Library: Departments of Premier & Cabinet Treasury & Finance Level 5,1 Macarthur Street East Melbourne Victoria 3002 . DX 210759 Pti: 03 9651 5660 Fax: 03 9651 5659 . Email: [email protected] p^-y^/v/IO nCJ
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VICTORIA. Department of Treasury and Finance
Annual Report - 1995/96 Department of Treasury and Finance 1 Treasury Place Melbourne Victoria 3002
Telephone: (03)9651 5111 n . Victoria Facsimile: (03)9654 7215 JAaA DTS 753 DX 21 ' VIC. JOINT DEPT. INFO. CENTRE -8 NOV 1936 _ ^b/ofaT LEVEL 3, 1 MACARTHUR STREET E. MELBOURNE VIC. 3002
The Honourable Alan Stockdale MP The Honourable Roger Hallam MLC Treasurer Minister for Finance Minister for Multimedia Minister for Gaming
1 Treasury Place MELBOURNE VIC 3002
Dear Ministers
I have pleasure in submitting to you a report on the operations and financial statements of the Department of Treasury and Finance, in accordance with Section 45 (6) of the Financial Management Act 1994, for the period 1 July 1995 to 30 June 1996, for presentation to Parliament.
1995/96 was again a year of significant achievement for the Department of Treasury and Finance. State debt was reduced by more than one third and a current account surplus was recorded for the second consecutive year. These efforts have been recognised with the recent upgrading by Standard and Poor's of the State's credit rating from "AA" to "AA+".
The Department consolidated its corporate headquarters during the year, relocating to the 1 Treasury Place / 1 Macarthur Street precinct in August and October 1995. Machinery of Government changes announced in April 1996 also impacted on the structure of the Department.
Finally, I would like to thank staff for their cooperation and participation in the Department's achievements during 1995/96.
Yours sincerely
Secretary 4 October 1996
y ICÎOriQ ON THE MOVE Department of Treasury and Finance Annual Report 1995/96
Published by The Department of Treasury and Finance © State of Victoria 1996
This book is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act
Address enquiries to: Aileen Martin 3rd Floor 1 Treasury Place Melbourne 3002 Telephone (03) 9651 5116
ISSN 1325-1775
Published October 1996
Design, typesetting and artwork by Creative Times, Richmond, Victoria
Printed by SAS General Printing, Richmond, Victoria. CONTENTS
ABOUT THE DEPARTMENT OF TREASURY AND FINANCE Objectives 5 Programs and people 5 Highlights of the 1995/96 Year 6
DELIVERING BUDGETS THAT ENHANCE THE STATE'S ECONOMIC GROWTH Budget sector surplus 7 Commonwealth grants 7 Specific Purpose Payments 8 The State's long-term credit rating 8 Reduced State debt 8 Outsourcing of capital works and infrastructure projects 8 Superannuation reform 9 Restructuring of Government financial commitments 9 External relations 9
IMPLEMENTING REFORMS THAT STIMULATE A COMPETITIVE ECONOMY Autumn Economic Statement 10 Electricity reform 10 Port reform 10 Gas reform 11 Water reform 11 Transport reform 11 Performance monitoring 11 Taxation implications of GBE reform 11 National Competition Policy 12 Employee relations 12 External relations 12
Tradition and Progress - the old Treasury Building and the current offices of the Department of Treasury and Finance. IMPLEMENTING BEST PRACTICE FINANCIAL AND RESOURCE MANAGEMENT ACROSS THE PUBLIC SECTOR Reform initiatives 13 Reforms in public sector employee relations 14 Other reforms 14 External relations 14
IDENTIFYING AND MEETING OUR CUSTOMERS' REQUIREMENTS 15 COMMITTING OUR STAFF TO EXCELLENCE 15 INTEGRATING THE PEOPLE, SYSTEMS AND ACTIVITIES OF THE DEPARTMENT 15 External Relations 16
FINANCIAL STATEMENTS Statement of Financial Position 18 Operating Statement 19 Statement of Cashflows 20 Notes to and forming part of Financial Report 21
APPENDICES Appendix 1 - Directory 41 Appendix 2 - Acts Administered 44 Appendix 3 - Regulatory and Legislative Changes 46 Appendix 4 - Information Available on Request and Compliance Index 48 Appendix 5 - Freedom of Information 50 Appendix 6 - Workforce Data 52 Appendix 7 - Consultants Engaged 55 Appendix 8 - Building Act Compliance 56 Appendix 9 - Boards and Committees 57 Appendix 10 - Overseas Visits 59 Appendix 11 - Publications 60 Appendix 12 - Promotional Activities and Presentations made by the Department 61 Appendix 13 - Functions and Services of the Department 63 Appendix 14 - Machinery of Government Changes 64
Part of the Department's display at the "Victoria On Show" exhibition, February 1996 Or Mike Vertigan, Secretary to DTF (centre) and the Department of Treasury and Finance Department's Deputy Secretaries Annual Report 1995/96 (from left), Mr Ian AU Little, Mr Ron Paice, Mr John Perham and Mr Frank King.
THE DEPARTMENT OF TREASURY AND FINANCE - PROVIDING LEADERSHIP IN ECONOMIC, FINANCIAL AND RESOURCE MANAGEMENT
The Department of Treasury and Finance was formed Programs and people officially in March 1995 with the joining together of the The Department works to achieve its objectives through former Department of Treasury and the Department of the delivery of core output groups: Finance. The merger was completed in October 1995. • Financial Management Services; The role of the Department is to achieve a strong economic base for Victoria and a sound financial position • Economic and Financial Policy Advice Services; for the State Government by providing advice, • Revenue Collection Services1; information and effective financial and resource management services. This role is reinforced in the • VPS Resource Management Services; Department's mission statement: "to provide leadership in • Reform and Privatisation Services; economic, financial and resource management". • Regulation Services1;
1 Objectives • Casino and Gaming Management ; and
Within the framework of this goal, the Department had • Energy Reform and Privatisation. six key objectives for 1995/96. Corporate support functions are provided by the Executive They were to: Support Branches within the Department, and the Corporate Resource Agency which also services the • deliver budgets that enhance the State's economic Department of Premier and Cabinet and the Office of the growth; Public Service Commissioner. • implement reforms that stimulate a competitive There are over 500 staff located at 1 Treasury Place, 1 economy; Macarthur Street and 35 Spring Street, Melbourne. The • implement best practice financial and resource Department is headed by Dr Michael Vertigan, the management across the public sector; Departmental Secretary, who reports to the Honourable Alan Stockdale MP, Treasurer of Victoria, and the • clearly identify and meet all our customers' Honourable Roger Hallam MLC, Minister for Finance and requirements; Minister for Gaming. (The Treasurer is also Minister for • develop staff committed to excellence; and Multimedia and is supported in that role by the Department of State Development.) • integrate the people, systems and activities of the Department. The organisational structure of the Department and the responsibilities of each area are presented more fully in the Appendices.
1 For information on the activities of the State Revenue Office, the Victorian Casino and Gaming Authority, and the Office of the Regulator-General, please consult the annual reports produced by each of these offices. Department of Treasury and Finance
Annual Report 1995/96 About the Department
Highlights of the 1995/96 Year In addition to reducing the State's debt, the reforms in state owned enterprises have been a major part of the In 1995/96 Victoria achieved real economic growth of Government's program to stimulate a competitive 4.3%. The Government achieved a current account economy. surplus for the second consecutive year. State debt was reduced by almost one third. • The restructure and first phase of privatising Victoria's electricity supply industry was completed. This has • The Department managed the State's budget to facilitated lower electricity prices for residential and achieve a budget sector surplus of $5,173.9 million. commercial consumers. With electricity tariffs being The impact of the net proceeds of privatisation sales held constant since November 1993, the real price to accounted for $4,699.9 million of this. Taking this into consumers has been substantially reduced. account, the underlying budget surplus was $473.9 million. • Reform of Victorian ports has already resulted in • The fall in State debt was due primarily to the sale of significant reductions in port charges. A 33% the five electricity distribution businesses and one reduction in Melbourne and 22% at Geelong have generator company, Yallourn Energy. Proceeds to the already been implemented. State were $10.74 billion - the Auditor-General has reported that this has resulted in the State obtaining Providing value for the Victorian public's dollar is an $5.4 billion more than the book value of the imperative for the Department of Treasury and Finance. businesses. To this end the Department introduced several important financial and resource management initiatives across the • In April 1996, Standard and Poor's confirmed public sector. Victoria's long-term credit rating at 'AA' and revised the outlook to 'positive', indicating that a further • A Trial Consolidated Financial Report for the upgrade was possible in the near future. (An upgrade Government of the State of Victoria was produced to 'AA+' was realised in September 1996.) and tabled in Parliament.
• A large amount of capital spending is being • The new ORACLE financial management system was undertaken by private operators under contract to the introduced to replace out-of-date software. It will Government as a way of improving the State's social provide the platform for consistent whole-of- and economic infrastructure. government financial management practices and reporting. • Major superannuation reform continued. The number of public sector superannuation schemes was reduced • Work began on an advanced budget management from 33 to 17. system which will be developed over the next three years. Completed in 1995/96 were the cost benefit • WorkCover is now fully funded. The Department analysis and design phases of the project. completed the overhaul of workers' compensation which represents savings to Victorian employers of • The Victorian Managed Insurance Authority Act 1996 $500 million a year. was passed which established the Authority as the successor to the Managed Insurance Fund and State Insurance Office. The Act establishes the framework within which insurance and risk management in the Victorian public sector is to be conducted. Dr Phyllis Rosendale, Director Intergovernment Financial Relations discusses the outcomes of the Department of Treasury and Finance Commonwealth Grants Annual Report 1995/96 Commission's visit to Victoria with Ian Little, Deputy j,>nn4 'Budgets Secretary Economic and Financial Policy (centre) and Mr Dick Rye, Chairman of the Commission.
DELIVERING BUDGETS THAT ENHANCE THE STATE'S ECONOMIC GROWTH
One of the Government's main objectives has been to The breakdown is as follows: strengthen the State's budgetary position, and reduce the - United Energy $1,553 million debt burden on all Victorians. In 1995/96, the - Solaris Power $950 million Department of Treasury and Finance had a major role in the achievement of this objective through managing the - Eastern Energy $2,080 million privatisation of a range of public authorities, and the - Powercor Australia $2,150 million application of the proceeds to retire debt and reduce interest payments. CitiPower $1,575 million - Yallourn Energy $2,428 million Public Sector Debt/GSP (%) • The Department also managed the following sales:
- the port of Portland $30 million
- the port of Geelong $50.5 million r - ! - World Trade Centre $103 million 8 - GFE Resources $56.2million 1• B (GFE Resources was the exploration component of 1 ä Hi the Gas and Fuel Corporation of Victoria.) ïj B • $60.5 million of surplus public sector property was sold during the year. 1 ; 1I 1 i Commonwealth grants I ¡1 The Commonwealth Grants Commission (CGC) makes 111 H recommendations as to what share of the $16 billion in
1990 1991 1992 1993 1994 1995 1996 1997 Financial Assistance Grants (FAGs) distributed by the Commonwealth each of the Australian States and | estimate only Territories is to receive.
• As part of the Commission's five-yearly review of its Budget sector surplus methodology, the Department hosted workplace The proceeds from the sale of electricity entities and other discussions with members of the CGC at a range of public assets are detailed below. The goal is now to keep service delivery sites across Victoria. The outcome of the current account in surplus without the effect of one- these discussions will be seen in the FAGs payable for off factors. the five years from 1999/2000.
• The five electricity distribution businesses and one • The Department coordinated the annual data generator company, Yallourn Energy, were sold collection for the 1996 Update, attended conferences between August 1995 and March 1996. The income with and made submissions to the Commission, and of $10.74 billion from the sales has contributed an coordinated the Administrative Scale survey. overall financial benefit to the State Budget from privatisation of $103.4 million in 1995/96 growing to $473 million in 1996/97. Department of Treasury and Finance
Annual Report 1995/96 Delivering Budget*
Specific Purpose Payments Reduced State debt
Specific Purpose Payments comprise $11 billion in tied Reducing the State's debt and other liabilities and annual grants from the Commonwealth Government to delivering a current account surplus yields considerable the States. They are grants of money to be spent for a benefits. Reduced interest payments on borrowings specific purpose. The Department's role is to support the alleviates the pressure which those payments exert on Treasurer and liaise with line agencies in their negotiations taxes or expenditure on service delivery. with the Commonwealth to gain the best outcome for Victoria. • By 30 June 1996, net debt had fallen to around 12% of GSP for the budget sector and less than 17% of • Liaison and negotiations during 1995/96 related to a GSP for the public sector overall. As a result, budget number of subjects including: sector interest payments declined from 14.7% of revenue and current grants in 1994/95 to 12.4% in the report on the review of the Australian 1995/96. This represents a budget sector interest National Training Authority (ANTA) Agreement; payment of $1.9 billion in 1995/96. the Medicare Agreement; • With the emergence of a Budget surplus, priority has the Home and Community Care Agreement; been given to infrastructure renewal and to bringing General Recurrent Grants for Schools; and Victoria's tax effort into closer alignment with the average of Australian States. The Department has various proposals for longer-term reform of the undertaken long-term economic and financial analysis Commonwealth-State Housing Agreement. of the available options.
The State's long-term credit rating Outsourcing of capital works and The credit ratings assigned by the major rating agencies infrastructure projects such as Standard & Poor's and Moody's Investors Service, Outsourcing of functions and projects to private providers provide both domestic and international investors with a is a way of efficiently providing quality services, while globally consistent framework for comparing the credit giving the Government access to private sector skills and quality of rated credit issuers. capital. The private sector is also being involved in projects • As at 30 June 1996, Victoria was rated at the same for the provision of public infrastructure. level by both major US rating agencies. Standard & Identifying, quantifying and managing the financial and Poor's rated Victoria at 'AA' (rating outlook revised to other risks attached to these projects is an important step positive in April 1996) and Moody's rated Victoria at to ensuring that the Government obtains the best deal 'Aa2'. (Beyond the 1995/96 year, in September 1996, and limits its exposure to future liabilities. Standard & Poor's raised Victoria's rating to 'AA+', one grade below the highest rating grade of 'AAA'.) • In 1995/96, the Department established risk management processes for Melbourne City Link, one of the largest infrastructure projects ever undertaken in Australia, and for other major outsourcing projects such as the Bureau of Emergency Services Telecommunications and the Latrobe Regional Hospital.
• Contracts were signed for construction and operation of two new private prisons at Melton and Fulham to replace Pentridge Prison, Metropolitan Reception Prison and Sale Prison.
Members of the Budget working group (clockwise from front left): Mr Frank King, Mr Richard Whitelaw, Ms Anna Hooi, Ms Margaret Bradshaw, Mr Richard Clarke, Mr Bernard Castin, Mr Ralph Booth, Mr Ian Little, Mr Peter Fuhrmann, Mr Nick Legge and Mr lain Bramley. Superannuation reform Receptionist, Greg Lavis with Mark In addition to reducing State debt, the reforms in Johns, Budget superannuation also contributed to the minimisation of Analyst and Jan the State's risks and liabilities. Warren from the Minister's Office • The Government's first term superannuation reform at the third floor agenda was completed with the successful passage of reception area, i Treasury Place. legislation through Parliament. In addition to the reduction of public sector superannuation schemes from 33 to 17, this legislation enabled:
implementation of a program to fully fund the smaller Victorian public sector defined benefit schemes;
implementation of a return to work program for former disability pensioners of the State Superannuation Fund; and
an increase of $22 million in gross annual revenues after a review of superannuation recoups from Commonwealth funded agencies.
Restructuring of Government financial commitments
• The refinancing of the National Tennis Centre was completed. This terminated the 1988 contractual arrangements, reducing the costs to Government arising from that transaction, and incorporated financing arrangements to allow the development of Stage 2 to proceed.
External relations
• The Economic and Financial Policy Division presented regular analyses of the Victorian economy in the quarterly Victorian Economic Review.
• The Intergovernment Financial Relations Branch hosted international delegations from the Planning Committee of Hunan Province, People's Republic of China, the South African Financial and Fiscal Commission, and the Ministry of Finance, People's Republic of China.
