NSW Telco Authority Annual Report 2019/2020 Cover photo: Tower delivered under the Critical Communications Enhancement Program at Jolly Nose near Port Macquarie.
Tower under construction as part of the Critical Communications Enhancement Program at Ballina. 03
Contents
Letter to the Minister ______05
Chairperson’s report______06
Managing Director’s report______08
NSW Telco Authority highlights ______10
About the NSW Telco Authority______11
Functions, structure and strategic priorities______13
Customers ______19
Operational performance______22
Operational reviews ______26
Participation in Inquiries and consultations ______27
Major Programs ______31
Governance ______36
A Great Place to Work______40
Cyber Security Attestation______42
Internal Auditors Report______43
Financial statements______46
Matters included in the Statutory Audit Report______78
Accounts______80
Consultants______82
Budget______83
Internal Audit and Risk Management Attestation______85
Human Resources______88
Procurement______92
Work Health and Safety______92
Public Interest Disclosures______92
Government Information (Public Access) Act 2019 ______93
Privacy and Personal Information Protection (PPIP) Act 1998______93
Exemptions______93
Annual Report production______94
Annual Report Compliance Checklist______95 Tower under construction at Casino as part of the Critical Communications Enhancement Program. 05
Telco Authority
The Hon Victor Dominello, MP Minister for Customer Service 52 Martin Place Sydney NSW 2000
Annual Report for year ending 30 June 2020
Dear Minister Dominello
We are pleased to submit the NSW Telco Authority Annual Report for year ending 30 June 2020 for your information and presentation to the Parliament of New South Wales.
The Annual Report outlines the performance of the NSW Telco Authority within the context of our strategic priorities, key achievements and regulatory obligations. The report has been prepared in accordance with the requirements of the Annual Reports (Statutory Bodies) Act 1984, the Public Finance and Audit Act 1983 and the regulations under those Acts.
We acknowledge the work of the NSW Telco Authority, its customers, staff, vendors and the Emergency Services Organisations we work with, for their contribution to our achievements over a challenging 12 months.
Yours sincerely
Beth Jackson Kylie De Courteney Chairperson Managing Director 06 NSW Telco Authority Annual Report
Chairperson’s Report
2020 has been an extremely challenging Timely and accurate information is year in the history of the NSW Telco crucial in determining safe responses to Authority - with major bushfires, floods, emergencies, and it is the clear mission and the COVID 19 crisis all severely of the Telco Authority to deliver a robust, impacting on our operations and our reliable and extensive public safety engagement with Emergency Services network to keep people and places safe. Organisations (ESOs) in their response to Notwithstanding the impacts of the these major events. above events, 2020 has also witnessed I am particularly proud of the role the improved rollout of one of the largest the Authority’s Telecommunications public safety networks in the southern Emergency Management Unit has played hemisphere, providing a world class throughout the year, with the support of operational communications service the whole of the organisation and indeed, regularly achieving above the target that of the Department of Customer availability of 99.95%. Service. As we previously observed during I also deeply appreciate the support the course of this multi-year public provided to the Authority by the NSW infrastructure program, the Government’s Government for the improved public considerable investment brings improved safety network we are rolling out under mission critical communications for the Critical Communications Enhancement emergency services, law enforcement and Program. essential utility and community service providers across the State, with particular The NSW Government’s significant focus for regional and rural areas, where commitment to the public safety network the $50 million Connecting Country amounts to more than $600 million Communities Fund will deliver 150 - the largest commitment to crucial additional mobile towers across the State, communications infrastructure in two along with faster broadband internet decades. services in southern NSW. There are a number of Inquiries underway It is the role of the Authority to lead and at the time of publishing this report, which drive reform of the NSW Government’s may assist with future responses to such operational communications sector. events. The Authority has contributed To this end we are reviewing and significantly to the independent updating the 10-year 2015 Operational consideration of the criticality of effective Communications Strategy, with a specific public safety networks for communication focus on the importance of effective across both ESOs and the general public. partnerships with both our network users and industry. Chairperson’s Report 07
We connect agencies and communities We are lucky that former RFS via the state-wide integrated public safety Commissioner, Shane Fitzsimmons, has Chairperson’s Report network, the Mobile Black Spot Program agreed to remain on the Board following and Connecting Country Communities his move to the role of Commissioner, Fund. Resilience NSW.
The Authority continues to work I would also like to thank Deputy closely with other state and territory Commissioner Malcolm Lanyon, governments to determine the representing the NSW Police Force and a appropriate path to allocation of Public great asset to the Board, and acknowledge Safety Mobile Broadband spectrum the important contribution from Ms Kylie by the Commonwealth. Expedition of de Courteney and her executive team the rollout of PSMB is highly desirable throughout a challenging year. given the concerns as to uniformity of I also thank our business partners communication methods across state and ESOs for their responsiveness, borders and greater data and video flexibility and dedication over the past capacities for ESOs. year. Together with the staff of the During the course of the year, we Authority, the Board is fully committed evaluated responses to a Request For to lead the strategy, development and Proposal released in May 2019, to provide implementation of resilient public safety for the operation and management of telecommunications services to ensure a the extensive network we are building, safer NSW. permitting the Authority to focus on new
applications and services of value to its customers.
I am also pleased to note that the Authority has instituted a stronger Beth Jackson customer focus for all its programs Chair, NSW Telco Authority and initiatives, putting the customer Advisory Board at the centre of everything we do and strengthening our collaboration with industry.
We farewelled Mr Geoff Kleeman from the NSW Telco Authority Advisory Board, and welcomed Ms Emma Hogan, Secretary of the Department of Customer Service. Mr Kleeman’s expertise in commercial matters was greatly appreciated, as was his strong personal interest in the work of the Authority, especially as he is also a Rural Fire Service (RFS) Volunteer. 08 NSW Telco Authority Annual Report 2019/2020
Managing Director’s Report
I am proud to have led the NSW Telco first language is not English, and we have Authority through a year of significant exceeded targets for the employment of growth, change, challenge and people with a disability and women in achievement. leadership positions.
We saw out the 2019/20 financial year We prioritise the development of our in the aftermath of one of the most people. In 2020 we had 56 staff enrolled catastrophic bushfire seasons experienced in 100 Australian Institute of Management in NSW, before heading straight into courses and 40 staff participated in the unfamiliar territory of the COVID-19 managing unconscious bias training pandemic. delivered by the Australian Human Resource Institute. We successfully navigated these challenges and our leadership team Almost one-third of staff undertook continued to build a culture of flexibility training with the Institute of Public and resilience while we transitioned staff, Administration Australia and two customers and vendors to new ways of members of the leadership team are working. enrolled with the Australian Major Projects Leadership Academy which focusses on Prior to COVID-19 restrictions, we had the public sector’s capability to manage started a transition to more flexible and deliver the nation’s large-scale and working arrangements. The pandemic increasingly complex pipeline of major accelerated the switch to remote working infrastructure projects. and how we engage with industry using virtual platforms. Most of our staff worked We continued to rollout our major almost exclusively remotely from March projects, including the delivery of 31 new 2020. sites under the Critical Communications Enhancement Program, during the year During our first 12 months as part of the bringing the total delivered under the new Department of Customer Service we program to 66. expanded significantly, employing more than 120 new staff to support our mission On completion of the program’s current to deliver critical communications for a phase, Public Safety Network land safer NSW. coverage will be 53%, an increase from less than 35% before the program started. Our workforce now meets or exceeds This will achieve population coverage of public sector targets for diversity, with 97%, improving coverage on key road 4.9% of our workforce identifying as routes including the Hume Highway to Aboriginal or Torres Strait Islander, 50% the Victorian border and New England more than the Public Service Commission Highway to Queensland. (PSC) target. We have more than double the PSC target number of staff whose I am pleased to report 169 of the 182 towers, under the first two rounds of Managing Director’s Report 09
the Commonwealth’s Mobile Black I am pleased to say the Public Safety Spot Program, have been completed. Network maintained more than 99.95% The remaining 13 are on track to be availability throughout the bushfire completed by June 2021, providing season. coverage to 22,000 households and We provided detailed submissions to businesses. We are also leading the the NSW Bushfire Inquiry and Royal delivery of an additional NSW Mobile Commission into Natural Disaster Black Spot Program round that includes Arrangements, recommending ways to 21 new towers to provide coverage for an improve the safety of community and first additional 5,000 premises. responders through interoperability and In April, Proof of Concept trials data sharing for those on the front line. commenced in southern NSW to help While the operating environment has enable businesses and residents in Eden been testing, it has helped to inform Monaro and Kangaroo Valley to access our priorities and objectives for the affordable, faster and more reliable coming year, sharpening our focus on our broadband internet services under the customers and how we can provide more Connecting Country Communities Fund. streamlined solutions. Despite some confronting circumstances, We are continuing to play a supporting our staff remained engaged and role in the state’s response to COVID-19, committed more than ever to deliver highlighting the importance of delivering a the best possible mission-critical resilient public safety telecommunications communications network to support network. first responders to help keep people and places safe. I would like to thank our staff, customers and importantly, our Emergency Services What I am particularly proud of in the Organisations, who remain committed last 12 months is the support we provided to working with us to deliver the best to our customers and the community possible outcomes for the people of NSW. during such a relentless bushfire season. Throughout the crisis our teams worked tirelessly behind the scenes to maintain radio coverage and network capacity, by restoring and expanding critical communications to support those Kylie De Courteney involved in firefighting efforts. Managing Director, NSW Telco Authority
Throughout the peak of the fire season between September and February, our Telecommunications Emergency Management Unit provided 24/7 support.
During the bushfires we fast-tracked into operation 24 new or enhanced PSN sites to support firefighting efforts, providing support to our ESO customers wherever we could, including the significant deployment of mobile assets to provide continuity of communications. Telco Highlights 2019/20
Over 99.95% network availability on average
175 consecutive days of 24/7 support to emergency services during the bushfires
66 Critical Communications Enhancement Program sites delivered
9 Mobile Black Spot Program towers delivered, covering around 650 kms of major transport routes
2 Proof of Concept trials for the Connecting Country Communities Fund
250 operational sites on the PSN NSW Telco Authority Portfolio 011
NSW Telco Authority Portfolio
The NSW Telco Authority (the Authority) delivers critical communications to first responders and essential services to keep people and places in NSW safe.
This is achieved through designing, commissioning and managing mission-critical communication services that support Emergency Services Organisations (ESOs) and other essential agencies who protect the community.
The Authority:
• operates and maintains the Public Safety Network (PSN), also known as the Government Radio Network. The PSN provides radio communications for the five NSW ESOs and 45 essential services and government entities
• identifies, develops and delivers upgrades and enhancements to the PSN to improve operational communications for government agencies
• manages all spectrum assets for NSW Government agencies, advocating at a state and national level.
The Public Safety Network
The PSN is one of the largest trunked radio networks in the world. It covers around one third of NSW and has 50,000 radio users.
Next to Australia’s triple zero emergency hotline, the PSN is the most crucial communications network in NSW.
An average of 1.47 million calls are made on the network per month.
Users can participate in shared talk groups across the entire network, increasing their control of communications and duress options.
The Authority works with ESOs, carriers, stakeholders and suppliers to ensure the PSN is available during emergencies and reduce outage times when services are interrupted.
During 2019/20, network availability exceeded the 99.95 per cent commitment to its customers.
Administrative and legislative context
The Authority is a statutory authority established under the Government Telecommunications Act 1991 (NSW). This Act was repealed and replaced by the Government Telecommunications Act 2018 (NSW), which came into effect on 17 December 2018.
The Authority sits within the Department of Customer Service (DCS) within the portfolio of the NSW Minister for Customer Service. It operates under the guidance of the NSW Telco Authority Advisory Board. 012 NSW Telco Authority Annual Report 2019/2020
Government Radio Network Purpose
To provide seamless critical communications to first responders and essential services Network capacity anywhere in NSW at any time Covers more than One of the target 266,000km2 world’s availability around one largest third of NSW trunked radio To build a single radio 99.95% networks communications network with Network usage expanded coverage, accessible to Average 50+ all users via a range of devices 1.47 million Covers more than customers calls/month 266,000km2 around one third of NSW To continue to enhance the 55,000 registered network as new technologies radios emerge so that customers and communities can be confident that critical communications are as resilient as possible during emergencies
Focus areas
Service delivery Spectrum management
• Operate and maintain the PSN for • Oversee and coordinate use of the more than 55,000 radio users spectrum
• Advocate for spectrum on behalf of the NSW Government Major programs
• Critical Communications Enhancement Program Telecommunications and emergency management • Public Safety Mobile Broadband • Coordinate emergency and incident • Mobile Black Spot Program telecommunications • Connecting Country • Link between commercial carriers, Communications Fund radio network and ESO’s during • Operate and Maintain Transformation emergency operations
NSW Telco Authority Portfolio 013
Functions NSW Emergency Management Framework
Under the state’s Emergency Management Framework, the Authority has responsibility for coordinating functional area support and resources for emergency operations in all phases of emergency management involving telecommunications.
The State Emergency and Rescue Management Act 1989 provides the legislative framework for the operation of the telecommunications emergency management activities of the Authority. Telecommunications Emergency Management Unit
The Authority’s Telecommunications Emergency Management Unit (TEMU) coordinates telecommunications services during an emergency and acts as the conduit between government and telecommunications carriers. TEMU works with ESOs, carriers and suppliers to ensure the PSN is available during emergencies and reduce outage times when services are interrupted.
TEMU forms part of the State Emergency Management Committee and in an emergency will deploy a liaison officer to the State Emergency Operations Centre. As well as participating in a range of emergency management committees, disaster management workshops and exercises, TEMU will provide information on hazards to telecommunications carriers and may assist them to access critical infrastructure during a major incident.
Telecommunications Services Functional Area
The Authority’s Telecommunications Services Functional Area (TELCOFAC) operates 24 hours a day, seven days a week. It plays a critical role in managing PSN operational activities, telecommunications carriers, public safety agencies and other partner agencies through the four phases of emergency management (prevention, preparation, response to and recovery from hazards that impact communities).
During 2019/20, TELCOFAC focused on strategic and operational improvements and played a significant role in maintaining and restoring communications for first responders during the challenging summer bushfire season.
TELCOFAC is providing ongoing support to the NSW Government’s response to the COVID-19 pandemic and has expanded its resources to strengthen its capacity to respond to major incidents.
TELCOFAC is continuing negotiations with the carriers and the Commonwealth to ensure consistent operational outcomes and drive enhanced partnerships to deliver better outcomes for public safety agencies and the community.
NSW State Telecommunications Services Functional Area Supporting Plan
The Authority manages the NSW State Telecommunications Services Functional Area Supporting Plan (TELCOPLAN) that supports the NSW Emergency Management Plan.
During an emergency, the Authority enacts both plans to coordinate telecommunications support to sustain mission-critical public telecommunication services to the community and PSN, as well as operational communications to responders during emergencies. 014 NSW Telco Authority Annual Report 2019/2020
FUNCTIONAL STRUCTURE
James Corkill - Chief Technology Officer Develops services and technology solutions to meet the strategic and business goals of the Authority and its partner agencies Responsible for planning, performance and assurance of operational telecommunications solutions.
Jim Henry - Director Telecommunications Emergencies Coordinates telecommunications during emergencies and incidents in NSW, from the prevention to recovery phases Links the telco carriers, Public Safety Network (PSN) and Emergency Service Organisations during emergency operations.
Peter Skiffington - Director Major Programs Delivers the Critical Communications Enhancement Program (CCEP) of work. The CCEP is delivering an enhanced, PSN to improve emergency and day-to day Kylie De Courteney operational communications for a wide range of NSW Managing Director Government agencies, including public safety, law enforcement and essential services.
Vacant - Director Client and Stakeholder Services Danielle Keogh Provides an end-to-end enterprise view across the Executive Officer Authority’s client and stakeholder landscape; governance forums; programs, products and services. Oversees issues that may impact the Authority internally and externally.
Kristy McKinnon - Director Commercial Delivers commercial capabilities that foster innovation, build supplier partnerships, and maximise value for our customers. Provides financial stewardship on all aspects associated with key stakeholders.
Alan McNamara - Director Program Delivery Directs and oversees the efficient and effective delivery of programs (internal and Whole of Government) and the Enterprise Project Management Office.
Jane Want - Director Strategy Risk and Performance Responsible for auditing, Business Continuity Management and Work Health and Safety.
Responsible for the coordination and development of strategic policy from a technical perspective.
Works collaboratively to support the Managing Director in matters of project governance, and strategy. Functional Structure 015
SENIOR LEADERSHIP TEAM (AS AT 30 JUNE 2020)
Kylie De Courteney BCom Kirsty McKinnon BPE Managing Director Director Commercial
Kylie is an experienced senior Kirsty has extensive experience executive with expertise in complex delivering large-scale programs program delivery and organisational across the government and transformation. Kylie is passionate telecommunications sectors. Kirsty about the digital transformation of identifies interdependencies across government and customer-centric commercial and project workstreams, service design. Kylie joined the implements remediation plans where Authority in 2019. necessary and ensures stakeholders are kept well informed of progress Kylie holds a Bachelor of Commerce and challenges. Kirsty joined the and has worked in strategy, mergers Authority in 2019. and acquisitions, program delivery, customer experience and operational At Service NSW, Kirsty managed performance improvement in the the delivery of advanced in-house private and professional services analytics and performance reporting. sectors, and federal and state She has also led facilitation of government. performance reviews and data-driven decision-making with both internal and external partners.
James Corkill BEng (Hons) Peter SkiffingtonBSc (Hons) Director Major Programs Chief Technology Officer James has technical experience Peter joined the Authority in 2019 across major telecommunications and leads the delivery of the Critical projects within NSW Government’s Communications Enhancement telecommunications network. James Program. Peter holds a Bachelor joined the Authority in 2016. of Science and has more than two decades experience in commercial James has helped deliver large- management, delivery and customer scale telecommunications projects relationship management for that align with broader government telecommunications, IT and major objectives and meet state customer infrastructure contracts. needs. James has also worked as a Senior Wireless Engineer with NBN Co Limited and as a Senior RF Engineer (LTE & WiMAX) with Ausgrid. 016 NSW Telco Authority Annual Report 2019/2020
Alan McNamara MCP, AMPLA Jim Henry MDS, BEd Director Planning and Projects Director of Telecommunications Emergencies With experience in government spanning more than 15 years, Alan has Jim coordinates telecommunications executive and hands-on experience during major incidents and delivering strategic direction and emergencies in NSW including the corporate objectives. He is a results- prevention and recovery phases. Jim driven leader with a solid governance joined the Authority in 2019. background and strengths in building Jim holds a Masters of Defence and retaining high-performing Studies and Bachelor of Education teams to deliver complex projects and has more than 20 years and quality services. Alan joined the experience in security and Authority in 2015. emergency management roles. Alan is results-oriented and focused Jim has spent a decade as a senior on customer service excellence. executive focussed on reforming and Alan leads the delivery of a range developing capability and capacity of organisation-wide and whole- in protective security, disaster of-government programs and has preparedness and resilience. extensive experience in senior leadership roles in project delivery, technology strategy and operations. Jane Want BSA(Hons), MIL Alan is a Microsoft Certified Director Strategy, Risk & Professional, PRINCE2 Foundation Performance and Practitioner and is currently studying with the Australian Major Jane joined the Authority in 2020. Projects Leadership Academy. Jane is experienced in leading transformation and industrialisation of underperforming programs to deliver best-practice service offerings, designed around the needs of business customers. Through her work in the university and telecommunications sectors, Jane has specialist knowledge in commercialising engineering technologies and innovation. Strategic Priorities 017
Strategic Priorities
The Authority’s 2020/21 Corporate Plan outlines the purpose, objectives, goals and values that underpin all operating principles. The plan aligns with NSW Government State Priorities and is available at www.telco.nsw.gov.au
The Authority’s operating principles are based on eight strategic priorities:
• Create a single, expanded communications network to reduce duplication and provide an integrated, interoperable network for emergency services
• Shape a competitive market, increase contestability and deliver better value-for-money communications
• Improve mobile coverage across the state, enhancing regional and remote NSW through improved and reliable high-speed broadband internet
• Develop evolved, resilient and secure critical communications capability to support existing and future data and video-based services
• Oversee and coordinate the use of spectrum for emergency services and advocate at a national level for spectrum allocation for use by these agencies on behalf of the NSW Government
• Ensure the effective use and coordination of emergency communications services during incidents and emergencies and provide a link between commercial carriers, emergency services and the radio network
• Contribute to the government response to recent natural disasters, including recommending ways to improve the resilience of critical infrastructure
• Value and develop our people to make the NSW Telco Authority a great place to work.
