Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

Department of Finance Annual Report 2018 –19

ANNUAL REPORT Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

. , I hereby submit for

For the endedFor June 30 year 2019 MLAHON BEN WYATT FINANCE; FOR MINISTER TREASURER; LANDS AFFAIRS; ABORIGINAL In accordance with section 63 the Financial of Management Act 2006 Parliament, to presentation and information your the Annual Report the Department of Finance of for the financialyear ended 30 June2019. The Annual Report has been prepared in accordance with the provisions the of 2006 Act Management Financial Jodi Cant General Director 23 August 2019 Statement of compliance

s performance. for the Department Disclosure and compliance and Disclosure statement financial our Includes and actual results financial for both and non-financial encourage feedback.We Please email us canso we improve our Annual Report next year. Contact details are listed on the back the report. of [email protected] Department Finance of Annual Report 2018-19 © Department Finance of 2019 (Print) ISN 2203-594X ISN (Online) 2203-5958 legislation Key The Department Finance of legislation relevant all with complies that governs its functions. its governs that The Department also has responsibility administration the for Acts and collected 21 of taxes, duties and fees, and paid subsidies, grants and rebates during 2018-19 legislation. with accordance in About this report this About Annual Report. ourWelcome 2018-19 to The Report outlines business and financial operational, our performance for the financialyear and is structured in the following areas: Overview Director the from comments Includes General, Jodi outlines Cant, the changes the organisationmade to the over year and provides a snapshot our of performance. performance Agency achievements the Showcases ourof people across our main functional areas – Advise, Build, Collect. and Buy issues Significant Outlines the issues faced we the over year and our approach solving to these issues. Cover: Construction of Bob Hawke College (formerly known as the Inner City College), Subiaco City College), Inner the as known (formerly College Hawke Bob of Construction Cover: Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 5 Report 2018-19 18 124

162 Agency Disclosures Performance Financial Financial Statements Indicators Overview Contact Us Key PerformanceKey Contents 06 60 144 Artist impression of the New Museum New the of Artist impression Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Collect Advise, Build, Buy and Performance Management Framework

Director General’s Overview in Review Year Operational Structure and Governance Overview Overview Agency Financial Key Performance Disclosures Performance Statements Indicators There were plenty challenges of I am facedwe the past over year. particularly focused on getting the right people in the right jobs while gender our and improving also diversity balance. can How deliver we services the public to if do not we public? the reflect accurately remainWe committed responding to our challengesto delivering and to practical, cost-effective and quality outcomes across government to Australians.Western benefit Department of Finance Annual | 7 Report 2018-19

. about inspiring and influential and inspiring We are passionate We modernising in which the way the the servicepublic through operates Work Based Activity to transition – an agile, collaborative and environment. work sustainable We are in our implementation of the the of implementation our in Policy. Aboriginal Procurement recogniseWe the benefitsthat government contracts can on have new Aboriginal the and communities they opportunitiesemployment that Aboriginal people for can create across the State. are respectful and honest We Finance staff are located across the regional including offices,State, in 12 and value we honest and respectful other each with communication Finance invests customers. and our in its people, through training and opportunities and mentoring events, graduate recognised nationally our program. Jodi Cant – Director General I joined as Director General in August 2018 2018 August General in Director as I joined about enhancing enthusiastic sector public the within role Finance’s in leaders functional becoming and targets whole-of-government the delivering

to realising to our values in mind. in values our are boldWe and innovative as evident in our approach to solutions. digital are committed We savings for government and the by as demonstrated taxpayer, million in savings for the the $113 Office Government Accommodation Reform Program. We collectedWe around billion $7 of revenue on behalf government of for civic and use, did so with the Our focus ongoing mind. in customer on the transition digital to services provides flexibility andreduces the administrative burden on the taxpayer. This year marked the start an of have We review. organisational listened our customers to and staff and are reorganising our structure to services improve our wide to range stakeholdersof and better utilise the business. the within have we talent with business conducting are We

government and reduce the public experiencedby confusion goods procuring in employees sector services works. and role significant a played again We public major of construction the in New the including infrastructure, Museum project, while also delivering new developments and upgrades to prisons. and facilities health schools, This year delivered we more than 75 projects with a combined budget approximatelyof $480 million on behalf other departments of including Health. and Justice Education, significant realise to Finance continues procurement government in savings buying power government’s using by on behalf get value-for-money to I am particularly the taxpayer. of impressed with the savings have we electricity the through generated Common Use Arrangement (CUA).

strategy. strategy.

The Department Finance of continues be a central to government advice, strategic providing agency leadership and cost-effective services our customers. to I joined as Director General in August enthusiastic about enhancing2018 role within the publicFinance’s becoming and functional sector leaders in delivering the whole-of- government targets outlined in the Our Priorities: Government’s WA Prosperity Sharing We are an agencyWe that delivers a wide variety services of our to advise, we customers. Put simply, buy and collect. build, This advised year have we agency our and Government whole-of-government on counterparts the leading including initiatives, reform Procurement Sector Public Enhance reform initiative. A framework has been developed with an to intent and suppliers easier for it make with business do to contractors Overview Director General’s Department of Finance Annual | 6 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Manage 33 contracts CUA which through goods of billion $1 and services is purchased annually. initiative.

Department of Finance Annual | 9 Report 2018-19 33 Contributed to 7 of the 20 whole-of-governmentContributed the 20 7 of to reform projects, including leading Public the Enhance Procurement Sector 7 OF 20 2 COLLECTED AROUND AROUND COLLECTED $7 BILLION TAXATION REVENUE ON BEHALF GOVERNMENT. OF 560,000m $7b Manage 560,000 over square metres of office accommodation in leased ownedand State. the across buildings Transitioned approximately 850 850 approximately Transitioned on premise servers 330 virtual to technology. servers cloud using

75 Delivered more than 75 a with projects infrastructure combined budget in excess $480 million. of Actioned more than than more Actioned 160,000 maintenance government from requests agencies across the year. financial AUSTRALIA’S AUSTRALIA’S NUMBER 1 GRADUATE EMPLOYER BY VOTED GRADUATES. MAINTENANCE REQUESTS

Achieved saving more a total of million as part the of than $113 Office Government Accommodation Program. Reform A 97 per centA 97 satisfaction Finance procurement in rate professionalism.

$113m 97% review

Year in

exceedance the first of year target. Policy, representinga 400 Policy, per cent of the Aboriginal Procurement Aboriginal Procurement the of businesses in the first six months contracts Aboriginal were awarded to Four per cent government of

Department of Finance Annual | 8 Report 2018-19

160,000 4% Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

Taxation Administration Taxation Provisions) (Consequential 2002 Act Administration Taxation Act 2003 Commission Supply State Act 1991 Public Works Act 1902 Stamp Amendment 2002 Act (Budget) Finance and Procurement Finance and Procurement Committee; Communications and People and Committee; Services Digital Information Committee.

Committees As part the transformation of to the new structural model have we streamlined our processes be to more efficient and customerfocused. As a result, the following committees were disbanded this year: • • • responsibilities and The functions theseof committees transferred have the Corporateto Executive. The Audit and Risk Management supports also Committee Finance’s Executive. Corporate . Department of Finance Annual | 11 Report 2018-19

1992

Pay-roll Tax Pay-roll Rebate Tax Act 2012 Rates and Charges (Rebates Act Deferments) and Pay-roll Rebate Tax Act 2010 Stamp Act 1921 Stamp Amendment 2005 Act (Assessment) Pay-roll Act 2002 Tax Assessment Tax Pay-roll 2002 Act Wages) (Indigenous Rebate Act 2012

The transition to the new structure is is structure new the to The transition expected be challenging to butthe Corporate Executive strongly believe it will position the agency achieve to its new objectivesand become a government. for asset stronger legislationEnabling The Department Finance of was established as a department on under section the 35 of 1 July 2011, Public Sector Management 1994 Act Minister Responsible The Department Finance of reports the Ministerto for Finance, held by the Hon Ben Wyatt MLA.

Commonwealth Places Administration) Taxes (Mirror 1999 Act First Home Owner Grant 2000 Act First Home Owner Grant 2003Amendment Act Duties Act 2008 Land Act 2002 Tax Assessment Tax Land 2002 Act bold and innovative influential and inspiring committed and passionate respectful and honest Betting Act 2018 Tax Assessment Tax Betting Act 2018

Examples our of values in action this year are showcased as case studies Annual Report.the throughout Consultation with staff will continue the next into financial year with a confirmed operating structure expected be mobilised to in early 2020. Legislation administeredLegislation The Department Finance of assists the Minister for Finance, the Hon Ben Wyatt MLA, in the administration the following of Acts: Values There is an increased focus on our values; deliveringservices that are reflectiveof being: placing customers at the the at customers placing centre all do; of we focused being outcomes – collaborative, innovative and values-led; and becoming the best place work in governmentto with engaged, inspired and staff. proud

As a result,the Department of proposed new a has Finance structure, which has been showcased staff to for consultation. The structure is based on our core business – Advise, Build, Buy and Collect – andwhere add we value across the sector. Mission the remains mission Our same – driving practical, cost-effective and quality outcomes across government benefitWesternto Australians – and are delivering we this via three specific objectives: ongoing 1. 2. 3.

One Finance One This year Finance commenced its project transformation organisational – One considered Finance. have We and thoroughly structure existing our engaged with our customers and staff, which has resulted in us structure and vision our refining betterto deliver advice and services customers. our to startedWe reflecting by on ourrole whole-of-government the within reform agenda. leveraged We reviews, insights from sector-wide including Government’s the State Service Priority Review and the Special Inquiry Government into Programs and determine Projects, to where can we add value to undertookgovernment. We a period self-reflectionof to determine we how can go from a solid central agency a high performingto central agency. Executive Corporate Several workshops were held develop to and debate the new organisational plans. operational and structure Finance staff were engaged to streamline opportunities to uncover processes, encourage innovation within duplication reduce and the Department. Governance Operational Structure and Department of Finance Annual | 10 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

Advise Deliver Collect Service WA Build & Buy Service & Invest Department of Finance Annual | 13 Report 2018-19

Internal Audit Internal Director General Director

Minister for Finance for Minister – Proposed Functional structureFunctional

Building Management Building Strategicand Works, Projects HelbergPhilip Acting Deputy Director General Executive Director Executive Director Revenue State Nicki Godecke Commissioner and Strategy Coordination Whitmarsh Shaun Executive Director ServicesCorporate Andy Wood Government Government Procurement Black Stephanie

Jodi Cant Jodi Internal Audit Internal Director General Director

Minister for Finance for Minister Organisational structure – Current Department of Finance Annual | 12 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Leads the planning and delivery buildings. government major of Leads the planning, delivery, management and maintenance projects buildings, government of officeand accommodation. Corporate servicesCorporate agencies. client to Development and management and Development Commonof Use Contract Arrangements, Fleet State and leasing and disposal, service facilitation providing contracts. specific agency for Revenue assessment and collection, and grants and administration. subsidies

5. 4. 3. 2. Services 1. Department of Finance Annual | 15 Report 2018-19 . . Shared responsibilities responsibilities Shared agencies other with the successIntegral to the both of Government the and Department is the ability partner to with others. theAs Department a central agency, works closely across the sector to of efficientoperation the facilitate decision-making informed government, outcomesand for value-for-money Australians. Western This is achieved through providing leadership and strategic advice to government on initiatives improve to the operations and management of services sector. public the across Value for moneyValue from the Government’s the of management and buildings non-residential works. public Efficient and effective corporate agencies. services client to Value for moneyValue from public procurement. sector Desired outcomes Due and payable revenue is collected and eligible grants, paid. subsidies and rebates Government goals Government Sustainable Finances financial Responsible management and better service delivery. Details performance key of indicators are on page 124-143 Summary performance key of indicators is on page 50-51 Relationship to to Relationship goals government Broad government goals are supported agency at level by Agencies deliver outcomes. specific services achieve these to outcomes. The following table illustrates the relationship between the agency’s services and desired outcomes, and the government goal it contributes to. The effectiveness key indicators measure the extent impact of of the delivery services of on the achievement desired of outcomes. The efficiency key indicators monitor the relationship between the services delivered and the resourcesused to service. the produce

Framework works Finance to facilitate the efficient operation of government. Performance Management Department of Finance Annual | 14 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

Department of Finance Annual | 17 Report 2018-19

Finance collects around billion $7 revenueof annually on behalf of the administers and government payment grants of and subsidies community. the to Finance oversees the development and maintenance majorof and other non-residential building assets including the New Museum project plus several school, health and prison also projects. We drive to officeaccommodation government manage efficienciesWA taxpayer. and theto savings

Buy

Advise to the WA taxpayer. taxpayer. the WA to

We are leadersWe in government

procurement. leverage We our buying services apply and government across

our expertise deliver to value for money

power to secure lower-cost products securepower and to lower-cost

Collect

Finance is a strategic adviser the to government and Government, WA departments and agencies. are We central in providing advice on government management, project projects, reform policy. and procurement Build Department of Finance Annual | 16 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Summary Non-Financial of Performance for 2018-19 Summary of Financial Performance for 2018-19 Cost of Services for 2018-19 Significant Issues Our People Advise Build Buy Collect Performance Agency Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Throughout the 2018-19 financial 2018-19 Throughout the Finance deliveredyear, stage one the projectof – the development a contemporaryof procurement framework. More than 500 people businesses, regional industry, from government agencies and public consulted were authorities throughout the year with feedback surveys, targeted through sought and consultation, face-to-face forums. procurement cross-sector procurement the Changes to framework will be supported by which shop,’ ‘one-stop online an will assist industry and agency of aspects all navigate to practitioners government buying Developed in WA. it is expected the new in June 2019, content will launch on the State in platform WA.gov.au Government’s the second half 2019. of Department of Finance Annual | 19 Report 2018-19 reduce complexity and and complexity reduce encourage to inconsistencies industry participation; confidence public increase in integrity; procurement procurement sector-wide build capability; and collaboration encourage knowledge sharing across the and sector; public innovation opportunitiesunlock for decision strategic more and collection better through making and analysis procurement of data. By incorporating recommendations recommendations incorporating By from these reviews and subsequent Finance’s consultation, stakeholder reform efforts will: • • • • • initiative – one of of one – initiative Simplifying buying goods, services and throughworks procurementreform. Finance leads Public the Enhance Procurement Sector Government State 20 priority reform projects underway deliver to better community. WA the for outcomes The objective key the project of introduceis to a consolidated procurement whole-of-government framework bring to together the goods, to approaches disparate services, community services and procurement. works The Service Priority Review, Government Special Inquiry into Programs and Projects, and recent behaviour unethical into investigations in procurement drivers are key for this reform project. They identifiedthatthe fragmentation and inconsistency in framework procurement current the industry and for confusion to leads agencies, increases the risk poor of government’s limits and process ability readily to deliver social and across outcomes economic policy expenditure. government

Several projects across the the across projects Several been integral yearhave financial influenced and government to Finance. by Finance is sought out by sought is out by Finance the sector public its for leadership, knowledgeand innovative thinking. Agency Performance Advise Department of Finance Annual | 18 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Several proposals already have been received from industry with feedback highlighting the policy is very much supported. and welcomed MLPs the of The introduction policy offers another avenue for job creation for Western Australians, harnesses ideas innovative from the private sector and delivers on the commitments election Government’s outlined in the Plan for Jobs policy. Department of Finance Annual | 21 Report 2018-19 the Department the Premier of and Cabinet advise to on policy and improvements. governance which providesThe a Policy, to approach whole-of-government proposals, unsolicited managing April. Financewas enacted on 12 was integral in the preparatory works including implementation, to prior government both with consultation MLP the industry on and agencies and the developmenttemplate, of an online portal with all the relevant information and for industry tools to proposals. submit establishing in integral Finance was a steering committee with an which chairperson, independent will proposals, evaluate ensure and government across collaboration to directly recommendations provide Government. the Finance presenting on the new contemporary procurement framework at the Leadership in Procurement Forum. The implementation of the the of The implementation ProposalsMarket-led Policy in April is another example Finance of 2019 providing advice and expertise across government industry. and to ProposalsMarket-led (MLPs) are proposals from the private to build sector or or not-for-profit finance infrastructure, or provide goods or services where the State Government has requested not These proposals proposal. the are generally outside the normal competitive procurement processes governmentof but still deliver value community. the to The Department the Premier of and Cabinet developed the responsible Finance with policy and implementation its for ongoing management. As part of Finance policy, the implementing with collaboration close in worked Driving Driving innovation from the private sector through Market-led Proposals. Finance is well placedshare to learningswith regard PBA to implementation as it is the only WA have to department government applied these the majority to works of 2016. September since contracts Responsible Supplier Pact draftA Pact Responsible Supplier was developed this year and will ultimately ensure government does act who suppliers with business The draftethically. which Pact, procurement comprises ethical principles and a supplier code of conduct, has been released for public comment with (phase 1) mechanisms being enforcement considered as part phase of 2. readiness for implementation of of implementation for readiness project bankaccounts and (PBAs) procurement reform; challenges opportunities and the in responding the Government’s to and objectives; policy providing advice the Department to Mines,of Industry Regulation and Safety on a security payment of Fiocco the in recommendation Report and the use standard of forms. contract

This year, the Council hasThis capitalised year, on areas common of experience to on: focus • • •

Department of Finance Annual | 20 Report 2018-19 and asset management matters. procurement, project management management project procurement, coordination and information-sharing information-sharing and coordination implementation, policy on cross-agency collaboration, collaboration, cross-agency infrastructure, the Council facilitates facilitates Council the infrastructure, expertise in delivering major Chaired Finance by its due to procurement reform outcomes. support the achievement the of delivery public of works and to between agencies involved inthe to promote greater cooperation cooperation greater promote to initiated Agency the Works Council Department Premier of and Cabinet, Finance, in conjunction with the the with conjunction in Finance, Works Agency Council Agency Works Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Homepage of WA.gov.au Finance is scheduled transition to to the at start the 2019-20 of WA.gov.au year. financial report annual template New innovatively thinking Finance is annual report. this developing in purposely have We utilised the style guide create to WA.gov.au version digital) HTML (online an and accompanying our of PDF annual report, which can be repurposed in future years. The cantemplate also be circulated across the public sector for use agencies. government other by leadership Finance’s This highlights ways innovative find tryingin to government improve to efficiency and generate further savings the to taxpayer. WA Department of Finance Annual | 23 Report 2018-19 opportunities across all goods and and goods all opportunities across services, policy-making, informed and ultimately better procurement sector. the for outcomes Transition to WA.gov.au importance recognises the Finance a unifiedof and cohesive approachto online service delivery for customers committed have within We the State. presence online our transitioning to whole-of-government the into set an – to website – WA.gov.au example for others in the sector and the create blueprintto for change that can be shared and reused. This year worked we directly with customers better to understand and points pain user-journeys, expectations so that information and services can be designed around customer needs and away agency-centric traditional from architectures. The approach to design validate to co-design helps and choices inherent in WA.gov.au introduce features and services customers benefit directly that accessibility, improving including increasing ability search and enabling access across a range friendly mobile devices. of The Officetheof Auditor General, Victoria tabled a report on State Purchase (the Contracts (SPCs) on CUAs) equivalent WA’s to and identified September20 2018 Business Intelligence Finance’s Reports as dashboards and examples good of practice: “the Department Australian (WA) Western Financeof provides a better practice example a central how of procurement body can capture procurement analyse data to patterns spending government and help identify opportunities to establish SPCs.” Business intelligence has been rapidly across adopted the commenced with We organisation. a small concept, proof of building capability among staff 50 who theadopted technology visualise to reports from the large number separateof data sources. Within usage has increasedthe year, to approximately 350 users who actively andinvestigate analyse data, and reports. develop isIt expected enhancing by data analytics and reporting it will lead to improved insight, accurate reporting buying behaviours, sector-wide on buying aggregated of identification The Review finalof Gateway concertedthe transition “A noted: effort was made throughout the program be an exemplar to for similar future processes other initiated by Government Agencies. In this sense Finance for has the paved way other agencies the into move to GovNext arrangements.” analytics business on Focus Finance was applauded this year for its capabilities in and use data of underpin policy analytics good to development and better targeted service delivery. Procurement Government Finance’s 33 manages unit business Use Common whole-of-government Arrangements through which (CUAs) goods of billion $1 approximately and services are purchased annually. provide tools Business intellegence a source open of and transparent data and are used support to public authorities in making better including decisions, procurement extracting better value and reducing Thiscost. information has also led increasedto transparency and sector. the across accountability

Leadership in government’s government’s in Leadership transformationdigital Finance has taken a leadership of implementation the in role whole-of-government a – GovNext-ICT government transition to initiative from being an owner and operator of infrastructureICT a consumer to of and storage compute, commercial services.network Finance only not This assisted year, in agencies government other successfully implementing initiativesGovNext-ICT but also cloud to transition own its completed technology – a secure, reliable and consumption on-demand scalable service ICT based model. As a result were able transition we to 850 approximately from workloads on premise servers 330 virtual to servers. This enabled move us to streamline staff processes, automate repetitive tasks such as power and scale resource our scheduling, workloads changing meet needs to demands. and customer the to move Importantly, Finance’s cloud more allows rapidly us to adopt platforms and technologies new that will enable the transformation of services outlined in the Strategy. Finance’s focus on innovation Finance’s through digital transformation Bold and

Innovative

Department of Finance Annual | 22 Report 2018-19 cost savings to the WA taxpayer. cost savings the WA to achieve its strategic goals and deliver Finance improve services to customers, services customers, to improve Finance Moving towards its digitalMoving towards future will help of online transactions. of 2018-19 to increase to itsvolume 2018-19 continued steps during take to types performed digitally, Finance Finance types performed digitally, almost half these of transaction different transaction types. With transactions a year across 190 half-a-million customer-facing customer-facing half-a-million Finance conducts in excess of by 2022. customer-facing transactions customer-facing 90 per cent the most of meaningful Finance Digital Strategy 2018-2022 Strategy Digital Finance usingof digital channels deliver to developed The Departmentdeveloped of services online with the aspiration its customers and as such has its transitioning Finance to transformation better to service commits ultimately The Strategy Finance is embracing digital embracing digital Finance is (the Strategy). for service delivery across society. preference towards digital channels digital towards preference devices continues drive a to proliferation of affordable customer customer affordable of proliferation networks coupled with the the with coupled networks The emergence high-speed of Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Southern Grove Primary School Stage the Coastal 1 of Lakes College project, which is being delivered Schools through the WA Public Partnership, Private was also year. this completed Department of Finance Annual | 25 Report 2018-19 Stage Ridge 1 of View Secondary College valued million, $40.6 at development the included which classrooms,of sports a library, hall including facilities specialist and workshops; technology information and Stage the Shenton 2 of College million, works valued $46.18 at which included the development of new facilities that will cater for an students. 1,000 additional The two secondary schools that were constructedand delivered this included: year • • Coastal Lakes College the $16.8 million Aspiri Primarythe $16.8 School in Piara Waters; NorthAveley Primary School million; valued more at than $21.5 million Oakwood Primarythe $18.5 School located near Mandurah; and million Southern Grove the $17.5 Primary School. New schools delivered for 2019 Six new schools, works with a total million, were value in excess $160 of delivered Finance by ahead the of school year. 2019 The four new primary schools included: • • • •

We also actioned over 160,000 160,000 over actioned also We across requests maintenance non-residential 2,500 than more State. the across sites government Finance delivered more delivered Finance infrastructurethan 75 projects, with a total of approximatelyvalue $480 behalf on million, otherof government thisagencies year. Build Department of Finance Annual | 24 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 27 Report 2018-19 Artist impression of the Bob Hawke College Hawke Bob the of Artist impression New Museum project; Museum New Casuarina Prison expansion upgrade; and Bunbury expansion; Prison Southern River College upgrade; and School Melville High Senior – new theatre project. WA IndustryWA Participation Strategy the implementing Finance is Industry WA Government’s Participation Strategy (WAIPS) through building projects deliver to apprenticeships, and local jobs maximiseand WA opportunities for businesses. prospectiveUnder the strategy, government of tenderers contracts are required now plans participation submit to outlining their commitments to engage local industry. Eight pilot projects been have established with five being Finance: by delivered • • • • • Construction underway at College Hawke Bob Bob Hawke College Stage 1 construction the create to new Bob College Hawke (formerly the Inner City College) in Subiaco is openon track to for the start the of 2020 school year. was work construction Significant the including year this completed androof superstructures for all buildings. is focused Work now on the services of completing and installation building. the inside fit-out the The College will be a central hub for providing community, Subiaco the for important infrastructure social areas. and surrounding Subiaco East The College and its access points beenhave designed enable to and the community of use promote school facilities and grounds after gymnasium, the including hours, central courtyard, cafeteria and spaces.teaching Karratha Health Campus opens Campus Health Karratha The deliver works to the Karratha completed were Campus Health this year with the Premier officially million facility opening the $173.15 in October 2018. The Karratha Health Campus, which replaced the ageing Nickol Bay Hospital, incorporates an expanded emergency department, a brand new surgical a new centre, outpatients’ area, a maternitywing and delivery suites with purpose built baths provide painto relief for women during labour. and project Finance provided support management and contract Countryadvice the WA to Health Service throughout the year and has support ongoing provide to continued officialincluding the opening, following documentation project completing and deliverables. will continue We to oversee the two-year defects liability completion. final period to up Stream 2: practical completion completion practical 2: Stream was reached on the Katanning Health Service, Warren Hospital projects; Merredin Hospital and completion practical 3: Stream was reached on the hospitals at and and Cunderdin; Pingelly the completionStream 4: Small Hospital 24 of and Services.Health Southern Inland Health Initiative Health Inland Southern there were a number of In 2018-19, the across achievements significant Initiative: Health Inland Southern • • • will be the The focus for 2019-20 construction 2 Stream of completion Northamat and Narrogin.