• During the year, the Department also hosted Treasury representatives from Thailand and Croatia. Presentations on a range of budget issues were made to these groups. Department of Treasury and Finance 10 Annual Report 1995/96
Una Cold, Manager, Reform Policy, meets with David Brooks, Assistant Director, Budget Coordination and Information Systems. IMPLEMENTING REFORMS THAT STIMULATE A COMPETITIVE ECONOMY
Continuing reform of Government Business Enterprises • The Department is making a significant contribution (GBEs) and the industries in which they operate is a high to the development of a national electricity market. It priority for Government because of the strategic has worked on the establishment of transitional importance of this sector for promoting a higher arrangements for the market and an agreement sustainable rate of economic growth. Competition between Victoria, New South Wales and the ACT for between service providers improves efficiency and an early start to interstate trade. responsiveness to customer needs. This is the over-arching aim of the GBE reform program. • The establishment of the National Electricity Market Management Company (NEMMCO) and the National Electricity Code Administration Company (NECA) Autumn Economic Statement commenced during 1995/96. • The Department is responsible for developing the policy framework that underlies the annual Autumn Port reform Economic Statement. This year it delivered a framework which integrates the fiscal sustainability In addition to reducing costs for users, port reform will achieved over the past three years with the goal of mean a more efficient port system in Victoria and attract increased competitiveness of the Victorian economy. new investment and employment opportunities. • The Port of Melbourne Authority was restructured to Electricity reform create two new organisations: the Melbourne Port Corporation, which was established in March 1996 to The sales of the five electricity distribution businesses and undertake core landlord functions and plan future Yallourn Energy completed the first phase of the State's development for the Melbourne port area; and the electricity privatisation program announced in January Victorian Channels Authority, which is responsible for 1995. Reform of the electricity supply industry has the management and maintenance of channels in introduced competition and choice for a number of large Victorian "port waters". A subsidiary of the Victorian users. Work is also being done on developing a Melbourne Port Corporation, Melbourne Port Services national electricity market which will encourage trade in Pty Ltd., now provides contestable services in the electricity in south eastern Australia, initially between the Melbourne port area such as cleaning, maintenance States of Victoria and New South Wales and the and security. Australian Capital Territory (ACT). • Significant reductions of over 30% in port usage • The industry in Victoria has been restructured from a charges have already been achieved at the port of vertically integrated monopoly into five regulated Melbourne, and usage charges were cut by 22% at distribution businesses, five generation businesses, the port of Geelong prior to sale. Staged reductions, one regulated transmission system business, and a reaching at least 20% over the next four years, were wholesale electricity market and systems operator. mandated as part of the sale of the port of Portland. Department of Treasury and Finance 11 Annual Report 1995/96
Gas reform Transport reform
A new competitive gas industry structure is being The Government announced that the Public Transport developed with the aim of securing lowest sustainable gas Corporation would be disaggregated to create new prices for consumers. corporatised entities providing metropolitan tram, bus and rail services. • During 1995/96, the Department examined options to create more competitive production and • As a first step, the Department began an analysis of distribution/marketing sectors, and to introduce direct the V/Line and MetBus businesses. Work also access to gas pipelines. Work also proceeded on continued on analysis of V/Line Freight accounting developing a third party access regime and tariff and cost data, and on the analysis required to develop reform for the gas industry. rail access prices in Victoria.
• The Government constrained gas tariffs with no increase for 1995/96. Performance monitoring
• The Department was instrumental in achieving • The Department introduced independent and improvements in operational efficiency for GASCOR objective performance monitoring for all corporatised during 1995/96. It was involved in the outsourcing of GBEs. This framework will provide advice to the mains and services work, gas supply services, Treasurer, as "shareholding minister" on individual mainframe data centre services, remittance GBE Corporate Plans, development of key processing, messenger services and payroll/HR performance indicators and quarterly reviews of actual services. performance.
Water reform Taxation implications of GBE reform
Structured water reform has already led to significant Following a Federal Treasurer's press release of 3 July productivity improvements, while prices to customers 1995 foreshadowing major tax policy reforms, the have been frozen at 1994 levels. Department negotiated with the Commonwealth on the tax consequences arising when government • The Department's involvement in the water reform businesses become Commonwealth taxpayers upon program continued and included completion of a privatisation. Clarification of the scope of the review of metropolitan retail companies' licences (in Commonwealth reforms and how tax changes would conjunction with the companies, the Office of the be implemented, enabled Victoria to continue its Regulator-General and the Water Bureau); electricity reform program successfully. development of a new set of service standards for licensees; and the development of a framework to As part of the Department's progressive enable licensing of non-metropolitan urban water implementation of a tax equivalent system (TES) for authorities. GBEs, there were four new income tax equivalent payers and seven new wholesale sales tax payers. Six other taxpayers exited the scheme due to privatisation. During the year, 60 tax rulings were provided to GBE taxpayers and two TES audits were undertaken.
The Department prepared and lodged the first Mr Neil Taylor, detailed submission (and thus a test case) for sales tax Director, Business compensation from the Commonwealth in March Enterprises in the 1996. This test case is based on an estimate of the Privatisations and Industry Reform "windfall" sales tax revenue gain to the Division, at work in Commonwealth following privatisation of a business the Department's previously exempt from tax. The submission is offices at i Treasury consistent with principles formerly agreed by Heads of Place. Treasuries. The Commonwealth is considering the submission from the perspective of establishing a consistent framework to progress future applications. 12 Department of Treasury and Finance Annual Report 1995/96 ttwletn :•>
National Competition Policy Employee relations
The Department of Treasury and Finance ensures that the • Structural change, corporatisation, privatisation and reform and restructure of government businesses are in contracting out in the electricity industry, ports, the line with the principles of National Competition Policy. health sector and the gas industry were carried out in 1995/96 with minimal employee relations disputation • Achievements during 1995/96 included the joint and costs, thus contributing to the value of the development with the Department of Premier and businesses sold. Cabinet of the policy statement on competitive neutrality. This statement outlines the reform path and timetable for removing any competitive advantages External relations that government businesses may have. These • Peter Noble, Director of Project and Outsourcing advantages may include, for example, exemption Development, visited the United Kingdom to study from taxes or not counting all the costs of producing a development of the Private Finance Initiative - that good or service. country's government policy on developing private • A Complaints Unit was established within the sector provision of infrastructure and other services. Department so that the Government can make sure He also attended the Eighth Meeting of the that its businesses compete fairly with private Organisation for Economic Cooperation and businesses. The Complaints Unit is an avenue for Development (OECD) Advisory Group on Privatisation private sector businesses to seek action where they in Paris in October 1995 and presented a paper believe they face cases of unfair competition from a entitled "Private Sector Investment in Infrastructure government business. The Unit's establishment will Projects: The Case of Victoria". also encourage government businesses to implement • John Perham, Deputy Secretary and Director of competitive neutrality in their operations. Privatisations, presented the keynote address to the • In 1995/96, a levy was introduced to offset the New Zealand Utility Market Summit in June 1996. advantage that GBEs may have in borrowing money • Peter Troughton, Project Leader, Electricity, presented at lower rates than private sector entities. The levy is a paper, "Unlocking Competition in the Victorian paid to the government and means that GBEs and Electricity Supply Industry", to the Transpower New private companies will operate on a more equal Zealand Conference in March 1996. footing. In the last financial year, the levy was paid by a number of GBEs in the electricity, gas and • A number of presentations were made by the metropolitan water industries. All major GBEs will Outsourcing and Contract Management Unit to a become subject to the levy over the next two financial range of public forums on the role of outsourcing as a years. means of reforming service delivery within the Victorian public service, the methodologies adopted, and the challenges and issues faced by the public service in undertaking outsourcing projects.
Staff at work in the refurbished offices at i Treasury Place. IMPLEMENTING BEST PRACTICE FINANCIAL AND RESOURCE MANAGEMENT ACROSS THE PUBLIC SECTOR
The State's fiscal position has been strengthened by • The Consolidated Asset Report (CAR) Project greater efficiency in the delivery of government services. commenced in May 1996. Its purpose is to develop a The efficiency gains have been achieved by exposing central financial and non-financial asset report government services to contestable markets and by software system on the Department's computer internal management reforms. Public sector managers are network. This will complement the installation of now more focused on efficiently delivering, in a quality asset management systems in agencies and sustainable manner, high quality services. underpin the provision of quality information for capital planning at the whole of government level. The Department is a major participant or leader in implementing best practice financial and resource • The Department has taken the following preliminary management in the State Government. steps in implementing output management, an approach that will reform budget sector management to focus on outcomes and outputs rather than inputs: Reform initiatives development of the Financial Management • The Trial Consolidated Financial Report for the Victorian Framework; Government was produced in accordance with proposed accounting standards. It is a consolidation of all release of the Guide to Corporate & Business controlled entities that form the Government of Victoria Planning; and and its production will be mandatory from 1997/98. The release of the Guide to Output Specification and Report presents an unaudited Operating Statement, Performance Measurement. Statement of Financial Position, Statement of Cash Flows and associated Notes. It is envisaged that for the year • The Department continued to increase the attention ending 30 June 1998, this Report will be fully audited paid to risk identification and management. and provide comparative data that will facilitate a The Victorian Managed Insurance Authority Act detailed analysis of the Government's overall 1996 was passed in the Autumn 1996 sitting of performance. Parliament. The Authority is expected to be • The new Financial Management System incorporates operating from October 1996 as a central risk a relational data base, a new Public Ledger and an manager and insurer for the budget sector and Accrual Ledger, and a range of sophisticated participating bodies. communication tools. It enables reporting on During 1995/96, the definition of financial Government-wide spending and achievements, and arrangements (derivatives) in the Borrowing and provides a sound basis for the development of an Investment Powers Act 1987 was expanded to advanced Budget Management System, which will enable authorities to enter into derivatives to provide contemporary modelling capabilities to assist manage risks and exposures on both sides of their with the medium term planning (one - four years) of balance sheets and to acquire and dispose of the State's finances. assets and liabilities. These broader powers are, A contingent liabilities database was constructed. While however, only accessible with the approval of the it was designed on a stand alone basis, it has the ability Treasurer and are subject to conditions intended to be integrated into the new Financial/Budget to prevent authorities from using derivatives for Management System at a later stage. The database will speculative purposes. be available for use in preparing the Financial Statements and the Statement of Contingent Liabilities. 14 Department of Treasury and Finance Annual Report 1995/96
Reforms in public sector employee The Department of Treasury and Finance Discussion relations Forums continued in 1995/96. The forum meets at quarterly intervals and provides opportunities for • As at mid-June 1996, 76% of public servants had exchange of information on budget, financial, signed employment agreements based on the 5 level accounting and other issues relevant to budget sector broadbanded structure. Pay based on assessed managers and corporate planners. performance has replaced the previous incremental structure. 58% of eligible public servants have signed The Department hosted a delegation from the further two year productivity agreements accepting Vietnamese Government in March 1996. The focus of the Government's 4% plus 3% salary offer. the visit was the budget process and the integrated financial management systems being implemented in the Victorian Public Service. Other reforms The Budget papers and Government purchasing • In response to purchasing reforms introduced by the information services are now published on the Victorian Government Purchasing Board (VGPB), the Internet. Departments of Premier and Cabinet and Treasury and Finance established a joint Accredited Purchasing Unit (APU). The role of the APU is to coordinate and oversee purchasing practices and reform within the two departments. With accreditation, the department is now able to undertake its own approval process up to agreed financial levels and manage its own contracting for departmental specific common use requirements.
• The Outsourcing and Contract Management Guidelines were published to help managers in the public sector identify and implement outsourcing opportunities.
• There were major changes in the government printing arrangements during 1995/96. Operations of Printing and Publishing Services (PPSV) ceased on 2 December 1995, and the Department awarded contracts to private sector suppliers for the publishing of legislation and parliamentary printing. Legislative database management has been transferred to the Office of Chief Parliamentary Counsel within the Department of Premier and Cabinet.
External relations • The Department chairs the National Health Ministers' Benchmarking Working Group. This Group is part of the Council of Australian Governments' (COAG) (From left) Mr Ron Barnes, Commissioner, Dr Mike program to develop benchmarks for different areas of Vertigan, Secretary to DTF and Mr Fred Argy, service delivery so that State and Commonwealth Commissioner, share a relaxed moment after a hard day's work during the Commonwealth Governments can measure their performance in these Grants Commission's visit to Melbourne. areas. Show" exhibition, February 1996
IDENTIFYING AND MEETING OUR CUSTOMERS' REQUIREMENTS
COMMITTING OUR STAFF TO EXCELLENCE
INTEGRATING THE PEOPLE, SYSTEMS AND ACTIVITIES OF THE DEPARTMENT
The Department relocated to 1 Treasury Place in August • Following the performance reviews in September 1995 and to 1 Macarthur Street in October 1995. A new 1995, the Human Resource Strategy Branch put corporate staffing structure was finalised following the together a training framework for the next 12-18 machinery of Government changes after the State election months which addresses the needs identified. in March 1996. Communications skills workshops for all staff underpin In addition to achieving its budgetary, reform, and the Department's training strategy. The framework financial and resource management objectives, the concentrates on personal development, providing Department set itself three corporate objectives that general training for skills and knowledge that are would ensure delivery of high quality services. important for staff across all areas of the Department.
It would identify and meet its customers' requirements. • The Senior Executive Forum met quarterly to discuss strategic issues and approaches for building a The Department's primary customer is the Government of corporate culture which will achieve the Department's the day. The Government's reform program has resulted in goals and priorities. It is a key part of the an increased awareness of the importance of the Department's strategic planning cycle. Department's relationship with the rest of the public service. The Department would fully integrate its people, systems and activities. • The Department's business plan has a focus on service outputs. The plan identifies the core services and how • A replacement departmental financial management they can be efficiently delivered. system, supporting all finance areas of DTF and the State Revenue Office, was implemented from 1 July The Department would develop staff committed to 1995. The new system replaces seven separate data excellence. base systems as well as a number of manual systems • The performance management scheme has and spreadsheets. established six monthly performance reviews and • As part of the transfer of non-core functions to the annual salary-related assessments for departmental private sector, IT functions were outsourced to Unisys officers in the VPS structure. The performance pay from 16 August 1995. The Corporate Resource system is based on the concept of "continuous Agency (CRA) managed the transition of these improvement", as assessment is made each year services, which are provided to both of the central against new performance criteria. agency departments, and is responsible for ongoing contract management. Department of Treasury and Finance
Annual Report 1995/96
• Provision of human resource services to the Department was outsourced to Andersen Consulting. The new arrangements came into effect in February 1996. The CRA is responsible for management of the HR contract and works closely with Department representatives to ensure the appropriate, timely and ongoing delivery of HR services.
• Work was also undertaken on the integration of executive support systems and the delineation of Corporate Resource Agency functions from core departmental responsibilities.
External Relations Part of the Department's display at • The Financial Management Division sponsored and the "Victoria On Show" exhibition, coordinated a VPS-wide graduate development February 1996 scheme for Accounting and Finance graduates. The objective of the scheme is to provide departments with a medium-term skills base to support and implement financial and accounting reforms.
• The Department marketed its achievements to the public through its involvement in the "Vic On Display" exhibition in October 1995 and at "Victoria On Show", the official opening event at the new Melbourne Exhibition Centre in February 1996. The theme for the Department's display was "Securing Victoria's Financial Future".
• Peter Vodicka, Director Human Resource Strategy, was invited to Perth in May 1996 to give a presentation to various Western Australian State Government officials on the successful outsourcing of human resource services to Andersen Consulting.
Department of Treasury and finance
Annual Report 1995/96
i 4 « if * * * - ""î* äV % * * ' ^
STATEMENT OF FINANCIAL POSITION As AT 30 JUNE 1996
1996 1995 NOTES $'000 $'000
Current Assets Cash 11 29,603 33,442 Trust Funds 12 23,402 16,782 Inventories 13 183 1,308 Receivables 14(a) 3,950 3,777 Prepayments 1,817 1,409 Investments 15 247,952 TOTAL CURRENT ASSETS 306,907 56,718
Non-Current Assets Receivables 14(b) 600 Land and Buildings 16 174,789 160,148 Plant and Equipment 17 41,797 56,143 TOTAL NON-CURRENT ASSETS 217,186 216,291
TOTAL ASSETS 524,093 273,009
Current Liabilities Funds Held in Trust 12 23,402 16,782 Creditors and Accruals 18 8,093 23,549 Lease Liabilities 19 344,899 6,966 Provision for Employee Entitlements 20(a) 3,978 6,149 Other 9,288 9,860 TOTAL CURRENT LIABILITIES 389,660 63,306
Non Current Liabilities Lease Liabilities 19 45,296 21,919 Provision for Employee Entitlements 20(b) 8,470 11,055 Unfunded Superannuation Liability 21 14,280,900 12,184,764 TOTAL NON CURRENT LIABILITIES 14,334,666 12,217,738
TOTAL LIABILITIES 14,724,326 12,281,044
NET ASSETS/(LIABILITIES) (14,200,233) (12,008,035)
Equity Accumulated Deficit 22 (14,227,842) (12,035,644) Asset Revaluation Reserve 27,609 27,609 TOTAL EQUITY (14,200,233) (12,008,035) Commitments for Expenditure 19 Contingent Liabilities 25
The Statement of Financial Position should be read in conjunction with the accompanying notes.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 1 ( i * ( ^ ' '
OPERATING STATEMENT YEAR ENDED 30 JUNE 1996
1996 1995 NOTES $'000 $'000
Operating Expenses Employee Costs 4 101,678 76,638 Supplies and Services 198,929 112,076 Depreciation and Amortisation 5 32,043 30,575 Superannuation 6 472,742 Resources Provided Free of Charge 2,089 7,084 Other 7 55,979 18,286
TOTAL OPERATING EXPENSES 863,460 244,659
Operating Revenue User Charges 8 101,720 49,353 Interest 251 449 Other 9 172,108 3,179
TOTAL OPERATING REVENUE 274,079 52,981
NET COST OF SERVICE BEFORE ABNORMAL LOSS 589,381 191,678
Add Abnormal Loss 10 2,097,900 20,550
NET COST OF SERVICE AFTER ABNORMAL LOSS 2,687,281 212,228
Government Revenue Special Appropriations 6 417,538 Recurrent Appropriations 233,792 189,076 Works and Services Appropriations 205,022 52,795 Appropriations of other Departments 2,733 Resources Received Free of Charge 11 Receipts Forwarded to Consolidated Fund (190,579) (20,144)
TOTAL GOVERNMENT REVENUE 668,517 221,727
1NCREASE/(DECREASE) IN NET ASSETS BEFORE RESTRUCTURING (2,018,764) 9,499
Net Expenses from Restructuring (10,364) -
INCREASE/(DECREASE) IN NET ASSETS AFTER RESTRUCTURING (2,029,128) 9,499
The Operating Statement should be read in conjunction with the accompanying notes.
K Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Statement of Ctuhf
STATEMENT OF CASHFLOWS YEAR ENDED 30 JUNE 1996 1996 1995 NOTES $'000 $'000 Cashflows from Operating Activities Payments Employee Costs 103,920 74,245 Supplies and Services 167,647 112,273 Superannuation 478,933 Other 70,475 17,571
TOTAL PAYMENTS 820,975 204,089
Receipts User Charges 108,446 51,670 Interest 260 409 Other 146,972 4,599 TOTAL RECEIPTS 255,678 56,678
NET CASH OUTFLOW FROM OPERATING ACTIVITIES 23 565,297 147,411
Cashflows from Investing Activités
Payments Land and Buildings 25,598 32,256 Plant and Equipment 9,051 9,130 Investments 48,099 Return of Capital 306 493 Other - 905 TOTAL PAYMENTS 83,054 42,784 Receipts Disposal of Assets 4,550 1,276 TOTAL RECEIPTS 4,550 1,276 NET CASH OUTFLOW FROM INVESTING ACTIVITIES 78,504 41,508 Cashflows from Financing Activities Receipts Movement in Public Account 62 Payments Transfer of Funds to Other Agencies - 500 Repayment of Lease Liabilities 23,458 10,242 NET CASH OUTFLOW FROM FINANCING ACTIVITIES 23,396 10,742
Appropriations Special 417,538 Recurrent 233,792 189,076 Works & Services 205,022 52,795 Receipts Forwarded to Consolidated Fund (190,579) (20,144) NET CASH INFLOW FROM GOVERNMENT 665,773 221,727 Net lncrease/(Decrease) in Cash Held (1,424) 22,066 Cash at the beginning of the Financial Year 31,027 11,376 :ASH AT THE END OF THE FINANCIAL YEAR 29,603 33,442 The Statement of Cashflows should be read in conjunction with the accompanying notes. Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes tc and farming part eft the Financial .Report
OTES TO AND FORMING PART OF THE FINANCIAL REPORT r 30 JUNE 1996
Summary of significant accounting policies
(a) Basis of Accounting
The Financial Report is a general purpose financial report which has been prepared in accordance with the Financial Management Act 1994 and applicable Accounting Standards, including the accrual basis of accounting.
Except for certain assets which are at current cost valuation and long service leave liabilities which are measured at the present value of expected future payments, the Report has been prepared on an historical cost basis.
(b) The Reporting Entity
Following the State Government election, government departments were restructured on 3 April 1996 in line with a revised allocation of Ministerial responsibilities. However government departments are required to report the restructure effective from 1 July 1995.
Changes to the Department of Treasury and Finance resulting from the restructuring are summarised as follows:
Transferred out of the Department: To: • Office of Surveyor General ] Department of Natural • Office of Valuer General ] Resources and Environment • Office of Geographic Data Coordination ] • Office of Local Government Department of Infrastructure
Transferred to the Department: From: • Gaming (including the Victorian Casino & Gaming Authority) Department of Arts, Sport and Tourism • Energy Policy Department of Agriculture, Energy and Minerals • Public Sector Employee Relations Department of Business and Employment The following entities/business units have been aggregated in this financial report: • State Revenue Office • Printing and Publishing Services Victoria • Statewide Mobile Radio Network • State Government Vehicle Pool
(c) Administered Resources
The Department administers certain resources on behalf of the Victorian Government, for example, taxes raised by the State Revenue Office. It is accountable for the transactions involving those administered resources, but does not have the discretion to deploy the resources for the achievement of the Department's objectives. The accrual basis of accounting hits been used in accounting for administered resources.
Transactions and balances relating to these administered resources are not recognised as Departmental revenues, expenses, assets or liabilities, but are disclosed in the Financial Statements at Note 3.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 V' l(»s f* «rs i fit*j . • t • I
T !, "i , - fx/ ,-ltt
1. Summary of significant accounting policies - continued
(d) Tnjst Funds
The Department has received monies in a trustee capacity for various trusts as set out in Note 24. As the Department performs only a custodial role in respect of these monies, and because the monies cannot be used for the achievement of the Department's objectives, they are not brought to account in the Statement of Financial Position and Operating Statement.
Revenues and expenses associated with trust funds/working accounts which are integral to the operations of the Department, and form part of the day to day functions of the Department, have been recognised in the Operating Statement and Statement of Cashflows. Assets and Liabilities associated with these trust funds have been included in the Statement of Financial Position.
(e) User Charges, Fines and Fees
User charges controlled by the Department are recognised as revenues. User charges raised by business units are controlled by the Department where they can be deployed for the achievement of Departmental objectives.
Taxes, Public Authority Dividends, fines and fees collected but not controlled by the Department, are not recognised as revenues in the Operating Statement or Statement of Cashflows, but are reported as administered revenues in the Program Schedule (Note 3). Such amounts are required to be paid to the Consolidated Fund.
(f) Appropriations
Amounts appropriated for controlled transactions are recognised as Government Revenue in the Operating Statement.
Amounts appropriated for administered transactions, eg. transfer payments to eligible beneficiaries in accordance with legislation or other authoritative requirements, are not recognised in the Operating Statement or Statement of Cashflows, but are reported as administered Government Revenue in the Program Schedule (Note 3).
(g) Acquisitions of Assets
The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Department. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including architects' fees and engineering design fees and all other costs incurred in getting the assets ready for use. The capitalisation threshold is $1,000.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition.
Fair value is the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction.
(h) Revaluations of Non-current Assets
All non-current assets, other than receivables and investments, are proposed to be revalued to their written- down current cost every 5 years with the exception of Land and Buildings which are revalued every 2 years. Revaluation increments are credited directly to the Asset Revaluation Reserve while decrements are expensed to the Operating Statement.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 <\i il S ?C û'''t ("t p
if'/' !'//,ifm (t;{ V>-t>oit
1. Summary of significant accounting policies - continued
(i) Depreciation of Non-current Assets
Depreciation is calculated on a straight line basis to write off the net cost or revalued amount of each non- current asset over its expected useful life. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items. Land has not been depreciated.
(j) Surplus Land and Buildings
Surplus land and buildings, which fall within the Government's Asset Sales Program, and which are not controlled by the Department, are not reported by this Department. Responsibility for these assets remains with the relevant agency until the total sale price is fully discharged. In the case of Public Transport Corporation properties which are surrendered to the Crown prior to disposal, these properties are treated as Administered assets in the Department's financial report.
(k) Employee Entitlements
(i) Wages and Salaries, Annual Leave and Sick Leave
Liabilities for wages and salaries, annual leave and sick leave are recognised, and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date.
(ii) Sick Leave
As it is considered that non-vesting sick leave to be taken in future reporting periods will not exceed entitlements which are expected to accrue in those periods, no provision has been made.
(iii) Long Service Leave
A liability for long service leave is recognised for all staff (previously, in the main, assumed by the Victorian Government), and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given, when assessing expected future payments, to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates attaching, as at the reporting date, to Commonwealth Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outflows.
The following assumptions were adopted in measuring present value: Weighted average rates of increase in annual employee entitlements to settlement of the liabilities 5.2 % Weighted average discount rates 8.75% Average terms to settlement of the liabilities 12 years
(iv) Superannuation
Superannuation expense relates to the reporting period and represents the Department's contributions determined under various Superannuation Acts.
(I) Superannuation
An unfunded superannuation liability exists because funds' assets are not sufficient to cover members' accrued benefits as actuarially assessed at 30 June 1996. Government policy on this liability is that the net unfunded amount for the entire budget sector should be taken up in the accounts of the Department of Treasury and Finance. (Refer Note 21 for further details.)
Superannuation expenditure shown in the Operating Statement also relates to the entire budget sector.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes tc ami forming put c$ the Financial Report
1. Summary of significant accounting policies - continued
(m) Investments
Investments are brought to account at cost. Interest revenues are recognised as they accrue. Investments and investment income are disclosed as administered items in the Program Schedule (Note 3).
(n) Leases
A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits.
Where a non-current asset is acquired by means of a finance lease, the asset is established at its fair value at the inception of the lease. The liability is established at the same amount. Lease payments are allocated between the principal and interest expense.
Operating lease payments are representative of the pattern of benefits derived from the leased assets and accordingly are charged to the Operating Statement in the periods in which they are incurred.
(o) Resources and Assets Provided Free of Charge
In order to reflect the total cost of service delivery, resources provided free of charge to other Departments have been separately reflected within the Department's expenses. In the case of an asset provided free of charge, an adjustment is made in the asset and accumulated depreciation account to reflect the transfer of the asset.
(p) Comparative Figures
Figures for 1995 have not been amended to take account of machinery of Government changes and reclassification of revenue and expense items.
(q) Rounding
Unless otherwise shown, all amounts have been rounded to the nearest thousand dollars. 2. Programs of the Department The identity and purpose of each major program undertaken by the Department during the year ended 30 June 1996 are summarised below.
Program 740 - Executive Support Services
To develop a customer orientation throughout the Department, staff commitment to excellence, and to focus an integrated Department.
Program 741 - Business Services
To provide right Government services at least cost, transfer non-core activities to private sector and improve public sector management practices.
Program 742 - Financial Management Services
To implement accrual accounting across Government and consolidated financial reporting of Government, enhance Government asset management, manage insurable risk, improve skills base (accounting) and communication within Government, and develop integrated financial management systems for accrual management accounting.
Financial Statements Department of Treasuiy and Finance
Annual Report 1995/96 Mofeé to and farming part of¡ the Financial Report
2. Programs of the Department - continued
Program 744 - Economic and Financial Policy Advice Services
To reduce debt and the debt service ratio, establish a long term budget, tax and debt strategy, maximise Commonwealth grant share, identify and transfer non-core activities to the private sector, and provide advice to the Treasurer and other customers.
Program 745 - Revenue Collection Services
To collect revenue due to the Government of Victoria.
Program 746 - VPS Resource Management Services To manage the State by outputs and results, support provision of services at least cost, develop a medium term budget strategy reflecting agency outputs and service costs, and service demand, undertake the Government's central resource planning and review activities, and provide advice to the Treasurer and other customers.
Program 747 - Reform and Privatisation Services
To develop and implement Industry Policy, develop and monitor policies for Government Business Enterprises, restructure, reform and privatise entities, and provide strategic advice to the Secretary and Treasurer.
Program 750 - Casino and Gaming Management
To regulate and facilitate the operation of a fair and secure gaming and wagering industry, free from criminal influence and responsive in a well managed way which optimises the social and economic benefits for all Victorians.
Program 751 - Energy Reform and Privatisation
To formulate energy policy advice and pursue the Government's reform of the electricity, gas and aluminium industries. 3. Departmental and Administered Transactions In addition to the Departmental operations which are included in the Statement of Financial Position, Operating Statement and Statement of Cashflows, Departments undertake activities on behalf of the Government. These administered transactions are reported in the notes to the Financial Statements. Administered transactions relate to activities which the Department administers or manages on behalf of the Victorian Government. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues include taxes, fees and fines and the proceeds from the sale of surplus land and buildings. Administered liabilities include government expenses incurred but yet to be paid. Administered assets include government revenues earned but yet to be collected.
Departmental and administered transactions are disclosed by class and by program in the following tables.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes to and forming part eft the Financial Report
3. Program Schedule - Revenue and Expenses for the year ended 30 June 1996
Program Program Program Program Program 740 741 742 744 745 $'000 $'000 $'000 $'000 $'000 Department's Revenues and Expenses Revenues User Charges 2 125,464 1,772 Special Appropriations 2,298,969 2,759,773 Annual Recurrent Appropriations 2,476,566 61,627 1,100 29,628 44,758 Annual Works and Services Appropriations 253,682 39,422 48,099 Appropriations of other Departments - 2,733 Resources Received Free of Charge - - 11 Receipts Forwarded to Consolidated Fund (9,688,227) (25,653) Interest - 251 Other (21,180) (66,649) 29,843 217,117 (227) TOTAL (4,680,188) 137,195 30,954 3,054,617 46,303 Expenses Employee Costs 8,040 2,479 3,053 4,331 25,971 Supplies and Services 12,453 113,848 1,656 3,279 14,820 Superannuation - 1,600 454,296 Depreciation and Amortisation 1,102 21,071 124 150 9,160 Resources Provided Free of Charge 28 2,061 Net Expenses from Restructuring - 10,026 Other 2,738 28,466 294 32,546 143 Abnormal Item 2,097,900 TOTAL 24,361 179,551 5,127 2,592,502 50,094
Administered Revenues and Expenses Revenues Commonwealth Receipts 3,349,319 Special Appropriations 331 Recurrent Appropriations 1,476 Works and Services Appropriations Dividends 132,764 Financing Income 64 217,159 Taxation 36 6,244,844 Resources Received Free of Charge - 5,800 Other - 46,799 183,143 Abnormal Gain 104,209 TOTAL 36 52,599 64 3,986,594 6,246,651 Expenses Transfer Payments 6,156 6,043 16,997 70,852 Resources Provided Free of Charge - 3,300 Interest Expense - Borrowings 1,606,191 Other 2,244 3 535,067 6,769 Abnormal Loss 39 2,311 TOTAL 8,439 11,654 17,000 2,212,110 6,769 RECEIPTS FORWARDED TO CONSOLIDATED FUND - (60,499) ADMINISTERED REVENUES LESS ADMINISTERED EXPENSES (8,403) (19,554) (16,936) 1,774,484 6,239,882
* Financial Statements Department of Treasury and Finance
Annual Report 1995/96 hi it % iC % ,'iiU f , ! iL- > f H't C$ Uu !am ,>< n%\ ort
Program Program Program Program Other Not Total 746 747 750 751 Attributable 1996 $'000 $'000 $'000 $'000 $'000 $'000
(25,518) 101,720 (4,641,204) 417,538 1,227 1,220 4,790 (2,387,124) 233,792 280 533 (136,994) 205,022 2,733 11 (480) 9,523,781 (190,579) 251 10,797 224 2,183 172,108 12,024 (256) 1,500 7,506 2,332,941 942,596
51,348 5,948 384 1,739 (1,615) 101,678 3,420 56,782 464 5,600 (13,393) 198,929 16,846 472,742 227 182 27 32,043 2,089 145 193 10,364 480 1,096 654 204 (10,642) 55,979 2,097,900 72,466 64,008 1,502 7,763 (25,650) 2,971,724
882 3,350,201 12,445 4,641,204 4,653,980 2,337,467 2,338,943 88,507 88,507 5,051,107 5,183,871 217,223 327,944 1,055,121 (2,270) 7,625,675 5,800 7,032 145,246 861 383,081 104,209 7,032 5,524,297 1,067,566 1,743 7,064,908 23,951,490
30,602 134,065 12,445 882 278,042 3,300 1,606,191 77,261 861 (2,270) 619,935 1,759,565 1,761,915 30,602 1,970,891 12,445 1,743 (2,270) 4,269,383
(1,055,121) (9,523,781) (10,639,401)
(23,570) 3,553,406 (2,456,603) 9,042,706
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes tc ami forming part of
3. Program Schedule - Assets and Liabilities as at 30 June 1996
Program Program Program Program Program 740 741 742 744 745 $'000 $'000 $'000 $'000 $'000 Department's Assets and Liabilities Assets Current 11,011 42,056 115 250,566 2,529 Non-Current 2,110 203,741 490 591 8,772 TOTAL 13,121 245,797 605 251,157 11,301 Liabilities Current 4,938 51,018 6,978 319,602 4,436 Non-Current 915 497 569 14,326,465 3,482 TOTAL 5,853 51,515 7,547 14,646,067 7,918
Administered Assets and Liabilities Administered Assets
Receivables - - 8,658 1,571,691 41,223
Investments 22,283 - 716,449 183,999 -
Inventories - 14,322 - - 10,894
Trust Funds - - - - 3
Cash - - 19,415 - 658 TOTAL 22,283 14,322 744,522 1.755,690 52,778 Administered Liabilities
Advances Received (5,963) 6,000 - 1,576,477 -
Borrowings - - 573,000 14,669,486 -
Creditors and Accrued Expenses - - - 406,212 -
Funds Held in Trust 22,283 - 624,728 - -
Other 11 - - 148,800 1,178 TOTAL 16,331 6,000 1,197.728 16,800,975 1,178
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 mmmmm Ncte& to and forming part off the Financial Report
Program Program Program Program Other Not Total 746 747 750 751 Attributable 1996
$'000 $'000 $'000 $'000 $'000 $'000
350 220 748 (688) 306,907 771 627 84 - 217,186 1 121 847 832 (688) 524,093
1,029 752 2 929 (24) 389,660 1,367 1,169 202 - 14,334,666 2,396 1,921 2 1,131 (24) 14,724,326
7,032 86,261 - - - 1,714,865 370,457 - - - 1,293,188 25,216 3 20,073 7,032 456,718 - - - 3,053,345
1,576,514 15,242,486 5,873 - - - 412,085 647,011 1,600,000 - - - 1,749,989 1,605,873 - - - 19,628,085
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes to and forming part cf the Financial Refwrt
4. Employee Costs $'000 Wages and Salaries 50,732 Termination Payments 46,181 Superannuation Expense 4,523 Other Employee Related Expenses 242
4 101,678
5. Depreciation and Amortisation Expense $'000 Depreciation and amortisation were charged in respect of: Buildings 15,122 Leased Assets 7,671 Intellectual Property 6,520 Computers and Communication Equipment 2,037 Furniture and Fittings 364 Motor Vehicles 298 Leasehold Improvements 31 32,043
6. Superannuation This amount relates to payments of pensions and lump sums for the entire budget sector and is funded by Special Appropriation. These payments were previously reported under Note 3 as Administered Expenses.