Supporting State Priorities
State Excellence Digital Competitive, Priorities in customer leadership and fair and secure service innovation markets
NSW Create a single, integrated Leverage technology, Shape a competitive, contestable market Telco telecommunications and work with industry portfolio, capable of to develop new for operational Authority providing voice, video technologies to support communications to Strategic and data services to service delivery, connect deliver greater value Priorities customers, now and into communities and uphold to government and the the future. the security of the community. network. 018 NSW Telco Authority Annual Report 2019/2020
VALUES
The Authority’s culture is built on the values of Service, Transparency, Accountability, Integrity, Respect and Safety.
Service Transparency Accountability
Integrity Respect Safety
Service Trust Provide services fairly with a focus on Appreciate differences and welcome customer needs. learning from others. Be flexible, innovative, trusted and reliable Uphold the law, and respect government in our service delivery. and democratic principles. Focus on a culture of quality while Communicate intentions clearly, invite maintaining service delivery. teamwork and collaboration. Provide apolitical and non-partisan advice.
Accountability Recruit and promote staff on merit. Integrity Provide transparency to enable Consider people equally and without public scrutiny. prejudice or favour. Observe safety standards. Act professionally with honesty, consistency and impartiality. Be fiscally responsible and focus on efficient, effective and prudent use Take responsibility for situations, showing of resources. leadership and courage. Place the public interest over personal interest. Respect Value diversity and listen to a range of perspectives and stories. Safety Prioritise the safety and security of our Support opportunities for flexibility to communities. balance work with other aspects of our lives. Support solutions and processes that allow those in public service to work Treat people with kindness and dignity safely and effectively together. Honour our expertise, feedback and Take responsibility for our own safety and learning from experience. the safety of our colleagues and partners through a critical risk, zero harm focus, where a culture of safety leadership in action is embedded in all that we do. Customers 019
Customers
Commitment to customer service
The Authority adopts the NSW Government Customer Commitments which are our promise to customers of what they should expect when receiving government services.
Easy to Act with Respect Explain what Resolve the Enagage engage empathy my time to expect situation with the community Make it easy Show you Tell me what I Be clear about Be accountable to access understand need to know what steps are for your actions Listen to the my situation beforehand involved community to what I need Be clear in understand Treat me fairly Minimise the Contact me decision Make it simple our needs for me to & with respect need for me to when I need to making repeat myself know something Ask us how understand Provide service Reach an we want in my time of Make what I Let me know outcome our services need need to do what the delivered straightforward outcomes could be
Stakeholders
The Authority works with ESOs, government agencies, vendors and industry with a focus on continuously improving the customer experience. A range of programs are being delivered in partnership with industry such as the Mobile Black Spot Program, CCEP and the Connecting Country Communities Fund.
The Authority held its first Technology Innovation Forum for ESO customers in May 2020 with a focus on resilience and the role of technology. These forums provide an opportunity to present the latest innovations directly to the Authority and its customers and understand how these solutions can assist in future public safety planning. Further forums will be held during the next 12 months and serve as a regular platform for industry collaboration from a state, national and international perspective.
The Authority continues to work closely with regulators in other jurisdictions as well as Commonwealth agencies, to improve mission-critical communications across borders and to develop common operating protocols to enhance emergency management. 020 NSW Telco Authority Annual Report 2019/2020
Customers
The Authority’s customers require radio communication technology to deliver critical frontline services to support public safety, environmental protection and other government services.
The Authority supports its customers by providing dedicated account managers who ensure their day-to-day needs are met. This includes providing solutions to operational issues, technical support, spectrum management, support for the procurement of telecommunications devices and reliable network coverage.
A total of 50 organisations use the PSN, including the five ESOs within NSW and 45 other essential services and government agencies. The number of registered radios accessing the PSN increased by 7,000 during 2019-20 to 59,000.
Government Agencies
Customers
Emergency Community NSW Telco Services Services Community Authority Services
Essential Services
Improving the customer experience
The establishment of a Customer Experience Framework is a key initiative for the Authority’s Stakeholder and Customer Services team.
In December 2019, the Authority conducted its first Customer Satisfaction Survey with 70% of respondents expressing satisfaction with the Authority’s PSN products and services.
The Authority has established new customer experience targets for 2020/21:
• 5% increase in the overall customer satisfaction score, from 70% to 75%
• decrease in customer effort score from 2.3 to 1.5, which measures how easy it is to do business with the Authority. (The lower the score, the easier it is.) Customers 021
PSN user pricing and charges
The PSN is designed to provide critical communications for ESOs while also providing a non-critical communications platform for other government agencies and approved users.
ESO customers are charged a flat fee for PSN connectivity, irrespective of handset numbers or network usage. This fee reflects the costs incurred in supplying the service.
Non-core users of the PSN pay a fee-per-handset and a charge for each talk group.
The Authority operates the PSN on a full cost recovery basis, which includes a return on capital for services provided by the network. A review of the existing pricing methodology was conducted between March and June 2020. A new pricing model will be implemented from July 2021.
50 organisations use the PSN
59,000 registered radio users
64% of customers were satisfied with the way the Authority communicates with them
65% of customers were satisfied or extremely satisfied with the Authority’s services 022 NSW Telco Authority Annual Report 2019/2020
Operational Performance
NSW bushfires
During the bushfires the Authority ensured the continued operation of the PSN supporting all ESOs and other government agencies in providing frontline services.
This included 24-hour emergency coordination of telecommunications support for the NSW Rural Fire Service, Fire and Rescue NSW, NSW Ambulance, NSW State Emergency Service and NSW Police Force.
TEMU managed significant and widespread telecommunications outages and acted as a link between ESOs and carriers, arranging air transport or escorts for accessing damaged critical infrastructure.
Additional field staff were mobilised in bushfire affected areas, who established joint communications strike teams with emergency services to ensure rapid and safe access to damaged sites.
The sites were made operational using temporary satellite infrastructure, to provide essential and enhanced radio communications coverage for ESOs.
A total of 13 satellite communication systems were installed to provide backhaul solutions or hardening resiliency for sites brought online early on the North Coast of NSW.
Support for ESOs
Support included restored and expanded critical communications for those involved in firefighting efforts where existing infrastructure was destroyed or mains power supply was not available.
The Authority also worked with the Australian Defence Force to airlift satellite equipment from Coffs Harbour to Cooma to quickly provide radio coverage support as bushfire activity increased on the NSW South Coast.
24 new or enhanced PSN sites being delivered under the Critical Communications Enhancement Program (CCEP) were fast-tracked to support firefighting efforts.
Damaged infrastructure
A total of 11 PSN sites were damaged during the 2019/2020 bushfires. Two existing PSN sites at Mt Wandera and Budawangwere were destroyed and are being replaced. Another government radio site at Timbillica Hill was also destroyed and will be replaced with a new PSN site.
Where existing radio network infrastructure had been damaged, Cell on Wheels (CoWs) units – portable base stations used to provide temporary network coverage – were deployed in eight regions across NSW to ensure frontline workers could continue to communicate. Operational Peformance 023
More than 200 deployments of mobile assets including CoWs, generators and network capacity expansion kits, were used or placed near fire impacted areas to quickly provide support if required
Throughout the bushfire season more than 140 portable generator deployments ensured electricity supply was maintained in areas where mains power had been damaged.
As well as its operational response, the Authority deployed a range of assets on standby, such as generators, CoWs and capacity expansion kits to manage radio congestion at sites ‘at-risk’ of being impacted by fire.
Impact on the PSN
Between November 2019 and February 2020 more than 10 million calls were handled on the PSN.
In December 2019, more than 1.9 million calls were made – a 47 per cent increase from the busiest months leading up to the bushfire season.
Burnt cables on a tower at Mt Wanderer Cells on Wheels provide temporary communications infrastructure to help ensure continuity of coverage so the Public Safety Network remains operational for frontline responders when existing infrastructure is damaged.
TEMU staff of 4 worked 175 consecutive days providing more than 2,000 additional hours of support outside of their core shifts to save vital communications infrastructure. 24 10 CCEP sites Million + fast tracked PSN calls
36 13 CoW Satellite unit deployments deployments
140 Generator 40 Capacity deployments expansion kits
11 PSN sites damaged
3 Destroyed
Photo by: Kyle Gibson, courtesy NSW National Parks and Wildlife Service Operational Peformance 025
Economic and other factors COVID-19
In response to the emerging risks from the COVID-19 pandemic, the Authority:
• identified critical positions and staff
• requested all staff prepare personal action plans, based on their individual circumstances
• requested and received business continuity plans from major suppliers and partners
• updated the enterprise business continuity plan
In March 2020, the Authority activated its business continuity plan, including dispersed staffing arrangements for critical network operations personnel, while enacting the DCS remote working protocol for all other staff.
The Authority liaised with industry regarding data usage profile changes as a result of remote workforces and the need to ensure access to critical systems during an emergency. Industry considered a range of options such as ‘throttling back’ data streams for entertainment purposes to prioritise critical sites if required.
The Authority provided a liaison officer to the State Emergency Operations Centre from 17 March to 8 May 2020 to support the whole-of-government response to the pandemic.
The Authority is engaging with other jurisdictions regarding travel restrictions and is advocating on behalf of the industry to allow cross-border movement of essential workers. It also assisted Service NSW process around 5,000 travel exemption requests from members of the telecommunications and broadcasting industries.
Whole-of-government strategic reforms NSW Government Operation Communications Strategy Review
In 2020 the Authority reviewed and updated the NSW Government Operational Communications Strategy (OCS), which sets out the operating models, priorities and actions required to drive significant reform, savings and better services across NSW Government agencies for the next ten years.
It builds on the 2015 OCS and enables seamless communication across agencies for better access to critical information, leading to more agile service delivery through:
• enhanced coordination of whole-of-government connectivity programs
• the provision of data enabled products and services to a broader set of customers
• leveraging industry and research expertise for innovation and delivery
The OCS includes a technology roadmap to drive greater coordination of connectivity services across NSW, maximising benefits from greater use of shared infrastructure, services and platforms while improving operational effectiveness.
Enhanced coordination of public safety telecommunications through faster, more reliable data enabled products and services, will create opportunities to reach more customers and allow for greater collaboration across government and industry.
Partnering with industry and universities will accelerate the development of innovative solutions and trigger economic growth and employment opportunities. 026 NSW Telco Authority Annual Report 2019/2020
Providing digital leadership
The Authority will progressively invest in capabilities that will see data enabled products and services gradually introduced through new devices, a broader mix of connectivity technologies and new service platforms and applications. These will support real-time decision making, enhanced connectivity and information sharing will equip first responders with robust connectivity solutions.
Following significant engagement with customers, the technology roadmap outlines the gradual transition over the next decade from voice and narrowband Land Mobile Radio P25 technology, to a sustainable public safety broadband network capable of providing mission-critical data services to all PSN users. This will meet customer needs for data enabled services and digital tools to complement mission critical voice services.
The rollout of the OCS 2020 will commence in the last quarter of 2020. The OCS embraces key NSW Government priorities around connecting communities and links to federal and State government initiatives designed to enhance connectivity such as Public Safety Mobile Broadband, the Mobile Black Spot Program and the Connecting Country Communities Fund.
Operational reviews
The following reviews and audits occurred during the reporting period:
An internal review conducted in late 2019 that delivered:
• A new Strategy Risk and Performance function which started from 1 June
• Improved internal governance with the creation of an Enterprise Project Management Office with significant governance changes such as simplifying the structures, uplifting reporting and governance practices
• The adoption of an enterprise-wide stakeholder engagement model and the introduction of a new Customer Experience framework
DCS Internal Audit completed a review of the Authority’s governance framework in October 2019. The audit evaluated the governance framework supporting the external, enterprise, operational and project governance. It considered the impact of the Critical Communications Enhancement Program (CCEP) on the governance landscape and the reporting requirements created by the program.
Key recommendations have already been actioned. Remaining longer term actions are being implemented according to their priority.
A delivery optimisation review of the CCEP was undertaken in November 2019. The review delivered a range of complementary recommendations to the internal audit, which have been assessed and introduced within CCEP.
An Infrastructure NSW (iNSW) review conducted in February 2020, provided independent advice to the Authority and direct reporting to the NSW Cabinet and the Minister for Infrastructure as it continued to conduct reviews of CCEP in during the reporting period.
The majority of iNSW recommendations have been implemented, with the remainder included in planning for the final stages of Operate and Maintain transition and CCEP delivery. Operational Peformance 027
Participation and response to Inquiries and industry consultation
To drive reform the Authority contributes to national forums on radiofrequency and communications issues. It also monitors and provides input into inquiries, reviews and consultations.
NSW Bushfire Inquiry – January 2020
The NSW Government commissioned an independent expert Inquiry into the 2019-20 bushfire season. In April, the Authority made submissions which addressed:
• improving the resilience of telecommunications networks
• real-time information on the operational status of commercial networks used for public communications during disasters and emergencies to support Emergency Alert capabilities and the prioritisation of resources to protect infrastructure
• inter-carrier roaming during emergencies - priority and pre-emption (when demand exceeds capacity), with carriers prioritising all emergency communications (voice, video and data) over their networks
The NSW Government recommendations were released after the reporting period and are available from nsw.gov.au.
Royal Commission into National Natural Disaster Arrangements – February 2020
In February 2020 the Commonwealth established a Royal Commission into National Natural Disaster Arrangements.
The Authority contributed to the NSW Government submissions and responses focussed on:
• the resilience of telecommunications infrastructure
• emergency management activities relating to its role as the Telecommunications Services Functional Area Coordinator
• real-time information on the operational status of commercial networks used for public communications during disasters and emergencies to support Emergency Alert capabilities and the prioritisation of resources to protect infrastructure
• inter-carrier roaming during emergencies, including agreements between carriers that extend beyond triple zero calls, to ensure affected communities have communications coverage (SMS, voice and data) during disasters regardless of which carrier network may be available
• priority and pre-emption (when demand exceeds capacity), with carriers prioritising all emergency communications (voice, video and data) over their networks including broadband, LTE, radio and satellite to supplement dedicated PSMB spectrum
• support for a national PSMB capability with an increased quantum of spectrum (10+10MHz) at no cost to the states and territories 028 NSW Telco Authority Annual Report 2019/2020
Australian Communications and Media Authority (ACMA) Proposed area-wide apparatus licence - consultation IFC:19/2019 - July 2019
In July 2019, the ACMA released a consultation paper on its proposal to develop a new transmitter and receiver licence type, the area-wide apparatus licence (AWL).
The Authority’s submission supported the introduction of the AWL type and inclusion of the Government Harmonised Spectrum in the 400 MHz band. This would facilitate more cost-efficient and flexible deployment of mobile radio assets to support emergency responses and for site maintenance activities in locations where a permanent base station is not available.
Following industry consultation, the ACMA created the new AWL type licence including the ‘area-wide’ type for transmitter licences and the ‘area-wide receive’ type for receive licences. In February 2020 the ACMA released ‘Area-wide licensing – ACMA approach to introducing area-wide licences’, which outlines considerations for introducing these licences.
Independent Pricing and Regulatory Tribunal (IPART) Review of rental arrangements for communication towers on Crown land Draft report July 2019
In November 2018, IPART undertook a ‘Review of rental arrangements for communication towers on Crown land’. In July 2019 IPART released a draft report on its review for consultation.
The draft report included recommendations proposed to set rental fees on ‘fair, market- based commercial returns’ to commence on 1 July 2020. The Authority’s submission gave general support to the principles behind the recommendations.
Australian Government Department of Communications and the Arts (DOCA now Department of Infrastructure, Transport, Regional Development and Communications DITRDC) Regional Connectivity Program consultation - September 2019
DOCA sought feedback on the design of the Commonwealth Regional Connectivity Program (RCP) and released a discussion paper in August 2019.
The Authority provided a submission with input to design and support of the RCP and provided information on the NSW Connecting Country Communities Fund and the need to align Commonwealth and State programs. Australian Government Department of Communications and the Arts (DOCA now DITRDC) Design of Alternative Voice Service Trials consultation- January 2020
DOCA sought feedback on the design of the Alternative Voice Service Trials and opened consultation in December 2019.
The program proposed trials of alternate ways to deliver voice telephone services in rural and remote areas of Australia, particularly those areas serviced by high capacity radio concentrator networks. Operational Peformance 029
The Authority supports voice trials and suggested more thorough futureproofing for communications services over the proposed ten-year operational period as well as greater alignment between state and Commonwealth programs.
Department of Infrastructure, Transport, Regional Development and Communications (DITRDC) Draft grant opportunity guidelines (Guidelines) issued as part of the Regional Connectivity Program (RCP) consultation – February 2020
In February 2020 DITRDC opened consultation on the design of the draft grant opportunity guidelines in the RCP discussion paper. The guidelines outlined how the RCP grants would be managed.
The Authority and Department of Planning, Industry and Environment provided a joint submission to this consultation. The submission included comments in support of the program and the Guidelines and noted that DITRDC had addressed some of the Authority’s key comments provided in previous feedback relating to alignment with other funding jurisdictions.
Australian Communications and Media Authority (ACMA) Five-year spectrum outlook 2020/24 – The ACMA’s spectrum management work program – consultation draft - April 2020
In April 2020, the ACMA released its Five Year Spectrum Outlook 2020-24 draft for consultation. The Authority’s submission referred to the national interest in preserving spectrum reserved by the Commonwealth in the 850 MHz expansion band for PSMB.
The submission also highlighted the need to keep adequate public protection and disaster relief spectrum segments at 4940-4990 MHz under the Radiocommunications (Public Safety and Emergency Response) Class Licence 2013. It also indicated interest from NSW in the conduct of radionavigation-satellite service repeater devices in tunnels for GPS location services for public safety purposes.
Department of Infrastructure, Transport, Regional Development and Communications (DITRDC) Design of Round 5A of the Mobile Black Spot Program (MBSP) consultation - June 2020
DITRDC sought feedback on the design of Round 5A of the MBSP in June 2020.
The Authority provided a joint submission with Regional NSW. The submission outlined NSW Government support for Round 5A’s design principles and commended the prioritisation of disaster-prone areas, remote areas and major regional transport corridors.
The submission provided suggestions regarding improved co-location of mobile assets on existing telecommunications infrastructure, tower sharing by multiple telecommunications carriers and national roaming to support emergency communications across providers. CCEP Highlights 105 sites completed 130 sites under construction 269 sites designed 66 sites operationally accepted Major Programs 031
Major Programs
The Authority provides regular reporting to Infrastructure NSW on its major programs. Key program highlights from the reporting period are outlined below.
Critical Communications Enhancement Program
The Authority is continuing to expand the PSN for customers through delivery of the CCEP.
A single, integrated network will seamlessly enable ESOs to readily coordinate responses to critical incidents such as bushfires and floods and improve operational communications for first responders.
An additional 31 news sites were added to the network during 2019/2020 taking the total number of sites delivered by the CCEP to 66 as at 30 June 2020.
To date, the NSW Government has committed more than $600 million to expand the PSN for customers and the community. The network’s expansion represents the biggest investment in critical communications infrastructure by the NSW Government in two decades.
Expanding the PSN
Expansion of the PSN is crucial to ensuring ESOs have the critical communications infrastructure required to protect NSW communities.
There were approximately 250 operational PSN sites as at 30 June. On completion of the current phase of the CCEP, PSN land coverage will be 53%, an increase from less than 35% prior to the commencement of the program. This will achieve population coverage of 97%.