Department of Finance Annual | 26 Report 2018-19

delivered in 2019-2020. and 18 regional be schools)and to 18 involving 51 schools metropolitan (33 involving 51 the third stage the program of Finance commenced has planning at $3 million. at in the previous financialyear valued This the work adds schools 49 at to of approximately $2.5 million. $2.5 approximately of 14 regional schools) value with total a 14 at 48at schools metropolitan (34 and This year Finance completed works by students.by Engineering and Mathematics (STEM) (STEM) Engineering and Mathematics the take up of Science, Technology, the Science, up take of Technology, 200 schools promote to across WA existing science laboratories up at to laboratories or the refurbishment of The program will deliver new science Science in Schools program. Schools Science in first two stages of the four-year first stagestwo thefour-year of Finance successfully delivered the the delivered successfully Finance Department Education of this year, delivered on behalf the of In addition the new schools to Science in schools in Science Karratha Health Campus Health Karratha Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Framing the heritage building is a white perforated veil The construction workforce peaked peaked workforce The construction with around 298 workers in mid-2019 the majorityon site, whom of were In addition, 60WA-based. local apprentices were engaged the by subcontractors its and Contractor contributing WA’s to this year, skills capabilities. Next year the focus will turn to audio including content producing visual, interactive and graphic design The gallery fit-out exhibitions. the for and installation internal of furniture will commence ahead in mid-2020 the Newof Museum openingthe to public in late-2020. Department of Finance Annual | 29 Report 2018-19 floating above and framing the the and framing above floating heritage buildings, the white, perforated veil was installed on the upper the level Museum of in The veil shimmers and mid-2019. reflects sunlight overas it moves the Cultural and Centre, night at will glowfrom the internal lighting, facility; landmark the illuminating and improved visitor access is a key design Museum the of feature the staircases, and in 2019 May escalators and two the of passenger lifts were installed. greatly has access Universal Museum. the throughout improved • • worth contracts Construction $30 million were awarded the by WA Contractor this financialyear. benefit to continue companies from this world-class project with approximately per 82 cent the total of value all of contracts – around million – expected be to $131 businesses. WA awarded to Construction is 75 per cent complete at the New Museum project Museum New the at complete cent per 75 is Construction seismic strengthening the of heritage-listed buildings was The steel completed in April 2019. buildings brings the reinforcement current the relevant, up to building codes, ensuring are they preserved for generations come; to and conservation heritage construction work started in revealing heritage mid-2018, features seen not visitors. before by Integrating the contemporary buildings existing the with building will allow visitors see the to heritage buildings from new vantage points, sheoak the timber including shingles installed on the Old Gaol The timber is similar roof this year. the originalto material installed by convicts in the mid-1850s; Construction progress Museum New the of Construction perreached cent completion 75 this year with some significant reached: milestones • • A new 1,000 square temporary metre A new 1,000 exhibition space will allow the Museum stage large-scale to dynamic and special exhibitions, and flexible multi-purposevenue spaces will contribute Perth’s to vibrant event scene. The iconic blue whale will return in a alongside display, new spectacular visitor and displays world-class experiences. The New Museum is be a majorset to attraction for local visitors the and State. tourists to New Museum project The New Museum is the next for WA the for project infrastructure major andState the most significant cultural in underway project infrastructure Australia. The million $395.9 project being delivered in the heart the of Perth Cultural Centre is on schedule and expected open 2020. to in late includes Museum the of The design a mix heritage of and contemporary architecture that will contribute to the revitalisation the Perth of Cultural will It Centre. showcase Western Australia the world, featuring to new galleries that share the stories of people and places, with objects WA’s past, and stories about our State’s present and future. Artist impression of the New Museum New the of Artist impression Department of Finance Annual | 28 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Artist impression of the new sports College River Southern at hall Construction of new a sports College River Southern at hall millionStage the $8.4 1 of Southern River College upgrade – the installation new hard of courts – was completed this year. the constructionStage 2, a new of sports hall is underway now and is on be completedtrack to late-2019. by The third and final stagetheof project the– refurbishment the science of and for theatre lecture a facilities, STEM students and a performing120 arts centre with seating capacity for 250 and be people, will start in late-2019 mid-2020. by completed local workers 190 willUp to be used deliver to the project and apprentices. 37 includes Department of Finance Annual | 31 Report 2018-19 New theatre project for School High Senior Melville million Construction a new $4.47 of theatre is underway Melville at Senior High School and will be delivered by 90 local workers. than more The theatre will feature two connected spaces for drama and dance, with both sprung floors and divided movable a plus by wall, retractable seating for 300 people, a green and foyer room, gallery space, as well as storage and a staff study. The works are being delivered a by Australianlocal contractor Western and are on schedule be completed to 2019. in late

Artist impression of the new theatre at Melville Senior High School Bunbury Regional Bunbury Regional Expansion Prison Construction a new 160-bed of unit accommodation storey double is underway the at Bunbury Regional million Prison as part the $15.4 of project. expansion The contract a was awarded to Australianlocal contractor Western with site in November 2018, works being undertaken a by Bunbury-based builder. As part more than WAIPS, of local700 workers been have including project the to committed apprentices,37 who will gain valuable experience and expertise. there expansion the to addition In will be upgrades the reception to well as facilities, educational and as the kitchen and a dining room. The project is expected be to completed and handed the to over Department Justice of 2019. in late Construction been works have Thestaged. construction and kitchen new the of commissioning and meals facility are expected be to followed completedin October 2019 the firsttheby of accommodation The designunits in December 2019. and construction the entire of project is due for completion April by 2020. isIt expected that more than 1,200 local workers will be employed on the apprentices. 20 including Project four new accommodation units units accommodation new four beds, and twoeach holding 128 ancillarynew support buildings; a new kitchen and meals facility which will 2,000 cater for up to inmates and 300 staff; a new reception storage facility; upgrades existing visitor to and medical centres, substation and and infrastructure; an extension car of parking facilities. The project will deliver: • • • • • A male Alcohol and Other Drug (AOD) prison, as part the Government’s of will Plan, Action Methamphetamine be delivered as part the Project. of affected AOD for Accommodation prisoners will be constructed in addition a new precinct to within Casuarina Prison, which will offer and treatments health specialised associated withdrawal services and counselling. education including

Project drawings for the Casuarina Prison Expansion Project Prison Casuarina the for drawings Project

have commenced. have also complete and concrete works structural steel for the new kitchen is are complete. The installation of demolition works within that building building that within works demolition existing building within the Prison and Prison the within building existing The new kitchen will be located in an has commenced. has the new accommodation units units accommodation new the of precastof concrete panels for manufacture offsite the and works nearing completion. Concrete Concrete nearing completion. in-ground infrastructure services infrastructure in-ground installation hydraulic of and electrical this year with earthworks and the project were completed in February Site establishmentSite works for the the milestone completion dates. completion milestone the and is progressing meet on track to is more than per 20 cent complete Casuarina Prison Expansion Project Construction of the $96.6 million million $96.6 the of Construction Expansion Project Casuarina Prison Prison Casuarina Department of Finance Annual | 30 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Co-Working Hub Strategy Hub Co-Working vital are Fremantle and Joondalup cogs Co-Working in government’s which leveragesHub Strategy, the GovNext service allow staff to accessto network their agency’s services government selected from officestrategic in buildings locations. metropolitan government of decentralisation The metropolitan major to agencies activity centres will drive the growth in infrastructure, public transport, local business and services within expected is It suburbs. neighbouring easeto the strain on public transport Perthinto during peak periods and assist the reduction traffic of congestion in the Perth CBD. Department of Finance Annual | 33 Report 2018-19 DWER’s new office DWER’s accommodation at Prime House in Joondalup by 3,800by square metres. The relocation is expected play to a significantrole thein future growth and development Joondalup of as a vibrant and vital city centre. The relocation the Department of of office head functions Communities new premisesto in Fremantle is progressing, and more than 1,500 staff Kings to are expected move to Square Fremantle in early 2020. Finance undertaken also has various expressions interest of (EOI) for office space, including space for a Western Australia Police Force headquarters, a police complex a in Fremantle, Parliamentary Precinct in Perth West and a consolidation agencies of in outcomes the to Subject Bunbury. submissions the EOIs, of will be the Government.made to Relocation of government offices government of Relocation This year saw Finance reach a successful the with milestone major relocation Department 700 over of of Regulation Environmental and Water staff(DWER) a new leased to Joondalup. in House, Prime building, DirectorDWER General Rowe Mike acknowledged the Department of Finance team who led the Joondalup stating: project accommodation “The team the at Department of Finance worked with us tirelessly plan identifyto for the move, our requirements, and assist us in the change management program support to staff in making this significant shift. They did a deliveringin our magnificentjob excellent new head office.” The relocation Joondalup to will million ansave estimated $28 over years and reduce 15 government’s footprint officeaccommodation Finance manages 560,000 over square metres office of WA. across accommodation approach whole-of-government Our the planning,to procurement and accommodation management of enables aggregate agencies’ us to needs officeand accommodation utilise large government’s buying furtherpower to reduce the overall expenditure. commitment Finance’s Additionally, and analysing collecting to agency-ownedinformation on 155 with well progressing is buildings accommodation value-for-money proposals expected be identified to and presented government to the by end 2019. of The program is expected reduce to officeaccommodation government aroundby 50,000 square metres and realise a further million $30.5 Juneby 2022.

Finance remains committed to to significantrealising savings government taxpayer and the WA via the Government Office Reform (GOA) Accommodation support government’s in of Program Strategy. Reduction Debt In only its second year operation, of Finance has exceeded the expected annual targets and identified reduce to opportunitiessignificant the size and cost government of officeaccommodation. Finance date, has reported total To office existing the across savings portfolio over accommodation of significant million. In 2018-19, $113 savings were achieved through the renegotiation several of high leasespriority the in government Perth advantage take CBD to the currentof favourable property conditions. market to Government Officeto Government Accommodation reforms and

committed Passionate Department of Finance Annual | 32 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators the option to roll in newlythe option to example, (for sites constructed METRONET) under the same discounted rates; arrangement supplier single a administrative in resulting and efficiencies; terms with electricityan contract and conditions, whichfavoured more than its previous the PTA arrangement. • • • Finance saved an estimated $714,511 in the reticulated gas contract for the Service, Health Metropolitan South reducing current contract by rates nearly per cent. 42 consumption and site Through analysis a thorough followed by Finance was pricing evaluation, able recommend to awarding a two-year contract a single to supplier. The contract was awarded the by Service Health Metropolitan South in March 2019. Department of Finance Annual | 35 Report 2018-19 a saving $35 of million the over whencontracttheyears), term (five million) was current spend ($167 compared forecast to spend under million); ($132 contract new the CUAs – savings for WA savings Finance generated has through again CUAs this year. period, CUAs Across the 2018-19 Government saved the WA have through million $202 approximately services. priced and goods lower electricity new a was example One contract that extends across 81 Authority (PTA) Transport Public electrification train including sites networks, train stations, bus shelters, parks. car and pricing a Finance developed framework and contract term structure, which was the catalyst for competitive tension between CUA analysis pricing a Following suppliers. awarded Finance, quotes by of PTA electricity the under contract the achieves: which CUA, • . The new electricity contract extends across 81 PTA sites PTA 81 across extends electricity contract new The A key function is theA key CUA a of opportunity substantially to reduce the administrative cost and authorities public 139 for duplication entities, government other and Additionally, CUAs. accesswhich the protection government offer CUAs with consistent and well-established terms and conditions mitigate to risk. reputational legal and financial, Central our ability to generate to accommodate and savings changes in the market place is the evidence-based advice we governmentprovide to via business Details about this tools. intelligence initiative are available on page 22

We manage 33 whole-of-government manage whole-of-government 33 We (CUAs) Arrangements Use Common billion $1 which approximately through annually. into entered is expenditure of buying strong our leverage We money for value deliver to power community. the to Finance is the is Finance leader government in procurementor “buying” behalf on of government. Buy Department of Finance Annual | 34 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

41% PASSENGER PASSENGER

VEHICLES SOLD FLEET STATE BY 59% LIGHT COMMERCIAL Department of Finance Annual | 37 Report 2018-19 OUT OF 8,818 VEHICLES:OUT 8,818 OF FLEET SIZE AND COMPOSITION NEW VEHICLES PURCHASED Vehicles sold by State Fleet in 2018-19 – 1,636 – 1,636 Vehicles Fleet sold State by in 2018-19 GST). million excluding ($28 1,636 2017-18 – 2,086 new vehicles (monthly average 174) were purchased new vehicles – 2,086 (monthly average 174) 2017-18 vehicles – 1,656 million 2018-19 GST). valued (excluding $78 at valued $62 at million GST). (monthly (excluding average 138) 1,656

facts output below 185 grams output below 185 2 $330m

/km for passenger vehicles and 2 of CO Agencies are required choose to new CO with vehicles 195 grams/km for SUVs. grams/km for 195 FLEET FLEET VALUE 57months/95,000kms leaseAverage term is months/95,000 around kilometres 57 and continue is increase. likely to to Fleet

Fleet This year saw significant changes Government the State to fleet with agency vehicle fleet reflectto caps actualeach fleet agency’s at size as This cap saw a total 1 January 2019. vehicles. 572 of reduction vehicle of review a Additionally, usage levels was undertaken, which theof Government identified211 vehicles (GVS) Scheme Vehicle in the metropolitan area were These vehicles underutilised. will be progressively removed from generating the fleet from 1 July2019, million annually savings $1.1 of government. across Finance has been trialling telematics systems) monitoring (in-vehicle technology and a Poolcar shared booking within system its ownIt fleet. implementation the facilitating now is this technologyof across government, which will fleet improve utilisation data across the sector and further identify to government enable efficiencies. fleet opportunities for the indicative annualUltimately, whole-of-life cost the fleet of has million to reduced from $119.3 million$99.6 – a reduction of The million reduction per is year. $19.7 a result longer of vehicle lease terms, lower fringe benefits tax and savings on operational fleet costs.

One of the key learningsOne the key of was that our clients engage would us to like with them and face-to-face better processes procurement explain – feedback Finance will look to action as it adapts its services the comingover year.

SATISFIED WITH EASE OF OF EASE WITH SATISFIED PRODUCTS OR CONFIRMED GOODS THAT AVAILABLE THROUGH CUAS MET NEEDS BUSINESS SATISFACTION WITH WITH SATISFACTION SUPPLIER PERFORMANCE PURCHASE THROUGH CUAS VALUE FORVALUE MONEY CONFIRMED CUAS REPRESENTED REPRESENTED CUAS CONFIRMED OF 2,500 CUA 2,500 OF PUBLIC SECTOR PRACTITIONERS CUAS WITH OVERALL AN EXPRESSED SATISFACTION

Department of Finance Annual | 36 Report 2018-19

97%

96%

96%

94% 98% approach to procurement. to approach staff professional a demonstrated and expertise per and cent 97 of the procurement level of knowledge of respondentsof were satisfied with 2019 confirmedthat 95 per cent 2019 The latest survey results from March of procurement services. procurement of calibre Finance of staff in the delivery satisfaction results also illustrate the the also illustrate results satisfaction Agency Procurement Services client client Services Procurement Agency satisfaction surveys from the last four years confirmed: years four last the from surveys satisfaction just savings its customers. to Externally conducted It is worth noting Finance’s CUAs offer CUAs isIt worth more than noting Finance’s Finance gets tick of approval from customers Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 39 Report 2018-19 Aboriginal Business Expo, connecting Aboriginal businesses with government representatives government with businesses Aboriginal connecting Expo, Business Aboriginal Finance will soon contracts award capability services building for to further support development the Aboriginal business sector, the of emerging Aboriginalincluding businesses throughout located Australia. Western Aboriginal BusinessAnother Expo which will will be held in 2019, late support relationship to continue and betweenbuilding government This Aboriginal business sector. the event will celebrate outcomesyear’s from the firstyearPolicy theof and contracting present see government Aboriginal the opportunities to expo saw Thebusiness 2018 sector. 60 Aboriginal businesses than more 200 approximately with connect attendees. government

A total of 74 government contracts 74 of A total 53 registeredwere awarded to to Aboriginal July 1 businesses from representing December an 31 2018, million. $25 of value approximate Finance has been the integral to success of and implementation Policy. Aboriginal Procurement the undertaken have We a number of sessions with training and education Aboriginal businesses government and area, metropolitan the in agencies the during Kalgoorlie Karratha and financial year. 2018-19 delivered be will training Additional Aboriginal to State the across businesses regional and in June from locations metropolitan to September 2019. The goal this of Septemberto 2019. training ensure is to government processes practices and procurement are understood maximise to the opportunity Aboriginal businesses for harness opportunities presented to the Policy. by

Finance has led the Government’s increasing to commitment of economic participation the the Aboriginal businesses through Aboriginal the of implementation Procurement Policy and is on track exceed the firstto year mandated target 400 by per cent. In the first sixPolicy, the of months more than four percent all of State Government contracts been have Aboriginal registered to awarded businesses with 98 per cent of those based in Western Australia. This is a significant outcomethat demonstrates the strength of the local Aboriginal business sector. The Policy requires government WA agencies a minimum award one to of per cent registered contracts of to Aboriginal the business throughout financialyear. 2018-19 through the Aboriginal Procurement Policy Influencing progress Department of Finance Annual | 38 Report 2018-19 Justine Kinney, Kinney, Justine Cultural Creative Agency Overview Agency Financial Key Performance Disclosures Performance Statements Indicators , a deal negotiated by this year to implement this year to stage Tax amendments to fund fund to amendments Tax Scheme Incentive Trainee Finance delivered amendments to Assessment Act Tax the Pay-roll 2002 two reforms the Government’s of for trainees. the exemption to This remaining the removing involved for wagesexemption new paid to worker trainees. The estimated revenue savings millionfrom this measure – $109 the forwardover estimates – will be used fund to a new employer incentive scheme administered by the Department and Training of This Development. Workforce scheme will be available all to paying those just businesses (not payroll tax) and will support new traineeships and apprenticeships being created. The payroll tax changes were critical be able access to for the State to million funding of under $110 up to Government’s Commonwealth the National Fund Australians Skilling Partnership government in September 2018. September in government The amendments operate from 1 July 2019. Department of Finance Annual | 41 Report 2018-19

instructing the Parliamentary the instructing Office during drafting Counsel’s the Bill; of Department the with conjunction in supporting the Treasury, of Minister and his representative in the Legislative Council during through legislation the of passage Parliament; delivering an use easy online to allow taxpayers to system to self-assess and betting pay tax; and identifying opportunities for compliance programs. Betting Tax legislation passed legislation Betting Tax betting The point-of-consumption tax scheme was introduced on The new legislation1 January 2019. place-of-supply previous the replaced model and simplified betting tax arrangements in Western Australia. The new arrangements require tax be Western Australia paidto to for bets placed Western Australians by jurisdictions, other than (rather experienced). previously as delivering in the role Finance’s included: scheme • • • • there are 23 As 30 at June 2019, betting tax operators registered and paying the tax with $30 million in revenue raised against the estimated million for$31 2018-19.

Finance staff were integral in several legislative amendments this year instructing the Parliamentary the instructing Office during drafting Counsel’s the Bill; of Department the with conjunction in supporting Minister the Treasury, of and his representative in the passage during Council Legislative Parliament; through legislation the of supportpublishing and materials education customer delivering sessions help to taxpayers and their representatives understand their obligations; identifying data opportunities for Border Australian with exchange bodies to regulatory other and Force and underpin compliance programs; friendly user systems implementing allow foreignto buyersduty be self-assessed. transactions to Foreign Buyers Duty introduced Buyers Foreign The Foreign Buyers Duty scheme, election government a was which on introduced was commitment, This imposes1 January an 2019. per cent seven duty of additional on certain purchases residential of property made foreign by persons. designing for responsible was Finance and legislative the implementing and included: which scheme, administrative • • • • • transactions 208 As 30 at June 2019, been assessed Foreign with have Buyers Duty raising just over million. $5.5

Key outcomes for the year included included year the for outcomes Key payroll and duties the to amendments introduction as the as well tax legislation, betting point-of-consumption the of tax scheme. improving on focused Finance servicesonline through customers for processes, streamlined efficient and more easier it making and tape, red reducing Department. the with interact to Finance’s State Revenue Finance’s collects around billion $7 taxationin revenue annually behalf on of the State Government. Collect Department of Finance Annual | 40 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Expansion of payment refunds and methods Electronic payment methods were include to expanded in July 2018 (EFT),Electronic Funds Transfer and credit card across various BPAY revenue lines, and electronic refunds were introduced for all revenue lines. payments some Previously, non-electronic to restricted were methods (cash or cheque) or only methods electronic limited had direct available (credit card, BPAY, As the at enddebit). June of 2019, around 90 per cent all of payments financialyear for the 2018-19 were made electronically, offering convenience customer improved reducing and significantly costs processing with associated payments. non-electronic All refunds were previously paid by nearly per 75 Socheque far, only. cent refund of applications made through the Online Services Portal improving the beenhave paid EFT, by timely access funds to for customers. Fully-automated Fully-automated arrangementspayment Finance has created an online solution for customers apply to for payment plans for land tax, payroll tax, duties and first homeowner grant debts. The facility offers increased convenience for customers who can applynow online for a tax payment arrangement and receive a decision in real This time. removes with associated previously delays written submitting customers for Revenue State to applications manual processing. also It provides a common method requesting of and administering payment plans across various revenue lines. Since its launch, has the system processed nearly payment 3,200 arrangements valued around at million in managed $109 debt. Importantly, this feature can help ease financial pressure on families and businesses giving by them increased flexibilityto meettheir tax obligations. State viewing their account summary, summary, account their viewing and valuations; land holdings accessing past and present-day assessment and notices; conducting a range other online of transactions including payment extensions, refunds and enquiries. Land services Tax Land tax is an annual tax on land and is a source general of revenue for government. revenue As a key stream, it assists in the funding of critical services the community to such as education, health, and law infrastructure. critical and order, Finance has improve worked hard to the experience and efficiencyof community on tax and obligations businesses In the last alike. year, Finance has enhanced its online services digital include portal to customers enable that facilities more easilyto fulfiltheir land tax burden the alleviating responsibilities, manualof processes paper-based and reducing the overheads supporting analogue with associated channels. Customers are able now self-serveto by: • • • The is still system in its infancy and has already registered more users the at end the of than 1,500 financialyear.

Access to First HomeOwner Identification Unique Grant Number Look-up The First Home Owner Grant (FHOG) is a one-off payment assist to eligible first home buyersto purchase a new home for use as their principal place residence. of important recognises its Finance role in assisting first home buyers through an often stressful period and, as a result, expanded its FHOG The web-based in July tool 2018. facility assists applicants both and their agents (for example, conveyancers or mortgage check to brokers) on the a FHOGstatus of application via the ServicesOnline Portal. The which tool, has seen a high leveluptake with nearly 38,000 FHOG status checks since July offers2018, increased convenience for customers who can access when and as information application it suits them. The use technology of self-service has enable customer to reducedled to costs in administering empowering while processes, these staff focuson to improved service delivery outcomes. A win taxpayers for portal

Innovative

Department of Finance Annual | 42 Report 2018-19 Portal in 2018-19. in Portal of its Online Services Online its of through the expansion expansion the through access to servicesaccess to customers with easier with customers to focus on providing providing on focus to State Revenue continued continued Revenue State onlineservices Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 45 Report 2018-19 Finance graduates are recruited on their values rather than on their particular field of study

Several key achievements achievements key Several closer us brought have year this our objective. to A key focus of the of focus A key One Finance projectOne to is Finance Finance themake best government in toplace work enhancing theby skills and capabilities staff our of and creating a diverse and culture. inclusive Our People Department of Finance Annual | 44 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

Rather than been I have just a job, opportunities countless to given individual an as myself develop and asa professional. Within the program, there is an internal training developing on focusses calendar that transferrable skills. This skill the through continued is development Graduate Commission’s Sector Public has which Program, Development exposed parts me to government of that I never even knew existed while to Further university. at studying yourthis, supervisor and graduate identify your to work coordinator strengths and weaknesses and seek allowing individually training, tailor to reach your to fullyou potential. The program creates an environment flourish, onlythat not to you wants but gives tailored you support to achieve This your potential. has seen the majority previous of graduates the within employment full-time gain Department or with other agencies. per cent graduates 100 of Last year, secured roles within Finance, and I seehope the to same outcome for cohort.our

Department of Finance Annual | 47 Report 2018-19

A graduate Comments from graduate 2019 Victoria Gray perspective Finance has a really positive attitude training towards and retaining graduates so I felt my like contribution was valued right from one. Myday firstwasrotation in the Information and Technology Corporate in team Communications Services where I was engaged in the support policies to of development Information Department’s the Security Framework. Management Finance has a focus on recruiting graduates based on their values and all university degrees are considered. The benefitvalues-basedof recruitment has been obvious in our coming cohort. Despite graduate from vastly different backgrounds been have we bonded our by shared values and attitudes. Community includes The program we which Development, Involvement Volunteers Conservation with spent Australia Lesmurdie at Falls National opportunity an us This gave Park. give the community backto to and further share experiences as a cohort.

Another component key of our success is our focus on support the and relationships provided management, by and co-workers supervisors, the graduate alumni help to our smoothly transition graduates from a professional study to working environment. The success the program of allows Finance share to its knowledge and experience with other agencies and provide advice establish on to how or theirimprove own Graduate Programs. the Due high to Finance applicants, of calibre shares the applicants placed in a agencies. other with pool graduate

Seven graduates with a diverse range qualifications, of approaches and problem-solving innovation, to critical thinking skills were recruited 2019. Finance in by Graduates throughout are rotated the organisation offering insight the into diverse services helping deliver, we them develop transferrable skills. Gaining knowledge from a number businessof units helps Finance to work we through the way improve relationships professional fostering silos. and eliminating seen has which Our program, graduates participate134 since it provides was established in 2011, opportunities interact with to a wide including stakeholders, variety of with collaboratively working and agencies government other accompanying the Director General and other senior staff work-related to events.

makes Graduatemakes program number Australia 1 in Honest approach and respectful

training and development program; development and training quality of work; career progression; supervisor manager; or benefits; and compensation work/life balance; and culture. company orientation or induction program; induction or orientation

DepartmentDepartment of of Finance Finance Annual Annual | 4 | 46 Report Report 2018-19 2018-19 • • • • • • • • number areas key of including: and asked to rate theirand rate employer asked to on a Australia were anonymously surveyed surveyed anonymously were Australia More than 2,500 graduatesMore than across 2,500 nationally. agency has achieved this ranking marks the firsttime a government position last year. This achievement achievement This year. last position Top 75 list, improving list, on its thirteenth 75 Top Association of Graduate Employers Employers Graduate of Association employer the Australian by Australia’s number one graduate graduate one number Australia’s This year Finance was named Overview Agency Financial Key Performance Disclosures Performance Statements Indicators on-time, on-budgeton-time, delivery the of Dolphin Discovery Centre on behalf the Cityof Bunbury. of The Centre showcases the latest interactive interactions with display marine with wild dolphins. This project is a big boost for tourism for theCity; upgrades station police numerous across the regions; workshops of recommissioning after theat South Hedland TAFE these had been shut and down; delivery a number of programs of workof for the Department of including (schools), Education remediation/replacement, ceiling asbestos removal and other upgrades. particular consideration to to particular consideration Buygovernment’s Local Policy, support Aboriginal businesses, for assurancesvalue-for-money and risk management, as well as including management project quality control, administration, handover. and completion practical This year has seen some major achievements for our regional offices including: • • • • Department of Finance Annual | 49 Report 2018-19 personal and professional personal professional and this popular was development year with approximately 1,200 participating in courses such as Leadership, Intelligence, Emotional ConfidenceWomenfor and and Productivity; Personal the working in to specific training Occupational as such sector, public Health Disability, and Safety, Cultural Inclusion, and Access Awareness and Accountable and Ethical Decision-making was undertaken staff. 1,800 by services; repair breakdown 24/7 urgent works in emergencies caused cyclones, by flooding, earthquakes,storms, bushfires and vandalism; of acts major assessments condition building and the development strategic of plans; maintenance planning anddelivery of and programs; maintenance projects building of coordination which includes managing the tender process with • • Our role in the regions regionalThrough offices, our 12 Finance facilitates the delivery of services, maintenance building the non-residential of management and planning and projects, building delivery services of for government assets. servicesSome the key of provided our clientto agencies in the regions include: • • • • • approximately 1,400 staff approximately 1,400 undertook industry specifictraining, such as Project Management, Asset and Negotiation Contract Management; technical skills training, such as WorkflowAdvance Mastery, Skype Functions and BI Power was undertaken 900 up by staff members; innovation and future skills Design including Thinking, training Mindset Growth Planning, Strategic and Innovation workshops with guest speakers was conducted for 200 staff; The program supports The the program Reform Sector Public Government’s initiatives offering by employees at all levels the opportunity engage to in an environment that supports cooperation leadership, sector-wide collaboration. and events and Training building committedFinance to is capability and supporting staff allat achieve levels their to personal and professional goals. Our training focus programs development and highly-skilled a enabling on innovatively think to workforce about services the way are delivered the community to and outcomesprovide value-for-money Australians. all Western for staff participated in In 2018-19, a broad range development of were which of many opportunities, delivered in-house our by own experienced staff and through online minimisesystems to costs. These are below: outlined • • •

facilitating quality mentee/mentor quality mentee/mentor facilitating matches; and improving developing competence; professional supporting networking and knowledge exchangeacross the sector; and guidance developing in providing career goals. Finance is working now with the Department Planning, of Lands and Heritage deliver to ABW within their existing office space at and House, Stephenson Gordon the Departments and Transport of ABW new their for Communities workplace in These Fremantle. transitions will result in approximately 800 Department Planning of Lands and Heritage staff consolidating across two floors and approximately staff Fremantle. moving to 1,500 regular conducting also Finance is tours and presentations about ABW agencies. government other with program mentoring Interagency Mentoring Interagency Finance’s Program is in its fourteenth year and that time over has helped 880 participants across the public buildsector their to knowledge and experience. agenciesNine participating in are the program across the 2019 calendar mentors year with 103 and mentees paired from different opportunities providing agencies, employee grow networksto and collaboration. future facilitate The Interagency Mentoring Program provides build a forum to relationships and capability across by: sector public the • • • • Collaboration zone – where where – zone Collaboration staff can and brainstorm freely. collaborate Focus zone – a quiet area phones)(no where staff can read tasks. specific on focus or Process zone – for standard practices. work a culture flexibility of and mobility; environmenta paper-light through printing; follow-me between collaboration greater and individuals across groups and business; the to technology of application greater practices. work agile enable more Finance transitions to a environment work collaborative Finance transitioned to In 2018, Activity Based (ABW) Work – a flexible and community-basedwork environment that offers a variety spacesof specific relevant to work being undertaken. Our ABW office is separated into zones: distinct three • • • Staff members an do have not select rather desk but assigned the type work of setting that best suits their work activities for the day are Teams or a portion the day. of assigned ‘home bases’ but to are encouraged work alongside to other teams as needed. The creation an of ABW workplace for Finance the at Optima Centre in Osborne Park has only not enabled approximately of consolidation the 200 staff from this the space CBD to and saving nearly of million $2 per supports: also but annum, • • • • Department of Finance Annual | 48 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 129 129 143 143 139 139 139 133 133 133 Page 75 76 60 1.6 2.0 110 1.76 7.0 8 10.76 25.91 Actual 80 1.7 1.4 1.5 124 100 100 8.28 11.16 27.3 6 Target $ $ $ % % % % % % % Unit Department of Finance Annual | 51 Report 2018-19 Average costAverage per tax or duty determination Average administrativeAverage cost per vehicle for financing and managing Fleet the State service Common whole-of-government managing and developing of Cost Use Contract Arrangements as a percentage annual the total of value arrangements the through purchases of Percentage new buildings of projects within the Building Management and Program, Works valued $5 over million, delivered the approved by handover date repairs priority high breakdown of Percentage timeframes agreed within completed Project, contract and administration deliver costs to building, non-residential whole-of-government services accommodation and a maintenance as delivered services of percentage Percentage major of projects in Strategic Program Projects’ delivered forecast be (or delivered) to within approved timeframes Key Efficiency Indicator Efficiency Key Cost project of management as a percentage project total of costs Average costAverage per grant or subsidy determination Cost facilitating of the developmentand management agency of specific contracts as a percentagetheof contractvalue award Service

141 131 131 131 127 127 137 137 Page

96 100 100 100 1.11 14.42 4,823 4,995 Actual 92

100 100 100 1.03 14.50 4,575 4,600 Target 2 $ $ % % % % % m Unit

Performance

Summary for 2018-19 of Non-Financial

Debt as a percentage revenue of raised Extent which to correct grants, subsidies and rebates are paid annualAverage vehicle net capital cost: vehicle passenger Per vehicle commercial Per Extent which to client agencies agree that their agency contracts and Common Use Arrangements achieved value for money Percentage new buildings of projects within the Building Management and Program, Works valued $5 over million, delivered within the approved budget Key Effectiveness Indicator Effectiveness Key Average officeAverage accommodation floor space workper point Percentage major of projects in Strategic program Projects’ works of delivered forecast be (or delivered) to within approved budget Outcome Department of Finance Annual | 50 Report 2018-19

Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 53 Report 2018-19 Reduction Fleet State due reforms to reducing the reduction significant and vehicles new of purchasing of debt. The working cash limit is 5 per cent recurrent of variation the and and financing) (operating payments reflectsthe reduction in actual costof services. Cash balances are lower than estimate due a reductionto fleet in State borrowings. Reduced expenditure on salaries is a result of higher than forecast vacancy levels and reduced levels. recruitment The 2019 actual was lower than estimate as The 2019 a result reduced of expenditure offset a reduction by in revenue received from the capital works program delivered Building by Management and on Works agencies. government of behalf equity has beenTotal reduced as a result of reduction a with combined investment capital lower receivables. in Reason for significant variation variation significant for Reason between actual and estimate Actual expenditure was below estimate primarily due capital whole-of-government the in reduction a to works program delivered Building by Management and on Works behalf government of agencies.

