927 otherwise administered by the Minister for Finance, the Premier or the Crown Intellectual Property (Assignment) Act 1983 Minister for Transport). Debits Tax Act 1990 Rural Finance Act 1988 Debt Conversion Agreement Act 1931 Rural Finance (VEDC Abolition) Act 1993 Educational Institutions (Guarantees) Act 1976 Snowy Hydro Corporatisation Act 1997 Electric Light and Power Act 1958 Snowy Mountains Hydro-Electric Agreements Act 1958 Electricity Industry Act 1993 Stamps Act 1958 Electricity Safety Act 1998 State Bank (Succession of the Commonwealth Bank) Act 1990 Energy Consumption Levy Act 1982 State Bank of South Australia (Transfer of Undertaking) Act 1994 Financial Agreement Act 1994 State Deficit Levy (Repeal) Act 1995 Financial Institutions Duty Act 1982 State Electricity Commission Act 1958 Financial Management Act 1994 State Insurance Office Act 1984 • Sections 1-3, 7, 8, 11, 24-27, 35, 59, 62 and 63 (jointly administered State Insurance Office (Sale) Act 1991 with the Minister for Finance) • Excluding Sections 5, 6, 13-16, 18-23(1), 36-39, 41-61, 65 and 66 State Owned Enterprises Act 1992 - (these sections are administered by the Minister for Finance) • Excluding:- • Division 2 of Part 2 in so far as it relates to the Victorian Plantations Gas and Fuel Corporation (Heatane Gas) Act 1993 Corporation and Water Training Centre - (these provisions are Gas and Fuel Corporation (Repeal) Act 1995 administered by the Minister for Agriculture and Resources) Gas Industry Act 1994 • Division 2 of Part 2 in so far as it relates to the Victorian Interpreting Gas Industry (Extension of Supply) Act 1995 and Translation Service - (these provisions are administered by the Minister for Multicultural Affairs) Gas Pipeline Access (Victoria) Act 1998 State Trustees (State Owned Company) Act 1994 Gas Safety Act 1997 • Excluding Part 4 (these provisions are administered by the Minister for Gift Duty Act 1971 Youth and Community Services) Grain Handling and Storage Act 1995 Statistics Act 1958 • Sections 1-12, 26-39 (the remaining provisions are administered by the Supply Acts (passed annually) Minister for Finance) Tattersall Consultations Act 1958 - Hospital Benefits (Levy) Act 1982 • Sections 4(1), (3) and (4), 5(4) and (5) and section 11 in so far as it Land Tax Act 1958 relates to the making of regulations for or with respect to sections 4(1 ), Loy Yang B Act 1992 (3) and (4), 5(4) and (5) are jointly administered with the Minister for Melbourne Cricket Club Act 1974 Gaming (the remaining provisions are administered by the Treasurer) Miners' Phthisis (Treasury Allowances) Act 1938 Tattersall Consultations (Reporting) Act 1993 Mint Act 1958 Taxation Administration Act 1997 National Electricity (Victoria) Act 1997 Taxation (Interest on Overpayments) Act 1986 Taxation (Reciprocal Powers) Act 1987 Land Act 1958 • in so far as it relates to the exercise of powers relating to leases and Taxation Acts (Reciprocal Assistance) Act 1986 licences under subdivisions 1 and 2 of Division 9 of Part I in respect of Transport Accident Act 1986 land in the Melbourne Casino area, within the meaning of Part 9A of Treasury Corporation of Victoria Act 1992 the Casino Control Act 199V, Treasury Corporation of Victoria (Housing Finance) Act 1995 • in so far as it relates to the exercise of powers relating to leases and licences under subdivisions 1 and 2 of Division 9 of Part I in respect of TT Line Gaming Act 1993 Crown land coloured brown on plans numbered: • Section 11 is jointly and severally administered with the Minister for LEGL./93-211, LEGL./93-212, LEGL./93-213, LEGL./93-214 and Gaming; the Act is otherwise administered by the Minister for Gaming LEGL./93-215 lodged in the Central Plan Office; Victorian Debt Retirement Fund Act 1990 • in so far as it relates to the exercise of powers relating to leases and Victorian Funds Management Corporation Act 1994 licences under subdivision 1 and 2 of Division 9 of Part I in respect of Young Farmers Finance Council Act 1979 land shown as Crown Allotments M1 and M2 on Certified Plan 110473 dated 25/2/1991 and known as Erskine House; • in so far as it relates to the exercise of powers relating to leases and As at 30 June 1998, the Minister for Finance was responsible licences under sub-divisions 1 and 2 of Division 9 of Part 1 in respect of: for the administration of part or all of the following Acts of * Land shown as Crown Allotment 1, Section 100 on Original Plan Parliament: No. 35799 lodged in the Central Plan Office in the Department of Accident Compensation Act 1985 Natural Resources and Environment, • Excluding: * Land shown as Crown Allotment 5A, Section 67D on Certified Plan Division 1 of Part III, Sections 99AA to 99AD; and Division 7 of Part IV No. 104852 lodged in the Central Plan Office in the Department of Natural Resources and Environment, (these provisions are administered by the Attorney-General and the * Land shown as Crown Allotment 19A, Section 67E on Certified Plan Treasurer respectively) No. 116975 lodged in the Central Plan Office in the Department of Accident Compensation (Occupational Health and Safety) Act 1996 Natural Resources and Environment, Accident Compensation (WorkCover Insurance) Act 1993 * Land shown as Crown Allotment 32E, Section 7 on Certified Plan Audit Act 1994 No. 108871 lodged in the Central Plan Office in the Department of • Parts 3, 4 and 5 (the remaining provisions are administered by Natural Resources and Environment, the Premier) * the area of 1608 square metres of land at North Melbourne shown Casino Control Act 1991 - on plan LEGt/96-215 lodged in the Central Plan Office in the • Section 128K(2) (the remaining provisions are administered by the Department of Natural Resources and Environment, Minister for Gaming and the Minister for Planning and Local Government) * Land shown as Crown Allotment 8B, Section 1A on Certified Plan No. 103660-A lodged in the Central Plan Office in the Department Coal Mines (Pensions) Act 1958 - of Natural Resources and Environment, • Part III (the Act is otherwise administered by the Minister for * Land shown as Crown Allotment 4A, Section 1A on Certified Plan Agriculture and Resources) No. 75050 lodged in the Central Plan Office in the Department of Construction Industry Long Service Leave Act 1997 Natural Resources and Environment, Dangerous Goods Act 1985 * Land shown as Crown Allotment 4D, Section 1A on Certified Plan Equipment (Public Safety) Act 1994 No. 112128 lodged in the Central Plan Office in the Department of Natural Resources and Environment, Emergency Services Superannuation Act 1986 * the area of 3643 square metres of land in the city of Port Financial Management Act 1994 Melbourne shown on plan LEG1796-216 lodged in the Central Plan • Sections 5. 6, 13-16. 18-23(1), 36-39, 41-61, 65 and 66 Office in the Department of Natural Resources and Environment, • Sections 1 -3, 7, 8,11, 24-27, 35, 59, 62 and 63 (jointly administered * Land shown as Crown Allotment 4, Section 1A on Certified Plan No. with the Treasurer) 109991 lodged in the Central Plan Office in the Department of • the remaining provisions are administered by the Treasurer Natural Resources and Environment, Government Employee Housing Authority (Repeal) Act 1995 * Land shown as Crown Allotment 103B on Certified Plan No. 109350 Grain Handling and Storage Act 1995 lodged in the Central Plan Office in the Department of Natural Resources and Environment, • Sections 13-25 (the remaining provisions are administered by the * Land shown as Crown Allotment 104B on Certified Plan No. 109349 Treasurer) lodged in the Central Plan Office in the Department of Natural Hospitals Superannuation Act 1988 Resources and Environment; continued Land Act 1958 continued • Sections 14, 15, 17 and 18 (the remaining provisions of the Act are • Division 6 of Part I; Subdivision 3 of Division 9 of Part I; Section 209; otherwise administered by the Treasurer, the Premier or the Minister and the remainder of the Act where it relates to the sale and for Transport) alienation of Crown Lands as set out in Administrative Arrangements Returned Servicemen's Badges Act 1956 Order No. 58; and Road Transport (Dangerous Goods) Act 1995 • Sections 201, 201A and 399 (jointly administered with the Minister for State Casual Employees Superannuation Act 1989 Conservation and Land Management); • (all remaining provisions are administered by the Minister for State Employees Retirement Benefits Act 1979 Conservation and Land Management, the Attorney-General, the State Superannuation Act 1988 Minister for Health and the Minister for Corrections). Superannuation (Compliance) Act 1993 Local Authorities Superannuation Act 1988 Superannuation (Portability) Act 1989 Marine Act 1988 Superannuation (Public Sector) Act 1992 • Division 2 of Part 11 (The remaining provisions are administered by the • Excluding Part 2 (this Part is administered by the Premier) Minister for Roads and Ports) Transport Superannuation Act 1988 Melbourne and Metropolitan Board of Works Act 1958 • Section 42A (in so far as it relates to park and waterway Unclaimed Moneys Act 1962 management, the Act is administered by the Minister for Conservation Victorian Managed Insurance Authority 1996 and Land Management; the Act is otherwise administered by the Workers Compensation Act 1958 Minister for Agriculture and Resources) • Excluding Division 8 of Part 1 (this Division is administered by the Mines Act 1958 Attorney-General) • Division 2 of Part III is jointly administered with the Minister for Agriculture and Resources As at 30 June 1998, the Minister for Gaming was responsible • The remaining provisions are administered by the Minister for for the administration of part or all of the following Acts of Agriculture and Resources Parliament: Occupational Health and Safety 1985 Casino Control Act 1991 Occupational Health and Safety Act 1985 • excluding Sections 128H to 128L (which are administered by the Office of the Regulator-General Act 1994 Minister for Planning and Local Government, excepting section Parliamentary Contributory Superannuation Act 1962 128K(2), which is administered by the Minister for Finance) Parliamentary Salaries and Superannuation Act 1968 Casino (Management Agreement) Act 1993 • Part II (The remaining provisions are administered by the Premier Club Keno Act 1993 Petroleum Products Subsidy Act 1965 Gaming and Betting Act 1994 Police Regulation Act 1958 • Part 5, Division 2 of Part 6, Part 15 and Division 2 of Part 18 are jointly • Part III (the remaining provisions are administered by the Minister for administered with the Minister for Sport; the Act is otherwise Police and Emergency Services) administered by the Minister for Gaming Port of Geelong Authority Act 1958 Gaming Machine Control Act 1991 • Section 13 (the remaining provisions of the Act are administered by • excluding Section 138 which is administered by the Premier the Minister for Roads and Ports) Gaming No. 2 Act 1997 Port of Melbourne Authority Act 1958 • Sections 5(1 )(i), 6, 112(d) and 123 are jointly administered with the • Section 36 (the remaining provisions of the Act are administered by Minister for Sport. the Minister for Roads and Ports) Lotteries, Gaming and Betting Act 1966 Port Services Act 1995 • jointly administered with the Minister for Sport • Sections 53-57, 59-63 and 119-123 (the remaining provisions are Tattersall Consultations Act 1958 otherwise administered by the Treasurer, the Premier or the Minister for • Sections 4(1), (3) and (4), 5(4) and (5) and section 11 in so far as it Roads and Ports) relates to the making of regulations for or with respect to sections Public Authorities (Equal Employment Opportunity) Act 1990 4(1), (3) and (4), 5(4) and (5) are jointly administered with the Treasurer (the remaining provisions are administered by the Treasurer) Public Sector Superannuation (Administration) Act 1993 TT Line Gaming Act 1993 Rail Corporation Act 1996 • Section 11 is jointly and severally administered with the Treasurer; the Act is otherwise administered by the Minister for Gaming. Appendix 3 - Regulatory and legislative Changes Spring 1997 Rail Corporation (Amendment) Act 1997 • To reform the public transport system in Victoria. New or Amending Acts of the Treasurer: Health Services (St Andrew's Hospital) Act 1997 Gas Industry (Further Amendment) Act 1997 • To repeal the St Andrew's Hospital Act 1978 and the St Andrew's • To make further provision for the restructure and reform of the gas Hospital (Guarantee) Act 1978 and to provide that the body corporate industry. known as the Secretary to the Department of Human Services is the Snowy Hydro Corporatisation Act 1997 successor in law of St Andrew's Hospital. • To reform the Snowy Mountains Hydro-electric Scheme by Land Tax (Amendment) Act 1997 corporatising the Snowy Mountains Hydro-electric Authority and • To amend the Land Tax Act 1958 to alter the rates and thresholds making related changes to the Scheme. for land tax. Electricity Industry (Further Miscellaneous Amendment) Act 1997 State Taxation (Amendment) Act 1997 • To provide for further miscellaneous amendments of the Electricity • To make miscellaneous amendments to the Debits Tax Act 1990, Industry Act 1993 and certain other Acts. the Financial Institutions Duty Act 1982, the Land Tax Act 1958, the Gas Safety Act 1997 Pay-roll Tax Act 1971, the Stamps Act 1958 and the Taxation • To make provision for the safe conveyance, sale, supply, measurement, Administration Act 1997. control and use of gas and to generally regulate gas safety. Business Franchise Fees (Safety Net) Act 1997 Port Services(Amendment) Act 1997 • The purpose of this Act is to:- • The purpose of this Act is to:- (a) amend the Business Franchise Acts to remove the requirement for (a) provide for the abolition of the Port of Melbourne Authority, the Port petroleum and tobacco wholesalers and retailers to be licensed or of Geelong Authority and the Port of Portland Authority and enable pay a licence fee; the State Electricity Commission of Victoria to take over their (b) amend the Liquor Control Act 1987 to remove the requirement for remaining property, rights and liabilities; liquor licensees to pay ad valorem licence fees; (b) establish the Hastings Port (Holding) Corporation to carry out (c) authorise the Treasurer to make certain payments and appropriate certain functions in relation to the port of Hastings. the Consolidated Fund for that purpose; Urban Land Corporation Act 1997 (d) make consequential amendments to the Tobacco Act 1987: and • The purpose of this Act is to- (e) make miscellaneous amendments to the Business Franchise Acts la) establish the Urban Land Corporation; and and the Liquor Control Act 1987. (b) repeal the Urban Land Authority Act 1979. Water Acts (Further Amendment) Act 1997 New or Amending Acts of the Minister For Finance: • The purpose of this Act is to- la) remove the rating powers of Melbourne Water Corporation and Construction Industry Long Service Leave Act 1997 enable it to impose fees under a tariff for the purposes of its • To repeal the Construction Industry Long Service Leave Act 1983 and drainage and floodplain management functions; provide for the scheme established by that Act to be administered in (b) amend the Water Act 1989 so as to:- accordance with a trust deed by a company incorporated under the (i) enable charges to be imposed on domestic and stock users of Corporations Law. groundwater in a groundwater supply protection area; Road Transport (Dangerous Goods) (Amendment) Act 1997 |ii) enable permanent interstate trading in water; • The purpose of this Act is to:- (c) amend the Water Industry Act 1994 so as to- (a) exclude certain classes of dangerous goods from the application of (i) remove certain exemptions from the payment of charges; the provisions of the Road Transport Reform (Dangerous Goods) Act |ii) make new provision for the imposition of water restrictions and 1995 of the Commonwealth and the regulations under Part 2 of that prohibitions in times of shortage; Act that apply as laws of Victoria; (d) recognise licensees under the Water Industry Act 1994 as water (b) clarify the application in Victoria of those Commonwealth provisions; supply authorities for the purposes of the Food Act 1984, the Health (c) enable fees permitted to be prescribed under that Commonwealth Act 1958 and the Health (Fluoridation) Act 1973: Act to be prescribed for Victoria under the Road Transport (e) make miscellaneous other amendments to the Melbourne and (Dangerous Goods) Act 1995. Metropolitan Board of Works Act 1958, the Water Act 1989 and the Water Industry Act 1994. Appendix 3 - Regulatory and Legislaive Changes continued New or Ammending Acts for the Minister of Finance continued: Gas Industry (Amendment) Act 1998 • To make provision regulating certain anti-competitive conduct, to Accident Compensation (Miscellaneous Amendment) Act 1997 restrict cross-ownership in the gas industry and to make certain other • The purpose of this Act is to:- amendments to the Gas Industry Act 1994. (a) amend the Accident Compensation Act 1985 for the purpose of changing the scheme for compensation; Gas Pipelines Access (VictoriaI Act 1998 (b) abolish certain rights of action at common law; and • To make provision for the regulation of third party access to natural gas (c) make related amendments to certain other Acts. pipeline systems. Unclaimed Moneys (Amendment) Act 1997 Land Tax (Amendment) Act 1998 • The purpose of this Act is to:- • To amend the Land Tax Act 1958 to introduce an exemption from land (a) provide for the payment of certain unclaimed retirement savings tax for land used as a person's principal place of residence. account money into the Consolidated Fund instead of to the Rail Corporations (Amendment) Act 1998 Commonwealth Commissioner of Taxation under the Retirement • To amend the Rail Corporations Act 1996 and the Transport Act 1983 Savings Accounts Act 1997 of the Commonwealth; so as to- (b) enable the Registrar of Unclaimed Moneys to appoint agents; and la) establish a new statutory corporation to operate rural rail (c) make miscellaneous amendments to the Unclaimed Moneys passenger services; Act 1962. (b) regulate access to certain rail or tram infrastructure and facilitate the entering into of certain leasing arrangements in respect of rail or tram infrastructure; New or Amending Acts of the Minister for Gaming: (c) enable binding Ministerial directions to be given to rail corporations; Gaming Acts (Miscellaneous Amendment) Act 1997 (d) provide for the appointment of an Administrator to the Public • The purpose of this Act is tor- Transport Corporation. fa) amend the Gaming Machine Control Act 1991 to improve regulation St George Bank and Advance Bank Australia Act 1998 of the electronic gaming machine industry; • To facilitate the merger of Advance Bank Australia Limited with St (b) correct a reference in the Gaming and Betting Act 1994 to George Bank Limited. shareholders' voting rights; (c) repeal unproclaimed legislation in respect of investment-related State Taxation (Amendment) Act 1998 lotteries; • To amend the Debits Tax Act 1990, the Financial Institutions Duty Act (d) enable the Treasurer to exempt certain amounts from taxation 1982, the Pay-roll Tax Act 1971, the Racing Act 1958. the Stamps Act under section 77(1) of the Gaming and Betting Act 1994: 1958, the Taxation Administration Act 1997 and the Taxation (e) make various amendments of a statute law revision nature. (Reciprocal Powers) Act 1987. State Trustees (Amendment) Act 1998 • The purpose of this Act is to- Autumn 1998 la) amend the State Trustees (State Owned Company) Act 1994: and New or Amending Acts of the Treasurer (b) make consequential amendments to the Accident Compensation Act Appropriation (1998/99) Act 1998 1985, the Administration and Probate Act 1958, the County Court Act • To make provision for the appropriation of certain sums out of the 1958, the Magistrates' Court Act 1989, the Ombudsman Act 1973, Consolidated Fund in respect of the financial year 1998/99. the Supreme Court Act 1988 and the Transport Accident Act 1986. Appropriation (Parliament) 1998/99 Act 1998 Transport Accident (Amendment) Act 1998 • To make provision for the appropriation of certain sums out of the • To make miscellaneous amendments to the Transport Accident Act 1986. Consolidated Fund for the Parliament in respect of the financial year Victorian Plantations Corporation (Amendment) Act 1998 1998/99. • The purpose of this Act is tor- Electricity Industry (Amendment) Act 1998 fa) amend the Victorian Corporations Act 1993 to- • To provide for the dissolution of Power Net Victoria and to facilitate the (i) provide for the sale of the forestry business of the Victorian reduction of certain amounts and imposts. Plantations Corporation; and Electricity Safety Act 1998 Act 1998 (ii) permit the granting of perpetual licences for land vested in the • To make further provision relating to the safety of electricity supply and Victorian Plantations Corporation; and use and the efficiency of electrical equipment. (b) amend various other Acts in relation to their application to land vested in the Victorian Plantations Corporation and licensees of that land. New or Amending Acts of the Minister for Finance New Regulations of the Minister for Finance in 1997-98 Financial Management (Amendment) Act 1998 142/97 Subordinate Legislation (Dangerous Goods (Liquified • To amend the Financial Management Act 1994 with respect to accrual Gasses Transfer) Regulations 1987 - Extension of output. Operation) Regulations 1997 143/97 Subordinate Legislation (Dangerous Goods (Transport) Regulations 1987 - Extension of Operation) New or Amending Acts of the Minister for Gaming Regulations 1997 Gaming Acts (Amendment! Act 1998 5/98 Occupational Health and Safety (General Amendment) • The purpose of this Act is te- Regulations 1998 la) enable one or more corporate bodies wholly owned and controlled by the trustees of the will and estate of the late George Adams to 3/98 Dangerous Goods (General Amendment) Regulations 1998 conduct gaming activities currently conducted by those trustees; 24/98 Dangerous Goods (Transport) (Amendment) and Regulations 1998 (b) make amendments of a statute law revision nature. 4/98 Equipment (Public Safety)(General)(Amendment) Gaming No. 2 Act 1998 Regulations 1998 • To provide further for the issue of trade promotion lottery permits. 40/98 Road Transport (Dangerous Goods) (Licence Fees) Regulations 1998 New Regulations of the Treasurer in 1997-98 77/98 Financial Management (Amendment) Regulations 1998 146/97 Gas and Fuel Corporation (Gas Installation) (Further 78/98 State Superannuation Regulations 1998 Amendment Regulations 1997 64/98 Audit (Public Bodies) (Amendment) Regulations 1998 147/97 Gas and Fuel Corporation (Supply) (Amendment) Regulations 1997 New Regulations of the Minister for Gaming in 1997-98 148/97 Gas Industry (Supply) (Revocation) Regulations 1997 85/97 Club Keno (Amendment) Regulations 1997 145/97 Land Tax (Equalisation Factors) Regulations 1997 121/97 Gaming Machine Control (Fees) (Amendment) Regulations 172/97 Taxation Administration Regulations 1997 1997 149/97 Treasury Corporation of Victoria (Prescribed Agencies) 109/97 Gaming Machine Control (Returns by Gaming Operators) (Amendment) Regulations 1997 Regulations 1997 108/97 Lotteries Gaming and Betting (Amusement 104/97 Borrowing and Investment Powers (Stocks, Bonds and Machines) (Amendment) Regulations 1997 Debentures) Regulations 1997 25/98 Gaming No 2 (Bingo) Regulations 1998 15/98 Business Franchise (Tobacco and Petroleum Products) 26/98 Gaming No 2 (Fees) Regulations 1998 (Amendment) Regulations 1998 27/98 Gaming No 2 (General) Regulations 1998 7/98 Financial Institutions Duty (Amendment) Regulations 1998 61/98 Subordinate Legislation (State Electricity Commission 28/98 Gaming No 2 (Lucky Envelopes) Regulations 1998 (Cathodic Protection) Regulations 1988 - Extension of 29/98 Gaming No 2 (Raffles) Regulations 1998 Operation) Regulations 1998 30/98 Gaming No 2 (Trade Promotion Lotteries) Regulations 1998 63/98 Land Tax Regulations 1998 31/98 Lotteries Gaming and Betting (Revocation) 66/98 Transport Accident (Charges) (Amendment) Regulations 1998 Regulations 1998 83/98 Rural Finance Corporation of Victoria Regulations 1998 84/98 Debits Tax Regulations 1998 63/97 Financial Institutions Duty (Amendment) Regulations 1997 Information available on request: The Financial Management Act 1994 determines the nature of information that must be included in a Department's Annual Report. Under Ministerial Direction 9.1.3(iv) certain additional information is required to be held by the Department and made available, within the limitations of the Freedom of Information Act 1982. Some of this additional data is included within the appendices of the report as general information. Further requests for information may be made in writing to the Freedom of Information Officer: Freedom of Information Officer Department of Treasury and Finance Level 3 1 Treasury Place Melbourne Vic 3002 Compliance index to disclosure requirements 1997-98 The Annual Report of the entity is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index has been prepared to facilitate identification of compliance with statutory disclosure requirements Clause Disclosure Page" Report of Operations Charter & Purpose 9.1.2 (iii) Comparison of output targets against actual performance 87-90 9.1.3 (i) (a) Manner of establishment and Relevant Minister 5 9.1.3 (i) (b) Objectives, functions, powers and duties 4,58-60,82 9.1.3 (i) (c) Services provided and persons or sections of community served 82 Management & Structure 9.1.3 (i) (d) ( Names of governing board members. Audit Committee & Chief Executive 72 9.1.3 (i) (c Names of senior office holders and brief description of each office 54-56, 82 9.1.3 (i) (c Chart setting out organisational structure 5 Financial and other information 9.' 