7. Other Expenses $'000 Other expenses includes: Finance Charges relating to Finance Leases 31,704 Transfers to Working Accounts 19,898 Other Expenditure 1,655 Bad and Doubtful Debts 1,486 Audit Fees: Internal 304 External: - Statement of Financial Operations & Departmental Financial Report 626 - Other 215 Ex Gratia Payment 91 55,979
8. User Charges $'000 Rental Accommodation and Associated Recoupments 82,442 Revenue Generated from Business Units 17,506 Other Fees and Charges 1,772 101,720
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 ' "A to find §ermin$ part of the Financial Report
9. Other Operating Revenue $'000 Superannuation Recoupments* 124,273 Dividends and Transfer of Funds 29,727 Incentive Payments from Landlords 10,444 Administrative Recoupments 3,157 Miscellaneous 3,032 Profit on Sale of Fixed Assets 480 Commission Received 569 426 Contract Payment from Hansen Corporation 172,108
* Previously reported under Note 3 as Administered Revenue. 10. Abnormal Loss $'000 Increase in Superannuation Unfunded Liability: - Public Transport Corporation 1,571,500 - Other 526,400 2,097,900 Also refer to Note 21
11. Cash $'000 Rental Accommodation Trust Account 13,072 Cash held by the Office of Building 7,025 Deposit - Commonwealth Public Sector - National Debt 2,959 Business Units Working Accounts 4,647 Public Account - Salaries & Wages in Suspense 1,351 Deposit - Treasury Corporation of Victoria Capital Account 528 Other 21 29,603
12.Trust Funds $'000 Finance Agency Trust 10,296 Treasury Trust Funds 6,295 Performance Incentive Trust 3,099 Asset Sales Deposit Trust 2,381 Agriculture Projects Trust 727 Victorian National Disaster Relief 194 Companies Liquidation Trust 45 Security Deposits Trust 13 Other Trust Funds 352 23,402
The Department has recognised monies held in trust on behalf of other parties as current assets and current liabilities.
13.Inventories $'000 Stationery & Office Supplies 76 Work in Progress 72 Consumables 24 Finished Goods for Sale 11 183 I
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes to and forming part off the Financial Report
14.Receivables $'000
(a) Current Assets - Receivables Fees Receivable by Business Units 5,435 Provision for Doubtful Debts (1,485) Si • 3,950
(b) Non-Current Assets - Receivables Revenue from Sale of Equipment 600 600
15. Investments $'000
247,952
This amount represents the value of bonds purchased by the Department in 1994/95 and 1995/96, in respect of the Accelerated Infrastructure Program. The proceeds of the bonds (issued by a special purpose public company - ' Property Leasing Limited) were used to finance the construction of police stations, court buildings and other buildings for government use. The bonds have been purchased to facilitate a restructure of the leasing arrangements related to those buildings.
16.Land and Buildings $'000 Land
Land & Improvements - at Department's Valuation/Cost 63,632 63,632 Buildings
Buildings at Valuation/Cost 123,221
Accumulated Depreciation (12,064)
Written Down Value 111,157
TOTAL WRITTEN DOWN VALUE OF LAND AND BUILDINGS AT DEPARTMENT'S VALUATION/COST 174,789
Valuations of land and buildings were determined by the Valuer-General's Office in July 1995, with the exception of the valuation of land at the Westernport Estates which were valued by senior officers of the Victorian Government Property Group of the Department.
These valuations were carried out in conformity with the accounting policy "Recognition and Valuation of Non- Current Physical Assets'* issued by the Financial Management Division of the Department of Treasury and Finance.
Assessment of economic life of each building was made by officers of the Victorian Government Accommodation Group of the Department and was based on local market expectations and fabric/services of those buildings.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes to and forming part cfj the Financial Report
17.Plant and Equipment $'000 Plant and Equipment Plant and Equipment at Cost 1,722
Accumulated Depreciation (910)
Written Down Value 812:
Generic Revenue Collection System Generic Revenue Collection System at Cost 12,241
Accumulated Depreciation (6,978)
Written Down Value 5,263 ;
Computer Equipment Computer Equipment at Cost 8,646 Accumulated Depreciation (5,562)
Written Down Value 3,084:
Motor Vehicles Motor Vehicles at Cost 5,585 Accumulated Depreciation (270)
Written Down Value 5,315
Furniture and Fittings Furniture and Fittings at Cost 771 Accumulated Depreciation (399)
Written Down Value 372 ;
Leased Assets Plant and Equipment at Cost 47,499 Accumulated Amortisation (22,347)
Written Down Value 25,152
Financial Management System Financial Management System at Cost 1,334 Accumulated Depreciation (267) Written Down Value 1,067
Municipal Valuations Database
Municipal Valuations Database at Cost 13,082
Accumulated Amortisation (12,350)
Written Down Value 732
TOTAL WRITTEN DOWN VALUE OF PLANT AND EQUIPMENT 41,797
m Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes to and farming part of the Financial Report
18.Creditors & Accruals $'000 Supplies and Services 7,188 Employee Costs 905
8,093
19.Commitments for Expenditure $'000 (a) Finance Leases Current 344,899 Non-current 45,296 390,195 Commitments under finance leases at the reporting date are payable as follows: Not later than one year 345,005 Later than one year and not later than 2 years 6,567 Later than 2 years and not later than 5 years 38,736 Later than 5 years Minimum lease payments 390,308 Less: Future finance charges 113 390,195
(b Operating Leases Commitments under non-cancellable operating leases at the reporting date are payable as follows: Not later than one year 5,126 Later than one year and not later than 2 years 5,029 Later than 2 years and not later than 5 years 12,078 Later than 5 years 10,506 32,739
These operating lease commitments are not recognised as liabilities in the Statement of Financial Position.
(c) Capital Commitments Capital expenditure contracted for at the reporting date but not recognised in the Financial Report as liabilities: Building improvements, fit-outs and maintenance 8,530 8,530
20.Provision for Employee Entitlements $'000 Recreational Leave Liability 3,761 Long Service Leave Liability 217 (a) Current Employee Entitlements 3,978 Long Service Leave Liability 8,470 (b) Non-Current Employee Entitlements 8,470
12,448
Financial Statements Department of Treasury and Finance
Annual Report 1995/96
Mofeé to ana pi: »m$ part o|
ti:t* JV»tu*í».»tt! >ivpcrt
21.Unfunded Superannuation Liability
The gross unfunded liability at BO June 1996 of superannuation funds operated principally for budget sector employees was $15,630m, as shown below.
Not all of the $15,630m is to be met from superannuation outlays of the budget, as some is to be met from the revenues of the respective organisations. For example, in accordance with the State Superannuation Act 1988 the Government, through the Consolidated Fund, is primarily responsible for meeting the employer's share of the unfunded liability of the State Superannuation Fund. However, under the terms of that Act, the Minister for Finance can effectively pass this unfunded liability to individual authorities.
The total unfunded liability to be met from non-budget revenue at 30 June 1996 amounted to $1,349m as shown below. The non-budget figure previously included the unfunded liability of the Public Transport Commission (PTC). During the year this PTC liability ($1,571,5m at 30 June 1995) was reclassified as a liability to be met from Budget Outlays.
Fund $MILLION State Superannuation Fund'1' 14,115
Emergency Services Superannuation Fund 1,227
Hospitals Superannuation Fund 266
Parliamentary Contributory Superannuation Fund 22
Sub Total 15,630
Liabilities to be met from Non-Budget Revenue (1,349)
Liabilities to be met from Budget Superannuation Outlays 14,281
(1) Includes the Transport Superannuation Scheme and the State Employees Retirement Benefits Scheme which were merged with the State Superannuation Fund on 31 May 1996. 22. Changes in Equity Accumulated Asset Total (Surplus) Deficit Revaluation $'000 $'000 $'000
Balance at the beginning of the Financial Year 12,035,644 (27,609) 12,008,035
Recognition of Departmental Assets/Liabilities 163,070 163,070
Decrease in net assets 2,029,128 2,029,128
Balance at the end of the Financial Year 14,227,842 (27,609) 14,200,233 23. Reconciliation of Net Cost of Services to Net Cash Outflow from Operating Activities $'000 Net Cost of Services before Abnormal Loss 589,381
Items not involving Cash Depreciation and Amortisation (32,043)
Change in Operating Assets and Liabilities Employee Entitlements 2,242 Creditors and Accruals (12,684) Receivables 18,401 Net Cash Outflow from Operating Activities 565,297;
Financial Statements Department of Treasury and Finance
Annual Report 1995/96
24.Trust Funds $'000 The Department manages the cash management/treasury functions associated with the following trust funds which are disclosed as Administered Assets and Liabilities. State Government Funds 733,195 Joint Commonwealth and State Funds 3,614 Commonwealth Government Funds 24,378 Prizes, Scholarships, Research and Private Donations 5,608 ' . 766,795 25. Contingent Liabilities Contingent liabilities arise from guarantees, indemnities and other forms of support provided by the Government through the Treasurer. They also arise from legal disputes and other claims against the Government. Contingent liabilities, by definition, are not actual liabilities. They represent circumstances under which there is the possibility, due to some future event, that an actual liability could arise. A conservative approach has been used so that amounts shown below represent the maximum potential liability, without taking into account any offsetting asset or security values. The following table summarises quantifiable contingent liabilities relating to the Department of Treasury and Finance. Further details regarding contingent liabilities of the whole of Government may be obtained from the 1995/96 Statement of Financial Operations published separately by the Department of Treasury and Finance. (MILLION Budget Sector State Financial Enterprises 604.7 Specific Guarantees and Indemnities under Statute 462.5 Monash Medical Centre 127.0 Generation Victoria 203.0 Other 15.1 j Total Budget Sector 1,412.3
Non-Budget Sector (a) 8,869.6 ; Total 10,281.9
(a) Debts raised by non-budget sector entities. (b) Cold Loan On 28 June 1996 Treasury Corporation of Victoria (TCV) terminated the Cold Loan which it entered into with the FAI Croup in 1987. The Treasurer has fully indemnified TCV with respect to that transaction. TCV has issued proceedings in the Supreme Court of Victoria seeking court approval for the basis upon which TCV claims the payment consequent upon the termination of the Gold Loan arrangements should be calculated. Applying this basis of calculation, the Treasurer considers that the liability of TCV will not exceed $40.62 million. Pending the resolution of those proceedings or an order of the court no payment will be made. No amount has been included in the above table for this item.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes to and forming part eft the Financial Report
26. Derivative Financial Transactions The Budget Sector Portfolio (BSP) enters into derivative financial instruments such as swaps and interest rate futures and options with Treasury Corporation of Victoria (TCV) to manage the interest rate risk inherent in the borrowing activities of the portfolio. The BSP borrows all funds in Australian dollars and therefore has no exposure to movements in foreign currency rates.
Interest rate risk inherent in the BSP's borrowing activities is managed by TCV on a daily basis against risk limits approved by the Department of Treasury and Finance.
Details of derivatives entered into which were outstanding at 30 June 1996 are as follows:
Category of derivative $'000 Net liability recognised in the Financial Statements Interest rate swaps 858 Net market value not recognised in the Financial Statements Interest rate futures and options 423 27.Disclosures Relating to Ministers and Accountable Officer In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following related disclosures are made for Ministers and the Accountable Officer for the reporting period. (a) Names Persons who held the above positions in the Department are shown below. The Hon A R Stockdale MP Treasurer The Hon R M Hallam MLC Minister for Finance Dr M Vertigan Secretary (b) Remuneration The number of persons who received amounts in connection with the management of the Department are shown below in their relevant income bands. Income between: $270,000 - $279,999 1 Amounts relating to Ministers are excluded. These amounts are reported in the Financial Statements of the Department of Premier and Cabinet. (c) Other Transactions Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report. 28. Executive Officers' Remuneration (a) The numbers of executive officers, other than Ministers and the Accountable Officer, whose total remuneration exceeded $100,000 during the reporting period are shown below in their relevant income bands. Income between: $100,000-109,999 19 $110,000-119,999 13 $120,000-129,999 9 $130,000-139,999 3 $140,000 - 149,999 1 $160,000-169,999 3 $170,000-179,999 2 $180,000- 189,999 1
(b) Total remuneration for the reporting period of the executive officers included above was $6,200,981.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 Notes to and farming part of the Financial Report
29.Summary of Compliance with Financial Directives The Department of Treasury and Finance is dependent on Government funding by way of appropriation for a large proportion of its costs. The following table summarises costs for individual Programs and illustrates the extent to which the Department has complied with the spending limits authorised by Parliament. Summary of compliance with financial directives for the year ended 30 June 1996. Actual Appropriations Actual Appropriations Total Actual Original $'000 Final $'000 Payments $'000 Recurrent Appropriations Program 740 52,215 53,278 51,285 Program 741 53,066 53,526 44,710 Program 742 16,869 16,947 17,532 Program 744 2,515,293 2,518,502 2,142,538 Program 745 90,553 91,221 87,507 Program 746 13,593 13,703 7,751 Program 747 251,571 270,530 215,402 Program 750 1,220 1,220 1,220 Program 751 6,401 6,401 4,790 Total 3,000,781 3,025,328 2,572,735 Analysed as follows: - Administered 2,338,943 Controlled 233,792 Works £ Services Appropriations Program 740 1,649 1,749 1,459 Program 741 46,771 46,671 39,585 Program 742 1,063 4,563 4,258 Program 744 662 48,761 48,566 Program 745 3,737 3,737 0 Program 746 155,384 78,785 94,303 Program 747 93,700 118,700 104,545 Program 750 280 280 280 Program 751 4,500 4,500 533 Total 307,746 307,746 293,529 Analysed as follows:- Administered 88,507 Controlled 205,022 Special Appropriations Program 744* 425,553 5,058,742 5,058,742 Program 745 310 331 331 Program 750 12,496 12,445 12,445 Total 438,359 5,071,518 5,071,518 Analysed as follows: - Administered 4,653,980 Controlled 417,538 Total Appropriations 3,746,886 8,404,592 7,937,782
* The higher actual payments against Program 744 Special Appropriations are due to debt retirement, utilising proceeds from privatisation of Government Business Enterprises. 30. Post Balance Date Event a) As previously reported, negotiations continued during the year for the sale of the Statewide Mobile Radio Network. The sale was satisfactorily concluded on 1 July 1996 and the State has received $7.3m as part payment under the Sale Agreement with Telstra Corporation Ltd. Finance leases of $23.7m (included in Note 19 Current) were taken over by Telstra as part of the arrangement. b) The sale of Hazelwood Power Corporation and Energy Brix of Australia was completed on 13 September 1996. An amount of $2,126m from the proceeds of these sales was applied to the reduction of Budget Sector debt shown under Administered Borrowings in Note 3.
Financial Statements Department of Treasury and Finance
Annual Report 1995/96 i'mmteial Reperì f¡or the year ended 30 June ig§6
Certification
We certify that the attached Financial Report for the Department of Treasury and Finance has been prepared in accordance with Part 9 of the Directions of the Minister for Finance and Australian Accounting Standards.
We further state that, in our opinion, the information set out in the Statement of Financial Position, Operating Statement, Statement of Cashflows, and Notes To and Forming Part of the Financial Report, presents fairly the financial transactions during the year ended 30 June 1996, and financial position of the Department as at 30 June 1996.
We are not aware of any circumstance which would render any particulars included in the Financial Report to be misleading or inaccurate.
Colin M Seedy Michael J Vertigan
Director, Resources Planning Secretary to the Department of Treasury Department of Treasury and Finance and Finance
Melbourne 15 October 1996
Financial Statements VICTORIAN AUDITOR- GENERAL'S OFFICE Auditing in the Public Interest
AUDITOR-GENERAL'S REPORT Audit Scope The accompanying financial statements of the Department of Treasury and Finance for the year ended 30 June 1996, comprising an operating statement, statement of financial position, statement of cash flows and notes to the financial statements have been audited. The Secretary of the Department of Treasury and Finance is responsible for the preparation and presentation of the financial statements and the information they contain. An independent audit of the financial statements has been carried out in order to express an opinion on them as required by the Audit Act 1994. The audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the financial statements are free of material misstatement. The audit procedures included an examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting Standards and other mandatory professional reporting requirements and comply with the requirements of the Financial Management Act 1994, so as to present a view which is consistent with my understanding of the financialpositio n of the Department of Treasury and Finance and the results of its operations and its cash flows. Audit Opinion In my opinion the financial statements present fairly the financial position of the Department of Treasury and Finance as at 30 June 1996 and the results of its operations and its cash flows for the year ended on that date in accordance with Australian Accounting Standards and other mandatory professional reporting requirements and comply with the requirements of the Financial Management Act 1994.