$000 8,443 ( 7, 211) ( 7,514) 27,0 5 3 16,282 (61,327) 162,440 Variance Variance

of the financial statements. financial the of $000 5,868 62,151 60,752 Actual 93,381 132,635 1,142,331 1, 267,8 3 3 (a) $000 13,079 66,912 78,433 101,824 159,688 1,430,273 1,203,658 Estimate

Actual results estimate versus (a) Approved State as part Budget of the process 2018-19 Working Working cash limit Approved salary level expense Agreed limit borrowing Total equity Total increase/ Net in (decrease) held cash Total cost services of Total limit) (expense Net cost servicesof Further explanations are contained in Note in contained are 9 explanations Further The estimated $1.43 billion in The estimated $1.43 expenses primarily relates to the across works building billion), ($1.2 whole-of-government billion) ($0.12 expenses employee billion). ($0.08 depreciation and

The Department Finance of cost estimated of total 2018-19 services approximately was allocation billion, funded largely through $1.43 the charging other government of departments for building works, maintenance and leasing. The other appropriation is source funding key billion. $0.17 of

Performance

Summary

for 2018-19 of Financial Department of Finance Annual | 52 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 55 Report 2018-19 0.50% 76.68% 6.29% 4.74% services % 11.79% Breakdown of total cost of % 4.74% 0.50% 6.29% 11.79% 76.68% 6,364 79,805 60,062 972,170 972,170 149,431 Cost ($) 2018-19 Leads the planning, delivery, management and maintenance government of buildings, office and accommodation projects Development and management Common of Use Contract Arrangements, fleet State leasing and disposal, and providing facilitation service for agency specific contracts Revenue assessment and collection, and grants and subsidies administration subsidies and grants and assessment collection, and Revenue Leads the planning and delivery of major government building projects building delivery government and planning major the of Leads Corporate Services agencies client Corporate to    Services

Department of Finance Annual | 54 Report 2018-19

Cost of services for Overview Agency Financial Key Performance Disclosures Performance Statements Indicators YOUTH 55+ 25.4% -5445 27.5% 35 -44 25% 25 -34 20.4% UNDER 25 1.6% AGE PROFILE (target: 5%) 1.6% FULL-TIME PERMANENT FULL-TIME CONTRACT FULL-TIME PART-TIME MEASURED A FTE ON BASIS PART-TIME SECONDMENT

OF AGENCY SERVICE 722 106 82 9 Department of Finance Annual | 57 Report 2018-19 ABORIGINAL AVERAGE YEARS AVERAGE IN RETENTION EMPLOYEE 2018-19 STAFF EMPLOYED OVER 5 YEARS 11 92% 78% (target: 3%) 0.6% RETENTION AND AND RETENTION YEARS OF SERVICE

WITH DISABILITIES

SINCE 2011 GRADS STARTED

s (target: 2%) 2.1% WOMEN WOMEN 51% OF THEIN WORKFORCE

OF MANAGEMENT IN Level 6 equivalent and above 45% FROM CALD TOTAL 919 FTE 919 TOTAL FULL-TIME EQUIVALENT FULL-TIME DIVERSITY STAFF Workforce Profile 21% (target: 15%) 134 focus on installing an inclusive an inclusive installing on focus demonstrating including culture practices; leadership inclusive respectfully call out behaviours and decisions that are consistent not with the gender equity charter; genderinvestigate equity issues and business unit; each to specific continue with the initiatives whole-of-department included in the Gender Equity Plan. Action The Corporate Executive has the to commitment its renewed Gender Equity Charter and will: • • • • A Gender Equity Champions Group was established and in January 2019 has discussed targeted actions to culture workplace inclusive an deliver that achieves gender balance in management.

flexibleworking arrangementsfor (including roles management arrangements); part-time practices recruitment improved and unconscious bias training and decision-makers; for frequent and rigorous more metrics. gender on reporting towards the target. towards Women in management in Women Following Service the Government’s Priority which the noted review, under-representation women of in the senior echelons the public of commissioned Finance an sector, evidence-based review on the nature and cause the of under-representation women of positions. management in This review identified barriersto developed and progression women’s recommendationsa suite of to achieve a target per 50 of cent womenof in management roles Service (Public Government and Officers GeneralAgreement Level 6 above). and equivalent The Gender Equity Action Plan was year the throughout implemented and included: • • • highlighted have Recent reviews that despite these initiatives, Finance changehas to its culture in order to effect change. in women The proportion of remains positions management aroundat 45 per cent as more progress to required is work Issues

Significant which outlines targets

a more inclusive work environment. Cultural Awareness training create to practices and continue deliver to employment and management management and employment As a result will we review our against the 3 per cent target. Finance is per tracking cent 0.6 at However, despite these initiatives, initiatives, these despite However, Plan 2017-22 the Department. Diversity in Finance Employment outcomes and creating diversity in In 2017, Finance initiated the In 2017, and steps for improving employment Islander peoples. Islander Aboriginal and Torres Strait Strait Aboriginal Torres and for persons with a disability and employment outcomes specifically outcomes employment is committed improving to the Finance’s Corporate Executive Executive Corporate Finance’s Aboriginal employment Aboriginal be applied. be additionalfocus and works needs to been achieved, recognise we that community. Whilst some targets have and serve the members our of the organisation better to represent initiatives diversity create to within Finance has implemented several diversity workforce Enhancing Department of Finance Annual | 56 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 94 Report 2018-19 reform initiative as part deliver fair work conditions; provide safe and healthy workplaces; operate in an environmentally manner; sustainable and inclusively; act refrain from corrupt, fraudulent and behaviour. illegal This review coupled with the the reportCCC highlighted has need for government agencies and suppliers who do business observe higher to government with conduct. ethical of standards issue this to responding Finance is Sector Public Enhance its through Procurement Program. Reform Sector Public the of Responsible Supplier a addition, In hasPact been drafted, which procurement ethical incorporates principles and a supplier code of encouragesindustry conduct, to: • • • • • The draft has Pact been launched following consultation public for input. significant stakeholder

In August 2018, the Corruption In August 2018, and Crime Commission (CCC) released a report bribery into and corruption within the North Service, Health which Metropolitan by serious misconduct highlighted several former public servants and engaged. contractors numerous Given the serious the nature of announced government findings, an independent review all of existing contractual arrangements with the in companies highlighted the report.CCC The findings confirmed that the exposure was limited, State’s existingidentifying 15 of a total agencies.contracts As across 129 contracts were the 15 of a result, 11 terminated, two were in contractual and termination period for notice the remaining two were essentially inactive projects as related they to practical reached had which completion and were in the defects liability period. Combatting corruption in procurement

Solicitor’s Office matter. the on Solicitor’s is in close consultation with the State’s Finance, which delivered the project, project, the delivered which Finance, relating to the deliveryrelating to the hospital. of the State’s and John Holland’s claims claims Holland’s John and State’s the Children’s Hospital. These include These include Hospital. Children’s of contractualof matters for the Perth with John Holland regarding a range The State continues its discussions discussions its continues The State Contract negotations Department of Finance Annual | 58 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators CertificationFinancial of Statements Report Auditor’s Independent Disclosures Legal and Compliance Financial Statements– Statements Financial Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 61 Report 2018-19

Jodi Cant Jodi Director General Director 23 August 2019 from proper accounts and records to

For theFor reporting period ended June 30 2019 The accompanying financial thestatementsof Departmentof Finance been have prepared in compliance with the provisions the of 2006 Act Management Financial present fairly the financialtransactions forthe reporting period ended and the financial position30 June 2019 at as 30 June 2019. signing of the any date circumstances of At are aware not we which would render the particulars included within the financial statements inaccurate. misleading or Geraghty Dominick Chief Finance Officer Finance Chief 23 August 2019 statements

Certification of financial Department of Finance Annual | 60 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 63 Report 2018-19 Department of Finance Annual | 103 Report 2018-19 Department of Finance Annual | 62 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 65 Report 2018-19 Financial Financial statements Disclosures compliance and legal and Department of Finance Annual | 64 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 248 779 734 535 534 409 2018 4,818 1,001 4,307 16,771 23,913 26,212 ($000) 29,347 75,890 38,928 23,058 34,463 56,005 112,770 131,249 6 87,0 9 4 132,386 523,084 239,812 202,724 192,606 395,330 1,056,019 1,094,947 1,094,947 1,490,277 1,250,465 – 22 225 544 303 806 7,124 2019 1,076 4,953 17,18 6 24,412 11,487 74,292 25,738 ($000) 29,483 82,395 94,226 50,664 36,488 114,528 691,918 176,266 583,439 173,049 227,459 405,476 232,427 1,068,039 1,142,331 1,142,331 1,547,807 1,320,348 ) ) Department of Finance Annual | 67 Report 2018-19 7.1 7.1 7.5 7.5 7.5 7. 2 7. 2 5.1 6.1 6.1 6.7 6.7 6.4 6.6 6.5 5.2 6.3 6.3 6.2 6.2 9.10 3.1(b 3.1(b Notes . ’

Schedule of Assets and Liabilities by Service by Liabilities and Assets of Schedule LIABILITIES LiabilitiesCurrent Payables Other current assets Amounts receivable for services for receivable Amounts Employee related provisions related Employee Employee related provisions related Employee Non-Current Liabilities Borrowings Total Current Liabilities Current Total Borrowings Lease incentives Intangible assets Intangible assets non-current Other Restricted cash and cash equivalents cash and cash Restricted Receivables Assets Non-Current Total TOTAL ASSETS Finance lease receivables EQUITY equity Contributed surplus/(deficit) Accumulated TOTAL EQUITY Total Non-Current Liabilities Non-Current Total ASSETS NET See also the ‘ Other current liabilities current Other Amounts receivable for services for receivable Amounts ASSETS Assets Current equivalents cash and Cash Lease incentives Other provisions Other The Statement of Financial Position should be read in conjunction with the accompanying notes. Total CurrentTotal Assets Non-Current Assets equivalents cash and cash Restricted Receivables Property, plant, equipment and vehicles and equipment plant, Property, Finance lease receivables TOTAL LIABILITIES TOTAL Statement of Financial Position Financial of Statement As at 30 June 2019 - 17 578 106 298 2018 2,179 7,78 0 7,0 8 5 2,179 6,566 13,511 39,775 ($000) 40,562 66,007 115,304 150,900 164,517 184,722 (20,205) (20,205) 1,107,8 0 9 1,176,982 1,193,110 1,190,931 1,377,832 91 310 528 444 2019 7,3 62 1,082 1,859 4,486 6,596 13,512 68,159 12,465 ($000) 46,230 14,324 35,368 35,368 154,400 104,839 132,635 168,003 1,109,482 1,039,189 1,135,198 1,120,874 1,267,833 ) 7.4 7.3 4.1 4.1 4.1 4.4 3.4 3.4 3.4 4.5 4.5 4.3 4.2 3.3 3.2 , 5.2 3.1(a Notes 5.1 . ’

Schedule of Income and Expenses by Service

Finance costs Other expenses Other

Loss on disposal non-current of assets Interest revenue

Royalties for Regions Fund Regions for Royalties COMPREHENSIVETOTAL INCOME FOR THE PERIOD Accommodation expenses Accommodation See also the ‘

Depreciation and amortisation expense and Depreciation Gain from revaluation

Service appropriation NET COST OF SERVICES State Government from Income State Government State Total gains Total other than from income income Total Other revenue

Supplies and services and Supplies Total revenue Total Employee benefits expense benefits Employee Expenses COST OF SERVICES The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

SURPLUS/(DEFICIT) FOR THE PERIOD THE FOR SURPLUS/(DEFICIT) Services received free charge of Government State from income Total

Commonwealth grants and contributions and grants Commonwealth Grants and subsidiesGrants User charges and fees Revenue Total expenses Total Income

Gain on disposal non-current of assets Gains

Statement of ComprehensiveStatement Income of For the For year ended 30 June 2019 Department of Finance Annual | 66 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - (28) 106 361 200 500 (574) (421) 2018 7,70 0 1,326 5,575 74,187 (2,042) (2,632) 41,544 (6,032) 39,016 (6,604) 32,705 14,902 ($000) 15,343 89,857 77,625 (27,197 ) (23,115) (40,438) 132,352 (42,412) (68,140) 105,970 (117,9 49) (22,615) (122,972) (134,697) 1,216,232 (1,136,777) - - - - - 90 319 779 438 200 (521) 2019 6,178 8,280 6,395 5,868 11,820 (6,759) 77,625 (4,056) 55,757 (6,237) ($000) 30,379 93,239 83,493 (6,638) (92,774) (18,922) 121,593 (46,926) 106,128 (75,138) (18,484) (121,256) (105,098) 1,106,235 (1,033,285) Department of Finance Annual | 69 Report 2018-19 7.5 7.5 Notes Receipts User charges and fees GST receiptsGST from taxation authority Other receipts Net cash provided by/(used in) operating activities Commonwealth grants and contributions and grants Commonwealth Interest received receiptsGST on sales CASH FLOWS FROM INVESTING ACTIVITIES INVESTING FROM FLOWS CASH Payments Purchase non-current of assets Receipts Proceeds from sale non-current of assets CASH FROM FLOWS FINANCING ACTIVITIES Payments borrowings of Repayment Cash balance transferred the Department to Local of Government, Receipts from lease incentives Net cash provided by/(used in) investing activities equivalents cash and cash in increase/(decrease) Net CASH AND CASH THE EQUIVALENTS END OF THE AT PERIOD Cash balance transferred the Department to Treasury of Cash balance transferred from the Department Treasury of Sport Industries Cultural and Cash and cash equivalents the at beginning the period of The Statement of Cash Flows should be read in conjunction with the accompanying notes. Supplies and services and Supplies Finance costs Accommodation and subsidiesGrants Other payments Utilised as follows: as Utilised CASH FROM FLOWS OPERATING ACTIVITIES Payments benefits Employee paymentsGST on purchases taxation paymentsGST to authority Funding from Treasury Administered Treasury from Funding Fund Regions for Royalties Holding account drawdowns account Holding CASH FLOWS FROM STATE GOVERNMENTCASH FROM FLOWS STATE Service appropriation appropriations Capital Receipts borrowings from Proceeds Finance leases receipts activities financing in) by/(used provided cash Net Net cash provided by State Government State by provided cash Net Regional Infrastructure and Headworks Fund Headworks and Regional Infrastructure Statement of Cash Flows the For year ended 30 June 2019

- - - (4) 91 232 200 Total 11,820 12,020 14,902 ($000) equity 35,368 35,368 (15,043) (20,205) (20,205) 1,115,061 1,094,947 1,094,943 1,142,331 1,094,947 ------(4)

59,133 ($000) 38,924 38,928 35,368 35,368 74,292 38,928 (20,205) (20,205) (deficit) surplus/ Accumulated Accumulated ------91 232 200

11,820 12,020 14,902 ($000) equity (15,043) 1,056,019 1,056,019 1,055,928 1,056,019 1,068,039 Contributed Contributed 9.10 9.10 Notes

Changes in accounting policy Changes accounting in

Balance at 30 June 2018 Balance at 1 July 2018 Restated balance at 1 July 2018 Balance at 1 July 2017 Surplus/(Deficit) The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

in their capacity as owners: Transactions with owners with Transactions

for the period the for Other comprehensive income comprehensive Other income comprehensive Total

Surplus/(Deficit) Other contributions by owners by contributions Other Total

Capital appropriations Capital Distributions owners to Capital appropriations Capital

for the period the for Other comprehensive income comprehensive Other income comprehensive Total

Total Other contributions by owners by contributions Other Distributions owners to Balance at 30 June 2019

in their capacity as owners: Transactions with owners with Transactions Department of Finance Annual | 68 Report 2018-19

For the For year ended 30 June 2019 Statement of Changes in Equity Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - 320 3,516 8,940 (4,193) (1,672) (3,631) 31,309 ($000) 19,268 13,546 (1,352) (3,082) (30,198) (34,631) (10,233) (34,405) 283,295 (201,121) (44,864) (35,984) (82,200) (125,392) Variance 8 2018 ‘Disclosure of of ‘Disclosure 91,171 23,115 41,468 41,448 93,317 ($000) 40,635 64,035 14,902 Actual 122,972 842,502 160,994 625,564 234,496 354,663 252,165 (131,185) 105,483 3,284,154 1,226,205 7,100,660 6,743,012 8 2019 44,151 92,774 55,014 39,776 ($000) 18,922 33,375 11,820 89,686 56,540 64,355 Actual 150,761 (99,876) 104,131 808,097 644,832 207,301 363,603 1,100,813 3,567,449 6,707,028 7,018,460

- 7 76 (86) 522 (10) (113) (213) Department of Finance Annual | 71 Report 2018-19 3,412 7,8 61 5,037 24,225 (9,096) ($000) (24,747) (67,625) 113,254 (19,660) (25,665) (45,325) (229,931) (177,407) Variance (222,742)

8 2019 44,151 92,774 55,014 39,776 ($000) 18,922 33,375 11,820 89,686 64,355 56,540 Actual 150,761 (99,876) 104,131 808,097 644,832 207,301 363,603 1,100,813 3,567,449 6,707,028 7,018,460 1 2019 64,110 ‘Explanatory statement for administered items – income and expenses’ provide details of any 64,441 ($000) 39,700 18,400 76,200 84,649 11,820 44,364 117,521 360,191 176,426 101,000 104,141 644,945 800,236 (124,101) 252,626 1,330,744 3,454,195 Estimate 7,241,202 6,884,435 axation: Repayment of borrowings of Repayment Total appropriations Total Racing and Wagering Western Western and Wagering Racing Australian Tax duties Other Taxes Mirror Commonwealth Other revenue: Office lease rental revenue Administered grants and transfer payments ADMINISTERED TOTAL ESTIMATES INCOME Transfer Duty Transfer Landholder Duty taxationTotal Vehicle Licence Duty Vehicle Capital Expenditure Capital Purchase non-current of assets Details Administered of Income Estimates T Insurance Duty Adjustments for other funding funding other for Adjustments sources Land Tax Other income Region Metropolitan Tax Improvement Payroll Tax revenue other Total Appropriations: First Home Owner Grant 2000 Act Adjustments comprise movements in cash balances and other accrual items such as receivables, payables and superannuation. Note 10.2 administered income and expenses by service’ and Note 10.4 significant variations between estimates and actual results and for 2019 between actual results and for 2018. 2019 Capital appropriationsCapital Summary of consolidated account appropriations and income estimates appropriations income and account Summary consolidated of the For year ended 30 June 2019 - (203) 3,724 3,500 3,500 3,500 57,912 (2,223) (3,082) ($000) 55,587 (32,410) (34,631) (10,233) (52,087) (78,887) (44,446) (44,864) (109,999) Variance 2018 1,601 6,567 91,171 14,902 ($000) 76,082 62,285 Actual 181,840 184,722 (33,822) 417,967 149,299 160,994 252,165 150,900 150,900 1,377,8 32 1,051,058 (1,193,110) 2019 1,601 6,364 11,820 21,765 ($000) 79,806 56,540 60,062 Actual 972,171 150,761 152,799 132,635 149,430 207,301 373,521 154,400 154,400 1, 267,8 3 3 (1,135,198)

- - 144 1,459 1,650 1,650 1,650 (4,545) 28,703 ($000) (27,0 5 3) (19,660) (75,094) (25,665) (84,404) 135,387 (43,675) (45,325) (162,440) Variance

2019 1,601 6,364 11,820 21,765 ($000) Actual 79,806 56,540 60,062 972,171 150,761 152,799 132,635 149,430 207,301 373,521 154,400 154,400 1, 267,8 3 3 (1,135,198) 2019 1,601 6,220 11,820 (6,938) ($000) 78,347 64,607 76,200 151,149 417,196 176,426 224,524 159,688 152,750 152,750 252,626 Estimate 1,056,575 1,430,273 (1,270,585)

Total Income Total

GRAND TOTAL Total administered transactions administered Total to deliverto services Item 38 NetItem amount appropriated Delivery of Services

Subsidies Administration Subsidies Collection and Grants and Revenue Assessment and Details Expenses of Service by other transfer payments Administered grants, subsidies and and subsidies grants, Administered Item 39 AmountItem provided for payments: Community service obligation Administered Transactions Administered Item 107 Capital appropriations Capital 107 Item Capital First Home Owner Grant 2000 Act Amount Authorised Other by Statutes: Amount Authorised Other by Statutes: - Salaries and Allowances 1975 Act

to deliver services deliver to Total appropriations provided appropriationsprovided Total

to deliver services deliver to Total appropriations provided appropriations provided Total Specific Contracts Specific Facilitation Service for Agency and Disposal, and Providing and Providing and Disposal, Officeand Accommodation Arrangements, Fleet State Leasing Projects Buildings, Government Projects of Commonof Use Contract Management and Maintenance of Majorof Government Building Development and Management and Development Services Agencies Client Corporate to Leads the Planning, Delivery, Leads the Planning and Delivery

Less Net Cost Services of Total Cost Services of Total Adjustments Department of Finance Annual | 70 Report 2018-19

Summary of consolidated account appropriations and income estimates appropriations income and account Summary consolidated of For the For year ended 30 June 2019 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 2.1 2.3 2.2 Notes Department of Finance Annual | 73 Report 2018-19 ‘Disclosure administered of income and expenses by

‘Administered assets and liabilities’. and assets ‘Administered

Schedule of Income and Expenses and Income ServiceSchedule of by Service Liability and by Assets Schedule of Department objectives Department How the Department the How operates This section includes information regarding funding the natureof the Department receives and this how funding is utilised achieve the Department’s to objectives. This also provides note the distinction between controlled funding and funding: administered Department objectives 2.1 Mission The Department’s mission drive is practical, to cost-effective and quality outcomes across government benefit to Australians. Western Services The Department provides the following services: Revenue AssessmentService and Collection, 1: and Grants and Subsidies Administration Service Development 2: and Management Common of Use Contract Arrangements, Fleet State Leasing and Disposal, and Providing Facilitation Service for Agency Specific Contracts Services Agencies Client to Corporate Service 3: Service Leads the Planning, Delivery, 4: Management and Maintenance Government of Buildings,Projects and Office Accommodation Service Leads the Planning and 5: Delivery Major of Government Building Projects The Department administers assets, liabilities, income and expenses on behalf Government of which are not the function nor integral the Department. of to, controlled by, These administered balances and transactions are not recognised in the principal financial thestatementsof Department but schedules are prepared usingthe same basis as the financial statements and are presentedat Note 10.2 service’ and Note 10.3 2. Department outputs

including applicable interpretations including (FMA) and the Treasurer’s Instructions Instructions) (the precedence take and the Treasurer’s AAS. over paragraphs applicable for not-for-profit entities have been applied. have entities not-for-profit applicable for paragraphs Financial Management Act 2006 Act Management Financial

Australian Accounting Standards (AAS) (the Instructions TI) or (the Instructions The Treasurer’s Where appropriate, those AAS those appropriate, Where The

Department of Finance Annual | 72 Report 2018-19 1) 1) These general purpose financial statements are prepared in accordance with: Statement of Compliance of Statement These annual financial statementswere authorisedfor issuetheby Department’s Director GeneralAugust23 2019. on does form not part these of financial statements. A description its the operations nature of of and its principal activities been have included in the ‘Overview’ which the ultimate parent. The Department is a not-for-profit the parent. ultimate Theentity(as not Departmentprofitits is principal objective). is a not-for-profit The Department Finance of Government is a WA entity and is controlled Western Australia, of the State by which is 1. Basispreparation of 1.  2)  3)  4)

Notes to the financial statements – reciprocal. arrangements, are designated as contributions owners by where the transfers are non-discretionary and non- The transfers net assets of other agencies, to/from other than as a result a restructure of administrative of Contributed Equity. Contributed by TI 955by Contributions Owners by Wholly made to Owned Public Sector Entities and been have credited directly to can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by contributions as been designated have appropriations Capital equity as recognised can be contributions. by the Governmentby owner) (the as contributions transfer) or prior before such owners the transfers to, time by of, (at the nature of equitythe nature of contributions,other than as a result a restructure of administrative of arrangements, be designated to AASB Contributions Owners Interpretation by 1038 Wholly-Owned Made in to Public transfers Sector Entities requires Contributed equity be reasonable under the circumstances. the under reasonable be are based on professional judgements derived from historical experience and various other factors that are believed to where amounts affected those by judgements estimates and/or are disclosed. Estimates and associated assumptions significant judgements and estimates made thein preparationtheseof financial statementsare disclosed in notesthe Judgements, estimates and assumptions arerequired be made to about financial information being presented. The Judgements and estimates and Judgements the nearest thousand dollars ($’000). dollars thousand nearest the Where this is the case the different measurement basis is disclosed in the associated All values note. are rounded to historical cost convention. Certain balances will apply a different measurement basis as (such the fair value basis). These financial statements are presented Australianin dollars applyingthe accrual basisof accounting and usingthe Basis of preparationBasis of the resulting financial effect are disclosedtheto financial thein notes statements. required and has had a material or significant financial effect upon the reported results,details of that modification and Financial Management Act 2006 Act Management The Financial is modification Where wording. and format disclosure vary to application, Instructions the by AAS modified Several are Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

Department of Finance Annual | 75 Report 2018-19

Service 5: Leads the planning and delivery of major government building projects building government major of delivery and planning the Leads 5: Service

Service 4: Leads the planning, delivery, management and maintenance of government buildings, projects and office accommodation accommodation office and projects buildings, government of maintenance and management delivery, planning, the Leads 4: Service

Service 3: Corporate services to client agencies client to services Corporate 3: Service

Service 2: Development and management of Common Use Contract Arrangements, State Fleet leasing and disposal, and providing facilitation service for agency specific contracts contracts specific agency for service facilitation providing and disposal, and leasing Fleet State Arrangements, Contract Use Common of management and Development 2: Service

Service 1: Revenue assessment and collection, and grants and subsidies administration subsidies and grants and collection, and assessment Revenue 1: Service

The Schedule of Assets and Liabilities by Service should be read in conjunction with the accompanying notes. accompanying the with conjunction in read be should Service by Liabilities and Assets of Schedule The

1,094,947 1,142,331 9,400 4,304 569,477 566,682 - - 330,454 366,335 185,616 205,010 ASSETS NET

395,330 405,476 14,356 20,771 323,515 352,159 - - 42,300 20,277 15,159 12,269 liabilities Total

192,606 232,427 268 264 182,952 229,008 - - 3 0 7,6 1,281 1,783 1,874 liabilities Non-current

202,724 173,049 14,088 20,507 140,563 123,151 - - 34,697 18,996 13,376 10,395 liabilities Current