1.3 (i Me) Workforce data and application of merit & equity principles 68-69 9/ 1.3 (i )(f) Application and operation of FOI Act 1982 66-67 9: 1.3 (i i) (a) Summary of financial results with previous four year comparatives n/a* 9: 1.3 (i i) (b) Summary of significant changes in financial position n/a* 9.' 1.3 (i i) (c) Operational objectives for the year and performance against those objectives 6-16 9/ 1.3 (i i) (d) Major changes or factors affecting achievement of objectives 6-16 9.' 1.3 (i i) (e) Events subsequent to balance date Note 31 9/ 1.3 (i i)(f) Full details of each consultancy > $100,000 70 9.' 1.3 (i i) (g) Number and total cost of consulting engagements, each costing < $100,000 70 9.' 1.3 (i i) (h) Extent of compliance with Building Act 1993 71 9.' 1.3 (i i) (i) Statement that information listed in Part 9.1.3 (iv) is available on request 64 9.' 1.3 (i i) (k) Statement on implementation and compliance with National Competition Policy 83 * Financial data for 95/96 is not comparable due to the machinery of Government changes announced in April 1996. " References to items forming part of the 'Notes to the Financial Statements' are to the relevant 'Note' number, rather than the page number. Clause Disclosure Page*' Financial Statements Statement of Financial operations 9.2.3 (i i) (a) Operating revenue by class Note 1 9.2.3 (i i) (b) Investment income by class n/a 9.2.3 (i i) (c| Other material revenue by class including sale of non-good assets and contributions of assets Note 11 9.2.3 (i 1) (d) Revenue from exchanges of goods or services Note 10 9.2.3 (i i) (e) Depreciation, amortisation or diminution in value Note 6 9.2.3 (i i) (f) Bad and doubtful debts n/a 9.2.3 (i i) (g) Financing costs Note 9 9.2.3 (i i) (h) Net increases or losses on the revaluation of assets Note 24 9.2.3 (i i) (i) Audit expense Note 9 Statement of Financial position 9.2.3 (iii) (a) (i) Cash at bank or in hand Note 13 9.2.3 (iii) (a) (ii) Inventories by class Note 15 9.2.3 (iii) (a) (iii) Receivables, Including trade debtors, loans and other debtors Note 16 9.2.3 (iii) (a) (iv) Other assets, Including prepayments n/a 9.2.3 (iii) (a) (v) Investments by class n/a 9.2.3 (iii) (a) (vi) Property, plant & equipment Note 18,19 9.2.3 (iii) (a) (vii) Intangible assets n/a 9.2.3 (iii) (b) (I) Overdrafts n/a 9.2.3 (iii) (b) (II) Bank loans, bills payable, promissory notes, debentures and other loans n/a 9.2.3 (iii) (b) (ill) Trade and other creditors Note 20 9.2.3 (iii) (b) (Iv) Finance lease liabilities Note 21 9.2.3 (iii) (b) (v) Provisions, including employee entitlements Note 22 9.2.3 (iii) (c) (I) Authorised capital n/a 9.2.3 (iii) (c) (il) Issued capital n/a 9.2.3 (iii) (d) Reserves, and transfers to and from reserves, shown separately Note 24 Statement of Cash flows 9.2.2 (i) (c) A statement of cash flows during the year 22 Notes to the financial statements 9-2.2 (I) (d) Ex-gratla payments Note 9 9.2.2 (i) (d) Amounts written off n/a 9.2.3 (iv) (a) Charges against assets n/a 9.2.3 (iv) (b) Contingent liabilities Note 26 9.2.3 (Iv) (c) Commitments for expenditure Note 21 9.2.3 (Iv) (d) Government grants received or receivable Note 3 9.2.3 (Iv) (e) Employee superannuation funds Note 23 9.2.3 (iv) (f) Assets received without adequate consideration n/a 9.4 Transactions with Responsible persons and their related parties Note 27 9.6.2 Year 2000 Compliance listing of 'business critical systems'. 17 " References to items forming part of the 'Notes to the Financial Statements' are to the relevant 'Note' number, rather than the page number. Appendix 5 - Freedom of Information Freedom of Information FOI Officers This information is now required to be included in the Annual Report The officer responsible for the initial receipt of, and action upon, pursuant to s.7(4) of the Freedom of Information Act 1982 (the Act). requests for access to documents in the possession of the Minister or the Department is: Requests for access to a document in the possession of the • Ms Karen Macdonald (Tel: 9651 2115) Department (excluding the State Revenue Office (SRO) and the Victorian Casino and Gaming Authority (VCGA))are dealt with In respect of the State Revenue Office, the authorised FOI Officer centrally by the Department's FOI Officers. Requests for access to (Acting) is: information in the possession of SRO and the VCGA are dealt with by • Ms Heather Hamilton (Tel: 9628 0515) and in the case of the VCGA, the officer is: the respective FOI Officers of these administrations. • Mr Bill Lahey (Tel: 9628 7327). Making a Request Requests for documents should be made in writing and addressed to FOI requests must be in writing and fall within three categories: either the Principal Officer of the Agency or the Minister as the case • Requests for access to documents of the Agency or of the Minister requires. as the case may be. These requests must contain sufficient Department of Treasury and Finance information to allow the identification of documents concerned; 1 Treasury Place • Requests for amendment of personal records. These requests Melbourne Vic 3002 must sufficiently identify the area of, and manner in which, State Revenue Office personal records should be amended; and 505 Little Collins Street • Requests for internal review of a decision made on an earlier Melbourne Vic 3000 request. These requests should detail the basis on which an internal Victorian Casino and Gaming Authority review is being sought. (This is not obligatory but can be helpful). 35 Spring Street The statement on "Categories of Documents" may be of assistance Melbourne 3000 in identifying the category of documents to which access is sought. It Decision-Making Powers Affecting Members of the Public should be noted that the Act does not entitle applicants to be given access to documents created prior to July 1978 unless it is a Decision-making powers are contained in Acts or Regulations for document that relates to their personal affairs. which the Treasurer, the Minister for Finance or Minister for Gaming have responsibility. A full list of these Acts is provided in Appendix 2 Fees and Charges of this Report. A request must be accompanied by an application fee of $20.00. This fee may be waived or reduced if payment of the fee would cause hardship to the applicant. Categories of Documents The Act also prescribes fees for the provision of documents, based Description of Record Keeping Systems on the schedule of charges detailed in the FOI (Access Charges) The Department (excluding some Divisions and Offices who have Regulations 1993. Main charges are for search time (at $20 per hour) their own record keeping systems) has two separate filing systems. and photocopying (at 20 cents per page). These are the Personnel and the Departmental Records Management Further information regarding the application of the Freedom of filing systems. The latter system contains General Departmental files Information Act 1982 may be obtained from: which includes Cabinet files and Freedom of Information files. • The Act itself; Current and recent files are held at 1 Macarthur Street, East Melbourne. Older files are stored either in off-site secondary storage • The Freedom of Information Handbook; and or at the Public Record Office in Laverton. • Various Regulations made under the Act. The following bodies have their own filing systems: All the publications listed above are available for purchase from • State Revenue Office Information Victoria • Victorian Casino and Gaming Authority 356 Collins Street, Melbourne, Victoria, 3000 For further details on the particular categories of documents held by Telephone 1300 366 356. these bodies, please contact the responsible FOI Officer or the relevant Director of the Division or Office. Department of Treasury and Finance State Revenue Office The Department of Treasury and Finance has prepared the following Requests Received report on Freedom of Information. The State Revenue Office provides its New requests for access to documents 20141 own administrative services and accordingly reports as a separate entity. Requests from previous year finalised in 1997/98 1 Total 21 Requests Received New requests for access to documents 86 Outcome of Requests Requests from previous years 28 Granted in full 9 Total 122 Granted in part 0 Denied 1 Outcome of Requests Transferred in full 0 Granted in full 20 Transferred in part 0 Granted in part 30 Withdrawn 8 Denied 13 Pending at 30 June 1998 3 Transferred in full 9 No document in existence 0 Transferred in part 1 Total 2Î" Withdrawn 0 Fees & charges collected $360 Pending at 30 June 1998® 34 No document in existence 16 Review Process Total 123"> Internal Reviews Sought 5 Fees & charges collected $6,379.41 Granted in full 0 Granted in part 1 Review Process Denied 4 131 Internal Reviews Sought 3 Withdrawn 0 Granted in full 0 Not completed at 30 June 1998 0 Granted in part 0 Administrative Appeals Tribunal Reviews Sought 5 Denied 3 Decided at preliminary conference 0 Withdrawn 0 Withdrawn prior to hearing 4 Charges reduced 10 Settled between parties 1 Charges not reduced 29 Awaiting hearing at 30 June 1998 0 Not completed at 30 June 1998 0 Administrative Appeals Tribunal Reviews Sought 46 Discrepancy between number of requests received and total outcome is due AAT granted full access 0 to a request transfered in part which was granted full access AAT granted part access 0 121 Where FOI officer has not made a decision AAT refused access 0 1311 internal review is from a request received in 1996/97 Decided at preliminary conference 0 Includes 2 matters transferred from DTF Withdrawn prior to hearing 6 Withdrawn at hearing 3 Settled between parties 1 Awaiting hearing at 30 June 1998 38 Appendix 6 - Workforce Data Total Staff as at 30 June 1998 Total staff 1026 Full time 986 Part time 40 Full time equivalent 1014.29 Break Down by Gender Male Female Total Staff Full-time 566 420 986 Part-time 2 38 40 Total 568 458 1026 Breakdown By Division Ir Service Agencies Total EFT Budget & Resource Management 110 109.3 Corporate Resource Agency 57 56.3 Economic & Financial Policy 65 64.3 Energy Projects 20 20.0 Financial Management 59 58.6 Privatisations & Industry Reform 106 106 State Revenue Office 545 536.49 Strategic Management 64 63.3 Total 1026 1014.29 * Staff numbers shown for Strategic Management include staff in the offices of the Treasurer, the Minister and the Secretary. Profile of Executive Officers as at 30 June 1998 Classification Male Variation from Female Variation from Total Variation from previous year previous year previous year EO-1 3 0 1 0 4 0 EO-2 14 +1 4 0 18 +1 EO-3 74 + 2 18 - 1 92 + 1 Total 91 + 3 23 TTi +2 Profile of VPS Staff as at 30 June 1998 Classification Full Time Part Time Male Female Total Mate Female Total VPS-5 98 27 125 1 5 6 VPS-4 126 65 191 7 7 VPS-3 145 136 281 12 12 VPS-2 82 128 210 9 9 VPS-1 18 34 52 4 4 Total 469 390 859 37 38 Profile of Other Staff as at 30 June 1998 Male Female Total Total 7 8 15 Statement on application of merit and equity principles Employee relations The Department is committed to merit and equity principles. They are The Department experienced no lost time due to industrial disputes integral to all aspects of human resource management. During