Greater resilience is also being built into the network including enhanced encryption options for ESOs which allows crews to interconnect with other agencies and participate in shared talk groups across the entire network, enhancing their control of communications and duress options.
COVID-19 and CCEP delivery
The CCEP program delivery team published a COVID-19 guideline for all construction works, aligned to SafeWork NSW and federal WorkSafe guidelines. All onsite construction teams developed site-specific COVID-19 plans which included limiting the number of people on site.
Design partners mirrored the Authority’s COVID-19 response. Design partners submitted succession plans for their teams in the event of potential COIVD-19 impacts and implemented working from home arrangements, with only critical roles working from corporate offices.
Some construction partners were impacted by border closures, affecting CCEP construction targets, following resourcing, material and equipment delays from Victoria and Queensland. 032 NSW Telco Authority Annual Report 2019/2020
Operate and Maintain Transformation Program
The Operate and Maintain (O&M) Transformation Program will shape the way the Authority delivers critical communications in a shared environment while preparing for the expanded network to be delivered under the CCEP.
A key driver behind the program is scalability and flexibility to manage the growing number of PSN sites, with greater focus on improving relationships with customers.
The Authority has been working closely with representatives from ESOs to identify the requirements of a future service delivery model in a shared network environment.
A Request for Tender for a Managed Network Provider was released to the market in May 2019. To maintain current service levels until the tender process is finalised, the Authority has extended the contract with the existing provider BAI Communications until mid-2021.
Public Safety Mobile Broadband
The bushfire crisis highlighted the increasing demands made on ESOs and the need to provide technological capability to manage large-scale incidents.
A national Public Safety Mobile Broadband (PSMB) capability will deliver the 21st-century, mission-critical communications needed to ensure ESOs can continue to keep Australians safe.
PSMB is not currently available through commercial telecommunications carriers’ 4G networks in Australia, due to the high global standards in place for public safety first responders.
The platform will support the applications and technologies required to improve operational responses by providing access to video, images, location tracking and other data.
PSMB will provide a standardised environment for agencies to coordinate emergency responses and realise operational efficiencies.
The Authority fully supports an accelerated rollout of PSMB, which will assist emergency responders and enhance communications by:
• improving access to information
• providing real-time, automated situational awareness
• delivering a platform for emerging technologies to be integrated into operational practices
The Authority is currently working with states and territories to negotiate the allocation of PSMB spectrum with the Commonwealth.
The Authority hosted the PSMB National Program Management Office during the reporting period, until its relocation to the Commonwealth in July 2020. NSW Telco Authority Annual Report 2019/2020 033
Connecting Communities in Regional NSW
The NSW Government is investing in infrastructure to improve internet access and deliver new mobile phone towers in regional areas across NSW.
The Mobile Black Spot Program will improve coverage along additional 1,000km of major transport routes.
More than 10,000 triple zero calls have been made using towers constructed under the Program. 000
The Connecting Country Communities Fund commits $11 million to provide faster more reliable internet for towns in southern NSW.
By September 2021 connectivity speeds will increase by up to 25/5 Mbps for more than 4800 households in Eden Monaro and Kangaroo Valley. 034 NSW Telco Authority Annual Report 2019/2020
Mobile Black Spot Program
The Commonwealth Mobile Black Spot Program (MBSP) will deliver 203 new or improved mobile base stations throughout the state.
This will allow greater access to emergency and essential services, use of safety apps such as Fires Near Me and calls to family and friends.
The program will enable high-quality voice services in rural and regional areas, particularly in areas with specific coverage problems such as major transport routes, remote communities or areas that are prone to natural disasters. This will align telecommunications capabilities in regional and remote areas with those already available in metropolitan areas.
New or improved mobile coverage for around 27,000 households and businesses across regional and remote NSW means that more than 50,000 people can now be confident in reaching emergency services during accidents and natural disasters.
The MBSP will also promote and encourage competition between mobile providers, ultimately leading to cheaper and higher quality services, as well as providing access to new technologies via improved and more accessible mobile coverage for regional businesses.
The program is being delivered in a series of rounds with sites funded by the Commonwealth Government, NSW Government and telecommunications carriers. The Authority is working with the Department of Regional NSW (RNSW) to deliver the program across the state.
During 2019/20, 9 towers were delivered under the program in regions from Ballina to Bonshaw and Bathurst to Bega.
169 of the 182 towers rolled out under the first two rounds of the program have been completed, with the remaining 13 under round 2 on track to be completed by June 2021, providing coverage to 22,000 premises.
The Authority is delivering an additional NSW-funded round that includes 21 new towers by June 2021, with two already on-air. This will provide coverage for up to 5,000 premises in regional NSW.
The NSW Government is investing $39 million from the $50 million Connecting Country Communities Fund to co-deliver 150 out of the 203 NSW sites. Major Programs 035
Connecting Country Communities Fund
The Connecting Country Communities Fund (CCCF) will enable residents and businesses in regional NSW to access affordable, faster and more reliable broadband internet services.
CCCF will help better connect regional communities and result in improved service quality and internet speeds that are comparable with metropolitan areas.
On its completion, more than 4,800 premises will receive better connectivity through the enhancement of existing assets including towers, land and fibre as well as the construction of new infrastructure.
Households and businesses will start to experience increased download speeds within the next 12 months, with continued incremental improvements in both upload and download speeds until the end of 2025.
Increased speed and connectivity in regional areas will deliver a range of social and economic benefits such as greater access to essential health services, education and information resources.
During the reporting period two Proof of Concept trials were undertaken by rural communications carriers YLess4U and Kangaroo Valley Broadband in Southern NSW and Monaro.
The delivery of this program, including the results of the Proof of Concept trials, will help inform the rollout of future initiatives under the NSW State Infrastructure Strategy 2018/2038 and the NSW Government’s broader $400 million Regional Digital Connectivity Package. 036 NSW Telco Authority Annual Report 2019/2020
Governance
NSW Telco Authority Advisory Board
The NSW Telco Authority Advisory Board is established under the NSW Government Telecommunications Act 2018 and provides policy advice to drive the strategic direction of the Authority.
The Minister for Customer Service administers the Act and nominates members following consultation across the NSW Government.
The Board held six meetings between 1 July 2019 and 30 June 2020.
The Board thanked Geoff Kleeman for his service following his resignation from the Board in May 2020 and welcomed DCS Secretary Emma Hogan.
Board meetings held during 2019/20
Planning TOTAL Aug 19 Oct 19 Day Feb 20 Apr 20 Jun 20 (from Nov 19 6)
Beth Jackson Y Y Y Y Y Y 6/6
Kaaren Koomen Y Y Y Y Y Y 6/6
Kylie De Courteney, Y Y Y Y Y Y 6/6 MD
Shane Fitzsimmons Y Y Y Y Y Y 6/6
Greg Wells Y Y Y N N Y 4/6
Clare Gardiner- Y Y Y Y N Y 5/6 Barnes
Ric Oldham Y Y Y Y Y Y 6/6
Geoff Kleemann N N Y N Y N/A 2/5
Vinita Deodhar Y Y Y Y Y Y 6/6
Malcolm Lanyon Y N Y Y N Y 4/6
Kate Emma Invited participants NIL NIL NIL Foy NIL Hogan Governance 037
Board Members during 2019-20
Ms Beth Jackson Ms Kaaren Koomen AM (BA, Dip Law, MAICD) (BA LLB, LLM,, GAICD) Chairperson Deputy Chairperson Current appointment 15/07/2020 Current appointment 15/07/2020 to 14/07/2023 to 14/07/2023
Beth Jackson’s career includes Kaaren Koomen is a highly senior roles in federal and state experienced executive with more than government, in law and more recently in 25 years’ experience in leadership telecommunications and technology in roles in the private and public sector, Australia and internationally. with a focus on communications and Beth was Director of Business and technology. Government Marketing for Telstra, Kaaren is currently an Executive and Regional Vice President for SITA Director with IBM Australia and Technology then the world’s largest data New Zealand, and a member of the communications network. Beth has also Global IBM Government Programs contributed to non-profit community Leadership Team. organisations at board level and Kaaren has extensive board undertook high level corporate advisory experience on over ten public and work. private boards and committees, and currently serves on four, including Mr Geoff Kleeman(member ICA) Chair of the Museum of Australian Member from between October 2017 Democracy at Eureka and Vice and May 2020 President of the Australian Services Geoff commenced his career at Deloitte Roundtable (elected). and subsequently completed twenty Ms Kylie De Courteney (BCom) plus years as a senior executive in Managing Director a listed company environment, as Chief Financial Officer for Crown Kylie De Courteney is the Managing Limited, Publishing and Broadcasting Director of the NSW Telco Authority. Ltd, Woolworths Ltd and Pioneer Kylie is an experienced senior International Ltd. Geoff is currently a executive with expertise in complex Non-Executive Director of Investa Listed program delivery and organisational Funds Management Limited the RE for transformation. Investa Office Fund, and of Domain Ltd. Kylie is passionate about the digital He was previously Non-Executive transformation of government and Director, and Chair of the Audit customer centric service design. Kylie Committee, for Asciano Limited and has worked in strategy, mergers and Broadspectrum Ltd. Geoff is a member acquisitions, program delivery, customer of the Institute of Chartered Accountants experience and operational performance and an Independent Non-Executive improvement in the private and Director of the Domain Group Board. professional services sectors, and federal and state government. 038 NSW Telco Authority Annual Report 2019/2020
Commissioner Shane Fitzsimmons Mr Greg Wells, Member AFSM, (BEng Hons) Member Current appointment 15/07/2020 Current appointment 15/07/2020 to 14/07/2023 to 14/07/2023 Greg Wells is the NSW Government Shane Fitzsimmons is the Commissioner Chief Information and Digital Officer of Resilience NSW. Commissioner (GCIDO) and Deputy Secretary of Fitzsimmons has a wealth of strategic ICT and Digital Government within and operational fire knowledge and the Department of Customer Service. was awarded the Australian Fire Service Medal in 2001. As GCIDO, Greg is the most senior technology executive in the NSW He has qualifications in Management and Public Service. In this role Greg Leadership from the Australian Institute advocates for technology that of Police Management and NSW TAFE. enables the NSW Government’s Commissioner Fitzsimmons also objectives and fosters sector-wide served the NSW Rural Fire Service collaboration on a digital agenda to Commissioner for the past 12 years. continue to transform the state into a global technology leader.
Greg’s extensive career in Ms Clare Gardiner-Barnes, Member government technology has (DipEd[Prim] GDipArts, MSW included leading the delivery of [Administration and Planning] a multi-agency platform to help (current appointment 04/092019 to protect children at risk with the 03/09/2021) NSW Department of Family and Clare Gardiner-Barnes is the Head of Community Services, and running Strategy, Planning and Innovation at NSW Health’s ICT strategy, policy Infrastructure NSW. Clare is responsible for governance and operations as the the 20 year State Infrastructure Strategy, Chief Information Officer. development of five year Infrastructure plans, provides independent advice to government on strategic infrastructure issues and opportunities.
As a board member for both the NSW Telco Authority and Roads Australia, Clare is committed to working with industry and across government to support the adoption of new infrastructure technology. Before taking on infrastructure leadership roles Clare worked in in various executive positions in education and was the Chief Executive of the Department of Children and Families in the Northern Territory. Clare is an advocate for women in leadership and workforce flexibility. Governance 039
Mr Ric Oldham, Member (BEng, Dr Vinita Deodhar, Member (PhD Registered Building Practitioner) Econ, MBusEcon, BA Econ (Hons), Current appointment 15/07/2020 to (Current appointment 04/09/2019 14/07/2023 to 03/09/2022)
Ric Oldham’s career spans almost four Dr Vinita Deodhar is an Executive decades, with extensive experience in Director at NSW Treasury. An both the public and private sectors across experienced senior leader, Dr Deodhar telecommunications. This includes the advises the NSW Government design, construction and operation of on agencies’ performance, risk public infrastructure as well as in the management, governance, major transport, utilities and resources industries. public policies, and economic and citizen-centric reforms while ensuring Ric previously served as a Chairman of sustainable fiscal and economic Imatis and Bass Valley Landcare and was management of public resources. a member of the Leighton Contractor’s advisory board. Dr Deodhar is a Graduate of the Australian Institute of Company Directors Ric has held senior executive and and is responsible for implementing the direct project management roles within NSW Government’s signature reforms on the private and public sector in the outcome-based performance budgeting delivery of complex multidiscipline across the public sector. telecommunications and civil infrastructure projects within Asia-Pacific and North America. Ms Emma Hogan, Member Ric has wide-ranging experience in (GDipHRM) strategic planning and leadership, building Current appointment 15/07/2020 values based high performing client to 14/07/2023 focused teams with an uncompromising culture of care, integrity and performance. Emma Hogan is the Secretary of the NSW Department of Customer Service. Deputy Commissioner Malcolm Lanyon, Member APM (BSSc, Her career spans executive leadership ADipCrimJus, ANZSOG Executive roles in people and culture (human Fellow, NZPLS) resources), communications, customer Current appointment 04/09/2019 experience, digital, change and to 03/09/2022) transformation. She has led teams of up to 5,000 people both in Australia and Deputy Commissioner Malcolm off-shore. Lanyon is a serving member of the NSW Police Force. Since joining in Emma has worked in start-up, growth, 1987, he has held many positions acquisition, disruption, maturation and from general duties, to Detective, to divestment environments. Emma holds Commander Special Services Group, postgraduate qualifications in Human and now Deputy Commissioner, Resources and Business Management Corporate Services. and is a graduate of the Stanford University Executive Program. Deputy Commissioner Lanyon has received several awards throughout his service including the Australian Police Medal, National Police Medal and the NSW Police Medal. 040 NSW Telco Authority Annual Report 2019/2020
A great place to work
Diversity and inclusion
The Authority contributed to the DCS Diversity and Inclusion Strategy and Action Plan 2020-25, which outlines the Department’s commitment to the Premier’s Priorities to:
• increase the proportion of women in government sector senior leadership roles to 50 per cent by 2025
• increase the number of Aboriginal people in senior leadership roles
• increase representation of people with disability in government sector roles from 2.7 per cent to 5.6 per cent by 2025
The Strategy also:
• supports the Diversity Inclusion Advisory Council, Disability Inclusion Steering Committee and Employee Resource Groups to update practical actions
• implements the Aboriginal Workforce Strategy, the Disability Inclusion Action Plan, and programs to increase the visibility and career progression of people from culturally and linguistically diverse (CALD) backgrounds.
Staff development
During the year the Authority delivered a range of targeted programs and learning and development opportunities and commenced partnerships with specialist employment services.
CareerTrackers A Public Service Commission whole-of-government internship program linking Indigenous university students to employers for paid internships.
‘Stepping Into’ Program A national initiative for employers introducing skilled and talented university students with a disability.
PSC Graduate program Whole-of-government graduate program consisting of three rotations (six months for each rotation) that is centrally coordinated by the Department. The Authority had two graduates during the financial year.
More than 50 staff enrolled in Australian Institute of Management Courses and 40 staff participated in Australian Human Resource Institute training to Manage Unconscious Bias. A Great Place to Work 041
Staff development
More than 20 online courses in People Management, Business Writing, Communication, Workplace Safety and Risk Management were offered to all the Authority’s employees and contractors to lift capability.
myCareer Mandatory WHS training developed by the Authority.
Australian Human Resource Institute hosted 30 people leaders and 10 team members from the Authority for two half-day sessions on ‘Managing Unconscious Bias’.
People Matter Employee Survey
83% Response rate up 17% from 2018
87% flexible working
74% engagement with work
85% diversity and inclusion
73% employee engagement 042 NSW Telco Authority Annual Report 2019/2020
Statutory reporting
Cyber Security Attestation
Cyber Security Annual Attestation Statement for the 2019-2020 Financial Year for the New South Wales Government Telecommunications Authority
I, Kylie De Courteney, am of the opinion that the New South Wales Government Telecommunications Authority (NSW Telco Authority) has managed cyber security risks in a manner consistent with the Mandatory Requirements set out in the NSW Government Cyber Security Policy.
Risks to the information and systems of the NSW Telco Authority have been assessed and are managed.
I am of the opinion that, where necessary, in accordance with the NSW Cyber Security Policy, NSW Telco Authority is aligned with the relevant practices with AS/NZS ISO/IEC 27001 Information technology - Security techniques - Information security management systems – Requirements.
Governance is in place to manage the cyber security maturity and initiatives of the NSW Telco Authority which has led to an uplift in NSW Telco Authority’s cyber security maturity than previous reporting in 2018-2019.
There exists a current cyber incident response plan for Telco Authority which has been tested during the reporting period with our stakeholders and our network partners.
Telco Authority has implemented an Information Security Management System (ISMS), an ISMS Management Committee has been formed and was internally audited.
Kylie De Courteney Managing Director NSW Telco Authority
Independent Auditors Report 043
INDEPENDENT AUDITOR’S REPORT New South Wales Government Telecommunications Authority
To Members of the New South Wales Parliament Opinion I have audited the accompanying financial statements of New South Wales Government Telecommunications Authority (the Authority), which comprise the Statement of Comprehensive Income for the year ended 30 June 2020, the Statement of Financial Position as at 30 June 2020, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, notes comprising a Statement of Significant Accounting Policies and other explanatory information.
In my opinion, the financial statements:
• give a true and fair view of the financial position of the Authority as at 30 June 2020, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards • are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and the Public Finance and Audit Regulation 2015.
My opinion should be read in conjunction with the rest of this report. Basis for Opinion I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements section of my report.
I am independent of the Authority in accordance with the requirements of the:
• Australian Auditing Standards • Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for Professional Accountants (including Independence Standards)’ (APES 110).
I have fulfilled my other ethical responsibilities in accordance with APES 110.
Parliament promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by:
• providing that only Parliament, and not the executive government, can remove an Auditor-General • mandating the Auditor-General as auditor of public sector agencies • precluding the Auditor-General from providing non-audit services.
I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
044 NSW Telco Authority Annual Report 2019/2020
Other Information The Authority’s annual report for the year ended 30 June 2020 includes other information in addition to the financial statements and my Independent Auditor’s Report thereon. The Managing Director of the Authority is responsible for the other information. At the date of this Independent Auditor’s Report, the other information I have received comprise the Statement by the Managing Director.
My opinion on the financial statements does not cover the other information. Accordingly, I do not express any form of assurance conclusion on the other information.
In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work I have performed, I conclude there is a material misstatement of the other information, I must report that fact.
I have nothing to report in this regard. The Managing Director's Responsibilities for the Financial Statements The Managing Director is responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the PF&A Act, and for such internal control as the Managing Director determines is necessary to enable the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Managing Director is responsible for assessing the Authority’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting. Auditor’s Responsibilities for the Audit of the Financial Statements My objectives are to:
• obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error • issue an Independent Auditor’s Report including my opinion.
Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance with Australian Auditing Standards will always detect material misstatements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users take based on the financial statements.
A description of my responsibilities for the audit of the financial statements is located at the Auditing and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The description forms part of my auditor’s report.
Independent Auditors Report 045
The scope of my audit does not include, nor provide assurance:
• that the Authority carried out its activities effectively, efficiently and economically • about the assumptions used in formulating the budget figures disclosed in the financial statements • about the security and controls over the electronic publication of the audited financial statements on any website where they may be presented • about any other information which may have been hyperlinked to/from the financial statements.
Weini Liao Director, Financial Audit Services
Delegate of the Auditor-General for New South Wales
20 October 2020 SYDNEY
046 NSW Telco Authority Annual Report 2019/2020
NSW GOVERNMENT TELECOMMUNICATIONS AUTHORITY
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
STATEMENT BY THE MANAGING DIRECTOR
Under Section 41C of the Public Finance and Audit Act, 1983, I state that in my opinion:
(a) The accompanying financial statements and notes thereto exhibit a true and fair view of the financial position of the NSW Government Telecommunications Authority as at 30 June 2020 and its financial performance for the year then ended.