Liabilities

1,490,277 1,547,807 23,756 25,075 892,992 918,841 - - 372,754 386,612 200,775 217,279 assets Total

1,250,465 1,320,348 17,132 17,146 720,847 763,471 - - 341,173 352,943 171,313 186,788 assets Non-current

239,812 59 227,4 6,624 7,929 172,145 155,370 - - 31,581 33,669 29,462 30,491 assets Current

Assets

($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

Total 5 Service 4 Service 3 Service 2 Service 1 Service

As at 30 June 2019 June 30 at As

service by liabilities and assets of Schedule 2.3

Service 5: Leads the planning and delivery of major government building projects building government major of delivery and planning the Leads 5: Service

Service 4: Leads the planning, delivery, management and maintenance of government buildings, projects and office accommodation accommodation office and projects buildings, government of maintenance and management delivery, planning, the Leads 4: Service

Service 3: Corporate services to client agencies client to services Corporate 3: Service

Service 2: Development and management of Common Use Contract Arrangements, State Fleet leasing and disposal, and providing facilitation service for agency specific contracts contracts specific agency for service facilitation providing and disposal, and leasing Fleet State Arrangements, Contract Use Common of management and Development 2: Service

administration subsidies and grants and collection, and assessment Revenue 1: Service

The Schedule of Income and Expenses by Service should be read in conjunction with the accompanying notes. notes. accompanying the with conjunction in read be should Service by Expenses and Income of Schedule The

SURPLUS/(DEFICIT) FOR THE PERIOD THE FOR SURPLUS/(DEFICIT) (20,205) 35,368 46 475 (37,840) 12,074 336 - 18,746 19,468 (1,493) 3,351

Total income from State Government State from income Total 164,517 168,003 5,005 4,679 68,015 63,019 6,168 6,019 27,569 34,901 57,760 59,385

Royalties for Regions Fund Regions for Royalties 106 91 - - 106 91 ------

Services received free of charge of free received Services 13,511 13,512 171 291 542 436 6 - 50 60 12,742 12,725

Service appropriation Service 150,900 154,400 4,834 4,388 67,367 62,492 6,162 6,019 27,519 34,841 45,018 46,660

INCOME FROM STATE GOVT STATE FROM INCOME

NET COST OF SERVICES OF COST NET 184,722 132,635 4,959 4,204 105,855 50,945 5,832 6,019 8,823 15,433 59,253 56,034

from State Government State from 1,193,110 1,135,198 176,881 145,226 945,203 921,226 735 345 67,259 64,373 3,032 4,028

income than other income Total

Gain from revaluation from Gain - 12,465 - - - 12,465 ------

Gain on disposal of non-current assets non-current of disposal on Gain 2,179 1,859 ------2,179 1,859 - -

Other revenue Other 6,566 4,486 43 21 3,499 970 735 345 2,012 2,432 277 718

Interest revenue Interest 298 310 ------298 310 - -

Commonwealth grants and contributions and grants Commonwealth , 5 8 7,0 6,596 - - 6,993 6,502 - - - - 92 94

User charges and fees and charges User 1,176,982 1,109,482 176,838 145,205 934,711 901,289 - - 62,770 59,772 2,663 3,216

Income

Total cost of services of cost Total 1,377,832 1,267,833 181,840 149,430 1,051,058 972,171 6,567 6,364 76,082 79,806 62,285 60,062

Other expenses Other 39,775 1,082 56 55 38,890 528 218 63 233 211 378 225

Loss on disposal of non-current assets non-current of disposal on Loss 17 444 - 12 17 102 - 77 - 59 - 194

Grants and subsidies and Grants 578 528 - - 135 116 1 1 441 410 1 1

Accommodation expenses Accommodation 40,562 46,230 582 354 33,525 40,034 380 444 1,984 1,796 4,091 3,602

Finance costs Finance ,80 7,78 62 7,3 - - 6,842 6,990 - - 938 372 - -

Depreciation and amortisation expense amortisation and Depreciation 66,007 68,159 79 82 23,054 24,446 211 123 39,247 39,135 3,416 4,373

Supplies and services and Supplies ,0, 9 0 1,107,8 1,039,189 53 177,4 146,113 898,055 57,254 8 2,647 2,718 9,913 14,850 19,741 18,254

Employee benefits expense benefits Employee 33,413 34,658 22,973 23,326 2,938 3,110 42,701 50,540 2,814 104,839 3,670 115,304

(

Expenses

COST OF SERVICES OF COST

($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Service 1 Service Service 2 Service Service 3 Service Service 4 Service Service 5 Service Total

For the year ended 30 June 2019 June 30 ended year the For

service by expenses and income of Schedule 2.2 Department of Finance Annual | 74 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 9 47 46 228 2018 2018 2018 6,782 8,876 2,380 6,496 4,809 4,818 8,876 17,015 15,042 ($000) ($000) ($000) 26,165 21,824 31,030 26,212 9 47 36 163 2019 2019 2019 6,126 9,644 4,944 6,595 3,085 9,680 4,953 14,666 ($000) ($000) ($000) 15,848 20,792 25,738 30,691 25,691 Department of Finance Annual | 77 Report 2018-19 Unconditional long service leave provisions are classified as current liabilities as the the as liabilities current as classified are service provisions long leave Unconditional Classified as current thereas is no unconditional to deferright settlementforat least (c) (d) (d) (b) (b) (a) The provision for annual leave is calculated the at present value expected of be payments made to in relation to services provided employees by the reporting up to date. serviceLong liabilities: leave Department does an have unconditional not right defer settlement to the liability of months after least the for at 12 end the reporting of period. the because liabilities non-current as classified are service provisions long conditional leave and Pre-conditional Department has an unconditional right defer the settlement to the liability of until the employee has completed the service. of years requisite Assessments indicate that actual settlement the liabilities of is expected occur to as follows: More than 12 months after the endMore the reporting than of 12 period Within 12 months the end of the reporting of Within 12 period months after the endMore the reporting than of 12 period months the end of the reporting of Within 12 period Annual leave liabilities: Annual leave months after the end the reporting of 12 period. Assessments indicate that actual settlement the liabilities of is expected occur to as follows:

Total employee related provisions related employee Total Long service leave Total current employee related provisions related employee current Total Current Total non-current employee related provisions related employee non-current Total Employee-benefits provisions Employee-benefits Annual leave provisions Other on-costs Employment provisions Employee-benefits Long service leave provisions Other on-costs Employment Purchased leave Purchased Non-current Deferred salary scheme (b) (a) 3.1(b) Employee related provisions related Employee 3.1(b) Provision is made forbenefits accruingto employees respectin wagesof and salaries, annual leave and long service leave for servicesrendered the reporting up to and date recorded as an expense during the period the services are delivered. 17 578 2018 2018 6,708 10,525 31,030 98,071 ($000) ($000) 115,304 115,304 1,188,146 . ) 104 528 444 2019 2019 9,890 ($000) ($000) 30,691 94,845 104,839 104,839 1,086,501 3.4 3.3 3.2 3.1(a) 3.1(b) Notes (c) Employee expenses include all employment costs related to including wages and salaries, Payable when Payable employment is terminated before normal or retirement when date, an employee (b) (a) The amount recognised in profit or losstheof Statementof Comprehensive Income comprises employer

The total termination benefits gross payout relatedwas$136,263, forwith 2019 to leave$31,847 entitlements (Refer 3.1(b) to Note Adjusted Wages and 2018 salaries, Long service leave, Annual leave and Other related expenses as Wages and Salaries. Wages and 2018 salaries$68,000 adjusted recognise to by Doubtful debts expense for 2017-18. Defined contribution plans includeWest State Superannuation Scheme (WSS), Gold State Superannuation Scheme (GSS), GovernmentSuperannuation Employees Board Schemes (GESBs) and other eligible funds.

Other expenditure Other

Loss on disposal non-current of assets Superannuation – defined contribution plans contribution defined – Superannuation

Total employee benefits expenses benefits employee Total Termination benefits Termination (a)  (b) 

3.1(a) Employee benefits3.1(a) expense salaries and Wages Employee related provisions related Employee

Grants and subsidiesGrants Employee benefits expenses benefits Employee

(c)  (c) employees vary according to commencement and implementation dates. implementation commencement and to vary according employees accordance with legislative requirements. Eligibility criteria for membership in particular schemes for public sector membership sector particular in public for schemes criteria Eligibility for requirements. legislative with accordance The GESB and otherfund providers administer public sector superannuation arrangements in Western Australia in All other GSS obligations are funded concurrent by contributions made the Department by the GESB. to transfer benefitsattributable to members whotransferred Pensionthefrom Treasurer. Scheme, are assumedtheby pay future benefits relating to its employees. The Liabilities for the unfunded Pension Scheme and the unfunded GSS GSS unfunded the Scheme and Pension unfunded the for Liabilities The employees. its to relating benefits future pay The Department does recognise not any defined benefit liabilities because it has no legal or constructive obligation to superannuation liability. (defined contributions) theby made Departmentextinguishesto GESB the Department’s obligationstheto related reporting. a defined is It however contribution planfor agency purposes becausethe concurrent contributions GSS (concurrent contributions) is a defined benefit scheme for the purposes of employees and whole-of-government back into the Consolidatedback into Account the GESB. by employer contribution the Government paid to Employees Superannuation in Board respect (GESB) the GSS of is paid Superannuation: contributions the GSS paid (concurrent to the or GESBs, the WSS, other contributions), superannuation funds. The redundancy. Benefitsredundancy. 12 months fallingafter thedue theof reportingthanmoreend period are discountedto present value. plan without possibility withdrawal of or providing termination benefits resultas a of offer an to madeencourage voluntary Termination benefits: Termination Department is demonstrably committed terminating to the employment current of employees according a detailed to formal fringe benefits tax, and leave entitlements. tax, leave and benefits fringe accepts an offer benefits of Terminationexchange in terminationforthe of benefits employment. are recognised when the Wages and salaries: and Wages

expenses incurred the Department by in achieving its objectives and the relevant are: notes policies that are relevant for an understanding the items of recognised in the financial statements. The primary This section provides additional information about the how Department’s funding is applied and the accounting Expenses incurred in the delivery of services 3.funding our of Use Department of Finance Annual | 76 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - - - 9 17 17 129 578 440 2018 2018 ($000) ($000) - 8 111 213 126 105 409 528 444 2019 2019 ($000) ($000) Department of Finance Annual | 79 Report 2018-19 Computer equipment Computer Building Office fitout softwareComputer assets non-current of disposal on loss Total Recurrent Sponsorship Subsidy Community and social servicesCommunity social and Total grants and subsidies and grants Total 3.2 Grants and subsidies Transactions in whichTransactions the Department provides goods, services, assets extinguishes (or a liability) or labour another to party without receiving approximately equal value Grants in return can are categorised either be as ‘Grant expenses’. operating or capital in nature. Grants can be paid as general purpose grants which grants that are refer subject not to conditions to regarding their be may they paid Alternatively, use. as specific purpose grants which paidare for a particular purpose have and/or use. their regarding attached conditions Grants and other transfers third parties to than contribution (other owners) are recognised to as an expense in the reporting period in which are they paid or They payable. include transactions such grants, subsidies, as: personal benefit payments made in to individuals,cash other transfer paymentsto public made sector agencies, local community and groups. schools, non-government government, non-current disposal of on Loss 3.3 assets 11 61 56 (16) 120 108 228 2018 2018 ($000) ($000) 9 (9) 79 56 84 56 163 2019 2019 ($000) ($000) (apart from the unwinding the discount of (finance cost))’ Classified as current where there is no unconditional right to defer settlement settlement defer to right unconditional no is there where current as Classified The settlement annual of and long service leave liabilities gives the rise payment to of

Within 12 months the end of the reporting of Within 12 period Carrying amount start at period of recognised of) provisions Additional/(reversals Payments/other sacrifices of economic benefits economic of sacrifices Payments/other Carrying amount at end of period and are included not as part Therelated liability the Department’s of benefits ‘employee expense’. is included in provision’. on-costs ‘Employment for at least 12 months after the leastfor at end the reporting of 12 period. Actual settlement the liabilities of is expected occur to as follows: employment on-costs including compensation workers’ insurance. The provision is the present value expected of future payments. Employment on-costs, including compensation workers’ insurance, are employee not benefits and recognised are separately as liabilities and expenses when the employment which to has relate they occurred. Employment on- costs are included as part ‘Other of expenses, Note 3.4 Deferred salary liabilities: scheme More than 12 months after the endMore the reporting than of 12 period Employment on-costs provision on-costs Employment Employment on-costs:

benefits expense. benefits Any gain or loss following revaluation the present of value long of service leave liabilities is recognised as employee Changes in these estimations and assumptions may impact on the carrying amount of the long service provision. long the carrying leave the of on amount impact may assumptions and estimations these Changes in – Expected future payments – Employee retention rates; and– Employee rates; retention – Discount rates – Expected future salary rates Several estimates and assumptions are used in calculating the Department’s long service leave provision. These include: next financial year. next financial that have a significantthat have riskof causing a material adjustmenttheto carrying amountof assets and liabilities withinthe Key estimates andKey assumptions concerning the future are based on historical experience and various other factors Key sourcesKey of estimation uncertainty – long service leave

(d) (c) as possible, the estimated future cash outflows. yields the at end the reporting of period on national government bonds with maturity terms to as closely that match, are estimated using the remuneration expected apply rate to the at settlement, time of and discounted using market future be payments made to in services relation to provided employees by the reporting up to These date. payments the amounts within 12 months. Thethe present amounts within value 12 is measured taking account into the present value expected of The provision for long service leave are calculated present at value as the Department does expect not wholly to settle Department of Finance Annual | 78 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 81 Report 2018-19 is recognised from 2018-19 as the movement in the allowance for expected credit is recognised from 2018-19 Operating lease payments are recognised on a straight line basis the lease over term, relates to the decline relates to in fair value the Department’s of land and buildings. Supplies and services are recognised as an expense in the reporting period in which are they includes workers’ compensation insurance and other employment on-costs. The on-costs liability The on-costs on-costs. employment other and insurance compensation workers’ includes relates to purchases relates to equipment of less than $5,000 in value. ‘Movement in the allowance for impairment trade receivables’. of is predominately for various expenses incurred to meet the Department’s operational needs. operational Department’s the meet to incurred expenses various for predominately is are expenses the Office paid to theof Auditor Generalfor audit services. Other operating expenses generally represent running the costs day-to-day incurred in normal operations. losses. The allowance for expected credit losses trade receivables of is measured the at lifetime expected credit losses each at reportingThe Department date. has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specifictheto debtors andthe economic environment.Please noterefer to 6.1.1 on-cost Employee associated with the recognition annual of and Employee long related service leave liabilities is included 3.1(b) Note at provisions. Superannuation contributions accrued as part the provision of for leave are employee benefits and are not on-costs. employment in included Audit fees decrementsRevaluation Miscellaneous Supplies and services: incurred. The carrying amounts any materials of heldfor distribution are expensed when the materials are distributed. expenses: Accommodation whereexcept another systematic basis is more representative the time of pattern the benefits of derived thefrom use the leasedof asset. Repairs, maintenance, cleaning and security costs are recognised as expenses as incurred. Other: equipmentMinor expense losses credit Expected - 18 71 324 378 256 587 469 9,116 2018 1,164 2,753 1,369 2,406 5,543 ($000) 28,693 44,630 38,465 39,775 40,562 1,051,904 1,188,146 1,107,809 - - - 10 413 172 135 487 349 693 304 2019 7,762 2,074 5,611 2,029 1,082 42,128 ($000) 36,394 46,230 9 87,9 4 0 1,039,189 1,086,501 ‘Employee benefits expense’. benefits ‘Employee (b) (c) (d) (c) ‘Employee related provisions’. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not

(a)

included in employment on-costs. See also Note 3.1(a) Includes workers’ compensation insurance. The on-costs liability associated with the recognition of annual 3.1(b) andNote long service leave liability is included in $71,000 of Doubtful$71,000 debts expense with was recognised corresponding in FY adjustments 2017-18 against Employee benefits expense ($68,000) and ($3,000). Miscellaneous Total supplies and services expenses services and supplies Total

Consultants and contractors Communications Consumables

Managed contracts Supplies and services and Supplies

Repairs and maintenance Travel Legal costs Other Employment on-costs Employment

Audit fees Audit Revaluation decrements Revaluation Miscellaneous Expected credit losses expense losses credit Expected  (c) (d)  (b) Expected credit losses were not required be to measured in 2017-18. Repairs and maintenance buildings Repairs and maintenance Commission of Western Australia. Western Commission of expenses Accommodation (a) During the period the Department paid $852,692) $828,499 forinsurance (2018: the to Insurance Minor equipment Minor Cleaning and security Lease rentals accommodation expenses Total Other Doubtful debts expense

Total other expenditure other Total Total other expenses other Total

Department of Finance Annual | 80 Report 2018-19 3.4 Other expenditure Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 285 2018 41,192 53,070 ($000) 267,78 0 814,655 1,176,982 529 2019 38,134 51,885 ($000) 747,371 271,563 1,109,482 Department of Finance Annual | 83 Report 2018-19

proceeds from fees and charges; sale goods; of Commonwealth specific purpose grants and contributions; and grants purpose specific Commonwealth rental revenue recognised in accordance with lease agreements, with Government entered State into agencies, statutory authorities and Government other State entities and vehicle bailment revenue held under bailment rights; provision contract of services and rental income sufficientto cover outgoings paidfor governmentowned and buildings; other departmental revenue.

Sales Vehicle fleet lease rental fleet lease Vehicle Other Rents for Government office Government accommodation for Rents Managed works building 4.2User charges and fees Revenue is recognised and measured the at fair value consideration of received or receivable. Revenue is recognised follows: as activities business major the for Sale goods of Revenue is recognised from the sale goods of and disposal other assets of when the significant risks of andrewards ownership transfer the purchaser to andcan be measured reliably. Rents for Government office accommodation Lease income from operating leases where the Department is a lessor is recognised as income line on a straight- basis the lease over term. services of Provision Revenue is recognised reference the by stage completion of to the transaction. of Vehicle fleet lease rentals Rental revenue is recognised in accordance with lease agreements with Government entered State into agencies, Statutory Authorities and Government other State entities. bailmentVehicle revenues Revenue is recognised on receipt sale of proceeds vehicles of held under bailment rights. appropriationNet determination make a determination may The providing Treasurer for prescribed receipts be retained to for services under the control the Department. of Budget In accordance with the most recent determination, as quantified2018-19 thein from the following: million in 2018) ($1,193 million in 2019 Statements, the Department retained $1,135 (a) (b) (c) (d) (e) (f) Grants, donations, gifts non-reciprocal and other contributions Revenue is recognised fair at value when the Department obtains control the assets over comprising the received. is cash when usually contributions, Other non-reciprocal contributions that are contributions not owners by are recognised their at fair value. Contributions services of are only recognised when a fair value can be reliably determined and the services would be donated. not if purchased 2 24 134 106 106 1,747 2018 2018 2,179 7,0 8 5 6,566 11,604 ($000) ($000) 13,511 164,517 150,900 164,517 150,900 1,176,982 -

91 26 91 133 2019 2019 1,972 4,486 6,596 11,381 14,324 ($000) ($000) 13,512 154,400 168,003 154,400 168,003 1,109,482 4.1 4.4 4.5 4.3 4.2 Notes . Appropriation revenue comprises the following: the comprises revenue Appropriation . )

(c) (b):

) comprises the following (a)

Services received free of charge or for nominal cost that the Department would otherwise purchase if not donated, arethe recognised services as where income they at can the fair be reliably value of measured. A corresponding expense is recognised for services received. – Cash component; and – A receivable (asset). The receivable (holding account 6.2 - note – The budgeted depreciation expense for the year; and – Any agreed increase in leave liabilities during the year. Service Appropriations are recognised as revenues at fair value in the period in which the Department gains controlgains of the control appropriated of appropriated funds. funds The Department at the time those funds are deposited in the bank account or credited the to ‘Amounts receivable for services’account) held (holding at Treasury. Service appropriations fund the net cost of services delivered (as set out in note 2.2 The Regional Infrastructure and Headworks Account is a sub-fund within the over-arching ‘Royalties for Regions The Fund’. funds are usedallowance fund to district payments for eligible regional public sector employees and are recognised as revenue when the Department gains control on receipt of the funds.

Department the Premier of and Cabinet

Development Account Headworks and Regional Infrastructure Department Primary of Industries and Regional services received Total Fund: Regions for Royalties

Department of Treasury of Department Total income from State Government State from income Total

Other revenue User charges and fees

Landgate Department Justice of (b)   (c) (a) 

Service appropriation Appropriation received during the period: the during received Appropriation

4.1 Income from State Income Government 4.1 Gains government agencies during the period agencies the during government Total appropriation received Total Services received free charge of from other State Total RoyaltiesTotal for Regions Funds

Income from Government State Commonwealth grants and contributions and grants Commonwealth Department of Finance Annual | 82 Report 2018-19

by the Departmentby and the relevant are: notes accounting policy that govern notes the recognition and measurement this funding. of The primary income received This section provides additional information about the how Department obtains its funding and the relevant How we obtain we How our funding 4. Our funding sources Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 2018 ($000) 34,463 6 87,0 9 4 721,557 2019 ($000) 36,488 691,918 728,406 Department of Finance Annual | 85 Report 2018-19 5.1 5.2 Notes Intangibles assets key Total Property, plant, equipment and vehicles and equipment plant, Property, 5. Key assets Key 5. Assets Department the economic benefitservice or for utilises potential This section includes information regarding assets the key the Department utilises gain economic to benefits or provide service The potential. section accounting sets out the key both policies and financial information aboutthe performance these of assets. - 96 2018 2018 2018 2,152 3,774 3,311 4,318 2,179 2,179 7,085 6,566 36,815 ($000) ($000) ($000) 38,994

75

2019 2019 2019 1,875 5,016 1,580 2,536 1,859 4,486 6,596 12,465 ($000) ($000) ($000) 28,497 30,356 14,324 (a)

Capital grant Recurrent grant Recoups

Government vehicle schemes vehicle Government Other (a) Relates mainly refunds to from suppliers and recovery of corporate services provided other to agencies.

Net gain/(loss) Net gain Revaluation other income Total Motor vehicles Motor Carrying disposed assets non-current of amount Motor vehicles Motor Net proceeds from disposal non-current of assets

comprehensive income (from the proceeds sale). of the carrying amount the asset of and related selling expenses. Gains and losses are recognised in the statement of Gains and losses on the disposal non-current of assets are presented deducting by from the proceeds on disposal non-current assets and some revaluations non-current of assets. Realised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of

Department of Finance Annual | 84 Report 2018-19 4.5 Gains

4.3 Commonwealth grants contributions and 4.4 Other revenue Other 4.4 have beenhave purchased if donated. not Contributions services of are only recognised when a fair value can be reliably determined and the services would when its fair value can be reliably measured. For non-reciprocal grants, the Department recognises revenue when the grant is receivable its at fair valueas and Cocos Keeling islands, the Department also receives funds administer to taxes on Indian Ocean Territories. Besides Commonwealth funding for undertaking agreed maintenance and outgoings for buildings on Christmas and Christmas undertaking on buildings Besides funding for for Commonwealth and outgoings maintenance agreed Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 87 Report 2018-19

The most significant assumptions and judgements in estimating fair value fair estimating in judgements and assumptions significant The most Fair value where market-based evidence is available: The fair value land of and buildings is determined on the basis current of market values determined reference by to recent market transactions. When buildings are revalued reference recent by to market transactions, the accumulated depreciation is eliminated against the gross carrying amount the asset of and the net amount the revalued restated to amount. Fair value in the absence market-based evidence: of Buildings are specialised or where land is restricted: Fair value land of and buildings is determined on the basis of use. existing Existing use buildings: Fair value is determined reference the by cost replacing of to the remaining future economic benefits theembodied currentreplacement i.e. thein asset, cost. Wherethe fairvalue of buildings is determined on the current replacement cost basis, the gross carrying amount is adjusted in a manner that is consistent with the revaluation the carrying of amount the asset of and the accumulateddepreciation equal is adjusted to the difference between the gross carrying amount and the carrying amount the asset. of Restricted use land: Fair value is determined comparison by with market evidence for land with similar approximate utility (high restricted use land) or market value comparable of unrestricted land (low restricted use land).

Initial recognitionInitial property, of Items plantand equipment, costing $5,000 or more are measured initially Where cost. at an asset is acquired for no or nominal the cost cost, is valued its at fair acquisition. value of the at date property, of Items plant and equipment costing less than $5,000 are immediately expensed direct the Statement Comprehensive to of Income than where (other formthey part a group similar of of items which are significanttotal). in Assets transferred as part a machinery of government of change are transferred their at fair value. The cost a leasehold of improvement is capitalised and depreciated the shorter over the remainingof the term lease of or improvement. leasehold the of life useful estimated the The initial cost for a non-financial physical asset under a finance lease is measured at amounts to theequal fair value of the present value the minimum of ifthe lower, leased lease payments, asset each or, determined the at inception the of lease. Subsequent measurement Subsequent initial to recognition an of asset, the revaluation model is used for the measurement of: and– land; buildings – Land is carried fair at value. Buildings are carried fair at value less accumulated depreciation and accumulated impairment losses. All other property, plant and equipment are historical at stated cost less accumulated depreciation and accumulated impairment losses. Land and buildings are independently valued annually the Western Australian by Land Information Authority (Valuations and Property Analytics) and recognised annually ensure to that the carrying amount does differ not materially from the fair value theasset’s at end the reporting of period. Land the Western Australian by and buildings Land were revalued Information as 1 July at Authority 2018 (Valuations and Property Analytics). The valuations were performed during and recognised the year ended 30 at 30 June June 2019 In undertaking (2018: the revaluation, fair2019. value was determined reference market by values to for land: $59,057,000 For the remaining balance, fair valuebuildings of was $89,315,000). (2018: and buildings: $92,130,000 $54,185,000) determined on the basis current of replacement cost and fair value land of wasdetermined on the basis comparison of with market evidence for land with level low utility (high restricted use land). Revaluation model: (a) (b) Significant assumptions judgements: and are made in assessing whether apply to the existing use basis assets and to in determining estimated economic life. Professional judgement the valuer by is required where the evidence does provide not a clear distinction between market type assets and existing use assets.