the during the period. reporting period a number of family friendly polices were formalised. These include changes to the carers' leave policy, implementation of Training and Development the telecommuting policy and an executive development scheme for The Department strongly encourages training and development to part time, post graduate studies. assist staff in gaining and enhancing the skills and knowledge necessary to meet its objectives. Apart from access to a wide range Details of assessments and measures undertaken to improve of training courses, a number of other specific development occupational health of employees opportunities were made available to staff. Twenty-one VPS staff The OH&S Committee directs its focus towards legislative were granted scholarships under a scheme created to support them compliance. To assess the level of legislative compliance within the in furthering their professional development. A number of VPS staff Department, an OH&S workplace audit was carried out by NZI and also participated in a pilot 'high potential' development program the Victorian WorkCover Authority, in conjunction with HR Services. designed for the transition to the executive level. Three executives were provided assistance in further studies under the executive Audit recommendations requiring prioritisation and an action plan development scheme. Twenty executives from across the Department were developed by the OH&S Committee. Priorities include: participated in a pilot, executive capability assessment program. • commitment to OH&S through both management and financial support; • a systematic approach to OH&S training, workplace consultation Graduate Recruitment Scheme and issue resolution; The Department participated in the VPS graduate recruitment • a systematic approach to hazard identification, risk assessment scheme, including the accounting and finance scheme sponsored by and risk control; the Department. Participation in the scheme plays an important part • purchasing of goods and services and monitoring of performance in the enhancement of skills to meet the Department's current and against health and safety specifications, and future staffing requirements. Five 1997 Graduate Scheme members rejoined the Department in February 1998 at which time ten • emergency and first aid preparedness. accounting and economics graduates commenced their first placements with DTE WorkCover The Department is establishing a DTF specific economics graduate The Department continues to provide advice to staff on WorkCover recruitment and development scheme to attract and develop high and occupational health and safety issues as required. Three quality economic graduates. This will assist in maintaining and WorkCover claims were lodged during the reporting period, compared developing the Department's knowledge base. to six in the last two periods. The Department's WorkCover premium costs continue to decline. Overview of impact/applicability of programs, services and strategies to achieve a culturally and linguistically diverse society The Department primarily has a policy focus and as a central agency of government provides very limited direct services to the community. The agencies affiliated with the Department offer a variety of interpreter and translating services which aim to meet the customer service needs of our multicultural society. Appendix 7 - Consultants Engaged Consultancy Engagements - 1997-98 Consultancies over $100,000 Consultant Details Payments Future 1997-98 Commitment Arthur Anderson Financial Statements - Quality Assurance $130,000 $97,000 Arthur Anderson Legal and Economic Incidence of stamp duty $162,000 $0 Robert Walters Tristar Forward Estimates Project $124,392 $0 Clayton Utz World Congress Centre - Purchase $104,735 $87,292 Deloitte & Touche Tohmatsu Common Financial Management System $175,000 $0 Hinton & Associates Strategic Communications Advice on Water Industry Reform $113,455 $0 New Zealand Forest Research Forestry Advice & Technical Audit of VPC Plantations $157,647 $50,000 Institute Ltd Oakton Computing Pty Ltd Data Exchange Project $388,313 $500,000 Total $1,355,542 $734,292 Consultant Engagements under $100,000 There were 135 Consultancies at a total cost of $2,964,744 Appendix 8 - Building Act Compliance Standards for Publicly Owned Buildings Global Property Solutions Pty Ltd The Victorian Government Accommodation Group (VGAG), Global Property Solutions Pty Ltd currently manage the service Department of Treasury and Finance, provides management through maintenance contracts for the Government owned premises on an external service provider Global Property Solutions Pty Ltd, of the behalf of VGAG. The responsibilities of this role include identification Government owned office accommodation portfolio including and prioritisation of works required in consultation with VGAG, compliance with standards for publicly owned buildings. managing rectification works and conducting regular inspections to At 30 June 1998 VGAG was responsible for thirty seven Government ensure that work is performed to the standard required. owned buildings. Quality assurance measures have been built into the contract with Global Property Solutions Pty Ltd. Mechanisms to ensure that buildings conform with Building Standards Condition assessments and maintenance reports and specifications All building works which require a building permit under the Building for the maintenance of engineering services have been received for Act 1993 and are undertaken on behalf of VGAG are certified by a all core buildings and the necessary rectification works are being building surveyor as conforming with building regulations and VGAG undertaken progressively. project managers are instructed accordingly. Tenants undertaking Number of buildings conforming with Building Standards works within Government owned premises are required to provide a All thirty seven buildings conform to the Building Standards. building surveyor's certification of conformity as part of the Buildings are considered safe and fit to occupy. In one building conditions of the owner's consent to the work. however this safety level may not extend to some unoccupied areas. VGAG has not sought to exempt works from application of the 10 Funding has now been provided for full refurbishment of this building year liability cap. and is scheduled for completion by mid 2000. Works carried out in Major works projects (>$50,000) the portfolio conform with the Building Act 1993 and Regulations. There have been seven major works completed this financial year Number of buildings which have been brought into conformity and all have been issued with a Certificate of Occupancy or While all buildings conform to the Building Standards six buildings certification by a building surveyor and a Final Certificate. In addition have been substantially refurbished during the year, significantly four redundant infill buildings/extensions on the Treasury Reserve improving the level of safety and standard of accommodation have been demolished after receipt of the required certification. provided. Major works (>$50,000) not subject to certification of plans, Year all buildings are expected to be brought into conformity mandatory inspections of the works and issue of Occupancy Refurbishment works on the one building which may have areas Permits or Final Certificate which do not conform to the Building Standards are expected to be Nil. completed by mid 2000. This will bring it into conformity with the Mechanisms for inspection, reporting, scheduling and Building Act 1993. carrying out of rectification and maintenance works on Arrangements to ensure that only registered building existing buildings practitioners are engaged for public sector works The mechanisms established for inspection, reporting, scheduling and VGAG engages building practitioners listed on the register carrying out of rectification and maintenance works on existing established by the Office of Building, Department of Infrastructure. buildings comprise three parts: Number of cases and circumstances where registered • provision of and management of maintenance service contracts building practitioners became deregistered for all owned buildings; Nil • building inspections, liaison with tenants and responses to issues identified; and • commissioning formal condition, maintenance and compliance reports on buildings. Senior Executive Group The Senior Executive Group is the primary decision-making group of the Department. They set, monitor and review the strategic direction of DTF. Members of the Group are: Mr Ian Little Secretary (Chair) Mr Glenn Appleyard Deputy Secretary, Economic and Financial Policy Mr Frank King Deputy Secretary, Budget & Resource Management Ms Chloe Munro Deputy Secretary, Energy Projects Mr Ron Paice Deputy Secretary, Financial Management Mr John Perharn Deputy Secretary, Privatisation and Industry Reform Mr Neil Taylor Executive Director, Strategic Management Ms Anna Hooi Director, Office of Secretary (Secretary] Department oí Treasury and Finance Audit Committee The Audit Committee's primary function Is to assist the Secretary, the Treasurer, the Minister for Finance and the Minister for Gaming in fulfilling their responsibilities by reviewing the systems of internal controls which management has established, the audit process and the financial Information which will be provided to Parliament and others. Members of the Committee are: Ms Chloe Munro Deputy Secretary, Energy Projects (Chair) Part of Year Mr Stephen Crawford Former Director, Operational Accounting (Chair) part of Year Mr Ron Paice Deputy Secretary, Financial Management (Deputy Chair) Mr John Perham Deputy Secretary, Privatisation and Industry Reform Mr Tom Martin Principal Consultant, Budget Strategy Management Branch Mr Sam Moshlnsky Business and Financial Consultant Mr Kevin Sullivan Financial Management Division (Secretary) Central Agencies Accredited Purchasing Unit The Departments of Treasury and Finance and Premier and Cabinet have established a joint Accredited Purchasing Unit (APU) In response to reforms introduced by the Victorian Government Purchasing Board (VGPB). The role of the APU is to coordinate and oversee purchasing practices and reform within the two Departments. Members of the APU are: Mr Neil Taylor Executive Director, Strategic Management, DTF (Joint Chair) Mr Greg Hyams First Assistant Secretary, Office of State Administration, DPC (Joint Chair) Ms Kate Molloy Director, Strategic Consulting Services. DTF (Deputy Chair) Mr Colin Seedy Director, Resources Planning, DTF Mr Harry De Jong Director, Management Unit, Energy Projects, DTF Mr Kevin Love Assistant Secretary, Cabinet Office, DPC Mr Dennis Carmody Deputy Director, Arts Victoria, DPC Ms Deborah Clark Director, Corporate Resource Agency (CRA) Ms Maggie Llakopoulos Manager, Accounts Payable Et Purchasing, CRA (Executive Officer) Treasury Liability Management Committee (TLMC) The TLMC oversees the risk management activities of the budget sector treasury function. It approves and monitors compliance with Treasury policy and risk limits, and recommends appropriate delegations of authority. The Committee operates under powers delegated by the Treasurer and the Secretary, and outsources the execution of most transactions to the Treasury Corporation of Victoria. Members of the TLMC are: Mr Ian Little Secretary, Department of Treasury and Finance (Chair) Mr Glenn Appleyard Deputy Secretary, Economic & Financial Policy Mr Ron Paice Deputy Secretary, Financial Management Mr Frank King Deputy Secretary, Budget & Resource Management Ms Helen Davison Director, Finance & Liability Management Risk Management Committee (RMC) The RMC reports to the TLMC and is responsible for identification and monitoring of the financial risks of the budget sector and developing strategies for the management of the financial risks of the budget sector within the policy limits set by the TLMC. Members of the RMC are: Mr Glenn Appleyard Deputy Secretary, Economic & Financial Policy Ms Helen Davison Director, Finance & Liability Management (Chair) Mr Ian McLean Assistant Director, Finance & Liability Management Treasury and Finance Communication Sub-Committee The role of the Communication Sub-Committee is to be a conduit for communication issues as they arise in the Department, to monitor the range of