(b) The accompanying financial statements and notes thereto have been prepared in accordance with the applicable Australian Accounting Standards (which include Australian Accounting Interpretations), the requirements of Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2015, and the Financial Reporting Directions mandated by the Treasurer.
Further, I am not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
On behalf of the Authority
Kylie De Courteney Managing Director NSW Government Telecommunications Authority
Dated at Sydney 16th October 2020
1 Financial Statements 047
NSW GOVERNMENT TELECOMMUNICATIONS AUTHORITY
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020 Notes Actual Budget Actual 2020 2020 2019 $’000 $’000 $’000
Expenses excluding losses Operating Expenses Personnel services expenses 2(a) 11,318 17,808 6,449 Other operating expenses 2(b) 42,108 63,231 47,874 Depreciation and amortisation 2(c) 20,934 19,473 13,283 Grants and subsidies 2(d) 12,074 3,872 14,614 Finance costs 2(e) 1,136 192 106 Total Expenses excluding losses 87,570 104,576 82,326
Revenue - - - Revenue from contracts with customers 3(a) 60,314 62,616 63,125 Grants and other contributions 3(b) 111,829 189,981 117,980 Other income 3(c) 1,817 811 1,118 Total Revenue 173,960 253,408 182,223
Gain/(loss) on disposal of PPE 4 224 - (163)
Net result from continuing operations 86,614 148,832 99,734
NET RESULT 86,614 148,832 99,734
Total other comprehensive income - - -
TOTAL COMPREHENSIVE INCOME 86,614 148,832 99,734
The accompanying notes form part of these financial statements.
1 048 NSW Telco Authority Annual Report 2019/2020
NSW GOVERNMENT TELECOMMUNICATIONS AUTHORITY
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 Notes Actual Budget Actual 2020 2020 2019 $’000 $’000 $’000
ASSETS Current Assets Cash and cash equivalents 5 64,092 60,854 52,058 Receivables 6 10,221 9,347 13,093 Inventories 7 1,221 830 907 Other current assets 8 1,785 3,231 1,278 Total Current Assets 77,319 74,262 67,336
Non-Current Assets Receivables 6 1,016 - - Property, plant and equipment Land 9 320 320 320 Plant and equipment 9 279,728 326,060 192,998 Leasehold improvements 9 5,869 - 6,501 Total property, plant and equipment 285,917 326,380 199,819 Right of use assets 10 59,258 3,834 - Intangible assets 11 16,824 48,518 20,050 Total Non-Current Assets 363,015 378,732 219,869 Total Assets 440,334 452,994 287,205
LIABILITIES Current Liabilities Payables 12 36,068 53,887 40,625 Borrowings 13 4,724 - - Provisions 14 20,456 - - Total Current Liabilities 61,248 53,887 40,625
Non-Current Liabilities Borrowings 13 55,009 3,849 - Provisions 14 8,469 5,881 6,371 Total Non-Current Liabilities 63,478 9,730 6,371 Total Liabilities 124,726 63,617 46,996
Net Assets 315,608 389,377 240,209
EQUITY Accumulated funds 315,608 389,377 240,209 Total Equity 315,608 389,377 240,209
The accompanying notes form part of these financial statements.
2 Financial Statements 049
NSW GOVERNMENT TELECOMMUNICATIONS AUTHORITY
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020
Notes Accumulated Funds Total $’000 $’000
Balance at 1 July 2019 240,209 240,209 Net effect of changes in accounting policies due to adoption of new standards (12,370) (12,370) Balance at 1 July 2019 – restated 227,839 227,839
Net Result for the year 86,614 86,614 Other comprehensive income - - Total comprehensive income for the year 86,614 86,614
Transactions with owners in their capacity as owners Increase in net assets from equity transfers 15 1,155 1,155
Balance at 30 June 2020 315,608 315,608
Balance at 1 July 2018 139,754 139,754
Net Result for the year 99,734 99,734 Other comprehensive income - - Total comprehensive income for the year 99,734 99,734
Transactions with owners in their capacity as owners Increase in net assets from equity transfers 15 721 721
Balance at 30 June 2019 240,209 240,209
The accompanying notes form part of these financial statements.
3 050 NSW Telco Authority Annual Report 2019/2020
NSW GOVERNMENT TELECOMMUNICATIONS AUTHORITY
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020 Notes Actual Budget Actual 2020 2020 2019 $’000 $’000 $’000 CASH FLOWS FROM OPERATING ACTIVITIES
Payments To suppliers and personnel (62,774) (80,979) (82,899) Grants and subsidies (12,074) (3,872) (14,614) Payment of interest on lease liabilities (392) (192) - Total Payments (75,240) (85,043) (97,513)
Receipts Sale of goods and services from contracts with customers 76,393 62,556 71,498 Interest received 1,817 811 965 Grants and other contributions 110,096 189,981 117,980 Total Receipts 188,306 253,348 190,443
NET CASH FLOWS FROM OPERATING ACTIVITIES 19 113,066 168,305 92,930
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, plant and equipment (96,188) (168,530) (75,172) Disposal/(Purchases) of intangible assets 400 - (16,017) NET CASH FLOWS USED IN INVESTING ACTIVITIES (95,788) (168,530) (91,189)
CASH FLOWS FROM FINANCING ACTIVITIES Payment of principal portion of lease liabilities (5,244) (1,204) - NET CASH FLOWS USED IN FINANCING ACTIVITIES (5,244) (1,204) -
NET INCREASE/(DECREASE) IN CASH 12,034 (1,429) 1,741
Opening cash and cash equivalents 52,058 62,282 50,317
CLOSING CASH AND CASH EQUIVALENTS 5 64,092 60,853 52,058
The accompanying notes form part of these financial statements.
4 Financial Statements 051
NSW GOVERNMENT TELECOMMUNICATIONS AUTHORITY
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Reporting Entity
The NSW Government Telecommunications Authority (the Authority) is a NSW Government entity and is controlled by the State of New South Wales, which is the ultimate parent. The Authority is a not-for-profit entity (as profit is not its principal objective) and it has no cash generating units.
The NSW Government Telecommunications Authority as a reporting entity comprises of the following major activities:
i. Government Radio Network
The NSW Government Radio Network (GRN) provides a common platform for government agencies and authorities who use mobile radio communications, including as a ‘mission-critical’ tool for public safety and emergency services organisations. The GRN is owned by the NSW Government and managed on its behalf by a private sector network manager with oversight and assurance provided by the Authority. User charges are based on the Government approved full cost recovery IPART funding methodology.
ii. Mobile Data Radio Network
The Mobile Data Radio Network (MDRN) provides a shared platform for low speed mobile data communications and was used primarily for computer aided dispatch of field resources. The Network was used by the NSW Ambulance Service. The delivery of dispatch information via data was essential to achieving a rapid patient response. The Authority managed the decommissioning of this network, resulting in the network being switched off on 14 February 2019.
iii. Emergency Management
The Telecommunications Services Functional Area forms part of the NSW Government’s emergency management arrangements, and acts to ensure the integrity of telecommunications services is maintained during critical incidents and natural disasters. The Authority provides coordination of the Functional Area through the statutory role of the Functional Area Coordinator. This role provides the link between telecommunications carriers and emergency services agencies ensuring the protection of telecommunications infrastructure relied upon by both government workers and the general public for communications.
These financial statements for the year ended 30 June 2020 have been authorised for issue by the Managing Director on 16 October 2020.
(b) Basis of Preparation
The Authority’s financial statements are general purpose financial statements which have been prepared on an accrual basis and in accordance with:
• applicable Australian Accounting Standards (AAS) (which include Australian Accounting Interpretations); • the requirements of the Public Finance and Audit Act 1983 (the Act) and Public Finance and Audit Regulation 2015; and • the Treasurers Directions issued under the Act.
(c) Historical cost convention
These financial statements have been prepared on a historical cost basis, except certain financial assets and liabilities and classes of Property, plant and equipment, which measured at fair value.
5 052 NSW Telco Authority Annual Report 2019/2020
(d) Significant estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the group’s accounting policies. Judgements, key assumptions and estimations management have made are disclosed in the relevant notes to the financial statements.
(e) Rounding of amounts
All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency, which is the Authority’s presentation and functional currency.
(f) Statement of Compliance
The Authority’s financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.
(g) Accounting for the Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of GST, except that the:
• amount of GST incurred by the Authority as a purchaser that is not recoverable from the Australian Taxation Office (ATO) is recognised as part of the cost of acquisition of an asset or as part of an item of expense; and • receivables and payables are stated with the amount of GST included.
Cash flows are included in the Statement of Cash Flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
(h) Comparative Information
Except when an AAS permits or requires otherwise, comparative information is disclosed in respect of the previous reporting period, 30 June 2019, for all amounts reported in the financial statements.
(i) Changes in Accounting Policy, Including New or Revised Australian Accounting Standards
(i) Effective for the first time in FY2019-20
The Authority applied AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-for-Profit Entities and AASB 16 Leases for the first time. The nature and effect of the changes as a result of adoption of these new accounting standards are described below.
Several other amendments and interpretations apply for the first time in FY2019-20, but do not have an impact on the financial statements of the Authority.
AASB 15 Revenue from Contracts with Customers
AASB 15 supersedes AASB 111 Construction Contracts, AASB 118 Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with customers. AASB 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.
AASB 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires relevant disclosures.
6 Financial Statements 053
In accordance with the transition provisions in AASB 15, the Authority has adopted AASB 15 retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial application, i.e. 1 July 2019. The Authority has used the transitional practical expedient permitted by the standard to reflect the aggregate effect of all of the modifications that occur before 1 July 2018 when:
• identifying the satisfied and unsatisfied performance obligations • determining the transaction price • allocating the transaction price to the satisfied and unsatisfied performance obligations.
The impact of applying the above practical expedients is not expected to significantly affect the financial statements.
The adoption of AASB 15 did not have an impact on Statement of Comprehensive Income, Statement of Financial Position, Other Comprehensive Income and the Statement of Cash Flows for the financial year.
AASB 1058 Income of Not-for-Profit Entities
AASB 1058 replaces most of the existing requirements in AASB 1004 Contributions. The scope of AASB 1004 is now limited mainly to contributions by owners (including parliamentary appropriations that satisfy the definition of a contribution by owners), administrative arrangements and liabilities of government departments assumed by other entities.
AASB 1058 applies to income with a donation component, i.e. transactions where the consideration to acquire an asset is significantly less than fair value principally to enable a not-for-profit entity to further its objectives; and volunteer services. AASB 1058 adopts a residual approach, meaning that entities first apply other applicable Australian Accounting Standards (e.g. AASB 1004, AASB 15, AASB 16, AASB 9, AASB 137) to a transaction before recognising income.
Not-for-profit entities need to determine whether a transaction is/contains a donation (accounted for under AASB 1058) or a contract with a customer (accounted for under AASB 15).
AASB 1058 requires recognition of receipt of an asset, after the recognition of any related amounts in accordance with other Australian Accounting Standards, as income:
• when the obligations under the transfer is satisfied, for transfers to enable an entity to acquire or construct a recognisable non-financial asset that will be controlled by the entity. • immediately, for all other income within the scope of AASB 1058.
In accordance with the transition provisions in AASB 1058, the Authority has adopted AASB 1058 retrospectively with the cumulative effect of initially applying the standard at the date of initial application, i.e. 1 July 2019. The Authority has adopted the practical expedient in AASB 1058 whereby existing assets acquired for consideration significantly less than fair value principally to enable the Authority to further its objectives, are not restated to their fair value.
The effect of adopting AASB 1058 as at 1 July 2019 is as follows:
The Authority received $104 million contribution as funding for the Critical Communications Enhancement Program (CCEP) which included a partial grant for procurement of terminals (radio hardware) for frontline users and vehicles which was recognised in prior years in accordance with AASB 1004 Contributions. At 1 July 2019 transition date, $12.3 million (representing the unspent portion) was reclassified as a contract liability/unearned income with a corresponding decrease in accumulated funds.
AASB 16 Leases
AASB 16 supersedes AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease, Interpretation 115 Operating Leases – Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet.
Lessee accounting AASB 16 requires the Authority to account for all leases under a single on-balance sheet model. Previously, the Authority classified its leases as operating or finance leases based on whether the lease transferred significantly all of the risks and rewards incidental to ownership of the asset to the lessee.
7 054 NSW Telco Authority Annual Report 2019/2020
This distinction between operating and finance leases no longer exists for lessee accounting under AASB 16. From 1 July 2019, all leases, other than short-term leases and leases of low value assets, are now recognised on balance sheet as lease liabilities and right-of-use assets.
Lease liabilities are initially recognised at the present value of lease payments over the lease term that are not yet paid. The lease term includes any extension or renewal options that the department is reasonably certain to exercise. The future lease payments included in the calculation of the lease liability comprise the following: - fixed payments (including in-substance fixed payments), less any lease incentives receivable - variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date - amounts expected to be payable under residual value guarantees - the exercise prices of a purchase option that is reasonably certain to exercise - payments for termination penalties, if the lease term reflects the early termination.
The discount rate used is the interest rate implicit in the lease, or the incremental borrowing rate if the implicit rate cannot be readily determined.
Subsequently, the lease liabilities are increased by the interest charge and reduced by the amount of lease payments. Lease liabilities are also remeasured in certain situations such as change in variable lease payments that depend on an index or rate (e.g. a market rent review), or a change in the lease term.
The corresponding right-of-use asset is measured at the value of the lease liability adjusted for lease payments before inception, lease incentives, initial direct costs and estimates of costs for dismantling and removing the asset or restoring the site on which it is located. Right-of-use assets are subsequently depreciated over the life of the lease. The Authority has elected to recognise lease payments for short-term leases and leases of low value assets as expenses on a straight-line basis over the lease term, rather than accounting for them on balance sheet.
Transition Impact The Authority has adopted the modified retrospective transition method, where the cumulative effect of initially applying AASB 16 is recognised on 1 July 2019 and the comparatives for the year ended 30 June 2019 are not restated.
In relation to leases that had previously been classified as ‘operating leases’ under AASB 117, a lease liability is recognised at 1 July 2019 at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate at the date of initial application. The lessee’s incremental borrowing rate applied to the lease liabilities on 1 July 2019 was 1.42% for leases up to 5 years, 2% for leases > 5 years and 2.42% for leases > 10years and on 2 January 2020 was 1.41% for leases up to 5 years, 1.87% for leases > 5 years and 2.30% for leases > 10 years.
The corresponding right-of-use asset is initially recorded on transition at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the Statement of Financial Position as at 30 June 2019. The exception is right-of-use assets that are subject to accelerated depreciation. These assets are measured at their fair value at 1 July 2019.
For leases previously classified as finance leases, the Authority recognised the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The measurement principles of AASB 16 are only applied after that date.
In applying AASB 16 for the first time, the Authority has used the following practical expedients permitted by the standard:
• applying a single discount rate to a portfolio of leases with reasonably similar characteristics • relying on its previous assessment on whether leases are onerous immediately before the date of initial application as an alternative to performing an impairment review – no contracts were identified as being onerous as at 1 July 2019 • accounting for operating leases with a remaining lease term of less than 12 months as at 1 July 2019 as short-term leases • excluding the initial direct costs from the measurement of the right-of-use asset at the date of initial application • using hindsight in determining the lease term where the contract contained options to extend or terminate the lease.
8 Financial Statements 055
The Authority has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the group relied on its assessment made applying AASB 117 and Interpretation 4 Determining whether an Arrangement contains a Lease.
The effect of adoption AASB 16 as at 1 July 2019 (increase/ (decrease)) is, as follows: $’000 Assets
Right-of-use-assets 44,684 Liabilities Borrowings 44,684
The lease liabilities as at 1 July 2019 can be reconciled to the operating lease commitments as of 30 June 2019, as follows*: $’000 Operating lease commitments disclosed as at 30 June 2019 19,584
Less: discounted operating lease commitments as at 1 July 2019 (432) Add: commitments relating to leases previously classified as finance leases - (Less): short- term leases not recognised as liability (144) (Less): low-value leases not recognised as liability - Add/(less): contracts re-assessed as lease contracts 25,676 Add: Lease payments relating to renewal periods not included in operating lease - commitments as at 30 June 2019 Add/(less): adjustments relating to changes in the index or rate affecting variable payments - Lease liabilities recognised as at 1 July 2019 44,684
*The difference between (a) operating lease commitments disclosed in applying AASB 117 at the end of the annual reporting period immediately preceding the date of initial application (i.e. 30 June 2019), discounted using the incremental borrowing rate at the date of initial application; and (b) lease liabilities recognised in the statement of financial position at the date of initial application (i.e. 1 July 2019) is due to a significant numbers of contracts re-assessed as lease contracts.
Lessor accounting Lessor accounting under AASB 16 is substantially unchanged from AASB 117. Lessors will continue to classify leases as either operating or finance leases using similar principles as in AASB 117. Therefore, AASB 16 does not have a significant impact for leases where the Authority is the lessor.
(ii) Issued but Not Yet Effective
NSW public sector entities are not permitted to early adopt new AAS, unless NSW Treasury determines otherwise.
The following new AAS have not been applied and are not yet effective.
• AASB 17 Insurance Contracts • AASB 1059 Service Concession Arrangements: Grantors • AASB 2018-5 Amendments to Australian Accounting Standards – Deferral of AASB 1059 • AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business • AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material • AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework • AASB 2019-2 Amendments to Australian Accounting Standards – Implementation of AASB 1059 • AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform • AASB 2019-7 Amendments to Australian Accounting Standards – Disclosure of GFS Measures of Key Fiscal Aggregates and GAAP/GFS Reconciliations
These Standards will not have a material impact on the Authority’s financial statements.
9 056 NSW Telco Authority Annual Report 2019/2020
(j) Natural disasters and financial impact on the Authority
The natural disasters in the financial year, primarily coronavirus (“COVID-19”) and the bushfires, have had a major impact on individuals, businesses and the government sector.
The primary area of heightened risk from COVID-19 is to the Authority’s workforce, in both public-facing and office based roles. As a result, significant focus has been placed on managing work health and safety (WHS) risks, physical, mental and social. Most office-based staff have moved to working from home arrangements, and the Authority has acted to reduce any adverse impact on staff arising from these work arrangements. Frontline staff have also been provided with guidance in relation to hygiene, travel, illness prevention, and flexible working. The Authority continues to support the health and safety of its staff.
The Authority has identified and quantified, no material impacts to the financial statements for the financial year ended 30 June 2020.
2. EXPENSES EXCLUDING LOSSES
(a) Personnel Services Expenses 2020 2019 $’000 $’000 Salaries and wages (including annual leave)* 10,019 5,534 Superannuation 684 394 Long service leave 25 29 Workers’ compensation insurance 27 15 Payroll tax and fringe benefits tax 563 324 Voluntary redundancy - 153 11,318 6,449 * Personnel services expenses of $1,606,035.8 (2019: $7,296,579) have been capitalised in various capital works and therefore are excluded from the above.
(b) Other Operating Expenses include the following: 2020 2019 $’000 $’000 Auditor’s remuneration - audit of the financial statements 89 70 Network operating expenses 20,004 23,087 Operating lease rental expense – minimum lease payments - 7,128 Rental payments for licenses 2,347 - Short-term leases 144 - Maintenance 823 479 Legal Fees 1,083 795 Consultants 348 1,275 Other contractors* 5,394 7,782 Power 623 452 Service management 1,814 2,676 Corporate services 1,350 - Minor equipment 45 435 Insurance 278 299 Software expenses 2,316 1,055 Service fee 2,270 1,687 Other 3,180 654 42,108 47,874
*Contract costs of $5,394,295 (2019: $7,782,010) were reclassified from personnel services expenses as these pertain to external contractors.
10 Financial Statements 057
Recognition and Measurement Lease expense (up to 30 June 2019) Operating leases Up to 30 June 2019, operating lease payments are recognised as an operating expense in the Statement of Comprehensive Income on a straight-line basis over the lease term. An operating lease is a lease other than a finance lease.