/C.CR/L^X^ MELBOURNE C A. BARAGWANATH 16/10/1996 Auditor-General
Level 14, 222 Exhibition St, Melbourne, Victoria 3000 Tel (03) 9651 6012 Fax (03) 9651 6050 Department of Treasury and Finance
Annual Report 1995/96 r. , >: i
DIRECTORY
Department of Treasury and Finance Principal Consultant Resource Management 1 Treasury Place Melbourne 3002 Mr Kevin McElwain Location (DX 210759) 11th Floor Secretary 1 Macarthur Street East Melbourne 3002 Tel: (03) 9651 2150 Fax: (03) 9651 2571 Secretary to Treasury and Finance Public Sector Employee Relations Director Dr Michael Vertigan Mr Richard Henderson Location Level 4 Location 1 Treasury Place Melbourne 3002 8th Floor Tel: (03) 9651 6239 Fax: (03) 9651 5027 1 Macarthur Street East Melbourne 3002 Tel: (03) 9651 5250 Fax: (03) 9654 6427 Budget and Resource Management Victorian Government Accommodation Group Director Division Mr Bryan Williams Deputy Secretary Location Mr Frank King 10th Floor Location 1 Macarthur Street East Melbourne 3002 4th Floor Tel: (03) 9651 2170 Fax: (03) 9651 2169 1 Treasury Place Melbourne 3002 Tel: (03) 9651 2104 Fax: (03) 9651 0920 Economic and Financial Policy Principal Consultant Budget Division Mr Tom Martin Deputy Secretary Location Mr Ian Little 4th Floor Location 1 Treasury Place Melbourne 3002 5th Floor Tel: (03) 9651 5095 Fax: (03) 9651 0920 1 Treasury Place Melbourne 3002 Budget Coordination and Information Systems Director Tel: (03) 9651 5638 Fax: (03) 9651 5414 Mr Peter Fuhrmann Economic Policy and Financial Strategy Director Location Mr Richard Whitelaw 4th Floor Location 1 Treasury Place Melbourne 3002 5th Floor Tel: (03) 9651 5721 Fax: (03) 9651 5357 1 Treasury Place Melbourne 3002 Budget Analysis Director Tel: (03) 9651 6424 Fax: (03) 9651 5414 Mr Phil Burn Finance and Liability Management Director Location Ms Helen Davison 4th Floor Location 1 Treasury Place Melbourne 3002 5th Floor Tel: (03) 9651 6462 Fax: (03) 9651 5357 1 Treasury Place Melbourne 3002 Budget Analysis Director Tel: (03) 9651 5300 Fax: (03) 9651 5334 Mr Darrell Cain Intergovernment Financial Relations Director Location Dr Phyllis Rosendale 4th Floor Location 1 Treasury Place Melbourne 3002 5th Floor Tel: (03) 9651 5550 Fax: (03) 9651 5357 1 Treasury Place Melbourne 3002 Budget Analysis Director Tel: (03) 9651 5350 Fax: (03) 9651 0960 Ms Marisa De Cicco Risk and Insurance Management Acting Director Location Ms Elizabeth Eldridge 4th Floor Location 1 Treasury Place Melbourne 3002 5th Floor Tel: (03) 9651 5521 Fax: (03) 9651 5357 1 Treasury Place Melbourne 3002 Budget Analysis Director Tel: (03) 9651 5327 Fax: (03) 9651 5334 Ms Sue Dahn Taxation and Revenue Policy Director Location Ms Claire Thomas 4th Floor Location 1 Treasury Place Melbourne 3002 5th Floor Tel: (03) 9651 5177 Fax: (03) 9651 5357 1 Treasury Place Melbourne 3002 Office of Purchasing and Procurement Director Tel: (03) 9651 6470 Fax: (03) 9651 6495 Mr Lance Bailey Location 11th Floor 1 Macarthur Street East Melbourne 3002 Tel: (03) 9651 2162 Fax: (03) 9651 2161 42 Department of Treasury and Finance Annual Report 1995/96 Appenmx t
Privatisations and Industry Reform Financial Management Division Division Deputy Secretary Deputy Secretary & Director of Privatisations Mr Ron Paice Mr John Perham Location Location 5th Floor 4th Floor 1 Treasury Place Melbourne 3002 1 Treasury Place Melbourne 3002 Tel: (03) 9651 2134 Fax: (03) 9651 2195 Tel: (03) 9651 5369 Fax: (03) 9651 6487 Accounting Policy Director Business Enterprises Director Mr Richard May Mr Neil Taylor Location Location 5th Floor 4th Floor 1 Treasury Place Melbourne 3002 1 Treasury Place Melbourne 3002 Tel: (03) 9651 2191 Fax: (03) 9651 2141 Tel: (03) 9651 0911 Fax: (03) 9651 6487 Business Systems Director GBE Reform Director Mr Steve O'Reilly Ms Deborah Radford Location Location 4th Floor 5th Floor 1 Treasury Place Melbourne 3002 1 Treasury Place Melbourne 3002 Tel: (03) 9651 5477 Fax: (03) 9651 5357 Tel: (03) 9651 6551 Fax: (03) 9651 5575 Government Financial Reporting Director Ports Reform Unit Acting Project Leader Mr Ralph Booth Ms Melissa Skilbeck Location Location 5th Floor 5th floor 1 Treasury Place Melbourne 3002 1 Treasury Place Melbourne 3002 Tel: (03) 9651 2187 Fax: (03) 9651 2195 Tel: (03) 9651 0794 Fax: (03) 9651 5575 Management Improvement Acting Director Program Directorate Director Mr Dick Elvins Ms Jenny Melican Location Location 4th Floor 4th Floor 1 Treasury Place Melbourne 3002 1 Treasury Place Melbourne 3002 Tel: (03) 9651 5755 Fax: (03) 9651 1231 Tel: (03) 9651 0743 Fax: (03) 9651 6487 Operational Accounting Director Project & Outsourcing Development Director Mr Stephen Crawford Mr Peter Noble Location Location 7th Floor 5th Floor 1 Macarthur Street East Melbourne 3002 1 Treasury Place Melbourne 3002 Tel: (03) 9651 2692 Fax: (03) 9651 2196 Tel: (03) 9651 5793 Fax: (03) 9651 6425 Reform Policy Director Energy Projects Dr David Briggs Location Executive Director 5th Floor Ms Chloe Munro 1 Treasury Place Melbourne 3002 Location 3rd Floor Tel: (03) 9651 0915 Fax: (03) 9651 5575 35 Spring Street Melbourne 3000 Transport Reform Unit Project Leader Tel: (03) 9651 3602 Fax: (03) 9651 3192 Mr David Greig Location Management Unit Director 5th Floor Mr Harry De Jong 1 Treasury Place Melbourne 3002 Location Tel: (03) 9651 2432 Fax: (03) 9651 5575 3rd Floor 35 Spring Street Melbourne 3000 Victorian Government Property Group Director Tel: (03) 9651 3024 Fax: (03) 9651 3192 Mr Peter Parker Location Energy Policy Director 10th Floor Mr Rodney Ward 1 Macarthur Street East Melbourne 3002 Location Tel: (03) 9651 2176 Fax: (03) 9651 2169 3rd Floor 35 Spring Street Melbourne 3000 Water Reform Director Tel: (03) 9651 3647 Fax: (03) 9651 3192 Mr Richard Clarke Location 8th Floor 1 Macarthur Street East Melbourne 3002 Tel: (03) 9651 2557 Fax: (03) 9651 0890 Department of Treasury and Finance 43_ Annual Report 1995/96
Executive Support Services Statutory Bodies Executive Coordination Director Construction Industry Long Service Leave Board Ms Kate Molloy (COINVEST) Location 478 Albert Street East Melbourne 3002 3rd Floor Tel: (03) 9664 7666 Fax: (03) 9663 7088 1 Treasury Place Melbourne 3002 Emergency Services Superannuation Board Tel: (03) 9651 2108 Fax: (03) 9651 2132 2nd Floor Human Resource Strategy Director 493 St. Kilda Road Melbourne 3004 Mr Peter Vodicka Tel: (03) 9866 4544 Fax: (03) 9867 8404 Location Hardship Relief Boards (Land Tax, Probate Duty) 3rd Floor 505 Little Collins Street Melbourne 3000 1 Treasury Place Melbourne 3002 Tel: (03) 9628 0000 Fax: (03) 9628 0501 Tel: (03) 9651 5288 Fax: (03) 9651 2132 Hospitals Superannuation Board Resources Planning Director 697 Bourke Road Camberwell 3124 Mr Colin Seedy Tel: (03) 9811 9411 Fax: (03) 9813 3392 Location 3rd Floor Local Authorities Superannuation Board 1 Macarthur Street East Melbourne 3002 468 St. Kilda Road Melbourne 3004 Tel: (03) 9651 2310 Fax: (03) 9651 2280 Tel: (03) 9869 7788 Fax: (03) 9820 0552 Solicitor to Treasury & Finance Office of the Chief Electrical Inspector Mr Ian Gibson 3rd Floor Location 4 Riverside Quay Southbank 3006 4th Floor Tel: (03) 9203 9700 Fax: (03) 9686 2197 1 Treasury Place Melbourne 3002 Office of the Regulator-General Tel: (03) 9651 5714 Fax: (03) 9651 5951 1st Floor 35 Spring Street Melbourne 3000 Tel: (03) 9651 0222 Fax: (03) 9651 3688 Corporate Resource Agency Rural Finance Corporation Director (Incorporating the Young Farmers Finance Council) Mr Grant Caldwell 325 Collins Street Melbourne 3000 Location Tel: (03) 9243 2600 Fax: (03) 9243 2700 5th Floor Transport Accident Commission (TAC) 1 Macarthur Street East Melbourne 3002 222 Exhibition Street Melbourne 3000 Tel: (03) 9651 5145 Fax: (03) 9651 0724 Tel: (03) 9664 6666 Fax: (03) 9664 6668 Treasury Corporation Victoria (TCV) State Revenue Office Level 12, 1 Collins Street Melbourne 3000 Tel: (03) 9651 4800 Fax: (03) 9651 4880 Commissioner Mr Denzil Griffiths Victorian Funds Management Corporation Location Level 19 East Tower Southgate 40 City Road Southbank 3006 505 Little Collins Street Melbourne 3000 Tel: (03) 9207 2900 Fax: (03) 9207 2967 Tel: (03) 9628 0505 Fax: (03) 9628 0501 Victorian Government Purchasing Board General Managers 1 Macarthur Street East Melbourne 3002 Ms Rosemary Hehir Business Support Tel: (03) 9651 2268 Fax: (03) 9651 2161 Mr John Pritchard Compliance Mr Rod Rogers Policy and Education Victorian Superannuation Board Mr Peter Blight Revenue A 10th Floor Ms Pauline Clancy Revenue B / Business Renewal 35 Spring Street Melbourne 3000 Location Tel: (03) 9651 3222 Fax: (03) 9654 4319 505 Little Collins Street Melbourne 3000 Victorian WorkCover Authority Tel: (03) 9628 0000 Fax: (03) 9628 6222 3rd Floor 485 La Trobe Street Melbourne 3000 Tel: (03) 9641 1555 Victorian Casino and Gaming Toll Free: (1800) 136 089 Fax: (03) 9641 1222 Authority WorkCover Conciliation Service Gaming and Betting Director 3rd Floor Mr Alan Rowe 624 Bourke Street Melbourne 3000 Location Tel: (03) 9628 1111 Level 1, Building D World Trade Centre Melbourne 3005 Toll Free: (008) 810 071 Fax: (03) 9628 1000 Tel: (03) 9628 7327 Fax: (03) 9628 7300 44 Department of Treasury and Finance Annual Report 1995/96 Appendix 2
ACTS ADMINISTERED
As at 30 June 1996, the Treasurer was responsible for the Stamps Act 1958 administration of part or all of the following Acts of State Bank (Succession of the Commonwealth Bank) Act Parliament: 1990 Accident Compensation Act 1985 State Bank of South Australia (Transfer of Undertaking) Act • Division 7 of Part IV 1994 Alcoa (Portland Aluminium Smelter) Act 1980 State Deficit Levy (Repeal) Act 1995 Appropriation Acts (passed annually) State Electricity Commission Act 1958 Bank Integration Act 1992 State Insurance Office Act 1984 Borrowing and Investment Powers Act 1987 State Insurance Office (Sale) Act 1991 Business Franchise (Petroleum Products) Act 1979 State Owned Enterprises Act 1992 - Excluding Business Franchise (Tobacco) Act 1974 • Division 2 of Part 2 in so far as it relates to the Victoria Plantations Corporation and Water Training Centre - (these provisions are Commonwealth and States Financial Agreements Act 1927 administered by the Minister for Agriculture and Resources) Crown Intellectual Property (Assignment) Act 1983 • Division 2 of Part 2 in so far as it relates to the Victorian Interpreting and Debits Tax Act 1990 • Translation Service - (these provisions are administered by the Debt Conversion Agreement Act 1931 Minister for Multicultural Affairs) Educational Institutions (Guarantees) Act 1976 State Trustees (State Owned Company) Act 1994 • Excluding Part 4 (these provisions are administered by the Electric Light and Power Act 1958 Minister for Health) Electricity Industry Act 1993 Statistics Act 1958 Energy Consumption Levy Act 1982 Supply Acts (passed annually) Financial Agreement Act 1994 Tattersall Consultations Act 1958 - Financial Institutions Duty Act 1982 • Sections 4(1), (3) and (4), 5(4) and (5) and section 11 in so far Financial Management Act 1994 as it relates to the making of regulations for or with respect to sections 4(1), (3) and (4), 5(4) and (5) are jointly administered • Sections 1 -3, 7, 8, 11, 24-27, 35, 59, 62 and 63 (jointly with the Minister for Gaming (the remaining provisions are administered with the Minister for Finance) administered by the Treasurer) • Excluding Sections 5, 6, 13-16, 18-23(1), 36-39, 41-58, 60, 61, 65 and 66 (these sections are administered by the Minister Tattersall Consultations (Reporting) Act 1993 for Finance) Taxation (Interest on Overpayments) Act 1986 Gas and Fuel Corporation (Repeal) Act 1995 Taxation (Reciprocal Powers) Act 1987 Gas Industry Act 1994 Taxation Acts (Reciprocal Assistance) Act 1986 Gas Industry (Extension of Supply) Act 1995 Transport Accident Act 1986 Gift Duty Act 1971 Treasury Corporation of Victoria Act 1992 Grain Handling and Storage Act 1995 Treasury Corporation of Victoria (Housing Finance) Act 1995 • Sections 1-12, 26-39 (the remaining provisions are administered by the Minister for Finance) TT Line Gaming Act 1993 Hospital Benefits (Levy) Act 1982 • Section 11 is jointly and severally administered with the Minister for Gaming; the Act is otherwise administered by the Und Tax Act 1958 Minister for Gaming Loy Yang B Act 1992 Victorian Debt Retirement Fund Act 1990 Melbourne Cricket Club Act 1974 Victorian Funds Management Corporation Act 1994 Miners' Phthisis (Treasury Allowances) Act 1938 Victorian Managed Insurance Authority Act 1996 Mint Act 1958 Young Farmers Finance Council Act 1979 Pay-roll Tax Act 1971 As at 30 June 1996, the Minister for Finance was Port Services Act 1995 responsible for the administration of part or all of the • Sections 26, 29, 65-71, 74-76,118 and 202 (the remaining following Acts of Parliament: provisions are administered by the Minister for Finance or the Minister for Roads and Ports) Accident Compensation Act 1985 • Excluding: Probate Duty Act 1962 Division 1 of Part III; and Public Authorities (Contributions) Act 1966 Division 7 of Part IV (these provisions are administered by the Attorney-General Public Authorities (Dividends) Act 1983 and the Treasurer respectively) Public Authorities (Sinking Funds) Act 1982 Accident Compensation (Occupational Health and Safety) Rural Finance Act 1988 Act 1996 Rural Finance (VEDC Abolition) Act 1993 Accident Compensation (WorkCover Insurance) Act 1993 Snowy Mountains Hydro-Electric Agreements Act 1958 Audit Act 1994 St Andrews Hospital (Guarantee) Act 1978 • Parts 3, 4 and 5 (the remaining provisions are administered by the Premier) Department of Treasury and Finance 45 Annual Report 1995/96
>•' \ 2
Casino Control Act 1991 - Port of Geelong Authority Act 1958 • Section 128K(2) (the remaining provisions are administered by • Section 13 (the remaining provisions of the Act are the Minister for Gaming and the Minister for Planning and administered by the Minister for Roads and Ports) Local Government) Port of Melbourne Authority Act 1958 Coal Mines (Pensions) Act 1958 - • Section 36 (the remaining provisions of the Act are • Part III (the Act is otherwise administered by the Minister for administered by the Minister for Roads and Ports) Agriculture and Resources) Port Services Act 1995 Construction Industry Long Service Leave Act 1983 • Sections 57(3), 120 and 122 (the remaining provisions are Emergency Services Superannuation Act 1986 administered by the Treasurer or the Minister for Roads and Ports) Financial Management Act 1994 Public Authorities (Equal Employment Opportunity) Act • Sections 5, 6,13-16,18-23(1), 36-39, 41-58, 60, 61, 65 and 66 • Sections 1-3, 7, 8,11, 24-27, 35, 59, 62 and 63 (jointly 1990 administered with the Treasurer) Public Sector Superannuation (Administration) Act 1993 • (the remaining provisions are administered by the Treasurer) Returned Servicemen's Badges Act 1956 Girl Guides Association Act 1952 Scout Association Act 1932 Government Employee Housing Authority (Repeal) Act 1995 State Casual Employees Superannuation Act 1989 Grain Handling and Storage Act 1995 • Sections 13-25 (the remaining provisions are administered by State Employees Retirement Benefits Act 1979 the Treasurer) State Superannuation Act 1988 Hospitals Superannuation Act 1988 Superannuation (Compliance) Act 1993 Land Act 1958 - Superannuation (Portability) Act 1989 • in so far as it relates to the exercise of powers relating to leases Superannuation (Public Sector) Act 1992 - Excluding: and licences under subdivisions 1 and 2 of Division 9 of Part I in respect of land in the Melbourne Casino area within the • Part 2 (this Part is administered by the Premier) meaning of Part 9A of the Casino Control Act 1991; Transport Superannuation Act 1988 • in so far as it relates to the exercise of powers relating to leases and licences under subdivisions 1 and 2 of Division 9 of Part I in Unclaimed Moneys Act 1962 respect of Crown land coloured brown on Plans numbered LEGL./ Workers Compensation Act 1958 Excluding: 93-211, LEGL./93-212, LEGL./93-213, LEGL./93-214 and LEGL./ • Division 8 of Part 1 (this Division is administered by the 93-215 lodged in the Central Plan Office; Attorney-General) • in so far as it relates to the exercise of powers relating to leases and licences under subdivision 1 and 2 of Division 9 of Part I in As at 30 June 1996, the Minister for Gaming was respect of land shown as Crown Allotments M1 and M2 on responsible for the administration of part or all of the Certified Plan 110473 dated 25/2/1991 and known as Erskine following Acts of Parliament: House; • Division 6 of Part I; Subdivision 3 of Division 9 of Part I; Casino Control Act 1991 - Excluding: section 209; and the remainder of the Act where it relates to • Sections 128H to 128L (which are administered by the Minister the sale and alienation of Crown Lands as set out in for Planning and Local Government, excepting section 128K(2), Administrative Arrangements Order No. 58; and which is administered by the Minister for Finance) • Sections 201, 201A and 399 (jointly administered with the Casino (Management Agreement) Act 1993 Minister for Conservation and Land Management) • (the remaining provisions are administered by the Minister for Club Keno Act 1993 Conservation and Land Management, the Attorney-General Gaming and Betting Act 1994 and the Minister for Corrections) • Part 5, Division 2 of Part 6, Part 15 and Division 2 of Part 18 Local Authorities Superannuation Act 1988 are jointly administered with the Minister for Sport; the Act is otherwise administered by the Minister for Gaming Marine Act 1988 • Division 2 of Part 11 (The remaining provisions are Gaming Machine Control Act 1991 Except: administered by the Minister for Roads and Ports) • section 138 which is administered by the Premier Melbourne and Metropolitan Board of Works Act 1958 Lotteries, Gaming and Betting Act 1966 • Section 42A (in so far as it relates to park and waterway • jointly administered with the Minister for Sport management, the Act is administered by the Minister for Racing Act 1958 Conservation and Land Management; the Act is otherwise • Sections 113,114,116M, 1160(3B) and Division 5 of Part V are administered by the Minister for Agriculture and Resources) jointly administered with the Minister for Sport (the remaining Office of the Regulator-General Act 1994 provisions are administered by the Minister for Sport) Parliamentary Contributory Superannuation Act 1962 Tattersall Consultations Act 1958 • Sections 4(1), (3) and (4), 5(4) and (5) and section 11 in so far Parliamentary Salaries and Superannuation Act 1968 as it relates to the making of regulations for or with respect to • Part II (The remaining provisions are administered by the Premier) sections 4(1), (3) and (4), 5(4) and (5) (these provisions are Petroleum Products Subsidy Act 1965 jointly administered with the Treasurer) (the remaining provisions are administered by the Treasurer) Police Regulation Act 1958 • Part III (the remaining provisions are administered by the TT Line Gaming Act 1993 Minister for Police and Emergency Services) • Section 11 is jointly and severally administered with the Treasurer; the Act is otherwise administered by the Minister for Gaming. 46 Department of Treasury and Finance Annual Report 1995/96