communication activities within the Department and propose ways of building on the most effective elements and to sponsor working parties or other new initiatives oriented towards improvement in Departmental communication. Members of the Committee are: Ms Chloe Munro Deputy Secretary, Energy Projects (Chair) Mr Glenn Appleyard Deputy Secretary, Economic and Financial Policy Mr Neil Taylor Executive Director, Strategic Management Treasury and Finance Human Resources and Remuneration Sub-Committee The role of the Human Resources and Remuneration Sub-Committee is to undertake consistent and rigorous decision making in Departmental HR management matters and ensure that HR management policies and practices are consistent with the Department's mission, structure and environment. Members of the Committee are: Mr John Perham Deputy Secretary, Privatisations and Industry Reform (Chair) Mr Frank King Deputy Secretary, Budget and Resource Management Ms Chloe Munro Deputy Secretary, Energy Projects Mr Peter Vodicka Director, Human Resource Strategy (Secretary) Appendix 9 - Boards and Committees continued Treasury and Finance Accommodation Sub-Committee The role of the Accommodation Sub-Committee is to examine accommodation and re-stacking options and develop a proposal for more efficient and effective use of available floorspace. Members of the Committee are: Mr John Perham Deputy Secretary, Privatisations and Industry Reform Mr Frank King Deputy Secretary, Budget and Resource Management Treasury and Finance Information Technology and Telecommunications (IT&T) Steering-Committee The role of the IT&T Sub-Committee is to determine the Department's information technology and telecommunications policies and strategies, ensuring consistency with business strategy and plans and with whole of government IT&T policies and initiatives, and individual major IT&T projects approval, prioritisation and periodic review. Members of the Committee are: Mr Ian Little Secretary, DTF Mr Ron Paice Deputy Secretary, Financial Management (Chair) Mr John Perham Deputy Secretary, Privatisations and Industry Reform Mr Frank King Deputy Secretary, Budget and Resource Management Ms Chloe Munro Deputy Secretary, Energy Projects Mr Neil Taylor Executive Director, Strategic Management The Department of Treasury and Finance either sponsors or has representation on the following committees: • Accrual Based Financial Management Forum • Advisory Panel Consolidated Financial Reporting of Government • All States Fringe Benefits Tax (FBT) Consultation Forum • Australian Statistical Advisory Committee • Bus Contracts Committee • Competitive Neutrality Steering Committee • Council of Australian Governments (COAG) National Health Ministers Benchmarking Working Group (July -December 1996) • Council of Australian Governments (COAG) Steering Committee for the Review of Commonwealth/State Service Provision • DTF/Auditor-General's Consultative Committee • DTF Secretary's Advisory Panel on Accounting • Education - Steering Party Accrual Based Management Reporting • Energy Markets Group • External Reporting Centre of Excellence Australian Society of CPA's • Facility Managers Network • Gas Reform Implementation Group • Heads of Treasuries Committee • Heads of Treasuries Accounting and Reporting Advisory Committee • Heads of Treasuries Fiscal Reporting Committee • Indicative Planning Council for the Housing Industry (Victorian State Committee) Industry Commission - Hospitals Working Group (July - December 1996) • Inter-Departmental Multicultural Services Advisory Committee (IMSAC) • Interjurisdictional Committee for NEM1 • Finance Committee of the Anti-Cancer Council Victoria • Managed Insurance Fund Advisory Panel (to 30/9/96) • Melbourne 2006 Commonwealth Games Bid • Melbourne 2006 Commonwealth Games Bid - Finance Sub-Committee • Minister's Delegates (NEM) • National Electricity Market Interjurisdictional Liaison Group • National Health Ministers' Benchmarking Working Group • National Supply Group • Office of the Public Service Commissioner Joint Advisory Panel • Office of Regulator-General Customer Consultative Committee • Powerlines Relocation Committee • Public Sector Accountant Committee of the Australian Society of CPAs • Public Sector Accounting Standards Board • Shrine of Remembrance Trustees State Emergency Recovery Planning Committee • Standing Committee on Local Government Financial Management • Steering Committee on National Performance Monitoring of Government Trading Enterprises • Supplier Liaison Group • Supply Managers Group • Victorian Emergency Management Council • State-Owned Enterprises Employee Entitlements Committee • Victorian Government Oracle User Group • Victorian Government Purchasing Board (Secretariat) • Victorian Government Purchasing Development Committee • Victorian Grants Commission • Victorian Statistical Advisory Committee Appendix 10 - Overseas Visits From 23 May 1998 to 5 June 1998 Ian Little, Secretary, Department Energy Projects of Treasury and Finance, visited capital markets in Japan, Europe and In July 1997, Peter Troughton, Project Leader, and Andrew Leyden USA. A number of speeches were given. (CSFB) visited Hong Kong, Singapore, Japan, Malaysia, Canada, UK Privatisationsand Indusrty Reform Division and USA for the purpose of establishing buyer interest and promoting competitive bids for the sale of Southern Hydro Limited and During 1997-98, John Perham, Deputy Secretary, made a number of PowerNet Victoria; and for scoping of the international market in visits to New Zealand to discuss regulation reform, water and respect to future privatisation of Victoria's gas assets. transport reform. In September 1997, Geoff Swier, Deputy Project Leader visited Hong From 27 June 1997 to 12 July 1997 John Perham, Deputy Secretary Kong for the purpose of representing and speaking on behalf of the and Richard Clarke, the Director of the Water Reform Unit, visited the Victorian government at a conference of the Institute for UK to consult a number of water businesses, regulators and advisers Infrastructure Finance on 'Opportunities in the Energy Market in concerning water reform in England, Scotland and Wales. Australia'. In December 1997 Deborah Radford, Director, GBE Reform and In February 1998, Peter Troughton, Project Leader, Andrew Leyden Martin Stokie, Policy Analyst, GBE Reform, visited New Zealand to (CSFB), Jeremy Kirkwood (CSFB), Kyle Mangini (CSFB) visited Hong assess New Zealand's post-privatised timber industry and to examine Kong, Singapore, Japan, Malaysia, UK, Europe, Canada and USA for how well small and medium sized timber mills had adjusted to a new the purpose of establishing buyer interest and promoting competitive competitive environment. bids for the sale of Victorian gas assets. In January 1998 John Perham, Deputy Secretary, Jim McMeckan, In March 1998, Peter Troughton, Project Leader, David Nichols, Executive Director, Transport Reform and John Rogan, a Director of Project Manager, and Graham Drinkwater (Macquarie) visited Japan, the Transport Reform Unit, visited the United Kingdom and France to Korea, Europe and USA for the purpose of establishing buyer interest meet with potential bidders for the passenger businesses of the and promoting competitive bids for the sale of Aluvic. Victorian Transport Corporation. Deborah Radford, Director, GBE Reform together with Kevin White, Financial Management Division Managing Director, Victorian Plantations Corporation and Matthew In May 1998 Ron Paice, Deputy Secretary and Steve O'Reilly, former Coren, Warburg Dillon Read, participated in an international roadshow Director, Financial Management Systems visited Oracle USA to to brief potential investors interested in the privatisation of the discuss the implementation of Oracle Financials in American Victorian Plantations Corporation. The roadshow took place between government departments. 14 and 26 June 1998 and the Government's representatives visited Office of Purchasing ft Procurement interested parties in Canada, USA and New Zealand. On 13 November 1997 Lance Bailey, Executive Director, gave a In June 1998 David Greig of the Transport Reform Unit toured presentation at the International Federation of Purchasing and Northern America to meet potential bidders of V/Line Freight. Material Management 10th World Congress in Phoenix, USA on From 29 September 1997 to 2 October 1997 Peter Noble, Director, "Best practice in Global Supply Management". Project and Outsourcing Development, travelled to Hong Kong to study the transport system. Appendix 11 - Publications General Gas User pays - A fairer system of water charging. Accounting and Reporting Bulletins No. 9 -14 Reforming Victoria's Gas Industry - May 1995, 2pp Implementing a competitive structure - Accrual Accounting Manual Other Information Paper No. 3, April 1998, 99pp Annual Financial Statements 1996-97 Assessing Corporatisation Proposals, Market Establishment Project - The Annual Report July 1997, 8pp. (Revised edition) Framework for Market Carriage and Market Implementing Corporatisation Proposals, Annual State Budget Papers Evolution, November 1997, 22pp July 1997, 16 pp BenchMark (Editions 10-15) Reforming Victoria's Gas Industry - Information Government Business Enterprises Reform in Calendar of Information Requests 1997-98 Paper No. 2, June 1997, 78pp (Part A: Departments; and Part B: Non-Sector The Gas Industry in Victoria - A Competitive Victoria - A Guide to the First Three Years Budget Agencies] Future Information Paper No. 1, September October 1992 - September 1995, December 1995, 50pp (to be revised and reprinted) Contingent Liabilities Management Framework 1994,22pp Government Finance Statistics - Training Employee Relations Policy Statement National Competition Policy Package Employee Relations Update Competitive Neutrality (brochure), July 1996 Grain Elevators Board sold to Victorian farmer, Financial Management Act Directions June 1995, 2pp Guide to Implementing Competitively Neutral FINET (quarterly newsletter) Pricing Principles, May 1997, 48pp Guidelines for Loan Council Coverage of Fleet News Infrastructure Projects with Private Sector Ports Involvement Guidelines for Members of Public Sector Boards Reforming Victoria's Ports - Update, Guidelines for Setting Fees and Charges December 1995, 4pp Imposed by Departments and Budget Sector Monthly Statement of Budget Sector Agencies 1997-98 Transactions (Niemeyer Statements) Purchasing Indicative Timetable of Planning and Outsourcing and Contract Management Best Practice Guidelines Budgeting Events to December 1997 Guidelines Best Practice Handbooks: Infrastructure Investment Policy for Victoria, Recognition and Valuation of Non-Current • Standard Form Contracts June 1994, 18pp Physical Assets • Contract Management Investment Evaluation Policy and Guidelines, Statement of Financial Operations • Disposal of Property September 1996,165pp Victoria 1998-A Profile of a Community • Invitation Documents and Process for Investment Evaluation Policy and Guidelines: and Economy Major Acquisitions Water Industry Module, December 1997, 56 pp Victorian Economic Review (issued quarterly) • Operation of Tender Evaluation Team • Specification Writing Policy and Guidelines Outsourcing and Contract Management Electricity Getting the Purchasing House in Order Guidelines, December 1995, 617pp (Revised) Procedural Integrity and Process Auditing in Competitive Structure and Customer Choice Probity Guidelines for Tendering and Privatisations and Contracting Out, March Reduced Bills and Improved Sen/ices Contracting Reforming Victoria's Electricity Industry - A 1997, 13pp Providing Excellences in Procurement 8 Procedural Integrity and Process Auditing in Summary of Reforms, December 1994,110pp Contracting Reforming Victoria's Electricity Industry Stage Privatisations and Contracting Out: Using a Office Copying Equipment 8 Consumables - 'Request for Proposal'Approach, May 1998, Two-A Competitive Future, February 1994, Guidelines to Government Agencies, 12pp 29pp December 1996, 39pp Receipts Retention (Net Appropriation) Special Benefits for Concession Card Holders Selling Goods and Services to the Victorian Guidelines 1997-98 The Electricity Supply Industry in Victoria - A Government Competitive Future (Summary), October 1993, Risk Identification and Allocation Project: Supply Policies and Guidelines Manual Discussion Questions 8 Indicative