Lease expense (from 1 July 2019) • From 1 July 2019, the Authority recognises the lease payments associated with the following types leases as an expense on a straight-line basis: Leases that meet the definition of short-term. i.e. where the lease term at commencement of the lease is 12 months or less. This excludes leases with a purchase option. • Leases of assets that are valued at $10,000 or under when new.
Variable lease payments are not included in the measurement of the lease liability (i.e. variable lease payments that do not depend on an index or a rate, initially measured using the index or rate as at the commencement date). These payments are recognised in the period in which the event or condition that triggers those payments occurs.
Maintenance expense Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement or an enhancement of a part or component of an asset, in which case the costs are capitalised and depreciated.
Insurance The Authority’s insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self-insurance for Government entities. The expense (premium) is determined by the Fund Manager based on past claims experience.
(c) Depreciation and Amortisation Expense 2020 2019 $’000 $’000 Depreciation charge (PP&E) - Land - - - Plant and equipment 10,972 9,855 - Leasehold improvements 1,123 997
Depreciation charge (right-of-use assets) - Telecommunication sites 4,975 -
17,070 10,852
Amortisation - Intangible assets 3,864 2,431 20,934 13,283
Refer to Note 9 and 11 for recognition and measurement policies on depreciation and amortisation.
(d) Grants and Subsidies 2020 2019 $’000 $’000 Mobile Black Spot Program 4,434 4,054 Regional Digital Connectivity 1,181 - Enterprise Telecommunications Optimisation Program - 5,698 Critical Communications Enhancement Program 6,459 4,862 12,074 14,614
Mobile Black Spot Program The NSW Government participated in the Australian Government’s Mobile Black Spots Program (MBSP) and has committed to co-contribute to 150 new or improved mobile base stations in NSW. The Authority was identified as being in the best position to lead the rollout of the Mobile Black Spot Program. This expenditure is funded by the Restart Grant program.
11 058 NSW Telco Authority Annual Report 2019/2020
Regional Digital Connectivity The State Infrastructure Strategy 2018 (SIS) sets a benchmark for state-wide internet connectivity of 25 megabits per second (mbps) download speeds by 2020, and 50 mbps by 2025. The Regional Digital Connectivity (RDC) program aims to provide upgraded internet services where required to meet SIS benchmarks. Under RDC program, regional towns close to the ACT border and in Kangaroo Valley will be upgraded to 25/5 Mbps in Q3 2021 and 50/10 Mbps in Q2 2025.
Enterprise Telecommunications Optimisation Program The Enterprise Telecommunications Optimisation Program (ETOP) has been tasked with driving the NSW Government Telecommunications Strategy for the Whole of Government. The Authority is funding this Program in recognition of the potential future savings this Strategy could create for the Authority. The Program is still on-going; however, no expense was incurred in 2020.
Critical Communications Enhancement Program Funding for the Critical Communications Enhancement Program (CCEP) included a partial grant for procurement of terminals (radio hardware) for frontline users and vehicles. The Program Steering Committee approved the allocation of the grant monies. The terminals were purchased under a Whole-of-Government Scheme and included negotiation for volume discounts.
(e) Finance Costs 2020 2019 $’000 $’000 Interest expense 1,136 - Unwind discount on Leasehold Makegood Provision - 106 1,136 106
Recognition and Measurement Finance costs consist of the periodic unwinding of the discount rate embedded in the Lease Liability are recognised as expenses in the period in which they are incurred, in accordance with NSW Treasury’s mandate to not-for profit NSW General Government Sector Entities.
3. REVENUE
Recognition and Measurement Until 30 June 2019, income is recognised in accordance with AASB 111 Construction Contracts, AASB 118 Revenue and AASB 1004 Contributions.
From 1 July 2019, income is recognised in accordance with the requirements of AASB 15 Revenue from Contracts with Customers or AASB 1058 Income of Not-for-Profit Entities, dependent on whether there is a contract with a customer defined by AASB 15. Commentary regarding the accounting policies for the recognition of income are discussed below.
2020 2019 $’000 $’000 Movement of Section 4.7 GSF Act – deemed appropriations: Opening balance - - Adjusted for appropriations deemed on commencement of s.4.7 52,058 - Adjusted opening balance 52,058 - Add: additions of deemed appropriations 188,306 188,702 Less: expenditure charged against deemed appropriations (171,028) (188,702) Closing balance 69,336 -
The Authority’s grant funding is received from the Department of Customer Service (DCS) which receives appropriations from the Consolidated Fund. Appropriations for each financial year are set out in the Appropriation Act for that year. Due to COVID-19, the State Budget and related 2020-21 Appropriation Bill has been delayed and is anticipated to be tabled in Parliament in November 2020. However, pursuant to section 4.10 of the Government Sector Finance Act (GSF Act), the Treasurer has authorised Ministers to spend specified amounts from Consolidated Fund. This authorisation is current from 1 July 2020 until the earlier of 31 December 2020 (or another day prescribed by the regulations) or enactment of the 2020-21 annual Appropriations Act.
12 Financial Statements 059
(a) Revenue from contracts with customers
2020 2019 $’000 $’000
Radio Network Services – Core 52,660 49,070 Radio Network Services – Non-Core 5,517 5,438 Pass-Through 2,137 8,617 60,314 63,125
The Authority derives revenue from the transfer of goods and services over time and a point in time from the above- mentioned service lines. The Authority is domiciled in the state of NSW in Australia and all revenue from contracts with customers is derived from this geographical region.
Recognition and Measurement Until 30 June 2019 Rendering of Services Revenue from rendering of services is recognised when the service is provided or by reference to the stage of completion (based on handsets and data usage).
From 1 July 2019 Rendering of Services Revenue from rendering of services is recognised when the Authority satisfies the performance obligation by transferring the promised services. The Authority typically satisfies its performance over time as per the contract with the customer. The payments are typically due when the service is provided or by reference to the stage of completion (based on handsets and data usage). Revenue from providing such services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.
Where the contracts include multiple performance obligations, the transaction price will be allocated to each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are estimated based on expected cost-plus margin. If contracts include the installation of hardware, revenue for the hardware is recognised at a point in time when the hardware is delivered, the legal title has passed and the customer has accepted the hardware. Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management.
If the services rendered by the Authority exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised. The revenue is measured at the transaction price agreed under the contract. No element of financing is deemed present as payments are due when service is provided.
(b) Grants and Other Contributions 2020 2019 $’000 $’000 Mobile Blackspot Program (MBSP) (Restart Fund) 4,434 4,054 Regional Digital Connectivity (RDC) (Restart Fund) 1,181 - Contribution received (external third party) - 54 Grants received from DCS – Recurrent 10,056 10,313 Grants received from DCS – Capital 96,158 103,559 111,829 117,980
Recognition and Measurement Until 30 June 2019 Income from grants (other than contribution by owners) is recognised when the Authority obtains control over the contribution. The Authority is deemed to have assumed control when the grant is received or receivable.
Contributions are recognised at their fair value. Contributions of services are recognised when and only when a fair value of those services can be reliably determined and the services would be purchased if not donated.
13 060 NSW Telco Authority Annual Report 2019/2020
From 1 July 2019 Income from grants to acquire/construct a recognisable non-financial asset to be controlled by the Authority, is recognised when the Authority satisfies its obligations under the transfer. The Authority satisfies the performance obligations under the transfer to construct assets over time as the non-financial assets are being constructed. The percentage of cost incurred is used to recognise income, because this most closely reflects the progress to completion.
Revenue from grants with sufficiently specific performance obligations is recognised as when the Authority satisfies a performance obligation by transferring the promised goods. The Authority typically satisfies its performance obligations over time as per the contract with the customer.
Revenue from these grants is recognised based on the grant amount specified in the funding agreement/funding approval, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. No element of financing is deemed present as funding payments are usually received in advance or shortly after the relevant obligation is satisfied.
Income from grants without sufficiently specific performance obligations is recognised when the Authority obtains control over the granted assets (e.g. cash).
(c) Other Income 2020 2019 $’000 $’000 Interest income 415 965 Rental income from sub-leases 52 153 Corporate services* 1,350 - 1,817 1,118 *During the year the authority received corporate services free of charge from the DCS cluster amounting to $1,350,000 (2019: $nil).
Recognition and Measurement Interest Revenue Interest revenue is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset.
4. GAIN/(LOSS) ON DISPOSAL 2020 2019 $’000 $’000 Gain on disposal of plant and equipment (224)) (163)
5. CURRENT ASSETS – CASH AND CASH EQUIVALENTS 2020 2019 $’000 $’000 Cash at bank and on hand 64,092 52,058
For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash at bank and cash on hand.
Cash and cash equivalent assets recognised in the Statement of Financial Position are reconciled at the end of the financial year as shown to the Statement of Cash Flows as follows: 2020 2019 $’000 $’000 Cash and cash equivalents (per Statement of Financial Position) 64,092 52,058 Closing cash and cash equivalents (per Statement of Cash Flows) 64,092 52,058
Refer to Note 20 for details regarding credit risk, liquidity risk and market risk arising from financial instruments.
14 Financial Statements 061
6. CURRENT / NON-CURRENT ASSETS – RECEIVABLES 2020 2019 Current $’000 $’000 Trade receivables from contracts with customers 6,160 8,871 Less: Allowance for expected credit losses - - Prepayments 4,061 4,222 Total Current Receivables 10,221 13,093
Non-Current Prepayments 1,016 -
Total Receivables 11,237 13,093
There were no movements in the allowance for expected credit losses in 2020 and 2019.
Details regarding credit risk of trade receivables that are neither past due nor impaired, are disclosed in Note 20.
Recognition and Measurement Receivables Receivables are initially recognised at fair value plus any directly attributable transaction costs. Trade receivables that do not contain a significant financing component are measured at the transaction price.
Subsequent measurement The Authority holds receivables with the objective to collect the contractual cash flows and therefore measures them at amortised cost using the effective interest method, less any impairment. Changes are recognised in the net result for the year when impaired, derecognised or through the amortisation process.
Impairment The Authority recognises an allowance for expected credit losses (ECLs) for all debt financial assets not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows that the Authority expects to receive, discounted at the original effective interest rate.
For trade receivables, the Authority applies a simplified approach in calculating ECLs. The Authority recognises a loss allowance based on lifetime ECLs at each reporting date. The Authority has established a provision matrix based on its historical credit loss experience for trade receivables, adjusted for forward-looking factors specific to the receivable. No ECLs were provided in 2020.
7. CURRENT ASSETS – INVENTORIES 2020 2019 $’000 $’000 Spare parts – at cost 1,221 907
Recognition and Measurement Inventories held for distribution are stated at cost, adjusted when applicable, for any loss of service potential. A loss of service potential is identified and measured based on the existence of a current replacement cost that is lower than the carrying amount.
The cost of inventories acquired at no cost or for nominal consideration is the current replacement cost as at the date of acquisition. Current replacement cost is the cost the Authority would incur to acquire the asset as at the end of the reporting period.
8. CURRENT ASSETS – OTHER 2020 2019 $’000 $’000 Net GST recoverable 1,785 1,278
15 062 NSW Telco Authority Annual Report 2019/2020
9. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT
(a) Total Property, Plant and Equipment
Plant and Assets Under Leasehold Land Equipment Construction Improvements Total At 30 June 2020 – fair value $’000 $’000 $’000 $’000 $’000 Gross carrying amount 320 178,725 188,782 8,543 376,370 Accumulated depreciation and - (87,779) - (2,674) (90,453) impairment Net carrying amount 320 90,946 188,782 5,869 285,917
At 30 June 2019 – fair value Gross carrying amount 320 137,423 136,380 8,379 282,502 Accumulated depreciation and - (80,805) - (1,878) (82,683) impairment Net carrying amount 320 56,618 136,380 6,501 199,819
Reconciliation A reconciliation of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current reporting period is set out below:
Plant and Assets Under Leasehold Land Equipment Construction Improvements Total Year ended 30 June 2020 $’000 $’000 $’000 $’000 $’000 Net carrying amount at beginning 320 56,618 136,380 6,501 199,819 of year Additions - 22 96,915 2,204 99,141 Transfers from/(to) Govt Agencies - 1,155 - - 1,155 Disposals - (164) - (1,939) (2,103) Reclassification - 44,287 (44,513) 226 - Depreciation expense - (10,972) - (1,123) (12,095) Net carrying amount at end of 320 90,946 188,782 5,869 285,917 year
Plant and Assets Under Leasehold Land Equipment Construction Improvements Total Year ended 30 June 2019 $’000 $’000 $’000 $’000 $’000 Net carrying amount at beginning 320 34,741 73,498 3,618 112,177 of year Additions - - 103,599 1,742 105,341 Transfers from/(to) Govt Agencies - 721 (4,862) - (4,141) Disposals - - - (190) (190) Reclassification - 31,011 (35,855) 2,328 (2,516) Depreciation expense - (9,855) - (997) (10,852) Net carrying amount at end of year 320 56,618 136,380 6,501 199,819
Recognition and Measurement Acquisitions of Property, Plant and Equipment Property, plant and equipment are initially recognised at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other AAS.
16 Financial Statements 063
Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.
Where payment for an item is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. the deferred payment amount is effectively discounted over the period of credit.
Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition (see also assets transferred as a result of an equity transfer – Note 15).
Capitalisation Thresholds Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised.
Major Inspection Costs When a major inspection is performed, the labour cost of performing major inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are satisfied.
Restoration Costs The present value of the expected cost for the restoration or cost of dismantling of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.
Maintenance Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated.
Depreciation of Property, Plant and Equipment Depreciation is provided for on a straight-line basis for all depreciable assets to write off the depreciable amount of each asset as it is consumed over its useful life to the Authority.
All material identifiable components of assets are depreciated separately over their useful lives. Land is not a depreciable asset.
The depreciation rates used for each class of assets are:
Plant and Equipment Huts and Towers 2.5% to 5.0% Network Equipment 10.0% Leases and leasehold Shorter of estimated useful life of improvements and term of lease Improvements
Revaluation of Property, Plant and Equipment Physical non-current assets are valued in accordance with the “Valuation of Physical Non-Current Assets at Fair Value” Policy and Guidelines Paper (TPP 14-01). This policy adopts fair value in accordance with AASB 116 Property, Plant and Equipment and AASB 13 Fair Value Measurement.
Non-specialised assets with short useful lives, like plant and equipment, are measured at depreciated historical cost as an approximation of fair value. The Authority has assessed that any difference between fair value and depreciated historical cost is unlikely to be material using an interim revaluation. The Authority has not performed a comprehensive revaluation.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end.
Impairment of Property, Plant and Equipment As a not-for-profit entity with no cash generating units, impairment under AASB 136 Impairment of Assets is unlikely to arise. Since property, plant and equipment is carried at fair value or an amount that approximates fair value, impairment can only arise in the rare circumstances such as where the costs of disposal are material. Specifically, impairment is unlikely for not-for-profit entities given that AASB 136 modifies the recoverable amount test for non- cash generating assets of not-for-profit entities to the higher of fair value less costs of disposal and depreciated replacement cost, where depreciated replacement cost is also fair value.
17 064 NSW Telco Authority Annual Report 2019/2020
The Authority assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Authority estimates the asset’s recoverable amount. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
As a not-for-profit entity, an impairment loss is recognised in the net result to the extent the impairment loss exceeds the amount in the revaluation surplus for the class of asset. After an impairment loss has been recognised, it is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in net result and is treated as a revaluation increase. However, to the extent that an impairment loss on the same class of asset was previously recognised in the net result, a reversal of that impairment loss is also recognised in net result.
Impact of Natural Disasters During the year, NSW was impacted by natural disasters including bushfires, floods and drought. The Authority assessed for indicators of impairment, identifying bushfire damage to certain plant and equipment. The total estimated cost of replacement on damaged sites is approximately $6.5 million and a further estimated $4.0 million related to emergency support costs. The Authority is in the process of submitting insurance claims to iCare to replace the damaged assets at carrying value and recover the incremental network managed provider costs. The claims process is expected to be completed by the end of 2020-21.
Also, the impact to the Authority caused by the bushfires on the delivery of the CCEP was a six-month delay. The estimated cost of this is $27.0 million across the program life. The Authority has engaged legal representation through iCare to assist with the recovery of the CCEP supplier claims.
During 2020, the Authority recognised $2.5 million in the Statement of Comprehensive Income, comprising emergency support costs and plant and equipment assets written-off. If the Authority does incur additional losses, these will be presented in the Loss on Disposal in the Statement of Comprehensive Income and a write-off of Plant and Equipment in the Statement of Financial Position. The Authority determined no changes to useful lives was necessary as a result due to the minimal consequence on the remaining operations.
10. NON-CURRENT ASSETS – LEASES
(a) Entity as a Lessee
The Authority has entered into operating lease agreements with government agencies and private companies for provision of accommodation and plant and equipment for the Authority’s use. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. The Authority does not provide residual value guarantees in relation to leases.
Property Leases Accommodation leases are entered into with multiple lessors. The term of accommodation leases ranges from two to ten years with the option for renewal for further terms. Longer terms generally deliver more favourable rentals from Lessors but also have the ability to commit the Authority for a period which it may not require, therefore the term of any of these leases is dictated by the anticipated duration of the operational need of any given facility. The Authority also hold leases with private lessors for commercial and/or industrial facilities which have a term of five to ten years.
The lease agreements allows the lessor to review rents on specified dates. There is no option for the purchase of properties at the expiry of the lease term. Recurrent outgoings and fit outs are the responsibility of the Authority while all building repairs and maintenance are the responsibility of the lessor.
Data Centre Lease As part of the Data Centre Reform Project the NSW Government entered into an Agreement for Lease and Service Deed with a third-party contractor on 25 May 2012 to provide data capacity across the government sector. The lease term is 10 years and the cluster department DCS will manage this lease commitment on behalf of the State government. The cost of this commitment will be offset in Telco by Fees for Service recovered from other government agencies mandated to utilise the load capacity of the Data Centres.
From 1 July 2019, AASB 16 requires a lessee to recognise a right-of-use asset for most leases. The right-of-use asset and corresponding liability are initially measured at the present value of the future lease payments.
18 Financial Statements 065
Right-of-use Assets Under Leases The following table presents right-of use assets that do not meet the definition of investment property.
Telecommunication sites Total Balance at 1 July 2019 $’000 $’000 Recognition of right-of-use assets on initial application of AASB 16 44,684 44,684 Additions 19,549 19,549 Depreciation expense (4,975) (4,975) Balance at 30 June 2020 59,258 59,258
Recognition and Measurement (under AASB 16 from 1 July 2019) The Authority assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Subsequent to the adoption of AASB 16, the Authority, as a lessee, recognises a right-of-use asset at cost and a corresponding lease liability at the lease commencement date.
Right-of-use assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability • any lease payments made at or before the commencement date less any lease incentives received • any initial direct costs, and • restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If ownership of the leased asset transfers to the Authority at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
The right-of-use assets are also subject to impairment. The entity assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the entity estimates the asset’s recoverable amount. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. After an impairment loss has been recognised, it is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the net result. Refer to Note 13 for details regarding the Authority’s lease liabilities.
Extension and termination options are included in a number of telecommunication sites leases. These are used to maximise operational flexibility in terms of managing the assets used in the Authority’s operations. The majority of extension and termination options held are exercisable only by the Authority and not by the respective lessor.
Critical judgements in determining the lease term In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
Critical judgements in determining the useful lives The expected useful life of the asset includes a judgement as to whether available extension changes will be exercised. Changes to this assessment are reflected as a remeasurement, with a corresponding adjustment for the liability. In assessing whether a right-of-use asset is impaired, judgement is required to determine the recoverable value of the asset.
19 066 NSW Telco Authority Annual Report 2019/2020
Recognition and Measurement (under AASB 117 until 30 June 2019) The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset (or assets), even if that asset (or those assets) is not explicitly specified in an arrangement. Until 30 June 2019, a lease was classified at the inception date as a finance lease or an operating lease. A lease that transferred substantially all the risks and rewards incidental to ownership to the Authority was classified as a finance lease.