REGULATORY AND LEGISLATIVE CHANGES
Spring 1995: Valuation Of Land (Amendment) Act 1995 • to amend the Valuation of Land Act 1960 to make further provision for determing the estimated annual value of land. New or Amending Acts of the Treasurer (This Act is now the responsibility of the Minister for Appropriation (1995/96, No 1) Act 1995 Conservation and Land Management) • to appropriate certain sums and supplies. Local Government (Elections) Act 1995 Appropriation ( Parliament, 1995/96, No 1) Act 1995 • to make changes concerning : • to appropriate certain sums and supplies. a) the election of Councils; b) the size of Councils; and State Taxation (Further Amendment) Act 1995 c) the payment of allowances to Councillors. • to make amendments to the Business Franchise (Tobacco) Act (This Act is now the responsibility of the Minister for 1974, the Financial Institutions Duty Act 1982, the Gift Duty Planning and Local Government) Act 1971, the Land Tax Act 1958, the Pay-roll Tax Act 1971, the Probate Duty Act 1962 and the Stamps Act 1958. Port Services Act 1995 Autumn 1996: • to: a) establish the Melbourne Port Corporation and the Victorian Channels Authority; New or Amending Acts of the Treasurer: b) provide for the economic regulation of certain port Appropriation (Interim 1996-97) Act 1996 services; • to provide interim appropriation for Departments for the first c) provide for the imposition of certain port charges; four months of 1996-97. d) require the engagement of licensed harbour masters in certain circumstances and set out their functions; Appropriation ( Parliament, Interim 1996-97) Act 1996 e) provide for the transfer of property, rights and liabilities • to provide interim appropriation for Parliament for the first and the management of Crown land and to make four months of 1996-97. provision with respect to the rights of staff; and Electricity Industry (Amendment) Act 1996 f) amend the Port of Melbourne Authority Act 1958, the • to make certain amendments to the Electricity Industry Act Port of Geelong Authority Act 1958, the Port of Portland 1993. Authority Act 1958, the Marine Act 1988, the Pollution of Waters by Oil and Noxious Substances Act 1986 and the Water Industry (Amendment) Act 1996 Dangerous Coods Act 1985. • to make miscellaneous amendments to the Water Act 1989, the Water Industry Act 1994 and the Melbourne and Electricity Industry (Further Amendment) Act 1995 Metropolitan Board of Works Act 1958. • to make further amendments to the Electricity Industry Act 1993 to facilitate the transfer of land in the La Trobe Valley Victorian Managed Insurance Authority Act 1996 and to make further provisions relating to the operation of • to establish the Victorian Managed Insurance Authority. the electricity industry. Westpac and Bank of Melbourne (Challenge Bank) Act 1996 Miscellaneous Acts (Omnibus Amendments) Act 1995 • to provide for the transfer to Westpac Banking Corporation of • to: the banking business of Challenge Bank Limited and the a) make amendments to the Borrowing and Investment transfer to Bank of Melbourne Limited of part of that Powers Act 1987, the Business Names Act 1962, the Civil business and for other purposes. Aviation (Carriers' Liability) Act 1961, the Corporations State Taxation (Omnibus Amendment) Act 1996 (Victoria) Act 1990, the Evidence Act 1958, the Extractive • to make miscellaneous amendments to the Business Franchise Industries (Lysterfield) Act 1986, the Financial (Tobacco) Act 1974, the Debits Tax Act 1990, the Financial Management Act 1994, the Historic Buildings Act 1981, Institutions Duty Act 1982, the Land Tax Act 1958, the Pay- the Interpretation of Legislation Act 1984, the Juries Act roll Tax Act 1971, the Stamps Act 1958. and the Valuation of 1967, the Marine Act 1988, the Melbourne Exhibition Land Act 1960. Centre Act 1994, the Museums Act 1983, the Public Holidays Act 1993, the Road Safety Act 1986, the Shop Trading Act 1987, the Sport and Recreation Act 1972, the New or Amending Acts of the Minister For Finance and Transport Act 1983 and certain other Acts; and Gaming: b) repeal the Exhibition Act 1957, the Livery and Agistment Accident Compensation (Amendment) Act 1996 Act 1958 and the Management and Budget Act 1983. • to amend the Accident Compensation Act 1985 and the Accident Compensation (WorkCover Insurance) Act 1993. New or Amending Acts of the Minister For Finance: Accident Compensation (Occupational Health and Safety) Government Employee Housing Authority (Repeal) Act 1995 Act 1996 • to make provision for the winding up of the Government • to amend the Accident Compensation Act 1985, the Employee Housing Authority, to amend the Government Occupational Health and Safety Act 1985, the Equipment Employee Housing Authority Act 1981 and to repeal the Act. (Public Safety) Act 1994, the Dangerous Goods Act 1985 and associated regulations. Superannuation Acts (Miscellaneous Amendment) Act 1995 • to make miscellaneous amendments to certain specified Miscellaneous Acts (Omnibus Amendments) Act 1996 Superannuation Acts to further improve the administration of • to make amendments to the Office of the Regulator-General public sector superannuation schemes. Act 1994. Department of Treasury and Finance 47 Annual Report 1995/96 Appendix 3
Superannuation Acts (Amendment) Act 1996 New Regulations of the Minister for Finance in 1995/96: • to amend certain specified Superannuation Acts to further improve the administration of public sector superannuation 100/95 Workers Compensation Regulations 1995 schemes. 105/95 Melbourne and Metropolitan Board of Works Casino (Management Agreement) (Further Amendment) Employees' Superannuation Fund Act 1995 (Amendment) Regulations 1995 • to amend the Casino (Management Agreement) Act 1993 to 2/96 Office of the Regulator-General (Appeals) ratify a second variation to the management agreement. Regulations 1996 Caming Acts (Amendment) Act 1996 • to make further provision in relation to gaming operators' licences; to prohibit gaming at an approved venue after it is New Regulations of the Minister for Gaming in 1995/96: closed to the public; to remove references to restricted 144/95 Casino Control (Prescribed Authorities and machines; to require approval of electronic monitoring Persons) (Amendment) Regulations 7995 systems before their use in approved venues; to require approval of variations to games and gaming machine types; 145/95 Caming Machine Control (Miscellaneous) to limit oral exclusion orders to 14 days; to remove (Amendment) Regulations 1995 surcharges on raffles, bingo and lucky envelopes; to ratify a 3/96 Club Keno (Amendment) Regulations 1996 third deed of variation to the management agreement for the Melbourne Casino; and to make other miscellaneous amendments to gaming legislation. Caming Machine Control (Community Support Fund) Act 1996 • to amend the Gaming Machine Control Act 1991 to change the mode of application of money in the Community Support Fund. (Responsibility for the Gaming Portfolio transferred to the Minister in the April 1996 Machinery of Government changes)
New Regulations of the Treasurer in 1995/96: 102/95 Business Franchise (Tobacco and Petroleum Products) (Amendment) Regulations 1995 112/95 Financial Institutions Duty (Exempt Receipts) Regulations 1995 122/95 Tattersall Consultations (Amendment) Regulations 1995 133/95 Transport Accident (Charges) (Prescribed Periods) Regulations 1995 166/95 Land Tax (Equalisation Factors) Regulations 1995 176/95 Petroleum (Fees) Regulations 1995 177/95 Pipelines (Fees) Regulations 1995 178/95 Gas Industry (Supply) Regulations 1995 197/95 Stamps (Further Amendment) Regulations 1995 4/96 Financial Institutions (Amendment) Regulations 1996 28/96 Financial Institutions Duty (Exempt Receipts) Regulations 1996 39/96 Stamps (Amendment) Regulations 1996 41/96 Business Franchise (Tobacco and Petroleum Products) (Amendment) Regulations 1996 48 Department of Treasury and Finance Annual Report 1995/96 Appe:
INFORMATION AVAILABLE ON REQUEST & COMPLIANCE INDEX
Information available on request: Compliance index to Disclosure Requirements 1995/96 The Financial Management Act 1994 determines the The Annual Report of the entity is prepared in accordance nature of information that must be included in a with the Financial Management Act 1994 and the Department's Annual Report. Certain additional Directions of the Minister for Finance. This index has been information is required to be held by the Department and prepared to facilitate identification of compliance with made available, within the limitations of the Freedom of statutory disclosure requirements. Information Act 1982. Some of this additional data is included within the appendices of the report as general information. Further requests for information may be made of the Freedom of Information Officer on telephone (03) 9651 2119, or in writing to: Freedom of Information Officer Department of Treasury and Finance Level 3 1 Treasury Place Melbourne Vic 3002
Clause Disclosure Page**
Report of Operations Charter & Purpose 9.1.3 (i) (a) Manner of establishment and Relevant Minister 5 9.1.3 (i) (b) Objectives, functions, powers and duties 5, 44-45, 63 9.1.3 (i) (c) Services provided and persons or sections of community served 63
Management & Structure 9.1.3 (i) (d) (i) Names of governing board members, Audit Committee & Chief Executive 5, 57-58 9.1.3 (i) (d) (ii) Names of senior office holders and brief description of each office 41 -43, 63 9.1.3 (i) (d) (iii) Chart setting out organisational structure Inside back cover
Financial and other information 9.1.3 (i) (e) Workforce data and application of merit & equity principles 52-54 9.1.3 (i) (f) Application and operation of FOI Act 1982 50-51 9.1.3 (ii) (a) Summary of financial results with previous four year comparatives n/a* 9.1.3 (ii) (b) Summary of significant changes in financial position n/a* 9.1.3 (ii) (c) Operational objectives for the year and performance against those objectives 5-16 9.1.3 (ii) (d) Major changes or factors affecting achievement of objectives 5-16, 64 9.1.3 (ii) (e) Events subsequent to balance date Note 30 9.1.3 (ii) (f) Full details of each consultancy > $50,000 55 9.1.3 (ii) (g) Number and total cost of consulting engagements, each costing < $50,000 55 9.1.3 (ii) (h) Extent of compliance with Building Act 1993 56 9.1.3 (ii) (i) Statement that information listed in Part 9.1.3 (iv) is available on request 48-49
* Disclosure of these items is not compulsory for 1995/96 due to the machinery of Government changes announced in April 1996.
* * References to items forming part of the 'Notes to the Financial Statements' are to the relevant 'Note' number, rather than the page number. Department of Treasury and Finance 49 Annual Report 1995/96 x^-i* 'tUliX A
Clause Disclosure Page**
Financial Statements Statement of Financial operations 9.2.3 (ii) (a) Operating revenue by class Note 9 9.2.3 (ii) (b) Investment Income by class n/a 9.2.3 (Ii) (c) Profits arising from sale of non current assets Note 9 9.2.3 (Ii) (d) Financing cost Note 7 9.2.3 (ii) (e) Depreciation, amortisation or diminution in value Note 5 9.2.3 (Ii) (f) Bad and doubtful debts Note 7 9.2.3 (ii) (g) Losses arising from the sale of non current assets Note 9 9.2.3 (ii) (h) Losses on the revaluation of assets n/a 9.2.3 (ii) (i) Audit expense Note 7 9.2.3 (il) (j) Emoluments of governing board n/a 9.2.3 (ii) (k) Shareholdings in the entity by members of the governing board n/a
Statement of Financial position 9.2.3 (iii) (a) (i) Cash at bank or in hand Note 11 9.2.3 (iii) (a) (ii) Inventories by class Note 13 9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors Note 14 9.2.3 (iii) (a) (iv) Other assets, including prepayments 18 9.2.3 (iii) (a) (v) Investments by class n/a 9.2.3 (iii) (a) (vi) Property, plant & equipment Notes 16,17 9.2.3 (iii) (a) (vii) Intangible assets n/a 9.2.3 (iii) (b) (i) Overdrafts Note 11 9.2.3 (iii) (b) (ii) Bank loans, bills payable, promissory notes, debentures and other loans n/a 9.2.3 (iii) (b) (iii) Trade and other creditors Note 18 9.2.3 (iii) (b) (iv) Finance lease liabilities Note 19 9.2.3 (iii) (b) (v) Provisions, including employee entitlements Note 20 9.2.3 (iii) (c) (i) Authorised capital n/a 9.2.3 (iii) (c) (ii) Issued capital n/a 9.2.3 (iii) (d) Reserves, and transfers to and from reserves, shown separately Note 22
Statement of Cash flows 9.2.2 (i) (c) A statement of cash flows during the year 20
Notes to the financial statements 9.2.2 (i) (d) Ex-gratia payments Note 7 9.2.2 (i) (d) Amounts written off n/a 9.2.3 (iv) (a) Charges against assets n/a 9.2.3 (iv) (b) Contingent liabilities Note 25 9.2.3 (iv) (c) Commitments for expenditure Note 19 9.2.3 (iv) (d) Government grants received or receivable n/a 9.2.3 (iv) (e) Employee superannuation funds Note 21 9.2.3 (iv) (f) Assets received without adequate consideration n/a 9.4 Transactions with Responsible persons and their related parties Note 27
** References to items forming part of the 'Notes to the Financial Statements' are to the relevant 'Note' number, rather than the page number. Department of Treasury and Finance
Annual Report 1995/96
FREEDOM OF INFORMATION
Freedom of Information (FOl) All the publications listed above are available for purchase from Information Victoria, 318 Little Bourke Street, This information is now required to be included in the Melbourne, Victoria, 3000, telephone 9651 4100 or Toll Annual Report pursuant to s.7(4) of the Freedom of Free 1800 13 6762. Information Act 1982 (the Act). FOl Officers Requests for access to a document in the possession of the Department (excluding the State Revenue Office The officers responsible for the initial receipt of, and (SRO) and the Victorian Casino and Gaming Authority action upon, requests for access to documents in the (VCGA) are dealt with centrally by the Department's FOl possession of the Minister or the Department are: Officers. Requests for access to information in the Mr Rick Farlow (Tel: 9651 2119) possession of SRO and the VCGA are dealt with by the respective FOl Officers of these administrations. Ms Anne Donovan (Tel: 9651 5514)
Making a Request In respect of the State Revenue Office, the authorised FOl Officer is Ms Julie Gribble (Tel: 9628 0515) and in the case of FOl requests must be in writing and fall within three the VCGA, the officer is Mr Alan Rowe (Tel: 9628 7327). categories: Requests for documents should be made in writing and • Requests for access to documents of the Agency or of addressed to either the Principal Officer of the Agency or the Minister as the case may be. These requests must the Minister as the case requires. contain sufficient information to allow the identification of documents concerned; Department of Treasury and Finance 1 Treasury Place • Requests for amendment of personal records. These Melbourne Vic 3002 requests must sufficiently identify the area of, and manner in which, personal records should be State Revenue Office amended; and 505 Little Collins Street Melbourne Vic 3000 • Requests for internal review of a decision made on an earlier request. These requests should detail the basis Victorian Casino and Gaming Authority on which an internal review is being sought. (This is Level 1, Building D not obligatory but can be helpful.) World Trade Centre Cnr Flinders and Spencer Streets The statement on "Categories of Documents" may be of Melbourne 3005 assistance in identifying the category of documents to which access is sought. It should be noted that the Act Decision-Making Powers Affecting Members of the Public does not entitle applicants to be given access to documents created prior to July 1978 unless it is a Decision-making powers are contained in Acts or document that relates to their personal affairs. Regulations for which the Treasurer or the Minister for Finance have responsibility. A full list of these Acts is Fees and Charges provided in Appendix 2 of this Report. A request must be accompanied by an application fee of $20.00. This fee may be waived or reduced if payment of Categories of Documents the fee would cause hardship to the applicant.