Risk Matrix, 12pp Towards Procurement Professionalism May 1998, 16pp The Electricity Supply Industry in Victoria - A Victorian Government Purchasing Board State Trustees - Victoria's first State-Owned Competitive Future, October 1993, 80pp Annual Report Company, Revised Edition January 1996, 2pp Victoria's Electricity Supply Industry - Towards The Tax Equivalent System, October 1994, 2pp 2000, June 1997,136pp Water Victorian Outsourcing Activity Survey 1995-96, Financial Management Reforming Victoria's Water Industry - Regional December 1997, 34pp A Guide to Output Specification and Structure for Non-Metropolitan Urban Water Performance Measurement Authorities (Joint Publication), May 1995, A Guide to Output Costing 40pp Appendix 12 - Promntinnal Activités and Presentations made by the Department Delegations Information Sessions and Promotional Activities Presentations were made to several international delegations from • Department of Treasury and Finance Open Days - November 1997 Brazil (7/11/97), China (19/11/97) Mongolia (15/12/97), France and June 1998 (2/2/98) and South Africa (5/6/98) The presentations covered the • Space Utilisation Audit Seminar, 6 October 1997 Management Reform Program, intergovernment relations, • Year 2000 Compliance Seminar, April 1998 privatisation policy and progress and IT developments impacting on • Arrangements for Outsourced Property Management Services, Government through the management and financial reform 5 May 1998 processes. • BRM Quarterly Information Forum initiated for divisional staff. Presentations were made to a delegation from Beijing from 18 Presentations on various financial management reform initiatives November to 22 November 1996 by Departmental representatives on (including the Management Reform Program, Output Based a range of topics including the functions of DTF, State-owned Budgeting, and the Financial Management Amendment Act) were enterprises, asset management and public sector accounting. made by the Management Reform Program Taskforce to the following Presentation was made to the International Monetary Fund delegation audiences: 19 June 1998. • Economic and Financial Policy Forum Victorian Government Purchasing Board (VGPB) • GBE Reform From 9-10 September 1997, VGPB hosted delegates from the Korean • Public Accounts and Estimates Committee Trade Commission and the Korean embassy to discuss whole of government procurement within Victoria. • Victorian Government Purchasing Board On 15 October 1997 VGPB hosted a delegation from the Central • Multi-Media Victoria Department of Premier and Cabinet Planning Committee of the People's Republic of China undertaking • Department of Justice research leading to the development of China's first tendering law. • Department of State Development From 17-28 November 1997, VGPB hosted Mr Babaga Naime, the • Secretaries Advisory Panel Secretary of the Central Tender Board of Papua New Guinea and • The State Opposition provided training on whole of government procurement functions. From 9-10 February, 1998 VGPB hosted the Vice-Minister from France and a delegation from the Ministry of Finance, Socialist Republic of Vietnam researching whole of government approaches to computerised financial and purchasing management. Presentations Title Audience Officer Date Gas Reform in Victoria Australian Liquefied Petroleum Chloe Munro 24 June 1997 Gas Association Ltd -AGM Consumer Protection Regulation: Australian Law and Economics Association Chee-Wah Cheah July 1997 an Economic Perspective Contestabiiity and Competitive Neutrality Supply Purchasing Alliance Chee-Wah Cheah July 1997 Professional Development Issues in Commonwealth-State Social Policy Research Centre Claire Thomas 17 July 1997 Financial Relations Annual Conference Tax Reform: Another Millennium Bug Presentation to IPPA Victoria Mike Vertigan 4 July 1997 Reforming in the Public Interest AIC Conference, Sydney John Perham 4 August 1997 Natural Gas Extension Policy Macedón Ranges Shire Council Peter Clements 6 August 1997 Expression of Interest - Outsourcing of Property Management Industry Frank King, John Rickard, 8 August 1997 Property Management Services David Aughterson Putting the Heat on Victorian Gas Reforms Victorian Gas Reform Conference Geoff Swier 11 August 1997 Management Reform Program Victorian University of Technology Adrian Nye, Ron Paice, 21 August 1997 (Video Conference) Peter Salway Privatisation in Victoria Japanese Delegation John Perham 27 August 1997 Undergrounding Electricity Cables Forum of Municipal Mayors, Peter Clements 27 August 1997 Councillors and Officers Gas Reform & Privatisation National Power Conference Geoff Swier 1 September 1997 Changing Public Sector Culture APEC Study Conference John Perham 1 September 1997 Privatisation in Victoria Beijing Delegation Chloe Munro 5 September 1997 Privatisations in Victoria Australian Graduate School Deborah Radford 10 September 1997 of Management, University of NSW Tax Reform Australian Chamber of Manufactures Claire Thomas 17 September 1997 Speaker to Discussion Group on The Institute for Infrastructure Finance - Geoff Swier 18-19 September 1997 Australian Energy Sector Reform "Australia: Capitalisation on Opportunities Down Under" Conference - Hong Kong Disability Discrimination Act Property Industry/Public John Rickard 30 September 1997 Competitive Neutrality Elicos Andrew McConville & October 1997 Vicky Hudson Building Workable Relationships IIR Conference: Contracting out Bruce Williamson October 1997 with Government A future for Public Service - Centre for Public Policy, Frank King 3 October 1997 Human Resource Management University of Melbourne in a Shrinking Sector Some Lessons in Reform in Government Tasmanian Club Dinner Address Mike Vertigan 3 October 1997 State Based Gas Regulatory Issues Aust co-Gen Assoc Conference : Geoff Swier 8 October 1997 "Sustainable Energy Cost Reduction with Co-generation" Presentation - Gas Reform in Vic. Bills Committee Geoff Swier 14 October 1997 Gas Reform in Victoria - Market Operation Australian Gas Association Convention Geoff Swier 21 October 1997 Privatisation in Victoria OPCV John Perham 13 October 1997 Appendix 12 - Promotional Aotivites and Presentations made by the Department continued Presentations continued Title Audience Officer Date Strategies for Successful Health Australian Private Hospitals Association Peter Noble 16 October 1997 Services Outsourcing Reminiscences: Public Sector versus CPA Conference John Perham 21 October 1997 the Private Sector Planning and Negotiating Outputs IQPC Conference Adrian Nye 21 October 1997 for Business Plans Gas Reform in Victoria Presentation to Media Representatives Geoff Swier 27 October 1997 New Ways of Delivering Budget DTF Open Day Frank King November 1997 Strategy & Management Developing A User-Pays Australian Chamber of Manufacturers Richard Clarke November 1997 Water Pricing Policy Water Industry Conference Privatisation in Victoria Greece Delegation Chloe Munro 3 November 1997 Federal-State Financial Relations Federal State Relations Committee, Claire Thomas & 5 November 1997 and Tax reform Parliament of Victoria Brett Rowse Privatisation of the Victorian Power Industry HR Privatisation Conference Geoff Swier 6 November 1997 Energy Reform in Victoria Brazil Delegation Chloe Munro 7 November 1997 Sector Reviews - Energy Sector ACCC/PURC Utility Regulation Geoff Swier 10 November 1997 in Australia Training Program Victorian Electricity Reforms Japanese Study Mission on Energy Peter Clements 13 November 1997 NSW Power Privatisation: ESAA Conference: Geoff Swier 18 November 1997 "Not if... but when?" "NSW Power Privatisation: Not if... but when?" - Sydney "What Can Governments Realistically Presentation to IPPA Victoria Mike Vertigan 20 November 1997 Achieve?What Should We Expect From Our Public Sector?" New Service Delivery Structures University of Melbourne Engineering Peter Noble 20 November 1997 in the Victorian Public Sector: Foundation Industry Breakfast their Implications for Engineers Water Industry in Victoria Treasurer of Mongolia Richard Clarke December 1997 Impact of Public Sector Reform CEDA John Perham December 1997 on the Private Sector Victorian Government - FMS Status Oracle Consulting Conference Steve O'Reilly 9 December 1997 and Initiatives Social Services: their Outsourcing and AIC Insight Conference, 1998 Bruce Williamson February 1998 Purchase from the Third Sector A Parliamentarian's Guide to Public Accounts and Estimates Committee Melissa Skilbeck February 1998 National Competition Policy Shifting To A Competitive Commonwealth Department of Mike Vertigan 5 February 1998 Environment - The Victorian Experience Finance Annual Conference, Canberra Strategic Planning and Corporate Documents Melbourne Ports Corporation Workshop John Perham 13 February 1998 Water Reform Australian Water and Waste Water Richard Clarke 13 February 1998 Association & Institute of Water Administration Reforming Victoria's Gas Industry IMR Conference - Sydney Chloe Munro 19 February 1998 Title Audience Officer Date Investing in Energy Investing in Energy Conference Geoff Swier 26 February 1998 Financial Management Act and the Ontario Public Service (Tele Conference) Adrian Nye 3 March 1998 Management Reform Program The Victorian Experience: with particular Infrastructure Association of Queensland Peter Noble 4 March 1998 reference to the Risk Sharing Position in the areas of Prisons, Health and Transport Maximising Competition in the Victorian Gas Conference Geoff Swier 17 March 1998 Victorian Gas Market The Achievements of Privatisation Victoria Chamber of Mines Chloe Munro 18 March 1998 Management Reform Program and Institute of Chartered Accountants Adrian Nye 25 March 1998 its implications fro Government Agencies Public Sector Employee Relations Delegation from the Peoples Richard Henderson, 31 March 1998 Republic of China Brian Tresidder, Rod Wells Victorian Government's Policy & Australian Water Er Wastewater Association Glenn Maguire 31 March 1998 Direction in Outsourcing of Water Projects Restructure of the Melbourne World Bank Senior Advisers Study Tour Richard Clarke April 1998 Water Industry Competitive Neutrality and Victorian Hospitals Association Andrew McConville April 1998 Budget Supplementation Transport Reform Railway Association Industry Corporation Jim McMeckan 1 April 1998 The Timetable for Privatisation Public Transport Corporation Jim McMeckan 7 April 1998 1998-99 Victorian Budget Presentation to IPAA Ian Little 22 April 1998 Victoria 1992-1998 Speech to ACDSS Ian Little 23 April 1998 Accrual Output-Based Budgeting Presentation to PAEC Ian Little 29 April 1998 Victorian Economic Trends and Outlook Japanese and European Financial Markets Ian Little May 1998 Competitive Neutrality: Implications Australian Health Services Vicky Hudson May 1998 for Health Services Financial Management Association V/Line Freight Sale Victorian Farmers Federation Jim McMeckan 5 May 1998 Financial Management Act and Australian Accounting Adrian Nye 29 May 1998 the Management Reform Program Research Foundation Victorian Economic Trends and Outlook New York Ian Little June 1998 Implementation of the COAG Reforms: AIC Conference Richard Clarke June 1998 Approaches and Issues The Changing Nature and DTF Open Day Jeff Rosewarne June 1998 Role of the Budget Competitive Policy in Action: IPAA (Queensland) Vicky Hudson June 1998 a Victorian Perspective 1998-99 Victorian Budget Moody's, New York Ian Little 1 June 1998 1998-99 Victorian Budget Standard & Poor's, San Fransisco Ian Little 3 June 1998 Achieving a Competitive Economy DTF - Open Day Ian Little 19 June 1998 Privatisation and Outsourcing in Victoria Chinese delegation John Perham 24 June 1998 Appendix 13 - Functions and Services of the Department The Budget and Resource Management Division: • implements a performance monitoring regime for GBEs; • develops the State's annual Budget and short-term forward • facilitates private sector involvement in infrastructure and service estimate strategy; provision; and • monitors and analyses Budget outcomes and provides advice on • manages the Government's property portfolio and asset sales outlays policy to all Government agencies; program. • develops and communicates financial and management reform The Energy Projects Division: policy and advice to Government agencies; • formulates energy policy advice and pursues