Where a non-current asset was acquired by means of a finance lease at the commencement of the lease, the asset was recognised at its fair value or, if lower, at the present value of the minimum lease payments. The corresponding liability was established at the same amount. Lease payments were apportioned between finance charges and reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges were recognised in finance costs in the Statement of Comprehensive Income.
Property, plant and equipment acquired under finance leases depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Authority will obtain ownership by the end of the lease term, the asset was depreciated over the shorter of the estimated useful life of the asset and the lease term.
An operating lease is a lease other than a finance lease. Operating lease payments were recognised as an operating expense in the Statement of Comprehensive Income on a straight-line basis over the lease term.
(b) Entity as a Lessor
The Authority’s properties are leased to tenants under operating leases with rentals payable monthly. Lease payments for some contracts include CPI increases, but there are no other variable lease payments that depend on an index or rate.
Although the Authority is exposed to changes in the residual value at the end of current leases, the Authority typically enters into new operating leases and therefore will not immediately realise any reduction in residual value at the end of these leases. Expectations about the future residual values are reflected in the fair value of the properties.
Lessor for Operating Leases Future minimum rentals receivable (undiscounted) under non-cancellable operating lease as at 30 June are, as follows:
2020 2019 $’000 $’000 Within one year 113 169 Later than one year and not later than five years 229 93 Later than five years 67 - Total (including GST) 409 262
Recognition and Measurement – Lessor for Operating Leases An operating lease is a lease other than a finance lease. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the Statement of Comprehensive Income due to its operating nature.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the underlying asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.
20 Financial Statements 067
11. NON-CURRENT ASSETS – INTANGIBLE ASSETS
Network Assets Under Software Licences Construction Total At 30 June 2020 $’000 $’000 $’000 $’000 Cost (gross carrying amount) 11,128 14,943 - 26,071 Accumulated amortisation and impairment (5,918) (3,329) - (9,247) Net carrying amount 5,209 11,615 - 16,824
At 30 June 2019 Cost (gross carrying amount) 10,490 6,565 8,379 25,434 Accumulated amortisation and impairment (3,660) (1,724) - (5,384) Net carrying amount 6,830 4,841 8,379 20,050
Reconciliation A reconciliation of the cost of each class of intangible assets at the beginning and end of the current and previous reporting period is set out below:
Network Assets Under Software Licences Construction Total Year Ended 30 June 2020 $’000 $’000 $’000 $’000 Net carrying amount at beginning of year 6,830 4,841 8,379 20,050 Additions / (Transfers) 638 - - 638 Disposals - - - - Reclassification - 8,379 (8,379) - Amortisation (recognised in depreciation and (2,259) (1,605) - (3,864) amortisation) Net carrying amount at end of year 5,209 11,615 - 16,824
As at 1 July 2019 Cost (gross carrying amount) 10,490 6,565 8,379 25,434 Accumulated amortisation and impairment (3,660) (1,724) - (5,384) Net carrying amount 6,830 4,841 8,379 20,050
Year Ended 30 June 2019 Net carrying amount at beginning of year 6,463 - 13,502 19,965 Additions - - - - Disposals - - - - Reclassification 2,516 5,123 (5,123) 2,516 Amortisation (recognised in depreciation and (2,149) (282) - (2,431) amortisation) Net carrying amount at end of year 6,830 4,841 8,379 20,050
Recognition and Measurement The Authority recognises intangible assets only if it is probable that future economic benefits will flow to the Authority and if the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition. Following initial recognition, intangible assets are subsequently measured at fair value only if there is an active market. As there is no active market for the Authority’s intangible assets, the assets are carried at cost less any accumulated amortisation and impairment losses.
All research costs are expensed. Development costs are only capitalised when certain criteria are met.
The useful lives of intangible assets are assessed to be finite. The Authority’s intangible assets are amortised using the straight-line method over a period of 4 years. These rates remain unchanged from the previous year. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.
21 068 NSW Telco Authority Annual Report 2019/2020
Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount, the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss.
12. CURRENT LIABILITIES – PAYABLES 2020 2019 $’000 $’000 Accrued personnel services expenses 1,349 1,986 Creditors 3,719 5,503 Deferred Income 10,607 - Accrued Expenses 20,393 33,136 36,068 40,625
Refer to Note 20 for details regarding credit risk, liquidity risk and market risk arising from financial instruments.
Recognition and Measurement Payables represent liabilities for goods and services provided to the Authority and other amounts. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.
Payables are financial liabilities at amortised cost, initially recognised at fair value, net of directly attributable transaction costs. These are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in the net result when the liabilities are derecognised as well as through the amortisation process.
Accrued salaries, wages and on-costs The Authority receives personnel services from DCS. DCS is not a Special Purpose Service Entity and does not control the Authority under this arrangement.
In accordance with NSW Treasury Circular 15/07 “Financial and Annual Reporting Requirements Arising from Personnel Service Arrangements”, a liability representing the total amount payable to the Department of Customer Service is recognised in the Statement of Financial Position.
As the Authority is not an employer, the disclosure requirements of AASB 119 Employee Benefits in respect of employee benefits do not apply.
13. CURRENT / NON-CURRENT LIABILITIES – BORROWINGS
2020 2019 Current $’000 $’000 Lease liabilities 4,724 -
Non-Current Lease liabilities 55,009 - Total Borrowings 59,733 -
Lease liabilities The following table presents liabilities under leases: $’000 Balance at 1 July 2019 44,684 Additions 19,550 Interest expenses 1,136 Payments (5,637) Balance at 30 June 2020 59,733
22 Financial Statements 069
The following amounts were recognised in the statement of comprehensive income for the year $’000 ended 30 June 2020 in respect of leases where the entity is the lessee: Depreciation expense of right-of-use assets 4,975 Interest expense on lease liabilities 1,136 Expense relating to short-term leases 144 Expense relating to leases of low-value assets - Income from subleasing right-of-use assets (51) Gains or losses arising from sale and leaseback transactions - Total amount recognised in the statement of comprehensive income 6,204
Recognition and Measurement The Authority’s lease liabilities are included in borrowings. Refer to Note 10 for details regarding the Authority’s lease assets.
Lease liabilities Finance lease liabilities are determined in accordance with AASB 117 until 30 June 2019. From 1 July 2019, lease liabilities are determined in accordance with AASB 16.
At the commencement date of the lease, the Authority recognises lease liabilities measured at the present value of lease payments to be made over the lease term. Lease payments include:
• fixed payments (including in substance fixed payments) less any lease incentives receivable; • variable lease payments that depend on an index or a rate; • amounts expected to be paid under residual value guarantees; • exercise price of a purchase options reasonably certain to be exercised by the Authority; and • payments of penalties for terminating the lease, if the lease term reflects the Authority exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for the Authority’s leases, the lessee’s incremental borrowing rate is used, being the rate that the Authority would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
Critical judgements in determining the incremental borrowing rate In determining the present value of the future lease payments, the Authority discounts the lease payments using an incremental borrowing rate (IBR). The IBR reflects the financing characteristics and duration of the underlying lease. Once a discount rate has been set for a leased asset (or portfolio of assets with similar characteristics), this rate will remain unchanged for the term of that lease. When a lease modification occurs, and it is not accounted for as a separate lease, a new IBR will be assigned to reflect the new characteristics of the lease.
Future minimum lease payments under non-cancellable leases as at 30 June 2019 are, as follows: $’000 Within one year 4,953 Later than one year and not later than five years 9,005 Later than five years 5,626 Total (including GST) 19,584
23 070 NSW Telco Authority Annual Report 2019/2020
14. CURRENT / NON-CURRENT LIABILITIES – PROVISIONS 2020 2019 Current $’000 $’000 Claims 20,250 - Restoration costs 206 - Total 20,456 - Non-Current* Restoration costs 8,469 6,371 Total Provisions 28,924 6,371
Movements in provisions Carrying amount as at beginning of year 6,371 6,316 Additional provisions recognised 22,627 1,715 Amounts utilised (130) (1,766) Unused amounts reversed (14) - Unwinding at discount rate 70 106 Carrying amount at end of year 28,924 6,371 *expected to be settled after 12 months
Recognition and Measurement Other Provisions Provisions are recognised when the Authority has a present legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation. When the Authority expects some or all provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented net of any reimbursement in the Statement of Comprehensive Income.
Any provisions for restructuring are recognised only when the Authority has a detailed formal plan and the Authority has raised a valid expectation in those affected by the restructuring that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected.
Provisions include restoration costs on leased telecommunication sites. The provision is calculated based on current cost estimates for asset dismantling, removal and site restoration activities implicit in each lease agreement, which are then discounted to present value. The provisions are established by individual lease. The unamortised value of the obligation is recorded as an asset.
If the effect of the time value of money is material, provisions are discounted using the Commonwealth government bond rate (2020: between 0.175 and 1.010; 2019: between 1.490 and 2.580) which is a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time (i.e. unwinding of discount rate) is recognised as a finance cost.
During the year, a total of $20 million of vendor settlement claims were provided for by the Authority. These claims have been capitalised as part of the CCEP business case as they related to design descope contract variations. The Authority expects resolution of the matters and payments in 2020-21.
15. EQUITY
Recognition and Measurement Accumulated Funds The category 'Accumulated Funds' includes all current and prior period retained funds.
Equity transfers - Recognition and Measurement The transfer of net assets between entities as a result of an administrative restructure, transfers of programs / functions and parts thereof between NSW public sector entities and 'equity appropriations' are designated or required by AAS to be treated as contributions by owners and recognised as an adjustment to 'Accumulated Funds'. This treatment is consistent with AASB 1004 Contributions and Australian Interpretation 1038 Contributions by Owners Made to Wholly Owned Public Sector Entities.
24 Financial Statements 071
Transfers arising from an administrative restructure involving not-for-profit and for-profit government entities are recognised at the amount at which the assets and liabilities were recognised by the transferor immediately prior to the restructure. In most instances this will approximate fair value.
All other equity transfers are recognised at fair value, except for intangibles. Where an intangible has been recognised at (amortised) cost by the transferor because there is no active market, the Authority recognises the asset at the transferor’s carrying amount. Where the transferor is prohibited from recognising internally generated intangibles, the Authority does not recognise that asset.
During the year, a total of 28 towers, huts and shelters, with a combined valuation of $1,155,000, were transferred from NSW Police Department to the Authority. This transfer was approved by the respective Ministers. In March 2019, twelve towers and shelters, with a combined valuation of $721,000 were transferred from NSW Police Department to the Authority. This transfer was approved by the respective Ministers.
16. COMMITMENTS
2020 2019 Capital Commitments $’000 $’000 Aggregate capital expenditure for the acquisition of information technology equipment and other equipment contracted for at balance date and not provided for:
Within one year 79,356 113,591 Later than one year and not later than five years - - Later than five years - - Total (including GST) 79,356 113,591
17. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Authority is seeking claim from insurance for Property site damage, Emergency Operations Costs and delay in CCEP projects due to recent bush fires/natural disaster events at the date of these financial statements and management believes that a favourable outcome is probable. However, the contingent asset has not been recognised as a receivable at 30 June 2020 as receipt of the amount is dependent on the outcome of the finalisation of the claims.
18. BUDGET REVIEW
The budgeted amounts are drawn from the original budgeted financial statements presented to Parliament in respect of the reporting period. Subsequent amendments to the original budget (e.g. adjustment for transfer of functions between entities as a result of Administrative Arrangements Orders) are not reflected in the budgeted amounts. Major variances between the original budgeted amounts and the actual amounts disclosed in the financial statements are explained below.
Net result The actual net result for the Authority for 2020 is a surplus of $86.6 million (2019: $99.7 million surplus) which was unfavourable to the budgeted net result by $62.2 million. The major variations to budgets are:
Total Revenue was $79.5 million unfavourable to budget, mainly in grants and contributions due to CCEP, MBSP and RDC carry forwards to 2020-21 and 2021-22.
Total Expenses were $17.0 million favourable to budget, due to delayed claims by suppliers associated with MBSP, subsequently carried forward to 2020-21.
Assets and liabilities Net Assets: The actual net assets of $315.6 million (2019: $240.2 million net assets) were unfavourable to budget by $73.8 million and was mainly due to the carry forward of elements of the CCEP construction phase to 2020-21 and 2021-22.
25 072 NSW Telco Authority Annual Report 2019/2020
Total Assets were unfavourable to budget by $12.7 million mainly due to delays in the construction of the CCEP carried forward to 2020-21 and 2021-22, offset by increases in cash balances due to the funding of the CCEP and increases in trade receivables and prepayments, which are indicative of the business, unlike the budget.
Total Liabilities were unfavourable to budget by $61.1 million due to the lower payables driven by timing differences in the construction phase of the CCEP and increase in ROUA 5 to 20 years.
Cash flows Net increase in cash during the year is $12.0 million compared to a budgeted net decrease in cash of $1.4 million. The favourable variance of $13.4 million was driven by lower purchases of property, plant and equipment than budgeted.
19. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET RESULT
2020 2019 $’000 $’000 Net cash from operating activities 113,066 92,930 Depreciation and amortisation (20,934) (13,283) Finance costs (744) (106) Net gain/(loss) on sale of plant and equipment 224 (163) Increase/(decrease) in receivables (1,857) 6,391 Increase/(decrease) in inventories 314 101 (Increase)/decrease in payables (3,962) 13,657 Increase/(decrease) in other assets 507 207 Net result 86,614 99,734
20. FINANCIAL INSTRUMENTS
The Authority’s principal financial instruments are outlined below. These financial instruments arise directly from the Authority’s operations or are required to finance the Authority’s operations. The Authority does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
The Authority’s main risks arising from financial instruments are outlined below, together with the Authority’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial statements.
The Managing Director has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Authority, to set risk limits and controls and to monitor risks. Compliance with policies if reviewed by the Authority on a continuous basis.
(a) Financial Instrument Categories
2020 2019 $’000 $’000 Carrying Carrying Financial Assets Note Category Amount Amount Class: Cash and cash equivalents 5 Amortised cost 64,092 52,058 Receivables(i) 6 Amortised cost 6,160 8,064 Financial Liabilities Note Category Class: Payables(ii) 12 Financial liabilities measured at amortised cost 25,461 40,625 Borrowings 13 Financial liabilities measured at amortised cost 59,733 - (i) Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7) (ii) Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7)
The Authority determines the classification of its financial assets and liabilities after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end.
26 Financial Statements 073
(b) Derecognition of financial assets and financial liabilities
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the contractual rights to the cash flows from the financial assets expire; or if the Authority transfers its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either:
• the Authority has transferred substantially all the risks and rewards of the asset; or • the Authority has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control.
When the Authority has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. Where the Authority has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset continues to be recognised to the extent of the Authority’s continuing involvement in the asset. In that case, the Authority also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Authority has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Authority could be required to repay.
A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the net result.
(c) Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Statement of Financial Position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
(d) Financial risks
i. Credit Risk
Credit risk arises when there is the possibility of the Authority’s debtors defaulting on their contractual obligations, resulting in a financial loss to the Authority. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment).
Credit risk arises from the financial assets of the Authority, including cash, receivables, and authority deposits. No collateral is held by the Authority. The Authority has not granted any financial guarantees.
Credit risk associated with the Authority’s financial assets, other than receivables, is managed through the selection of counterparties and establishment of minimum credit rating standards. Authority deposits held with NSW Treasury Corporation (TCorp) are guaranteed by the State.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily bank balances at the monthly average TCorp 11am unofficial cash rate, adjusted for a management fee to NSW Treasury.
Accounting policy for impairment of trade receivables and other financial assets under AASB 9
Receivables - Trade Receivables
Collectability of trade receivables is reviewed on an ongoing basis. Procedures as established in the Treasurer’s Directions are followed to recover outstanding amounts, including letters of demand. The Authority applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. 27 074 NSW Telco Authority Annual Report 2019/2020
To measure the expected credit losses, trade receivables and contract assets, have been grouped based on shared credit risk characteristics and the days past due.
The expected loss rates are based on historical observed loss rates. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. Where the Authority has receivables from the Government and agencies or the Australian Government, no loss allowance is recorded for these receivables on the basis of materiality and zero risk of default.
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, a failure to make contractual payments for a period of greater than 30 days past due.
The loss allowance for trade receivables as at 30 June 2020 and 2019 was determined as follows:
30 June 2020 $000 30–60 61–90 >91 Current <30 days days days days Total Expected credit loss rate 0.0% 0.0% 0.0% 0.0% 0.0% Estimated total gross 512 3,354 61 27 626 4,580 carrying amount at default Expected credit loss ------Total 512 3,354 61 27 626 4,580 Notes: The analysis excludes statutory receivables, prepayments, as these are not within the scope of AASB 7. Therefore, the 'total' will not reconcile to the receivables total in Note 6.
30 June 2019 $000 30–60 61–90 >91 Current <30 days days days days Total Expected credit loss rate 0.0% 0.0% 0.0% 0.0% 0.0% Estimated total gross 3,011 3,543 52 73 614 7,293 carrying amount at default Expected credit loss ------Total 3,011 3,543 52 73 614 7,293 Notes: The analysis excludes statutory receivables, prepayments, as these are not within the scope of AASB 7. Therefore, the 'total' will not reconcile to the receivables total in Note 6.
The Authority is not materially exposed to concentrations of credit risk to a single debtor or group of debtors as at 30 June 2020 and 2019. Most debtors have AAA credit rating.
The only financial assets that are past due or impaired are ‘sales of goods and services’ in the ‘receivables’ category of the Statement of Financial Position.
ii. Liquidity Risk
Liquidity risk is the risk that the Authority will be unable to meet its payment obligations when they fall due. The Authority continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high-quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans and other advances.
During the current and prior year, no assets have been pledged as collateral. The Authority’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.
28 Financial Statements 075
The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in Treasurer’s Direction NSW TC 11/12. For small business suppliers, where terms are not specified, payment is made no later than 30 days from date of receipt of a correctly rendered invoice. For small business suppliers, where payment is not made within the specified time period, simple interest must be paid automatically unless an existing contract specifies otherwise. For other suppliers, if trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. For payments to other suppliers, the Head of an authority (or person appointed by the Head of an authority) may automatically pay the supplier simple interest. There was no interest applied to trade payables during the year.
The table below summarises the maturity profile of the Authority’s financial liabilities based on contractual undiscounted payments, together with the interest rate exposure.
30 June 2020 $000 1–5 > 5 years <1 year years Total Payables 25,461 - - 25,461 Lease liabilities 5,996 22,669 46,188 74,853 Total 11,064 22,669 46,188 100,314
30 June 2019 $000 1–5 > 5 years <1 year Years Total Payables 40,625 - - 40,625 Lease liabilities - - - - Total 40,625 - - 40,625
iii. Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Authority has no exposure to foreign currency risk and does not enter into commodity contracts.
The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below for interest rate risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Authority operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the Statement of Financial Position date. The analysis is performed on the same basis as for 2019. The analysis assumes that all other variables remain constant.
iv. Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Exposure to interest rate risk arises primarily through the Authority’s interest-bearing liabilities, which is new in 2020 following the adoption of AASB 16 Leases. The exposure to interest rate risk is measured by interest rate sensitivity by a 0.5% change +/- from the year end rates applicable to the Authority’s lease liabilities and would impact net results and equity by $7.3m +/- (2019: nil).
(e) Fair Value Measurement
(i) Fair value compared to carrying amount
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that
29 076 NSW Telco Authority Annual Report 2019/2020
the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market, in the most advantageous market for the asset or liability.
Financial instruments are generally recognised at cost. The amortised cost of financial instruments recognised in the Statement of Financial Position approximates the fair value, because of the short-term nature of many of the financial instruments.
(ii) Fair value recognised in the Statement of Financial Position
Management assessed that cash and short-term deposits, trade receivables, trade payables and other current liabilities approximate their fair values, largely due to the short-term maturities of these instruments.
When measuring fair value, the valuation technique used maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Under AASB 13, the Authority categorises, for disclosure purposes, the valuation techniques based on the inputs used in the valuation techniques as follows: • Level 1 – quoted (unadjusted) prices in active markets for identical assets / liabilities that the Authority can access at the measurement date.
• Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
• Level 3 – inputs that are not based on observable market data (unobservable inputs).
The Authority recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. There were no assets or liabilities recorded at fair value.
21. RELATED PARTY DISCLOSURES
Key management personnel The total remuneration of the key management personnel of the Authority are as follows:
2020 2019 $’000 $’000 Short-term employee benefits: - Salaries 331 333 - Non-monetary benefits - - Other long-term employee benefits - - Post-employment benefits 21 20 Termination benefits - - Total remuneration 352 353
Other related party transactions During the year, the Authority entered into transactions with other entities that are controlled/jointly controlled/significantly influenced by NSW Government. These transactions in aggregate are a significant portion of the Authority’s sale of goods/rendering of services/receiving of services, in aggregate are as follows:
2020 2019 $’000 $’000 Net Transaction value Net receivable/ Transaction value receivable/ income/(expense) (payable) income/(expense) (payable) $’000 $’000 $’000 $’000 Nature of transaction Sales of goods/services; grants and 178,971 6,160 180,577 8,285 contributions and other receipts
Purchases of goods/ services; grants (22,355) (1,384) (29,194) (2,014) and subsidies and other payments
DCS Corporate Services During the year, DCS directly provided corporate services to the Authority, including people & culture, finance, legal, procurement, governance, risk & performance, workplace and IT services totalling $1,350,014. The Authority was not charged as the costs were funded through the existing DCS corporate services budget. 30 Financial Statements 077
22. EVENTS AFTER THE REPORTING PERIOD
Non-Adjusting Events There are no known events after the reporting period which would give rise to a material impact on the reported results or financial position of the Authority as at 30 June 2020.
END OF AUDITED FINANCIAL STATEMENTS
31 078 NSW Telco Authority Annual Report 2019/2020
Statutory reporting
Significant matters included in the Statutory Audit Report
The Audit Office of NSW audited the Authority’s financial statements as at 30 June 2020 and issued an unqualified audit opinion and Statutory Audit Report on 20 October 2020. The Statutory Audit Report highlighted the following significant governance matters.
Implementation of AASB 16 Leases
The Authority did not appropriately account for the implementation of new accounting standard AASB 16 Leases, which became effective on 1 July 2019. This resulted in material errors and disclosure deficiencies in the financial statements.
The Authority corrected the misstatements related to leases and updated the note disclosures including the key inputs and significant assumptions applied in the assessment of contracts and calculation of leases in the financial statements.
Management should implement improved policies and procedures in lease contract management and financial reporting to ensure the completeness and accuracy of lease accounting.
Quality and timeliness of financial reporting
The financial statements contained material misstatements and disclosure deficiencies which resulted in delays in completing the audit and issuing the Independent Auditor’s Report.
The Auditor General is required to audit the Authority’s financial statements within 10 weeks of receipt of the financial statements under section 41C of the Public Finance and Audit Act 1983. Due to the delays in resolving financial reporting issues by the Authority, the Independent Auditor’s Report was issued after the statutory due date, which was 14 October 2020.
Management should:
• improve timely preparation of the financial statements and prompt resolution of financial reporting issues • implement appropriate quality controls over financial statement preparation Statutory Reporting 079
Management’s response to significant matters included in the Statutory Audit Report
The Authority acknowledges the issued raised by the NSW Audit Office and confirms the following: Implementation of AASB16 Leases
During the reporting period, the new leasing standard AASB16 came into effect in agencies in DCS and had a material impact on the Financial Statements on the Authority, including the face and explanatory notes.
Some pre-adoption implementation methodologies needed to be changed during the year- end Audit process. This resulted in significant amount of work to be performed in a very short period of time to accurately reflect the leasing portfolio in the books of the Authority, resulting in delays in the preparation of the financial statements.
This was mainly due to:
• The complexity of the new standard in relation to assessing contracts as either licenses or leases and lease term. Due to the tight time frame, volume and variability of contracts we engaged Deloitte to conduct the assessment in detail; and
• The timing of the assessment happened between August-October 2020
Authority management and DCS Finance will conduct a post-audit review of key lessons learned around the implementation of new accounting standards and related impact to the financial statements in order to avoid unforeseen delays in future. Quality and timeliness of financial reporting
The adoption of AASB16 had a significant impact resulting in delays in the preparation of the financial report. Management will adhere to pre-determined timelines as agreed with DCS and the NSW Audit Office to ensure timely reporting. The Authority will implement quality controls including but not limited to:
• different preparers and reviewers within the Authority’s finance team
• Finance Manager and Director review
• the implementation of a AASB compliance checklist to ensure accuracy and completeness of the financial report 080 NSW Telco Authority Annual Report 2019/2020
Payment of Accounts
Aged analysis at the end of each quarter
Current Quarters Total within 30-60 days 61-90 days 90+ days due date overdue overdue overdue
All suppliers
September $598,492.38 $596,583.18 $0.99 $ - $1,908.21
December $2,544.05 -$674,001.09 $259,441.92 $54,829.50 $362,273.72
March $556,100.01 $555,147.46 $ - $ - $952.55
June $3,346,868.28 $3,346,868.28 $ - $ - $ -
Small business suppliers
September $ - $ - $ - $ - $ -
December $ - $ - $ - $ - $ -
March $ - $ - $ - $ - $ -
June $ - $ - $ - $ - $ -
Notes: Negative values relate to uncleared credit notes including credit transactions Statutory Reporting 081
Accounts due or paid within each quarter
Measure September December March June
All suppliers
Number of accounts due 742 849 904 934 for payment Number of accounts paid 161 324 266 393 on time Actual percentage of accounts paid 22% 38% 29% 42% on time (based on number of accounts) Dollar amount of accounts due $25,899,049.12 $38,582,982.66 $50,114,286.56 $45,512,785.94 for payment Dollar amount of accounts $4,422,711.49 $10,870,595.85 $11,988,009.07 $22,967,822.21 paid on time Actual percentage of accounts paid 17% 28% 24% 50% on time (based on $) Number of payments for interest on - - - - overdue accounts Interest paid on overdue $ - $ - $ - $ - accounts
Small business suppliers
Number of accounts due 7 8 6 9 for payment Number of accounts paid 1 - - - on time 082 NSW Telco Authority Annual Report 2019/2020
Measure September December March June
Actual percentage of accounts paid 14% 0% 0% 0% on time (based on number of accounts) Dollar amount of accounts due $46,619.88 $95,320.80 $32,343.28 $14,773.85 for payment Dollar amount of accounts $434.42 $ - $ - $ - paid on time Actual percent- age of accounts 1% 0% 0% 0% paid on time (based on $) Number of pay- ments for inter- - - - - est on overdue accounts Interest paid on overdue ac- $ - $ - $ - $ - counts
Notes: Payment performance impacted due to settlement negotiations, incorrectly rendered invoices, and invoices submitted prior to completion of work.
The Authority continues to work with suppliers and staff to reduce impacts and improve performance where possible.
There were new registered small business supplier accounts during the year.
Consultants
Engagements above $50,000
Consultant Category Description Amount (ex GST)
To review NSW Operational Development Communications Deloitte Touche of management Strategy (OCS) and $297,214.00 Tohmatsu process develop an implementation plan for 2020-2024.
Total $297,214.00 Statutory Reporting 083
Engagements below $50,000
Category Engagements Amount (ex GST)
Finance and 1 $49,875.00 accounting
Total $49,875.00
Two consultants were engaged and disclosed appropriately.
Investment performance
The Authority’s investment performance for the reporting period is below. The Westpac investment, as part of the Treasury Banking System was the primary source of interest revenue for the reporting period.
Weighted Category portfolio Revenue Annual rate of composition return
Bank interest 100% $ 415,044.29 0.71%
Budget Outline for 2020/21
Budget FY2021 $’000
Expenses excluding losses
Personnel services/employee related 16,636
Other operating expenses 45,410
Depreciation and amortisation 44,790
Finance cost -
Total expenses excluding losses 106,836
Revenue
Sale of goods and services 62,616
Grants (TSY) 86,310
Other revenue 823
Total revenue 149,749
Total comprehensive income for the year 42,913 084 NSW Telco Authority Annual Report 2019/2020
Operating Budget
The following is a summary of the Authority’s budgeted revenue and expenditure for FY2020-2021
FY 19-20 Forecast FY 20-21 Budget $’000 $’000
Revenue
Network Services Revenue 60,066 62,616
Grants (Cluster) 110,382 78,164
Grants 4,972 8,146 (Government Agencies)
Investment revenue 811 823
Other Income - -
Total Revenue 176,231 149,749
Revenue
Network operation expenses 32,930 32,930
Personnel services expenses 16,808 16,636
Other 15,965 4,334
CCEP Operating Expenses 7,300 8,146
Total expenses (excl depn) 73,003 62,046
Surplus/(deficit)(excl depn) 103,228 87,703
Depreciation 13,973 44,790
Total expenses (incl depn) 86,976 106,836
Surplus/(deficit)(excl depn) 89,255 42,913
Promotion and overseas travel No overseas travel was undertaken by any Authority staff member during the reporting period.
Credit card certification In line with the Treasurer’s Directions 205.01- 205.08, the Authority certifies that corporate credit card use by its officers are done so within the established government requirements, Premier’s Memorandum and NSW Treasury Directions.
Credit cards on issue and combined limit of credit cards issued Credit card use by officers is compliant. Reviewed expenses each month are included in the Department of Customer Service Annual Report Attestation. Statutory Reporting 085
Internal Audit and Risk Management Attestation Statement for the 2019-2020 Financial Year for New South Wales Government Telecommunications Authority
I, Kylie DeCourteney, Managing Director, am of the opinion that the New South Wales Government Telecommunications Authority had internal audit and risk management processes in operation that were compliant with the eight (8) core requirements set out in the Internal Audit and Risk Management Policy for the NSW Public Sector, specifically:
For each requirement, Core Requirements please specify whether compliant, non-compliant, or in transition Risk Management Framework
1.1 The agency head is ultimately responsible and accountable for Compliant risk management in the agency 1.2 A risk management framework that is appropriate to the agency Compliant has been established and maintained and the framework is consistent with AS/NZS ISO 31000:2009
Internal Audit Function
2.1 An internal audit function has been established and maintained Compliant 2.2 The operation of the internal audit function is consistent with the Compliant International Standards for the Professional Practice of Internal Auditing 2.3 The agency has an Internal Audit Charter that is consistent with Compliant the content of the ‘model charter’
Audit and Risk Committee
3.1 An independent Audit and Risk Committee with appropriate Compliant expertise has been established 3.2 The Audit and Risk Committee is an advisory committee providing Compliant assistance to the agency head on the agency’s governance processes, risk management and control frameworks, and its external accountability obligations 3.3 The Audit and Risk Committee has a Charter that is consistent Compliant with the content of the ‘model charter’ 086 NSW Telco Authority Annual Report 2019/2020
Membership
The chair and members of the Audit and Risk Committee were:
• Carol Holley, Independent Chair, from 1 November 2019 to 31 October 2022; • Bruce Turner AM, Independent Member, from 1 November 2019 to 31 October 2022; • Nancy Milne OAM, Independent Member, from 1 November 2019 to 31 October 2022.
The Committee only came into existence from 1 November 2019, after the DFSI Shared Arrangement ARC was dissolved on 31 October 2019, as a result of machinery of Government changes.
This Audit and Risk Committee was established under a Treasury approved shared arrangement with the following participating entities:
• Department of Customer Service • Rental Bond Board • Building Professionals Board (now dissolved) • NSW Government Telecommunications Authority • Greyhound Welfare and Integrity Commission • Independent Liquor and Gaming Authority
______Kylie De Courteney Managing Director New South Wales Government Telecommunications Authority
Date: ______22 October 2020
Agency Contact Officer Anthony Lane A/Chief Audit Executive [email protected] Statutory Reporting 087
Risk Management and Insurance
The Authority aligns with the DCS Enterprise Risk and Resilience Framework in accordance with NSW Treasury requirements, as set out in Treasury Policy and Guidelines Paper TPP 15-03: Internal Audit and Risk Management Policy for the NSW Public Sector.
The Authority complies with all relevant insurance requirements including workers’ compensation, motor vehicles, public liability, property and miscellaneous items. During the 2019-20 financial year, the Authority paid $252,720.05 (excluding GST) in insurance premiums.
General ledger YTD amount account Description 2019-20
4102061 Insurance – Managed (NSW Telco Authority) $132,192.05
4102062 Insurance -Not Managed (CCEP) $145,800.00
Total $ 277,992.05
Excluding GST $252,720.05 088 NSW Telco Authority Annual Report 2019/2020
Human Resources Workplace profile
The Authority does not directly employ staff. All staff are employed by DCS, with the Department charging the Authority for personnel services. The Authority actively seeks secondments from business partners to increase sector wide experience and encourage innovation.
Less than 200 full-time equivalent staff were employed at the Authority as at 30 June 2020.
There have been no exceptional movements in wages, salaries or allowances for Authority staff during the reporting period.
Total Staff(Full Time Equivalent)
Division 2018 1,2,3 2019 1,2,3 2020 1,2
Senior Executive 6.0 7.0 9.8
Ongoing 28.4 33 81.5
Temporary 2.0 6.0 12.6
Graduate - 5.0 1.0
Total 36.4 51.0 104.9
Note 1 Full time equivalent staff (excludes chairpersons, casuals, contractor/agency staff, statutory appointments, trustees, council committee members, staff on secondment to other agencies and staff on long term leave without pay).
Note 2 Statistics are based on Workforce Profile census data as at, 28 June 2018, 27 June 2019 and 25 June 2020
Note 3 Between 2018 and 2019 staff were employed by the Department of Finance Services and Innovation prior to the establishment of the Department of Customer Service on 1 July 2020.
Personnel policies are based on those used by DCS. Details of the Authority’s human resources policies and practice or the 2019-20 financial year are included in the2019/20 Department of Customer Service Annual Report. Statutory Reporting 089
Senior Executives
2019 1,2,3 2020 1,2,3
Senior % % Executive Female Male Total Represented Female Male Total Represented Band by Women by Women Band 4 0 0 0 0% 0 0 0 0% (Secretary) Band 3 (Deputy 0 0 0 0% 0 0 0 0% Secretary) Band 2 (Executive 1 0 1 100% 1 0 1 100% Director) Band 1 2 4 6 33.3% 4 5 9 44.4% (Director)
Total 3 4 7 42.9% 3 4 7 50.0%
2019 4 2020 4
Senior Average Average Executive Range $ Range $ Remuneration $ Remuneration $ Band
Band 4 475,151 – 548,950 0 487,051 – 562,650 0 (Secretary)
Band 3 (Deputy 337,101 – 475,150 0 345,551 – 487,050 0 Secretary) Band 2 (Executive 268,001 – 337,100 318,353 274,701 – 345,550 345,550 Director)
Band 1 187,900 – 268,000 215,470 192,600 – 274,700 231,009 (Director)
Note 1 Senior Executive statistics exclude casuals, contractor/agency staff, statutory appointments, staff on secondment to other agencies and staff on long term leave without pay.
Note 2 Statistics are based on Workforce Profile census data as at 27 June 2019 and 25 June 2020.
Note 3 All employees reported in 2019 and 2020 are appointed under the Government Sector Employment Act. Salary band based on current assignment including those on a temporary above level assignment for more than two months.
Note 4 Salary ranges effective at the Workforce Profile census dates of 27 June 2019 and 25 June 2020 090 NSW Telco Authority Annual Report 2019/2020
Employee related costs
Employee related costs 2019-20 Amount
Executive 2,158,810
Non-Executive 9,159,190
Total 11,318,000
Ratio Senior Executive 19%
Disability Inclusion Action Plan (DIAP)
DCS is expecting to publish a 2020-2025 DIAP in the last quarter of 2020. The DIAP will outline the Department’s commitment to improving accessibility and inclusion for our customers, people and suppliers with disability. The Authority will adopt the DIAP.
As at 30 June, 2020 the Authority employed 6.0% people with a disability.
The Authority’s achievements for disability inclusion in 2019-20 included:
• Completing the Australian Network on Disability’s Access and Inclusion Index audit (DCS-led)
• Participating in the DCS Workplace Adjustment Statement and Passport
• Participating in the ‘Stepping Into’ program, a paid internship scheme that matches talented university students with disabilities with roles in leading Australian businesses (DCS-led)
• Providing staff with online training modules on disability awareness and confidence available for both managers and staff, which were developed by both the Public Service Commission and the Australian Network on Disability
• Continuing participation in the NSW Public Sector Jobs for People with Disability Implementation Committee, led by the Public Service Commission.(DCS-led)
Multicultural Policies and Service Program
The Authority supports and participates in DCS initiatives, policies and programs that are committed to multiculturalism.
As at 30 June 2020, 42.1% of Authority staff identified as culturally and linguistically diverse, almost doubling the Public Service Commission target of 23.2%.
DCS uses external interpreting and translation services, including the Service NSW online.
Auslan-English interpreting service, to provide access to services, programs, and opportunities across the state. The DCS Diversity and Inclusion team works with the Authority and agencies across the cluster to enhance awareness and use of these services.
The Authority did not enter into any agreements with Multicultural NSW under the Multicultural NSW Act 2000 during the reporting period.
As the Authority employed less than 200 full-time equivalent staff as at 30 June 2020 it only needs to report on its multicultural services and programs once every three years including data for that three-year period. Information on DCS multicultural policies and service programs is in the 2019/20 Department of Customer Service Annual Report. Statutory Reporting 091
Workforce Diversity
Information on workforce diversity achievements and key workforce diversity strategies for next year are reported in the 2019/20 Department of Customer Service Annual Report.
Trends in the Representation of Workforce Diversity Groups
Workforce Diversity Group Benchmark 20181 20191 20201
Women2 50% 43.2% 48.9% 45.0%
Aboriginal People and/or Torres Strait 3.3% 0.0% 0.0% 4.7% Islander People3
People whose First Language Spoken as 23.2% 8.1% 9.3% 42.1% a Child was not English4
People with a Disability5 5.6% 0.0% 0.0% 6.0%
People with a Disability Requiring N/A 0.0% 0.0% 1.2% Work-Related Adjustment5
Note 1 Statistics are based on Workforce Profile census data as at, 28 June 2018, 27 June 2019 and 25 June 2020
Note 2 The benchmark of 50% for representation of women across the sector is intended to reflect the gender composition of the NSW community.
Note 3 The NSW Public Sector Aboriginal Employment Strategy 2014 – 17 introduced an aspirational target of 1.8% by 2021 for each of the sector’s salary bands. If the aspirational target of 1.8% is achieved in salary bands not currently at or above 1.8%, the cumulative representation of Aboriginal employees in the sector is expected to reach 3.3%.
Note 4 A benchmark from the Australian Bureau of Statistics (ABS) Census of Population and Housing has been included for People whose First Language Spoken as a Child was not English. The ABS Census does not provide information about first language, but does provide information about country of birth. The benchmark of 23.2% is the percentage of the NSW general population born in a country where English is not the predominant language.
Note 5 In December 2017, the NSW Government announced the target of doubling the representation of people with disability in the NSW public sector from an estimated 2.7% to 5.6% by 2027. More information can be found at: Jobs for People with Disability: A plan for the NSW public sector. The benchmark for ‘People with Disability Requiring Work-Related Adjustment’ was not updated. 092 NSW Telco Authority Annual Report 2019/2020
Procurement
The Authority follows the NSW Procurement Policy Framework which ensures that government procurement activities achieve best value for money for the delivery of government services. This is realised through fair, transparent and streamlined processes that encourage competition.
Most of the Authority’s procurement is managed using ITS 2573 Operational Telecommunications Equipment, Infrastructure and Services and ICT Services SCM0020 Prequalification Schemes.
These schemes support procurement from large, medium and small enterprises under a consistent contractual framework. On the ITS 2573 scheme, 64% of vendors are small-to- medium businesses with 200 employees or less.