Metropolitan Tafe for $19,339. Two items of Office Fitout (Network Equipment) have been transferred to South Metropolitan Tafe for $12,558. for Tafe Metropolitan South to transferred been have Equipment) (Network Fitout Office of items Two $19,339. for Tafe Metropolitan

transferred to Department of the Premier and Cabinet for $11,721. Two items of Office Equipment have been transferred to Department of Treasury for $2,582. Six items of Computer Equipment have been transferred to North North to transferred been have Equipment Computer of items Six $2,582. for Treasury of Department to transferred been have Equipment Office of items Two $11,721. for Cabinet and Premier the of Department to transferred

Work in Progress was transferred to Leasehold Improvements for $30,881,435 and to Office Fitout for $3,689,140 and to Buildings for $752,872. During the financial year, two items of Office Fitout (Network Equipment) have been been have Equipment) (Network Fitout Office of items two year, financial the During $752,872. for Buildings to and $3,689,140 for Fitout Office to and $30,881,435 for Improvements Leasehold to transferred was Progress in Work  (a)

Accumulated impairment loss impairment Accumulated ------

Accumulated depreciation Accumulated (242,960) - (99,948) (89,666) (2,977) (233) 9) (47,10 (3,027) -

Gross carrying amount carrying Gross 934,878 2,367 329,697 180,466 2,993 339 150,591 131,231 4 137,19

Carrying amount at 30 June 2019 June 30 at amount Carrying 691,918 2,367 229,749 90,800 16 106 103,482 128,204 137,194

Depreciation (62,279) - (37,670) (11,396) (131) (53) (9,850) (3,179) -

Revaluations 12,465 ------6,500 5,965

Other disposals Other (28,814) - (28,497) (104) (213) - - - -

Transfers (377) (35,323) (330) 3,664 (19) (3) 30,881 753 -

(a)

Additions 83,829 23,038 60,780 11 - - - - -

Carrying amount at start of period of start at amount Carrying 687,094 14,652 235,466 98,625 379 162 82,451 124,130 131,229

Accumulated impairment loss impairment Accumulated ------

Accumulated depreciation Accumulated (223,849) - (100,035) (78,487) (5,472) (214) (37,259) (2,382) -

Gross carrying amounts carrying Gross 910,943 14,652 335,501 177,112 5,851 376 119,710 126,512 131,229

1 July 2018 July 1

Year ended 30 June 2019 June 30 ended Year

for $8,274. During the year, one vehicle was transferred to finance lease for the Department of Health $64,000. Health of Department the for lease finance to transferred was vehicle one year, the During $8,274. for

transferred two items of Office Equipment to Department of Treasury for $9,405. One Computing Equipment was transferred from Department of Treasury for $1,124. One Computing Equipment was reclassed to Office Equipment Equipment Office to reclassed was Equipment Computing One $1,124. for Treasury of Department from transferred was Equipment Computing One $9,405. for Treasury of Department to Equipment Office of items two transferred

(Network Equipment) have been transferred to Department of Transport for $155,246. During the financial year, three items of Office Equipment were transferred from Department of Treasury for $10,339. The Department also also Department The $10,339. for Treasury of Department from transferred were Equipment Office of items three year, financial the During $155,246. for Transport of Department to transferred been have Equipment) (Network

Government, Sport and Cultural Industries for $285,000, $6,432,266 and $5,362,209 respectively. Burswood Stadium Land was transferred to Western Australian Sports Centre Trust for $480,000. 26 items of Office Fitout Fitout Office of items 26 $480,000. for Trust Centre Sports Australian Western to transferred was Land Stadium Burswood respectively. $5,362,209 and $6,432,266 $285,000, for Industries Cultural and Sport Government,

Work in Progress was transferred to Leasehold Improvements for $12,607,845 and to Office Fitout for $976,128 and to Building for $25,897,030. Sunset Heritage Land, Building and Fitout were transferred to Department of Local Local of Department to transferred were Fitout and Building Land, Heritage Sunset $25,897,030. for Building to and $976,128 for Fitout Office to and $12,607,845 for Improvements Leasehold to transferred was Progress in Work  (a)

Carrying amount at 30 June 2018 June 30 at amount Carrying 687,094 14,652 235,466 98,625 379 162 82,451 124,130 131,229

Depreciation (61,639) - (38,159) (11,774) (366) (59) 39) 7,9 ( (3,342) -

Revaluations (30,049) (8,416) (38,465) ------

Other disposals Other (17) - (36,831) - (36,814) - - - -

Transfers (12,776) (39,481) (64) (4,542) (7) 9 12,608 19,466 (765)

(a)

Additions 116,431 39,245 5 77,14 - - 41 - - -

Carrying amount at start of period of start at amount Carrying 720,374 14,888 233,358 114,941 752 171 77,782 138,072 140,410

Accumulated impairment loss impairment Accumulated ------

Accumulated depreciation Accumulated (3,552) - (29,320) (167) (5,086) 6,30) (67,73 (109,736) (215,591) -

Gross carrying amounts carrying Gross 140,410 141,624 107,102 338 5,838 182,671 343,094 14,888 935,965

1 July 2017 July 1

Year ended 30 June 2018 June 30 ended Year ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Buildings Land improvements equipment equipment progress vehicles fitout Total

Leasehold

Office

Computer

Office Work in in Work Motor

5.1 Property, plant, equipment and vehicles and equipment plant, Property, 5.1

Department of Finance Annual | 86 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - - (126) 7,025 Total Total 8,031 (5,880) ($000) ($000) (4,367) 31,805 34,463 34,463 36,488 207,470 214,495 (175,665) (180,032) - - - - - 6,786 8,031 8,903 11,043 11,882 (5,947) ($000) ($000) 11,043 11,882 11,882 (11,010) Work in Work in Progress Progress - 239 Department of Finance Annual | 89 Report 2018-19 (126) 5,947 11,010 (4,367) (5,880) ($000) ($000) 27,585 20,762 22,581 22,581 182,645 188,831 (161,883) (166,250) Software Software Computer Computer Computer Computer ------13,782 13,782 ($000) ($000) (13,782) (13,782) Licences Licences Carrying amount at 30 June 2018 Amortisation expense Carrying amount at start of period Additions Transfers to computer to softwareTransfers and licence Transfers to computer to softwareTransfers and licence Other disposal Amortisation expense Accumulated amortisation Accumulated Carrying amount at start of period Additions Accumulated amortisation Accumulated Carrying amount at 30 June 2019 1 July 2017 carryingGross amount 1 July 2018 carryingGross amount Year ended 30Year June 2018 Year ended 30Year June 2019 Impairment Non-financial assets, includingof plantitems and equipment,testedfor impairment are wheneverthere is an indication that the asset be may impaired. Where thereis an indication impairment, of the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written the recoverable down to amount and an impairment loss is recognised. Where an asset measured cost at is written its recoverable down to amount, an impairment loss is recognised loss. or profit through Where a previously revalued asset is written its recoverable downto amount, the loss is recognised as a revaluation income. comprehensive other through decrement the recoverable agency, amountAsregularly theof Department revalued specialised is a not-for-profit assets is beanticipated materially to the same as fair value. thereIf is an indication that there has been a reversal in impairment, the carrying amount shall be increased its to recoverable amount. this reversal However should increase not carrying the asset’s amount what above would have been determined, depreciation net of or amortisation, if no impairment loss had been recognised in prior years. The risk impairment of is generally circumstances limited to where depreciation an asset’s is materially understated, where the replacement cost is falling or where there is a significant change in useful Eachlife. relevant classof assets or consumption of level the reflects depreciation/amortisation accumulated the verify that to annually reviewed is futureexpiration economic the asset’s of benefits evaluate impairmentto any and risk from decliningreplacement costs. assets Intangible 5.2 59 366 2018 7,9 3 9 3,342 11,774 38,159 ($000) 61,639 53 131 2019 3,179 9,850 37,670 11,396 ($000) 62,279 3 to 10 years 10 3 to years or 25 remaining3 to lease whicheverterm, is lower 6 years6 months to Useful life: years 40 years30 to years 100 years 15 to 10 3 - 5 years

for guidance in the relation impairment to assessment that has been performed for intangible

(a)

Total depreciation for the period the for depreciation Total

Leasehold improvements Leasehold Office equipment Buildings

Vehicles Computer equipment Computer

improvements Office fitout and leasehold vehicles Motor (a) Software that is integral the to operation of related hardware.

Asset Buildings assets Heritage equipment and Plant Office equipment Software

Office fitout Depreciation Department of Finance Annual | 88 Report 2018-19

assets because their service in any material potential has not, sense, been consumed during the reporting period. Land which is considered an indefinite have is depreciated.not to life, Depreciationrecognised is not respectin theseof Office fitout and leasehold improvementsare depreciatedover the shorter of the lease term and their useful lives. period, and adjustments are made where appropriate. The estimated useful lives, residual values and depreciation method are reviewed the at end each of annual reporting

value, over its estimated over value, useful Estimated useful life. lives for each class depreciable of assets are in the table below: Depreciation is calculated on a straight line less value, basis, that allocate rates at the asset’s any estimated residual this rule include assets held for sale, land and investment properties. Finite useful lives Finite estimated useful lives in a manner that reflectsthe consumptiontheirof future economic benefits.exceptions to The assets. All property, plant, equipment and vehicles having a limited useful life are systematically depreciated their over Please note refer to 5.2 All surplus assets at 30 June 2019 have eitherAll have surplus been classified assets 30 at June 2019 as assets heldfor sale beenor have written-off. As at 30 June 2019 there were no indications impairment of As 30 at June property, 2019 plant,to equipment and vehicles.

Charge for the period 5.1.1 Depreciation impairment and 5.1.1 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - 61 535 534 535 2018 2018 1,413 7, 220 1,849 1,993 63,121 56,729 ($000) ($000) 23,058 33,654 112,770 132,921 148,020 523,863 132,921 132,386 - - (8) 53 535 544 2019 2019 7,815 2,570 3,557 24,412 59,679 ($000) ($000) 40,327 36,607 94,226 114,528 193,452 584,245 114,528 114,528 Department of Finance Annual | 91 Report 2018-19 6.1 6.7 6.4 6.6 6.5 6.3 6.2 6.1.1 Notes (a) (a) (d) (a) (b) (c) disclosures. Adjusted Receivables 2018 as receivables, Trade Allowance for impairment of trade receivables and Miscellaneous receivableInstruments meet to AASB 9 Financial Relates funds to held in trust by the Department’s corporate property manager for management of rental House. Stephenson Gordon services of occupation Government’s andAustralia incidental costs relating Western to Contract costs incurred but not yet billed clients. to Adjusted Receivables 2018 as Miscellaneous receivable for consistency with footnote (a). Accrued revenue Accrued GST receivable GST Interest receivable Trust account Trust Lease incentives Other provisions Other Payables Amounts receivable for services for receivable Account) Amounts (Holding Other assets Total current Total 6.1 Receivables 6.1 Trade receivables Trade (a) (b) (c) (d) Non-current receivable Miscellaneous Underbillings Allowance for impairment trade receivables of Miscellaneous receivable Miscellaneous Other liabilities Other Receivables Total non-current Total receivablesTotal 6. Other6. assets and liabilities This section sets out those assets and liabilities that arose from the Department’s controlled operations and includes otherassets utilised for economic benefits and liabilities incurred during normal operations. Trade receivablesTrade are recognised original at invoice amount less any allowances for uncollectible amounts is impairment).(that The carrying amount net trade of receivables is equivalent fair value to as it is due for settlement within 30 days. 2018 4,367 4,367 ($000) 2019 5,880 5,880 ($000) . 3 to 13 years 13 3 to years 10 up to Useful life: years (a)

the technical feasibility completing of the intangible asset so that it will be available for use or sale; completean intention the intangible to asset, and use or sell it; the ability use or sell to the intangibleasset; the intangible asset will generate probable future economic benefit; the availability adequate of technical, financial otherand resources to completethe developmentto use andor sell the intangible asset; and the ability measure to reliably the expenditure attributable the intangible to asset during its development.

Computer softwareComputer amortisation period the for Total Licences (a) Software that is not integral the to operation of related hardware.

Intangible asset Intangible Computer softwareComputer

The estimated useful lives for each class intangible of asset are: residual value. Estimated useful lives are reviewed annually. over its estimatedover useful All life. intangible assets controlled the Department by a finite useful have life zeroand Amortisation finite life of intangible assets is calculated on a straight line valuebasis that at rates allocatethe asset’s end the reporting of period there were no intangible assets available yet not for use. The Department held no goodwill or intangible assets with an indefinite useful life duringthe reporting period.theAt As at 30 June 2019 there were no indications impairment of As 30 at June intangible 2019 to assets. The policy in connection with testing for impairment is outlined in note 5.1.1 Impairment intangible assets of Intangible assets with finite useful livestestedfor impairment are annually or when an indicationof impairment is identified. Licences a finite useful have life and are carriedat cost less accumulated amortisation and accumulated impairment losses. expensed in the year acquisition. of Licences not annot integral part the related of hardware is recognised as an intangible asset. Software costing less than $5,000 is Software that is an integral part the related of hardware is recognised as part the tangible of asset. Software that is Computer software Charge for the period 5.2.1 Amortisation impairment5.2.1 and less any accumulated amortisation and accumulated impairment losses. impairment accumulated and amortisation accumulated less any The cost model is applied for subsequent measurement intangible of assets, requiring the asset be carried to cost at Subsequent measurement (b) (c) (d) (e) (f) Costs incurred in the research phase a project of are immediately expensed. (a) project) is recognised and all the only following of if, if, are demonstrated: An internally generated intangible asset arising from development from the development (or phase an of internal fair acquisition. value of the at date Intangible assets are initially recognised For assets cost. at acquired no at cost or for nominal the cost cost, is their Costs incurred below these thresholds are immediately expensed directly the Statement Comprehensive to of Income. more that comply with the recognition are capitalised. below), criteria noted (as as per AASB 138.57 Acquisitionsintangible of assets costing $5,000 or more and internally generated intangibleassets costing $50,000 or Initial recognitionInitial Department of Finance Annual | 90 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 40 241 440 534 534 534 2018 2018 2,103 ($000) ($000) 56,098 53,848 112,770 112,770 ‘Contingent 9 193 350 544 544 544 2019 2019 1,027 29,753 ($000) ($000) 62,894 94,226 94,226 ‘Reconciliation of cash’) consists consists cash’) of ‘Reconciliation Department of Finance Annual | 93 Report 2018-19 6.5.2 Notes (a) (a) This provision is for the rehabilitation of the Mt Walton East Intractable Waste Disposal Facility site. Billings clients to less contract costs incurred. Accrued expenses Accrued Accrued salariesAccrued Interest – Western Australian Corporation Treasury (WATC) Other Overbillings Total current Total Balance at end of period (a) Current payables Trade (a) Non-current costs Restoration Total non-current Total Balance at end of period 6.5.1 Provision for restoration for Provision 6.5.1 Disposal Waste Intractable East Walton Mt the decommission to obligation constructive The Department legal or a has Facility and for the future site restore land use. when: recognised is restoration for provision A – there is a present obligation as a result intractable of disposal waste activities undertaken; – it is probable that an outflowof economic benefits will be required tosettle the obligation; and – the amount the provision of can be measured reliably. suitable standard a to site the rehabilitating and decommissioning of costs the include obligations future The estimated for future land An use. environmental analysis provide a quantifiable to theof amountestimate required rehabilitateto Calculations financial performedyear. East the Mt Walton intractable disposal waste was obtainedsite for the 2018-19 in assessing the restoration costs provisions incorporates a number estimates. Calculation key of the provision of will note see Please 8.2 available. information up-to-date most the using adjusted and annually conducted be and liabilities’. assets 6.4 Payables Payables are recognised the at amounts payable when the Department becomes obliged make future to payments as a result a purchase of assets of or services. The carrying amount is equivalent fair value to as settlement is generally within 30 days. Accrued salaries represent the amount staff due to but unpaid the at end the reporting of period. Accrued salaries are settled within a fortnight after the reporting period. The Department considers the carrying amount accrued of salaries be equivalentto its fair value. to The accrued salaries suspense account(See restricted cash disclosure in Note 7.5.1 amountsof from paid agency annually, appropriations for salaries suspense a Treasury expense, into account meet to the additional cash outflowfor employee salary payments reportingin periodstheof instead27 normaldays pay with No interest is received26. on this account. The Department does any amount have not the Treasurer. due to 6.5 Other provisions - - - - - 71 (71) 779 2018 2018 2018 5,367 5,367 ($000) ($000) ($000) 23,980 23,980 29,347 29,347 29,347 523,084 523,863 - - 4 4 8 (6) 10 325 806 2019 2019 2019 3,161 7,124 6,799 ($000) ($000) ($000) 26,322 36,607 29,483 583,439 584,245 ‘Credit risk exposure’. risk ‘Credit

(a) (a)

Non-current Other

Balance at end of period Balance at end of period Balance start at period of of trade receivables Reconciliation of changes in the allowance for impairment impairment for allowance the in changes of Reconciliation Current

Remeasurement under AASB 9 under Remeasurement Restated balance start at period of Doubtful debts expense Amounts written off during the period Expected credit losses expense losses credit Expected Balance at end of period

Prepayments Non-current

Prepayments Other Current

Total non-current Total Total current Total

or that part expenditure of made in one accounting period covering a term extending beyond that period. Other non-financial assets include prepayments whichrepresent payments in advancereceiptof of goods or services

6.3 Other assets of the holding accounts). holding the of Amounts receivable for services are considered not be impaired to is there (that is no expected credit loss It isIt restricted in that it can only be used for asset replacement or payment leave liability. of Amounts receivable for services represent the non-cash component of service appropriations. service services of for non-cash component receivable the Amounts appropriations. represent (a) Relates mainly lease to incentives.

6.2 Amounts services receivable for (Holding Account) The Department does hold not any collateral as security orother credit enhancements for trade receivables. the asset inclusive any allowance of for impairment as shown in the table Note at 8.1(c) The maximum exposure credit to risk the at end the reporting of period for trade receivables is the carrying amount of 6.1.1 Movement in the allowance for impairment of trade impairment of for receivables the allowance in Movement 6.1.1 Department of Finance Annual | 92 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 7.1 2018 7.4 7.6 7.5 7.3 7. 2 6,277 5,835 18,078 49,728 ($000) 7.6.1 7.5.1 79,918 23,913 7.6.3 7.6. 2 7.5. 2 56,005 Notes - 2019 5,433 6,054 ($000) 62,151 11,487 50,664 50,664 Department of Finance Annual | 95 Report 2018-19 Capital commitments Capital commitments expenditure Other Finance costs Interest revenue Finance lease receivables Heritage Maintenance Payments Maintenance Heritage Current Corporation Australian Treasury Western current Total Balance at end of period Total non-current Total Non-current Corporation Australian Treasury Western Payments Maintenance Heritage Non-cancellable operating lease commitments lease operating Non-cancellable Borrowings Reconciliation of cash of Reconciliation Commitments Cash and cash equivalents cash and Cash Reconciliation net cost of services of net cash to flows provided by/ activities operating in) (used All loans payable are initially recognised fair at being value, the net proceeds received. Subsequent measurement is at amortised cost using the effective method. interest rate receivables lease Finance 7.2 leases The majority of entities. and agencies Government State Australian Western The Department to leases vehicles are operating leases, the balance are finance leases. balanceAt the existing term of finance date, lease contracts typicallyvaries betweentenyears. to four A contract is subjectof interest a fixed the time at set marketthe rate to contract is established. All contracts containrenewal a option and are secured the underlying by vehicles. Residual values are guaranteed the relevant by contracting agency or the entity. 7. Financing 7. This section sets out the material balances and disclosures associated with the financing and cashflows of the Department. 7.1 Borrowings 7.1 9 525 534 2018 2018 2018 16,771 ($000) ($000) ($000) 23,058 16,771 23,058 23,058 131,249 131,249 148,020 10 534 544 2019 2019 2019 17,18 6 24,412 17,186 ($000) ($000) ($000) 24,412 24,412 176,266 176,266 193,452

(a) (a)

In instances where the lessor has provided incentives for the Department enterto into an operating lease, the Departmentbenefit has recognised of incentives the as a aggregatereduction of rental expense over the leaseterm, on a straight line improvements. leasehold basis. as such lease the Examples of costs of lessor of the lease by assumption incentives or reimbursement the or include up-front cash payments

Balance at end of period

Total non-current Total Movements in provision during the period, are set out below

Total current Total Total current Total Balance at end of period (a)

Lease incentives Non-current

Lease incentives Current

Unearned revenue Additional/(reversals of) provisions recognised of) provisions Additional/(reversals Current

Carryingamount start at period of Restoration costs provision costs Restoration

Carrying amount at end of period 6.5.2 Movements in provision6.5.2 in Movements

6.7 Lease incentives Lease 6.7 6.6 Other6.6 liabilities Department of Finance Annual | 94 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - - 2 (7) 71 64 734 (385) 2018 2018 1,001 1,668 (2,162) 13,511 (2,659) (2,345) 45,791 ($000) ($000) 75,888 66,007 77,625 38,465 (41,437) (68,140) (184,722) - - - 9 2 10 22 (19) 338 (581) (345) 2019 2019 1,076 (1,415) (1,441) 13,512 68,159 (8,265) ($000) ($000) 82,393 83,493 (12,465) (75,138) (132,635) ) Department of Finance Annual | 97 Report 2018-19 8.1(b 4.1 3.4 3.4 3.4 4.5 5.2 Notes , 4.5 Notes 5.1 3.3 (d) (b) (a) (c) (a) (b) (a) (a)(b) Funds held predominantly for undertaking agreed maintenance and outgoings for buildings on Christmas and Cocos Keeling islands. Keeling Cocos and Christmas on buildings for outgoings and undertaking maintenance agreed for predominantly held Funds Funds held in the suspense account for the purpose of meeting the pay in 27th a reporting period that occurs This year. every account 11th is classifiedcurrent as non years. out for 10 of 11 $71,000 of Doubtful$71,000 debts expense with was recognised corresponding in FY adjustments 2017-18 against Employee benefits ($68,000) and Current payables ($3,000). Note that the Australian Taxation Office receivable/payable (ATO) in respect of GST and the receivable/payable in respect of the sale/purchaseassets of arenon-current not included in these items as they do not form part of the reconciling items. This is the net GSTpaid/received cash i.e. transactions This reverses out the GST in receivables and payables.

Unearned revenues – Indian Ocean Territories Trust Fund – Indian Ocean Trust Territories Net cash provided by/(used in) operating activities Net GST receipts/(payments) GST Net Accrued salariesAccrued benefits Employee Balance at end of period Expected credit losses expense losses credit Expected Doubtful debts expense Change in in receivables/payables GST Other current assets liabilities in Increase/(decrease) Current payables (a) (b) Services received free charge of Loss on revaluation decrement Gain from revaluation increment (a) (b) (c) (d) Net gain on disposal property, of plant, vehicles and equipment Net cost services of items Non-cash amortisation expense and Depreciation Cash on hand equivalents cash and cash Restricted Cash bank at – Accrued salaries suspense account (Increase)/decrease in assets in (Increase)/decrease Current receivables 7.5 Cash and cash equivalents cash and Cash 7.5 cash Reconciliationof 7.5.1 For the purpose the statement of cash of cash flows, and cash equivalents(andrestricted cash and cash equivalents) assets comprise cash on hand and short-term deposits with original maturities three of months or less that are readily convertible a known to amount cash of and which are subject insignificant to riskof changesvalue. in Reconciliation7.5.2 of net cost of services to net cash flows operating in) activitiesprovided by/(used - - 29 (29) 219 248 657 298 938 409 409 686 657 657 657 2018 2018 2018 7,780 6,842 ($000) ($000) ($000) - - 46 (28) 310 372 257 528 225 225 556 303 528 528 528 2019 2019 2019 7,362 6,990 ($000) ($000) ($000)

Later than 1 year and than later not 5 years Non-current Later than 5 years Current Within 1 year

TOTAL Less: Unearned finance income

Net investment in financelease contracts Less: Unguaranteed residual values the finance of leases the at balance date Present value the future of minimum lease payment receivables on HeritageInterest Maintenance payments expensed costs Finance

Accumulated allowances for unallocated minimum lease payment receivables lease payment minimum unallocated for allowances Accumulated Present value of finance lease receivables as: financial statements the in Included lease arrangements were distributed as follows: relating to the futurerelating to minimum lease payments under non-cancellable finance As balance at the gross investment date, and present value receivables of Interest revenue

Western Australian Corporation Treasury – interest on borrowings Gross investment in finance lease contracts costsFinance 7.3 Interest revenue 7.3 liability, accordingliability, implicit the interest rate to in the lease. Minimum lease payments are apportioned between the finance charge andthe reduction theof outstanding lease of the lease.of fair value of the leased item or, if lower, the present value the minimum of iffair lower, lease value the leased of payments, determined item or, the at inception Finance lease rights are initially recognised, the at commencement the lease of as term, assets equal in amount the to

and interest on long term borrowings. These costs are expensed when incurred. ‘Finance includes costs’ interest on borrowings from the Western Australian Corporation Treasury

7.4 Finance costs7.4 Revenue is recognised as the interest accrues. Department of Finance Annual | 96 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 8.1 8.3 8.2 Notes Department of Finance Annual | 99 Report 2018-19 , the Department is exposed not risk interest rate because to

Contingent assets and liabilities and assets Contingent measurements value Fair Financial risk management risk Financial Market risk Market risk is the risk that changes in market prices such as foreign exchange and rates interest will rates affect the Department’s income or the value its holdings of financial of instruments. The Department doestrade foreign not in currency and is materially not exposed other price to risks. The Department’s exposure market risk to for changes in interest primarily relate rates the long-term debt obligations. to and are repayable fixed at varyingrates with All borrowings maturities. are the WATC due to Otherthan as detailed in sensitivitythe interest rate analysis table Note at 8.1(e) the majority cash of and cash equivalents and restricted cash are non-interest bearing and it has no borrowings other borrowings and finance leases advance(fixed interest (non-interest WATC bearing), rate). than the Treasurer’s 8. Risks and Contingencies This risk sets out the key note management policies and measurement techniques the Department. of Summary(a) of risks and risk management Credit risk Credit risk arises when there is the possibility the Department’s of receivables defaulting on their contractual obligations resulting in financialthe to lossDepartment. Credit risk associated with the Department’s financial assets is minimal becausethe mainreceivable theis amounts receivable for services (holding For receivables account). other than Government, the Department trades only with recognised, creditworthy third parties. The Department has policiesin place ensure to that sales products of and monitored balances receivable are addition, In history. credit appropriate an with customers services to made are on an ongoing basis with the result that the Department’s exposure bad debts is minimal. to Debt will be written-off against the allowance account when it is improbable or uneconomical the recover end At the the reporting debt. of to period there were no significant concentrationsof credit risk. risk Liquidity Liquidity risk arises when the Department is unable meet its to financial obligations they as fall due. The Department is exposed liquidity to risk through its trading in the normal course business. of by appropriations of drawdown including cash manage flows to procedures The Department appropriate has monitoring forecast cashto ensurethat flows sufficient fundsavailable are to meetits commitments. The Department has a facility agreement borrow in place to with the Western Australian Corporation Treasury (WATC) meet Fleet State to contractual $250,000,000 up to requirements, purchase vehicles and provide working capital. As was drawn against the facility. $5,432,897 30at June 2019 8.1 Financial risk management risk Financial 8.1 Financial instruments held the Department by are cash and cash equivalents, restricted cashand cash equivalents, advances,borrowings,Treasurer’s finance loans andreceivablesleases, and payables. The Department has limited exposure financial to risks. The Department’soverall risk management programfocuses on managingthe risks below. identified

110 2018 2018 2018 7,895 11,567 ($000) ($000) ($000) 50,275 26,287 11,567 30,061 26,397 88,231 - 2019 2019 2019 9,490 12,316 ($000) ($000) ($000) 26,426 25,458 38,067 12,316 73,015 26,426

Within 1 year Within 1 year Within 1 year the amountsto reported in the financial statements, payableare follows: as but recognised not as liabilities, are payable as follows: Commitments for minimum lease payments are payable as follows: Later than 1 year and than later not 5 years Later than 5 years additional expenditure capital contracted being commitments, expenditure Capital Other expenditure commitments contracted the for at end the reporting of period Later than 1 year and than later not 5 years The totals presented for other expenditure commitments are GST inclusive. The amount has for been 2018 adjusted reflect to this. The totals presented for capital commitments are GST inclusive. The amounts have been for 2018 adjusted reflect to this.

7.6.2 Capital commitments 7.6.2 leases being extended beyond their original lease term. extended under the prevailing lease terms and conditions (should the option presentresulting value for money), in result in rental increases throughout the lease terms. Options are available in most leases which permit leases be to advance. Depending on the terms and conditions the lease of concerned, rent review provisions exist which generally The property leases are non-cancellable years, with and 25 rent terms generally have up to payable monthly in derived from the leased properties. Operating leases are expensed on a straight line basis the lease over term as this represents the pattern benefits of

risks and rewards incidental ownership. these to Accordingly, leases been have classified as operating leases. leases buildings to relate a temporary of nature and it has been determined that the lessor retains substantially all the The Department has a number entered into leases of for buildings for branch office accommodation. Sometheseof Judgements made by management in applying accounting policies – operating lease commitments lease operating – policies accounting applying in management by made Judgements 7.6.3 Other expenditure commitments 7.6.3

7.6.1 Non-cancellable operating commitments lease 7.6.1 7.6 Commitments 7.6 Department of Finance Annual | 98 Report 2018-19 Overview Agency Financial Key Performance Disclosures

Performance Statements Indicators

The amount of payables excludes the GST payable to the ATO (statutory receivable). (statutory ATO the to payable GST the excludes payables of amount The (b)

The amount of receivables excludes the GST recoverable from the ATO (statutory receivable). (statutory ATO the from recoverable GST the excludes receivables of amount The (a)

159,450 31,078 19,465 3,602 114,860 328,455 112,770 - 79,918 192,688

159,450 25,612 4,390 963 482 190,897 - - 55,563 55,563 12.46 Payments Maintenance Heritage

- 5,466 15,075 2,634 1,613 24,788 - - 24,355 24,355 2.34 borrowings WATC

Payables - - - 5 112,765 112,770 112,770 - - 112,770 -

(b)

Financial liabilities Financial

520,579 4,087 3,452 95 204,890 733,103 720,457 11,960 657 733,074

519,814 3,270 779 - - 523,863 523,863 - - 523,863 - services for receivable Amounts

31 227 314 95 19 686 - - 657 657 3.64 receivables lease Finance

Receivables - 535 1,413 - 128,981 130,929 130,929 - - 130,929 -

(a)

734 55 946 - - 1,735 1,735 - - 1,735 - equivalents cash and cash Restricted

- - - - 75,890 75,890 63,930 11,960 - 75,890 1.96 equivalents cash and Cash Financial assets Financial

Department of Finance Annual | 101 Report 2018-19

2018

152,435 26,573 6,827 2,539 96,376 284,750 94,226 - 62,151 156,377

152,435 26,573 4,554 1,000 500 185,062 - - 56,718 56,718 12.46 Payments Maintenance Heritage

- - 2,273 1,539 1,650 5,462 - - 5,433 5,433 2.23 borrowings WATC

Payables - - - - 94,226 94,226 94,226 - - 94,226 -

(b)

Financial liabilities Financial

581,269 3,566 1,488 94 193,835 780,252 766,230 13,466 528 780,224

580,146 3,293 806 - - 584,245 584,245 - - 584,245 services for receivable Amounts

47 273 147 72 17 556 - - 528 528 2.63 receivables lease Finance

Receivables - - 535 - 111,423 111,958 111,958 - - 111,958 -

(a)

1,076 - - 22 - 1,098 1,098 - - 1,098 - equivalents

Restricted cash and cash cash and cash Restricted

- - - - 82,395 82,395 68,929 13,466 - 82,395 2.22 equivalents cash and Cash

Financial assets Financial

2019

($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) %

5 years 5 years 1-5 year 1 to months 1-3 month amount bearing rate rate amount rate interest

More than than More months 3 1 to Up Nominal interest interest interest Carrying effective

Non- Variable Fixed average

Weighted Weighted

Interest rate exposure rate Interest Maturity dates Maturity

Interest rate exposure and maturity analysis of financial assets and financial liabilities financial and assets financial of analysis maturity and exposure rate Interest

section includes interest and principal cash flows. The interest rate exposure section analyses only the carrying amounts of each item. each of amounts carrying the only analyses section exposure rate interest The flows. cash principal and interest includes section

The following table details the Department’s interest rate exposure and the contractual maturity analysis of financial assets and financial liabilities. The maturity analysis analysis maturity The liabilities. financial and assets financial of analysis maturity contractual the and exposure rate interest Department’s the details table following The

Liquidity risk and Interest rate exposure rate Interest and risk Liquidity (d)

(4) (8) 528 657 449 >91 2018 days 1,735 0.81% 1.88% ($000) ($000) 24,355 75,890 55,563 112,770 130,929 523,863 733,074 192,688 - - 14 0% 0% 528 1,113 2019 days 1,098 5,433 61-90 56,718 ($000) ($000) 82,395 94,226 111,958 584,245 156,377 780,224 - - 0% 0% days 1,100 1,244 31-60 ($000)

Days past due - - 0% 0% <30 days 5,860 3,808 ($000) - - 0% 0% ($000) 49,083 53,209 Current (4) (8) Total ($000) 59,679 56,729 (a) (b)

Credit risk exposure risk Credit The amount of receivables excludes GST recoverable from (statutory the ATO receivable). The amount of payables excludes GST payable (statutory the to ATO payable).