the Government's • coordinates and promotes best practice employee relations reform of the electricity, gas and aluminium industries; outcomes in the public sector; • implements reforms to increase efficiency and competition within • provides strategic information, best practice services and advice the energy industries; and relating to resource management in Government in the areas of • manages any energy privatisation transactions, including the central purchasing policies and supply management, and vehicle Government's aluminium interests. fleet management; and • oversees the fitout, refurbishment and management of the The Strategic Management Division provides services Government's office accommodation portfolio. in the areas of: • strategic planning and coordination; The Economic and Financial Policy Division: • executive coordination (ie. business planning, cabinet and • provides advice to the Government on taxation policy and longer parliamentary matters, legislative advice, ministerial & executive term economic development and financial strategy objectives; correspondence); • monitors and forecasts revenue flows, interest and • legal matters; superannuation expenses, and trends in State and national economies; • information technology and telecommunications (IT&T] strategy, policy and corporate projects; • manages State/Commonwealth government financial relationships; and • human resource strategies; and • develops and implements debt, superannuation and risk management • resources planning (ie. Departmental budget and resource strategies and monitors Public Financial Enterprises. allocation). Service Agencies The Financial Management Division: • establishes accounting, financial, risk and asset management The State Revenue Office has overall responsibility for managing standards; the collection of Victorian State taxes and the provision of revenue • maintains the State's general ledger; management services. These taxes and duties include: • provides leadership in Government Financial Reporting; • Payroll Tax; • provides accounting policy and other financial management policy • Land Tax; advice; • Stamp Duty; and • provides timely and accurate information on the State's financial • Financial Transaction Taxes. operations; The Corporate Resource Agency has overall responsibility for the • provides leadership in the provision of financial systems to the provision of corporate services, including: budget sector; • accounting services; • promotes management reform in the public sector; • information services (i.e. IT consulting support, • manages the Government's daily cash position; and telecommunications, management of the IT contracts and IT • administers the Unclaimed Moneys Act 1962. Services Centre, the Joint Departmental Information Centre, and records management); The Privatisations and Industry Reform Division: • human resources services via the management of the outsourced • provides strategic advice on industry and Government Business HR function; and Enterprise (GBE) reform options; • support services (ie. office equipment, purchasing, • implements the Government's non-energy industry reform and accommodation issues, security, travel bookings, etc.) privatisation policy; Legislation Review Legislation Progress Achieved in 1997-98 Borrowing and Investment Powers Act 1987 Review completed Business Franchise (Tobacco) Act 1974 Review no longer required because of tax changes. State Trustees Act 1994 Review completed Tattersall Consultations Act 1958 Review completed Transport Accident Act 1986 Review completed Accident Compensation Act 1984 and Regulations Review completed Electric Light And Power Act 1958 Act repealed Gas Industry Act 1984 and Regulations Competition requirement to be met through substantial industry reform Snowy Mountains Hydro-Electric Agreements Act 1958 Competition requirement to be met through substantial industry reform SEC Act 1958 and Orders and various Regulations Competition requirement to be met through substantial industry reform SEC (Energy Efficiency) Regulations Competition requirement to be met through substantial industry reform Club Keno Act 1993 and Regulations Review completed Gaming Machine and Control Act 1991 Review postponed until 1999 Lotteries, Gaming and Betting Act 1966 Part of this will be included in the above review; part is included in review of the Racing Act 1958 Racing Act 1958 Review underway (Department of State Development) Workers' Compensation Act 1958 Completed as part of review of Accident Compensation Act 1984 State Superannuation Act 1988 Review to be removed from schedule as anti-competitive provision repealed Construction Industry Long Service Act repealed Leave Act 1983 and Regulations 1993 New Legislation (GBEs), enabling legislation was passed during 1996-97 to allow the New legislation introduced during 1997-98 complies with the guiding removal of government ownership based exemptions from State principle that legislation should not restrict competition unless it can taxes and charges and to apply Local Government rate equivalents to be demonstrated that: nominated GBEs. The State taxes and charges affected by this policy are: land tax; stamp duty on mortgages, bonds, debentures and (i) the benefits of the restriction to the community as a whole covenants; water, sewerage and drainage charges; and park rates. outweigh the costs; and (ii) the objectives of the legislation can only The legislative amendments giving effect to this policy are contained be achieved by restricting competition. in the State Taxation /tos (Amendment) Act 1997 and the Miscellaneous Acts (Omnibus No. 3) Act 1997. These amendments Competitive Neutrality Policy affect the Land Tax Act 1958, the Stamps Act 1958, Melbourne Metropolitan Board of Works Act 1958, Water Industry Act 1994 and State and Local Taxes the State Owned Enterprises Act 1992. Consistent with the Government's commitment to apply competitive neutrality policies to significant Government Business Enterprises Appendix 14 - Progress in Implementing National Competition Policy continued Competitive Neutrality Policy - continued Melbourne Ports Corporation and Transport Accident Commission will While it had been intended to commence application of these become liable for stamp duty on mortgages from the date of effect of policies for some GBEs from 1 July 1997, other legislative that legislation. developments during 1997-98 necessitated a change to this Other significant GBEs are either not exempt from the identified State implementation timetable. These included: taxes and charges or are currently undergoing reform prior to • the proposed introduction of amendments to stamp duties privatisation. legislation, as part of the Stamps rewrite project, to provide The removal of ownership based tax exemptions will achieve tax general exemptions from stamp duties on bonds, debentures neutrality between GBEs and their private sector counterparts. The and covenants; and policy involves the removal only of exemptions due to government ownership. It does not affect use-related tax exemptions - in • legislative amendments passed during 1997-98 as part of the particular, exemptions from property based taxes and charges with Government's water reform initiatives which involved the respect to public open space and parklands will be maintained. removal, from 1 July 1998, of exemptions from water and sewerage charges for all connected properties in the metropolitan area, including properties owned by GBEs. Commonwealth Tax Equivalents Consistent with the principle that the benefits of applying competitive Victoria's Tax Equivalent System applying to significant Government neutrality policies should outweigh the costs of their implementation, Business Enterprises commenced in 1993-94 with eight GBEs made it was decided to defer application of State taxes and charges and subject to income tax equivalents. A sales tax equivalent system was local government rate equivalents to nominated GBEs until July 1998, introduced in the following year. at which time: With the ongoing reform and commercialisation of Victorian GBEs • the Victorian Plantations Corporation, Victorian Channels over the last five years, there are now 24 GBEs subject to the tax Authority and Rural Finance Corporation will become liable for equivalent system. New entities to enter the income tax equivalent land tax; regime in 1997-98 included V/Line Freight, Victorian Rail Track, • all connected properties in the metropolitan area owned by Victorian WorkCover Authority, Victorian Funds Management Victorian GBEs will be liable for water and sewerage charges. Corporation and the new gas entities created out of the The Victorian Plantations Corporation, Victorian Channels disaggregation of GASCOR and the Gas Transmission Corporation. Authority, Transport Accident Commission and Urban Land The Tax Equivalent System is administered by the Taxation and Corporation will become liable for drainage and park rates and Revenue Policy Branch. the Melbourne Water Corporation for park rates; and • the Melbourne Water Corporation, Urban Land Corporation, Victorian Plantations Corporation, Victorian Channels Authority and Transport Accident Commission will become liable for Local Government rate equivalents. In addition, subject to the passage of the Stamp Duties Rewrite legislation, the Victorian Channels Authority, Rural Finance Corporation, Melbourne Water Corporation, Urban Land Corporation, Financial Accommodation Levy The largest number of complaints investigated have been in the Consistent with the Competitive Neutrality Policy Statement, the education sector (four in 1997-98) and the health sector (two in following entities were declared during 1997-98 as leviable 1997-98). authorities (pursuant to Section 40 of the Financial Management Act The Complaints Unit has engaged in the following activities during 1994) with respect to the Financial Accommodation Levy (FAL): 1997-98 to promote compliance with the Government's competitive Kinetik Energy Pty Ltd neutrality policy: Westar (Assets) Pty Ltd • presentations to regional hospitals and health sector interest Ikon Energy Pty Ltd groups such as the Victorian Hospitals Association and the Multinet (Assets) Pty Ltd Health Sector Finance Managers Association; Energy 21 Pty Ltd • participation in sessions convened by the Local Government Stratus Networks (Assets) Pty Ltd Compliance Working party; and Gas Services Business Pty Ltd • meeting with university officers to discuss the application of the Transmission Pipelines Australia (Assets) Pty Ltd Government's policy to Universities. Victorian Energy Networks Corporation Melbourne Port Corporation The unit has also participated in roundtable session of Complaints Officers in all jurisdictions, to help clarify common issues. Competitive Neutrality Complaints Unit The unit has adopted the target of finalising investigations within The Competitive Neutrality Complaints Unit in the Department of eight weeks of lodgement. This has mostly been achieved, although Treasury and Finance finalised investigations relating to seven tertiary institutions' summer break has delayed finalisation in two complaints lodged during the 1997-98 financial year. cases. All complaints investigated by the unit have related to activities As well as undertaking formal investigations, the unit has dealt with potentially covered by Model 2 of the Victorian Government policy, some substantial inquiries from potential complainants to provide such as those of government departments, local governments, information about the complaints process. In a number of these universities, TAFEs or hospital networks. No complaints have been cases, the Unit has undertaken initial inquiries to establish whether or lodged relating to activities of Government Business Enterprises not grounds for further investigation exist. which are covered by Model 1. Summary of all complaints for non-compliance with competitive neutrality policy Date of receipt Target of Complaint Summary of Complaint Finding 13/6/97 Monash Medical Centre: It was alleged that the commercial activities Technically no breach of the policy was found Health Technologies Group of the Southern Clinical Radiological Engineering as the hospital timetable only requires Service (SCRES) of the Health Technologies application of competitive neutrality from 1/7/98. Group were subsidised and had competitive Investigation established that SCRES does not advantages enabling them to tender for seek to recover a rate of return on capital and contracts at less than full cost recovery. does have tax advantages, which will need to be offset from 1/7/98. 