Work Health and Safety
The Authority has introduced a broad range of practical processes and tools to support the business in its journey towards greater Work Health and Safety (WHS) maturity. The Authority continues to focus on high risk construction work and leadership engagement. The cloud-based assurance tool iAuditor introduced to enable staff to manage workplace hazards and incidents in real time, ensuring appropriate actions are assigned and closed efficiently.
The Authority established a health and safety committee, created an online WHS induction package, implemented a WHS leadership workshop and commenced virtual leadership walks. The Authority will continue to improve its WHS management system, which will align with the DCS management system and wellbeing initiatives.
As the Authority employed less than 200 full-time equivalent staff as at 30 June 2020, it only needs to report on WHS once every three years. One workplace injury was reported during the year and there were no WHS prosecutions.
Full time equivalent staff are employed by DCS and WHS data is available in the2019/20 Department of Customer Service Annual Report.
Research and development
No formal research was commissioned or completed by the Authority during the reporting period.
Consumer response
No complaints were received by the Authority during the reporting period. The Authority manages all complaints in line with the DCS Complaints Handling Policy.
Public Interest Disclosures
No Authority officials made public interest disclosures during the reporting period.
As staff are employees of DCS, the Authority has adopted, and adheres to the Department’s Fraud and Corruption Internal Reporting Policy. All staff are advised of this policy through the Code of Conduct and information in the Department’s Intranet. Statutory Reporting 093
Funds granted to non-government organisations
No funds were granted to non-government community organisations during the year.
Land Disposal
No properties were disposed of during the year.
Disclosure of controlled entities and subsidiaries
The Authority receives personnel services from DCS. The Department is not a Special Purpose Service Entity and does not control the Authority under this arrangement. The Authority does not hold shares in any public-sector subsidiary.
Privacy and Personal Information Protection (PPIP) Act 1998
The Authority follows the DCS Privacy Management Plan, which complies with the Privacy and Personal Information Protection (PPIP) Act 1998.
The Authority received no formal access applications or informal enquiries by individuals requesting their personal information under the PPIP Act. No reviews were conducted under part 5 of the Act.
Government Information (Public Access) Act 2009
The Government Information (Public Access) Act 2009 makes government information more open and available to the general public. As part of DCS, the Authority complies with this Act by proactively releasing information on its website and responding to formal applications made to the Department.
The Authority is regarded as part of DCS for the purposes of the Government Information (Public Access) Act 2009. Applications made under this Act involving the Authority are centrally coordinated within DCS. 2019/20 Department of Customer Service Annual Report contains information about access applications received in relation to the Authority.
Exemptions
There were no exemptions pursuant to clause 17 of the Annual Reports (Statutory Bodies) Regulation 2015 applicable to the Authority during the reporting period.
As the Authority is a small statutory body pursuant to clause 18 of the Annual Reports (Statutory Bodies) Regulation 2015, it is only required to report on the following matters once every three years:
• Multicultural policies and services program • Work health and safety • Workforce diversity
Information on DCS Multicultural policies and services programs and Work Health and Safety is in the 2019/20 Department of Customer Service Annual Report is available from www.customerservice.nsw.gov.au 094 NSW Telco Authority Annual Report 2019/2020
Annual Report Production
The 2019-2020 NSW Telco Authority Annual Report was produced within the Department and no external costs were incurred. A PDF version of the report is available at www.telco.nsw.gov.au and www.customerservice.nsw.gov.au
Access to the NSW Telco Authority
McKell Building 2-24 Rawson Place Sydney NSW 2000 1800 794 862 9am-5pm, Monday to Friday
www.customerservice.nsw.gov.au Statutory Reporting 095
Annual Report Compliance Checklist
Requirement Statutory Bodies Page number
• Stating report submitted to Minister for presentation to Parliament • Provisions under which report prepared • If applicable, length of lateness in Letter of ARSBA submitting report and reasons 5 Submission s9A • If no application for extension, reasons for lateness and lack of application • To be signed by 2 members of statutory body or, if without members, by the CEO Application ARSBA • Where an extension of time has been for extension NA s13(5) granted, particulars of that extension of time • Manner in which and purpose for which ARSBR agency was established Charter 11, 12 Sch.1 • Principal legislation under which statutory body operates • What statutory body sets out to do Aims and ARSBR • Range of services provided 12,13 objectives Sch.1 • Clientele/community served • Address of principal office/s ARSBR Access • Telephone number of principal office/s 94 Sch.1 • Business & service hours • Names of members and their qualifications • Method and term of appointment of board members Management ARSBR • Frequency of meetings and members’ 14,15 and 37 and structure Sch.1 attendance at meetings • Names, offices and qualifications of senior officers • Organisation chart indicating functional responsibilities • Narrative summary of significant Summary ARSBR operations review of 22-35 Sch.1 • Financial and other quantitative operations information for programs or operations
Funds granted ARSBR • Name of recipient organisation 93 to non- Sch.1 • Amount of grant government • Program area as per Budget paper community • Program as per Budget paper organisations 096 NSW Telco Authority Annual Report 2019/2020
Requirement Statutory Bodies Page number
ARSBR • Changes in Acts and subordinate Sch.1; legislaion Legal Change NA ARSBA • Significant judicial decisions affecting s9(1)(f) agency or users of its services ARSBR Economic or Affecting achievement of operational 25 other factors objectives Sch.1 • Describe nature and range of activities • If practicable, qualitative and quantitative performance measures showing efficiency and effectiveness • Nature and extent of internal and external performance reviews conducted and resulting improvements in ARSBR Management achievements 26, 21-35 and activities • Benefits from mgt. and strategy reviews Sch.1 • Management improvement plans and achievements reaching previous targets • Major problems and issues which arose • Major works in progress, cost to date, dates of completion, significant cost overruns or delays / amendments / defer- ments / cancellations • Completed and continuing research and Research and ARSBR developmental activities including re- 92 development Sch.1 sources allocated • Unless will adversely affect business • Number of officers and employees by category & compared to prior three years Human ARSBR • Exceptional movements in wages, salaries 88 resources Sch.1 or allowances • Personnel policies & practices • Industrial relations policies & practices • For each engagement costing equal to or greater than $50,000: - Name of consultant - Title of project (shown in a way that ARSBR identifies the nature of the work) Consultants - Actual costs 82 Sch.1 • For engagements costing less than $50,000: - Total number of engagements - Total cost • Or a statement that no consultants used Statutory Reporting 097
Requirement Statutory Bodies Page number
• Statutory bodies must report statistics for both the representation and distribution of employees in diversity groups, in the same format as the report provided to each agency by the Public Service Commission • Additionally, statutory bodies must PSC report on the workforce diversity Circular achievements during the reporting 2014- year and the key workforce diversity 09 strategies proposed for the following ARSBR year Sch.1 • Universities which are prescribed for the Workforce purposes of workforce diversity, under 91 Diversity the Government Sector Employment Regulation 2014, are encouraged to continue to include workforce diversity information, in the same terms, in their annual reports ARSBR • Small statutory bodies need only report c18 TC on a triennial basis 15/18 For information on this requirement, please see www.psc.nsw.gov.au/workplace- cul- ture---diversity/equity---diversity/annual- reporting/annual-reporting For queries please contact the Public Service Commission (PSC) on 9272 6000 • If the statutory body is required to have DIA a disability inclusion action plan under s12n and the Disability Inclusion Act 2014, a state- 13, ment setting out the progress during the ARSBR reporting year in implementing that plan Sch.1 • Small departments need only report on a Disability ARDR triennial basis Inclusion c14 90 Action Plans TC15-18 See https://www.facs.nsw.gov.au/data/assets/ file/0004/322366/NSW-DIAP- Guidelines. PDF For queries please contact the Department of Family and Community Services directly (tel: 1800 782 306 or NSW [email protected]. gov.au) • If value greater than $5,000,000 & not sold by public auction or tender - list of properties - for each case, name of person who acquired the property & proceeds • Details of family or business association ARDR between purchaser & person responsible Land Disposal 93 Sch.1 for approving disposal • Reasons for the disposal • Purpose/s for which proceeds were used • Statement that access to documents relating to the disposal can be obtained under the Government Information (Public Access) Act 2009 098 NSW Telco Authority Annual Report 2019/2020
Requirement Statutory Bodies Page number
ARDR Overseas visits by employees and officers Promotion 84 Sch.1 with main purposes highlighted • Extent and main features of complaints Consumer ARDR • Services improved/changed in response 92 Response Sch.1 to complaints/suggestions • Details of performance in paying accounts for each quarter, from due dates: - Current, 0-30, 30-60, 60-90 and 90+ $ amounts - Target %, actual % and $ for on time - Total dollar amount paid in quarter - (Can use proper sampling techniques)
Details of accounts due or paid within each quarter – A schedule of the number and dollar amount of accounts / invoices due or paid within each quarter of the financial year as follows, separately disclosed for all suppliers and small business suppliers: - Number of accounts due for payment TC 11/21 Payment of - Number of accounts paid on time ARDR 80 Accounts - Actual percentage of accounts paid on Sch.1 time (based on number of accounts) - Dollar amount of accounts due for payment - Dollar amount of accounts paid on time - Actual percentage of accounts paid on time (based on dollar amount of accounts) - Number of payments for interest on overdue accounts - Interest paid on late accounts
• Commentary on problems affecting prompt processing of payments during the year and on initiatives implemented to improve payment performance Time for ARDR Where interest was paid due to late Payment of Sch.1; TC payments, list of instances and reasons NA Accounts 11/21 for delay which caused late payment Risk Report on the risk management & insurance management ARDR arrangements and activities affecting the 87 and insurance Sch.1 agency activities Department heads must: • attest to compliance with the TPP’s ‘core requirements’ in an attestation statement Internal audit based on the relevant template at and risk man- TPP 15- Annexure C of the TPP, and 85 agement policy 03 • ensure that this Statement is published in attestation the Department’s Annual Report, adjacent to the requirement to disclose ‘risk management and insurance activities’ Statutory Reporting 099
Requirement Statutory Bodies Page number
For each controlled entity: Disclosure of ARDR - Name, objectives, operations, activities Controlled 93 Sch.1 - Performance targets and actual Entities performance measures For each public sector subsidiary, the parent must: - Identify each subsidiary in which shares are held, and the number and % of shares held; - Include key figures for each subsidiary (turnover, profit, assets) and their proportion to group totals Disclosure of PM 06- - Include detailed statement of objectives, 93 Subsidiaries 02 activities and operations of each subsidiary, performance targets and measures and accounts; and - Include description of nature and extent of involvement in any other companies, joint ventures, partnerships, trusts or other such associations (whether or not incorporated) • Statement setting out the key multicultural strategies proposed for the following year ARDR • Progress in implementing the Multicultural Sch.1 Department’s multicultural policies Policies and and service plan 90 Services ARDR • Information as to the multicultural policies Program c14 and services plans of any bodies reporting TC15-18 to the Department • Small departments need only report on a triennial basis Description of any agreement entered into Agreements with Multicultural NSW under the with ARDR Multicultural NSW Act 2000 and statement NA Multicultural Sch.1 setting out progress in implementing any NSW agreement ARDR • Statement setting out WHS performance Work Health Sch.1 • Details of injuries and prosecutions under and Safety ARDR the Work Health and Safety Act 2011 92 (WHS) c14 • Small departments need only report on a TC15-18 triennial basis • Detailed budget for the year reported ARSBA on, including details of: - If this is the first s7(1)(a) Budgets budget approved - Adjustments to first 83 (iii) ARS- budget approved BR c7(1) • Outline budget for following year • Inclusion of Financial Statements • Controlled Entities’ Financial statements Financial ARDA • Audit Opinion on Financial Statements 46 Statements s9(1)- (2) • Response to significant issues raised by Auditor-General 100 NSW Telco Authority Annual Report 2019/2020
Requirement Statutory Bodies Page number
Identification of audited ARDR At start and finish 46-77 financial c4 statements NA Inclusion of Audited unaudited Unaudited financial information to be distin- financial ARDR c5 financial guished by note or otherwise statements statements enclosed on p46 • Statement of the action taken by the Department in complying with the requirements of the Privacy and Personal Information Protection Act 1998 (PPIPA) and statistical details of any review conducted by or on behalf of the Department under Part 5 of the PPIPA. Additional • After balance date events having a matters for ARDR significant effect in succeeding year on: 93 inclusion in c6 - Financial operations annual reports - Other operations - Clientele/community served • Total external costs (such as fees for consultants and printing costs) incurred in the production of the report. • The website at which the report may be accessed (or the Department’s website) • In the form of a comparison with a choice of Treasury Corporation investment facilities Investment • Choice of comparison based on nature 83 performance and term of underlying liability • Stated in terms of annual compound percentage rate return • Only if debt is greater than $20M • In the form of comparison, details of Liability agency’s liability portfolio performance management NA NA versus benchmark performance • Benchmark is notional portfolio constructed as risk neutral per Treasurer Statutory Reporting 101
Requirement Statutory Bodies Page number
• If applicable, section “Exemptions from the Reporting Provisions” including: - Details of exemptions - Reasons for exemptions • Small departments need report on a triennial basis only in relation to: - workforce diversity ARDR - disability inclusion action plans 13(4) - multicultural policies and services program Exemptions ARDR - work health and safety 93 c14 • Triennial reporting of particulars in the report of the operations of a Department must relate not only to the reporting year for which the report is prepared (and the succeeding reporting year, if required by Schedule 1) but also to those of the 2 preceding reporting years in relation to which those particulars have not yet been reported in an annual report of the Department ARDR • Number of senior executives employed c7 PSC at the end of the reporting year broken down by band and then gender within Circular each band, compared with the numbers 2014-09 at the end of the previous reporting year • Average total remuneration package of senior executives in each band at the end of the reporting year, compared with the average at the end of the previous reporting year • The percentage of total employee-related expenditure in the reporting year that relates to senior executives, compared with the percentage at the end of the previous reporting year
Numbers and (SOORT) For financial years ended between 1 July remuneration of determi- 2018 and 1 July 2019 89 senior nation • The four senior executive bands that executives applied for financial years ended be- tween 01 July 2018 and 30 June 2019 are published in the Statutory and Other Officers Remuneration Tribunal (SOORT) 2018 Annual Determination – SOORT - Public Service Executive dated 07 August 2018. Agencies preparing annual reports for years ended between 01 July 2018 and 30 June 2019 must base their senior executive disclosures on those bands, which are set out in Treasury’s Annual Report Frequently Asked Questions at https://www.treasury.nsw.gov.au/informa- ti on-public-entities/annual- reporting/ annual-reporting-faqs
102 NSW Telco Authority Annual Report 2019/2020
Requirement Statutory Bodies Page number
• For periods ending after 1 July 2019
• The four senior executive bands that applied for financial years ending after 01 July 2019 are published in the Statu- tory and Other Officers Remuneration Tribunal (SOORT) 2019 Annual Determi- Numbers and nation – SOORT - Public Service Exec- (SOORT) remuneration of utive dated 27 August 2019. Agencies determi- 89 senior preparing annual reports for years ended nation executives after 01 July 2019 must base their senior executive disclosures on those bands, which are set out in Treasury’s Annual Report Frequently Asked Questions at https://www.treasury.nsw.gov.au/inform ation-public-entities/annual- reporting/ annual-reporting-faqs
If agency subject to determination or Implementation recommendation of Tribunal then: IPARTA of Price • Statement that it was implemented and NA s18(4) Determination details of implementation; or • Reasons for not being implemented. • Details of the agency’s review under s7(3) of the Act during the year and details of any information made publicly available as a result of the review • Total number of access applications received during the year (including withdrawn applications but not including GIPAA invalid applications) s125(4), • Total number of access applications Government (6) received that agency refused, either Information GIPAAR wholly or in part, because the 93 (Public Access) c8, Sch application was for disclosure of Act 2009 2; c13, information for which there is conclusive Sch 3 presumption of overriding public interest against disclosure • Statistical information as described in Sch 2 • Each agency referred to in Sch 3 of the Regulation (subsidiary agency) is declared to be part of and included in the parent agency specified in Sch 3. Statutory Reporting 103
Requirement Statutory Bodies Page number
https://arp.nsw.gov.au/dfsi-2019-02-nsw- cyber-security-policy Department heads must include an annual report attestation statement addressing the following: • the Agency has assessed its cyber security risks, • cyber security is appropriately addressed at Agency governance forums, • the Agency has a cyber incident response plan, it is integrated with the security components of business continuity arrangements, and has been tested over the previous 12 months (involving senior business executives), and • certification of the Agency’s Information Security Management System (ISMS) is in place or an alternative independent Cyber Security review or audit has been undertaken. DFSI- Policy (CSP) 42 2019-02 See page 11 of the CSP for suggested Attestation wording.
For 2018-19 annual reports: The Digital Information Policy (DISP 2.0) previously required an attestation in annual reports. However, DISP 2.0 was repealed on 1 February 2019 and replaced by the CSP.
Agencies are not required to include a DISP 2.0 attestation statement in their 2018-19 annual reports. Instead, agencies’ CSP attestation statement for 2018-19 will cover that entire year.
For queries please contact Cyber Security NSW at the Department of Customer Service - [email protected]. gov.au or telephone the Department of Customer Service on 13 77 88.
104 NSW Telco Authority Annual Report 2019/2020
Requirement Statutory Bodies Page number
Separately report on: • PIDs made by public officials in performing their day to day functions as public officials • PIDs not covered above that are made under a statutory or other legal obligation • All other PIDs For each PID, a public authority should disclose the following information: • Number of public officials who have made a PID to the public authority • Number of PIDs received by the public authority in total and the number of PIDs Public Interest PIDA s31, received by the public authority relating Disclosures 92 PIDR c4, to each of the following: (PID) - corrupt conduct - maladministration. - serious and substantial waste of public or local government money - government information contraventions - local government pecuniary interest contraventions • Number of PIDs finalised • Whether the public authority has a PID policy in place • Actions taken to ensure staff awareness responsibilities under s6E(1)(b) of the PIDA have been met. Requirements See TC 15/07 Additional requirements, where Department arising from disclosure ARDA provides personnel services to one or more employment of controlled s18(1) statutory bodies – refer section 4 of TC15-07 arrangements entities (95) • Material information reported • Logical sequence • Appropriate layout Form of annual ARDR • Clear readable text reports – Compliant c10 • Appropriate captions for charts, generally diagrams, or photos • Index and table of contents to assist identifying reporting requirements Submission of ARDA annual report s12 Submitted by • Not later than four months after year end to appropriate PM201 November 30 Minister 3-09 Statutory Reporting 105
Requirement Statutory Bodies Page number
• Submit an electronic copy of annual report to the Treasurer (annualreport@ treasurer.nsw.gov.au) at the same time it is submitted to the appropriate Minister ARDA • The appropriate Minister must present a s12 printed copy of a Department’s annual Submission of PM20 report to each House of Parliament. To annual report Compliant 13-09 permit that Minister to meet this to the Treasurer ARDA requirement, each Department must s13 submit two printed copies of its annual report to that Minister. • The appropriate Minister must present that report within one month of receipt • If late, statement by Minister Annual report size ARDR • Size – ISO A4 Compliant presentation to c11(1) Parliament All production costs must be kept to a minimum by: • Limiting content to recording performance and meeting statutory obligations • Printing hard copies in house in black and PC 00- white 68; • Not including unnecessary pictures and Printing and PM 00- illustrations distribution Compliant 15 • Eliminating external production costs requirements PM 2013- 09 Electronic copies of annual reports are to be sent to: • State Records (upload to OpenGov NSW) • National Library of Australia • UWS Library • State Library • Parliamentary Library • A copy of the annual report must be made publicly available on the Department’s website (or other relevant ARDA website) as soon as practicable after s14; the hard copy report is presented to ARDR Parliament Public c12 TC15- availability of 19 Compliant • A copy of the annual report must also be annual reports made available to Parliament in electronic
form as soon as practicable after the hard PM 2013- copy report is presented to Parliament 09 • Available to others if required by the Treasurer Contact Details
McKell Building 2-24 Rawson Place Sydney NSW 2000 1800 794 862 9am-5pm, Monday to Friday www.customerservice.nsw.gov.au