The Act also prescribes fees for the provision of Description of Record Keeping Systems documents, based on the schedule of charges detailed in the FOl (Access Charges) Regulations 1993. Main charges The Department (excluding some Divisions and Offices are for search time (at $20 per hour) and photocopying who have their own record keeping systems) has five (at 20 cents per page). The Department is prepared to separate filing systems. These comprise of - Departmental consider a request for a reduction or waiver of charges on files, Cabinet files, Personnel files, Accounting files and any request for access to documents if: Freedom of Information files. • The applicant is a Member of Parliament; Current and recent files are held at 1 Macarthur Street, East Melbourne. Older files are stored either in off-site • The information is accessed in the public interest; or secondary storage or at the Public Record Office in • The applicant is impecunious. Laverton. Further information regarding the application of the The other divisions and offices that have their own filing Freedom of Information Act 1982 may be obtained from: systems are as follows: 1. The Act itself; • State Revenue Office 2. The Freedom of Information Handbook; and • Victorian Casino and Gaming Authority 3. Various Regulations made under the Act. For further details on the particular categories of Department of Treasury and Finance 51 Annual Report 1995/96
documents held by these bodies, please contact the State Revenue Office relevant FOI Officer or the relevant Director of the Division or Office. Requests for documents held by the State Revenue Office pursuant to the Freedom of Information Act should be made in writing to: Library Freedom of Information Officer The Joint Departmental Information Centre (Library) is State Revenue Office open to members of the public by appointment only on 505 Little Collins Street Tuesdays from 10am to 4pm. Telephone Ms Jenny Connor Melbourne Vic 3000 on 9651 5661. The Department of Treasury and Finance has prepared the FOI Officer following report on Freedom of Information. The State Revenue Office provides its own administrative services Julie Gribble and accordingly reports as a separate entity. REQUESTS RECEIVED New requests for access to documents 6 Requests for correction/amendment of personal recordsNil Department of Treasury and Finance Total 6 REQUESTS RECEIVED OUTCOME OF REQUESTS New requests for access to documents 54 Granted in full Nil Requests from previous year finalised in 1995/96 1 Granted in part 3 Total 55 Denied 1 OUTCOME OF REQUESTS Transferred in full 1 Granted in full 9 Withdrawn Nil Granted in part 7 Pending at 30 June 1996 Nil Denied 10 No document in existence 1 Transferred in full 4 Total 6 Withdrawn Nil Access Fees Collected $100.00 Pending at 30 June 1996 14 No document in existence 11 REVIEW PROCESS Total 55 Internal Reviews Sought 1 Fees & charges collected $1,334.00 Granted in full Nil Granted in part 1 REVIEW PROCESS Denied Nil Internal Reviews Sought 6 Withdrawn Nil Granted in full Nil Not completed at 30 June 1996 Nil Granted in part 1 Administrative Appeals Tribunal Reviews Sought Nil Denied 5 Decided at preliminary conference Nil Withdrawn Nil Withdrawn prior to hearing Nil Charges reduced Nil Settled between parties Nil Charges not reduced Nil Awaiting hearing at 30 June 1996 Nil Not completed at 30 June 1996 Nil Administrative Appeals Tribunal Reviews Sought 8 AAT granted full access Nil AAT granted part access 2 AAT refused access Nil Decided at preliminary conference Nil Withdrawn prior to hearing 5 Settled between parties Nil Awaiting hearing at 30 June 1996 1 52 Department of Treasury and Finance Annual Report 1995/96
WORKFORCE DATA
Total Staff as at 30 June 1996
Total staff 509
Full time 500
Part time 9
Full time equivalent 506.1
Break Down by Gender
Male Female Total Staff
Full-time 319 181 500
Part-time 3 6 9 Total 322 187 509
Breakdown By Division Total EFT
Budget & Resource Management 126 124.2
Corporate Resource Agency 68 68.0
Economic & Financial Policy 67 67.0
Energy Projects 20 20.0
Executive Support Services* 71 69.9
Financial Management 58 58.0
Privatisations & Industry Reform 99 99.0 Total 509 506.1
* Staff numbers shown for Executive Support Services include staff in the offices of the Treasurer, the Minister and the Secretary, staff of the four Branches and redeployees of the Department.
Profile of Executive Officers as at 30 June 1996
Classification Male Variation from Female Variation from Total Variation from
previous year previous year previous year
EO-1 5 0 0 0 5 0
EO-2 13 0 3 1 16 1
EO-3 65 12 15 5 80 17_ Total 83 12 18 6 101 18 Department of Treasury and Finance
Annual Report 1995/96
Profile of VPS Staff as at 30 June 1996
Classification Full Time Part Time Male Female Total Male Female Total VPS-5 62 10 72 0 1 1 VPS-4 63 27 90 0 1 1 VPS-3 48 37 85 0 2 2 VPS-2 37 66 103 1 2 3 VPS-1 14 18 32 1 0 1 Total 224 158 382 2 6 8
Profile of Other Staff as at 30 June 1996 Male Female Total Total ïi 5 18
Statement on application of merit and equity principles The Department is committed to merit and equity principles. They are integral to the human resource management operations, particularly in the areas of recruitment and selection and the Department's grievance process.
Details of assessments and measures undertaken to improve occupational health of employees The Department, together with the Department of Premier and Cabinet and the Office of the Public Service Commissioner, is in the process of establishing a joint OHS Committee. This committee will address occupational health and safety issues as a consultative forum. In addition, the Department continued to implement the provisions of the Occupational Health and Safety Act. First Five Minutes Pty Ltd were engaged by the Department to implement fire and emergency procedures. Training of wardens was undertaken and a trial evacuation conducted. Eyesight testing of staff was conducted as required. Department of Treasury and Finance
Annual Report 1995/96
WorkCover State Revenue Office The Department has improved its record in management The State Revenue Office (SRO) provides its own of WorkCover claims. Seven WorkCover claims were administrative services and accordingly reports on lodged during the reporting period. workforce data as a separate entity. For further information about the SRO, please refer to that Office's A review of WorkCover files was conducted resulting in a Annual Report. reduction of outstanding claims. The Department continues to provide advice to staff on SRO Staff Profile as at 30 June 1996 WorkCover and Occupational Health and Safety issues as Classification Male Female Total required.
EO-2 1 - 1 Overview of impact/applicability of programs, services and strategies on/to a culturally and linguistically diverse EO-3 6 1 7 society VPS-5 15 9 24 The Department primarily has a policy focus and, as a VPS-4 66 25 91 central agency of government, provides very limited direct services to the community. VPS-3 108 66 174
Employee relations VPS-2 74 102 176 The Department suffered no effects from industrial action VPS-1 3 13 16 throughout the year. One officer participated in the SPSF's Total 273 216 489 24 Hour Stoppage on 22 March 1996.
Performance Management Note: 1. 438 long term employees As part of the Department's Performance Management 2. 51 temporary employees system, the following number and $ value of bonus 3. Figures do not include 24 long term employees who payments were made to non-executive staff: were on extended leave or secondment. Classification No. of Payments Total $ value of payments VPS-2 1 $1,000 VPS-3 7 $6,500 VPS-4 4 $7,000 VPS-5 3 $5,000
Graduate Recruitment Scheme The Department participated in the VPS Graduate Recruitment Scheme, run by the Office of the Public Service Commissioner. This plays an important part in the enhancement of skills to meet the Department's current and future resourcing requirements. Five 1995 Graduate Scheme members rejoined the Department in February 1996 and a further twelve graduates commenced their first placements at the same time. Department of Treasury and Finance
Annual Report 1995/96
CONSULTANTS ENGAGED
Consultancy Engagements - 1995/96 Consultancies over $50,000
Consultant Details Payments Future 1995/96 Commitment SMS Consulting Group P/L Analysis and design of a Budget Management System (part of FMS 1 Project) 169,075 11,925 SMS Consulting Group P/L Analysis and design of a Budget Management System (part of FMS 2 Project) 146,725 3,275 Clayton Utz Provide Legal Services - Latrobe Regional Hospital Project 284,009 25,991 Arthur Andersen Computer aided Mass Valuations Project - stagel 219,777 0 Swan Consultants P/L Model of the Gambling market in Victoria 52,500 0 Blake Dawson Waldron Legal Consultancy - Automated Ticketing Project 71,612 48,388 KPMG Provide Prudential Supervision- RFC & TCV 129,325 0 Price Waterhouse Urwick Business Process Review Project 246,120 0 Arthur Andersen Review Competiveness of State Taxation 79,300 700 Minter Ellison Tattersalls EGM licence 54,405 15,595 Price Waterhouse Urwick BRS Project- Re-engineering the SRO 899,721 418,279 Deloitte Touche Tohmatsu Outsourcing IT Project - SRO 146,606 0 KPMG Management Consulting* Accounting and Financial Advice on Corporatisation of V/Line Freight 0 136,000 LEK Partnership* Review of Bulk Sewerage Agreement 0 110,000 S & M King Policy Advice on Options for an Access Regime for Essential Facilities 73,400 0 KPMG Management Consulting Review of PAIRD Human Resource Capability (Stage 1) 70,000 0 KPMG Management Consulting Review of PAIRD Human Resource Capability (Stage 2) 70,000 0 The Allen Consulting Group Advice on Corporatisation of V/LINE Freight 70,000 0 Minter Ellison* Provision of Legal Advice on Corporatisation Legislation and National Competiton Policy 11,840 63,160
Total $2,794,415 $833,313
Note: Actual payments less than $50,000 have been included where the approved contract amount was in excess of the $50,000 threshold.
Consultancy Engagements under $50,000
90 Consultancies
Total Payments $1,072,791 56 Department of Treasury and Finance Annual Report 1995/96 A» iix S
BUILDING ACT COMPLIANCE
Standards for Publicly Owned Buildings VGAG has engaged three Operations Managers, whose duties include regular inspection of premises, preparing The Victorian Government Accommodation Group condition reports, identifying maintenance works required, (VGAG), Department of Treasury and Finance, provides making arrangements for minor maintenance works to be management of the Government owned office undertaken, ensuring that works are completed accommodation portfolio including compliance with satisfactorily, and reporting on issues. The Operations standards for publicly owned buildings. Managers consult with tenants, contractors, consultants Mechanisms to ensure that buildings conform with and service contract managers in this regard. Building standards Consultant reports have been obtained on several core All building works which require a building permit under buildings. In 1996/97, these reports will be extended to all the Building Act 1993 and are undertaken on behalf of core buildings and existing reports will be updated. These the VGAG are certified by a building surveyor as reports require inspection of all services and features of conforming with building regulations and the VGAG the buildings by expert building practitioners, advice on project managers are instructed accordingly. Tenants works required, the cost of these works and the feasibility, undertaking works within Government owned premises given the useful life of the building, of proceeding with are required to provide a building surveyor's certification these works. of conformity as part of the conditions of the owner's consent to the work. Number of buildings conforming with Building Standards All fifty buildings conform to the Building Standards. The VGAG has not sought to exempt works from application of the 10 year liability cap. New buildings and works to existing buildings conform with the Building Act 1993 and Regulations. Major works projects (>$50,000) Existing buildings are considered safe and fit to occupy. In There have been six major works completed this financial one building however this safety level may not extend to year and all have required either the issue of a Certificate some unoccupied areas. A compliance report on that of Occupancy or certification by a building surveyor and building is currently under consideration. the issue of a Final Certificate. Number of buildings which have been brought into Major works (>$50,000) not subject to certification of conformity plans, mandatory inspections of the works and issue of Occupancy Permits Three buildings have been brought into conformity with the Building Act 1993 and Regulations during the year as Nil part of the buildings' refurbishment program.
Mechanisms for inspection, reporting, scheduling and Year all buildings are expected to be brought into carrying out of rectification and maintenance works on conformity. existing buildings. All fifty existing buildings are considered safe and fit to The mechanisms established for inspection, reporting, occupy, with the possible exception of some unoccupied scheduling and carrying out of rectification and areas in one, and thereby conform to the Building maintenance works on existing buildings comprise three Standards. Buildings will be brought in conformity with parts: the Building Act 1993 and Regulations through • provision of and management of maintenance service progressive refurbishment and upgrade, where financially contracts for all owned buildings; and strategically viable and funds are available. • building inspections, liaison with tenants and Arrangements to ensure that only registered building responses to issues identified; and practitioners are engaged for public sector works. • commissioning formal condition, maintenance and VGAG engages building practitioners listed upon the compliance reports on buildings. register established by the Office of Building, Department of Infrastructure. The Office of Building, Department of Infrastructure, and Honeywell Ltd currently manage the service maintenance Number of cases and circumstances where registered contracts for the Government owned premises on behalf building practitioners became deregistered of VGAG. The responsibilities of this role include identification and scheduling of works required in Nil. consultation with VGAG, managing rectification works and conducting regular inspection to ensure that work is performed to the standard required. Quality assurance measures have been built into the contract with Honeywell. BOARDS AND COMMITTEES
Department of Treasury and Finance Audit Committee The Audit Committee's primary function is to assist the Secretary, the Treasurer, the Minister for Finance and the Minister for Gaming in fulfilling their responsibilities by reviewing the systems of internal controls which management has established, the audit process and the financial information which will be provided to Parliament and others. Members of the Committee are:
Mr Stephen Crawford Director, Operational Accounting (Chair) Mr Tom Martin Principal Consultant, Budget (Deputy Chair) Budget & Resource Management Ms Jenny Melican Director, Program Directorate Privatisation & Industry Reform Division Ms Elizabeth Eldridge Assistant Director, Risk Management Mr Ralph Booth Director, Government Financial Reporting Mr Terry Richards Senior Consultant, Ernst & Young Mr Kevin Sullivan Financial Management Division (Secretary)
Central Agencies Accredited Purchasing Unit The Departments of Treasury and Finance and Premier and Cabinet have established a joint Accredited Purchasing Unit (APU) in response to reforms introduced by the Victorian Government Purchasing Board (VGPB). The role of the APU is to coordinate and oversee purchasing practices and reform within the two Departments. Members of the APU are:
Mr Ralph Booth Director, Government Financial Reporting, DTF (Joint Chair) Mr Greg Hyams First Assistant Secretary, Office of State (Joint Chair) Administration, DPC Ms Kate Molloy Director, Executive Coordination, DTF Ms Meredith Sussex Head of Cabinet Office, DPC Mr Tim Jacobs Director, Arts Victoria, DPC Ms Margaret Bradshaw Assistant Director, Accounting Systems, DTF Mr Grant Caldwell Director, Corporate Resource Agency (CRA) Mr Mike Kelly Manager, Support Services, CRA (Executive Officer) Department of Treasury and Finance
Annual Report 1995/96
Treasury Liability Management Committee This committee oversees the budget sector treasury function. It approves and monitors compliance with treasury policy and risk limits, and recommends appropriate delegations of authority. The Committee operates under powers delegated by the Treasurer and the Secretary, and outsources the execution of most transactions to the Treasury Corporation of Victoria.