22/8/97 Melbourne Sports and It was alleged the gymnasium at MSAC had No breach of the policy was established, although Aquatic Centre (MSAC) competitive advantages which allowed it to MSAC was advised that its costing and pricing gymnasium offer low memberships, including a special deal - should be more transparent. offered to residents of Port Phillip. A continued Date of receipt Target of Complaint Summary of Complaint Finding 9/12/97 Hawthorn International It was alleged that Hawthorn submitted a bid l\lo breach of the policy was found as the bid was Education Ltd (part of for an AusAID contact which was not consistent submitted before July 1997, the date for the Melbourne University) with competitive neutrality. application of the policy to business activities of The bid was submitted in June 1997. universities. Even in the absence of the timing issue it was found that Hawthorn was consistent with competitive neutrality policy and any tax advantages derive from legal status not from government ownership. 6/2/98 Energy and It was alleged that ETTA had a competitive A breach of the policy was found. Although the Telecommunications advantage in providing fee for service training TAFE had attempted to comply with competitive Training Australia (ETTA), courses in competition with the private sector. neutrality from July 1997, some practical steps Central Gippsland required to fulfil the Model 2 guidelines had been College of TAFE misapplied. 11/2/98 Soils and Concrete It was alleged that the Laboratory had a A breach of the policy was found. Although the Laboratory, Bendigo competitive advantage in bidding for contracts laboratory had attempted to identify and offset its Campus of to undertake analysis of soil samples. competitive advantages, the Complaints Unit had La Trobe University concerns about the methodology adopted by the Laboratory, and whether it was appropriately pricing its bids. 20/2/98 Hospital Central Linen It was alleged that the linen services of the three No breach of policy was found as hospitals do not Services, in particular regional hospitals have advantages which allow have to apply Competitive Neutrality to their those of Warrnambool them to consistently underquote for work. business activities until 1 July 1998. Hospitals do Base Hospital, Hamilton, have advantages of government ownership (such Hamilton Base Hospital as Tax exemptions) and will be in breach if they do and Wimmera Health not apply Competitive Neutrality after July 1998. Care Group. 28/4/98 School of Earth Sciences, It was alleged that the School of Earth Sciences No breach of policy was found. The University had La Trobe University submitted a bid for an Indonesian Government included Competitive Neutrality adjustments in contract on the basis of subsidised prices. submitting its bid for the contract. While some adjustments lacked transparency, the University indicated its intention to review adjustments from first principles in accordance with the Guide. Application of Competitive Neutrality to significant business activities Completed Investigations Investigations in Progress Upheld Dismissed Ave. time (Breach) (no breach found) to recommend State Government 2 5* 9 weeks 1 Local Government nil nil 1 Total 2 5 9 weeks 2 * Two of these investigations resulted in no breach findings on technical grounds • i. e. the complaint covered matters undertaken prior to the date by which the government business was required to adopt competitive neutrality policies. Appendix 15 - Performance Against 1997-98 Output Targets Specified in the State Budget Output Group Measure Target 1997-98 Performance Advice to Government of Composite index 1-5 4 4 Strategie Policy Advice Financial Management Services Government Financial Accounting, Reports completed within target days Reporting & Control from end of period: • Annual (days) 77 87 days. • Monthly (days) 15 not yet available • Audit report (qualification) nil one Cash Management Services Average daily balance of the budget sector < SO.2 million $0.1 million within target range 12 week cash flow forecasts of the Budget on 1st working day met sector provided to TCV within target period of each week Unclaimed Moneys Administration All verified claims processed within 2 weeks met target period (weeks) Liabilities Management Services Budget Sector interest cost 1997-98 ($m) <$1200 million $782 million in 97-98 Net debt to Gross State Product ratio <9.6% Estimated at 7.9% (public sector) 30 June 1998 (as at 30 June 1998) Taxation Monitoring Services Targeted tax receipts achieved $8593 million $8518 million Intergovernmental Financial Relations General purpose payments received $3518 million Outcome $3,475 million Lower than originally forecast. CPI outcome reduced receipts. Departmental Performance Composite index of Treasurer 4 4 Analysis and Review satisfaction (1-5) Reports delivered on time 90% na Government Business Enterprise Dividend and other revenue targets met 100% 100% Performance Monitoring Services (% met) Composite Index of Treasurer 4 4 satisfaction (1-5) Risk Management Services Risk Management Policy Advice Composite Index of Treasurer satisfaction (1-5) 4 4 and Prudential Supervision Services Number of unidentified risk related problems none none which emerge Infrastructure Project Policy Advice Composite index of Treasurer satisfaction (1-5) 4 4 and Implementation A Output Targets Specified in the State Budget continued Output Group Measure Target 1997-98 Performance Privatisation Services Privatisation of Energy Businesses Time scale - acceptable days movement from Agreed year/quarter 2 sales completed in date agreed. Achieved to schedule agreed agreed quarter between the Department and the Treasurer Bidders satisfaction with the process nil nil (- number of actionable complaints/criticisms) Minimised warranties and indemnities < 1.5% of sale value met (% of sale value) Process auditor sign off (yes/no) yes yes Improved overall position of the State's positive positive net financial position Privatisation of non-energy Composite index of Treasurer satisfaction (1-5) 4 4 Government Business Enterprises Advice to Departments on Composite index of Minister for 4 4 Outsourcing of Government Services Finance satisfaction (1-5) Sale of Surplus Government Property Composite index of Minister for 4 4 Finance satisfaction (1-5) Surplus sales target met 100% 122% $45m (revised to $75m| ($1G0m| Ministerial Services Ministerial Services Composite index of Treasurer, 4 4 Minister for Finance and Minister for Gaming satisfaction (1-5) Reform Services Financial Management Reform Government approval to output management Sept 97 Endorsement received in reform project and implementation timetable December 97 quarter. Financial Management Act passed in March 1998. Project managed in accordance with milestones met milestones met implementation timetable Key stakeholders consulted and informed satisfied satisfied of reforms and progress Advice on Tax Reform Composite index of Treasurer satisfaction (1-5) 4 4 Energy Industry Reform All significant benefits, risks and material 100% 100% options identified All relevant parties receive appropriate 100% 100% consultation National Competition Policy and Composite index of Treasurer satisfaction (1-5) 4 4 Government Business Enterprise Reform Budget Production Budget Development and Composite index of Ministerial 4 3 Production Reform satisfaction (1-5) Budget papers accepted as accurate, rated as satisfactory 80% of reader view complete and well presented (reader survey) or better Budget papers as satisfactory or better Agreed timetable achieved met met Output Group Measure Target 1997-98 Performance Resource Management Services Purchasing and Procurement Services Composite index of treasurer and Minister 4 5 for Finance satisfaction (1-5) Timeliness (% milestones met) 100% 100% Accommodation Services Composite index of Treasurer and Minister 4 5 for Finance satisfaction (1-5) Percentage of dead rent of government 2% 2.3% leased accommodation Timeliness (% available when agreed) 90% 77% of initial project timetables met Public Sector Employee Composite index of Treasurer and Minister 4 5 Relations Services for Finance satisfaction (1-5) Timeliness (no. days to process enterprise 5 met bargaining agreements) Government Land and Composite index of Minister for 4 4 Property Services Finance satisfaction (1-5) Regulatory Services Services for the Victorian Casino Proportion of licence applications where 80% 68% and Gaming Authority recommendations made within target time from lodgement of complete information Number of licences issued 17,700 14,787 Proportion of casino and gaming compliance 80% 88% reviews and investigations completed within agreed timelines Proportion of gambling product approvals 100% 100% processed in standard time from submission to approval Proportion of revenue verification checks 100% 100% and audits completed on time. Policy Advice on Casino and Proportion of research projects undertaken 100% 100% Gaming Matters and released on time Key client satisfaction with timeliness Minister satisfied Satisfied and quality of advice Key client satisfaction with timeliness and Minister satisfied Satisfied achievement of objectives of legislation program Casino and Gaming Governance Satisfaction by Minister and Board of Authority Minister/Board satisfied Satisfied with timeliness and quality Adherence to Statutory requirements and 100% 100% timeliness for Freedom of Information requests Adherence to required timelines for 100% 100% financial reports Adherence to Statutory requirements and Tabled by due date Tabled by due date timeliness for annual report Appendix 15 - Performance Against 1997-98 Output Targets Specified in the State Budget continued Output Group Measure Target 1997-98 Performance Services to users of electricity Number of electrical fatalities per annum 1.66 1.09 (excluding wilful incidents) Compliance of industry with relevant 95% 95% safety codes and regulations (% audit samples! Index of several measures of community reach 68% (revised target) 67% Compliance of manufacturers and retailers to 95% 97.4% energy efficiency testing and labelling regulations. Economic Regulatory Services Key stakeholder groups are aware and informed Dec 97 completed about the Office's approach to the review. A detailed project plan for the conduct Dec 97 Not completed due to a strategic of the review reassessment following appointment of new Regulator-General Timely and efficient collection and analysis Dec 97 An issues paper has been of regulatory data drafted An effective information program for Jun 98 completed 160 Mwh/year contestable customers Issued revised industry codes, guidelines Jun 98 Some reviews have been completed. Distribution code not completed - anticipated by December 1998. Periodic reporting of compliance with industry, Jun 98 Completed for water, partly for codes guidelines and standards electricity. Electricity will be completed by December 1998. Implementation of revised performance ongoing Undertaken for water and reporting regimes electricity Taxation Management Services Taxpayer/Client Advice Client satisfaction with education and compliance 95% 98.9% and Support Services programs provided Client satisfaction with public rulings 95% and publications Timely issue Section 97 certificates 99 in <5 days 91.6% in < 5 days Timely refunds 100 in <60 days 93.48% < 60 days Timely handling of objections 100 in < 60 days 97.62% < 60 days Land Tax assessments amendment rate < 3% 14.8% The target was set before the changes for the 1998 regime were announced. Following the announcement a figure of between 15% and 17% of amendments was struck for planning purposes. Taxation Services to Revenue collected within agreed budget + / - 5% of target + 2.3% Government target set Revenue received within 2 days of due date 90% 97% Revenue banked on day of receipt 99% 99% Ratio of outstanding debt to total revenue < 2% 1.14% Accuracy of cashflow projection + /- 5% + 4.59% Meet Cabinet and Parliament timeframes 100% 100% in Legislation. Victoria OH THE MOVE