Finance lease receivables services for receivable amortised amounts - at cost assets Financial (a) (b) Payables Financial liabilities Financial Restricted cash and cash equivalents cash and cash Restricted Cash and cash equivalents cash and Cash Financial assets Receivables

Corporation borrowings Corporation Financial assets amortised at cost - Western Australian Treasury Financial assets amortised at cost - Heritage Maintenance Payments

amount default at Estimated total grossEstimated total carrying

Expected credit loss rate loss credit Expected 30 June 2019

Expected credit loss rate loss credit Expected Expected credit losses credit Expected (Remeasurement) 2018 July 1

amount default at Estimated total grossEstimated total carrying

Expected credit losses credit Expected (c) The following table details the credit risk exposure on the Department’s trade receivables using a provision matrix reporting period are: The carrying amounts eachof the following of categories financial of assets and financial liabilities at the of the end (b) Categories of financial Categoriesinstrumentsof (b) Department of Finance Annual | 100 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - - - 978 978 753 (472) (573) (6,432) 34,815 ($000) ($000) ($000) ($000) 25,897 43,925 28,002 36,074 34,815 137,19 4 124,130 131,229 (28,002) 128,204 255,359 265,398 Buildings Buildings Fair value at Fair value at end of period of end end of period of end ------(765) 1,093 1,093 Land Land 3,525 78,137 36,074 (3,525) 77,0 4 4 77,0 4 4 34,815 81,334 ($000) ($000) ($000) ($000) 78,137 77,044 Level 3 Level Level 3 Level 114,211 111,859 Department of Finance Annual | 103 Report 2018-19 92,130 54,185 89,315 ($000) ($000) 59,057 Level 2 Level Level 2 Level 151,187 143,500 ------($000) ($000) Level 1 Level Level 1 Level ) ) ) ) 5.1 2019 Revaluation increments/(decrements) recognised in Profit or Loss Assets measured at fair value: Land (Note Assets measured at fair value: 2018 Buildings (Note 5.1 (Note Buildings Land 5.1 (Note Buildings (Note 5.1 (Note Buildings Total losses for the periodTotal included in profit or loss, under‘Other expenses’ Transfers Fair value end at period of Additions Income Comprehensive Other in recognised increments/(decrements) Revaluation expense Depreciation 2019 Fair value start at period of 2018 Fair value start at period of Additions Transfers gain for the period includedTotal in profit or loss, under‘Other gains’ Revaluation increments/(decrements) recognised in Profit or Loss Income Comprehensive Other in recognised increments/(decrements) Revaluation expense Depreciation Fair value end at period of 8.3 Fair value measurements value 8.3 Fair There were no transfers 2 or 3 during between the current and 1, Levels previous periods. Valuation techniques derive to Level 2 fair values Level 2 fair values Land and Buildings (office accommodation) are derived usingthe market approach. Market evidence sales of prices comparable of land and buildings (office accommodation) in close proximity is to used determine price per square metre. Non-current assets held for sale been have written fair down value to less sell. Fair value costs to has been determined reference market by evidence to sales of prices comparable of assets. 120 135 135 120 ($000) Equity 120 135 135 120 ($000) Surplus +100 basis points basis +100 ‘Other provisions’. ‘Other (120) (135) (135) (120) ($000) Equity (120) (135) (135) (120) ($000) . For this site, a restoration cost. For this site, provision has Surplus -100 basis points basis -100 11,960 ($000) 13,466 amount Carrying Carrying

, the Departmentis required report to known and suspected contaminated

, the Department a liability have may in respect investigation of or remediation expenses.

2018 Total increase/(decrease) Total

Cash and cash equivalents cash and Cash Financial assets

Cash and cash equivalents cash and Cash Financial assets

Total increase/(decrease) Total 2019 The second site has been classified as contaminated been as classified has restricted – site useThe second may be required. Contaminated Sites Management Account undertake to further investigative meet work or remediation to costs that future expenses be that may incurred in the remediation these of sites, the Department apply may for funding from the been recognised rehabilitate a standard to it to suitable for future land Please use. see note 6.5 uncertainties the amount relating to or timing any outflows. of Whilstthere is no possibilityreimbursementof of any classification process and accordingly it is practicablenot theto potential estimate financial effect to identify or the as possibly contaminated-investigation required. The Department is unable assess to the likely outcome the of The Department has reported two suspected contaminated The DWER. sites first to hassite been classified investigation requiredinvestigation classifiedas contaminated – remediation required, contaminated – restricted use or possibly contaminated – these sites on the basis the risk human of to health, the environment and environmental values. Where sites are Under the Contaminated Sites 2003 Act the Departmentsites to and Environmental Water of In accordance Regulation classifies (DWER). DWER with the Act, Department of Finance Annual | 102 Report 2018-19 Contaminated sites Contaminated legal action. Where costs are negotiated and claims settled, these are reflected in the financial statements. financial the in reflected are these settled, claims and negotiated are costs Where legal action. (at a value agreed(at between the two parties), or proceed some alternative to process for resolution such as through projects. Claims will generally be subject a period to negotiation of and either may be withdrawn, subsequently settled Hospital There and NIBStadium). be may claims that arise in works relation or activities to associated with such A range significant of infrastructure projectsreached have or reaching are completion(such Perth theas Children’s and, if quantifiable, are measuredtheat best estimate. 8.2 Contingent assets liabilities and Contingent assets and contingent liabilities are recognised not in the statement financial of position but are disclosed It isIt assumed that the change in interest is rates held constant throughout the reporting period. liabilities the at end the reporting of period on the surplus for the period change and inequity interest rates. for a 1% The following table represents a summary sensitivity the interest of rate the Department’s of financial assets and (e) Interest rate sensitivity analysis sensitivity rate Interest (e) Overview Agency Financial Key Performance Disclosures Performance Statements Indicators (4) (4) (4) (4) 9.1 9.7 9.4 9.6 9.9 9.5 9.8 9.3 9.2 9.11 9.12 9.13 9.10 ($000) 9.13.1 9.13.3 9.13.2 1-Jul-18 Notes (a), (b) (a), (b) Adjustments Department of Finance Annual | 105 Report 2018-19 replaces Financial AASB instruments: 139 Recognition and Measurements for annual

Key management personnel management Key Explanatory statement - Statement of Financial Position Variances Position Financial of Statement - Explanatory statement Explanatory statement - Statement Cash of Flows Variances Initial application of Australian Accounting Standards Accounting Australian of application Initial impactFuture Australian of Accounting Standards issued operative yet not Remuneration of auditors of Remuneration Explanatory statement - Statement of Comprehensive Income Variances Income Comprehensive of Statement - Explanatory statement Supplementary financial information Equity Territories Ocean Indian Service arrangements delivery Special purpose accounts - controlled - accounts purpose Special Related and affiliated bodies affiliated and Related Related partyRelated transactions Explanatory statement (Controlled Operations) (Controlled Explanatory statement Events occurringEvents after the end the reporting of period Non-current assets classified as assets held for sale for held classifiedassets as assets Non-current Assets receivables Trade Total Assets adjustmentsTotal on Equity surplus/(deficit) Accumulated 9. Other9. disclosures for pronouncements, other or standards accounting by required disclosures material additional includes section This financialreport. this understandingthe of 9.1 Events occurring9.1 after the end of the reporting period The Department is any unaware event occurring of after reportingthat would materially date affect the Financial Statements. 9.2 Initial application of Australian Accounting Standards AASB instruments 9 Financial reporting periods beginning on bringing or after 1 January together all three aspects the accounting 2018, of for accounting. hedge and impairment; measurement; and classification instruments: financial The Department applied AASB The with adoption 9 prospectively, an AASB initial of application 9 1 July of date 2018. has resulted in changes in accounting policies and adjustments the amounts to recognised in the financial statements. the Department has restated not the comparative information which continues In accordance with AASB 9.7.2.15, be reportedto under Differences AASB 139. arising from adoption been have recognised directly in Accumulated surplus/(deficit). The effect as was, follows: adopting of AASB 9 as 1 July at 2018

These restrictions are imposed virtue by the assets of being held deliver to a specific community service. or limitations been have placed on their use and disposal when are they determined not be surplus to requirements. to valued the fair 3 of Level at value hierarchy on an existing use basis. The existing use basis recognises that restrictions In the absence market-based evidence, of the specialised due to some nature of non-financial theseassets, assets are Basis of valuation values the estimate correlating of with lower estimated fair values buildings. of Property Analytics). The fair value measurement is sensitive to the estimate of consumption/obsolescence, with higher higher with consumption/obsolescence, of estimate the to sensitive is measurement value The fair Property Analytics). obsolescence asset of which is estimated the Western Australian by Land Information Authority (Valuations and Valuation using current replacement cost utilises the significant Level 3 input, consumed economic benefit/ economic consumed input, 3 Level significant the utilises cost replacement current using Valuation functional (technological) obsolescence and economic (external) obsolescence. obsolescence economic (external) and (technological) functional the gross project size specifications, adjusted for obsolescence. Obsolescence encompasses physical deterioration, deterioration, physical Obsolescence encompasses obsolescence. for adjusted specifications, size project gross the determined reference the by market observable to replacement costsubstitute a of asset comparable of utility and economic benefits theembodied currentreplacement i.e. thein asset, Currentcost. replacement cost is generally Fair value for existing use specialised buildings is determined reference the by cost replacingof to the remaining future Buildings (Level 3 fair values) comparator land correlating with higher estimated fair values land. of this valuation The methodology. fair value measurement is sensitive values to comparator of land, with higher values of Information Authority (Valuations and Property Analytics) and represents the application a significant of Level 3 input in restricted use The land). relevant comparators land of with level low utility is selected the Western Australianby Land Fair value for restricted use land is based on comparison with market evidence for land with level low utility (high Land (Level 3 fair values) will utilise significant Level 3 inputs recurringon a basis. Treasurer’s instructions require valuations land of Treasurer’s and buildings becategorised to within Level 3 where the valuations caused the transfer. Transfers are generally Transfers causedassets limited newly to the transfer. classified as non-current assets heldfor sale as Transfers in and out a fair of Transfers value level are recognised the event or of on change the date in circumstances that There were no changes in valuation techniques during the period. Valuation processes Valuation Department of Finance Annual | 104 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

periods on/after Operative Operative beginning beginning 1 Jan 2019 1 Jan 2019 for reportingfor Department of Finance Annual | 107 Report 2018-19 Option the modified 2 of retrospective approach on transition; valuethe asset’ ‘low threshold $5,000 set AUD (unless at Fleet); orGROH, State GOA For leases these months or less), classified as ‘short (12 term’ are recognised not under (unless AASB or GROH, GOA 16 State Fleet); Land, buildings and investment property ROU assets are measured under the fair value model, subsequent initial to and recognition; Discount are rates sourced Corporation Treasury from WA (WATC). Revenue from Contracts with Customers This Standard establishes the principles that the Department shall apply report to useful information users to financial of statements about amount, timing the nature, and uncertainty revenue of and cash flows arising from contracts with customers. The mandatory effective this Standard of date is currently after 1 January 2019 being amended AASB by 2016-7. appropriations primarily derived from is income The Department's which will be measured under and AASB thus will be not 1058, of recognition the Although change. this by affected materially charges‘user and revenues and fees’ ‘sales’ will be deferred until these performance Department the its discharged has obligations, revenues are expected be fully to recognised and no year-end at liabilitycontract will exist. The Department will adopt the modified retrospective approach No comparativeon transition AASB information to will 15. be restated under this approach, and the Department will recognise the cumulative effect initially of applying the Standard as an adjustment the opening to balance accumulated of application. initial of date the at surplus/(deficit) Leases This Standard introduces a single lessee accounting model and requires a lessee recognise to assets and liabilities for all leases months, unlesswith the more underlying a term of than 12 asset value. low is of from mainly liabilities, and assets additional of The recognition operating leases, will increase the Department’s assets total by Impact on equity on liabilities and total $1,731,747. by $1,731,747 In is addition, nil. interest and depreciation1 July expenses 2019 will increase, offset a decrease by in rental expense for the year and beyond. 2020 June ending 30 The assessment above is based on the following accounting positions: policy –  –  –  –  AASB 15 Impact Transition AASB 16 Impact Nature of ChangeNature of ChangeNature of 9.3 Future9.3 impact of AustralianAccounting Standards not yet operative The Department cannot early adopt an Australian Accounting Standard unless specifically1101 permittedby TI Where Australianof Accounting‘Application Standards and Other Pronouncements’ an or from exemption by TI 1101. applicable, the Departmentplans apply to the following Australian Accounting Standards from their application date.

- - 4 4 as at ($000) ($000) AASB 9 Fair value ECL under 1 July 2018 through P/L

- - 4 4 ($000) ($000) Fair value through OCI Remeasurement AASB 9 category

- - cost 56,725 ($000) ($000) 523,863 580,588 139 as139 at Amortised Impairment Impairment under AASB 30 June 2018 56,729 ($000) 523,863 classified as Receivables to are heldcollect contractual at as 30 June2018 cash flows and give

Trade receivables Trade rise to cashrise to representing flows solely paymentsof principal and interest. These are classified and measured as amortised 2018. July 1 beginning at cost assets Financial The Department did designate not any financial assetsP/L. at fairas value through

Financial assets amortised at cost under AASB 9 Receivables under AASB 139/ * The change in carrying amount is a result of additional impairment allowance. See the discussion on impairment.

Trade receivables* Trade AASB category 139 Receivables

- amounts receivable for services for receivable amounts - Financial assets at amortised at cost assets Financial –  The following are the changes in the classification of the Department’s financial assets: financial Department’s the of classification the changes in the are The following The classification and measurement requirements of AASB 9 did not have a significant impact on the Department. the Department. on impact a significant have not of did 9 AASB requirements measurement and The classification –  In summary, upon the adoption AASB of the Department 9, had the following reclassifications at 1 as July2018: made based on the facts and circumstances the at initial time of recognition the assets. of assessment whether of contractual cash flows on financial assetsare solely comprised of principal andinterest was The assessment the Department’s of business model The was initial made of as the date of application, 1 July 2018. flows represent flows ‘solely paymentsof principal and interest’ theon principal amount outstanding. on two criteria: the Department’s business model for managing and the assets; whether contractual the assets’ cash income (fair value through OCI) orfair value through The profit or P/L). classificationloss(fair value through is based UnderAASB financial 9, assets are subsequently measured at amortised fair valuecost, through other comprehensive (a) Classification(a) and measurement The these nature of adjustments are described below: loss allowances determined in accordance with AASB 9: Set out below is the reconciliation the ending of impairment allowances in accordance the opening with to AASB 139 receivables which $4,289 resulted of in a decrease in Accumulatedat 1 as July2018. of surplus/(deficit) $4,289 Upon adoption AASB of the Department 9, recognised an additional impairment on the Department’s Trade through P/L. through AASB 9 requires the Department recognise to an allowance for ECLs for all financial assets heldnot at fairvalue assets by replacing AASB 139’s incurredassets replacing loss by approach AASB with a forward-looking 139’s expected credit loss approach. (ECL) The adoption AASB of 9 has fundamentally changed the Department’s accounting for impairment losses for financial (b) Impairment(b) Department of Finance Annual | 106 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

periods on/after Operative Operative beginning beginning 1 Jan 2019 1 Jan 2019 1 Jan 2019 1 Jan 2019 1 Jan 2020 for reportingfor Department of Finance Annual | 109 Report 2018-19 Amendments Australian to Accounting Standards – Australian Implementation Entities Guidance for Not-for-Profit This Standard inserts Australian requirements and authoritative implementation entities AASB into guidance for not-for-profit entities This9 and guidance in AASB assists 15. not-for-profit other and transactions particular to Standards those applying Thereevents. is no financial impact. Amendments Australian to Accounting Standards – Australian Implementation Public Guidance for Not-for-Profit Sector Licensors This Standard amends add requirements to AASB and 15 by application guidance for implementation authoritative involving transactions licensors to sector public not-for-profit the issue licences. of There is no financial impact as the Department does issue not licences. Amendments Australian to Accounting Standards – Deferral AASB of 1059 This Standard amends the mandatory effective AASB of date is so required that AASB be applied to 1059 1059 for annual reporting periods beginning on or after 1 January instead 2020 There is no financial 1 Januaryof impact. 2019. Amendments Australian to Accounting Standards – Definition Material of its and material of definition clarifies the Standard This definition the aligning and wording the improving by application across AASB Standards and other publications. There is no financial impact. Amendments Australian to Accounting Standards Entities for-Profit Not- Assets of – Right-of-Use This Standard provides a temporary option for for not profit entities apply not to the fair value initial measurement requirements assets arising for right-of-use under leases with significantly below-market terms and conditions principally to further objectives. its to entity the enable The Department will elect apply measure to the option to (which under peppercorn cost leases assets at right-of-use As a result, the inancialis generally impact this of about $1). Standard is material. not AASB 2016-8 AASB 2018-4 AASB 2018-5 AASB 2018-7 AASB 2018-8 Impact Nature of ChangeNature of ChangeNature of ChangeNature of ChangeNature of ChangeNature of

periods on/after Operative Operative beginning beginning 1 Jan 2019 1 Jan 2020 for reportingfor

The Department will adopt the modified retrospective approach on No transition comparative AASB to information 16. will be restated under thisapproach, and the Department will recognise the cumulative effect initially of applying the Standard as an adjustment the opening to balance accumulated of application. initial of date the at surplus/(deficit) Entities Income Not-for-Profit of recognition income clarifies simplifies the and Standard This requirements that apply forprofit not entities, (NFP) to more closely reflecting the economic reality NFP entity of transactions that are contracts not with customers. Timing incomeof recognition is dependent on whether such a transaction gives a liability rise to or other performance a or service), or good a transfer to promise (a obligation contribution owners, an by asset related to as (such cash or another asset) received the Department. by AASB will no impact have on appropriations 1058 and recurrent grants received the Department by will – they continue be to recognised as income when funds are deposited in the bank account or credited the holding to account. The Department has determined that no revenue fromcapital grants will be deferred futureinto reporting periods. Hence there will be no equity impact on 1 July 2019. The Department will adopt the modified retrospective approach on transition No AASB comparative to information 1058. will be restated under this approach, and the Department will recognise the cumulative effect initially of applying the Standard as an adjustment the opening to balance accumulated of application. initial of date the at surplus/(deficit) Grantors Service Arrangements: Concession This Standard addresses the accounting for a service concession arrangement type (a public of private partnership) a grantor that is a publicby sector Department prescribing by the accounting for the arrangement from the grantor’s recognition the for measurement and Timing perspective. a specificof asset class occurs on commencement the of arrangement and the accounting for associated liabilities is determined whether by the grantee is paid the grantor or by service public the provided. users of The mandatory effective this Standard of date is currently 1 January after 2020 being amended AASB by 2018-5. The Department does manage not any public private partnership that is within the scope the Standard. of

Transition AASB 1058 ChangeNature of Impact Transition AASB 1059 Nature of ChangeNature of Impact Department of Finance Annual | 108 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - 384 308 2018 2018 2,076 (2,384) ($000) ($000) ); - - - - 394 2019 2019 ($000) ($000) Note 9.14 ); and );

); Department of Finance Annual | 111 Report 2018-19

Note 3.4 );

Note 4.2 );

N ote 7.1 ); Note 9.8 ); Note 4.2

Note 4.1

);

); ); N ote 7. 2 Note 4.1 Note 9.10 ); Note 4.2 Services received free charge of from Department Justice, of Landgate, Department and Treasury Department of of ( Primary Regional Development and Industries Managed building works revenue for the planning, delivery, management and maintenance government of buildings ( Vehicle fleet leaserental revenue vehiclefrom leasing arrangements ( Rental income for government office accommodation ( officeaccommodation government for income Rental Payments Balance at end of period Receipts Balance start at period of and controls, financial statements, accounts, the Auditing performance indicators key –  Service– ( appropriations – Insurance the payments Insurance to Commission Western Australia of ( ( appropriations Capital – Material transactions related parties other with in employee superannuation contributions the Government to the DepartmentDuring the year, paid $8,897,120 Board. Superannuation Employees Outside normal of citizen typetransactions with the Department, there were no other related party transactions that controlled) jointly (or controlled their members and/or family close their personnel and/or management key involved entities. affiliated and Related bodies 9.6 The Department has no related bodies or affiliated bodies. Special controlled accounts purpose – 9.7 Sunset Reserve Account The purpose the account of record is receipts to in respect leasings, of proceeds from the disposal the excised of land, amounts appropriated Parliament, by and payments incurred in the conservation and management Sunset of Reserve. 9.8 Remuneration9.8 auditors of Remuneration paid the or Auditor General payable to in respect the audit of for the current financialyear is follows: as Significant transactions entities with Government-related In conducting its activities, the Department is required transact to withand the State entities the State. relatedto These transactions are generally based on the standard terms and conditions that apply all agencies. to Such transactions include: –  –  – Loan facility from the Western Australian Corporation Treasury ( –  – – Provide vehicle finance leases ( – Remuneration for services provided the Auditor General by ( – Provide corporate services,accommodation leasing services and fitouts freeof charge ( - - - - - 1 1 1 1 1 1 1 1 1 213 239 2018 2018 1,725 2,177 ($000) ------1 1 1 2 1 1 155 502 2019 2019 1,463 2,120 ($000)

the Government Employees Superannuation Board (GESB). other departments and statutory authorities, including related bodies, that are included in the whole government of entities); sector public owned wholly (i.e. statements financial consolidated

Other long term benefits benefits Termination Total compensation of senior officers senior of compensation Total

Short-term employee benefits employee Short-term Post employment benefits employment Post

120,001 - 130,000 90,001 - 100,000 140,001 - 150,000

Compensation band ($) band Compensation 160,001 - 170,000

200,001 - 210,000 190,001 - 200,000 -210,001 220,000

240,001 - 250,000 300,001 - 310,000

280,001 - 290,000 360,001 - 370,000 400,001 - 410,000 680,001 - 690,000 –  – associates and joint ventures a wholly of owned public sector entity; and –  – all senior officers andtheir close family members, andtheir controlled or jointly controlled entities; – all cabinet ministers and their close family members, and their controlled or jointly controlled entities; Related parties of the Department include: the parties of Related The Department is a wholly owned public sector entity that is controlled Western Australia. of the State by 9.5 Related party transactions Total compensation includesTotal the superannuation expense incurred the Department by in respect senior of officers. Department for the reportingperiod are presented within the following bands: The fees, salaries, total superannuation, non-monetary benefits otherand benefits for senior officers of the found in the Annual Report Finances. on State Department. The Department does incur not expenditures compensate to Ministers and those disclosures be may The Department has determined management key personnel include to cabinet ministers and senior officerstheof 9.4 Key management9.4 Key personnel Department of Finance Annual | 110 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - 1 42 28 357 644 2018 5,575 1,640 3,507 1,001 5,575 5,218 ($000) 1 3 51 34 22 491 (979) 2019 1,001 8,678 8,279 8,279 9,258 ($000) Department of Finance Annual | 113 Report 2018-19

Duties Land Tax Compliance period the for Surplus/(deficit) Balance carried forward carried Balance Balance brought forward brought Balance Payroll Tax and business Tax Payroll franchise Revenue Commonwealth receipts Commonwealth Expenditure Consultants and contractors Administration and other costs 9.13 Explanatory statement (Controlled Operations) 9.13 All variances between and between estimates (original budget) the actual and actual results results for 2019 for 2019, Narratives are shown below. are provided major for key variances,and 2018 which are generally greater than: million and for $25 the Statements Comprehensive of – 5% Income and and Cash Flows; million and for $25 the Statement Financial of – 5% Position 9.12 Service delivery arrangements Indian Ocean Territories Ocean Indian Service arrangements delivery 9.12

32 (37) 646 200 (421) (480) 2018 2018 2018 4,733 4,088 3,048 11,223 14,902 ($000) ($000) ($000) 15,134 11,869 11,869 (14,105) (15,043) 1,055,928 1,056,019 ------200 2019 2019 2019 9,173 1,661 1,655 2,931 6,248 11,820 ($000) ($000) ($000) 12,020 10,834 10,834 1,056,019 1,068,039

The Minister Council Executive from Department Treasury of Transfer of Strategic of Projects Asset (excluding Sales) Transfer Other contributions owners by

Capital appropriation Capital Contributed equityContributed Balance start at period of Contributions owners by authority The accountable assets Public Debts the State due to to the Departmentto Treasury of Return Regional Infrastructure and Headworks Fund Funding from Treasury Administered Treasury from Funding owners by contributions Total Distribution owners to

to the Departmentto Treasury of Transfer of Public of Utilities OfficeTransfer and Economic Reform

Government, Sport Industries Cultural and Government, Transfer of the Sunset of HeritageTransfer Precinct the Department to Localof Optus Stadium land VenuesWest Transfer to

Total distributions to owners distributions to Total Balance at end of period 9.10 Equity 9.10 The Department does non-current have not assets held for sale. 9.9 Non-current9.9 assets classified as assets held for sale (b) Write-offs(b) category by Department of Finance Annual | 112 Report 2018-19 During the year, $10.834 million (2018: $11.869 million) was written off the Department by under the authority $11.869 of: million (2018: $10.834 During the year, (a) Write-offs 9.11 Supplementary financialinformation 9.11 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 115 Report 2018-19 The 2019 actual is lower than the estimated resultThe because 2019 reduced of Capital expenditure Works managed by Building Management and and Works Strategic Projects on behalf Governmentof agencies. is reflectivetheof reduction recoveryLower in CapitalWorksexpenditure costs of in 2019 managed on behalfof agencies. Government reflectsthe reduction The lower expenditurein demand infor 2019 services primarilyto relatingCapital Works agencies. other behalf of on managed projects actual included one-offThe 2018 amounts the downwards relating revaluation the Department’s to of land and building assets as a result the annual of valuation process. reflectsrecovery a lower The reductionof costs in line in 2019 thewith associatedreduction of Capital Works agencies. Government other behalf of on managed expenditure Major Estimateand Variance Actual Narratives (2019) 1 3 Narratives Variance and Comparative (2018) Major Actual (2019) 1 2 3

1 12 (15) (50) 427 (418) (320) (489) 2,152 5,668 3,500 3,486 (2,080) 12,465 ($000) 12,145 actual 55,573 55,573 results results (67,5 0 0) (10,465) (68,620) (38,693) (57,912) (57,592) (52,087) for 2019 between between Variance Variance (109,999) and 2018