Members of the Committee are: Mr Ian Little Deputy Secretary, Economic & Financial Policy (Chair) Mr Ron Paice Deputy Secretary, Financial Management Mr Frank King Deputy Secretary, Budget & Resource Management Ms Helen Davison Director, Finance & Liability Management Mr Bernard Gastin Assistant Director, Finance & Liability Management
The Department of Treasury and Finance either sponsors • Powerlines Relocation Committee or has representation on the following committees: • Public Sector Accountant Committee of CPAs • Accrual Based Financial Management Forum • Public Sector Accounting Standards Board • Advisory Panel Consolidated Financial Reporting of • Shrine of Remembrance Trustees Government • State Owned Enterprises Employee Entitlements • All States Fringe Benefits Tax (FBT) Consultation Committee Forum • Victorian Government Oracle User Group • Bus Contracts Committee • Victorian Government Purchasing Board (Secretariat) • Council of Australian Governments (COAG) Gas Reform Task Force • Victorian Government Purchasing Development Committee • DTF/Auditor-General's Consultative Meeting • DTF Secretary's Advisory Panel on Accounting • Education - Steering Party Accrual Based Management Reporting • External Reporting Centre of Excellence CPA • Heads of Treasuries Accounting and Reporting Advisory Committee • Heads of Treasuries Fiscal Reporting Committee • Inter-Departmental Multicultural Services Advisory Committee (IMSAC) • Managed Insurance Fund Advisory Panel (to 30/9/96) • National Electricity Code Administration Company • National Electricity Market Management Company • National Grid Management Council • National Health Ministers' Benchmarking Working Group • National Supply Group • Office of Regulator-General Customer Consultative Committee Department of Treasury and Finance
Annual Report 1995/96
OVERSEAS VISITS
Dr. Michael Vertigan, Secretary to the Department, Energy Projects travelled overseas on two occasions on government financial missions. The first journey in November 1995 Dr Peter Troughton, Project Leader, Electricity, travelled to was to Singapore, Hong Kong, Taiwan and Japan; the the United States in September/October 1995 to heighten second, in January/February 1996, included the United the interest of American companies in the sale of Yallourn Kingdom, Switzerland, Germany and the USA. Energy, the first of the electricity generation companies to be privatised. Dr Troughton also travelled to New Zealand in March Budget and Resource Management 1996 to attend the Transpower New Zealand Conference Frank King, Deputy Secretary, Budget and Resource where he presented a paper entitled "Unlocking Management, visited Denver, Colorado, USA, to attend a Competition in the Victorian Electricity Supply Industry". conference on building government service delivery for Geoff Swier, Deputy Project Leader, Electricity, travelled to the 21st century. Particular emphasis was placed on the Argentina in November 1995 to participate in an use of technology in the delivery of government services. international seminar on Restructuring and Regulatory David Brooks and Steven Macintosh travelled to New issues connected with electricity reforms. Zealand in August 1995 to examine budget review issues. The two officers investigated and subsequently developed the role of a budget analyst particularly in relation to the Financial Management type of analysis required and the head office/subsidiary Chris O'Farrell visited New Zealand in September 1995 to role (ie. corporate management). study that country's capital user charging and asset David Brooks also travelled to New Zealand with Steve valuation policies. O'Reilly in September 1995 to examine the development, Nick Daicos also visited New Zealand in February 1996 to planning and implementation of a central budget and investigate whole of Government financial reporting financial management system. practices. Lance Bailey, Executive Director, Office of Purchasing and Procurement, took an overseas visit in January 1996 to investigate and research benchmarking information into a Privatisations and Industry Reform number of strategic business practices relating to John Perham, Deputy Secretary and Director of purchasing, including training and development, policy Privatisations, visited New Zealand in June 1996 to frameworks and electronic commerce. His visit included present the keynote address to the Utility Market Summit. meetings with 4 state governments in USA, 1 provincial government in Canada and 2 professional institutions. Peter Noble, Director, Project and Outsourcing Development visited the United Kingdom in November The visit resulted in formal sharing of information on 1995 to study development of the Private Finance Internet use, benchmarking, accreditation and certification Initiative, the UK government's policy to facilitate and of purchasing officers. develop private sector provision of infrastructure and Lance Bailey also travelled to Hong Kong in June 1996 to other services. develop an Asia Pacific version of the "Certified Peter's trip included his address to the 8th Plenary Purchasing Programs" examination and advise on research Meeting of the Organisation for Economic Cooperation presentation for the "Certificate of Advanced Purchasing and Development's (OECD) Advisory Group on Studies (CAPS)" for the Victorian Government Purchasing Privatisation in Paris in October. Board (VGPB). 60 Department of Treasury and Finance Annual Report 1995/96 Appendix a
PUBLICATIONS
Accounting and Reporting Bulletins (approx 8) Reforming Victoria's Water Industry - Regional Structure Accrual Accounting Manual for Non-Metropolitan Urban Water Authorities (Joint Publication) Annual Autumn Economic Statement May 1995, 40pp Annual State Budget Papers Asset Management Principles Gas BenchMark The Gas Industry in Victoria - A Competitive Future Department of Treasury and Finance Annual Report Information Paper No. 1 Employee Relations Update September 1994, 22pp Financial Management Act Directions FINET Ports Fleet News Reforming Victoria's Ports - A Competitive Future January 1995, 22pp Integrated Management Cycle (IMC) Cuide and Wall Chart Reforming Victoria's Ports - Update December 1995, 4pp Monthly Statement of Budget Sector Transactions (Niemeyer Statements) Outsourcing and Contract Management Guidelines Purchasing Recognition and Valuation of Non-Current Physical Supply Policies and Guidelines Manual Assets Industry Input into Government Purchasing Reforms Trial Consolidated Financial Report 1994/95 VGPB Annual Report Victorian Economic Review (Joint Publication with TCV)
Other Electricity Community Service Obligations - Policy Statement and The Electricity Supply Industry in Victoria - A Competitive Background to Policy Future (Summary) August 1994, 14pp October 1993, 12pp The Tax Equivalent System The Electricity Supply Industry in Victoria - A Competitive October 1994, 2pp Future Dividend Policy - Improving the Accountability of GBEs October 1993, 80pp November 1995, 2pp Reforming the ESI - A Brighter Future for all Victorians Making Government business work better - What it November 1995, 30pp means to you Reforming Victoria's Electricity Industry Stage Two - A May 1995, 2pp Competitive Future User pays - A fairer system of water charging February 1994,12pp May 1995, 2pp Reforming Victoria's Electricity Industry - A Summary of Grain Elevators Board sold to Victorian farmers Reforms June 1995, 2pp December 1994,110pp Corporatised Government Business Enterprises - An Competitive Structure and Customer Choice Overview of the Government-Board Relationship Reduced Bills and Improved Services November 1995, 20pp Special Benefits for Concession Card Holders Government Business Enterprises Reform in Victoria - A Guide to the First Three Years October 1992 - September 1995 Water December 1995, 50pp Reforming Victoria's Water Industry - A Competitive State Trustees - Victoria's first State Owned Company Future Revised Edition January 1996, 2pp October 1993, 30pp Reforming Victoria's Water Industry - A Plan for Reform of Non-Metropolitan Urban Water Authorities (Joint Publication) March 1994,12pp Reforming Victoria's Water Industry - The Restructured Metropolitan Industry January 1995, 36pp Department of Treasury and Finance 61 Annual Report 1995/96
Mì'Otìb ! ' í'2
PROMOTIONAL ACTIVITIES AND PRESENTATIONS MADE BY THE DEPARTMENT
Delegations Information Sessions and Promotional Activities Presentations on a range of budget issues were made to representatives of the Thai and Croatian Treasuries. Financial Management Division Open Days - November The quinquennial workplace discussions with the 1995 and May 1996. Commonwealth Grants Commission were held in May 'Outsourcing and Contract Management Guidelines' 1996. Workshops
A delegation from the Vietnamese Government in March Outsourcing Special Interest Forums 1996 focussed on the budget process and on integrated Financial Management systems being implemented in the VGPB Policy Awareness Seminars Victorian Public Service. 'Victoria on Display' and 'Victoria on Show' participation Meetings were hosted for international delegations from the Planning Committee of Hunan Province, People's Republic of China, the South African Financial and Fiscal Commission and the Ministry of Finance, People's Republic of China.
Presentations
Title Audience Officer Date
"SOE Reform and Corporate Governance" Australian Society of CPAs Congress 1995 John Perham October 1995
"The Victorian Experience: Industry RIPAA Conference on Corporatisation and John Perham March 1996 Reform, Privatisation and Hilmer" Privatisation
"Privatisations in Australia: What are the Australian Institute of Company Directors John Perham May 1996 lessons from New Zealand?"
"What is happening in Australia? Will the New Zealand Utility Market Summit 1996 John Perham June 1996 restructuring influence or be influenced by (Keynote Address) the Australian market?"
"Private Sector Investment in OECD Advisory Group on Privatisation - 8th Peter Noble October 1995 Infrastructure Projects: the Case of Meeting Victoria"
"Transition Rearrangements - How to set AIC Conference, Melbourne - How to Contract Geoff Swier 8 August 1995 most of the Vesting Contracts" in the New National and Victorian Electricity Markets
"Vesting Contracts in Victoria" 6th Annual National Power Industry Conference Geoff Swier & 8 August 1995 - Melbourne Pierre Theron
"The Changing Face of the Victorian 6th Annual National Power Industry Conference - Peter Troughton 9-10 August Power Industry, The Future Challenges" Melbourne & Geoff Swier 1995
"Victoria's Role in Gas Reform" Gas Industry Reform Conference, Sydney Geoff Frankish 18 August 1995
"Victorian Electricity Industry Reforms, KPMG Industry Focus - Sydney Peter Troughton 12 September Corporatisation and Privatisation" 1995
"Electricity Reform in Victoria" Victorian Resources Conference - Melbourne Peter Troughton 8 November 1995
"The Progress of the Electricity Supply CEDA Luncheon - Melbourne Peter 24 November Industry Reform Program" Troughton 1995 Department of Treasury and Finance
Annual Report 1995/96
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Presentations -continued
Title Audience Officer Date "Reforming the Electricity Supply Industry, AIC Conference - Melbourne Peter Troughton 29 November Benefits for the Public 1995 "Vesting contracts in Victoria" AIC Conference - Melbourne Geoff Swier 30 November 1995 "Pricing Water for Power: A Two-Tier Australian Agricultural and Resource Economics Stephen B February 1996 Approach" Society, 40th Annual Conference - Melbourne Labson "Communicating Reform and Privatisation Public Affairs in Minerals and Energy Conference Keith Smiley May 1996 in Victoria" - Sydney "Reforming Victoria's Electricity Industry" Management Strategies in a Competitive Energy Sally Farrier 11-12 March Industry Conference - Sydney 1996 "Unlocking Competition in the Victorian Transpower New Zealand Conference - New Peter Troughton 13 March 1996 ESI" Zealand "Implementing Access, State Government The Australian Gas Association's Gas Industry Geoff Frankish 15 April 1996 Role - Victorian Government Priorities" Forum 1996, Gas Access '96 - Melbourne "Buying Gas in a Deregulated Market" The Australian Gas Association's Co-generation Geoff Frankish 9 May 1996 Seminar, Co-generation: The Challenge of New Energy Markets - Melbourne
"The Victorian Government's Strategic The Institute of Public Administration Australia, Lance Bailey 5 June 1996 Purchasing Reforms" Victorian Division "Policy Advice and Discretionary The Institute of Public Administration Australia, Bruce 28 June 1996 Client Services" ACT Division, "Competitive Tendering and Williamson Contracting Out" Seminar, Canberra
"COAG: Impact on the Water Industry - Victorian Water Industry Association - 1996 Neil Taylor 29 March 1996 The State Government Perspective" Annual Conference
"Privatisation Review" Graduate Management Association Alumni Deborah 19 April 1996 Association Luncheon Radford "Privatisation of the Grain Elevators Board" La Trobe University Deborah 14 May 1996 Radford "CSO Policy in Victoria" BIE Infrastructure Pricing Forum, Canberra David Briggs August 1995
"Implications for the States - Victoria" AIC "Competition and Reform in Utilities 1995" David Briggs September 1995 Conference, Sydney " Intergovernment Financial Relations in South African Financial and Fiscal Commission Phyllis Rosendale 12 October 1995 Australia" and Bruce Parr "Intergovernment Financial Relations in Planning Committee of Hunan Province, People's Phyllis 5 October 1995 Australia" Republic of China Rosendale
"Relationship between Federal, State and Ministry of Finance, People's Republic of China Ian Little and 3 April 1996 Local Government in Australia" Phyllis Rosendale "Composition of State Revenue" Visiting Japanese Professors Anna Hool 26 March 1996 "Victorian Public Enterprise Reforms" Visiting Japanese Professors Jim Ferguson 26 March 1996 "Tax Policy Reforms" Victorian GBE Tax Managers Forum Jim Ferguson 12 Sept 1995 "Tax Equivalent System: Audit Guidelines GBE Tax Managers Mike Halstead- 10 October 1995 and Audit Program" Lyons "Test of the Expectations Theory for Long Economic Society of Australia - Annual Richard Whitelaw September 1995 Term Bonds" Conference (Adelaide) "Victoria's Economic Performance: Policy IPAA Leadership Forum Mike Vertigan 4 July 1995 Framework and some next steps" "The New Management Accountability" Launch of CPA Week Mike Vertigan 12 July 1995 "Perspectives on Accounting Research" Accounting Association of Australia and New Zealand Mike Vertigan 12 July 1995 "Making the Victorian Economy More Australian Society of Corporate Treasurers Mike Vertigan 1 August 1995 Competitive" "A Framework for Reform" Tasmanian Government Financial Management Mike Vertigan 11 Sept 1995 Conference "Reforming Government Operations" Western Australian Premier's Workshop Mike Vertigan 17 May 1996 Department of Treasury and Finance
Annual Report 1995/96
FUNCTIONS AND SERVICES OF THE DEPARTMENT
The Budget and Resource Management Division: The Privatisations and Industry Reform Division: • develops the State's annual Budget and short-term • provides strategic advice on industry and Government forward estimate strategy; Business Enterprise (GBE) reform options; • monitors and analyses Budget outcomes and provides • implements the Government's non-energy industry advice on outlays policy to all Government agencies; reform and privatisation policy; • coordinates and promotes best practice employee • implements a performance monitoring regime for relations outcomes in the public sector; and GBEs; • provides information, services and advice relating to • facilitates private sector involvement in infrastructure central purchasing policies and supply management, and service provision; and vehicle fleet management, and the Government's accommodation portfolio. • manages the Government's property portfolio and asset sales program. The Economic and Financial Policy Division: The Energy Projects Division: • provides advice to the Government on taxation policy • formulates energy policy advice and pursues the and longer term economic development and financial Government's reform of the electricity, gas and strategy objectives; aluminium industries; • monitors and forecasts revenue flows, interest and • implements reforms to increase efficiency and superannuation expenses, and trends in state and competition within those industries; and national economies; • manages any privatisation transactions, including the • manages State / Commonwealth government Government's aluminium interests. financial relationships; and • develops and implements debt, superannuation and The Executive Support Services Branches provide services risk management strategies. in the areas of: • executive coordination (ie. business planning, cabinet The Financial Management Division: and parliamentary matters, legislative advice, • establishes accounting, financial, risk and asset ministerial & executive correspondence), management standards; • legal matters, • provides timely and accurate information on the • human resource strategies, and State's financial operations; • resources planning (ie. Departmental budget and • provides financial management operational and resource allocation). systems advice and quality assurance; • provides leadership in the provision of financial The Corporate Resource Agency has overall responsibility systems to the budget sector; for the provision of corporate services, including: • promotes management reform in the public sector; • accounting services; • monitors and advises on the Department's business • information services (ie. IT consulting support, systems requirements; telecommunications, management of the Information Technology contracts and IT Services Centre, the Joint • manages the Government's daily cash position; Departmental Information Centre, and records and management); • administers the Unclaimed Moneys Act 1962. • human resources services via the management of the outsourced HR function; and • support services (ie. office equipment, purchasing, accommodation issues, security, travel bookings, etc.) Department of Treasury and Finance
Annual Report 1995/96 :,X hi
MACHINERY OF GOVERNMENT CHANGES
After the State Election on 30 March 1996, the Government announced significant machinery of Government changes. These are the changes that directly affected the Department of Treasury and Finance:
Additional functions The following functions were moved to the Department of Treasury and Finance. • Energy Policy from the Department of Agriculture, Energy and Minerals • Public Sector Employee Relations from the Department of Business and Employment • ColNVEST from the Department of Business and Employment • the Victorian Casino and Gaming Authority from the Department of Arts, Sport and Tourism • the Office of the Chief Electrical Inspector from the Department of Agriculture, Energy and Minerals
Functions moved from the Department Several functions were transferred to other State agencies. The Offices of the Valuer-General, Surveyor-General and Geographic Data Coordination, and the 'Valuer' Project have moved to the Department of Natural Resources and the Environment. The Office of Local Government has moved to the Department of Infrastructure. DEPARTMENT OF TREASURY AND FINANCE
Accounting Services Business Enterprises Document Management CBE Reform Human Resource Services Ports Reform Unit Information Technology Program Directorate Joint Departmental Information Centre Project and Outsourcing Development Support Services Reform Policy Executive Coordination Transport Reform Unit Human Resource Strategy Victorian Government Property Group Resources Planning Water Reform Solicitor to Treasury and Finance Accounting Policy Budget Analysis Business Systems Public Sector Employee Relations Government Financial Reporting Office of Purchasing and Procurement Management Improvement Victorian Government Accommodation Operational Accounting Croup Energy Policy Management Unit Economic Policy and Financial Strategy Project Management - Finance and Liability Management Market Issues Intergpvernment Financial Relations Privatisation Risk and Insurance Management Reform and Restructing Taxation and Revenue Policy Department of Treasury and Finance
1 Treasury Place Melbourne 3002
Victoria y ON THE MO VE