115 (34) 859 444 452 and (128) 1,650 4,442 3,001 (1,164) (1,795) (9,424) (4,294) (5,464) 12,465 ($000) actual 27,505 27,505 13,324 (12,159) (27,053) (147,5 3 3) (138,356) between between estimate estimate Variance Variance (135,387) (136,246) (162,440) - 17 578 106 298 2018 2,179 7,78 0 7,0 8 5 2,179 6,566 13,511 39,775 ($000) 40,562 66,007 Actual 115,304 150,900 164,517 184,722 (20,205) (20,205) 1,107,8 0 9 1,176,982 1,193,110 1,190,931 1,377,832 91 310 528 444 2019 7,3 62 1,082 1,859 4,486 6,596 13,512 68,159 12,465 ($000) 46,230 14,324 Actual 35,368 35,368 154,400 104,839 132,635 168,003 1,109,482 1,039,189 1,135,198 1,133,339 1,267,833

- - 125 195 2019 7,49 0 8,780 2,323 1,000 3,595 6,546 7,863 7,863 1,000 41,788 14,676 77,5 8 3 ($000) 152,750 116,998 167,551 159,688 1,177,545 1, 257,015 Estimate 1,430,273 1,270,585 1,269,585 3 1 2 note Variance Variance

Services received free charge of Fund Regions for Royalties Total revenue Total Service appropriation GOVERNMENT INCOME FROM STATE STATE FROM INCOME

State Government State Total income from from income Total

from State Government State from Total income other than income income Total NET COST OF SERVICES SURPLUS/(DEFICIT) FOR THE PERIOD

non-current assets Gain on disposal of Total costTotal of services User charges and fees Other revenue Gains Revenue Income Employee benefits expense benefits Employee Expenses Supplies and services and Supplies INCOME FOR THE PERIOD THE FOR INCOME TOTAL COMPREHENSIVE COMPREHENSIVE TOTAL Total gains Total

amortisation expense non-current assets and contributions Depreciation and and Depreciation and subsidiesGrants Loss on disposal of expenses Other grants Commonwealth Interest revenue Gain from revaluation

Finance costs expenses Accommodation 9.13.1 Statement of Comprehensive Income Variances Statement Comprehensive Variances Income of 9.13.1 Department of Finance Annual | 114 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

- 53 (16) (42) 421 367 158 (547) (727) 2,705 3,382 (1,424) (1,522) 12,851 13,441 (3,082) (6,488) (8,948) ($000) actual (6,998) (10,759) results results 103,492 for 2019 (109,997) between between Variance Variance and 2018

- - (35) 128 200 and 1,253 1,802 1,996 4,685 (6,196) 11,829 (3,525) (3,657) (4,300) (5,200) 24,458 ($000) actual (3,039) (10,196) 116,793 (15,587) (33,340) (150,827) between between estimate estimate Variance Variance 106 361 200 (574) (421) 2018 7,70 0 1,326 5,575 (2,632) (6,032) (6,604) 14,902 ($000) 15,343 89,857 Actual (40,438) 132,352 105,970 (68,140) (117,9 49) (134,697) 1,216,232 (1,136,777) - Department of Finance Annual | 117 Report 2018-19 90 319 779 200 (521) 2019 6,178 8,280 6,395 11,820 (6,759) (4,056) (6,237) ($000) 93,239 Actual 121,593 (46,926) 106,128 (75,138) (121,256) (105,098) 1,106,235 (1,033,285)

- - 125 191 779 (399) 2019 3,595 17,020 12,374 ( 7,49 0) (2,323) 91,243 (3,234) 16,591 ($000) 137,18 0 (42,626) 109,167 (41,798) (145,714) (116,927) 1, 257,0 62 Estimate (1,150,078) note Variance Variance The variance estimate the is lower due value landto to of and buildings as a result the annual of revaluation process and reductions infleet purchasestheto duewhole-of-government Fleet State reform. Lease incentives increased have as a result favourable of leasing conditions negotiated on behalf Government. of the drawdown for the asset relates to replacementThe increase provision in 2019 and is reflectivetheof program. Works Capital the of requirements Lease incentives increased have as result a favourable of leasing conditions negotiated on behalf Government. of Funding from Treasury Administered Treasury from Funding Holding account drawdowns account Holding and Regional Infrastructure Fund Headworks Net cash provided by Government State Capital appropriations Capital Royalties for Regions Fund Regions for Royalties Supplies and services and Supplies CASH FLOWS FROM STATE FROM STATE FLOWS CASH GOVERNMENT Service appropriation CASH FLOWS FROM OPERATING FROM OPERATING FLOWS CASH ACTIVITIES Payments benefits Employee Accommodation Finance costs Grants and subsidiesGrants GST paymentsGST on purchases taxation paymentsGST to authority Other payments Receipts User charges and fees Interest received Commonwealth grants and contributions GST receiptsGST on sales GST receiptsGST from taxation authority Other receipts Net cash provided by/(used in) operating activities Major Estimateand Variance Actual Narratives (2019) 2 3 Narratives Variance and Comparative (2018) Major Actual (2019) 1 3 Statement of Cash9.13.3 Flows Variances

10 27 55 415 135 136 342 (474) (184) (979) (535) 2,817 4,824 2,025 1,354 6,505 (5,341) 45,017 12,020 10,146 ($000) actual 47,384 47,384 60,355 35,364 57,530 39,821 69,883 (17,858) (12,426) results results (18,544) (29,675) (12,353) for 2019 between between Variance Variance and 2018

- 9 78 (69) 908 and (202) (393) 5,143 1,056 2,528 4,877 (1,738) 24,412 (1,867) (1,900) (2,826) (2,320) ($000) 58,872 actual 58,757 (48,123) (58,501) (16,080) (64,677) (35,454) (97,190) (61,327) (61,327) (81,330) (45,467) (149,047) between between estimate estimate (140,087) Variance Variance (142,657) 248 779 734 535 534 409 2018 4,818 1,001 4,307 16,771 23,913 26,212 ($000) 29,347 75,890 38,928 23,058 34,463 56,005 Actual 112,770 131,249 6 87,0 9 4 132,386 523,084 239,812 202,724 192,606 395,330 1,056,019 1,094,947 1,094,947 1,490,277 1,250,465 - 22 225 544 303 806 7,124 2019 1,076 4,953 17,18 6 24,412 11,487 74,292 25,738 ($000) 29,483 82,395 94,226 50,664 36,488 Actual 114,528 691,918 176,266 583,439 173,049 227,459 405,476 232,427 1,068,039 1,142,331 1,142,331 1,547,807 1,320,348

- 168 294 535 806 2019 2,041 4,875 1,889 2,320 6,068 77,118 27,567 27,6 3 8 14,658 31,345 ($000) 24,606 50,866 147,072 117,394 740,041 149,982 243,273 313,136 173,670 583,832 324,649 486,806 1,126,540 Estimate 1,365,815 1,690,464 1,203,658 1,203,658 1 2 3 note

Variance Variance

(b) (a) (b)

Employee related provisions related Employee

Borrowings Total Current Liabilities Current Total Liabilities Non-Current

Other non-current assets non-current Other Assets Non-Current Total Amounts receivable for services for receivable Amounts assets Intangible

vehicles Property, plant, equipment and and equipment plant, Property,

TOTAL EQUITY Accumulated surplus/(deficit) Accumulated

Lease incentives liabilities current Other NET ASSETS NET

TOTAL LIABILITIES TOTAL Other provisions Other Liabilities Non-Current Total equivalents Restricted cash and cash Receivables CurrentTotal Assets Non-Current Assets

equivalents equivalents Restricted cash and cash Finance lease receivables TOTAL ASSETS Cash and cash equivalents Current Assets Assets Contributed equity Contributed Equity Payables Current Liabilities Current Liabilities Employee related provisions related Employee

Lease incentives Finance lease receivables Other current assets Receivables

Amounts receivable for services for receivable Amounts Borrowings

Department of Finance Annual | 116 Report 2018-19 9.13.2 Statement of9.13.2 Financial Position Variances Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 376 376 281 736 620 829 453 334 645 408 2018 6,188 1,547 2,218 1,460 1,588 3,295 ($000) 21,354 671 679 607 280 458 338 489 560 406 690 2019 3,126 1,924 1,442 1,239 2,236 5,998 21,143 ($000) Department of Finance Annual | 119 Report 2018-19

(a) (b) Adjusted amount 2018 by $5,765,000 reflect to corporate services provided free of charge. Includes agencies 28 and in both 2019. 2018 Lower expenditureLower than budget is the result lower vehicle of purchases Fleet State due reforms to and lower than anticipated expenditure on Lease Incentive funded assets. Lease incentives received are higher than budget as a resultfavourable of leasing conditions negotiated on behalf Government. of is the result lower vehicle of expenditure purchasesLower Fleet in State 2019 due reforms to and lower than anticipated expenditure on Lease Incentive funded assets. Monies transferred as a result Machinery of Government of changes. Department the Premier of and Cabinet Office the Auditor General of Department & Workforce Development Training of Department Transport of Commission Sector Public Police Australia Western Department of Treasury of Department (a) (b) Department Health of Department Justice of Department Planning, of Lands and Heritage The Ombudsman Department Mines, of Industry Regulation and Safety Agencies Other Department Local of Government, Sports and Cultural Industries Department of Communities Department of Department Primary Regional Development and of Industries Major Estimateand Variance Actual Narratives (2019) 1 2 Narratives Variance and Comparative (2018) Major Actual (2019) 1 3 Services charge provided free of 9.14 During the year the following services were provided other agencies to free charge of for functions outside the normal operations the Department: of

- 28 (62) 4,193 4,131 2,042 3,438 5,868 14,213 30,198 (8,637) ($000) actual 35,774 33,065 results results (32,705) for 2019 between between Variance Variance and 2018

- - - and (522) ( 7, 211) 24,747 (4,705) ($000) (6,000) actual 36,533 40,395 (58,425) (20,885) (11,227) (65,636) between between estimate estimate Variance Variance - (28) 500 2018 74,187 (2,042) 41,544 39,016 32,705 ($000) 77,625 Actual (27,197 ) (23,115) (42,412) (22,615) (122,972) - - - - 438 2019 5,868 77,625 55,757 ($000) 30,379 Actual 83,493 (6,638) (92,774) (18,922) (18,484)

- - - 2019 5,143 6,000 13,079 51,264 19,224 ($000) (7,257) (18,400) 149,129 136,050 (117,521) (47,033) Estimate 3 1 2

note

Variance Variance

AT THE END OF THEAT PERIOD CASH AND CASH EQUIVALENTS Sport Industries Cultural and Department of Local Government, Government, Local of Department Cash balance transferred the to

beginning of the period the of beginning Cash and cash equivalents the at Department of Treasury of Department Cash balance transferred from the Department of Treasury of Department Cash balance transferred the to Repayment of borrowings of Repayment Payments ACTIVITIES CASH FLOWS FROM FINANCING FLOWS CASH Purchase non-current of assets Payments ACTIVITIES CASH FLOWS FROM INVESTING FLOWS CASH

financing activities financing and cash equivalents Receipts from lease incentives Finance leases receipts Net cash provided by/(used in) cash in increase/(decrease) Net

Proceeds from borrowings from Proceeds Receipts assets Proceeds from sale non-current of Receipts investing activitiesinvesting Net cash provided by/(used in) 9.13.3 Statement of Cash Flows Variances (continued) Variances Statement Flows Cash of 9.13.3 Department of Finance Annual | 118 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 2018 51,300 ($000) 20,057 38,597 58,653 51,300 58,653 58,653 707,919 817,873 766,573 2019 19,729 51,300 ($000) 38,575 58,304 51,300 58,304 58,304 4 47,520 557,124 505,824 Department of Finance Annual | 121 Report 2018-19 Total Administered Non-Current Assets Non-Current Administered Total Total Administered Assets Administered Total Total Administered Current Assets Current Administered Total Total Administered Current Liabilities Current Administered Total Liabilities Administered Total Current Assets receivable Taxation Assets Non-Current receivables Other Liabilities Current payables Other Other debtors Other Other current assets 10.3 Administered assets and liabilities and assets Administered 10.3 - - 1 1 428 2018 2018 1,335 4,306 10.1 (5,213) 41,448 10.4 10.3 10.2 ($000) ($000) 64,035 64,035 252,165 252,165 Notes 6,743,012 6,743,647 7,100,660 7,059,847 - - 1 1 428 204 2019 2019 3,032 (3,256) 39,776 ($000) ($000) 64,355 64,355 207,3 02 207,3 02 7,0 07, 237 6,707,028 7,018,461 7,278,894 (a)

Revenue resulting from taxation, territorial revenue, regulatory fees and fines, sale of goods and services, rent whenand interest the transaction are, where possible, or event giving recognised rise the to revenue occurs. In some instances however, the revenue is not measurable until the cash is received.

Total Administered Expenses Administered Total Total Administered Income Administered Total

Grants, subsidies and transfers and subsidies Grants, Expenses expenses Other agencies other to transferred Collections Balance the at start period of identification where of those monies be are credited to or paid. identification the of purpose which of those monies were received or Income The purposethe of special purpose account hold funds is to pending COST OF SERVICES Departmental Receipts in Suspense Revenue – State Receipts Revenue Assessment and Collection, and Grants and Subsidies Administration Payments Balance at the end of period Receipts Balance at the end of period Balance the at start period of Level AgreementLevel Commonwealth. the with entered into transfer the Commonwealth to Australia of in accordance with the Service The purposethe of special account hold taxation is to collections pending Indian Ocean Territories Ocean Indian Payments Other revenue agencies other behalf of on raised Collections (a) 

Taxation Appropriations

Explanatory statement for Administered items – Income and Expenses and Income – items Administered for Explanatory statement Special purpose accounts – administered – Special accounts purpose service by expenses and income administered of Disclosure liabilities and assets Administered

10.2 Disclosure10.2 of administered income and expenses by service 10.1 Special administered accounts purpose – 10.1 Department of Finance Annual | 120 Report 2018-19

This section sets out all the statutory of disclosures regarding the financial performancetheof Department. 10. Administered disclosures 10. Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 123 Report 2018-19 Transfer Duty This estimate. is million primarily was $230 Transfer lower when compared reflecting theweaker 2019 than to anticipated demand in the housing market in part a tightening due in to residential lending criteria the course over financialyear. the 2018-19 of primarily reflectingLandholderthanfewer million anticipated lower inhigh 2019, value duty collections were $67.6 to tend transactions commercial value high these of value and/or The number transactions. landholder commercial be infrequent and volatile within and between years. Administered grants, subsidies millionlower and than other estimated transfer the at time payments were $25.7 million) budget, mainly reflectingthan lower expected $17.4 refunds (downof past years’ revenue the 2018-19 of refundsand Lower local from million). past government years’ rebates rates for pensioners and seniors $7.4 (down revenue was primarily in the area transfer of duty and payroll tax refunds. the impact due theto temporary of taxPayroll collections payroll than in 2018 million were $283 higher in 2019 tax scale change and growth implemented in collections onJuly 1 amongst 2018 the larger taxpaying industries, mining. including primarily reflecting whenweaker compared demand 2018, million to in lower in 2019 duty was $125 Transfer the housing in part market, a tightening due in to residential bank lending criteria the course over the 2018-19 of year. financial Landholder primarily duty number a fewer due collections to high compared of value 2018, decreased to in 2019 to tend transactions commercial value high these of value and/or The number transactions. landholder commercial be infrequent and volatile within and between years. The lower value first primarily of homeowners reflects grants paidweaker2019 in demandoverall in the housing includingmarket, first homeThis is buyersin part comparedtighteningto a due residential in 2018. with lending financialyear. criteria banks by the course over the 2018-19 of Major Estimateand Variance Actual Narratives (2019) 2 3 5 Narratives Variance and Comparative (2018) Major Actual (2019) 1 2 3 4

320 320 8,940 (1,672) 13,431 ($000) 19,268 actual results results (34,631) (34,631) (10,233) (10,233) (34,405) 283,295 263,590 219,046 (201,121) (82,200) for 2019 (125,392) between between Variance Variance and 2018

76 (86) (86) and (113) 3,412 7,8 61 (4,265) ($000) actual (67,625) 113,254 (19,660) (19,660) (25,665) (25,665) (86,290) (229,931) (131,701) between between estimate estimate Variance Variance (222,742) 2018 91,171 91,171 41,448 ($000) 64,035 64,035 Actual 175,428 842,502 160,994 160,994 625,564 234,496 354,663 6,743,647 3,284,154 1,226,205 7,100,660 7,059,847 2019 39,776 ($000) 33,375 64,355 56,540 64,355 56,540 Actual 150,761 150,761 188,859 808,097 644,832 363,603 1,100,813 7,0 07, 237 3,567,449 7,018,460 7,278,893

2019 176,42 64,441 64,441 ($000) 39,700 76,200 76,200 193,124 360,191 176,426 101,000 644,945 800,236 1,330,744 3,454,195 7,0 9 3,527 Estimate 7,410,594 7,241,202 5 5 1 3 4 4 2 note Variance Variance (b) (a) (b)

Other income includes Metropolitan Region Improvement Racing Tax, and Wagering Western Australia Other Tax, Dutiesand CommonwealthSubsidies and Mirror Other Taxes. Transfer Payments includes Pensioner concessions for Local Government and Water rates and Refund of Past Years Revenue.

Administered grants, subsidies subsidies grants, Administered and other transfer payments Insurance duty Land tax Payroll tax Landholder duty Vehicle licence duty Vehicle Other income Administered grants and transfer payments First Home Owners Grant 2000 Act Other revenue First Home Owners Scheme Home First Transfer duty Transfer

agencies Collections transferred to other other to transferred Collections expenses administered Total (b) (a)

Grants and subsidiesGrants Expenses

Taxation Income other agencies other Collections raised on behalf of behalf of on raised Collections Total administered income administered Total expenses Other

Appropriations Other revenue

ADMINISTERED ITEMS INCOME FROM FROM INCOME

$25 million. $25 and 2018 are shown below. Narratives are shown below. are provided major for key variances,and 2018 which are generally and greater than 5% All variances between and between estimates (original budget) theactual and actual results results for 2019 for2019, For the For year ended 30 June 2019 10.4 Explanatory10.4 statement for Administered Items – Income and Expenses Department of Finance Annual | 122 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Corporate Services Corporate Management Works and Building Strategic Projects CertificationPerformance Key of Indicators Performance Assessment State Revenue Procurement Government Indicators Key PerformanceKey Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Leads the planning and delivery major of government projects. building Leads the planning, delivery, management and maintenance projects buildings, government of officeand accommodation. Corporate servicesCorporate agencies. client to Revenue assessment and collection, and grants and administration. subsidies management and Development Commonof Use Contract Arrangements, Fleet State leasing and disposal and providing facilitation service for agency contracts. specific

in-house statistical data data in-house statistical survey-based the complements results and adds scope and objectivity the sources to of measuring used in information performance.our 5. 4. Services 1. 2. 3. Department of Finance Annual | 125 Report 2018-19 Measuring the Performance Performance the Measuring The Department Finance of performance its through measures statistical information and survey indicators Statistical questionnaires. are included help to report performance outcome inboth and service areas. The use of Outcomes outcomes desired The Government achieve to Department works the that services its through are: Value for moneyValue from the Government’s the of management and buildings non-residential works. public Due and payable revenue is collected and eligible grants, paid. subsidies and rebates for moneyValue from public procurement. sector Efficient and effective corporate agencies. services client to Desired outcomes Assessment Sustainable Finances Sustainable Finances financial Responsible management and better service delivery. Government goals Government Performance

I hereby certify performance that the key indicators are appropriate and relevant are records, proper on based for assisting users assess to the Department Finance’s of performance, and fairly represent the performance the of Department for the financialyear ended 30 June2019. Jodi Cant General Director 23 August 2019 For the endedFor June 30 year 2019 Indicators

Certification of KeyPerformance Department of Finance Annual | 124 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

100

ACTUAL 2018-19 (b) 100 TARGET 2018-19 100 ACTUAL 2017-18 Department of Finance Annual | 127 Report 2018-19 Thermoregulatory Dysfunction Energy Subsidy and the the and Subsidy Energy Dysfunction Thermoregulatory Scheme. Extension Concession Energy presented as a percentage. The percentages are then First Home Owner Grants, Pensioners and Seniors Rebates, the Subsidy, Electricity Support Equipment Life the averaged derive to the KPI result. The payments are for subsidy and rebate payments made during the and year’, assessment process by State Revenue. This indicator is calculated by dividing the ‘number of grants, subsidy and rebate payments correctly paid’ by the ‘number of grants, This indicator measures the accuracy of the revenue 99.9 ACTUAL 2016-17

(b) Extent which to correct grants, subsidies are and rebates paid (%)

(1)

1.11 ACTUAL 2018-19 1.03 TARGET 2018-19 (a) 0.99 ACTUAL 2017-18 these transactions after review, will be cancelled which will bring debt levels in line with target. a number of transactions that are being reviewed. It is expected tax, insurance duty and other miscellaneous duties) and presented as a percentage. This is a new indicator and results in 2018-19 for prior years have been back-cast for comparative purposes. The actual outstanding debt position at 30 June includes 2019 This indicator is calculated by dividing the total outstanding outstanding total the dividing by calculated is indicator This debt on hand at 30 June by the total revenue raised for the year for all tax lines (land tax, duties, payroll tax, betting 0.92 ACTUAL

2016-17

Debt as a percentage of revenue raised (%) (a) (1)

These indicators for revenue revenue for These indicators subsidy grant, and collection and payments rebate provide a measure the accuracy of the of process, assessment revenue the compliance level of by taxpayers and the timeliness assessments. processing of

The Department, through through The Department, the Office Revenue, of State administers range a revenue of onlaws behalf Government. of of collection the involves This revenue raised and payment of grants and subsidies under relevant legislation, as well as a number schemes. administrative-based of State Revenue Outcome 1 and collected is revenue payable Due and paid and subsidies rebates grants, eligible Indicators

Effectiveness Key Department of Finance Annual | 126 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

(2)

ACTUAL 10.76 2018-19 11.16 TARGET (b) 2018-19 10.84 ACTUAL 2017-18 Department of Finance Annual | 129 Report 2018-19 a higher than budgeted number of grants and subsidies. determination across all grant and subsidy lines administered by State Revenue. It is calculated by dividing the ‘total State Revenue grant and subsidy costs plus departmental overhead costs’ by the ‘total number of grant and subsidy This is a new indicator and results in 2018-19 for prior years have been back-cast for comparative purposes. actualThe average 2018-19 cost per grant determination was 4% below4% budgeted due lower to corporate costs as well as This indicator is used measure to the cost produce to a single 10.51 ACTUAL 2016-17

determinations’. (2)

(b) Average cost per grant or ($) determination subsidy

(1)

ACTUAL 25.91 2018-19 27.36 TARGET 2018-19 (a) 27.13 ACTUAL 2017-18 5% lower5% than budget due a reduction to in State Revenue costs and corporate oncosts. corporate and costs the ‘total number of tax or duty determinations’. This is a new indicator and results in 2018-19 for prior years have been back-cast for comparative purposes. The cost actual per assessment 2018-19 determination was or duty determination across all major tax lines administered administered tax lines major all across determination duty or by State Revenue. It is calculated by dividing the ‘total State Revenue costs plus departmental overhead costs’ by This indicator is used measure to the cost produce to a tax 25.35 ACTUAL 2016-17

(1)

Average cost per tax or duty determination ($) (a) and administrative schemes. The major the payments to relate First Home Owner Grant Scheme, as well as concessions on water localrates, government and rates the Emergency Services Levy for pensioners seniors. and The indicators represent the costs per unit taxation of raised and grant/ subsidy processed in a given year. account into with the notes Taken explaining any variances it provides a measure efficiency. of

This service involves the assessment and collection a range of statutory of based including revenue, duties, land tax and payroll tax, and those that are collected on behalf of Perthother agencies Parking (e.g. Licence fees on behalf of Department or Transport) of collection (e.g. jurisdictions other a rangeof taxes of for the Indian the in Commonwealth Revenue State Ocean Territories). is also involved in the assessment and payment a range of grants of and subsidies under statutory both State Revenue Service 1 collection, and assessment Revenue and administration subsidies and grants Indicators

Efficiency Key Department of Finance Annual | 128 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators (a) 4,823 ACTUAL 2018-19 4,575 TARGET 2018-19 4,701 ACTUAL 2017-18 Department of Finance Annual | 131 Report 2018-19 4,984 ACTUAL 2016-17 Average annual vehicle net capital cost ($) commercial vehicle per

(1)

(a)

(2)

96

ACTUAL ACTUAL 4,995 2018-19 2018-19 (b) 92 4,600 TARGET TARGET 2018-19 2018-19 93 4,754 ACTUAL ACTUAL 2017-18 2017-18 improved end end to processes when developing agency contracts. based on new data that has obtained better insights within the and decisions, business better enabling framework, CUA Common Use Arrangements being renewed with a focus This indicator is calculated by dividing the total number of satisfied responses by thetotal number of survey respondents for users of CUAs and clients of agency specific contracts. 950 surveysIn 2018-19 were issued with a response rateof 87% errorwith 1.25% sampling rate at the confidence 95% level. actual delivered2018-19 a higher than anticipated satisfaction rating. The increased result can be attributed a number to of vehicle usage levels, because of the reduction in the size of the the of size the in reduction the of because levels, usage vehicle fleet, leading lower to than anticipated resale values. through pro-active fleet and procurement management. management. procurement and fleet pro-active through minimises categories two into measure the Splitting fluctuations attributed a greater to or lesser ratio of replacements from either category, allowing for better year year to comparative assessments be to made. This is a new indicator and results in 2018-19 for prior years have been back-cast for comparative purposes. The higher than budgeted actual result is largely due higher to minimising purchase prices and maximising sale proceeds, proceeds, maximising sale and prices purchase minimising This indicator measures the Department’seffectiveness in 93 4,642 ACTUAL ACTUAL 2016-17 2016-17

(b) (2)

(1)

Average annual vehicle net capital cost ($) passenger vehicle per (a) agenciesExtent agree client their which that to Arrangements contracts Use Common and agency achieved value for money (%)

and disposal activities related to vehicle light government’s the fleet aimedat achieving a outcome value-for-money fleetfor the Government’s expenditure and revenue. through the aggregation of of aggregation the through management fleet acquisition, the the State Fleetthe State surveys. State Fleet is surveyed annually using a similar method value-for-money and other CUAs agencyto surveys; contract specific client agencies agree that their contracts are awarded on a basis; value-for-money economies scale of are achieved

b) c)

client agencies agree that Common Use Arrangements are awarded and (CUAs) managed on a value-for-money basis. This includes the results fromvalue-for-money This outcome deliver aims to procurement value-for-money services and frameworks across the Western Australian public for money Value is a key sector. policy objective and ensures the achieve authorities public best possible outcome for the amount money of spent when services. and goods purchasing for moneyValue from public considered is procurement sector effective if: a) Government Government Procurement Outcome 2 from money for Value procurement sector public Indicators

Effectiveness Key Department of Finance Annual | 130 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

(2)

110 ACTUAL 2018-19 124 TARGET (b) 2018-19 112 ACTUAL 2017-18 Department of Finance Annual | 133 Report 2018-19 reduction in costs. in reduction than budget as a result of operational efficiencies driving a The actual average administrative cost per vehicle is lower This indicator measures State Fleet’s administrative cost government of leasing the managing efficiency and financing in 104 ACTUAL 2016-17

vehicles. (2) (b) Average administrative cost per administrative Average financing and managing for vehicle service Fleet State the ($) (c)

(a)

(1) (3)

1.6 2.0

ACTUAL ACTUAL 2018-19 2018-19 1.7 1.4 TARGET TARGET 2018-19 2018-19 1.6 1.6 ACTUAL ACTUAL 2017-18 2017-18 19 actual19 result is slightly better than budget due to ‑ This indicator is used measure to how efficient the Department whole-of-government managing and developing in been has arrangements. contract use common The 2018 lower than estimated costs. This indicator is used measure to how efficient the Department has been in facilitating the development and management of of large value contracts earlier being awarded in 2017-18, expected. than agency specific contracts. specific agency The increase compared target to was due a lower to than forecast contract award value as a result of a number 1.5 2.0 ACTUAL ACTUAL 2016-17 2016-17 (c) (3)

Cost of facilitating the development and development the facilitating Cost of management of agency specific contracts as a percentage of the contract award value (%) (a) Cost of developing and managing Contract Use Common whole-of-government Arrangements as a percentage of the total annual purchases of value through arrangements the (%) (1) The Department is responsible for vehicle fleetmanaging the State’s ensureto an efficient and effective use government of vehicles with particular focus on the delivery of fleet. vehicle sustainable a demonstrates The indicator the efficiencyof managing the the of administration financing and fleet. vehicle light Government’s

The Department provides a to approach whole-of-government procurement that efficiently meets government needs of business the agencies, manages risk and delivers value for money. In facilitating the development and management client of agency contracts, fleet State and CUAs, the Department needs effectively to manage the cost delivering of this service which ensures agencies outcomes. value-for-money achieve Government Government Procurement Service 2 Common and management of Development leasing fleet State Arrangements, Contract Use service for facilitation providing and disposal and specificagency contracts Indicators

Efficiency Key Department of Finance Annual | 132 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 135 Report 2018-19 the Government Employees Superannuation An Board (GESB). fromexemption the requirements of Key 904 (2)(iv) Instruction Treasurer’s been has Performance Indicators, provided the Under by Treasurer.

Service 3 services agenciesclient Corporate to Effectiveness and efficiency reported for not are indicators this outcome as the it relates to services directly corporate provided the Departmentby support to the outcomes and activities of the Department and Treasury of Corporate Services Outcome 3 services corporate effective and Efficient agencies client to Indicators

Effectiveness

Key and Efficiency Department of Finance Annual | 134 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

14.42 ACTUAL 2018-19 (b) ) 2 14.50 TARGET 2018-19 14.65 ACTUAL 2017-18 Department of Finance Annual | 137 Report 2018-19 15 across the office accommodation portfolio and is calculated calculated is portfolio and office accommodation the across This indicator refers the to average workspace density level. whole-of-government the at ACTUAL 2016-17

(b) Average office accommodation Average floor space per work point (m

100

ACTUAL 2018-19 100 TARGET 2018-19 (a) 100 ACTUAL 2017-18 This indicator captures projects with an estimated total cost greater than or equal $5 to million that reached handover in anticipated the compares calculation The year. financial the final cost for each project with its current approved budget. Achievement of projects on-budget is an important requirement for client agencies and is a key contributor to indicator this 2018-19, to Prior outcomes. value-for-money measured percentage of projects delivered within percent 10 of approved budget. The percent 10 allowance has been removed onwards. from 2018-19 100 ACTUAL 2016-17 Percentage of new buildings projects buildings within new Percentage of the Building Management and Program, Works valued $5 over million, delivered within the approved budget (%) (a)

The Department, through Building Management and deliversWorks, a range services of lead the to planning and delivery a property of portfolio that supports the delivery government of services the community. to Building Management Works and Outcome 4 management the from money for Value non-residential Government’s the of buildings and public works Indicators

Effectiveness Key Department of Finance Annual | 136 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

(2) 75 ACTUAL 2018-19 (b) 80 TARGET 2018-19 75 ACTUAL 2017-18 Department of Finance Annual | 139 Report 2018-19 75 complexity of the works, availability of spare parts andaccess sites. regional to This is a new indicator and results in 2018-19 for prior years have been back-cast for comparative purposes. This indicator measures the percentage of high priority priority high of percentage the measures indicator This breakdown repairs attended within to the agreed timeframe. typically and time-critical more are priority breakdowns High include breakdowns or failures that have an immediate adverse effect on the security, safety and/or health of occupants. The buffer 10% which had been included in prior years has been removed for 2018-19. Achievement of the target was adversely impacted by the ACTUAL

2016-17

(b) (2) Percentage of high priority repairs completed breakdown agreedwithin timeframes (%) (c)

(3)

(1)

76 7.08 ACTUAL ACTUAL 2018-19 2018-19 (a) 100 8.28 TARGET TARGET 2018-19 2018-19 100 7.38 ACTUAL ACTUAL 2017-18 2017-18 costs as compared budget. to This indicator measures the costs of delivering Building Building delivering of costs the measures indicator This Management and Works services as a percentage of the Works Program Turnover (WPT) costs. This is a new indicator and results in 2018-19 for prior years have been back-cast for comparative purposes. The improvement actuals in the is largely 2018-19 due to reductions in both the total cost of services and turnover whilst the Onslow Health Services Redevelopment experienced experienced Services Health Redevelopment Onslow the whilst some delivered being project the to leading delays construction late. months four approvedhandover date. Of the remaining four projects, three were delivered within one month of the approved handover date Prior to 2018-19, this indicatorPrior 2018-19, to measured the percentage of more or million $5 of budgets approved current with projects that had been handed over the to client agency within three months of the approved date for handover in that financial year. The three month allowance has been removed for 2018-19. Thirteen new of the building 17 projects within the Building Management and Works program were delivered by the 100 7.07 ACTUAL ACTUAL

2016-17 2016-17 (c) (3)

Project, contract and administration costs to non-residential whole-of-government deliver maintenance and accommodationbuilding, services as a percentage of services delivered (%) Percentage of new buildings projects buildings within new Percentage of the Building Management and program, Works valued $5 over million, delivered the by approved handover date (%) (a) (1)

This service leads the planning, delivery and management a propertyof portfolio that supports the delivery of the community including services the government to delivery new building of works, maintenance programs and office buildings accommodation. existing for Building Management Works and Service 4 management delivery, planning, the Leads buildings, government of maintenance and officeaccommodation and projects Indicators

Efficiency Key Department of Finance Annual | 138 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 141 Report 2018-19

100 ACTUAL 2018-19 (a) 100 TARGET 2018-19 100 ACTUAL 2017-18 91 is a key contributor value-for-money to outcomes. to deliverto major projects for its client agencies within approved approved within projects significant Delivering budget. budget is animportant requirement for client agencies and This indicator demonstrates the ability of Strategic Projects Projects Strategic of ability the demonstrates indicator This ACTUAL

2016-17

Percentage of major projects in Strategic Projects’ program of works delivered forecast (or be to delivered) (%) budget approved within (a)

The Department works closely with agencies involved in the of development joint through projects risk high value, high business cases and Project DefinitionPlans wellas as joint responsibilities respective reflect to arrangements governance between the Department and the agency. Strategic Projects Outcome 4 management the from money for Value non-residential Government’s the of buildings and public works Indicators

Effectiveness Key Department of Finance Annual | 140 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

(2)

1.76 ACTUAL 2018-19 1.5 TARGET 2018-19 (b) 0.9 ACTUAL 2017-18 Department of Finance Annual | 143 Report 2018-19 overall value of the major project portfolio due to completion completion to portfolio due project major the of value overall of major projects such as the Optus Stadium, Perth Children’s Campus. Health Karratha and Hospital This indicator shows Strategic Projects ‘operational’ costs as as costs ‘operational’ Projects Strategic shows indicator This a percentage of the total costs associated with planning and program. projects major the delivering The increase in cost is the result of a reduction in the 0.5 ACTUAL

2016-17

(2) Cost of project management as a percentage of total project costs (%) (b)

(1)

60

ACTUAL 2018-19

100 TARGET 2018-19 (a) 50

ACTUAL 2017-18 Perth Children’s Hospital was significantly delayed by its before issues commissioning and construction commencement of clinical services in May 2018; Health Busselton and Prison Regional Goldfields Eastern commissioning and construction experienced Campus delays, however both are now fully operational; and The procurement process for Karratha Health Campus occurred operations to transition the ensure to delayed was wet season. after the 2017-18 requirement for client agencies and is a key contributor outcomes. value-for-money to Six of major the 10 projects overseen by Strategic Projects that were active have during been, or are 2018-19 expected be,to completed within approved timeframes. The remaining four projects were subject the to following delays: following •   • •  overseen by Strategic Projects and in progress (at the tender stage or beyond) during the financial year. Achievement of important an is timeframes approved within projects This indicator measures the number of projects that are forecast be to completed or have actually been completed as a percentage of the number of infrastructure projects projects infrastructure of number the of percentage a as 36 ACTUAL 2016-17 (1)

­ ­

Percentage of major projects in delivered program Projects’ Strategic forecast(or be to delivered) within timeframes (%) approved (a)

This service encompasses strategic leadership and facilitation This service leadership facilitation and encompasses strategic in the planning, project management and procurement of major new non-residential buildings. contributes It the to desired outcome value of for money from the management of works. and public buildings non-residential Government’s the Strategic Projects Service 5 delivery and planning the Leads buildings government major of Indicators

Efficiency Key Department of Finance Annual | 142 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Other Legal Requirements Requirements Policy Government Ministerial Directives Other Financial Disclosures Disclosures Governance Disclosures Overview Agency Financial Key Performance Disclosures Performance Statements Indicators - $000 19,198 33,792 42,609 total cost Estimated - - - $000 41,216

cost to complete Estimated $000 1,358 6,693 16,112 Actual 62,399 2018-19 expenditure expenditure Department of Finance Annual | 145 Report 2018-19 35 645 $000 6,881 77,924 Actual 2017-18 expenditure expenditure date 2019 2019 2019 2020 Expected completion Pricing policies in The Department’s fees and charges were reviewed in 2018-19 accordance Increases policy. with Government’s were theintroduced State achieve fullto cost recovery. Aside from the Department’s retained fees and charges, the Department collects fees and taxes on behalf a range of Government State of and other agencies with costings the respective set by agency pricing policies and processes. approval million on capital Finance investments. spent $94.47 of a total In 2018-19, The capital key projects included in this figure are detailed below: of services provided Capital works Financial Disclosures Other Project State Fleet annual vehicle acquisition program acquisition annual vehicle Fleet State New public sector officesFremantlefor Revenue Systems Consolidation and Enhancement Program Decentralisation office of accommodationto Joondalup Ministerial Directives requires the Department Instruction 903 (12) Treasurer’s directives ministerial any on information disclose to the settingrelevant to or achievement desired of activities, investment objectives, operational or outcomes and financingactivities. No ministerial directives were received during this year. financial Disclosures Department of Finance Annual | 144 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 0 4 6* 512.41 199.14 313.27 2018-19 2018-19 ($) 5 3 2017-18 4 2 2016-17 card expenses accumulated to million, which, of $512.41 $2.8 was identifiedto related as not departmental operations. These transactions represent less per cent than the 0.02 of Department’s credit total card during completed transactions the year. Department of Finance Annual | 147 Report 2018-19

Processes are in place ensure to the early detection inadvertent/ of accidental personal misuse of Department Finance purchasing of cards, and timely repayment associatedof costs. instances there were 15 This year, inadvertentof use credit of cards. The Department credit total Measure reporting period the for personal expenditure use of amount Aggregate Claims Aggregate amount personal of use expenditure settled the due (within by date 5 working days) Workers’ Compensation Workers’ Aggregate amount personal of use expenditure settled after the period (after 5 working days) Aggregate amount personal of use expenditure outstanding balance at date Lost time injuries time Lost The employee has commenced on a graduated Return Work to program. Liability on one lost time claim included in this calculation had not yet been decided as at 30 June 2019. Three of the five workers’ compensation claims approved were estimated lost time claims. These claims were provided with specialised injury management assistance and two have returned pre-injury to one capacity is currently whilst engaged in a Return Work to program. The matters were not referred for disciplinary action as the Chief Finance Officer noted prompt adviceand settlement of the personal use amount, and that the nature of the expenditure was immaterial and honest mistake. an of characteristic Workers’ Workers’ compensation the Department InstructionIn accordance 903 (13), with Treasurer’s disclosures. compensation workers’ following the had * Unauthorised use creditof cards The Department Finance of cards credit uses corporate as a purchasing reduce to tool the cost invoice of payments. There is a strong control framework in place support to the use of purchasing cards across the Department, supervisor including all staff of approval transactions. 1 919 9 722 82 106 2019 TOTAL 6 80 ON SECONDMENT 144 728 FULL-TIME CONTRACT FULL-TIME 958 FULL-TIME PERMANENT FULL-TIME 2018 PART-TIME MEASURED A FTE ON BASIS PART-TIME Source data: 2018-19 HR MOIR data Source 2018-19 data: .

Department have been included in the “On Secondment” category. Part time = hours less than full time per hours week. of 37.5 Both full-time and part-time employees seconded out of and paid by the Approved FTE was target 1,016. for 2018-19 The dataset which is collected from State WA Government Sector agencies is known as the Human Resource Minimum Obligatory Information Requirements (HR MOIR). 1 The majority Departmentof Finance of staff are employed under the Public Service and Public Service 1992 Award and Government Officers Four senior officers are employed underCSA General Agreement 2017. Salaries the of and conditions Allowances 1975 Act the Tribunal Industrial relations The Department also has an Agency SpecificAgreement in place with business for allowance vehicle motor program, wellness a for provisions use and flexibleworking arrangements. Notes: The workforce profile has changedfollowing conversion term contract fixed the of completion permanencyto process. - - The number FTE of employees has reduced with internal efficiencies, staffturnover and finalising of a number projects. of allocation by category by allocation equivalent (FTE)equivalent Comparative full-time - relations and industrial Employment Department of Finance Annual | 146 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

assessing the adequacy BMWof reporting on key during to committed projects the election, which has resulted in the Director General requesting the development a of mechanism assist to with reporting government on priorities; an extensive assessment of selection and recruitment purpose the processes for providingof advice to the Director General to enable a response a to Commission Sector Public query.

Department of Finance Annual | 149 Report 2018-19 providing assurances in providing design the to relation andoperational effectiveness the BMWof and Strategic Projects works funding (SP) models. This included assessing that costs are recouped accurately for the delivery capital of works projects through a fee for service arrangement and recommending an approach operate under to one funding model; assisting the Building Building the assisting Management and Works (BMW) with unit business the development of which Tool”, a “Risk Profiling provides the necessary prioritising for rigour areastreatment key of risksof potential relating to contaminationwater and school ceiling failures;

ensuring the Department’s AAR plan included coverage of including: emerging risks key •

further investigation; further investigation; ensuring the year that over all departmental policy and other relating documents governance risk, fraudto and audit matters remained current and relevant assistto with effective management practices; addressing the vast majority auditof findings raisedby a internal comprehensive security review information completed 2017-18. in late findingswere 210 of A total raised with only now 30 per cent). outstanding (14 During high risk the period, 16 findingswere addressed thewith remaining three near closure; and near closure; three remaining successfully completing all all completing successfully quarterly meetings and the work plan; 2018-19 commencing development of procurement fraud and analytics data corruption indicators identify to potential instances fraud of and undertake

• •

Audit and Risk and Audit Management Committee The Audit and Risk Management Committee oversees the operation the Department’s of audit and risk management Assurance Audit annual endorses the and functions, and Risk (AAR) the Committee Plan. This further year, enhanced audit and risk management operations within the Department by: • •

In 2018-19, the Department Finance of had In 2018-19, no board or committee costs and memberships. Board and committee remuneration Senior officers there were no disclosures from senior In 2018-19, officersthatthey held any shares,requirementa 903(14). Instruction Treasurer’s under of which senior officers, senior officersNo firms are members, or entities in which senior officers substantialhave had any interest interest, in existing or proposed contracts with the Department other than normal contracts service. of employment of Disclosures Governance Department of Finance Annual | 148 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators improvements with kitchen kitchen with improvements who employees for signage are vision impaired; and an upgrade intranet the DAIP of pages ensure to currency of information and resources to assist staff.

• • The Department takes a lead role across the driving sector by the DisabilityAustralian Enterprises Government through (ADE) initiative Procurement, which assists other GovernmentWA agencies to and capabilities the understand benefitsworkingof with ADEs.

Department of Finance Annual | 151 Report 2018-19

requirements with the Occupational Safety and Health team and assists them with an easy assimilation into their new work area when moving managers; changing or location a revision and upgrade of ‘Disability Department’s the eLearning module Awareness’ that all staff are required complete, and assiststo issues understanding their of around disability in the workplace community; wider the and in line with its ‘Diversity in a new ‘PassportFinance’ paper, Adjustment’ Reasonable - process was introduced. This offers employees with a recording of option disability the any unique personal work-based • •

further enhancement the of diversity in our workforce with the recruitment two of employees with a disability through the program; graduate Department’s a ‘Supporting Access and guest where event Inclusion’ speakers shared their experiences on working with a disability in government, and lessons DAIP on knowledge learnt. This the promoted and understandingdevelopment of accessof and inclusion across the Department; celebrating diversity and events understanding better a promoting accessof and inclusion across the Department; Disability Access and Inclusion Plan outcomes The Department is committed access to and inclusion for people with 2017-22, (DAIP) Plan Disability Inclusion and Access its Through disabilities. the Department seeks ensure to people with a disability an have equal level inclusionof and access services to and employment. The Department’s committee DAIP meets quarterly drive initiatives to and implemented initiatives DAIP New Plan. DAIP the by affected matters review included: 2018-19 in • • • 782 523 10,958 12,263 Amount $ , Nil Nil Nil Nil 12,263 Total $

direct mail 1907 Act the Electoral of In accordance with section 175E advertisingtotal related expenditure this year was $12,263. Expenditure on advertising, market research, polling and Legal Other Requirements Agency/Organisation Advertising Agencies Advertising Adcorp Australia Media Initiative Thomson Reuters Organisations Research Market Organisations Polling Organisations Mail Direct Advertising OrganisationsMedia Expenditure Total Department of Finance Annual | 150 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators various documents regarding undercontractual administration Common Use Arrangements. • for applications three 2018-19, In internal review were dealt with and there were no applications for external review. Department of Finance Annual | 153 Report 2018-19 documents held the Office by Revenue State of in relation companiesto under current including administration correspondence, payroll tax assessments, duties and information; account Strategic Projects the to related communications Project; Hospital Perth Children’s documents tender relating to assessments, evaluations and with associated decisions and projects; building • • • The FOI Act requires Government WA agencies give members to the of public right access of government to information. lodged with to formal access applications Statistical information relating details and more in the following table Finance under the FOI Act is provided of the Information of the Office can be found as part of the annual report Commissioner of WA. Finance received 38 access applications out which of two were In 2018-19, decisions Disclosure personal individuals their from requesting information. covered areas responsibility of and records held the Office by of State Revenue, Building Management and Government Works, Procurement and Corporate Services. The following were some the document of categories consideration: to subject were that

Accessing financial information Freedom of Information Act 1992 Act) (FOI Applications made under of section 10 the FOI Act of the Documentof Management System and progress the implementation a rendering of module that will ensure the long term preservation our of archival records. digital withdrawn andthe claim relating the Grievanceto Resolution Standard be finalised. to is yet Three cases non-compliance of with the Code Conduct of were finalised and oneformal grievance completed. was investigation procedures Departmental policies, and guidelines are maintained to satisfy requirements. legislative No disclosures were received in under the Public Interest 2018-19 Disclosure 2003. Act

An updated Recordkeeping Plan Plan Recordkeeping An updated has been submitted the State to approval Commission for Records and includes new procedures for Recordkeeping Our new digitisation. Plan embraces the Born Digital strategic direction and reflects our significant progress in achieving transformation. digital a The Department is continuing its testing in readiness for the upgrade sector standards. The Department 40 completed successfully recruitment processes this year applications 1,590 which from were received. breach standard of claims Two were lodged during the year. One claim a breach related to of the Employment Standard and the other claim a breach related to of Standard. Resolution Grievance the Employment the to relating The claim Standard was subsequently

recordkeeping system. recordkeeping to assistto employees navigate the provides user guides and contacts Manager support page that Manager support that page supported by our intranet Records Records intranet our supported by in on-boarding new employees, is which is an important an is which component all employees. The online program, Recordkeeping training program for for program training Recordkeeping a result has published a new online its recordkeeping program and as The Department continues review to processes complied with public public processes complied with Recordkeeping staff ensure to that recruitment guidance managers to and plans continued provide to proactive Over the year, the DepartmentOver the year, existing employees. sessions, tailored for new and through online and face-to-face delivering its training programs programs training delivering its the public sector code of ethics, ethics, of code sector public the with public sector standards and its good record in complying The Department has maintained

Compliance withCompliance

and ethicaland codes public sector standards sector public Department of Finance Annual | 152 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators 0 0 (a) 31 20 32 11 Number of contracts Building and construction 2019 construction and Building In 2018-19 all contractors met the In 2018-19 target No training contractors rate. applied for a variation the target to rate. training Department of Finance Annual | 155 Report 2018-19 ) that enter into these) that enter into Public Sector Management

All Government State with contracts, maintenance component labour estimated an million $2 of and and over; All Government State agencies defined(as in sectionof 3 Act 1994 contracts. • • the

All Government State building contracts, construction and civilincluding and engineering contracts with an estimated labour value million $2 of and construction the for over contract; the of component One contractor is yet commence to reporting. Reported Commenced reporting Awarded reporting period previous reporting from Continued Measure rate training Target Met or exceeded Did meet not Granted a variation (a) No maintenance contracts with a requirement meet to the target training were awarded in rate 2018-19. Government Government Building Training Policy The Government Policy increase aims Building to the number Training of apprentices and trainees in the building and construction requires It industry. contractors that are awarded Government State building, construction and maintenance commit contracts meeting to training to a target of rate of trainees. and apprentices Training Building The Government applies to: Policy • 3 0 8 0 4 0 1 1 2 (b) 41 41 25 42 38 38 2018-19 2018-19 2018-19

0 1 5 0 2 0 2 5 2 (a) 15 31 29 40 24 24 2017-18 2017-18 2017-18

Includes 8 applications carried over from 2016-17. Includes 6 applications carried over from 2017-18.

Average time to process timeAverage to (days) External reviews - complaints Internal reviews Reviews Full access Full Outcomes Applications New applications received during the year Edited access Edited access Deferred Section access 26 Section access 28 refused Access decisions Total other agencies to Transferred Withdrawn applications finalised Total Decisions made during the year the during made Decisions (b) (a) of theof Act FOI under section 10 under section 10 Applications made Department of Finance Annual | 154 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

access the online OSH module in our System. Management Learning An Activity Based (ABW) Work environment was successfully Osborne our at implemented Park location. (Optima) This regular undertaken through was addressing staff, with consultation their health and safety concerns, and has resulted in safely transitioning staff the ABW environment. into Staff were provided with a safety kit the the at new moving time of to relevant including environment work sessions and training. information sessions one-hour training Twelve were held help to staff understand the enable to and ergonomics principles of set upthem their to workstations to requirements. specific their MentalHealth During 2018-19, was an important element our of Wellbeing Program. As undertaken in previous years, the Department celebrated R U OK and Day Mental Health Week. A calendar events of was developed based on different wellbeing during topics within WA The Departmentthe year. offered a variety awareness of sessions as part its ongoing of commitment wellbeing. enhancing employee to such sessions 28 of A total were provided. Wellness topics included Mindfulness; Resilience; Building Stress Management; Growth Good Mental Promoting Mindset; Health. All Sessions were well attended and feedback was positive. good articles promoting addition, In health and wellbeing were published site. intranet Department’s the on Flu Clinics Vaccine were offered and a during April and 2019, May employees 326 of participated.total Department of Finance Annual | 157 Report 2018-19

the ongoing consultation on health, health, on consultation ongoing the safety and wellbeing matters; expansion a risk of management approach address to identified hazards in all our workplaces; and an invigorated program train to our Managers and Supervisors – an initiative that has been actively encouraged and supported the by Director General and Corporate Executive. A good initiative has been the delivery halfof workshops day for SHRs and First Aiders (in the regions as well as which has areas), metro been the first time these groups been have able to emerging discuss and meet collectively safety and first aid matters. Thiswas an opportunity for the Department to thank and acknowledge all our SHRs and First Aiders for their important contribution towards upholding health, safety and wellbeing in all our workplaces. An assessment the Department’s of occupational safety and health management was initially system undertaken during the2014-15 Plan WorkSafe the year using financial all the date of assessment To tool. been actioned have recommendations perwith approximately cent 75 included: These actions completed.  • •  •  to relating consultation Relevant Evacuation andEmergency, Safety procedures for the Department’s regional offices has commenced and is expected be finalised to overthe coming year. Eight half OSH day manager training sessions were held covering health, safety and injury management. Such training is offered Managers to and Supervisors as part our of ongoing their improve knowledgestrategy to and understanding health and on Employees were alsosafety. able to

and injury and SH O Our Department is committed to achieving excellence in the provision safe a workingof environment for and visitors contractors, employees, those who be may associated with we our operations.During 2018-19 beenhave progressively building on a culture where health, safety and employee wellbeing is a priority, all responsibilities their staff understand and are able safely to undertake their work, and staff are encouraged to report hazards so associated risks are assessed and managed in a manner. consultative has A focus during 2018-19 our all of consolidation been the Occupational Safety and Health reconstruct to policies related (OSH) the framework our of safety management By doing system. so canwe implement health, safety and planned a through initiatives wellbeing support with approach prioritised and Director the endorsementand from Executive. Corporate and General The Department works closely with all Safety Health Representatives across(SHR) its different work locations, who form an important part our of formal consultation mechanism. During 2018-19, inspections40 site were undertaken SHRsby within our regional as well as work metro locations. All identified hazardswere assessed being timeat of reported. Based on consultation between SHR, Management and staff relevant actions mitigate are taken to identified risks. The OSH Committee meets quarterly and monitors all incidents and hazards reported, and actions resolve taken to these. An important achievement is that we beenhave our able have regional to SHR actively participate in the OSH the through meetings Committee Skype Business tool. for management Staff have attended Aboriginal attended Staff have Cultural Awareness training that traditional history, the outlined life and of ways potential solutions closingto the gap with Aboriginal Peoples. In addition, the Department seasonal Noongar the launched calendar reflect to as a screen saver, Aboriginal seasons. six the The Department also promoted the International Against Day Interphobia Biphobia, Homophobia, help a to foster and Transphobia workplace. inclusive more The Department diversity champions and the at Optima Building location, a ‘Personal room Space’ has been made available for staff who have working needs the during religious The provide aim a private is to day. observations. religious for space

The Department Finance of advocates the provision services of that address the different needs diverse Western Australia’s of community and the elimination of discrimination. and bias systematic opportunity equality ensure of To for staff and clients, access, participation and equity needs are considered in the development and delivery the Department’s of policies services.and This year the Department trialled Unconscious to Introduction an Bias workshop for the Leadership This group. alumni Development different the highlighted workshop areas bias of and it how can affect views without people’s an individual. the understanding of This workshop has been now module online an as developed and is accessible all staff to Department’s the through system. management learning Substantive equality Policy

Government Requirements Department of Finance Annual | 156 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

All claimants claimants All 30 June 2019. Target achieved. Target Target achieved. Target achieved. Target Target achieved. Target returned work to within 13 weeks. within 13 claim made not as at Comment on result on Comment total, of which of four were total, with the decision on one one on decision the with Three estimated lost time Six claims were lodged in managers/supervisors on on managers/supervisors a return to worka return program. to estimated lost time claims Decision on one claim not not claim one on Decision made as 30 at June 2019. the year. One claimantthe has year. and two are participating in returned pre-injury to status An ongoing training program program An training ongoing is in place continually to train severity claims lodged during lodged during claims severity OSH and injury management.

0 or or on the on the Target previous previous Department of Finance Annual | 159 Report 2018-19

three years three three years three to be stated to At leastAt 0 or At leastAt 0 or Actual result Greater than than Greater Greater than than Greater equal 80% to equal 80% to 10% reduction reduction 10% 10% reduction reduction 10% 0 75

0.43 82% 100% 100%

2018-19 0 33 0.32 67% 33% 30%

2017-18 0 0 0.2 100% 100% 38.3% 2016-17 Percentage injured of workers returned work to weeks within 13 Percentage managers of trained in occupational health andsafety, injury responsibilities management Percentage injured of workers returned work to within weeks 26 Indicator Lost time injury and/or rate severity disease Number of fatalities of Number Lost time injury disease and/or incidence rate performance requirements 2018-19 Public Sector Commissioner’s Occupational Safety Healthand (OSH) .

The injury management system programand return-to-work are documented in our Injury supporting and Management Policy guidelines and all our processes are compliant with the requirements of Compensationthe Workers’ and Injury Management 1981 Act Personal issues represented the largest proportion referrals of at per cent83 per of cent and 17 referrals were attributed work to related matters. Based on trends identified thewith issuesreported the Departmentwas able offer to relevant employee well-being initiatives.

Employee Program Injury management Early intervention injury management assistance was offered all to employees on an ongoing basis, help eitherto them to or return to remain work at after an injury or illness, whether this be work or non- related. work Assistance The Department provides an Employee Assistance Program immediate and employees where family members can access professional and confidential counselling services. In 2018-19 there were 65 new referrals and 15 continuing referrals the provider. to Department of Finance Annual | 158 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators Department of Finance Annual | 161 Report 2018-19 Department of Finance Annual | 160 Report 2018-19 Overview Agency Financial Key Performance Disclosures Performance Statements Indicators

6551 1000 6551 1400 9262 16 Parkland Drive16 Osborne 6017 Park WA Address Postal Department of Finance - Head Office Optima Centre Locked Bag 44 Cloisters 6850 Square WA Phone: Revenue State - Finance Department of House QBE 200 St Georges Terrace Perth 6000 WA Address Postal GPO T1600 Box Perth 6845 WA Phone: CountryWA Callers: 368 364 1300 www.finance.wa.gov.au Website: [email protected] Email: Contact Us